The verdict in three sentences
The two silent killers of an e-shop are the stockout (8 to 15% of sales lost) and dead stock (cash tied up). A spreadsheet no longer cuts it past a few dozen SKUs: you need reorder points and ABC analysis. A lightweight WMS, even a simple one, saves more than it costs within the first quarter.
Reorder point by category
The reorder point prevents stockouts without overstocking. Simple formula: (average daily sales × lead time) + safety stock. Lead time ranges from 7 to 21 days depending on whether the supplier is local or imported.
| Product category | Sales/day | Lead time | Safety stock | Reorder point |
|---|---|---|---|---|
| Local best-seller | 10 | 7 days | 30 | 100 units |
| Medium-rotation local | 4 | 10 days | 15 | 55 units |
| Fast import | 6 | 14 days | 40 | 124 units |
| Slow import | 3 | 21 days | 30 | 93 units |
| Seasonal | 8 | 14 days | 50 | 162 units |
ABC analysis guides the effort: typically 20% of SKUs (class A) drive 80% of revenue. Watch these best-sellers daily and give them generous safety stock; let class-C SKUs run lean to free up cash.
Inventory tool comparison
The spreadsheet is free but fragile and alert-less. An off-the-shelf app automates reorder alerts. A custom module integrates with your store and payments.
| Criterion | Spreadsheet | Off-the-shelf app | Custom module |
|---|---|---|---|
| Upfront cost | 0 | Low-medium | 800,000-2,000,000 FCFA |
| Reorder alerts | Manual | Automatic | Automatic |
| Store sync | No | Partial | Full |
| ABC / turnover analysis | Manual | Basic | Advanced |
| Multi-warehouse | Hard | Yes | Yes |
| Error risk | High | Low | Low |
On real estate, a small warehouse in Nairobi rents for KES 40,000 to 120,000/month by zone; in Kinshasa, budget 300,000 to 800,000 FCFA. Aim for 6 to 10 turns a year: below 4, your cash sleeps in dead stock.
Mini case study
Joseph runs an electronics e-shop in Nairobi, 120 SKUs, warehouse at KES 70,000/month. On a spreadsheet he suffers 3 stockouts a month on his best-sellers, losing ~12% of sales on KES 800,000 monthly revenue — KES 96,000 gone. He adopts reorder points and ABC analysis: the 24 class-A SKUs (20%) are tracked daily and stockouts fall to near zero. He recovers ~KES 80,000 in monthly sales and clears KES 200,000 of class-C dead stock. His turnover rises from 4 to 8x/year. The inventory module, paid back in three months, becomes his best decision of the year.
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FAQ
What does a stockout really cost?
A stockout loses 8 to 15% of sales on the affected SKU — the customer often buys elsewhere and doesn't return. On your class-A best-sellers, it's the costliest and most avoidable leak.
How do I calculate a reorder point?
Multiply your average daily sales by the lead time (7 to 21 days), then add safety stock. Example: 10 sales/day × 7 days + 30 safety = reorder at 100 units.
What is ABC analysis and why use it?
It ranks SKUs by revenue contribution: class A (~20% of SKUs) drives ~80% of sales. You focus monitoring and safety stock on those, and keep class-C SKUs lean.
What inventory turnover should I target in 2026?
Between 6 and 10 times a year for most e-shops. Below 4, too much cash sleeps in dead stock; above 12, you risk frequent stockouts for lack of buffer.
What does a small warehouse cost in Nairobi?
KES 40,000 to 120,000/month by zone and size. In Kinshasa the equivalent is 300,000 to 800,000 FCFA. Negotiate the tightest footprint and target high turnover to make every square meter pay.
Let's talk about your project. We integrate an inventory module with reorder points, alerts and ABC analysis, synced to your store and payments. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
