FloPlanner · Guides

The reorder point, for Shopify brands buying from overseas

A reorder point is the stock level at which you place the next order. With overseas suppliers it needs to cover the whole lead time.

The formula

Reorder point = expected sales during the lead time + reserve stock.

Example: a product sells about 40 a week, the supplier takes 10 weeks, and you keep a 4-week reserve. Reorder point = 40 × 10 + 40 × 4 = 560 units. When stock on hand plus anything already on order falls to 560, it's time to order.

Count what's already on order

Compare the reorder point with stock on hand plus open orders not yet received. Otherwise you'll order twice.

Where a single number falls short

A fixed reorder point assumes steady sales. With seasonal peaks, promotions or a growing range, the right level changes week to week. A weekly forecast rolled forward shows the order date directly, instead of waiting for stock to cross a line.

Shopify's own tools

Shopify tracks stock levels, but setting order dates against long lead times is usually done outside it, in a spreadsheet or a planning app.

FloPlanner suggests order dates and quantities for every product, for you to review: reorder planning.