Overselling

Overselling is the practice of persuading a customer to buy or commit to a product or service by making claims that exceed what the offering can reasonably deliver. It can involve exaggerating benefits, downplaying limitations, or promising features, performance, or availability that are not supported by the product, contract, or policy.

Overselling occurs across contexts: consumer retail, software and services, real estate, travel and hospitality, and B2B procurement. Notable forms include overpromising capabilities in marketing materials, or overbooking in airlines and hotels, where demand exceeds supply and terms are adjusted to fill capacity.

Causes often include incentive structures encouraging immediate sales, optimistic forecasting, lack of product knowledge in sales staff, or misaligned marketing messages. Cognitive biases such as optimism and the scarcity principle can contribute.

Effects can harm customers through unmet expectations, disappointment, or financial loss; for firms, consequences include refunds, churn, reputational damage, and potential legal liability under consumer protection or false advertising laws.

Preventive approaches include accurate claims and disclosures, clear terms of service, training that emphasizes integrity, evidence-based demonstrations, and processes to verify promised capabilities. When overselling is discovered, prompt remediation—honest communication, refunds or alternatives, and corrective marketing—can help restore trust.