Description: Inventory excess refers to the situation where a company has more products stored than it can sell within a given period. This phenomenon is common in e-commerce, where rapid product turnover and changing trends can lead to an accumulation of unsold items. Excess inventory can result from inadequate planning, shifts in consumer demand, or even errors in marketing strategy. Companies often find themselves forced to offer significant discounts to clear these products, which can negatively impact their profit margins. Additionally, excess inventory can generate extra costs related to storage and product management, affecting operational efficiency. In competitive environments, where competition is fierce and consumer expectations are high, effectively managing inventory is crucial to maintaining profitability and customer satisfaction. Therefore, excess inventory not only represents a financial challenge but can also influence brand perception and customer loyalty.
