# Inventory Planning for Ecommerce: Keep Stock on Hand Without Tying Up Your Cash

Inventory planning for ecommerce brands: see stock cover against supplier lead times, stock-out risk, slow movers and the cash tied up in them across Shopify and Amazon FBA, then decide what to order.

- Applies to: Brands on Shopify, with Amazon Seller Central optional. Demand forecasts are switched on per client by Luca's team
- Status: Live
- Verified: 2026-11-07
- Canonical page: https://ask-luca.com/product-docs/use-cases/plan-stock

Inventory planning is the choice every ecommerce brand makes between running out of its best sellers and tying cash up in stock that sits. You need to know, for each product, how long current stock lasts against how long your supplier takes to deliver. Luca AI shows that from your Shopify and Amazon FBA data: stock cover against lead times, stock-out risk, slow movers and a demand forecast per product. You decide the quantities and place every order with your supplier.

## At a glance {#at-a-glance}

| | |
|---|---|
| **What it answers** | Which products run out before the next delivery lands, and which ones hold cash you could use elsewhere |
| **What you see** | Stock cover in days and weeks, run-out dates, order-by dates and stock by location, per product |
| **Lead times** | Supplier lead times and minimum order quantities (MOQs) held as business context, so cover is read against them |
| **Early warnings** | Stock-out risk per product, with stock-out alerts sent to Slack, email or the app |
| **Slow movers** | Slow-moving and aged stock, and the cash tied up in it |
| **Channels** | Shopify stock by location and Amazon FBA stock in one view, with bundles and kits handled |
| **Demand** | A demand forecast per product, switched on per client by Luca's team |
| **Where you see it** | **Numbers** › **Stock**, in chat, and in Slack |
| **Who decides** | You. Luca reads your data and never changes your store or places an order |

## Where it fits {#where-it-fits}

### What it's for {#what-its-for}

Inventory planning keeps the right stock on hand for each product without tying up cash or running out before the next delivery. It turns sales, stock and supplier lead times into one question per product: order now, wait, or stop reordering.

### How it helps {#how-it-helps}

- **Best sellers stay in stock.** You see which products run out before a new delivery could arrive, while there is still time to order.
- **Cash comes back from slow stock.** Slow movers are listed with the cash tied up in them, so you stop reordering what sits.
- **Two channels, one picture.** Warehouse stock and Amazon FBA stock sit side by side, so a gap in one is visible early.
- **Orders rest on evidence.** You size each order against cover, lead time and demand rather than last month's habit.

### What happens without it {#without-it}

Without a stock plan, best sellers run out between deliveries and the sales are lost while customers buy elsewhere. Meanwhile, cash sits in flavours or sizes that sell a few units a week. Both problems grow quietly until the bank balance or a stock-out forces a rushed decision.

### Why buyers care {#why-buyers-care}

Operations and inventory leads care most, because they answer for stock-outs and for the warehouse. Founders and finance leads care when cash is tight, since stock is often the largest place cash sits in a product business.

## The Luca AI approach to inventory planning {#approach}

{/* 5P */}

Picture the operations lead at a pet-food brand that sells on Shopify and through Amazon FBA. Two dry-food recipes, chicken and salmon, keep running out a week or two before each delivery lands. At the same time, slower flavours fill the warehouse shelves and hold cash the brand would rather spend on the best sellers.

The usual fix is a weekly spreadsheet. She exports stock from Shopify and Seller Central, types in supplier lead times and works out days of cover by hand. It can take a morning each week, and by the time it is finished the figures may already be a few days old.

Selling in two places means stock sits in two places. A recipe can look healthy in total while its FBA stock is about to run out, or the reverse. A single average of units sold a day also hides the slow flavours, because the best sellers carry the total.

Luca reads Shopify and Amazon Seller Central every night and puts stock cover, run-out dates and order-by dates on one Stock tab. It reads cover against the supplier lead times your team has given it and flags stock-out risk per product. It also lists the slow movers with the cash tied up in them. She then decides what to order and places the order with the supplier herself.

