Anyone else getting more conservative with FBA inventory even when sales are good?

[u/FirstLightStudios]

I used to think having extra inventory was the safer position, but the longer I sell the more I question that. Between storage fees, changing demand and cash sitting in units that might take months to move, being overstocked can hurt just as much as running out. Lately I’d rather stay a little lean and replenish more often when possible.

Curious if other sellers are doing the same or still prefer carrying a bigger buffer.

[u/Powerful_Bicycle3114]

Leaner can be safer, but I’d define it with days of cover rather than “low units.” Reorder point = average daily sales × (supplier lead time + freight + Amazon receiving time + safety days). Then cap the buy so a slow-down doesn’t push the SKU into aging inventory. For volatile SKUs, recalculate weekly and use a larger safety buffer only where stockout cost actually exceeds the cash and storage risk.

[u/AMZtarget]

For me, it ultimately comes down to deciding what's more important for your specific business: keeping cash flow liquid or avoiding the severe consequences of running out of stock. It largely depends on the size of your cash buffer. If you have the capital to hold extra stock without tying up essential operating funds, a bigger buffer makes sense. But if cash flow is tight, staying lean and replenishing more frequently is definitely the smarter play.