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Title: Overselling Is a Surefire Way to Destroy Your Online Store’s Reputation!
Title: Overselling Is a Surefire Way to Destroy Your Online Store’s Reputation!

discover | Thursday - 16 / 05 / 2024 - 10:20 am

I want you to close your eyes now and imagine the following scenario: you’re at the airport, eagerly waiting to board your flight back home… then you hear the boarding call, you get on the plane, and you settle into your seat…. And suddenly!.. The flight attendant approaches you apologetically and tells you that you have to leave the plane because the flight is overbooked, but you can catch an alternative flight the next day.

Simply put, the airline has “overbooked” the tickets and arriving at the airport on time won’t help you. How will this affect your experience as a passenger? Of course, you will feel frustrated and angry, and next time you won’t even think of booking with that airline, no matter what. Right?


What if your online store was that company?!

Have you ever listed a product on your online store, and after a customer bought it and paid for it – and it was time to pack and ship it – you realized that it was out of stock?! Then you have fallen into the trap of overselling.

As an optimist, I would say that overselling has a bright side, as you have managed to sell your entire inventory. But I am also a realist, so I will tell you about the negative effects of overselling on your brand:

– Damaged reputation: Unhappy customers spread negative reviews, and the effects can last for years!

– Difficulty acquiring new customers: When you oversell to your customers and disappoint them, they will tell their friends, and their friends will tell their friends… and so on, you will have a hard time attracting customers to your online store.

– Impact on customer loyalty: No matter how hard you try to market to acquire and retain customers, one instance of overselling can destroy the trust you’ve built over the years. And once that trust is gone, it will be almost impossible to get it back.

– Revenue loss: The compound damage caused by damaging your company’s reputation and losing customer loyalty will undoubtedly affect your sales and revenue.

Why do some people resort to overselling?

  1. Poor inventory management:

Most cases of overselling occur when you are unable to track your inventory. In reality, and ethically as well, no company would intentionally sell products that it does not own. When you launch your online store, inventory management will be very simple. However, as your business and customer base grows, you will need a way to ensure that the product information in your online store matches what is in your warehouses.

  1. Inaccurate product information:

The online store page shows that the product is available, while it may be out of stock in your warehouse. This confusion often occurs as a result of failing to update product information in a timely manner or an error due to manual entry.

  1. Overselling “with premeditation”!

Work environments that prioritize sales over customer satisfaction and offer large incentives to top salespeople (or affiliate marketers) can be fertile ground for overselling.

  1. Poor order processing and fulfillment:

In other words, there is a flaw in the conversion path from order processing to fulfillment. This is due to one or both of the following:

– Ineffective inventory management system.

– Poor communication between the fulfillment teams and the delivery teams.

When this combination of human and digital errors occurs, it often leads to failure to meet the correct delivery deadlines to the customer. This results in under-delivery, over-promising, and overselling.

Strategies to Prevent Overselling:

Now, how do you avoid the detrimental impact of overselling on your online store’s reputation and revenue?

The answer is simple:

✓ Manage your inventory with meticulous precision:

When I say “meticulous precision,” I mean entrusting the task to the true expert: the Logix system for inventory and warehouse management! Just as if you had a GPS, the Logix system helps you navigate accurately between your inventory levels thanks to its centralized nature. Information is drawn from the same source and updated in real time. We should not forget to mention the ability to connect the Logix system to the most important e-commerce platforms (Z – salla – Magento … etc.). All of this while completely eliminating human error.

Logix inventory and warehouse management system provides automated notifications when your inventory levels reach a certain point. By regularly reviewing your inventory for discrepancies, overselling becomes a thing of the past.

✓ Ensure product information is clear and transparent by:

– Maintaining consistency in product information across all departments.

– Ensuring that stock levels and product availability are always visible.

– Communicating clearly and honestly with customers about their order delivery dates, especially in case of potential delays. This builds trust by demonstrating transparency and honesty.

When a product is oversold, consider suggesting alternative product to the customer as this will encourage your customers to return to your store when the original product becomes available.

✓ Reinforce a “Customer First” Culture:

Remember the example (my sales and commission marketing team) we mentioned earlier? Of course, you wouldn’t want that example to apply to your store! Therefore, educating about ethical sales practices becomes essential:

Incorporate this practice into the company culture and establish guidelines to guide employees on an ongoing basis.

Define to your employees what your online store and brand represent in terms of the importance of “going beyond profits.” Show them, first and foremost, but also to your wider audience, that customer satisfaction, not profit, comes first.

Instead of commissions for sales, offer rewards for five-star ratings or positive customer reviews and recommendations. In the long run, this will transform the profitability and reputation of your brand.

✓ Handle orders efficiently:

As mentioned earlier, the problem of poor order processing and fulfillment stems from two factors: weak infrastructure for meeting digital demands and poor communication between teams. Therefore, the solution is divided into a two-pronged approach:

Utilizing automation features in inventory and warehouse management systems, such as Logix for example. This feature automatically:

– Shares order data

– Checks inventory availability

– Tracks order delivery

It also allows you to continuously monitor order fulfillment processes and improve them in terms of speed and efficiency, and identify any bottlenecks or disruptions in supply chains.

As for improving communication between teams, this can also be done through a unified dashboard and reports. This allows employees to:

– See inventory levels

– Understand the responsibilities of each team member.

All of the above positively impacts the accurate tracking of delivery schedules, the handling of pending shipping orders, and anticipated delays.

✓ Identify Stockout Patterns:

Utilize your previous reports to identify any recurring issues or trends. By analyzing historical inventory data and recognizing recurring patterns, you can gain insights that will empower you to be more proactive and strategic in your decisions.

Furthermore, you can anticipate and prepare for periods of increased demand or supply chain disruptions. By understanding when and why stockouts occur, you can refine your forecasting and safety stock calculations to be more accurate.


To avoid falling into the trap of overselling – whether by mistake or otherwise – you must be prepared.

Fortunately, now that you know what overselling is and what you can do to prevent its risks from negatively impacting your online store’s reputation, you’re halfway there!

However, to reach the finish line, you must approach every “sale” with a sincere heart and good intentions, and have the ability to control the internal operations of your online store – a task that our system will handle – and things will be just fine.

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