Inventory Management

Bootstrapping Inventory Management Gone Right

I recently came across a fantastic presentation called The Resilience of Costco. The entirety is worth clicking through because Costco is a fascinating case study. They are thriving with in-store retail when others are struggling. There are a whole host of reasons why they’re able to do this, from their membership model to their limited SKU selection to their cheap warehouse space, or even how well they compensate their employees. One slide about inventory management really stuck out to me, and it reminded me that… Continue reading


Inventory – the Death of e-Commerce Companies, Large and Small

A New Company Let’s take, for example, a brand new company that’s getting into the blue widget business.  For fun, let’s call the owner Carlos. Widgets cost $50, and retail for $100.  For simplicity, we’ll assume that Carlos has to pay in cash up front (which is somewhat common when you just start out), that he orders once per month, and that he receives his inventory immediately (clearly, not very common). Carlos has saved up and he has $5k to start out with, so he… Continue reading