Stockouts do not begin the day the inventory hits zero

By Steven Pope · September 15, 2026 · Curated by George's Blog

Stockouts do not begin the day the inventory hits zero

They begin the day you skipped placing the PO

The math on this one is simple

The inputs are where sellers lie to themselves

Lead time is not a fixed number you set once and forget

Factories slip

Freight backs up

Amazon receiving crawls during peak season

If you are still using the lead time

Your supplier quoted you last year

You are planning around fiction

Pull your actual receipt dates

From your recent shipments

And use what really happened

Not what was promised

Sales velocity is the second leak

A trailing average smooths

Over a product that is climbing

If recent weekly sales are running hotter

Than your monthly average

The trend is your real input

Build a seasonal multiplier into it before Q4

Because holiday demand does not care

About your spreadsheet

Running lean is not free either

Amazon charges a low inventory level fee

When your days of supply run thin

So a reorder point that cuts it close

can cost you money in a month

You never actually went out of stock

Check your FBA restock limits and capacity

Before you cut the PO

A container you cannot send in

Is just expensive storage somewhere else

Overstock costs you storage fees

Stockouts cost you organic rank

Review velocity

The ad budget it takes to buy back

A position you already owned

One is a line item

The other is a rebuild

Amazon inventory management

is not a warehouse chore

It is rank protection

Set the reorder date

Treat it like a deadline

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