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

Inventory shrink is the polite word for it. A pallet comes in short, a bin count doesn't reconcile, a high-velocity SKU keeps showing phantom demand. The instinct is to blame the count process — bad scan, wrong location, somebody keyed it wrong. Sometimes that's true. But when the same dock door, the same shift window, or the same product family keeps showing up in your variance report, you're probably not looking at a process problem. Warehouse fraud tends to cluster. That's