Learn How to Navigate Challenges for CPG Brands on Amazon with this 5-minute Read

For most CPG brands on Amazon, managing inventory feels like walking a tightrope. Too much stock, and you burn cash on storage fees. Too little, and you lose ranking, Buy Box share, and customer trust. The balance between availability, lead times, and capital efficiency is what separates top-performing brands from the rest.

Let’s break down the most common inventory challenges and how to fix them.

1. The Days of Stock Dilemma

Challenge: Many brands lack a clear view of their stock levels across available, transit, and warehouse inventories. Without visibility, forecasting becomes guesswork.

Solution: Build a real-time dashboard or leverage tools that consolidate your days of stock across every stage from FBA to your 3PL. This clarity helps you forecast more accurately and prevent sudden sellouts.

2. The Transit Time Trap

Challenge: Failing to factor in transit, kitting, and receiving times at FBA leads to delayed replenishments and out-of-stock situations.

Solution: Map your entire logistics timeline. Understand exactly how long it takes for products to move from your warehouse to being live on Amazon. Plan your replenishment cycle based on actual lead times, not assumptions.

3. The Stockout Spiral

Challenge: Running out of inventory doesn’t just stop sales, it kills momentum. Amazon’s algorithm punishes stockouts by dropping your ranking.

Solution: Know your top-performing SKUs and secure optimal days of stock per listing. Treat your portfolio like a hierarchy, protect your best-sellers at all costs.

4. The Capacity Crunch

Challenge: When FBA capacity limits hit, it’s easy to panic and spread inventory too thin.

Solution: Apply the 80/20 rule, focus on the 20% of SKUs driving 80% of revenue. Keep your fast movers stocked and scale back slower ones temporarily to maximize sales velocity and ranking stability.

5. The Subscribe & Save Opportunity

Challenge: Many brands overlook their recurring revenue potential by not monitoring Subscribe & Save performance.

Solution: Track growth in Subscribe & Save subscriptions per listing. It’s a strong indicator of brand loyalty and a buffer against sales volatility.

6. The Peak Season Pressure

Challenge: During Q4 or seasonal peaks, extended lead times can cripple even well-prepared brands.

Solution: Build a buffer stock during peak periods. This ensures that even if Amazon delays check-in or shipping times, your listings remain live and profitable.

7. The Working Capital Balancing Act

Challenge: Overstocking ties up cash and drives up storage costs, while understocking limits sales.

Solution: Identify the optimal working capital per listing. Analyze sell-through, lead times, and carrying costs to find the balance between liquidity and inventory depth.

🚀 The Takeaway

Inventory management isn’t just an operational task; it’s a growth strategy. CPG brands that master inventory visibility, prioritize their top SKUs, and build flexibility into their supply chain to win the long game on Amazon.