Why Stockouts Are More Expensive Than You Think
Every time you stock out on Amazon, you lose more than just those missed sales. You lose:
- Keyword rank — Amazon demotes listings that can't fulfill orders
- Best Seller Rank — BSR tanks and takes weeks to recover
- Review momentum — competitor catches up during your gap
- The average seller loses 2–3 weeks of organic rank recovery per stockout event.
The Reorder Point Formula
Reorder point = Daily sales velocity × (FBA lead time + Safety stock days)
Example:
- Daily velocity: 8 units/day
- FBA lead time: 14 days (time from shipping to Amazon receiving)
- Safety stock: 7 days
- Reorder point = 8 × (14 + 7) = 168 units
When your FBA stock hits 168 units, it's time to send the next shipment.
Calculating Daily Sales Velocity
Use a 30-day rolling average for stable products. For seasonal products, use the same period from last year + growth rate.
In niche.ltd Inventory Manager:
- Navigate to Inventory in the dashboard
- Each tracked product shows 30-day, 7-day and 3-day velocity
- If 7-day velocity is significantly higher than 30-day, you're in a trend — adjust reorder up
Setting Safety Stock Days
Safety stock is your buffer against:
- Supplier delays
- FBA check-in slowdowns (peak seasons)
- Demand spikes
Recommended safety stock by product type:
- Stable, slow-moving products: 7–10 days
- Fast-movers or seasonal: 14–21 days
- Import-dependent products: 21–30 days
niche.ltd Inventory Urgency Tiers
| Tier | FBA days left | Action |
|---|---|---|
| Critical | ≤7 days | Reorder immediately — consider expedited shipping |
| Low | 8–14 days | Reorder now via standard shipping |
| Reorder | 15–30 days | Within reorder point — place order this week |
| Good | 31–90 days | Healthy — no action needed |
| Excess | 90+ days | Review pricing or consider removal to avoid storage fees |
Excess Inventory: The Other Side of the Problem
Over-ordering is as expensive as stockouts. Excess inventory means:
- Monthly storage fees (peak October–December: $2.40/cubic foot)
- Long-term storage fees after 365 days
- Tied-up capital
- Risk of stranded inventory if Amazon deactivates your listing
niche.ltd flags any SKU with 90+ days of supply and suggests pricing adjustments or removal.