How much safety stock should you have?

Asked a year ago

Hey all, I run an electronics store on Shopify. What percentage of my total stock should be dedicated as safety stock to avoid running out? TYIA

Shopify Safety stock Excess inventory Safety stock

Abeeha Qasmi

Wednesday, January 25, 2023

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There isn't a single hard and fast number that every store should follow as a safety stock statistic. Different factors, such as sales values, future demand forecast, and the lead time for restocking, affect this number. Generally, it is recommended to have a safety stock level equal to or greater than the lead time for restocking multiplied by the average daily demand for the product.

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