Inventory questionwhen should I reorder inventory

When should I reorder inventory?

You should reorder inventory when projected days of supply will fall below your lead time plus safety stock buffer. In practice, use the reorder point calculator at /calculators/reorder-point-calculator and your supplier lead times to trigger purchase orders a full lead time before you run out.

$1.14T lost to stockouts yearlyIHL Group

Overview

Reordering too late causes stockouts and lost sales; reordering too early ties up cash and warehouse space. Most ecommerce brands target a 95% in-stock rate, which maps to the standard safety stock service level benchmark used in operations planning. Timing reorders based on real demand, lead time, and safety stock is more reliable than gut feel or calendar-based ordering.

Anchor reorder timing to reorder point

Instead of reordering when you “feel low”, use the reorder point formula and calculator at /calculators/reorder-point-calculator to decide exactly when to place a PO. Reorder when your projected on-hand quantity is due to cross that threshold, not when the bin looks empty or at arbitrary 30-day intervals.

Match days of supply to lead time

Pull your average daily sales per SKU from Shopify Analytics → Sales by product and compare it to supplier lead time so you always hold at least one full lead time of stock. If overseas lead times vary by around 20–30%, build that variance into your reorder trigger instead of assuming a fixed number of days.

Protect service levels with safety stock

If you aim for the common 95% in-stock service level benchmark, use the safety stock formula in /calculators/safety-stock-calculator rather than guessing. Reorder when your projected stock will fall into the safety stock band, not after you have already dipped below it and joined the brands contributing to $1.14 trillion in stockout losses each year.

Plan reorders before Stocky is discontinued

Stocky, Shopify's native inventory planning app, is being discontinued on August 31, 2026, and Shopify is not replacing its purchase order automation or min/max logic. If you currently rely on Stocky to tell you when to reorder, you need a third-party inventory planning app like Synplex in place well before that date to keep automated reorder recommendations live.

Worked examples

DTC supplements brand with 20-day lead time and seasonal spikes

  • Average daily sales: 30 units
  • Supplier lead time: 20 days
  • Safety stock (from calculator): 200 units
  1. 1. Use Shopify Analytics → Sales by product to confirm 30 units per day.
  2. 2. Multiply 30 units by 20 days of lead time to get 600 units of cycle stock.
  3. 3. Add 200 units of safety stock from /calculators/safety-stock-calculator for a 800-unit reorder point.

Result: You should reorder when projected on-hand falls to 800 units so the new PO arrives before you sell through your safety stock.

This approach ties reorder timing directly to demand and lead time instead of arbitrary dates, reducing both stockouts and bloated on-hand inventory.

How to apply this in Shopify

  • Use Shopify Analytics → Sales by product to pull 30, 60, and 90-day average daily sales per SKU before setting reorder points.

  • In Admin → Products → Inventory, filter by low on-hand and compare to your calculated reorder point to see which SKUs need POs this week.

  • Set Admin → Settings → Notifications → Low stock alerts to trigger when inventory is projected to cross your reorder point, not just when it reaches zero.

  • Turn on the Product variant → Track quantity toggle for all replenishable SKUs so Shopify can surface accurate on-hand and committed quantities.

  • Use Admin → Purchase orders to record each PO’s expected arrival date, then reconcile when stock arrives so your projected days of supply stay accurate.

Common mistakes

Reordering on fixed calendar dates

Placing POs every month or quarter regardless of demand causes overstock in slow months and stockouts in peak weeks.

Fix: Switch to a reorder point trigger using the calculator at /calculators/reorder-point-calculator aligned with actual sales velocity and supplier lead times.

Ignoring lead time variability

Assuming a fixed 20-day lead time when overseas suppliers actually vary by around 20–30% leads to late arrivals and stockouts.

Fix: Use the guidance in /guides/supplier-lead-time-guide-shopify to factor variance into your reorder timing and safety stock.

Relying on Stocky until the cutoff date

Waiting until August 31, 2026, to replace Stocky risks a gap in reorder recommendations and PO automation.

Fix: Plan your migration to Synplex or another planner now so you can run both systems in parallel and validate reorder timing before Stocky is retired.

Treating all SKUs with the same trigger

Using one blanket reorder rule for A, B, and C items ignores that high-velocity SKUs need tighter control than long-tail products.

Fix: Use Shopify Analytics → Reports → Inventory to run an ABC-style analysis and set more conservative reorder points for A items.

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