Stockout
A stockout is when a SKU has zero sellable inventory, so demand cannot be fulfilled. Stockouts cause lost sales, backorders, and eroded customer trust, and they distort future demand signals. They are typically prevented with accurate forecasting, safety stock, and reorder points that trigger replenishment before on-hand inventory reaches zero.
How it works
A stockout occurs the moment sellable on-hand inventory for a SKU hits zero and an order can't be fulfilled. You prevent them by triggering replenishment before that point — the reorder point does exactly this:
Reorder point = (average daily sales × lead time) + safety stock
When stock falls to that level, the next purchase order fires while you still have enough to cover expected demand through the lead time.
Why it matters
Every stockout is a direct lost sale — and on Shopify it can also send shoppers to a competitor, dent your conversion rate, and corrupt demand history (zero sales looks like zero demand, not unmet demand). Tracking stockout frequency per SKU shows where your reorder points and safety stock are set too tight.
Track this automatically
Logistified calculates and monitors metrics like this across your whole Shopify catalog and turns them into reorder alerts and purchase orders.