Question
What is inventory loading?
Short answer: Inventory loading generally means buying more product than can reasonably be used or resold.
Why this matters
The risk is highest when product purchases are tied to compensation, rank, or pressure to appear active.
A refund policy is important, but it may not make a participant whole after time, shipping, fees, or missed deadlines.
Questions to ask before joining
- How much inventory is typical for new participants?
- What product can be returned and by what deadline?
- What percentage of participant volume is sold to non-participant customers?
Related recruiting phrases
Helpful next pages
Sources
- Multi-level Marketing Businesses and Pyramid Schemes, Federal Trade Commission . Accessed 2026-06-14. Support type: Regulator guidance.
- Business Guidance Concerning Multi-Level Marketing, Federal Trade Commission , 2024 . Accessed 2026-06-14. Support type: Regulator guidance.