Planning Amazon inventory for the 2026 holiday season is the single most important operational decision you will make all year, and getting it wrong in either direction costs you real money. At Marknology in Kansas City, I am Andrew Morgans, and after managing holiday inventory across 300+ brands, I can tell you that the brands who plan their holiday inventory starting in July consistently outperform those who scramble in October. Undershipping costs you sales and organic ranking. Overshipping costs you storage fees and cash flow. The goal is precision.
In This Article
- When Should You Start Planning Holiday Inventory?
- How Do You Forecast Holiday Demand on Amazon?
- What Are the FBA Shipping Deadlines for Holiday Season?
- How Does Your IPI Score Affect Holiday Inventory?
- Why Do You Need a Backup Fulfillment Strategy?
- How Do You Manage Q4 Storage Costs?
- What Are the Costliest Holiday Inventory Mistakes?
- Frequently Asked Questions
When Should You Start Planning Holiday Inventory?
Holiday inventory planning should begin in July, six months before peak season. Here is the timeline:
- July: Analyze last year's Q4 data, determine product lineup, place initial manufacturing orders
- August: Finalize order quantities, arrange freight forwarding, book shipping lanes (ocean freight rates spike in September)
- September 1-15: Ship your primary Q4 inventory to FBA. This is the critical deadline
- October: Send replenishment shipments, verify all inventory is received and available
- November: Final top-off shipments for BFCM, activate FBM backup
Amazon's infrastructure in regards to logistics has been at three times the busiest season they have ever had. Brands are experiencing trucks that were supposed to arrive on Monday not arriving until the following Monday. It has been kind of chaos. - Andrew Morgans on Startup Hustle
How Do You Forecast Holiday Demand on Amazon?
Demand forecasting for Amazon Q4 combines historical data with growth projections. Here is the Marknology method:
Step 1: Establish your baseline
- Pull last year's Q4 unit sales by ASIN from your Business Reports
- Note any stockout days (you undersold if you ran out) and add estimated lost units
- Calculate your daily average for October, November, and December separately
Step 2: Apply growth multipliers
- Year-over-year growth rate: If you grew 30% YoY this year, apply at least 20% to Q4 projections
- New advertising investment: If you are increasing ad spend, add 10% to 15% for incremental demand
- Deal participation: Lightning Deals and Best Deals can drive 5x to 10x daily volume during the deal window
- Category growth: Check your category's overall growth rate on Amazon
Step 3: Calculate total units needed
- October: Baseline daily average x 1.5x x 31 days
- November: Baseline daily average x 3x to 5x x 30 days
- December: Baseline daily average x 2x to 3x x 31 days
- January safety buffer: 2 weeks of normal stock
What Are the FBA Shipping Deadlines for Holiday Season?
Amazon's FBA receiving times extend dramatically during Q4. Here are the critical deadlines:
| Deadline | What | Why It Matters |
|---|---|---|
| September 15 | Main Q4 inventory arrives at FBA | Receiving times are still 1 to 2 weeks. After this, delays increase |
| October 15 | Replenishment shipments sent | Receiving times now 2 to 4 weeks. Last reliable window |
| November 1 | Final FBA shipment deadline | Receiving times can hit 4 to 6 weeks. High risk of not being received in time |
| December 1 | FBA customer shipping cutoff approaches | Last day for guaranteed holiday delivery varies by region |
How Does Your IPI Score Affect Holiday Inventory?
Your Inventory Performance Index score directly controls how much inventory Amazon lets you store in their warehouses. This is critical for Q4:
- IPI above 500: No storage limits. You can ship freely
- IPI 400 to 500: Storage limits may apply. Monitor closely
- IPI below 400: Significant storage restrictions. You may not be able to ship enough for Q4
Amazon evaluates IPI scores quarterly. The Q3 evaluation (measured in late June/early July) sets your Q4 storage limits. This is why July is not too early to start inventory planning. If your IPI is low, you need months to improve it before the Q4 evaluation window closes.
