Of all the challenges an online business faces, overstock and understock are some of the most challenging – and the most detrimental to their reputations. If you want to keep customers satisfied and enjoy a healthy profit, you need to get a handle on your inventory. Below are some of the ways in which overstock and understock can really hurt your business. 

The Problems with Understock

“Understock” is a relatively common inventory problem that occurs when the products you have in your warehouse are not enough to meet consumer demand. If a customer visits your website for a product and is met with a big red “Out of Stock,” he or she is far more likely to find that product (or a similar one) from a competitor than to wait until you have restocked. This causes a lot of problems for your business, including:

The Problems with Overstock

Overstock is a significant problem, as well. This can be defined as having too much of an unwanted product sitting on warehouse shelves. Though this does not directly affect your customers, it may affect them indirectly at some point – especially if your overstock prevents you from keeping up with latest trends and stocking the hottest items. Other problems include:

As you can see, overstock and understock are incredibly problematic, so it’s important to avoid them at all costs. It may be worth your while to consider outsourcing your inventory management to a trusted partner who can help you avoid these situations through years of experience and knowledge. 

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