--- title: "Slow Moving Inventory: What It Is and 5 Ways to Reduce It" description: Slow moving inventory ties up cash and space. Learn how to spot it early and five ways retailers reduce it, from omnichannel selling to order routing. image: https://www.hotwax.co/hubfs/strategies-combat-slow-moving-inventory-hourglass.png --- [![HotWax Commerce](https://www.hotwax.co/hs-fs/hubfs/hotwax-logo.png?width=200&height=63&name=hotwax-logo.png)](https://www.hotwax.co/) [![HotWax Commerce](https://www.hotwax.co/hs-fs/hubfs/Common%20assets/Logos/HotWax/HWCLogoDarkMode.png?width=200&height=63&name=HWCLogoDarkMode.png)](https://www.hotwax.co/) ☰ - Product - Bundles - [Order Management System](https://www.hotwax.co/product/omnichannel-order-management-system/) - [Store Inventory Management](https://www.hotwax.co/solution/store-inventory-management) - [Omnichannel Suite](https://www.hotwax.co/product/omnichannel-order-management-system-for-shopify/) - Intelligence - [MCP Server](https://www.hotwax.co/product/technology/mcp-server) - [AI Powered Order Routing](https://www.hotwax.co/product/technology/ai-powered-order-routing) - 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- - [mailto:?subject=Check%20out%20https://www.hotwax.co/blog/strategies-to-combat-slow-moving-inventory&body=Check%20out%20https://www.hotwax.co/blog/strategies-to-combat-slow-moving-inventory&media=https://6357099.fs1.hubspotusercontent-na1.net/hubfs/6357099/strategies-combat-slow-moving-inventory-hourglass.png](mailto:?subject=Check%20out%20https://www.hotwax.co/blog/strategies-to-combat-slow-moving-inventory&body=Check%20out%20https://www.hotwax.co/blog/strategies-to-combat-slow-moving-inventory&media=https://6357099.fs1.hubspotusercontent-na1.net/hubfs/6357099/strategies-combat-slow-moving-inventory-hourglass.png) - - Slow moving inventory is stock that sells much more slowly than planned, so it sits on shelves and in stockrooms while tying up cash, space, and full-price selling time. It usually comes from demand forecasts that missed, seasonal shifts, or products stocked in the wrong locations. Price cuts and promotions can clear it, but they treat the symptom. Much slow stock is a placement and visibility problem: the product sells somewhere, just not where it sits. This guide covers what slow moving inventory costs, how to spot it early, and five ways omnichannel retailers reduce it without defaulting to markdowns.   ## What is slow moving inventory, and why does it matter? Slow moving inventory is any item selling below its expected rate for a sustained period. Every week it sits, it ties up capital that could fund faster-selling products, takes space from items customers want, and moves closer to an end-of-season markdown. Left long enough, it becomes obsolete stock that has to be written off. Retailers usually spot it by tracking sell-through rate and weeks of supply by product and location. An item with plenty of weeks of supply in one store and strong sell-through in another is not a demand problem. It is an allocation problem, and that is the kind an order management system can fix.   ## Five ways to reduce slow moving inventory ### 1. Sell store inventory through every channel Slow stock in a store only reaches the shoppers who walk in. Once the same units are visible online, every online customer becomes a potential buyer. That starts with [unified inventory visibility](https://www.hotwax.co/blog/what-is-omnichannel-order-management-and-why-does-it-exist), so eCommerce can see and sell what each store holds. [Same-day buy online, pick up in store (BOPIS)](https://www.hotwax.co/solution/buy-online-pick-up-in-store-bopis-software/) lets customers collect orders from the store that holds the stock, free of shipping charges, and retailers can choose to offer it on the products that move slowly. Showing pickup availability on the product detail page helps shoppers choose a convenient store. Ship from store turns the same shelves into fulfillment locations for online orders, and endless aisle lets a store sell items it does not carry by shipping them from where they sit. ### 2. Route online orders to the stores holding slow stock Routing decides which location's inventory sells at full price and which ages into a markdown. If every online order goes to the warehouse or the nearest store, slow stock in other stores keeps sitting. With [configurable order routing](https://www.hotwax.co/solution/configurable-order-routing), retailers can rank eligible locations by weeks of supply, so orders