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Retail Inventory Shrinkage — What It Costs Your Business
Returns, damage, and fulfillment errors can quietly drive e-commerce inventory shrinkage The industry average for inventory shrinkage sits around 1.6% of retail sales, according to the National Retail Federation's most recent loss prevention survey. Doesn't sound like much. But run that against a $10M operation and you're looking at $160,000 walking out the door annually — in missing product, miscounted stock, vendor shorts, and internal error that nobody caught in time. Shri
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Your inventory count is off. Here's where it actually goes wrong.
One receiving error can impact inventory accuracy for weeks Your system says you have 144 units of a SKU. You walk the aisle and count 131. Somewhere between the last receiving dock scan and right now, 13 units went sideways — and the uncomfortable truth is it probably wasn't one thing. Receiving is where a lot of it starts. A pallet comes in short-shipped, the driver's in a hurry, the paperwork says the right number, and whoever's checking either trusts the BOL or rushes thr
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