5 Best practices to prevent overselling for e-commerce brands

With today’s volatile trade landscape and unpredictable global supply chain disruptions, e-commerce retailers can’t risk alienating customers — or leaking profits — through stockouts. Yet overselling remains a serious problem, with 40 percent of sellers cancelling one in 10 orders and the cost of out-of-stocks estimated at $ 1.2 trillion in 2024.
Overselling occurs when demand exceeds available inventory, leaving consumers facing the dreaded “out of stock” notification after being charged for an item. As a result, overselling erodes consumer confidence, creating serious brand reputation and bottom-line issues for e-commerce retailers as consumers abandon their purchases, turn to competitors, and potentially share negative reviews. Notably, nearly 70 percent of shoppers claim their perception of a business is damaged when an item is out of stock after being told it was available online.