Overstock Risk: Prevent Inventory Surplus in Toy & Miniature Retail
Overstock Risk is the likelihood that a seller will hold more inventory than market demand can absorb within a reasonable timeframe.
In the toys and miniatures sector, overstock risk is especially high for faction-specific kits, terrain pieces, and items with shifting meta relevance. Amazon sellers must manage this risk carefully to avoid FBA storage penalties and stagnant Amazon stocklist performance. Toy wholesale suppliers also face overstock risk when forecasting which profitable toys wholesale should be produced or restocked.
Example in practice:
A store buys heavy quantities of a faction that later receives weaker rules, causing a sharp drop in demand and tying up capital.
Why does this matter?
Overstock risk impacts:
- Cash flow
- Warehouse space
- Long-term profitability
