Inventory is where e-commerce profits hide and die. Too little stock loses the sale you paid marketing money to create; too much converts your cash into dusty shelves. The fundamentals below keep the balance.
1. Know your true best-sellers
The top 20% of SKUs usually drive 80% of revenue — protect their availability first.
2. Set reorder points per product
Lead time × daily sales + safety buffer = the number that triggers a purchase order.
3. Count cycle, not annual
Weekly mini-counts of a rotating section catch discrepancies while they are traceable.
4. First in, first out
Especially for cosmetics, food and fashion — age dies on shelves quietly.
5. Track landed cost, not invoice cost
Freight, customs and courier make the real margin picture.
6. Kill dead stock deliberately
Bundle it, discount it, donate it — but do not let it squat on your capital.
7. Let software do the math
Reorder alerts, valuation and movement reports belong in your POS/ERP, not your memory.
The sellers who scale are rarely the best marketers — they are the ones whose stock math is boring and correct. Get the system in early.
