How to Know When to Reorder Products in WooCommerce: A Beginner’s Guide
Running an online store with WooCommerce is exciting, but it also comes with its own set of challenges. One of the biggest is knowing when to reorder products. Running out of stock can lead to lost sales, frustrated customers, and a damaged reputation. But overstocking ties up capital and can lead to losses if products become obsolete or go out of season. This guide will walk you through the basics of determining the right time to replenish your WooCommerce inventory, even if you’re a complete newbie.
Why is Reordering at the Right Time So Important?
Think of your store as a well-oiled machine. Each product you sell is a cog in that machine. If you run out of a popular product (a key cog), the whole machine grinds to a halt. Here’s why accurate reordering is crucial:
- Prevents Lost Sales: Obvious, right? If a customer wants to buy something and you don’t have it, they’ll likely go elsewhere. Imagine a customer wanting to buy a trendy “DIY Macrame Plant Hanger Kit” from your store, and you’re out of stock. They’ll search for it on Google and probably buy from your competitor. That’s a sale lost forever!
- Maintains Customer Satisfaction: Happy customers come back. Frustrated customers… well, you get the picture. Being consistently out of stock makes you look unreliable. Think about it from their perspective: constantly seeing “Out of Stock” on your product pages is annoying.
- Optimizes Cash Flow: Inventory is money. Having too much ties up your cash that could be used for marketing, development, or other vital aspects of your business. Having too little means missed sales and potentially expedited shipping costs to quickly restock.
- Avoids Storage Issues & Waste: If you sell perishable goods (like handmade soaps or bath bombs) or fashion items that follow seasonal trends, overstocking can lead to spoilage or unsold inventory that you have to discount heavily (eating into your profits).
- Lead Time: How long does it take for your supplier to deliver the goods? This is *crucial*. If it takes 4 weeks for your supplier to deliver, you need to reorder long before you actually run out. Call your suppliers and get accurate lead times.
- Sales Velocity: How quickly are you selling a particular product? High-velocity products need more frequent reordering than slow-moving ones. WooCommerce’s built-in reporting tools can help you track this (more on that below).
- Safety Stock: A buffer of inventory to protect against unexpected surges in demand or delays in delivery. This is your “just in case” stash. The higher the potential for demand spikes or supply chain issues, the larger your safety stock should be. Think about unexpected viral social media posts that drive traffic to your product – that’s where safety stock comes in.
- Minimum Order Quantity (MOQ): Many suppliers require you to order a minimum quantity of each product. This will impact how much you order at a time.
- Seasonal Demand: Do you sell products that are popular only during certain times of the year (e.g., Christmas ornaments, swimwear)? Factor seasonal fluctuations into your calculations.
- Enable Stock Management: Go to WooCommerce > Settings > Products > Inventory. Enable “Manage stock?”
- Product Level Settings: When creating or editing a product, go to the “Inventory” tab. Here, you can:
- Enter the “Stock quantity.”
- Set the “Low stock threshold.” You’ll receive an email notification when stock falls below this level.
- Choose whether to “Allow backorders?” (Proceed with caution! Backorders can frustrate customers if not managed properly.)
- Sales by Product: Go to WooCommerce > Reports > Sales > Sales by product. This shows you which products are selling the fastest. Use this data to predict future demand and adjust your reordering accordingly.
- Stock Report: WooCommerce > Reports > Stock. This gives you a real-time overview of your stock levels. Pay close attention to products below the “low stock threshold.”
- Daily Sales: Average number of units sold per day (estimate based on historical data).
- Lead Time: Time (in days) it takes for your supplier to deliver the goods.
- Safety Stock: The amount of stock you want to keep in reserve.
- Automated Reordering: The plugin can automatically generate purchase orders when stock levels reach a pre-defined point.
- Supplier Management: Track supplier lead times, prices, and contact information.
- Demand Forecasting: Use historical sales data to predict future demand.
- Integration with Accounting Software: Streamline your bookkeeping.
- Katana MRP
- Smart Inventory Management
- ATUM Inventory Management
- Product Name
- SKU
- Supplier
- Lead Time
- Daily Sales
- Safety Stock
- Reorder Point
- Current Stock Level
- Product: “Lavender Bliss” Candle
- Supplier: Local Artisan
- Lead Time: 7 days
- Average Daily Sales: 3 candles
- Safety Stock: 10 candles
- Regularly Monitor Stock Levels: Don’t just set it and forget it. Check your stock levels regularly, especially for popular products. A weekly review is a good starting point.
- Review Your Data: Don’t be afraid to adjust your safety stock, lead times, and sales velocity estimates based on real-world data.
- Communicate with Your Suppliers: Keep in close contact with your suppliers to stay informed about potential delays or changes in their production capacity.
- Start Small and Iterate: Don’t try to implement a complex inventory management system overnight. Start with the basics and gradually add more features as your business grows.
- Don’t Be Afraid to Experiment: Every business is different. What works for one store might not work for another. Experiment with different reordering strategies to find what works best for you.
Key Factors to Consider When Reordering
Before we dive into tools and techniques, let’s understand the fundamental factors that influence your reordering strategy:
Tools & Techniques for Effective Reordering in WooCommerce
Now, let’s get practical. Here are some tools and techniques you can use to determine when to reorder:
1. WooCommerce’s Built-in Stock Management:
WooCommerce offers basic stock management features right out of the box. Make sure you’ve enabled it!
2. WooCommerce Reports:
WooCommerce’s reporting features are your best friend!
3. Formulas and Calculations (Basic):
While fancy software is great, simple formulas can go a long way. Here’s a very basic example:
Reorder Point = (Daily Sales x Lead Time) + Safety Stock
Example:
Let’s say you sell an average of 5 “DIY Macrame Plant Hanger Kits” per day. Your supplier’s lead time is 14 days. You want to keep a safety stock of 20 kits.
Reorder Point = (5 x 14) + 20 = 70 + 20 = 90
This means you should reorder when your stock level hits 90 kits.
4. WooCommerce Inventory Management Plugins:
For more advanced features, consider a dedicated inventory management plugin. These plugins often offer:
Some popular WooCommerce inventory management plugins include:
5. Spreadsheets (Start Simple):
Even a basic spreadsheet (like Google Sheets or Microsoft Excel) can be incredibly helpful. Create a sheet to track:
You can use formulas within the spreadsheet to automatically calculate the reorder point and highlight products that need to be reordered.
Example Scenario: Handcrafted Candles
Let’s imagine you sell handcrafted candles through your WooCommerce store.
Using the formula:
Reorder Point = (3 x 7) + 10 = 21 + 10 = 31
You need to reorder when your “Lavender Bliss” candle stock reaches 31. This gives your supplier a week to make and deliver the candles, ensuring you don’t run out while keeping a small safety stock in case of unexpected demand.
Tips for Success
By following these tips and using the tools and techniques described above, you can effectively manage your WooCommerce inventory and avoid the pitfalls of running out of stock or overstocking. Good luck!
