And vendors who boosted supply based on anticipated sales (both discounts and purchases driven by discounts). Are vendors going to find themselves with thousands of extra widgets on-hand but without the anticipated purchasing frenzy they were counting on to sell them?
Yup, and if you have too much inventory, you can either remove it or sell it at a discount, both are expensive options.
Otherwise you'll get Amazon telling you, "Hey buddy! You sure are using up a bunch space and not selling much. Why don't you not do that? We're limiting the amount of storage space you can use for Q3.