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Inventory & operations

What is the reorder point formula for Amazon FBA?

Reorder point = (average daily sales x lead time in days) + safety stock. Lead time includes production plus transit plus FBA check-in. Safety stock covers demand and lead-time variability. If any of those numbers is wrong, you either stock out or bury cash in overstock.

MT
CTO at Nova Analytics

Jul 26, 2026 ยท 3 min read

Break it into three numbers

Average daily sales over the trailing 30 to 90 days. Total lead time from PO to available-for-sale in FBA. Safety stock, usually 1.5 to 2 standard deviations of daily demand over the lead time window.

Holding the formula in a spreadsheet is the fragile part. Restock signals next to velocity keep it current.

Where it goes wrong

Sellers use 30-day sales during a growth phase and get caught undersupplied 60 days later. Or they use a lead time from last quarter that is now 20 days shorter and hold excess. Refresh both numbers monthly.

Frequently asked questions

Should I include AWD transit in lead time?

Yes, from PO acceptance to FBA-available, including AWD reserve.

Do I need different reorder points per SKU?

Yes. Every SKU has a different velocity and lead time.

Can I automate reorder alerts?

Yes. Nova surfaces SKUs approaching reorder point using live sales and configured lead time.

See this in Nova

Nova surfaces this metric per SKU so you can act before your next monthly close catches it.

Try Nova free for 14 days