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FBA Glossary

Seasonal Inventory

Stock built ahead of a predictable demand peak, then drawn down.

Definition

Seasonal inventory is stock you build up ahead of a predictable demand peak, holiday, weather-driven, or event-based, and draw down through the season. Managing it well means timing the build so you have enough for the peak without being stuck with surplus when demand drops back.

Why seasonal inventory is harder on FBA

Long multi-leg lead times mean you commit months before the peak, and the exact window you need to build is when Q4 storage surcharges rise, restock and capacity limits tighten, and check-in slows down. Misjudge the build timing and you either stock out during the peak or strand surplus after it.

How to plan the build and the drawdown

Work backward from the peak: a Q4 SKU with a 90-day total lead time (production, freight, customs, and check-in) needs its PO placed by roughly mid-August to be sellable before the Thanksgiving ramp, not in October when it is already too late. Forecast the peak from prior seasons rather than a flat annual average, and plan the drawdown deliberately: start easing price down in early December rather than dumping it in January, so you exit the season near zero instead of carrying dead stock into the new year.

How seasonal inventory connects to your restock decisions

Seasonal SKUs need their own demand curve and earlier reorder dates than steady sellers. A flat reorder rule will always be late for the ramp and too heavy for the falloff, which is why seasonality has to be modeled per SKU rather than averaged away.


Related terms

  • Obsolete Inventory
  • Safety Stock
  • Sales Velocity
InventoryHero

Plan the seasonal build and drawdown

Inventory Hero forecasts each SKU on its own demand curve and sets earlier reorder dates for seasonal items, so you land stock before the ramp and exit the season clean.

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