Common Inventory Mistakes In Ecommerce Stores

Want to burn money and frustrate customers? Just throw every SKU into every warehouse. Here’s the problem. Too many brands spread their inventory thin, across too many warehouses. It feels like the right move. “Closer to customers means faster shipping,” right? Wrong. When you throw every SKU into every warehouse, you create chaos. Inventory counts become inaccurate. Popular SKUS sell out in key regions. Dead stock sits untouched collecting dust in the warehouse. Eating up precious space and $$$ And your 3PL? They’re scrambling to clean up the mess. Instead of faster shipping, you’re left with longer delays, higher costs, and upset customers. The fix? Be intentional about what goes where. First, know your SKU velocity. What products move fastest in specific regions? Stock them accordingly. Don’t let slow movers clog up valuable space. Next, leverage data to match supply and demand. Use historical sales data to predict regional demand. Your warehouses should be aligned with where customers are actually buying. If your fulfillment provider can do this for you, you have a REAL winner. Last, create a consolidation strategy. Centralize low demand SKUS to a single location to avoid dead stock. Stocking every SKU in every warehouse doesn’t speed things up. It slows you down. Be strategic, save money, and keep your customers happy. Messy networks don’t scale. Smart strategies do. #ecommerce #warehousing #fulfillment

Deadstock is a silent killer. Here’s how to fix it. At Chubbies, we lived and died by inventory efficiency. But early on, we learned the hard way: Deadstock isn’t just excess inventory—it’s locked-up cash, wasted storage costs, and a slow bleed on margins. If you run a $20-$50M brand, you already know how quickly unsold products accumulate. A seasonal bet misses. A SKU doesn’t hit—consumer demand shifts. You’re sitting on thousands of units, hoping discounts will move them. And these products are not fine wines—they don’t age well. Here’s how we solved it: 𝟭. 𝗦𝗽𝗼𝘁 𝗶𝘁 𝗲𝗮𝗿𝗹𝘆 Track sell-through rates and aging inventory at the SKU level. If an SKU isn’t moving at the pace you expected in the first 30 days, your system needs to notify you, and you need to take action. It’s now a liability. 𝟮. 𝗧𝘂𝗿𝗻 𝗶𝘁 𝗶𝗻𝘁𝗼 𝗰𝗮𝘀𝗵 Be proactive. Run flash sales, try unique bundling promotions, or offload to discount channels as a last resort. The cash from these products will feed your future product winners! 𝟯. 𝗡𝗲𝘃𝗲𝗿 𝗺𝗮𝗸𝗲 𝘁𝗵𝗲 𝘀𝗮𝗺𝗲 𝗺𝗶𝘀𝘁𝗮𝗸𝗲 𝘁𝘄𝗶𝗰𝗲 Audit past buys, tighten demand forecasting, and set hard rules for re-ordering so you don’t repeat bad inventory bets. Deadstock isn’t just a storage & operational issue—it’s a profitability killer. Fix it early, or watch it compound. What’s your deadstock horror story? Let’s talk👇 #deadstock #inventorymanagement

Common errors in inventory management can lead to inefficiencies, stockouts, or overstocking, which can hurt business operations. Here are some of the most common errors: 1. Inaccurate Demand Forecasting Issue: Underestimating or overestimating customer demand can result in stock shortages or excessive stock. Solution: Use historical data, market trends, and advanced forecasting tools to predict demand more accurately. 2. Lack of Real-Time Inventory Tracking Issue: Without real-time data, businesses may make decisions based on outdated information, leading to stock discrepancies. Solution: Implement inventory management software that provides real-time updates on stock levels. 3. Overstocking Issue: Carrying more inventory than needed ties up capital, increases storage costs, and risks spoilage (for perishable items). Solution: Use just-in-time (JIT) inventory methods and monitor stock levels closely to avoid over-ordering. 4. Stockouts and Backorders Issue: Running out of stock can lead to lost sales, unhappy customers, and production delays. Solution: Set reorder points and safety stock levels to maintain optimal inventory. 5. Poor Supplier Management Issue: Unreliable suppliers or delays in deliveries can disrupt inventory levels. Solution: Build strong relationships with multiple suppliers and monitor their performance regularly. 6. Manual Data Entry Errors Issue: Manually inputting data can result in mistakes like incorrect stock counts or mismanaged orders. Solution: Automate inventory processes with barcode scanners, RFID systems, or integrated software. 7. Lack of Proper Categorization Issue: Failing to categorize products can make it difficult to track stock levels, reorder items, and assess inventory performance. Solution: Use SKU (stock-keeping units) and categorize inventory based on factors like sales velocity, product type, and demand. 8. Ignoring Inventory Audits Issue: Without regular audits, inventory discrepancies may go unnoticed, leading to incorrect stock levels. Solution: Conduct regular cycle counts or annual physical inventory audits to ensure stock accuracy. 9. Inefficient Warehouse Layout Issue: A poorly organized warehouse can slow down picking and packing, resulting in delays and errors. Solution: Optimize warehouse layout based on product movement and demand, using a logical system to minimize time and labor. 10. Failure to Manage Obsolete Inventory Issue: Holding onto obsolete or slow-moving stock can lead to wasted storage space and sunk costs. Solution: Implement strategies like discounting, bundling, or liquidation to move old inventory and free up space for high-demand items.