Why should overstocking be avoided?

Asked a year ago

Hi all, just wondering why businesses aim to have a stock limit and try to avoid "overstocking". What are the potential risks or negatives of having too much stock when you sell non-perishable goods?

Abeeha Qasmi

Wednesday, January 25, 2023

Overstocking may seem fine for people with high sales value, but that is not the case for start-ups. If things go sideways, your business can face inventory-related difficulties such as product expiry, increased storage costs, and reduced existing working capital.

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