What Is Safety Stock? Definition, Formula and How to Calculate It

East Asian warehouse manager reviewing safety stock inventory levels on a tablet in a Shenzhen fulfillment center with organised shelving

Safety stock, also called buffer stock or reserve stock, is the extra inventory an ecommerce brand holds above its expected demand to protect against two things: unexpected spikes in sales and unexpected delays from suppliers. When demand outpaces your forecast or a supplier ships late, safety stock is the buffer that keeps you fulfilling orders […]