How to place your initial stock orders

Placing your first big stock order is one of the most exciting steps in turning your business idea into a reality. The key is to order enough products to fill your shelves and meet initial customer demand, without tying up all your cash in items that might not sell. Before you commit, confirm the ‘lead time’ (how long it will take from ordering to delivery) and any ‘Minimum Order Quantities’ (MOQs) with your suppliers, as this will directly impact your timeline and budget.

How much stock should you order?

Deciding on the right amount of stock is a balancing act. While you want to look well-stocked and professional, over-ordering can cripple your cash flow from the start. Here’s a simple approach:

• Core Products: For the products you expect to be your bestsellers, order a confident but sensible quantity. Think about what a full display looks like and aim to have enough to restock that display a couple of times.
• Secondary Products: For items that are less central to your range, order closer to the supplier’s MOQ. This allows you to offer variety without taking a huge financial risk on unproven products.
• High-Cost Items: Be particularly cautious with expensive items. It's often better to start with just a few units and reorder as they sell.

It’s always better to sell out of a few items and reorder them than to be left with a mountain of unsold stock. You won’t have real sales data until you launch, so your first order is an educated guess.

The ordering process

When you’re ready to buy, send your supplier a formal Purchase Order (PO). This doesn't need to be complicated; an email with all the correct information acts as a written record and prevents misunderstandings.

Your PO should always include:

1. Your Details: Your business name, delivery address, and contact information.
2. Supplier Details: The name of the company you are ordering from.
3. Order Information: A unique PO number (e.g., #001), the date, and the agreed payment terms.
4. The Products: A clear list of each item using its product code or SKU, a brief description, the quantity you want, the price per unit, and the total price for that line.
5. The Total: The final value of the entire order, including VAT if applicable.

What to do when your stock arrives

Once your supplier receives the PO, they will likely send you a pro forma invoice, which means you’ll need to pay before they dispatch the goods. After you’ve paid, they will confirm a delivery date.

Top Tip: When the delivery arrives, don't just sign for it. Immediately check the contents against the delivery note and your original purchase order. Count the items and check for any damages while the delivery driver is present, if possible. Report any discrepancies or issues to your supplier straight away.