How to manage reorders for Amazon wholesale

The real money in wholesale is in the reorder. A product that sells well can be bought again and again with no new research, but only if it is in stock. Run out, and the Buy Box goes to the other sellers and your sales rank drops. Here is how to manage reorders for Amazon wholesale: when to reorder, how much, and what to check first.

Know your days of cover

Days of cover is how long your current stock will last: stock on hand divided by your average daily sales. With 90 units and sales of 3 a day, you have 30 days of cover. Count the units on the way to Amazon as well as those already there, and use your own sales, not the whole listing's.

Find the reorder point

The reorder point is the stock level at which you must order again so the new stock arrives before you run out:

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

The lead time is everything from placing the order to the stock being live on Amazon: the supplier's delivery, prep and Amazon's receiving. Safety stock covers a slow delivery or a busy week, for example 20 percent of the lead-time demand.

Your sales per day	3 units
Lead time (supplier, prep, Amazon receiving)	30 days
Demand during the lead time	90 units
Safety stock (20%)	18 units
Reorder point	108 units

When your stock falls to 108 units, place the next order.

Decide how much to reorder

Order enough to cover the next lead time plus the time until the order after that, rounded to whole cases. Ordering every month keeps cash free; ordering every two or three months saves on shipping and admin. Choose the rhythm that fits your cash and the supplier's minimum order, and keep it the same for the product so the reorder becomes routine.

Check before you reorder

A reorder is a new buying decision, and the listing may have changed since the first one. Before you buy again, check:

• The supplier's price: has it gone up in the latest price list?
• The Buy Box price and the number of sellers: more sellers and a falling price mean a smaller share for you. See how to avoid price wars.
• Your own sales: did the last order sell as fast as you expected?
• The season: is the product heading into or out of its peak? See how to buy seasonal products.

If the profit still meets your targets, reorder. If not, ask the supplier for a better price or let the product run out.

Grow the winners

Each reorder is a chance to adjust. Raise the quantity on products that sold out early at a good price, keep the steady ones steady, and drop the ones that sold slowly. Over time your reorders become a short list of reliable products that make most of your profit, with new products tested in small first orders.

Reorders in Wholesale Analyzer

Wholesale Analyzer carries a decision through to the order. Select products in a scan and create a purchase order with the recommended quantities, export it to Excel for the supplier, and mark it as ordered and received. Received stock appears in Inventory with stock on hand, stock value, monthly demand, days of cover, the reorder point and a suggested reorder quantity. When the supplier sends a new price list, Compare catalogs shows which prices changed and which products gained or lost their BUY. See create purchase orders and track inventory.