Extra inventory kept on hand to protect against demand variability, supply delays, and unexpected stockouts.
TL;DR The reorder point formula tells you exactly when to place your next purchase order so inventory arrives before you stock out. The formula: (Average Daily Sales × Lead Time in Days) + Safety Stock. For most Amazon FBA sellers, the tricky part is getting accurate inputs, especially lead time, which needs to include FBA […]
You’ve done everything right. Your supplier shipped on time, your freight forwarder hit the delivery window, and Amazon checked in your inventory without delays. Then out of nowhere, demand on your best-selling ASIN doubles for two weeks. Maybe a competitor went out of stock. Maybe an influencer mentioned your product. Doesn’t matter. You’re out of […]