For fast-scaling ecommerce brands with perishable products (this is especially true in the wellness, beauty, food, pharmaceutical, and supplements industries), effective inventory management is more than a matter of efficiency—it’s a matter of customer trust, product safety, and long-term profitability.
With products that come with expiration dates, the stakes are even higher. Mismanaged stock can lead to waste, regulatory issues, and damage to brand reputation.
Below are best practices to help you stay ahead of the curve when managing inventory with expiration dates.
Ways to Reduce Waste and Maximize Profit with Smart Expiration Date Management
1. Implement a First-Expire, First-Out (FEFO) System
Unlike traditional First-In, First-Out (FIFO) systems, FEFO prioritizes products based on expiration rather than arrival date. This ensures that items with the earliest expiration dates are sold and shipped first, reducing the risk of expired goods ending up in a customer’s hands or in your warehouse waste bin. FEFO is particularly crucial in supplements, skincare, and consumables, where product potency and safety are directly tied to shelf life.
2. Leverage Technology for Real-Time Visibility
Manual tracking of expiration dates is unsustainable in a high-growth environment. Instead, use inventory management software with expiration date tracking features.
The right tools will enable:
- Automate notifications for approaching expirations.
- Monitor batch and lot numbers.
- Integrate multiple fulfillment nodes or distribution centers for seamless execution.
Easily track expiry dates for both inbound and outbound lots of products.
Ensuring quality control within your inventory management system is only part of the solution. Automation tools at the verify station and throughout the fulfillment process are imperative to ensure your perishable goods get to your customers correctly. Automated systems allow you to make proactive decisions based on manufacturing timelines, consumer habits, and business needs, instead of reactive ones that lead to issues.
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3. Optimize Demand Forecasting
Accurate demand forecasting helps balance stock levels to avoid both shortages and overstocking. Leverage historical sales data, seasonality, and marketing campaigns to anticipate demand. For wellness and beauty brands, consider product launch cycles and promotional periods (e.g., holidays, New Year resolutions) that can cause demand spikes. Aligning forecasting with expiration tracking reduces the risk of excess stock expiring before it sells.
4. Design Promotions to Move Expiring Inventory
When certain batches approach expiration, well-timed promotions can help move stock quickly while protecting margins. Options include:
- Limited-time discounts.
- Bundling near-expiry items with popular products.
- Subscription box add-ons.
These strategies help clear inventory but can also introduce customers to new products, increasing lifetime value and retention.
Be sure you’re aligned with your fulfillment provider to enable a smooth experience with these value-adds. Packaging is a consideration, as well as the time and resources to kit your products. Modern 3PLs will offer virtual bundling to allow you to A/B test your bundles and eliminate the need for pre-kitting.
5. Train Your Team on Expiration Protocols
Even the best systems fail without proper execution. Train warehouse staff, fulfillment partners, and customer service teams to follow expiration date protocols. This includes accurate product picking, clear lot tracking, and escalation processes for short-dated inventory.
6. Maintain Transparent Supplier Relationships
Work closely with suppliers to understand shelf life at the time of delivery. Ensure agreements specify minimum remaining shelf life upon receipt, reducing the risk of inheriting short-dated stock. Strong supplier relationships also provide flexibility in adjusting orders or returning unsellable goods.
7. Regularly Audit Inventory
Routine inventory audits help validate system data, uncover discrepancies, and maintain accountability. Spot checks on expiration dates keep your team aligned with FEFO processes and ensure your customers always receive fresh, safe, and effective products.
What is Expiration Date Management?
Expiration date management is the process of tracking, organizing, and controlling inventory based on product shelf life to ensure items are sold or used before they expire. Particularly for ecommerce brands in wellness, beauty, food, and supplements business, it involves monitoring batch and lot numbers across the supply chain, applying systems like First-In, First-Out (FIFO), or First-Expired, First Out (FEFO), and using technology to automate alerts.
Having a modern warehouse management system (WMS) is key to keeping consistency across teams, and fulfillment nodes. Effective expiration date management reduces waste, ensures product safety and potency, maintains compliance, and builds customer trust by guaranteeing that shoppers always receive fresh, high-quality products.
Bottom Line
No brand wants expired products on their hands. Rigorous inventory control is the key to optimizing your supply chain when you need to track expiration dates.
For high-growth ecommerce brands in the wellness, beauty, and supplement markets, managing inventory with expiration dates is not just operational housekeeping—it’s a competitive advantage. By implementing FEFO systems, leveraging technology, forecasting demand, and creating processes that minimize waste, brands can protect margins, delight customers, and scale responsibly.
This post was written by Maureen Walsh, Marketing Director at DCL Logistics. A writer and blogging specialist for 20 years, she helps create quality resources for ecommerce brands looking to optimize their business.
Tags: Articles About Value Added Services, Omnichannel Fulfillment
