Definition
Out of Stock Rate refers to the percentage of products or orders that cannot be fulfilled because the items are unavailable in inventory at the time of purchase.
Explanation
In dropshipping, the out of stock rate measures how often products listed in a store become unavailable from suppliers. Since store owners usually do not control inventory directly, stock availability depends on the supplier’s inventory system.
A high out of stock rate can negatively impact the business by:
- Causing order cancellations or delays
- Reducing customer satisfaction and trust
- Increasing refund requests
- Lowering store conversion rates
To reduce stock issues, dropshipping stores often work with reliable suppliers, monitor inventory updates, or use automation tools that sync product availability in real time.
Example
A dropshipping store lists 100 orders for a trending gadget in one week:
- The supplier successfully fulfills 92 orders.
- 8 orders cannot be shipped because the product is out of stock.
The out of stock rate for that period is 8%, indicating that some customers could not receive their orders due to inventory shortages.
Key Takeaway
Out of stock rate is an important operational metric in dropshipping, helping stores monitor supplier reliability and ensure products remain available for customers.