Top-down flat-lay showing channel-by-channel Q4 demand with two warehouses mapped on a US map connected by a distribution line

Peak Season Inventory Strategy

Splitting Black Friday Inventory Coast to Coast.

Build the peak-season allocation SKU by SKU, not as a 50/50 guess — so each warehouse holds the inventory its orders actually pull.

By Phill Civitella, CEOOct 29, 20269 min read
Written by Phill Civitella · Last updated October 29, 2026
Tags · Peak Season · Inventory Strategy

Peak inventory is on its way, and you have two warehouses to fill, one on each coast. Someone has to decide how many units of each SKU go where, and the easiest answer is half and half. It feels balanced. It also tends to leave one coast short by mid-December.

A better peak split is decided SKU by SKU, based on where your orders actually ship. Map last year's Q4 orders and your recent orders to the closest warehouse, split only products that sell steadily on both coasts, and give each warehouse its own safety stock. We work through exactly this process for brands running bi-coastal fulfillment every peak season.

This hands-on Q4 playbook covers:

In this guide

  • Why 50/50 rarely matches demand
  • Mapping order destinations
  • Choosing which SKUs to split
  • Setting ratios and safety stock
  • Handling a sellout on one coast
  • Deciding on mid-season transfers

Why does a 50/50 inventory split usually misallocate peak stock?

A 50/50 split assumes customers are spread evenly across the country, and very few brands' customers are. Demand clusters where people live, where your ads run, and where the brand got its start, so one coast usually carries more orders.

The common mistake is splitting on full-year averages. Gift orders often ship to different regions than everyday orders, and a holiday promo on one channel can pull demand toward one coast. Last year's Q4 usually predicts this year's Q4 better than your annual numbers do, which is why the split starts with last Q4's orders. If you haven't pulled that data together yet, our 2025 peak data breakdown is a good place to start.

How do you map order destinations to each warehouse?

Export the last 90 days of orders plus last year's October through December, with ship-to state or ZIP and units per SKU. Assign each destination to the warehouse with the lower shipping zone for that address. A shipping zone is the carrier's distance band between origin and destination that drives ground rates and transit times — UPS publishes a definition of shipping zones that most carriers follow.

While you build it:

  • Count units shipped, not customers. A buyer placing three supplement orders counts as one customer but three units of demand.
  • Use ship-to addresses, since gift orders don't ship to the buyer. A holiday gift set's destination state is the one that matters for split.
  • Flag central states where both warehouses land in similar zones. Those states are the easiest to assign slightly off and the hardest to catch later.

Those central states are the easiest to get wrong. Defaulting them to one side can skew the whole split, so compare transit times from both warehouses and assign each state to the faster one. The result is a demand share per coast, and the next question is which products should follow it.

Which SKUs should you split between two warehouses?

Split fast movers and keep slow movers in one warehouse. A product selling a few units a day leaves both buildings with thin stock when split, so each sells out sooner than one pooled supply would.

Sales velocity
Steady daily volume on both coasts
Slow or sporadic sales
Where demand sits
Meaningful orders on both coasts
Mostly one region
Kits and bundles
Every component split with it
Components can't be stocked in both
Lot or expiration tracking
Manageable at both sites
Short-dated or tightly controlled lots

Bundles are easy to miss. A holiday gift set needs every component in the same building, so split its parts together or not at all. (We cover this in more depth in our gift-set kitting timeline if bundles are a meaningful share of your Q4 catalog.) With the split list set, you can put numbers on it.

How do allocation ratios and per-warehouse safety stock work?

Each split SKU gets its own East/West ratio from your Step 1 data, plus safety stock in each warehouse. Here's an illustrative example for a supplement brand's top 10 SKUs, using a flat 20% buffer per warehouse as a simple starting point:

SKUPeak forecast (Nov–Dec units)East / West splitEast units (incl. buffer)West units (incl. buffer)
Magnesium Glycinate4,00065 / 353,1201,680
Daily Multivitamin3,50060 / 402,5201,680
Collagen Peptides3,00055 / 451,9801,620
Vitamin D3 + K22,50070 / 302,100900
Electrolyte Stick Packs2,20050 / 501,3201,320
Ashwagandha1,50062 / 381,116684
Holiday Wellness Bundle1,20065 / 35936504
Omega-3 Fish Oil90060 / 40648432
Elderberry Gummies400East only4800
Sleep Gummies Sampler250East only3000
Total19,45014,5208,820

Illustrative figures, not client data. Your buffer should come from your own demand swings and restock lead time.

The electrolyte packs are the one SKU where 50/50 is right, and only because the data says so.

