Überkauf

Überkauf is a German term describing a situation in which demand for a product, asset or service exceeds the available supply or the typical purchasing level. In retail and consumer markets, an Überkauf occurs when buyers purchase more than needed or planned, often driven by promotions, anticipation of shortages, fear of price increases, or herd behavior. This can lead to temporary stock shortages, distorted price signals, and the need for rapid restocking or later markdowns.

In financial markets, some German-language sources use Überkauf to describe an overbought condition, where prices have risen sharply and quickly, potentially paving the way for a correction. Technical indicators such as the Relative Strength Index (RSI) are used to assess this condition, with readings suggesting overbought status. The term emphasizes excessive demand rather than fundamental value.

Causes of Überkauf include marketing promotions, limited-time offers, speculative buying, and misperceived scarcity. Consequences may include unsold inventory, higher carrying costs, or, in markets, increased volatility and subsequent price reversals.

Mitigation strategies involve improved demand forecasting, inventory management, price discrimination and dynamic pricing, controlled promotions, and supply chain flexibility to align purchases with actual demand and reduce the risk of excessive buying.

See also: overbuying, stockout, overbought, demand forecasting, inventory management.