Inventory Aging
Definition
A report that groups your inventory by how long it has been on hand, such as 0–90, 91–180 and 180+ days, so you can spot slow-moving stock.
Want a deeper explanation?
Inventory aging is where cash problems show up first. Stock that has not moved in six months is unlikely to sell at full price, and on Amazon it starts costing extra fees.
Review it monthly and decide on each old line: promote, bundle, liquidate or write down. Watch for: old inventory still valued at full cost on the balance sheet, which overstates both assets and profit.
Example
The aging report shows $60,000 of inventory older than 180 days, mostly in two discontinued colorways, which is costing storage and may need a markdown.