The comparison grid has four columns, and Luca has a documented Yes in each one. They are stock cover against lead times, Shopify and FBA stock together, slow movers with cash, and a demand forecast per product. That is covered in How Luca AI compares for inventory planning for DTC brands, below.

## What inventory planning in Luca shows you {#what-it-shows}

Luca brings the stock figures you would otherwise build by hand into one place, for every product. This section walks through what you see and how to read it.

### What you see on the Stock tab {#stock-tab}

Open **Numbers** › **Stock** to see stock cover, run-out dates and order-by dates for each product. Stock cover is shown in weeks and days, with and without incoming stock. Next to it you see stock-out risk, days in stock, the share of your catalogue in stock and aged stock. Luca's team sets up your **Numbers** dashboard with you, so the Stock tab is built around your own range.

![The Stock tab with two cards side by side. Stock by location lists units in the warehouse, at Amazon FBA and at a pop-up for five best sellers, with a total. Bundles and kits lists each kit, the component that limits it, how many are made up and how many more the components allow.](https://ask-luca.com/product-docs/images/use-cases/stock-by-location.webp)

*Stock by location and bundles on the Stock tab show where each product's units sit and which kit component runs out first. The figures are sample data for a demo brand.*

Read it top down. First find the products whose cover is shorter than the supplier's lead time, because they will run out before a new delivery could land. Then check where the stock sits, because cover in your warehouse does not help an FBA listing that is about to go out of stock.

### Stock cover against supplier lead times {#lead-times}

Cover only means something next to the lead time. Ninety days of cover is plenty for a product your supplier makes in two weeks. Twenty days is a problem when the supplier needs six. Luca shows weeks of stock cover against supplier lead times, with the expected run-out date per product.

Lead times and MOQs live in Luca as business context. Goals, rules, lead times and seasonality are held there, set up by Luca's team with your brand. Each item shows where Luca learned it, so you can check the lead time it is using.

![The Context panel with the Business context section open, listing goals, rules and constraints such as keeping at least a cash floor in the bank, lead times and seasonality such as a product taking 14 days from the supplier, and an order of trust for sources.](https://ask-luca.com/product-docs/images/use-cases/lead-times-context.webp)

*Lead times held as business context are what Luca reads stock cover against, so check them whenever a supplier changes. The figures are sample data for a demo brand.*

### Slow movers and the cash tied up in them {#slow-movers}

Luca lists slow-moving and aged stock, and the cash tied up in it. Inventory is treated as working capital, so you see the stock as money as well as units. For a pet-food brand this matters twice. Slow flavours hold cash, and food that sits also runs closer to its best-before date.

The useful question is not "what sells least?" It is "what would I not reorder today, and how much cash would that free?" Ask Luca in plain English and it answers with figures, a chart where useful and next steps.

> **Try asking Luca:** Which flavours have more than six months of cover, and how much cash is tied up in them?

### Stock-out warnings early enough to act {#stock-out-warnings}

Stock-out risk is shown per product, from current stock and recent demand. Luca warns you before you run out of cash or stock, and stock-out alerts can go to Slack, email or the app. Amazon-specific alerts cover the Buy Box and stock, so an FBA listing at risk reaches you directly.

![The Alerts section of Settings, headed What warns the team straight away, with rules for real ROAS, ad spend, cash including the forecast, runway, stock cover on any product under 21 days and return rate, each routed to a team.](https://ask-luca.com/product-docs/images/use-cases/stock-cover-alerts.webp)

*An alert on stock cover under a set number of days reaches the operations lead while there is still time to order. The figures are sample data for a demo brand.*

Set the warning against your longest lead time, not your shortest. If your slowest supplier needs six weeks, an alert at three weeks of cover arrives too late to help.

## How stock levels get planned {#how-stock-gets-planned}

There are several common ways to decide when to reorder and how much. Each one catches some problems and misses others. Knowing which is which helps you read the numbers Luca shows.