Look at the totals, though: 3,890 units of buffer across both warehouses, the same amount one building would hold at 20%. That's where flat percentages mislead.

In one building, a slow week on one coast offsets a spike on the other. Split the stock and each warehouse has to absorb its own spikes, so a split usually needs more total buffer than one building would. Treat the flat percentage as a floor, and expect one coast to run out of something first anyway. (If you haven't built your base forecast yet, our SKU forecasting playbook covers that step before you get to the split.)

What happens when one warehouse sells out first?

When one warehouse runs out of a SKU, orders for it can route to the other warehouse. The order still ships, but it crosses more zones, so it costs more and arrives later.

Planning ahead means:

  • Confirm your order routing falls back to the other warehouse automatically. If it doesn't, the order stalls until someone reassigns it manually.
  • Set reorder triggers per warehouse, not just for total stock. A pull of 400 units from one coast triggers a transfer even if total inventory looks fine.
  • Adjust site delivery estimates when fallback routing kicks in. An order shipping from across the country spends more days in transit, so the last day to order for Christmas comes sooner.

Holiday shipping cutoffs need extra attention here. An order shipping from across the country spends more days in transit, so the last day to order for Christmas delivery comes sooner. If your site's delivery dates don't account for that, some gifts will arrive late.

And if orders keep shipping from the far warehouse for weeks, it may be time to move stock.

When is a mid-season inventory transfer worth it?

A transfer pays off when the extra shipping cost of fallback orders for the rest of the season exceeds the cost of moving the stock, and the stock can arrive while demand is still there.

For the rough math, estimate how many orders you'll keep shipping from the far warehouse, multiply by the extra cost per order, and compare that to transfer freight plus receiving fees. Timing matters too — cross-country freight takes days to arrive and get received, the same lag you'd plan around as when creating and processing a transfer between any two warehouse locations. Transfers tend not to pay off:

  • When the stock would land after December demand drops.
  • When the quantity is too small for the savings to cover freight.
  • When the receiving warehouse has a peak receiving backlog.

Each of those decisions is easier when you can see both warehouses' stock in real time. Our Glasshouse inventory platform surfaces both buildings in one view so fallback and transfer decisions run on live numbers instead of last week's spreadsheet.

Peak allocation should be decided SKU by SKU

Your order data already knows where your customers are. A split built from that data will beat a 50/50 guess every time.

Running it is the harder part: two inventory pools, two sets of reorder triggers, fallback routing, and transfer calls, all during the busiest weeks of the year. That's the work Nice Fulfillment takes on. Our Charleston and Salt Lake City warehouses route each order to the closest location automatically, with real-time inventory visible across both through Glasshouse, so fallback and transfer decisions run on live numbers instead of last week's spreadsheet.

If you're setting your split now, we offer a free inventory allocation review. Send us your recent and last-Q4 order data, and we'll map where your peak stock should go.

See also: inventory management for 3PL-managed brands, health and supplement fulfillment, and the BFCM order automation playbook.

Frequently asked

The questions that come up when a brand is splitting inventory across two warehouses before Black Friday.

How early should inventory arrive at a second warehouse before Black Friday?
Early enough to be received, counted, and sellable before your first promo goes live. Warehouses often see receiving backlogs in November, so check your 3PL's peak receiving cutoff and work backward, leaving room for freight delays.
Should Amazon FBA orders count when you split inventory between two warehouses?
No. Only count orders your own warehouses will ship. FBA orders ship from Amazon's fulfillment network, so including them can skew your split. Seller-fulfilled orders from your own site, TikTok Shop, or Amazon FBM do belong in the data.
How do you split inventory without last year's Q4 data?
Use your last 90 days of orders by ship-to location, then adjust for channels or campaigns planned for peak. Lean slightly toward the warehouse serving your larger region, and review sell-through early so you can rebalance if needed.

About the author

Phill Civitella

CEO, Nice Fulfillment

Phill is CEO of Nice Fulfillment, a 3PL and DTC fulfillment partner with hubs in Charleston, SC and Salt Lake City, UT. He started in the warehouse, ran operations at a QVC fulfillment partner, and took over Nice Fulfillment in 2023 to lead its turnaround and growth. He's also built and run his own DTC brand, so he writes about fulfillment from both sides of the table. Reach him at phill@nicefulfillment.co.

Ready to map your Black Friday split before the season starts?

Send us your recent and last-Q4 order data and we'll map where your peak stock should go — SKU by SKU, with the reorder triggers and fallback plan you'd need on each coast. No commitment required.

Talk to our team