Inventory guides for Shopify stores

Formulas and methods for deciding what to reorder, how much, and when. Worked examples use made-up numbers so you can follow the arithmetic; plug in your own.

Forecasting demand

• Shopify demand forecasting: methods, formulas and a workflow

  Estimate units per SKU with moving averages, exponential smoothing and seasonal indexes, then turn the forecast into a reorder point for Shopify.

• How to improve inventory forecasting accuracy on Shopify

  Measure forecast error with WMAPE and bias, clean your sales history, match methods to each SKU and set safety stock from your error. Includes examples.

• Shopify Sales Velocity: How to Calculate and Track It

  Learn how to calculate sales velocity per variant, adjust for days out of stock, smooth noisy numbers and turn velocity into reorder points on Shopify.

• Seasonal Inventory Planning for Shopify

  Build seasonal indexes, set reorder points by season, plan purchases backward from the peak and manage end-of-season leftovers, with worked examples.

Reorder points and safety stock

• Reorder Point Formula: How to Calculate When to Reorder

  Learn the reorder point formula, how to estimate demand, lead time and safety stock, and how to set low-stock alerts, with a hypothetical worked example.

• Safety Stock Formula: Three Ways to Calculate Your Buffer

  Learn three safety stock formulas, from max-minus-average to service-level and combined variability, with worked examples using hypothetical numbers.

• Economic Order Quantity (EOQ) Formula: How to Size Your Orders

  Learn the EOQ formula, how to estimate ordering and holding costs, and where the model breaks down, with a worked example using hypothetical numbers.

• How to prevent stockouts on Shopify

  Prevent stockouts with reorder points, safety stock, supplier tracking and a weekly routine. Formulas and worked examples for Shopify stores.

Inventory health and costs

• Inventory carrying cost formula

  Calculate inventory carrying cost with the formula, its four cost groups and worked examples with made-up numbers, then see ways to cut it, including JIT.

• Inventory turnover ratio

  Get the inventory turnover ratio formula, a worked example with hypothetical numbers, how to judge your result and practical ways to improve it.

• ABC analysis for ecommerce inventory

  Run an ABC analysis on your SKUs: choose a value measure, calculate cumulative shares, assign A, B and C classes and set a policy for each class.

• Dead Stock Management on Shopify: How to Find, Clear and Prevent It

  Learn how to find dead stock in your Shopify store, work out what it costs to hold, clear it with markdowns and bundles, and avoid buying more of it.

• Inventory Shrinkage on Shopify: How to Measure, Audit and Reduce It

  Learn how to calculate inventory shrinkage, run a count-based audit on your Shopify store and fix process gaps that put records out of step with stock.

• 12 Shopify Inventory KPIs to Track, With Formulas and Worked Examples

  Learn 12 inventory KPIs for Shopify stores, including turnover, GMROI and stockout rate, each with a formula, a hypothetical example and how to act on it.

Purchasing and operations

• Shopify Purchase Order Management

  A practical guide to purchase orders: what to include, the six PO stages, sizing orders with reorder point and EOQ, supplier metrics and a 30-day plan.

• Shopify Backorder Management

  Decide which products to backorder, set expectations before checkout, estimate the cost per backorder and prevent repeats, with customer message templates.

• Shopify Multi-Location Inventory Management

  Plan locations, set reorder points per location, size transfers and audit a multi-location Shopify setup, with formulas and hypothetical worked examples.

• Shopify Inventory Management for Food and Beverage

  Plan perishable stock on Shopify: track lots and expiry dates, cap order size by shelf life, set reorder points and find units at risk of expiring.