Inventory Management for Growing Brands

Inventory is where apparel brands die. Stock out of your bestseller, and you lose momentum. Over-order, and your cash sits in a warehouse. Here's how to manage inventory without destroying your business.

The Inventory Trap

Most founders think inventory problems are about forecasting. They're not. They're about cash flow.

Every dollar in inventory is a dollar you can't use for marketing, new products, or emergencies. The goal isn't "never stock out"—it's "optimize cash while minimizing lost sales."

Start Simple: The 80/20 Rule

For most brands, 20% of SKUs drive 80% of revenue. Focus your inventory management energy there:

• Core products: Never stock out. Reorder aggressively.
• Seasonal/trend items: Order conservatively. Sell out = win.
• Experiments: Minimal inventory. Test before committing.

Basic Forecasting

You don't need fancy software. Start with this:

• Weekly sell-through rate: Units sold ÷ weeks of data
• Lead time: How long from order to delivery?
• Reorder point: (Weekly rate × Lead time) + safety stock

Managing SKU Proliferation

More SKUs = more complexity = more cash tied up. Be ruthless:

• Cut colors/sizes that don't sell
• Limit options on new products until proven
• Review SKU performance quarterly
• Kill slow movers fast (discount and move on)

Tools That Actually Help

Early stage (under $500K revenue):

• Spreadsheet tracking (Google Sheets works fine)
• Shopify's built-in inventory reports
• Manual reorder alerts

Growth stage ($500K-$2M):

• Inventory management app (Stocky, Inventory Planner)
• Basic demand forecasting
• 3PL integration if outsourcing fulfillment

Pre-Orders and Made-to-Order

The best inventory strategy? Don't hold it.

• Pre-orders: Sell before you produce. Use customer deposits to fund production.
• Made-to-order: Higher prices, longer lead times, but zero inventory risk.
• Drops model: Produce limited quantities. Sell out = success.

The Bottom Line

Perfect inventory management doesn't exist. The goal is to minimize the cost of being wrong—whether that's stockouts or overstock. Start simple, track religiously, and improve over time.