How retailers lose millions in misplaced inventory — and how OFS is changing the game
Every year, retailers around the world lose billions of dollars to one silent, frustrating problem: misplaced inventory. Not stolen merchandise, not vendor errors, just simple, everyday misplacement. Products that exist in the building, but no one can find. Join us as we uncover the hidden costs and reveal how OverStockFileSystem.com is revolutionizing inventory management for a more profitable and sustainable future.
The hidden cost of ‘it should be here somewhere’
Misplaced overstock and poor tracking systems contribute to a staggering $369 billion global problem for retailers annually. It sounds harmless, but the effects are enormous, impacting not just finances but also customer satisfaction, employee productivity, and long-term brand reputation. Root causes include overstock placed in the wrong location, no reliable system for tracking extra inventory, special orders buried or forgotten, and clearance items hidden. A single misplaced product may seem minor, but multiplied across thousands of SKUs and dozens of employees, the financial damage grows fast.
The customer experience problem nobody talks about
Misplaced inventory doesn’t just cost money — it costs customers. One lost will-call order, one contractor who drove across town for something “in stock” that couldn’t be found, one long-term customer who walks out for the last time. Losing just 200 customers due to missing or mishandled inventory can cost a retailer nearly $1 million annually. Retail customers, especially contractors and high-value buyers, don’t give second chances when inventory goes missing, leading to lost sales and damaged reputation.
Employee accountability matters — especially for clearance
Clearance is one of the biggest shrink areas in retail. Up to 35% of employee theft occurs with clearance items, often because workers can hide product until the price drops, then have a friend or relative buy it at the lowest price. OverStockFileSystem.com (OFS) stops this behavior by tracking every clearance item, its exact location, and every employee who handles it. This level of visibility protects both profit and integrity, transforming inventory chaos into operational clarity.
OFS is designed to integrate with any existing inventory system, track overstock, clearance, will-call, and special orders, provide real-time location accuracy, improve fulfillment speed, strengthen asset protection investigations, and ultimately reduce shrink and eliminate misplaced merchandise. It increases revenue recovery, often by millions per year, and helps retailers protect revenue and the planet through better inventory accuracy, reducing waste and carbon footprint.