Overselling means reselling unused resources. Let's assume you have a reseller hosting with 10GB disk space and you sold 10 hosting accounts with 1GB disk space each. Not every customer will use 100% of their disk space. That means you will have some unused disk space that you can sell again. For example, if the 10 accounts consumed a total of 6GB storage, you can still sell 4 or more accounts.
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