To improve IPI score: liquidate slow-moving inventory, remove stranded listings, improve sell-through rates, and reduce excess inventory months before Q4.
Why Do You Need a Backup Fulfillment Strategy?
Every brand selling on Amazon during Q4 needs a backup fulfillment plan. FBA is not guaranteed to work flawlessly during peak season. Your options:
- FBM (Fulfilled by Merchant): Ship from your own warehouse or office. Set up FBM listings now so they are ready to activate
- 3PL (Third-Party Logistics): Partner with a 3PL that can handle Amazon orders. Many offer Seller Fulfilled Prime eligibility
- Multi-Channel Fulfillment (MCF): Use Amazon's own MCF service to fulfill orders from other channels
For some of these brands that have relied on FBA for years, this is a wake up call. Being able to handle your own products right now, keep them available today, tomorrow, do not run out, being able to use a different shipping carrier than Amazon's is a benefit. It is a strong benefit for sellers. - Andrew Morgans on Startup Hustle
How Do You Manage Q4 Storage Costs?
Amazon increases storage fees during Q4 (October through December). Monthly storage fees jump from approximately $0.87 per cubic foot to $2.40 per cubic foot. Strategies to manage costs:
- Ship inventory just-in-time rather than months early. Balance receiving time risk against storage costs
- Remove or liquidate slow-moving inventory before October 1 to free up space for Q4 products
- Use Amazon's inventory placement service strategically to control which warehouses receive your products
- Factor storage costs into your Q4 margin calculations. The revenue increase should far outweigh the added fees
What Are the Costliest Holiday Inventory Mistakes?
- Stocking out during BFCM: A single day of stockout during Black Friday week can erase two months of organic ranking progress
- Shipping inventory too late: If your shipment arrives at FBA on November 20, it may not be received and available until after BFCM
- No FBM backup: When FBA runs out and you have no alternative, you lose sales completely
- Ignoring IPI score: Getting hit with storage limits in Q4 because you did not manage IPI in Q3 is preventable
- Using only air freight: Emergency air shipments in November cost 5x to 10x what planned ocean freight in August costs
At Marknology, we build holiday inventory plans for every client starting in July. This level of preparation is what separates brands that have record Q4s from brands that leave revenue on the table. Explore our full-service Amazon management or hear more about our approach on the Startup Hustle podcast.
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Book Your Free CallFrequently Asked Questions
When should I ship my Q4 inventory to Amazon FBA?
Ship your primary Q4 inventory to FBA by September 15. FBA receiving times extend to 2 to 6 weeks during Q4, so earlier is always better. Send replenishment by mid-October at the latest.
How do I calculate how much inventory I need for holiday season?
Take last year's Q4 daily sales, add 15% to 25% for growth, and multiply by 3x to 5x for peak weeks. Add 2 weeks of safety stock for January. Marknology uses detailed ASIN-level forecasting models for our clients.
What IPI score do I need for Q4?
An IPI score above 500 ensures no storage limits. Below 400 triggers significant restrictions. Check and improve your IPI score by July since the Q3 evaluation sets your Q4 limits.
What happens if my FBA inventory runs out during Black Friday?
Stocking out during BFCM causes immediate BSR drops, organic ranking loss, and missed revenue. Recovery takes 2 to 4 weeks minimum. Always have FBM backup fulfillment ready.
How much do Amazon storage fees increase in Q4?
Amazon storage fees roughly triple during Q4, from about $0.87 per cubic foot to $2.40 per cubic foot. Factor this into your margin calculations but do not let it prevent you from stocking adequately.
Should I use ocean freight or air freight for Q4 inventory?
Use ocean freight shipped in August or September for your main inventory. Reserve air freight only for emergency replenishment. Air freight in November costs 5x to 10x more than planned ocean freight.
Do I need a backup fulfillment plan for Q4?
Yes. Set up Fulfilled by Merchant listings or a 3PL partnership before Q4 starts. When FBA runs out or has receiving delays, backup fulfillment keeps you selling and protects your ranking.