What is a reorder point?

A reorder point is the stock level at which you should place a new order with your supplier so the product doesn't run out before it arrives.

How to calculate it

The standard formula is:

Reorder point = average daily sales × lead time in days + safety stock

Average daily sales covers what you'll sell while you wait for the delivery. Safety stock is a buffer for slow deliveries or a busy week.

WooCommerce doesn't calculate reorder points for you. You can get the daily sales rate from Analytics › Products: take Items sold over the last 30 or 60 days and divide by the number of days. Many stores then use the result as the product's low-stock threshold on its Inventory tab, so WooCommerce's low-stock email arrives when it's time to reorder. You can also try the reorder point calculator.

A worked example

Say a candle sells 120 units in 30 days, so 4 a day. Your supplier takes 14 days to deliver, and you keep 20 extra as safety stock.

• Reorder point: 4 × 14 + 20 = 76 units

When stock falls to 76, you order. By the time the delivery lands, you should have about 20 left.

Why it matters

Without a reorder point, people tend to reorder when they notice a product is low, which is often too late for slow suppliers. Recheck the number when sales pick up or a supplier gets slower. The guide on setting reorder points for WooCommerce products goes step by step, and getting a low-stock report shows how to act on it.