What Is Surplus Inventory?  

» Posted by on Dec 6, 2018 in Surplus Inventory | 0 comments

Well, surplus inventory is well a term used to describe a situation when there is more items in your inventory that what was actually needed and you could use this in a sentence like “There was a surplus electric motors last week” and surplus inventory can really affect your profits and will lead you to have unsellable items locked in your inventory and you will have lost money that could have been used for items that you could have sold. 

Surplus Inventory

If you call yourself a merchant or an entrepreneur that’s looking for good investment a surplus of inventory, leftover stock, or in other words, deadstock on your balance sheet can and will be a big problem for you and well future investors. 

More supply than demand could make you; the retailer seems like your overstocking and well, it indicates a big amount of profit downfall and that a high rate suggests that your keeping more inventory in stock. 


By now, after being educated about all of the downfalls of having excessive stocks and its disadvantages especially when it comes to keeping extra and worthless products. You should also know how to get rid of the extra products you have in your inventory. So, here is a way you can get rid of those extra products you keep in your stock 

  1. Make a profit analysis for all of your products as a part of your periodic merchandising study or in your monthly. If it’s possible your weekly inventory reports. This way you can keep a good eye on your product sales. And develop candidates for liquidation or well, in other words, the slow sellers. 

Also, a common question is being asked and that question is whether it is illegal to sell branded surplus garments. 

Well to answer that question depending on what state and if it has a law for it, yes it can and is certainly is illegal and thus it is punishable by law. In India, there is a criminal law IPC 1860-Section 489 Selling goods marked with a counterfeit property mark state that:  

“whoever exposes, sells or has in possession for sale any goods or things with a counterfeit property mark affixed to or impressed upon the same to or upon any case, package or other receptacle in which such goods are contained, shall, unless he proves- 

(a) That, having taken all reasonable precautions against committing an offence against this section, he had at the time of the commission of the alleged offense no reason to suspect the genuineness of the mark, and 

(b) That, on demand made by or on behalf of the prosecutor, he gave all the information in his power with respect to the persons from whom he obtained such goods or things, or 

(c) That otherwise he had acted innocently 

be punished with imprisonment of either description for a term which may extend to one year, or with fine, or with both. 

So, since you did not pay for the ownership of the said mark or brand, yes selling surplus branded items is illegal it can and will get you fined or even imprisoned depending on your area law.  



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