Guides
Basics guides
What is a SKU? Meaning, examples and how to create them
A SKU (stock keeping unit) is a unique code for one sellable variant of a product. Learn how SKUs differ from barcodes, how to structure them and the mistakes to avoid.
What is safety stock? Formula, example and how much you need
Safety stock is the buffer that covers surprise demand and late deliveries. See the formula, a worked example, how service level changes the answer and common mistakes.
What is a reorder point? Formula, example and common mistakes
The reorder point is the stock level that triggers a new purchase order. Learn the formula, see a worked example and avoid the mistakes that cause stockouts and overstock.
Economic order quantity (EOQ): formula, calculator and worked example
EOQ finds the order size that minimises ordering plus holding cost. See the formula, a worked example, when it works, when it does not, and how to round to MOQs and cases.
What is a backorder? Meaning, causes and how to manage one
A backorder is an order taken for a product that is out of stock. Learn when to allow backorders, what they cost, and how to keep customers and purchasing informed.
Cost of goods sold (COGS) for ecommerce: what to include and how to calculate it
COGS is the direct cost of the products you sold. See the formula, what belongs in it for an online store, a worked example and how it links to margin and turnover.
Inventory valuation: FIFO, LIFO and weighted average explained
FIFO, LIFO and weighted average put different values on the same stock. See a side-by-side example, how each changes COGS and profit, and which a small ecommerce business uses.
Cycle counting: how to count stock without shutting down
Cycle counting checks a slice of inventory on a rolling schedule. Learn how to choose what to count, how often, how to handle differences and how it beats annual stocktakes.
Perpetual vs periodic inventory: which system fits your business
Perpetual inventory updates stock with every transaction; periodic inventory updates it after a count. Compare accuracy, cost, effort and when each makes sense.
What is a WMS? Warehouse management system meaning and types
A warehouse management system directs and records receiving, putaway, picking, packing and shipping. Learn what a WMS does, how it differs from inventory planning and when you need one.