### Days of cover from recent sales {#days-of-cover}

Days of cover divides the units on hand by the units sold a day. It is quick and easy to explain. It catches a product that is selling faster than you thought. It misses seasonality, because a recent average carries last month's pace into a busier or quieter month.

### Reorder point with lead time demand {#reorder-point}

A reorder point adds the lead time. The usual formula multiplies [daily sales velocity by lead time, then adds safety stock](https://www.shopify.com/blog/reorder-point). Lead time is [how long it takes to get inventory from your supplier](https://www.shopify.com/blog/reorder-point) once you order. This catches the slow supplier that days of cover alone ignores. It still rests on an average rate of sale.

### Safety stock {#safety-stock}

Safety stock is the buffer held [to prevent stockouts](https://www.shopify.com/blog/safety-stock) when demand rises or a delivery is late. It catches the bad week. The basic formula, though, works for average scenarios but not for seasonal changes in demand. Too much of it brings its own cost: spoilage, dead stock and high storage costs.

### Economic order quantity {#eoq}

Economic order quantity (EOQ) sizes an order to keep the total of ordering, holding and shortage costs low. It catches the habit of ordering too often or in huge batches. It works from a yearly demand rate, and your supplier's MOQ may still force a larger order, so you adjust the answer by hand.

### Forecast-led planning {#forecast-led}

Forecast-led planning swaps the recent average for a forecast of demand over the lead time. It catches seasonal peaks and quiet months that averages smooth away. For seasonal items, Shopify's guide suggests using [the same or a comparable period from previous years](https://www.shopify.com/blog/inventory-forecasting). It is only as good as the forecast, so check it against what actually sold.

### What this means for your stock plan {#what-this-means}

Luca does several of these jobs for you. It shows stock cover in days and weeks, reads it against your supplier lead times and flags stock-out risk per product. It sets a reorder point per product, and its demand forecast per product is covered on the [ecommerce demand forecasting page](https://ask-luca.com/product-docs/use-cases/inventory-demand-forecasting). The order quantity is your call, so add the MOQ and your cash position before you commit.

## Plan stock across Shopify and Amazon FBA {#plan-across-channels}

A brand that sells in two places has to plan stock in two places. This section covers the views that make that easier.

### Stock by location {#stock-by-location}

Luca shows stock by location, using your Shopify locations, next to your Amazon FBA inventory. Shopify inventory comes in by location, with transfers. Amazon Seller Central brings in marketplace sales, fees and FBA stock. You get one inventory view across channels, so you can see when to move units to FBA before a listing runs dry.

### Bundles and kits {#bundles-and-kits}

Bundles and kits are handled. If you sell a mixed-flavour trial box, its stock depends on every component. The **Bundles and kits** card shows each kit, the component that limits it, how many are made up and how many more the components allow. A trial box can also be a way to move a slow flavour, so check it before you discount.

### Returns and shipping cost by product {#returns-and-shipping}

Return and refund rates are shown by product. A product with a high return rate sells fewer units than its orders suggest, so plan its stock on what customers keep. Shipping cost per order is shown too, which matters when you weigh FBA fees against shipping from your own warehouse.

![The profit-by-product table with units, net revenue, Shopify and Amazon contribution, return rate and margin, above a Returns by product bar chart of the share of units returned in the last 90 days and a Promotion impact card.](https://ask-luca.com/product-docs/images/use-cases/returns-by-product.webp)

*Returns by product show which items sell fewer units than their orders suggest, which changes how much stock they need. The figures are sample data for a demo brand.*

## How to measure whether your stock plan is working {#measure-stock-health}

Two measures tell you most of what you need: cover against lead time for the products you can't run out of, and cash tied up in the ones that sit.

### Days of cover against lead time {#cover-measure}

Compare each product's days of cover with its supplier lead time. If cover is shorter than lead time, the product will run out before a new delivery lands. The weak spot is the average behind it. A recent average understates demand going into a peak and overstates it coming out of one.

### Cash tied up in slow stock {#cash-measure}

Multiply the units of each slow product by its unit cost. That is the cash you could free by not reordering. Shopify's guide notes that [overstocking increases storage costs](https://www.shopify.com/blog/safety-stock) and weighs on cash flow. The weak spot is that a slow product may still matter, for example a flavour a loyal group of customers buys every month.

### Where Luca shows these measures {#where-luca-shows}

The Stock tab shows weeks and days of stock cover, with and without incoming stock, next to the run-out date and the supplier lead time. It also shows aged stock and the cash tied up in slow movers. If your demand forecast is switched on, its accuracy is measured against actuals every night, as the [revenue forecast page](https://ask-luca.com/product-docs/forecasting/revenue-forecast) explains for revenue.

## How to plan inventory by hand {#how-to-plan-inventory}

It helps to know the manual method, because it shows what each figure on the Stock tab stands for.

### The manual method {#manual-method}

1. Export current stock from Shopify, by location, and from Amazon Seller Central for FBA.
2. Export units sold per product for the last 30 days and work out units sold a day.
3. Divide units on hand by units sold a day to get days of cover.
4. Write each supplier's lead time and MOQ next to the products they make.
5. Work out [lead time demand](https://www.shopify.com/blog/inventory-forecasting): average daily sales times lead time in days.
6. Add safety stock to get a reorder point, and flag every product already below it.
7. List products with more than six months of cover, and multiply units by unit cost to see the cash tied up.
8. Decide quantities, check them against MOQs and cash, and place the orders with your suppliers.

### The same job in Luca {#same-job-in-luca}

Luca does steps 1 to 4 and part of 6 and 7 every night. Open **Numbers** › **Stock** to see cover, run-out dates and order-by dates, read against the lead times held in your business context. Ask in chat for the slow movers and the cash in them, or for what will run out first. You still do step 8: you choose the quantity and place each order with your supplier.

> **Try asking Luca:** Which products run out before their next delivery could land, and which flavours should I stop reordering?

### A worked example: two best sellers and two slow flavours {#worked-example}

This is an illustrative calculation with sample figures, not a Luca output. A pet-food brand sells four dry-food recipes. Its supplier needs 35 days to make and deliver an order.

| Recipe | Units on hand (warehouse + FBA) | Units sold a day | Days of cover | Lead time demand (a day × 35) | Unit cost | Cash in stock |
|---|---|---|---|---|---|---|
| Chicken and rice | 900 + 300 = 1,200 | 60 | 1,200 ÷ 60 = 20 | 60 × 35 = 2,100 | £6 | £7,200 |
| Salmon | 600 + 200 = 800 | 40 | 800 ÷ 40 = 20 | 40 × 35 = 1,400 | £7 | £5,600 |
| Duck and pumpkin | 2,400 | 8 | 2,400 ÷ 8 = 300 | 8 × 35 = 280 | £6 | £14,400 |
| Venison | 1,800 | 5 | 1,800 ÷ 5 = 360 | 5 × 35 = 175 | £7 | £12,600 |

Chicken and salmon have 20 days of cover against a 35-day lead time. Even ordered today, both run out about 15 days before the delivery lands. With 10 days of safety stock, chicken's reorder point is 2,100 + 600 = 2,700 units, more than twice what is on hand.

The two slow flavours hold 14,400 + 12,600 = 27,000 pounds at cost, with nearly a year of cover each. Not reordering them frees cash for the best sellers. The quantities for chicken and salmon are still a judgement: MOQs, cash and the coming season all shape the final order.

## Get set up {#set-up}

You connect Shopify yourself, read-only, and add Amazon Seller Central per region. The [set-up guide](https://ask-luca.com/product-docs/getting-started/set-up-luca) walks through both. Forecasting is not gated by plan; Luca's team switches it on per client. Give your Luca contact your supplier lead times and MOQs so they can be held as business context. If your stock lives in an ERP, Luca's team builds a custom source on request, with no fee.

## How inventory planning works with the rest of Luca {#works-with}

### Shopify {#with-shopify}

Shopify brings in products and variants, inventory by location, transfers, refunds and returns. It refreshes daily, overnight, with full history. That history is what stock cover and the demand forecast are built from.

