Key takeaways<\/h2>\n\n- Record the lot and expiry at receipt, every time. Without that, FEFO, recalls and expiry write-offs are guesswork.<\/li>\n
- The expiry date governs sealed stock. The period after opening (PAO) governs testers and anything you open in the shop.<\/li>\n
- Set a minimum remaining shelf life for each channel. Online customers cannot see the date before they buy, so hold online orders to a stricter rule.<\/li>\n
- Move testers out of sellable stock the day you open them, and cost them separately from goods sold.<\/li>\n
- A gift set takes the expiry of its soonest-expiring component, and its cost is the sum of its parts plus packing.<\/li>\n<\/ul>\n<\/div>\n
What makes cosmetics inventory management different<\/h2>\n
A serum and a T-shirt are both SKUs, but the serum has a clock running. Each production run has its own lot number, its own expiry, and sometimes its own quality questions. If a supplier or your own filling line has a problem with one lot, you need to know which customers received that lot.<\/p>\n
Five things set cosmetics apart from general retail:<\/p>\n
\n- Batches.<\/strong> The same SKU sits on your shelf in two or three lots with different dates. Your count is per lot, not just per product.<\/li>\n
- Shelf life after opening.<\/strong> Once a jar is opened, a second clock starts that has nothing to do with the printed expiry.<\/li>\n
- Testers and samples.<\/strong> They leave sellable stock but are not sales, and they still cost you money.<\/li>\n
- Gift sets.<\/strong> Bundles combine products with different expiries and turn three SKUs into one.<\/li>\n
- Two channels, one shelf.<\/strong> Online orders and walk-in customers draw from the same stock, and only the shop customer can check the date before paying.<\/li>\n<\/ul>\n
The general version of these problems appears in our list of inventory management challenges and solutions<\/a>. Below is the beauty-specific version.<\/p>\nExpiry date vs period after opening: what to track where<\/h2>\n
Sealed products carry either a “best before” or expiry date, or a PAO symbol (an open jar with a number such as 6M or 12M). In the EU, labelling rules for both are set by the EU Cosmetics Regulation (EC) No 1223\/2009<\/a>. In the US, the FDA’s cosmetics pages<\/a> set out the federal position on shelf life and labelling. Check the rules for every market you sell into, especially if you export.<\/p>\nFor inventory purposes, keep the split simple:<\/p>\n
\n- Sealed stock<\/strong> is tracked by lot and expiry date in your system. Even if the pack only shows a PAO symbol, ask your manufacturer for the shelf life of the unopened product, and record a date for each lot.<\/li>\n
- Opened units<\/strong> (testers, display jars, salon backbar) are tracked by opening date and PAO. Write the opening date on the tester itself. Replace it at whichever comes first: the PAO from opening, the lot’s expiry, or any sign of contamination or separation.<\/li>\n<\/ul>\n\n
Expert tip:<\/strong> Many shops set a house rule for testers that is shorter than the printed PAO, because testers are opened by dozens of hands. Pick a number, write it into your SOP, and apply it to every tester.<\/p>\n<\/div>\nThe method: lots, FEFO and channel rules<\/h2>\n
The core of the method is FEFO, first expired, first out. When a sale is picked, the lot with the soonest expiry goes first. Our step-by-step FEFO guide for pharmacy batch and expiry tracking<\/a> covers the mechanics in depth, and they carry over to cosmetics almost unchanged.<\/p>\nOn top of FEFO, add three decision rules.<\/p>\n
Decision rules to write down<\/h3>\n\n- Minimum remaining shelf life per channel.<\/strong> Example: online and wholesale orders ship only from lots with at least 6 months left. The shop counter can sell down to 3 months, at full price, because the customer can see the date.<\/li>\n
- Markdown trigger.<\/strong> Lots with less than 3 months left move to a clearly marked discount area in the shop or a bundle offer. For ideas beyond markdowns, see creative uses for outdated inventory<\/a>.<\/li>\n
- Hard stop.<\/strong> Nothing expired is sold. Expired lots are written off at the weekly check, not when someone happens to notice.<\/li>\n<\/ul>\n
Do not buy more than you can sell in time<\/h3>\n
Bulk discounts tempt you to order a year’s supply. Cap every order with this formula:<\/p>\n
Maximum sensible order = average daily sales \u00d7 (shelf life remaining at receipt in days \u2212 minimum remaining shelf life at sale in days)<\/code><\/p>\nThe parts are average daily sales across all channels, how many days of life a lot has when it arrives (not when it was made), and the minimum remaining shelf life from your channel rule. If a lot arrives with 480 days left, you sell 7 a day, and your online rule needs 180 days left, the cap is 7 \u00d7 (480 \u2212 180) = 2,100 units. Your reorder point still drives when you order; work it out with the reorder point calculator<\/a>.<\/p>\nWorked example: one serum, three lots, two channels<\/h2>\n\nExample: a shop selling skincare online and from one counter.<\/strong> “Glow Lane” is a hypothetical brand that sells a 30 ml vitamin C serum on its own website and in its shop. The serum costs 6.00 per unit and sells for 18.00. Rules: online orders ship only from lots with at least 6 months left. The shop sells the oldest lot first, discounted to 12.00 when under 3 months remain.<\/p>\nAt the start of November, Lot A (expiry 31 Dec 2026) is under the online limit, so only the shop may sell it. During the month, 2 units of Lot A were opened as testers, 3 units of Lot B were broken in a dropped carton, and Lot C arrived.<\/p>\n
\n
What makes cosmetics inventory management different<\/h2>\n
A serum and a T-shirt are both SKUs, but the serum has a clock running. Each production run has its own lot number, its own expiry, and sometimes its own quality questions. If a supplier or your own filling line has a problem with one lot, you need to know which customers received that lot.<\/p>\n
Five things set cosmetics apart from general retail:<\/p>\n
- \n
- Batches.<\/strong> The same SKU sits on your shelf in two or three lots with different dates. Your count is per lot, not just per product.<\/li>\n
- Shelf life after opening.<\/strong> Once a jar is opened, a second clock starts that has nothing to do with the printed expiry.<\/li>\n
- Testers and samples.<\/strong> They leave sellable stock but are not sales, and they still cost you money.<\/li>\n
- Gift sets.<\/strong> Bundles combine products with different expiries and turn three SKUs into one.<\/li>\n
- Two channels, one shelf.<\/strong> Online orders and walk-in customers draw from the same stock, and only the shop customer can check the date before paying.<\/li>\n<\/ul>\n
The general version of these problems appears in our list of inventory management challenges and solutions<\/a>. Below is the beauty-specific version.<\/p>\n
Expiry date vs period after opening: what to track where<\/h2>\n
Sealed products carry either a “best before” or expiry date, or a PAO symbol (an open jar with a number such as 6M or 12M). In the EU, labelling rules for both are set by the EU Cosmetics Regulation (EC) No 1223\/2009<\/a>. In the US, the FDA’s cosmetics pages<\/a> set out the federal position on shelf life and labelling. Check the rules for every market you sell into, especially if you export.<\/p>\n
For inventory purposes, keep the split simple:<\/p>\n
- \n
- Sealed stock<\/strong> is tracked by lot and expiry date in your system. Even if the pack only shows a PAO symbol, ask your manufacturer for the shelf life of the unopened product, and record a date for each lot.<\/li>\n
- Opened units<\/strong> (testers, display jars, salon backbar) are tracked by opening date and PAO. Write the opening date on the tester itself. Replace it at whichever comes first: the PAO from opening, the lot’s expiry, or any sign of contamination or separation.<\/li>\n<\/ul>\n
\nExpert tip:<\/strong> Many shops set a house rule for testers that is shorter than the printed PAO, because testers are opened by dozens of hands. Pick a number, write it into your SOP, and apply it to every tester.<\/p>\n<\/div>\n
The method: lots, FEFO and channel rules<\/h2>\n
The core of the method is FEFO, first expired, first out. When a sale is picked, the lot with the soonest expiry goes first. Our step-by-step FEFO guide for pharmacy batch and expiry tracking<\/a> covers the mechanics in depth, and they carry over to cosmetics almost unchanged.<\/p>\n
On top of FEFO, add three decision rules.<\/p>\n
Decision rules to write down<\/h3>\n
- \n
- Minimum remaining shelf life per channel.<\/strong> Example: online and wholesale orders ship only from lots with at least 6 months left. The shop counter can sell down to 3 months, at full price, because the customer can see the date.<\/li>\n
- Markdown trigger.<\/strong> Lots with less than 3 months left move to a clearly marked discount area in the shop or a bundle offer. For ideas beyond markdowns, see creative uses for outdated inventory<\/a>.<\/li>\n
- Hard stop.<\/strong> Nothing expired is sold. Expired lots are written off at the weekly check, not when someone happens to notice.<\/li>\n<\/ul>\n
Do not buy more than you can sell in time<\/h3>\n
Bulk discounts tempt you to order a year’s supply. Cap every order with this formula:<\/p>\n
Maximum sensible order = average daily sales \u00d7 (shelf life remaining at receipt in days \u2212 minimum remaining shelf life at sale in days)<\/code><\/p>\nThe parts are average daily sales across all channels, how many days of life a lot has when it arrives (not when it was made), and the minimum remaining shelf life from your channel rule. If a lot arrives with 480 days left, you sell 7 a day, and your online rule needs 180 days left, the cap is 7 \u00d7 (480 \u2212 180) = 2,100 units. Your reorder point still drives when you order; work it out with the reorder point calculator<\/a>.<\/p>\n
Worked example: one serum, three lots, two channels<\/h2>\n
\nExample: a shop selling skincare online and from one counter.<\/strong> “Glow Lane” is a hypothetical brand that sells a 30 ml vitamin C serum on its own website and in its shop. The serum costs 6.00 per unit and sells for 18.00. Rules: online orders ship only from lots with at least 6 months left. The shop sells the oldest lot first, discounted to 12.00 when under 3 months remain.<\/p>\n
At the start of November, Lot A (expiry 31 Dec 2026) is under the online limit, so only the shop may sell it. During the month, 2 units of Lot A were opened as testers, 3 units of Lot B were broken in a dropped carton, and Lot C arrived.<\/p>\n
\n - Markdown trigger.<\/strong> Lots with less than 3 months left move to a clearly marked discount area in the shop or a bundle offer. For ideas beyond markdowns, see creative uses for outdated inventory<\/a>.<\/li>\n
- Opened units<\/strong> (testers, display jars, salon backbar) are tracked by opening date and PAO. Write the opening date on the tester itself. Replace it at whichever comes first: the PAO from opening, the lot’s expiry, or any sign of contamination or separation.<\/li>\n<\/ul>\n
- Shelf life after opening.<\/strong> Once a jar is opened, a second clock starts that has nothing to do with the printed expiry.<\/li>\n
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