Ecommerce Fulfilment Services

In-Stock Rate (IRS)

in-stock rate

The in-stock rate (IRS) measures the percentage of time that products are available for sale and not out of stock. A high in-stock rate indicates that customers are likely to find what they’re looking for, while a low rate suggests the opposite, potentially driving customers to look elsewhere.

Calculating In-Stock Rate

The in-stock rate is usually expressed as a percentage. It can be calculated by dividing the number of days an item is available by the total number of days in the period, then multiplying by 100.

For example, let’s consider a popular running shoe model that was available for purchase 270 days out of a 300-day period.

(270 days available / 300 total days) × 100 = 90%.

This means the running shoe had a 90% in-stock rate, indicating it was readily available for customers to buy most of the time.

Factors Affecting In-Stock Rates

Several factors can influence a business’s in-stock rate:

  • Demand Forecasting Accuracy: Predicting customer demand helps in maintaining appropriate stock levels.
  • Supply Chain Efficiency: Delays in the supply chain can lead to stockouts.
  • Inventory Management Practices: Poor inventory practices can result in either excessive or insufficient stock levels.
  • Seasonal Fluctuations: Demand for products can vary seasonally, affecting stock levels.

More Fulfilment Terms

Shipment tracking is the process of locating and monitoring the progress of cargo, packages, or parcels as they move from the sender to the recipient.
A Stock Keeping Unit (SKU) is an identifier for each distinct product and service that can be purchased in business.

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