How to plan a Shopify reorder with lead time, MOQ and supplier deposits

A simple reorder-point calculation can help a small store review stock before a supplier order becomes urgent. Here is the math, what minimum order quantities change, and how to estimate the cash deposit from your own terms.

This guide is for a store that keeps its own inventory and buys products from suppliers. It is a planning method, not a demand forecast. It works best when recent sales are fairly steady and you know a supplier's typical lead time.

1. Estimate your reorder point

The reorder point is the amount of stock you want available when you place a replenishment order. It should cover expected demand while you wait for the supplier, plus a buffer for variation.

Use a recent, representative sales period to estimate average daily sales. If a product sells 120 units in the last 30 days, its simple average is 4 per day. Promotions, seasonality and stockouts can make that average misleading, so check the underlying period.

2. Include stock already on the way

Do not order as though incoming units do not exist. Compare the reorder point with sellable stock plus confirmed inbound inventory. If an inbound shipment is delayed or uncertain, keep that uncertainty visible rather than treating the units as guaranteed.

3. Work out the order quantity and MOQ

A reorder point answers when to review an item; it does not, by itself, tell you how much to buy. One simple target is a chosen number of days of stock after the new order arrives. The store should choose that cover period based on its cash, shelf space, supplier cadence and product life.

In the example, a 30-day target at 4 units/day is 120 units. With 70 available, the basic need is 50. If the MOQ is 100 units, the suggested order becomes 100, not 50. That can reduce the chance of a quick repeat order, but it also ties up more money.

4. Estimate the deposit before placing the order

If a supplier asks for a deposit, calculate it from the order quantity and unit cost. Use the supplier's actual payment terms; the percentage is not the same for every vendor and does not include every possible freight, tax, duty or fee.

For 100 units at $8 each with a 30% deposit, the estimated deposit is 100 × $8 × 0.30 = $240. The full product order value is $800 before other costs. This is a cash-planning estimate, not the final payable amount.

5. Review the assumptions every time

• Use the supplier's current lead time and terms.
• Adjust sales pace when a promotion, season or stockout distorts recent history.
• Include confirmed inbound units and avoid counting the same shipment twice.
• Check variants separately when sizes, colors or bundles sell at different rates.
• Review slow-moving and perishable products before using a days-of-cover target.
• Approve every suggested order yourself; a formula cannot know every business constraint.

Does Shopify provide this calculation?

Shopify's admin supports purchase orders, supplier details, costs and incoming inventory. A store can also use apps for more inventory planning. This guide explains a basic manual rule so a merchant can understand and review the numbers rather than treat them as automatic instructions. See Shopify's purchase order guide.