How to avoid overselling and maximize your Temu Success?

Temu is a young guy in the e-commerce industry who has ascended the stairs of success really quickly. It has a wide consumer base, efficient selling strategies, and a really good website that invites consumers to make as many purchases as possible at affordable prices. Now, the most common problem faced by sellers on the Temu marketplace is overselling, mostly due to poor inventory management and a lack of data insights. This blog is here to solve all your queries on how to avoid overselling on Temu. 

What does Overselling Means?

As the name suggests, it refers to selling products more than the availability 

Overselling occurs when a store or brand unintentionally sells more items than it has on hand. The most common cause is sellers’ failure to link their inventory management systems with the marketplaces such as Temu, Walmart, Tiktok, and eBay. It also leads to a stockout situation, and when a product is out of stock, a consumer is unable to buy it, which results in a lost sale. 70% of customers will opt to purchase at a rival after three stockouts, and 30% of customers believe that stockouts negatively impact their shopping experience. Sellers need to prevent overselling on Temu; for that, they need to have a strategy. 

Strategies to Prevent Overselling on Temu

Temu store owners just need the right strategy, which helps them reduce stockouts and maintain an inventory buffer. Here’s all you need to do: 

1. Centralized Inventory Management System 

With this, sellers can control everything from a single dashboard rather than logging into each platform independently. The software removes the possibility of overselling with its real-time inventory tracking across all channels when an item sells. Also, sellers can avoid stockouts or overstocking inventory on temu with this implementation. Sellers can save a great deal of time with its centralized order processing feature that comes alongside.

Find out how ecommerce business streamlined with Centralized Inventory Management.

2. Set Inventory Buffer Aside

Using a buffer stock strategy is one of the easiest strategies to prevent overselling. Inventory Buffer is a set amount of inventory kept by the seller, off the market, to ensure that they have extra products in case inventory updates are delayed or there are inconsistencies. Suppose the seller has 10 units in the buffer inventory. Whenever there is a slight demand spike that was unexpected, this buffer can help 

3. Improve Demand Forecasting 

In order to prevent stockouts and overselling on Temu, sellers need this strategy. This assures that the business is ready for higher sales coming up. This data can also be received by an inventory management system that automates inventory tracking. To conduct the same study manually is difficult, but analysis of previous sales, seasonal shifts, and demand patterns can help the sellers do the same.  

4. Establish Reorder Points 

Sellers also need to know exactly when they need to reorder the inventory. There has to be a certain lower limit where sellers, while selling on Temu, re-order or produce the inventory so that the stockout condition is prevented. This can be decided by calculating the rate at which the items are sold, so orders can be placed in advance. Also, as sellers sell on Temu marketplace, they need to keep track of the time at which the stock arrives at the warehouse. 

5. Clear Out Dead Stock 

Inventory that cannot be sold is known as dead stock, and it frequently happens as a result of changes in consumer preferences or technology becoming obsolete. It takes up valuable warehouse space and leads to additional charges for storage. Eliminating dead stock makes space for items that sell more quickly, reducing the need for regular repurchasing, and keeps the inventory concentrated on items that bring in profits rather than extra cost. 

6. Use FIFO Method 

Sellers need to ensure that older stock is sold before the latest stock. This strategy is called First In, First Out (FIFO). It lowers the possibility of outdated or expired goods. Businesses that deal with inventory that does not have a long shelf life will find this to be extremely helpful. Over time, some products like electronics or clothing may see changes, so they need to be sold first. Centralized inventory management is also made easier by this.

7. Stock Alert 

Stock alerts are the most useful strategy for e-commerce sellers. With this, they can get a notification whenever the stock reaches the minimum limit. With a multichannel order management system, sellers can set up such alerts to prevent overselling of their stock. With such alerts, sellers can work worry-free towards selling, as a stock-up notification will do the job for them.

What are the Reasons for Overselling?

To fix this issue permanently, sellers need to know the reason why this happens. Here are the reasons: 

1. Going with the Flow

Sellers need to know that their business functions on data and stats, not just ‘flow’. Sellers must organise the inventory such that it meets the demand before it even appears in reality. Demand forecasting is really important to avoid inventory failures. 

2. Supplier Issues 

When it comes to managing inventory, suppliers are very important for the business. Production or shipment delays can cause problems for the inventory strategy. Hence, sellers need to make sure that their needs are aligned with suppliers' fulfillment. Their timely deliveries are going to have a direct impact on your business performance. 

3. Poor Inventory Management Software 

Just any inventory management software cannot serve the purpose. Temu integration with the right software is necessary for efficient inventory management and accurate order management. Sellers need to look for a versatile software that works for ecommerce integration rather than focusing on just one area of the problem. 

MapMyChannel The Quick Fix to Overselling Problems 

Since we have discussed how the problem can be solved, let us also discuss the ultimate solution to this. MapMyChannel is the go-to solution for Temu sellers looking forward to bringing all its operations from order placement to final fulfillment together on a centralized platform. It not only solves overselling issues, but also brings automation to business with real-time tracking, streamlined order fulfillment, and a hold order feature. Using hold order, sellers can hold orders for a short duration, when they will be able to restock the warehouse for fulfillment. There are a variety of other features offered by MapMyChannel which are especially designed, keeping ecommerce businesses in mind. Go ahead and sign up to get the best out of your business. 

Maximize the sales by avoiding stockouts situation- Discover how centralized inventory can keep your Temu store on track. Know the Tips for preventing stockouts and increasing profits.