Austin S-Corp, 340 SKUs on Shopify and Amazon. SKU-level forecast with reorder triggers. Deadstock cut $84K. Inventory turns up from 5.1x to 6.8x.
01The Situation
An Austin seller had never formally budgeted inventory. Three of her top 10 products stocked out in November 2023, costing an estimated $140K in lost sales. Meanwhile $84K in deadstock was tying up warehouse space. Every SKU looked identical in her financial system.
02What We Did
We pulled 2 years of sales data and classified every SKU by revenue, margin, and sell-through velocity. 42 SKUs generated 32% of revenue at the highest margin yet were managed identically to deadstock. We built a full COGS budget with reorder points from actual lead times. Deadstock identified, marked down, and liquidated over 3 months.
Breakdown
| Segment | SKUs | Revenue | COGS% | Gross Margin | Turns | Status |
|---|---|---|---|---|---|---|
| A Top Sellers | 42 | $840K | 64% | 36% | 8.4x | |
| B Core Range | 128 | $1.24M | 68% | 32% | 6.2x | |
| C Slow Movers | 112 | $420K | 72% | 28% | 4.1x | |
| D Deadstock | 58 | $84K | 81% | 19% | 1.8x |
Zero stockouts in peak season 2024, first time in 3 years. The founder said for the first time she felt like she was running a business rather than guessing.
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