Automating Reordering in Shopify: Streamline Inventory & Never Run Out of Stock

Are you still spending time reviewing inventory levels and manually calculating reorder quantities?

That's actually like you are calculating taxes with a calculator when accounting software is right there.

I know you trying to find reorder quantities manually might just work fine for you.

But as you see your Shopify store growing, manually checking stock levels, tracking supplier lead times, and creating purchase orders would be a headache.

By doing these things manually, you are actually trading your time, which you could spend on other inventory operations.

To eliminate these repetitive tasks and reduce costly inventory mistakes, you can turn to automated reordering.

As a matter of fact, 60% of American online retailers already use some form of automation in operations.

In this guide, I’ll help you understand what automated reordering is, how it works in Shopify, and also how you can build a more reliable replenishment process as your business scales.

What is Automated Reordering in Shopify?

Automated reordering is the process of automatically finding what inventory needs to be replenished and when on the basis of your inventory data, like sales velocity, inventory levels, supplier lead times, and safety stock requirements.

So with this, you can stop your habit of manually checking stock levels every week.

For example:

How Automated Reordering Works

Automated reordering combines inventory data, historical sales trends, and supplier information to help you know when inventory should be replenished.

So with this, you’ll be ordering the right quantity at the right time and not based on your gut feeling.

Here's what the process looks like.

Step 1: Monitor Inventory Levels

Inventory software continuously tracks available stock.

This includes:

• Current inventory
• Reserved inventory
• Incoming inventory
• Inventory across locations

Step 2: Calculate Sales Velocity

The system measures how quickly products are selling.

Example:

• 300 units sold in the last 30 days
• Daily sales velocity = 10 units/day

Step 3: Factor in Supplier Lead Time

Lead time is the number of days required for suppliers to deliver inventory.

Example:

• Daily sales = 10 units
• Lead time = 20 days

Inventory needed during lead time:

10 × 20 = 200 units

Step 4: Add Safety Stock

Safety stock acts as a buffer against:

• Demand spikes
• Supplier delays
• Forecasting errors

Example:

• Lead time demand = 200 units
• Safety stock = 50 units

Reorder point:

200 + 50 = 250 units

Step 5: Trigger Reordering

When inventory drops below 250 units:

• The system flags the product.
• Reorder recommendations are generated.
• Purchase orders can be created.

Reorder Point Formula

Real-World Example

A Shopify supplement brand sells protein powder.

• Average daily sales: 15 units
• Supplier lead time: 30 days
• Safety stock: 100 units

Reorder Point:

(15 × 30) + 100 = 550 units

Once inventory falls below 550 units, the system recommends placing a replenishment order.

Key Benefits of Automating Reordering in Shopify

Automation does not always mean that you are doing it to save time.

It's also about making the right decision based on data and not your intuition.

Reduce Stockouts

Automated reordering helps you identify products that need replenishment before inventory reaches critical levels. This reduces the chances of lost sales and disappointing customers.

Improve Cash Flow

I have seen merchants stocking up too much inventory of just a single product because they ordered it based on their gut feeling.

But if you are making a replenishment decision without any data supporting it then let me tell you are going to get your cash tied up in the excess inventory, and automated reordering helps you avoid this.

Save Time

We all know that manual inventory reviews and reorder calculations are time-consuming. Automation helps you save time so that you can focus on growing your business and not worry about inventory restocking.

Scale More Efficiently

As SKU counts grow, managing inventory manually becomes increasingly difficult. Automated reordering creates a repeatable process that can support larger catalogs without adding complexity.

Make Better Purchasing Decisions

Reordering decisions are based on inventory levels, sales trends, supplier lead times, and incoming inventory rather than guesswork.

What You Need Before Setting Up Automated Reordering

To make the most use of your reordering system, you need to first set it up by feeding it various data. Before you start to worry that this is going to be a long process or you aren’t much handy with software, let me tell you it’s way easier than you think.

So, here’s what you need before you get started:

Accurate Inventory Counts

Inventory data must be reliable.

Even the best automation system will produce poor recommendations if inventory levels are inaccurate.

Historical Sales Data

At least 60–90 days of sales history helps establish baseline demand patterns.

More data generally leads to better replenishment decisions.

