As brands gear up for Q4 and the peak holiday season, promotional strategy often takes center stage, frankly because it comes with anticipation of what a brand can do to drive sales. There’s speculation on deal lengths, what competitors will be doing and determining budget implications. However, if there is no strategic approach to inventory that is aligned with the promotion, even the best campaigns can fall short missing sales, incurring fees and making a long-lasting impact on profitability.
At Cart.com, we have witnessed the importance of creating an inventory plan that parallels the advertising plan, as well as the operational plan.
What’s changing this year?
This year, where we have seen pivots in behaviors due to the ongoing tariff complications and companies fraught with inventory challenges, the stakes are even higher, especially for Amazon sellers. We are seeing reduced inventory buys from vendors and tighter restrictions on capacity increases for sellers. Many brands are challenged with more capacity denials and continuing bids to justify more space than have previously experienced. This may have been a ripple effect from overages during the summer Prime event where Amazon and sellers miscalculated overstock, but regardless of the reasons, brands must adapt quickly
Key risks to watch for:
- Under-stocking top sellers during peak demand.
- Paying long-term storage fees for slow-moving or aged inventory when all capacity should be focused on strong sellers.
- Facing high storage rates on slow moving products when peak rates hit.
What is required to build a strong Q4 inventory plan?
These are some proven tactics that allow brands to be nimble and profitable throughout the holiday season:
- Clear aged inventory to create space for top sellers and a stronger portfolio mix
Open availability on top sellers by clearing slow moving items. This not only reduces LT storage fees but ensures your best-performing items have room to scale. Use promotional levers and shift advertising dollars to move older inventory. This can help reduce storage costs while driving incremental revenue. If pursuing this direction, it is also important to calculate the profit impact of discounting compared to fees and opening up storage space for strong sellers.
- Analyze sales trends
Review historical and current sales data to identify shifts in buyer behavior What sold last year may not be the top performer this year, so it’s key to understand what people are buying in the portfolio. Maybe this is the time to focus on selling bigger sizes to capture more margin dollars.
- Validate media investment assumptions to unit forecasting
Ensure your media plans align with realistic volume expectations. Overestimating demand can lead to overstocking and unnecessary fees. Underestimating units can lead to stocking out early and missing sales during critical sales windows. Although there is a lot of volatility throughout this highly promotional season, remaining agile and having inventory ready to move is critical.
- Plan for seasonality
If your products are seasonal, pinpoint when sales typically drop off. Avoid overstocking late in the season when storage fees are still high and sales slow. We have seen many brands that have a very clear drop off point for the season, usually anywhere between December 22 and December 28.
- Set up backup FBM offers
In case FBA inventory doesn’t check in on time, having FBM (Fulfilled by Merchant) offers ready can help you avoid lost sales. While conversion rates will be lower, you still have the opportunity to capture a sale.
- Account for longer check-in times
Q4 is notorious for delays as check-ins take much longer. Work backward from your desired in-stock date to ensure your supply chain is aligned and the product arrives on time. If you find yourself at risk of stocking out due to slower check-ins, consider a small parcel shipment to help get inventory levels healthy and able to cover demand.
Final thoughts
Inventory planning isn’t just an operational task. It is a strategic lever for growth and profit management. As Amazon’s fulfillment dynamics evolve, brands must be proactive, data-driven and flexible. By aligning inventory with promotional strategy and anticipating platform shifts, you can protect margins, maximize sales and make this Q4 your strongest one yet. Connect with us, and together let's develop a partnership that pays increasing dividends over time.
Subscribe to our emails for the latest industry insights!
By entering your email, you agree to receive marketing emails from Cart.com
