What is an “Oversell?”

One of the common problems in running an e-commerce store is the oversell. It happens when a customer buys something which is not in stock. All web stores and marketplaces track inventory but it is only as good as the data that the merchant provides. If a web store believes that there are 1000 Purple Plastic Cupcakes in stock but the merchant sold the last one an hour ago, any further sales will be oversells. The store will continue to oversell and promise customers prompt delivery even though this is clearly not possible.

The consequence is a lost sale. The merchant tells the client that the item can not be delivered as was originally promised. The customer goes elsewhere to buy his fake pastries. Perhaps they get frustrated with the experience and continue to buy goods from a competitor.

Sometimes this isn’t the only penalty. Some drop-shippers will penalize the merchant’s account when an oversell occurs. Most marketplaces also track this kind of problem and will score it against the merchant’s record. It works against the merchant’s long term reputation.

A simple solution to this problem is to ensure proper synchronization between the merchant’s store and the supplier. For a simple store with a few products this isn’t really necessary. But for larger stores where there are hundreds of products and frequent changes to stock, it is critical.

Our system processes thousands of products per day from a wide variety of suppliers. This ensures that our clients have fresh inventory numbers and avoid the dreaded oversell.

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