How Stockouts Can Hurt Your Business

The last thing you want as a shop owner is a stockout on hot-selling items. Imagine you get an influx of customers wanting a particular product, only to see the big, bold letters “Out of Stock” placed on the shelf. Not only would that be detrimental to customer satisfaction, but they might flock to your competitor resulting in customer loss.

Consistent stockouts are a nightmare and can cause a lot of harm to your business. From negative customer experiences to a loss in profitability, stockouts can even put you out of business.

Loss Of Customers

One of the major consequences of stockouts is the loss of regular customers. You’ve probably spent hours in customer acquisition, and a good chunk of your budget is probably allocated to marketing—not to mention the efforts in attracting new customers. A stockout will waste your efforts and marketing budget, as regular customers will go to your competitors to fulfill their product needs.

Furthermore, customers will be hesitant to come to your business in the future knowing that you may not have sufficient stock.

Unfulfilled Orders

If you have a poor inventory system, there’s a chance that a customer will pay for a product that you don’t have. This is common for e-commerce stores. You have to contact the customer, break the news their favorite product is out of stock and engage in the lengthy process of refunding the amount. The setback causes unnecessary delays, wastes time and leaves you with disgruntled customers.

Bad Reviews

Customers don’t like to spend money on businesses that have bad reviews. Consistent stock outs will lead to numerous negative reviews, that will have a severe impact on future profitability. The worst thing is that you can’t do anything about negative reviews, other than to reassure your customers that the product will be restocked soon.


Stockouts should be avoided at all costs. Poor inventory management systems are the root cause of such issues. That’s why you should invest in robust software that can help streamline your business processes. If you’re looking for such software, check out AltheaSuite.

AltheaSuite is inventory management software that can help you keep track of your inventory from anywhere in real-time! You can get instant alerts on low stock levels, and it will help you manage your inventory smoothly and efficiently.

The software has a variety of features, including POS software, barcode inventory management software, and batch tracking inventory management for restaurants, mattress stores, and wholesale businesses. You can contact them today to book a demo!

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