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