What this calculator tells you
A reorder point is the inventory level that should trigger a new purchase order. It gives the supplier lead time and demand variability room before stock runs out.
When to use it
Use it when a product has a stable sales pattern and you need a simple order trigger rather than a full inventory system.
Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.
Using only supplier lead time can leave no buffer for a spike in demand or a late shipment.
Frequently asked questions
What is safety stock?
Safety stock is extra inventory held to absorb demand spikes and lead-time delays. It is usually chosen from historical variability.
Should I use units or revenue?
This calculator uses units, because reorder points are usually managed at the SKU level.
Does this work for seasonal products?
Treat it as a starting point. Seasonal products need separate demand assumptions for each season or launch window.
Related calculators
Ecommerce Profit Margin Calculator
Calculate net profit and margin after product cost, shipping, fees, and advertising.
Break-Even ROAS Calculator
Find the return on ad spend required to cover product costs and fulfillment before profit.
Product Pricing Calculator
Set a selling price from landed cost, target margin, platform fees, and shipping.