Stockout
Category: Inventory
Also searched as: Stockout
Definition (plain English)
A stockout happens when available inventory is not enough to meet customer orders, production demand, or channel commitments.
Why it matters commercially
Stockouts create lost sales, service failures, retailer penalties, emergency freight, substitute sourcing, and damaged buyer confidence.
Example
A delayed ETA caused a two-week stockout, so the importer had to airfreight a small replenishment lot at a much higher freight cost per unit.
Common mistake
Treating stockout prevention as simply buying more stock without balancing safety stock, MOQ, shelf-life, warehouse capacity, and cash tied up in inventory.
Use this in CommerceKit
Freight Cost Per Unit Calculator
Use tool →MOQ & Shelf Life
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