Supplier Lead Times

Document:

• Average lead times
• Seasonal fluctuations
• Supplier reliability

Lead times directly impact reorder points.

Safety Stock Levels

Safety stock should reflect:

• Demand variability
• Supplier reliability
• Business risk tolerance

Fast-moving products often require larger safety stock buffers.

Organized Product Catalog

Your SKUs should be structured correctly.

This includes:

• Product variants
• Bundles
• Supplier assignments
• Multi-location inventory

Methods to Automate Reordering in Shopify Stores

There are several ways you can approach automating reordering in Shopify.

The right solution depends on how much automation you need in your replenishment workflows.

Method 1: Reorder Point Automation

With reorder point automation, you can identify products that require restocking based on predefined inventory thresholds.

When inventory falls below a specific stock level, the system generates an alert or recommendation. This helps merchants take action before products go out of stock.

It's a simple way to reduce manual inventory monitoring and improve stock availability.

Method 2: Demand-Based Reordering

Fixed reorder points don't always account for changing customer demand. A product that sells 10 units a week today might sell 50 units a week during a promotion or seasonal peak.

Demand-based reordering uses sales velocity, supplier lead times, and safety stock levels to adjust replenishment decisions based on actual demand patterns.

This approach helps you maintain healthier inventory levels while reducing the risk of both stockouts and overstocking.

Method 3: Purchase Order Automation

Once replenishment needs are identified, the next step is creating purchase orders.

Purchase order automation helps streamline this process by generating reorder recommendations and suggested order quantities based on inventory requirements.

Instead of manually calculating how much inventory to order for each SKU, merchants can review recommendations and quickly create purchase orders for suppliers.

Method 4: Inventory Management Software

Inventory management software brings multiple automation methods together in a single system.

These platforms combine inventory tracking, demand forecasting, reorder recommendations, purchase order management, supplier management, and inventory reporting.

As inventory operations become more complex, dedicated inventory software provides a more scalable approach to managing replenishment across multiple products, locations, and sales channels.

Research on automated inventory management systems has shown improvements in inventory accuracy, reductions in stockouts, and lower carrying costs among SMEs.

How Sumtracker Makes Reordering Easier for Shopify Merchants

As inventory operations become more complex, knowing that a product is running low isn't enough. You also need to know when to reorder, how much to reorder, and whether incoming inventory will arrive before you run out of stock.

Sumtracker helps in bringing this information together in one place.

It uses inventory levels, historical sales data, lead times, safety stock settings, and incoming inventory to help merchants make more informed replenishment decisions.

Instead of manually calculating reorder quantities for each SKU, merchants can view:

• Recommended reorder quantities
• Suggested reorder dates
• Projected stockout dates
• Incoming inventory before and after stockout
• Sales trends and demand forecasts

This makes it easier to identify products that require attention and prioritize purchase orders based on actual inventory needs.

For growing businesses, the value often comes from having inventory, purchasing, and supplier information connected in a single workflow rather than spread across different systems.

Looking for a simpler way to manage reordering?

Get your free trial for Sumtracker today!

FAQs

Does Shopify have automated reordering built in?

Shopify doesn't natively automate the entire reorder process based on sales velocity calculations, supplier lead times, and inventory forecasts. You'll need an inventory management app to automate replenishment decisions and purchase order workflows.

How do I determine the right reorder point for a product?

A reorder point is usually calculated using average daily sales, supplier lead time, and safety stock. Reviewing historical order data, purchase patterns, and recent sales trends can help you set more accurate reorder points and avoid stockouts.

Can automated reordering help reduce stockouts?

Yes. Automated reordering helps identify products that need replenishment before they run out of stock. By monitoring inventory levels and generating reorder reminders at the right time, you can place purchase orders earlier and reduce lost sales.

Is automated reordering useful for stores with multiple sales channels?

Absolutely. When inventory is spread across Shopify, marketplaces, and multiple locations, manually tracking stock can become difficult. Automated reordering tools use centralized Shopify data and inventory information to help merchants make more informed purchasing decisions.

Can I automate reordering without using spreadsheets?

Yes. Many growing Shopify stores move away from Google Sheets as inventory complexity increases. Inventory management software can track stock levels, supplier information, incoming inventory, and purchase orders in one place, reducing manual work and improving inventory accuracy.