Stock rotation
Stock rotation is the discipline of prioritising the sale of older-acquired inventory before newer stock to minimise depreciation losses, particularly important in recommerce where device values decline non-linearly.
Poor stock rotation in recommerce leads to inventory that was acquired at a higher market price becoming stranded at a lower current market price, eroding the margin originally projected at intake. First-in-first-out inventory management, combined with dynamic repricing that accelerates price reductions on aging stock, is the standard approach to managing rotation in high-depreciation categories. Monitoring market price movements relative to intake cost on a per-unit basis enables targeted markdown decisions rather than blanket discounting.