### Amazon Seller Central {#with-amazon}

Amazon Seller Central brings marketplace sales, fees and FBA stock, with up to two years of history. It connects self-serve, per region. FBA stock then sits next to your Shopify locations on the Stock tab.

### The demand forecast {#with-demand-forecast}

The demand forecast per product is where forward-looking cover comes from. [Ecommerce demand forecasting](https://ask-luca.com/product-docs/use-cases/inventory-demand-forecasting) covers how it is read and checked. The [revenue forecast](https://ask-luca.com/product-docs/forecasting/revenue-forecast) covers the same nightly check for revenue.

### Xero, QuickBooks and cash {#with-accounting}

With Xero or QuickBooks connected, Luca adds a free-cash-flow forecast, and a cash-flow forecast 6 to 12 months ahead. That lets you weigh a large order against the cash you will have when the invoice falls due. [Cross-source answers](https://ask-luca.com/product-docs/chat/cross-source-answers) explain how one question can draw on store and ledger together.

### Chat and Slack {#with-chat}

Ask stock questions in plain English in chat, or [ask Luca in Slack](https://ask-luca.com/product-docs/use-cases/ai-agents-for-ecommerce) where your team already works. Answers link each figure to the table it came from, and you can download the data as CSV or Excel.

## Who plans stock with Luca, and how {#who-uses-it}

### Operations and inventory leads {#operations-leads}

An operations lead opens the Stock tab on Monday morning. She checks which products have less cover than lead time, which FBA listings need stock moved, and which flavours to leave off the next order. She asks about stock cover, stock-out risk and demand forecasts in chat as she goes.

### Founders and CEOs {#founders}

A founder wants to know whether stock is holding the business back. A daily view of the [whole business](https://ask-luca.com/product-docs/use-cases/see-the-whole-business) shows sales, ads, profit and cash. The Stock tab adds which best sellers are short and how much cash sits in slow movers.

### CFOs and finance leads {#finance-leads}

A finance lead treats inventory as working capital. She looks at the cash tied up in aged stock and sets it against the cash-flow forecast. Shared [KPI definitions](https://ask-luca.com/product-docs/use-cases/kpi-reporting) keep stock and cash figures the same in every report she sends.

## How Luca AI compares for inventory planning for DTC brands {#compare}

Luca reads stock cover against your supplier lead times and puts Shopify and Amazon FBA stock in one view. It lists slow movers with the cash tied up in them, next to a demand forecast per product. Luca AI is the only platform in this table that does all four.

Inventory planning features, from each platform's public documentation:

| Platform | Stock cover against supplier lead times | Shopify and Amazon FBA stock together | Slow movers and the cash tied up | Demand forecast per product |
|---|---|---|---|---|
| **Luca AI** | Yes | Yes | Yes | Yes |
| **Shopify** | Partly ([days of inventory remaining](https://help.shopify.com/en/manual/reports-and-analytics/shopify-reports/report-types/analytics-fields)) | Not in docs | Partly ([sell-through rate per product](https://help.shopify.com/en/manual/reports-and-analytics/shopify-reports/report-types/analytics-fields)) | Partly ([Sidekick writes code to forecast](https://help.shopify.com/en/manual/ai-powered-tools/sidekick)) |
| **Lifetimely by AMP** | Partly ([days of stock left from sales velocity](https://help.useamp.com/article/1392-lifetimely-sales-analysis-reports)) | Not in docs | Partly ([inventory value at cost](https://help.useamp.com/article/1392-lifetimely-sales-analysis-reports)) | Not in docs |
| **Triple Whale** | Partly ([Days of Stock on the Summary page](https://triplewhale.readme.io/docs/why-does-the-inventory-metric-on-the-summary-page-not-match-shopify-inventory-reports)) | Not in docs | Not in docs | Not in docs |
| **Daasity** | Partly ([weeks of cover you calculate](https://help.daasity.com/core-concepts/data-models/data-explores/omnichannel-analytics/omnichannel-inventory)) | Yes ([FBA inventory extractor](https://help.daasity.com/core-concepts/data-integrations/setup-guides/digital-integrations/amazon-seller-central/integration-specifications/fba-inventory-reports)) | Partly ([aging inventory for Vendor Central](https://help.daasity.com/core-concepts/data-integrations/setup-guides/retail-integrations/amazon-vendor-central/integration-specifications)) | Partly ([you enter projected units](https://help.daasity.com/core-concepts/custom-data-and-enrichment/revenue-plan-forecast/e-commerce-revenue-plan)) |

