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Q4 Inventory Planning Checklist: Holiday Season Prep for E-commerce

By ReplenishRadar TeamJanuary 11, 20265 min read

The Q4 Inventory Challenge

Q4 can make or break your year. For many e-commerce sellers, November and December generate 30-50% of annual revenue.

The challenge: Order enough to capture demand without being stuck with overstock in January.

Q4 Planning Timeline

July: Data Analysis

  • Pull last year's Q4 sales by SKU
  • Calculate YoY growth rate
  • Identify top Q4 performers
  • Note any anomalies (viral products, stockouts)

August: Forecasting & Ordering

  • Build Q4 demand forecast
  • Apply growth assumptions
  • Place orders for 45+ day lead times
  • Confirm supplier capacity

September: FBA Preparation

  • Check Amazon inventory limits
  • Plan FBA shipments to arrive by Oct 15
  • Create backup fulfillment plan
  • Order packaging/supplies

October: Final Push

  • Rush orders for any gaps (air freight if needed)
  • Complete FBA shipments before deadlines
  • Test fulfillment operations
  • Confirm staffing

November-December: Execution

  • Monitor sell-through daily
  • Reorder fast movers if possible
  • Activate liquidation for slow movers
  • Track competitor stockouts (opportunity)

The Q4 Demand Forecast

Step 1: Baseline from Last Year

Pull SKU-level data:

SKU-A: Oct 100, Nov 350, Dec 280
SKU-B: Oct 50, Nov 180, Dec 150

Step 2: Apply Growth Rate

If you're growing 20% YoY:

SKU-A Nov forecast: 350 × 1.2 = 420 units

Step 3: Adjust for Known Factors

Add or subtract for:

  • New marketing spend
  • Expanded channel presence
  • Category trends
  • Economic conditions

Step 4: Add Safety Buffer

Q4 demand is volatile. Add 10-20% buffer for A items:

SKU-A Nov: 420 × 1.15 = 483 units (rounded to 485)

FBA-Specific Q4 Planning

Amazon Inventory Limits

Amazon restricts how much you can send to FBA. Check your limits in August and:

  • Clear slow movers before Q4
  • Request limit increases if available
  • Plan backup fulfillment (FBM, 3PL)

FBA Shipping Deadlines

Typical deadlines (verify current year):

Event Inventory Deadline
Black Friday Nov 1-7
Cyber Monday Nov 7-14
Christmas delivery Nov 20-25

Ship early. FBA receiving slows dramatically in November.

Long-Term Storage Fees

Inventory sitting since spring? Q4 is your chance to sell it. Products in FBA 271+ days face steep fees. Either sell them during holiday traffic or remove them.

Multi-Channel Q4 Strategy

For sellers on both Shopify and Amazon:

Allocate Inventory Wisely

Channel Q4 Characteristic Inventory Strategy
Amazon Higher volume, Prime expectations Front-load FBA early
Shopify Higher margins, more flexible Keep warehouse buffer

Backup Fulfillment

If FBA hits limits or runs out:

  • Enable FBM on Amazon listings
  • Use 3PL for overflow
  • Consider Shopify fulfillment network

Unified Visibility

Know your total position across all locations:

  • FBA reserved
  • FBA available
  • Warehouse
  • In transit

ReplenishRadar unifies this view so you know true availability.

The Stockout vs. Overstock Decision

Q4 forces a choice:

Risk of Understocking

  • Lost sales at peak prices
  • Lost Amazon ranking
  • Competitors capture your customers
  • Revenue impact: Direct loss

Risk of Overstocking

  • Cash tied up post-holiday
  • Storage fees (especially FBA)
  • Liquidation at margin loss
  • Revenue impact: Margin erosion

The Right Balance

SKU Category Risk Tolerance Strategy
A items Understock worse Order aggressively + buffer
B items Balanced Order to forecast
C items Overstock worse Conservative + markdown plan

For A items, the cost of a stockout (lost sales) exceeds the cost of carrying extra inventory.

Air Freight Decision Framework

When to use air freight for Q4:

Air freight makes sense when:
Lost Sales Value > Air Premium Cost

Example:
- SKU sells $50, margin $20
- Sea freight: $2/unit, 45 days
- Air freight: $8/unit, 7 days
- Air premium: $6/unit

If stockout loses 100 sales:
Lost margin: 100 × $20 = $2,000
Air cost for rush 100 units: 100 × $6 = $600

Decision: Air freight saves $1,400

Post-Q4 Planning (Yes, Plan This Now)

January Liquidation Plan

Products that don't sell by Dec 26 need a plan:

  • Post-holiday sale pricing
  • Bundle into value packs
  • Secondary marketplaces
  • Liquidation channels

Returns Processing

Q4 gifts generate January returns. Plan for:

  • 15-30% return rate on some categories
  • Refurbishment capacity
  • Restocking timeline

Q4 Inventory Checklist Summary

August:

  • Q4 forecast complete
  • Primary orders placed
  • Supplier capacity confirmed

September:

  • FBA limits checked
  • FBA shipments created
  • Backup fulfillment ready

October:

  • FBA inventory received
  • Gap orders placed (air freight if needed)
  • Operations tested

November:

  • Daily monitoring active
  • Reorder triggers set
  • Liquidation plan ready

ReplenishRadar helps with Q4 forecasting, showing you projected stockout dates and recommended order quantities based on holiday seasonality patterns.

Plan your Q4 inventory with confidence. Start a free trial and see Q4 forecasts for your SKUs.


Related Reading:

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