Strategies For Reducing Overstock In Ecommerce

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

Because inventory causes exponential pain with multiple warehouses... This infographics shows how to manage inventory in this context: ➡️ Centralize Inventory Visibility ↳ Issue: not knowing inventory levels across locations can lead to overstock in one warehouse and stockouts in another ↳ Action: Implement an inventory management system/ ERP that shows real-time inventory positions for all warehouses in one snapshot ➡️ Classify Products and Prioritize ↳ Why: Not all SKUs deserve the same treatment; some are high-value, others are seasonal ↳ Action: Use ABC analysis to rank products by focusing on A-items for tighter control ➡️ Define Replenishment Rules by Warehouse ↳ Why: Different warehouses cater to different regions or demand patterns. One-size-fits-all reorder points (ROP) won’t cut it ↳ Action: Tailor ROP, safety stock, and min-max levels by location. Consider lead times from central distribution centers or suppliers for each site ➡️ Breakdown Forecast by Warehouse ↳ Why: Each warehouse faces unique market dynamics ↳ Action: Generate warehouse-level forecasts, combining local sales trends with broader S&OP inputs ➡️ Plan Transfers Strategically ↳ Why: Sometimes it’s of lower cost or faster to transfer stock than reordering from suppliers ↳ Action: Set up a transfer framework; regularly review surplus vs. deficit at each location. Automate triggers for transfer orders when it’s cost-effective. ➡️ Monitor KPIs Proactively ↳ Why: Multi-warehouse complexity can hide inefficiencies when not tracking the right metrics ↳ Action: Track fill rate, inventory turnover, stock aging, and transfer costs at each site. ➡️ Plan Direct Dispatches & Save Costs ↳ Why: Dispatch directly from the plant to save logistics costs ↳ Action: Prepare daily dispatch plans targeting direct replenishment from the plant and use these warehouses for milk runs for distributors Any others to add?

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