*Yes: documented and built in. Partly: documented with a limit, shown in brackets. Not in docs: not found in the vendor's public documentation.*

### Why Luca AI is the stronger choice for inventory planning for DTC brands {#compare-stronger}

- **Cover read against lead times.** Luca reads stock cover against the supplier lead times held in your business context. Triple Whale documents [Days of Stock on its Summary page](https://triplewhale.readme.io/docs/why-does-the-inventory-metric-on-the-summary-page-not-match-shopify-inventory-reports), from today's inventory. Compare the two in [Triple Whale alternatives](https://ask-luca.com/blogs/triple-whale-alternatives).
- **Seasonal demand in the plan.** Luca's demand forecast per product allows for seasonality. Lifetimely's forecasting documentation says it [does not apply seasonality](https://help.useamp.com/article/1389-lifetimely-forecasting). See [Lifetimely alternatives](https://ask-luca.com/blogs/lifetimely-alternatives).
- **Cover worked out for you.** Luca shows weeks and days of cover on the Stock tab. In Daasity, you build [weeks of cover from inventory and average weekly sales](https://help.daasity.com/core-concepts/data-models/data-explores/omnichannel-analytics/omnichannel-inventory) in an explore. More in [Daasity alternatives](https://ask-luca.com/blogs/daasity-alternatives).

*Competitor details checked against each vendor's public documentation on 7 November 2026. Features and plans change, so confirm with the vendor before you decide.*

## Limits and things to know {#limits}

- **Luca never places an order.** Every connector is read-only, so Luca reads your systems and writes to none of them. You choose quantities and order from your supplier. The [read-only access page](https://ask-luca.com/product-docs/platform/read-only-access) explains how.
- **Lead times come from your context.** Stock cover is read against the lead times and MOQs held as business context. Keep them current when a supplier changes.
- **Figures are as of last night.** Every source refreshes automatically once a day, overnight, so a sale this afternoon shows tomorrow.
- **Forecasting is switched on per client.** Luca's team switches on the demand forecast for your brand.
- **Stock by location follows Shopify.** Locations are your Shopify locations, with Amazon FBA stock alongside.
- **An ERP needs a custom source.** Luca's team builds it on request.

## Common questions {#common-questions}

#### What is inventory planning? {#what-is-inventory-planning}

Inventory planning is deciding how much stock to hold for each product, and when to reorder, so you don't run out before the next delivery or tie up cash in stock that sits. It weighs sales, supplier lead times and cash.

#### What is stock cover? {#what-is-stock-cover}

Stock cover is how long your current stock lasts at the rate it sells, in days or weeks. Luca shows stock cover per product on the Stock tab, with and without incoming stock, next to the run-out date.

#### How do I know which products will run out before my next delivery? {#which-run-out}

Compare each product's days of cover with its supplier lead time. If cover is shorter, it runs out first. Luca shows cover against lead times and stock-out risk per product, and stock-out alerts can go to Slack, email or the app.

#### Does Luca place orders with my supplier? {#placing-orders}

No. Luca is read-only and writes to none of your systems. It shows stock cover, lead times, stock-out risk, slow movers and demand forecasts. You decide the quantity and place each order with your supplier.

#### Does Luca know my supplier lead times and minimum order quantities? {#lead-times-moqs}

Yes, once they are held as business context. Supplier lead times and MOQs are held in Luca's context, set up by Luca's team with your brand, and stock cover is read against them.

