Inventory & Fulfillment

1. Start with a spreadsheet (if you have under 50 SKUs)

For a small catalog, a simple Google Sheet works fine. Create columns for: Product Name, SKU, Current Stock, Reorder Point, Supplier Lead Time, Cost Per Unit, and Last Restock Date. Update it every time you receive inventory or ship an order. This is free, simple, and works until it doesn't.

2. Know when to upgrade to software

• You are selling on more than one channel (your store + Amazon, for example) and stock levels don't sync
• You are shipping more than 10 orders per day and manual updates take too long
• You have had stockouts or oversells because the spreadsheet was out of date
• You are managing more than 50 SKUs with variants

You need dedicated inventory software when any of these become true:

3. Set reorder points for every product (15 min)

For each product, calculate: Average daily sales x Supplier lead time (in days) + Safety stock (usually 7 days of extra inventory). Example: You sell 5 units/day, your supplier takes 14 days to deliver. Reorder point = 5 x 14 + 35 = 105 units. When stock hits 105, place your reorder.

4. Choose your fulfillment model (10 min)

• Self-fulfillment: You pack and ship from home or a rented space. Best when under 20 orders/day. Lowest cost, most control, most time-intensive.
• 3PL (Third-Party Logistics): Send inventory to a fulfillment center like ShipBob. They store, pick, pack, and ship. Best when you hit 20-50+ orders/day or want to offer 2-day shipping. Typical cost: $3-5 per order plus storage fees.
• Hybrid: Self-fulfill your best sellers, use 3PL for long-tail products. Common as stores scale.

5. Do a weekly inventory count (ongoing)

Set a weekly 15-minute ritual: count your actual stock and compare it to your system. Discrepancies happen due to damage, theft, miscounts, and returns. Catching them weekly prevents surprises.