Stockout Rate
Definition
Stockout rate is the percentage of time a product is unavailable for purchase because it’s out of stock.
It’s calculated by dividing the number of days an item is out of stock by the total number of days it should be available.
Good or Bad?
Good when the rate is low and products are consistently available.
Bad when it’s high and popular items are frequently out of stock.
Why does it matter?
Customers can’t buy what you don’t have.
High stockout rates lead to lost sales, frustrated shoppers, and even damage to your brand’s reputation. It also affects SEO if product pages remain live but cannot convert.
Common Mistakes
- Not tracking inventory levels in real time
- Failing to restock high-demand products in time
- Keeping out-of-stock products visible without clear messaging
- Relying too heavily on manual stock updates
How to Improve It?
- Use inventory management tools to track product availability
- Set up low-stock alerts to reorder early
- Forecast demand based on past sales trends
- Clearly mark out-of-stock items and suggest alternatives
Recommended Plugin
Maximum Products per User for WooCommerce by WPFactory
This plugin allows you to control how many items a customer can purchase.
It helps prevent bulk buying of fast-moving products, reducing the risk of unexpected stockouts.
Real-World Example
You sell a trending skincare serum that goes viral on social media.
Because you didn’t anticipate the surge in orders, the product goes out of stock for two weeks.
During this time, you lose hundreds of potential sales and receive multiple support inquiries.
Related Terms
- Inventory Management
- Backorders
- Demand Forecasting
- Product Availability
FAQs
How do I calculate stockout rate?
Divide the number of days a product is out of stock by the number of days it was supposed to be available, then multiply by 100.
What is an acceptable stockout rate?
Less than 5 percent is generally considered good in eCommerce.
Should I hide out-of-stock products?
Only if they’re not coming back soon. Otherwise, keep them visible with restock dates or alternative recommendations.
