A product is out of stock when your customers cannot purchase it due to depleted inventory. This can occur in both online and offline stores. It leads to lost sales and dissatisfied customers. You can avoid this situation by forecasting demand, maintaining safety stock, and working with multiple suppliers.
Stockouts represent a situation when a store runs out of a product customers want to buy. This is one of the most underrated business problems because it leads to lost sales and unhappy customers. When customers don’t find what they need, they may feel disappointed and go to a competitor instead.
This significantly hurts your business in the long run. A recent study showed that when a product is out of stock, its ranking can fall by over 28% after one day. After three days, rankings drop by 83%, and after more than 10 days, they fall by nearly 150%!
So, do you want to protect your business from poorer levels of customer satisfaction and sales? In this article, let’s understand what is out of production stock called, its primary reasons, and how to reduce stockouts.
What Does “Item Is Out Of Stock” Mean?
“Item is out of stock” or “this product is no longer available” are two common terms that mean a product is currently unavailable for purchase. This usually happens because the store has no more inventory left. As a business owner, you cannot take any new orders for that product until it is restocked.
Such a situation arises in both physical and online stores, but is handled differently. Let’s see how:
| Product is Out of Stock in Online Stores | Product is Out of Stock in Offline Stores |
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Major Reasons for a Product Being Temporarily Out of Stock
A recent study shows that stockouts seriously impact business revenue. They cause losses of up to 11% annually. In the U.S. retail food industry alone, stockouts result in $15 billion to $20 billion in lost sales every year.
But, why does a product go out of stock? Can’t it always remain available? There are several reasons for a product being no longer available:
1. Sudden Popularity of an Existing Product
Sometimes, a product becomes unexpectedly popular due to:
- Trends
- Social media
- Customer demand
If businesses don’t predict this surge, they may run out of stock quickly. For example, if a celebrity endorses a product, many people may rush to buy it. This leads to shortages.
2. High Demand for a New Product
A newly launched product may attract more buyers than expected. If businesses don’t stock enough, they may temporarily run out of stock. For example, a new smartphone model may sell out within hours if the demand is higher than the available stock.
3. Large Bulk Orders
A single customer or business placing a huge order can wipe out stock unexpectedly. For example, a company might order hundreds of an item for corporate use, leaving individual buyers unable to purchase it.
Here, if businesses don’t plan for bulk purchases, stockouts can happen.
4. Poor Inventory Management
Not keeping proper track of stock levels can lead to shortages. A business can face temporary out of stock issue if it:
- Doesn’t reorder on time
- Miscounts the available items
To avoid this issue, you must do proper stock tracking through automated inventory systems.
5. Supply Chain Disruptions
This is one of the most common reasons for an item being out of stock. There could be delays in getting products from suppliers due to various reasons like:
- Transport strikes
- Supplier problems
- Bad weather
These issues can slow down deliveries and leave shelves empty. Ideally, businesses must have backup suppliers to reduce such risks.
6. Shortage of Raw Materials
If a product requires specific materials or components that become unavailable, it halts production. For example, if a laptop manufacturer faces a chip shortage, they can not produce enough units. This leads to the item being out of stock in stores.
8 Strategies to Manage Temporarily Out of Stock Situations
When an item is out of stock, it negatively affects customer experience and business profits. It even hurts your ranking on platforms like Amazon FBA. To avoid this problem in 2025, you can use these smart strategies:
1. Clearly Mention if a Product is Unavailable
You should inform customers whether an item is temporarily out of stock or permanently discontinued. This prevents confusion and frustration. Also, some websites allow customers to save out-of-stock items in wishlists or receive notifications when they are back.
As a business owner, you can do weekly stock audits to avoid unexpected stockouts.
2. Provide Similar Product Recommendations
When an item is out of stock, you can suggest alternative products based on customer preferences. This helps customers find similar products they might like instead.
Doing this ensures customers don’t leave the website disappointed and might still make a purchase. It also increases brand trust and encourages customers to browse other products instead of leaving due to stock issues.
3. Mention the Restock Date
Customers appreciate transparency. If a product is out of stock, you should clearly mention when it will be available again. This prevents disappointment and gives customers a reason to return later.
You can either:
- Display the expected restock date on the product page
- Allow customers to provide their contact details to receive an alert when the product is back.
