What is a reorder point?
November 12, 2026
A reorder point is the stock level at which you should place a new purchase order, so new stock arrives before you run out. It is based on how fast the item sells, how long the supplier takes to deliver, and how much safety stock you want to keep.
Formula
Reorder point = average daily sales × lead time (days) + safety stock
Why it matters for online retailers
Reorder too late and you go out of stock, lose sales and may have to take backorders. Reorder too early and cash sits on the shelf. A reorder point for each SKU turns reordering into a routine check instead of a guess.
Worked example
You sell 20 units a day, the supplier takes 14 days to deliver, and you keep 60 units of safety stock. The reorder point is 20 × 14 + 60 = 340 units. When stock drops to 340, place the order.
What changes your reorder point
- Sales speeding up or slowing down, including seasonal peaks.
- Supplier lead times getting longer or less reliable.
- A supplier's minimum order quantity.
- How much risk of running out you are prepared to accept.
Reorder point vs reorder quantity
The reorder point tells you when to order. The reorder quantity tells you how much to order, which is often set by the supplier's MOQ, pack sizes or how many weeks of stock you want to hold.
How StoreFeeder handles it
StoreFeeder records supplier lead times and minimum order quantities, and uses sales history in stock forecasting to suggest what to reorder and when. Basic forecasting is included in every plan; advanced forecasting is part of the Advanced Operations Pro add-on.
Read more about StoreFeeder inventory and stock forecasting.
Frequently asked questions
How do you calculate a reorder point?
Multiply average daily sales by the supplier's lead time in days, then add your safety stock.
What is safety stock?
Extra stock kept to cover sales spikes or late deliveries, so you don't run out while waiting for a reorder to arrive.
How often should I review reorder points?
At least every season, and whenever sales or supplier lead times change noticeably.
