Going out of stock is the most expensive thing that can happen to an Amazon product, and it is worse than the lost revenue suggests.

You do not simply pause. **Your competitors take the sales you would have made** &mdash; and with them the rank, the reviews and the advertising budget that those sales would have funded. You come back to a worse position than you left.

[Watch the walkthrough](https://kb.trackiq.com/kb-assets/kbvideo-invmindset-explainer-5dc68911.mp4)

*Prefer to watch? One hundred and sixteen seconds on what a stockout actually costs, the two halves of inventory management, and the standard worth holding yourself to.*

## **Why it outranks everything else**

Every other improvement is conditional on being in stock.

Better advertising does nothing when there is nothing to sell. A stronger main image does nothing. Improved organic rank does nothing, and worse, it decays while you are unavailable.

**So if you have gone out of stock repeatedly in the last year, inventory is where your attention belongs** &mdash; ahead of advertising, ahead of listing work, ahead of new products. For a brand with a recurring stockout problem, simply fixing it is often worth more than every other optimisation combined.

![Stock levels, per ASIN](/kb-assets/shot-inv-table-2e21b7.png)

## **The two halves of the job**

Inventory management is not complicated. It is a small number of things that must be done reliably.

**Monitoring** &mdash; watching stock against sales weekly, so you see a stockout coming with enough time to act.

**Planning** &mdash; deciding purchase orders so the stockout never becomes likely in the first place.

Most sellers do some of the first and almost none of the second, which is why stockouts feel like emergencies rather than forecasting errors.

## **What monitoring actually means**

**Watch inventory levels against sales velocity, weekly.**

The number that matters is not units in stock. It is **days of inventory** &mdash; units divided by current daily sales &mdash; because that reframes stock as time, which is the thing you actually need.

**And watch for velocity changes in both directions.** If you planned for 50 units a day and you are now selling 75, your runway just shortened by a third and nothing on the stock screen looks different. If you are selling 30, you have money sitting still and a storage bill.

**The weekly cadence exists so that change gets noticed while there is still time to respond.** A monthly check on a product with six weeks of cover is not monitoring, it is luck.

## **Where the data comes from**

The traditional answer is to wire a spreadsheet to your account through a third-party service and maintain a live dashboard of available, reserved and inbound units per child ASIN.

**TrackIQ reports that directly.** Available, reserved and inbound units, days of inventory, and sales velocity sit together per ASIN, which is the whole of the monitoring job without the spreadsheet in between. See [**How to Monitor Your Stock Levels**](https://kb.trackiq.com/hc/knowledge-base/articles/how-to-monitor-your-stock-levels) and [**Catch a Stockout Early**](https://kb.trackiq.com/hc/knowledge-base/articles/catch-a-stockout-early).

**And it can tell you rather than wait to be asked.** A low-stock alert on your top products removes the failure mode where the weekly check gets skipped in a busy week &mdash; see [**Setting Up Smart Alerts**](https://kb.trackiq.com/hc/knowledge-base/articles/setting-up-smart-alerts-and-real-time-notifications).

## **The goals of the process**

Three, in order:

**1. Spot ASINs heading for a stockout, early enough to act.** Weeks of warning, not days.

**2. When one is unavoidable, manage it deliberately** rather than simply running out. There is a considerable difference in profit between the two &mdash; see [**When You Are Going Out of Stock**](https://kb.trackiq.com/hc/knowledge-base/articles/going-out-of-stock).

**3. After a stockout, get back to normal sales as fast as possible.** Rank decays while you are unavailable, and recovering it takes deliberate effort rather than time.

## **What good looks like**

**98%+ in stock** across your active catalogue. That is the standard a relaunch assumes, and it is the standard advertising assumes too &mdash; driving velocity into a product that will run out is worse than not driving it at all.

**Never stocking out on a top seller. At all.** Your best products earn a different level of care and a larger buffer, because a stockout there costs more than a stockout everywhere else combined.

## **Related**

- [**Monitoring Inventory Against Sales**](https://kb.trackiq.com/hc/knowledge-base/articles/monitoring-inventory-against-sales) &mdash; the weekly check, in detail.
- [**When You Are Going Out of Stock**](https://kb.trackiq.com/hc/knowledge-base/articles/going-out-of-stock) &mdash; turning an unavoidable stockout into a profitable one.
- [**Inventory Forecasting and Purchase Orders**](https://kb.trackiq.com/hc/knowledge-base/articles/inventory-forecasting) &mdash; making stockouts unlikely in the first place.
