Economic order quantity (EOQ): Definition, Formula & Why It Matters
Also called: EOQ
Economic order quantity (EOQ) is the order size that minimizes total inventory cost by balancing ordering costs against holding costs. Order too little and you overpay in shipping and handling; order too much and capital sits in excess stock.
Economic order quantity (EOQ) formula
Example
With high annual demand and low per-order costs, EOQ favors larger, less frequent orders.
Why it matters for Reverb sellers
EOQ gives you a defensible purchase-quantity target instead of buying on instinct. It is most useful for the stocked, repeatable items in your catalog rather than one-off used gear.
How Verbstack helps
Verbstack’s planner factors your costs and demand so reorder quantities are grounded in data.
Track this on every order, automatically.
- ✓ Real fees, margins, and profit on every Reverb sale
- ✓ COGS and inventory tracked for you, no spreadsheet
- ✓ Full history and a live monthly P&L
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See this number on every order.
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