Glossary
Overstock
Overstock is more of an item than you will sell in a reasonable time, so it ties up your cash and takes up space.
What it means for a shop owner
It usually happens when you buy with a big discount or after a weak season. The problem is not only the quantity but the cash frozen in it and the risk of it expiring. Know how fast each item sells before you order.
A worked example
You sell 20 pieces a month and hold 240. That is a full year of stock, so 12 months of cash is locked up.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes