If an e-commerce brand is thinking about simplifying its merchandise mix, the latest results from Lowe’s offer a strong lesson. The home-improvement retailer is aiming to cut 15% of its SKUs by the end of 2025, and early results show why that strategy matters. By reducing underperforming and low-demand products, Lowe’s reported a roughly $400 million drop in inventory along with a noticeable lift in gross margin in its third-quarter 2025 earnings.
This action is shifting focus toward better planning, allocation, and replenishment of the items that actually drive sales. For smaller online stores, the takeaway is clear: a leaner catalog often leads to smarter operations. When a business concentrates on top sellers, it reduces carrying costs, cuts the risk of dead stock, and improves the accuracy of demand forecasting because there’s less noise in the product data.
For an e-commerce seller, the lesson is to routinely review product performance, identify slow movers, and be willing to retire them, even if they feel familiar or “nice to have.” Pairing SKU cuts with more thoughtful inventory planning can free up cash, create operational clarity, and strengthen margins. Sometimes, fewer products can build a stronger business.
The U.S. Postal Service (USPS) is signaling a major shift in 2026 as it leans further into competitive package delivery, a trend with clear implications for e-commerce brands. In a report by Supply Chain Dive, USPS projects that revenue from its shipping and package services, including Ground Advantage and Parcel Select, will grow by nearly 10% year over year. That increase is significant enough to help lift overall USPS revenue by almost 3%, despite expected declines in other parts of its business.
The strongest growth is tied to domestic parcels, where retailers continue to rely on fast, affordable last-mile delivery. While that side of the business expands, USPS expects steep declines in international mail and package revenue, with inbound deliveries projected to drop more than 50%. The contrast highlights USPS’s strategy: focus on core U.S. e-commerce demand and streamline around domestic delivery strengths.
For online sellers, this points to a bigger role for USPS as a cost-effective carrier, particularly for lightweight and mid-weight packages. As the agency expands its parcel-focused services, small and midsize e-commerce brands may benefit from improved shipping options, competitive pricing, and more predictable delivery performance heading into 2026.