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by xibalba 1826 days ago
Yes.

There may be a portion of these items that is excess or obsolete and cannot be otherwise disposed of.

There are accounting rules (which are both reasonable and justified) which force companies to write down this kind of inventory (i.e. it hits the P&L). Additionally, there are real costs associated with keeping these items in the warehouse which justify their disposal.

I once worked on an E&O project at a large public company, and finding reasonable ways to dispose of this type of inventory was very difficult. Most ended up in the trash.

In any event, the reporting on this subject is, once again, pretty inadequate and reads as borderline advocacy in the media's opposition to all things Amazon.

1 comments

Garments are sold at astronomical markups in the West.

So they are considered perishable almost like food if not sold in season.

The new wave of brands embracing this make near no money on liquidation sales, so they don't even try.