D2C Inventory — Stop Overstocking, Stop Stockouts

The inventory paradox: Overstock and I’ve seen a founder’s cash sit stuck in unsold products; understock and they lose sales to “Out of Stock” pages. I work with Indian D2C brands on tight working capital, and getting it right is the difference between growth and a cash crunch.

The 3 Stages of Inventory Management

Stage 1: Spreadsheet (0-200 orders/month)

At this stage, I tell every founder a simple Google Sheet works fine. Track: SKU, current stock, reorder point (when to order more), lead time (how long your manufacturer takes), and weekly sales velocity.

Reorder formula: This is the formula I hand clients — reorder when stock = (daily sales × lead time in days) + safety stock (7 days worth).

Stage 2: Shopify Inventory + Apps (200-1,000 orders/month)

Shopify’s built-in inventory tracking handles the basics. I tell clients to add Stocky (free on Shopify plans) for purchase orders and demand forecasting. This stage covers most growing D2C brands I work with.

Stage 3: Dedicated Software (1,000+ orders/month)

Once my clients hit 100+ SKUs across multiple warehouses and channels, here’s what I tell them:

5 Inventory Mistakes I See Killing D2C Brands

1. Ordering based on gut, not data — I make clients track weekly sales velocity per SKU and order against actual demand, not assumptions.
2. Too many SKUs too soon — I tell new brands to start with 10-20 SKUs. Each new SKU adds complexity and blocks capital.
3. Ignoring dead stock — My rule with clients: any SKU that hasn’t sold in 60 days gets discounted or bundled to free up cash.
4. Not syncing marketplace + D2C inventory — If a brand sells on Amazon AND its own website, I make sure inventory syncs in real-time to prevent overselling.
5. No safety stock for top sellers — I tell clients their top 5 SKUs should always carry 2-3 weeks of safety stock. Running out of your best-seller is the most expensive mistake you can make.

At Growww Tech, my team and I help Indian D2C brands set up inventory management systems, multi-channel syncing, and fulfillment workflows. Let’s optimize your operations.

Related reading:

• D2C Unit Economics
• Shiprocket vs Delhivery vs Pickrr