go first to the stores holding more stock than they can sell. A facility group of underperforming stores can get priority for the products at risk, while proximity breaks ties to keep shipping costs in check. The trade-off between speed and clearing aging stock is covered in more depth in [when to route orders by sales velocity vs weeks of supply](https://www.hotwax.co/blog/when-to-route-orders-by-sales-velocity-vs-weeks-of-supply). ### 3. Move stock to where it sells Customer preferences vary by region, so a product can sit in one store while selling out in another. Ship to store and [inventory transfers](https://www.hotwax.co/inventory-transfers) move units from locations with low sell-through to locations with high sell-through, so the stock sells at full price instead of waiting for a markdown. ### 4. Use pre-orders to buy closer to demand Slow stock often starts with a forecast. [Pre-orders](https://www.hotwax.co/solution/pre-orders/) let retailers soft launch a product and measure interest before committing to large quantities, so they buy closer to real demand. They also widen the sales window: customers order before the product arrives, which reduces the risk of unsold units at the end of the season. Where pre-order demand concentrates by region, retailers can send more of the incoming stock to those stores and less to the rest. ### 5. Track the reports that flag slow stock early Shopify's standard reports are a starting point, but spotting slow stock across stores takes [more granular demand and sales reports](https://www.hotwax.co/blog/5-essential-shopify-sales-performance-reports). Sales by region show which areas underperform, so retailers can target promotions or rebalance stock. The [Monthly Sales by Order report](https://www.hotwax.co/bi-reports/monthly-sales-by-order-report) highlights items that may need bundling, promotion, or discontinuing. The [Daily Demand Tracking report](https://www.hotwax.co/bi-reports/daily-demand-tracking-report) compares demand with fulfillment to catch overstocking early, and the [Annual Demand Performance report](https://www.hotwax.co/bi-reports/annual-demand-performance-report) shows declining demand year over year before it turns into excess stock.   ## Reduce slow moving inventory with HotWax Commerce HotWax Commerce is an omnichannel order management system that puts several of these levers in one place. It unifies inventory across stores and warehouses so every channel can sell store stock, and its configurable routing can rank locations by weeks of supply. BOPIS, ship from store, and transfers move stock to where it sells, while [pre-orders](https://www.hotwax.co/solution/pre-orders/) and [business intelligence reports](https://www.hotwax.co/business-intelligence-bi-reports) help retailers buy and allocate closer to real demand.   ## Frequently asked questions about slow moving inventory - ### [What is slow moving inventory?](https://www.hotwax.co/blog/strategies-to-combat-slow-moving-inventory#content-1) Slow moving inventory is stock that sells well below its expected rate for a sustained period. It ties up cash and space, and the longer it sits, the more likely it is to be marked down or written off. - ### [How do you identify slow moving inventory?](https://www.hotwax.co/blog/strategies-to-combat-slow-moving-inventory#content-2) Track sell-through rate and weeks of supply by product and location. Items with high weeks of supply and low sell-through in one location, especially when the same item sells faster elsewhere, are the first to act on. - ### [What is the difference between slow moving inventory and dead stock?](https://www.hotwax.co/blog/strategies-to-combat-slow-moving-inventory#content-3) Slow moving inventory still sells, just too slowly. Dead stock has stopped selling altogether and is usually liquidated or written off. Acting on slow stock early keeps it from becoming dead stock. - ### [How does order routing help reduce slow moving inventory?](https://www.hotwax.co/blog/strategies-to-combat-slow-moving-inventory#content-4) Routing decides which location fulfills each online order. Ranking eligible locations by weeks of supply sends orders to the stores holding more stock than they can sell, so slow stock sells at full price before it needs a markdown.   \*     \*     \* [Talk to our team](https://www.hotwax.co/connect) to see how HotWax Commerce can help your stores sell slow stock at full price before it turns into a markdown. ## Related Blogs ### [![Store employee counting packaged stock, the physical QOH behind an inventory number shown online](https://www.hotwax.co/hs-fs/hubfs/blogs/why-your-inventory-number-needs-an-explanation-not-just-accuracy/Why%20Your%20Inventory%20Number%20Needs%20an%20Explanation%2c%20Not%20Just%20Accuracy%20banner%20img.png?width=960&height=498&name=Why%20Your%20Inventory%20Number%20Needs%20an%20Explanation%2c%20Not%20Just%20Accuracy%20banner%20img.png) Inventory Management Why Your Inventory Number Needs an Explanation, Not Just Accuracy](https://www.hotwax.co/blog/why-your-inventory-number-needs-an-explanation-not-just-accuracy) ### [![Empty store display shelves, the result when real-time inventory publishes stock that is not sellable](https://www.hotwax.co/hs-fs/hubfs/blogs/real-time-inventory-is-not-the-same-as-trustworthy-inventory/Real-Time%20Inventory%20Is%20Not%20the%20Same%20as%20Trustworthy%20Inventory.png?width=960&height=498&name=Real-Time%20Inventory%20Is%20Not%20the%20Same%20as%20Trustworthy%20Inventory.png) Inventory Management Real-Time Inventory Management: Why Sync Won't Stop Overselling](https://www.hotwax.co/blog/real-time-inventory-is-not-the-same-as-trustworthy-inventory) ### [![Road signs pointing to 'Sales Velocity' and 'Weeks of Supply,' illustrating retail order routing strategies for inventory management and store fulfillment optimization.](https://www.hotwax.co/hs-fs/hubfs/blogs/when-to-route-orders-by-sales-velocity-vs-weeks-of-supply/Sales%20velocity%20vs%20Weeks%20of%20supply%20banner.png?width=960&height=498&name=Sales%20velocity%20vs%20Weeks%20of%20supply%20banner.png) Inventory Management When to Route Orders by Sales Velocity vs Weeks of Supply](https://www.hotwax.co/blog/when-to-route-orders-by-sales-velocity-vs-weeks-of-supply) ### [![Empty store shelves, showing inventory on the shelf vs inventory that is actually for sale](https://www.hotwax.co/hs-fs/hubfs/blogs/inventory-on-the-shelf-vs-inventory-for-sale/inventory-on-shelf-vs-for-sale.png?width=960&height=498&name=inventory-on-shelf-vs-for-sale.png) Inventory Management Inventory on the Shelf vs Inventory for Sale: Why Stores Need Protection Rules](https://www.hotwax.co/blog/inventory-on-the-shelf-vs-inventory-for-sale-why-stores-need-protection-rules) ### [![Store associate scanning a barcode on a shipment box during inventory receiving](https://www.hotwax.co/hs-fs/hubfs/blogs/receiving-is-where-inventory-accuracy-is-decided/Receiving%20Is%20Where%20Inventory%20Accuracy%20Is%20Decided.png?width=960&height=498&name=Receiving%20Is%20Where%20Inventory%20Accuracy%20Is%20Decided.png) Inventory Management Inventory Receiving: Where Store Inventory Accuracy Is Decided](https://www.hotwax.co/blog/receiving-is-where-inventory-accuracy-is-decided) ### [![A hand stopping a row of dominoes from falling, illustrating the prevention of inventory errors.](https://www.hotwax.co/hs-fs/hubfs/blogs/a-people-first-approach-to-fixing-store-inventory-management/a-people-first-approach-to-fix-store-inventory-management.webp?width=960&height=498&name=a-people-first-approach-to-fix-store-inventory-management.webp) Inventory Management A People-First Approach to Fixing Store Inventory Management](https://www.hotwax.co/blog/a-people-first-approach-to-fixing-store-inventory-management) ### [![Associate scanning a box with a barcode scanner during an inventory cycle count in a stockroom](https://www.hotwax.co/hs-fs/hubfs/blogs/inventory-cycle-counts-guide/The%20Guide%20to%20Inventory%20Cycle%20Counts.png?width=960&height=498&name=The%20Guide%20to%20Inventory%20Cycle%20Counts.png) Inventory Management Cycle Counting: The Retail Guide to Inventory Cycle Counts](https://www.hotwax.co/blog/inventory-cycle-counts-guide) ### [![Product page features for inventory optimization: real-time availability, pickup, delivery dates, backorders](https://www.hotwax.co/hs-fs/hubfs/blogs/7-inventory-optimization-strategies-to-sell-more-without-stocking-more/product-detail-page-drive-conversions.png?width=960&height=717&name=product-detail-page-drive-conversions.png) Inventory Management 7 Inventory Optimization Strategies to Sell More Without Stocking More](https://www.hotwax.co/blog/7-inventory-optimization-strategies-to-sell-more-without-stocking-more) [![HotWax Commerce](https://www.hotwax.co/hubfs/Hotwax-2021/HotWax_February2020/Images%20Icons,%20Apparel%20background,%20Hexagon/logo-hotwax-dark.svg)](https://www.hotwax.co/) ### Connect ### Headquarters 175 S Main St Suite 1310, Salt Lake City, UT 84111 - 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