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Glossary · Operations

What is Overselling?

Overselling is selling a product that is not in stock. It comes from a delay in multi-channel stock synchronization or from a wrongly entered pack quantity. The result is a forced cancellation, which hits seller score and customer trust directly.

Detail

The most common hidden cause is a wrong unit definition on sets and bundles: define a 3-piece set as a single unit and the system can sell three times too much. Holding safety stock per channel largely removes the impact of sync delays.

Example

Enter the stock quantity as 3 instead of 1 for a 3-piece set, and 10 sets' worth of stock is listed as 30 sales, producing 20 cancellations.
FAQ

Common questions on this topic.

How is Overselling calculated?

The most common hidden cause is a wrong unit definition on sets and bundles: define a 3-piece set as a single unit and the system can sell three times too much. Holding safety stock per channel largely removes the impact of sync delays.

Why does Overselling matter?

The most common hidden cause is a wrong unit definition on sets and bundles: define a 3-piece set as a single unit and the system can sell three times too much. Holding safety stock per channel largely removes the impact of sync delays.

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