5 Simple Inventory Rules That Actually Work for Growing Online Stores

Running an online store and constantly worried about running out of best-sellers? Or maybe you’re sitting on piles of inventory that just won’t move? You’re not alone.

According to Shopify’s Inventory Management Guide, most eCommerce owners overcomplicate inventory. They think they need complex forecasting formulas or expensive consultants. The truth? A few simple, proven inventory rules, combined with the right automation—are all you need to scale smoothly.

At EIZ Technology, we work with Australian online businesses every day, helping them automate and simplify their inventory processes using our Lofko platform. And time after time, these five rules make the biggest difference.

Let’s break them down 

Rule 1: The 80/20 Product Rule — Focus on Your Money Makers

What it means:
20% of your products probably make 80% of your revenue. This is the Pareto Principle, and it applies to almost every eCommerce store. Yet, many business owners treat all their products the same, wasting precious time and stock space.

What to do:

• Look at your sales from the last 12 months.
• Identify your top 20% best-selling products—these are your “money makers.”
• Check their stock weekly, not monthly.
• Never let these run out of stock. Ever.
• For the remaining 80% of products, check monthly or quarterly. 

Why it works:
Focusing your energy on the products that actually drive revenue helps you allocate capital, warehouse space, and marketing effort strategically. You stop chasing every SKU and start doubling down on what sells.

💡 Pro tip: Inside Lofko, you can view your top 20% products in real-time across every channel like Shopify, eBay, Amazon, and more—so you can keep your best-sellers always in stock.

Rule 2: Always Keep “Just in Case” Stock

What it means:
Always order more than you think you’ll need for key products. According to Harvard Business Review, the cost of lost sales usually outweighs the cost of carrying a little extra inventory. A stockout doesn’t just mean one lost sale, it can mean losing a loyal customer forever.

What to do:

• Best sellers: Keep 2–4 weeks of extra stock.
• Seasonal items: Keep 4–6 weeks extra before peak seasons.
• Slow movers: Keep 6–8 weeks extra—they’re harder to reorder quickly. 

Why it works:
Having a “just in case” buffer helps your store stay resilient during unexpected spikes in demand, supplier delays, or shipping disruptions. It’s like insurance against missed revenue.

⚡ EIZ Insight: With Lofko’s automated reorder thresholds, you can set custom buffer levels for different SKUs, so your system knows exactly when to top up, without manual guesswork.

Rule 3: Set Up “Low Stock” Alerts

What it means:
Get notified before you run out, not after. By the time you notice you’re low on stock manually, it’s usually too late to reorder without downtime.

What to do:

• Set alerts when you have 2–3 weeks of stock left.
• For top sellers, set alerts at 1 week remaining.
• When alerts trigger, reorder immediately—no “thinking about it later.”
• Make this process automatic, not a mental checklist. 

Why it works:
Low stock alerts eliminate the lag between realization and action. You move from reactive to proactive inventory management.

Expert Tip: Inside Lofko, you can configure real-time low stock alerts across all sales channels. Whether you’re selling through Shopify, eBay, Amazon, or your own site, you’ll know exactly when to restock, before customers notice.

Rule 4: Look at Last Month to Predict Next Month

What it means:
Your best prediction tool is your recent sales history. You don’t need data scientists, just a clear view of your sales patterns.

According to the U.S. Small Business Administration, the most effective demand forecasting for SMEs is based on simple, consistent sales data, not complex algorithms.

What to do:

• Look at what you sold last month.
• If sales are growing, add 10–20% more to next month’s order.
• If you’re planning a big promo, double your normal order.
• Before holidays or busy seasons, look at last year’s numbers for guidance.

Why it works:
Sales trends are surprisingly stable for most stores. Basing your orders on actual performance means you won’t overstock slow items or run out of fast sellers.

EIZ Expert Tip: With Lofko’s built-in sales analytics, you can see last month’s numbers, seasonal trends, and channel performance in one place, no more spreadsheet chaos.

Rule 5: Order Smart Quantities

What it means:
Don’t reorder stock one piece at a time, but don’t buy a year’s worth either. There’s a sweet spot that balances cash flow and operational efficiency.

What to do:

• Order 1–3 months’ worth of stock at a time.
• Best sellers: Monthly orders.
• Steady sellers: Every 2–3 months.
• Slow movers: Every 3–6 months. 

Why it works: This rhythm helps you avoid two major inventory killers:

1. Tying up too much cash in unsold inventory.
2. Constant reordering chaos that eats into your workday. 

EIZ Expert Tip: With Lofko’s smart reorder rules, you can set these cycles once, and the system will automatically generate purchase orders when thresholds are met.

The Technology That Makes These Rules Easy

Let’s be real: You can’t manage growing inventory with spreadsheets forever.

According to McKinsey research on retail technology, businesses that adopt modern inventory systems grow faster and experience fewer operational errors than those that rely on manual updates.

Good inventory software should:

• Show real-time stock levels across all channels.
• Send automatic low stock alerts.
• Highlight fast vs slow movers at a glance.
• Make reordering a one-click process.
• Sync data seamlessly between platforms. 

And that’s exactly what EIZ Technology’s Lofko platform delivers for Australian online businesses.

Lofko gives you inventory clarity, control, and automation, so you can focus on growing your store, not updating spreadsheets. Book a Free Lofko Demo Today and see how it can transform your inventory management.

Red Flags That Your Current System Isn’t Working

If any of these sound familiar, it’s time to rethink your approach 👇

• You’re manually updating spreadsheets every day.
• You’ve oversold products because your channels weren’t synced.
• You spend more than 30 minutes a day on inventory admin.
• You’ve run out of best sellers in the last 3 months.
• You panic every time the order volume spikes.

According to the National Retail Federation, inventory errors cost retailers billions annually in lost sales and excess carrying costs. The good news? These are completely preventable with the right systems.

Start This Week: Pick One Rule and Implement It

You don’t need to overhaul everything overnight. Start simple:

• Easiest to start: Set up low stock alerts for your top 10 products.
• Biggest impact: Do the 80/20 analysis to find your money makers.
•  Most time-saving: Stop managing every SKU the same way—prioritise smartly. 

Inventory management isn’t about perfection.
It’s about having the right products available when your customers want them, without locking up your cash in slow-moving stock.

Final Thoughts

The most successful online stores keep inventory simple. They focus on what actually drives sales, use a few proven rules consistently, and let automation handle the rest.

At EIZ Technology, we built Lofko for this exact reason, to give Australian eCommerce owners the power to grow without getting bogged down by manual operations.

Book your free demo of Lofko today and see how easy inventory management can be when your system works smarter, not harder.