4. Remove or Reduce Visibility of Out-of-Stock Products
You can move out-of-stock product listings to the bottom of search results or temporarily remove them. This prevents customers from clicking on unavailable items and getting frustrated.
Please note that the “out of sight, out of mind” approach reduces disappointment. However, if a product is expected to be restocked soon, you can keep the listing with:
- A restock date
- Alternative product suggestions
5. Use Inventory Management Software
When products go out of stock frequently, it affects sales rankings and pushes competitors ahead. For example,
- Amazon’s algorithm favours sellers with consistent stock. Businesses that face stockouts may lose their position in the buy box.
The best way to prevent this is by using an inventory management system. This tool monitors stock levels and predicts shortages before they happen. By keeping a real-time count of inventory, you can avoid stockouts.
6. Encourage Customers to Pre-Order
You can give customers the option to pre-order items that are temporarily out of stock. This allows you to secure sales in advance. Also, this ensures customers get their desired products once restocked.
Be aware that customers appreciate honesty about availability. Most are often willing to wait if they know when the item will be shipped.
7. Forecast Demand for Various Products
Many businesses struggle to predict how much stock they need. A recent research shows that about 73% of retailers find inventory forecasting difficult. One way to improve forecasting is by performing an ABC analysis. In this approach, you categorise products based on their:
- Sales value
- Demand
You make three categories as follows:
| Category A | Category B | Category C |
| *High-value and high-demand products that require frequent monitoring and restocking. | Moderate-value and moderate-demand products that need regular but less frequent restocking. | Low-value and low-demand products that require minimal stock to avoid overstocking. |
Next, you try to keep a higher stock level for Category A items to avoid stockouts. Category B items have a balanced inventory approach, while Category C products are ordered in smaller quantities to reduce excess stock.
In this way, through ABC analysis, you can focus on the most profitable and in-demand products. This leads to better inventory planning and reduces the risk of stockouts.
8. Have Alternative Vendors
Relying on just one supplier can be risky. If that supplier faces delays, you may run out of stock. To avoid this, you should work with multiple vendors. This allows you to switch suppliers if one is unable to deliver on time.
By having backup vendors, you keep getting a continuous supply of products. This prevents customer dissatisfaction and avoids the situation of an item being temporarily out of stock.
Say No More to Stockouts with Atidiv!
Stockouts lead to lost sales and harm customer satisfaction. Studies show that churn rate could be as high as 40% due to supply chain disruption and stockouts. Thus, proper inventory management is highly important to maintain stock levels and prevent shortages.
This can be done through strategies such as:
- ABC analysis
- Inventory forecasting
- Having backup suppliers
- Launching pre-order sales
By implementing these methods, you can reduce the risk of stockouts and stay ahead of competitors.
Do you want expert inventory management support? Choose Atidiv! We offer automated inventory accounting and real-time data analytics. Also, our team holds expertise in cash flow forecasting. This ensures that funds are available for timely inventory purchases.
Partner with Atidiv today to optimise your inventory control and maximise profits!
FAQs On Out Of Production Stock
1. How does “temporarily out of stock” status impact my business?
Generally, stockouts lead to:
- Lost sales
- Unhappy customers
- Lower product rankings online
If customers don’t find what they need, they may switch to competitors. Moreover, if this happens frequently, it damages your brand reputation and reduces customer loyalty. This makes it harder to retain buyers and grow your business.
2. What is the best way to prevent stockouts in my store?
To avoid a product getting out of stock, you can use inventory management software. It tracks the stock in real time. Also, it forecast demand using past sales data and trends.
Alternatively, you can associate with leading inventory management organisations like Atidiv and benefit from their expertise.
3. Should I remove out-of-stock products from my website?
If an item will be restocked soon, display an expected availability date. You can also offer alternative product recommendations on that specific URL or product landing page.
However, if the product is discontinued, remove it to prevent confusion and frustration.
4. How can I handle bulk orders without running out of stock?
To avoid “temporarily out of stock” status, you can:
- Set purchase limits on high-demand items
- Take pre-orders for bulk purchases
- Maintain a separate inventory for wholesale buyers and regular customers.
These efforts ensure that one large order doesn’t wipe out stock. It keeps products available for all customers.