#### Can Luca show Amazon FBA stock and Shopify stock together? {#fba-and-shopify}

Yes. Luca shows stock by location from your Shopify locations next to your Amazon FBA inventory, in one view across channels. Amazon Seller Central connects self-serve, per region.

#### How does Luca find slow-moving stock? {#slow-moving-stock}

Luca lists slow-moving and aged stock and the cash tied up in it, treating inventory as working capital. You can also ask in chat which products have more cover than you want to hold.

#### How much cash is tied up in my stock? {#cash-in-stock}

Multiply each product's units on hand by its unit cost and add them up. Luca shows the cash tied up in slow-moving and aged stock, and with Xero or QuickBooks connected it adds a cash-flow forecast.

#### Does Luca handle bundles and kits? {#bundles-kits}

Yes. Bundles and kits are handled, and the Stock tab can show each kit with the component that limits it, so you can see which part runs out first.

#### Can Luca warn me before something runs out? {#stock-alerts}

Yes. Luca shows stock-out risk per product, from current stock and recent demand, and sends stock-out alerts to Slack, email or the app. Amazon-specific alerts cover the Buy Box and stock.

#### Does Luca connect to my ERP? {#erp}

Yes, through a custom source. If your stock and costs live in an ERP, Luca's team builds the connection on request, with no fee, and it is read-only like every other source.

#### How often are stock figures updated? {#how-often}

Every source refreshes automatically once a day, overnight. Shopify brings in full history and Amazon Seller Central up to two years, so stock cover reflects yesterday's sales.

#### Is a demand forecast included? {#demand-forecast}

Yes, when it is switched on for your brand. Luca forecasts demand per product, allowing for seasonality, and checks its forecasts against actuals every night. Luca's team switches forecasting on per client.

#### Do return rates change how much stock I need? {#return-rates}

Yes. A product with a high return rate sells fewer units than its orders suggest. Luca shows return and refund rates by product, so you can plan stock on what customers keep.

## Further reading {#further-reading}

- [Reorder point formula: a retailer's guide](https://www.shopify.com/blog/reorder-point): how lead time, sales velocity and safety stock combine into a reorder point.
- [Safety stock: what it is and how to calculate it](https://www.shopify.com/blog/safety-stock): the main safety stock formulas, EOQ and the cost of holding too much.
- [Inventory forecasting: methods and formulas](https://www.shopify.com/blog/inventory-forecasting): lead time demand and how to handle seasonal items.
- [M5 accuracy competition: results, findings and conclusions](https://statmodeling.stat.columbia.edu/wp-content/uploads/2021/10/M5_accuracy_competition.pdf): why [small improvements in accuracy lead to considerable inventory reductions](https://statmodeling.stat.columbia.edu/wp-content/uploads/2021/10/M5_accuracy_competition.pdf) in retail.

## Related {#related}

- [Ecommerce inventory management](https://ask-luca.com/blogs/ecommerce-inventory-management): how brands cut stock-outs and clear slow stock.
- [Seasonal inventory management](https://ask-luca.com/blogs/seasonal-inventory-management): planning stock for peaks and quiet months.
- [Inventory and seasonal planning articles](https://ask-luca.com/blog-categories/inventory-seasonal-planning): more guides on stock and season.
- [Ecommerce platform integration](https://ask-luca.com/blogs/ecommerce-platform-integration): how order, inventory and customer data move between systems.
- [Shopify reporting dashboard](https://ask-luca.com/blogs/Shopify-reporting-dashboard): the reports to read next to your stock plan.
- [Customer retention analysis](https://ask-luca.com/product-docs/use-cases/customer-retention-analysis): which products bring buyers back, and so need steady stock.
- [ROAS analysis](https://ask-luca.com/product-docs/use-cases/roas-analysis): whether the ads pushing a product are worth the stock behind them.
- [Luca AI product documentation](https://ask-luca.com/product-docs): every guide in one place.

*Updated 7 November 2026: first published, with how stock levels get planned, how to measure a stock plan, the manual method with a worked example and further reading.*