If you know what quantities sell over time, you can limit supply and prevent surpluses. If they sell well, order more. If they don't, your loss is reduced. Companies who must order way in advance and buy on anticipated demand cause often fall victim to overstocks. If you aren't sure how something will sell, see if you can hold off until you know that fashions and tastes haven't changed sharply since a product announcement.
Excess inventory is the downside of buying large quantities at a reduced price from vendors.
Try to estimate your risk of future overstocks and whether your savings will vanish if goods don't move. Try to figure out ways to attract customers to your products before they become closeouts. If you work in retail or operate a showroom, examine your layout and make sure you draw eyes to hopeful hot sellers. The expense involved in keeping an item in stock, including warehousing, insurance, taxes and the interest on the money used to buy the goods. An item that is no longer wanted by customers or has been replaced by a newer, updated product.