Estimate Etsy inventory coverage, reorder point, and handmade production requirement. Use it to prevent stockouts while controlling cash tied up in materials and finished goods.
Inventory coverage shows how long stock will last. If coverage is below production lead time, the shop is exposed to stockout and delayed fulfillment.
Handmade sellers should evaluate both finished inventory and raw material availability before peak seasons.
With 700 units, 20 daily sales, 12 production days, and 80 safety stock, coverage is 35 days and reorder point is 320 units.
Enough to cover production lead time, supplier delays, and seasonal demand without tying up too much cash.
Manage handmade inventory by forecasting sales, tracking raw materials, and scheduling production capacity.
Healthy turnover depends on category, but faster turnover with stable fulfillment is usually better.
Avoid stockouts by using reorder points, safety stock, and seasonal production planning.
Safety stock should cover demand volatility and delays, especially for best-selling or customized products.
| Metric | How to use it |
|---|---|
| Coverage | How many sales days current stock covers. |
| Reorder point | Inventory level that triggers production. |
| Risk | Compares coverage with lead time. |