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Keeping a healthy level of inventory is a huge factor in business success. Of course, it takes experience to do it right. However, you can get better at it faster if you know a few core things. Let’s talk about determining these inventory levels.

Determining inventory levels

Determining inventory levels

There are several things to consider when determining inventory levels. Let’s outline the main ones:

  • Lead times. That’s the amount of time it takes for your supplier to bring goods to you after placing an order. You should account for these times whenever determining the correct inventory levels to restock. For example, if you sell 10 units per week and it takes a week to arrive, you should order more once your stock drops to 10. As a merchant, you can kind of control the lead times. You might want to check this article about reducing lead times.
  • Safety stock. This is basically how much you’re willing to keep as dead stock in case of unexpected demand spikes or mishaps. Such as when your supplies are late.
  • Reports. The most basic way to predict how much of a product you’ll need is to analyze your sales reports. This is the most primitive way, which is inefficient, but much, much better than a blind guess.
  • Sales forecasting. If your goal is to become a pro at keeping the right amount of inventory, you’ll have to look into sales forecasting. This topic deserves an article of its own, as it is quite complex. It involves many variables as well as ways to get better at it. If you’re up for it, head onto the article written by the author of this quote.

Sales forecasting is a basic business management concept that is not normally taken into account for online shops, but that can offer competitive advantages when used carefully. - Cova Díaz

Determining inventory levels on shopping holidays

Determining inventory levels on shopping holidays

Recently we’ve released an article about preparing for Amazon Prime day as a merchant. If you’re planning to participate in shopping events like Black Friday, Cyber Monday, Christmas or Halloween as a seller, it’s certainly a worthwhile read. It’ll also help you determine inventory levels for these occasions.

It’s easier with software

It’s easier with software

Determining inventory levels is easier with inventory management software, like Multiorders. Features, like reports, will help you keep a healthy level of stock. Also, whenever you drop below a set level on a product, you’ll get a notification.

If you’re not already using inventory management software, we strongly recommend you look into it. We suggest trying Multiorders, as it is incredibly easy to use. Also, all the features are available to all users. This means you’ll have access to the same tools the top businesses use to streamline their workflow. Also, the price is much better than any competitor can offer.




Goda Jurgaityte
Goda Jurgaityte |

Senior Copywriter at Multiorders. Goda is a writer, marketer and lead of the e-commerce blog for ambitious entrepreneurs. Being on top of e-commerce news allows her to teach you how to grow an audience, manage your store or start an online business. The best business advice has inspired hundreds of small business owners, and some of the biggest brands in commerce, to start and grow their business.