Reorder point: Definition, Formula & Why It Matters
Also called: ROP
The reorder point is the inventory level at which you should place a new order to avoid running out before it arrives. It combines how fast you sell with how long your supplier takes to deliver, plus a safety-stock buffer.
Reorder point formula
Example
Selling 2 units a day with a 20-day lead time and 10 units of safety stock, the reorder point is 50.
Why it matters for Reverb sellers
An accurate reorder point prevents both stockouts, which cost sales and ranking, and panic orders that lead to excess inventory and higher carrying costs. It is the backbone of disciplined restocking.
How Verbstack helps
Verbstack’s inventory planner surfaces what to reorder and when, based on your real sales velocity.
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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