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Overstocking is a term used in inventory management that refers to the situation where a business holds more stock than is needed to meet demand. This often leads to excess inventory that can tie up capital, increase storage costs, and risk the stock becoming obsolete or perishable items expiring. While it might seem like a good idea to have plenty of goods on hand to meet customer demand, overstocking can have negative financial implications for a business.

Overstocking occurs when the amount of stock exceeds the actual sales demand. This can happen due to various reasons, such as overestimating customer demand, buying in bulk to get a discount, or failing to adjust orders to reflect current sales trends. It’s important for businesses to find a balance between having enough stock to meet demand without holding too much.

More Fulfilment Terms

A shopping cart is a virtual tool that allows customers to select, store, and manage products they wish to purchase. This tool mimics the function of a physical shopping cart used in retail store
Customer Relationship Management (CRM) is a strategy and technology used by businesses to manage and improve their interactions with current and potential customers. It involves using data analysis about customers' history with a company to improve business relationships, specifically focusing on customer retention and ultimately driving sales growth.

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