How To Fix Your Inventory So You Have More Money In Your Pocket (Part 1)

Hey there,

Peak season is right around the corner, and for many DTC brands, it can feel like running a marathon with no water station—your inventory sits on shelves, cash tied up, while your competitors sprint past. This isn’t just a logistics headache; it’s a profit killer. When holiday promos launch and ads ramp up, the last thing you want is to scramble for cash or miss out on growth opportunities because your money is stuck in unsold stock.

That’s why fixing your inventory now isn’t optional—it’s mission-critical. By taking proactive steps today, you’ll free up working capital to invest in marketing pushes, new product launches, and customer experience enhancements exactly when your customers are most eager to buy. Think of it as fueling your growth engine before the biggest shopping season of the year.

Here are 5 deep-dive strategies—each with clear next steps—to optimize your inventory and put more money back in your pocket before peak season hits.

1. Pinpoint Your Cash Drains

Most brands only see the tip of the iceberg when it comes to hidden inventory costs. Let’s surface everything:

• Aging Stock
  Pull a 90-day aging report in Shopify, Amazon, or your ERP. Anything sitting >90 days is money you’re paying to store, insure, and occasionally discount.
  

• Overstocked SKUs
  Identify products with zero sales in the last 30 days. Those shelf-warmers aren’t just unsold—they’re unpaid invoices.
  

• Hidden Fees
  Storage surcharges, holiday handling, returns processing, insurance—all of these add up. Tally last month’s line items to see what surprise fees you’re actually paying.

Next Steps:

1. Today: Export your 90-day aging and overstock reports; flag SKUs costing you the most.
   

2. By Tomorrow: Calculate the total monthly carrying cost (storage + fees) for those SKUs.
   

3. In 3 days: Host a 15-minute huddle with ops to pick two items for clearance tactics (bundle, flash-sale, or retire).

2. Trim the Fat with ABC Analysis

Don’t treat every SKU the same—give your top sellers the buffer they need and your slow-movers a swift exit:

• Classify Your SKUs
  

  • A-items: Top 70% of revenue—keep safety stock.
    

  • B-items: Next 20%—reorder conservatively.
    

  • C-items: Bottom 10%—bundle, flash-sell, or kill the SKU.
    

• Adjust Reorder Points
  Raise safety stock for A-items to avoid stockouts; pause auto-reorders on C-items to stop bleeding cash.

Next Steps:

1. Today: Generate an ABC report in your dashboard and color-code SKUs.
   

2. In 3 days: Decide on one C-item to bundle or sunset, and schedule that campaign.
   

3. In 1 week: Update your replenishment rules: increase A-item buffers by 10%, disable C-item auto-orders.

3. Unlock Cash with Creative Financing & Vendor Terms

DTC brands can’t always get net-90 from factories, but there are other levers:

• Pre-Sell & Crowdfund
  Launch a small pre-order drop for your next season’s hero SKU. Collect deposits up front to finance production.
  

• Inventory Financing
  Apply for Shopify Capital or Amazon Lending to borrow against future sales—keep your own bank account healthy.
  

• Buy-Now-Pay-Later (BNPL)
  Offer Klarna, Afterpay, or Sezzle at checkout so customers cover the cash-flow gap.
  

• Vendor “Win-Win” Proposals
  Even if full net-90 isn’t on the table, you can ask for:
  

  • Partial Deposits: Pay 30% up front, 70% on shipment.
    

  • Consignment Trials: Pay only for sold units in the first 30 days.
    

  • Volume Incentives: Guarantee a small MOQ increase in exchange for a 3–5% price break.

Next Steps:

1. Today: Research one financing option (e.g., Shopify Capital)—note application requirements.
   

2. In 5 days: Draft a one-pager pre-sell campaign outline (goal: 25% of your next order).
   

3. In 1 week: Apply for financing or integrate BNPL; email your top vendor a “win-win” payment proposal.

4. Automate for Ongoing Inventory Health

A one-off sweep won’t stick—build simple guardrails to keep your cash free:

• Threshold Alerts
  Set automated flags when any SKU ages past 60 days or its turn rate falls below 1.5× per month.
  

• Monthly “Inventory Checkup”
  Block 15 minutes on your calendar every month to review: aging, turns, and cash tied up.
  

• Sync Your Promo Calendar
  Import product launches, sales events, and ad schedules into your replenishment tool so forecasts adjust in real time.

Next Steps:

1. Today: In your dashboard, create alerts for 60-day aging and low turns.
   

2. In 5 days: Add a recurring “15-Minute Inventory Health” meeting on your calendar.
   

3. By next week: Upload Q4 promo dates into your forecasting module.

5. Align Supply Chain & Marketing for Peak Season

Your marketing calendar and inventory plan must move in lockstep—here’s how to make it seamless:

• Integrated Forecasting Sessions
  Host weekly syncs between supply chain, operations, and marketing to review demand forecasts, upcoming promotions, and stock levels.
  

• Campaign-Driven Replenishment
  Tag each promo (e.g., Black Friday email blast, influencer drop) with the exact SKUs and quantities allocated, so no surprise stockouts or overstocks.
  

• Promotional Safety Stock
  Build a small “promo buffer” for your top 3 campaigns (e.g., +10% above forecast) to handle higher-than-expected response.
  

• Real-Time Dashboards
  Use a live dashboard that overlays marketing spend with inventory burn rates—if your AdWords ROAS spikes, ops can trigger an expedited reorder.

Next Steps:

1. Today: Schedule your first integrated forecast meeting—invite marketing, supply chain, and ops.
   

2. In 3 days: Map out your next three campaigns—list SKUs, target quantities, and promo dates.
   

3. By next week: Configure your dashboard to show marketing impressions vs. inventory depletion in real time.

Your “Pocket-Booster” Action Plan

• Run your 90-day aging & ABC reports (today)
  

• Clear one C-item via bundle or flash sale (by Wednesday)
  

• Kick off a pre-sell or financing strategy (this week)
  

• Automate alerts & monthly checkups (by Friday)
  

• Launch your first supply-chain/marketing sync (by next Monday)
  

Hit reply and let me know which strategy freed up the most cash—you deserve to celebrate every win!

Until next time,
Lara

P.S. Grab this resource to speed your rollout:

• ABC Template

P.P.S. Seats are filling fast for our “Inventory to Cash” workshop—watch your inbox for details!