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Updated 9 min read

Takealot inventory management: three DCs, days of cover and when to reorder

Takealot inventory management is three decisions: where your stock sits across the Johannesburg, Cape Town and Durban DCs, how many days of cover each SKU has left, and how much to send next. Here is the weekly routine and the fees it avoids.

  • inventory
  • replenishment
  • stockouts
  • reordering

TL;DR. Takealot inventory management is three decisions, made per SKU every week. Where the stock sits: Takealot runs three replenishment DCs — Johannesburg, Cape Town and Durban — and its SLA expects 80% of your in-stock offers to be available in all three. Stock in the wrong DC triggers an Auto IBT penalty of R20 to R290 per unit. How long it will last: days of cover is on-hand units divided by average daily sales, and a SKU needs reordering when its cover falls below your supplier lead time plus a 7 to 14 day buffer. How much to send: the replenishment formula is daily sales × cycle length + safety buffer. Get it wrong in one direction and you pay for a stockout in lost sales, buybox and rank. Get it wrong in the other and storage fees start once a SKU holds more than 35 days of cover. Takealot sends no low-stock alerts, so the routine has to be yours: thirty minutes a week on your top 20 SKUs.

What is Takealot inventory management?

On Takealot, most sellers hold stock in Takealot's own distribution centres (DCs). Takealot picks, packs and ships each order, and the stock remains yours until it sells. Inventory management is the work of keeping the right number of units in the right DC so that every order can ship from the building nearest the customer.

It covers four numbers per SKU:

  • On-hand stock by DC — not one national total.
  • Stock in transit — inbound shipments, and the days until they can be sold.
  • Days of cover — how long current stock will last at the current rate of sale.
  • Lead time — how long it takes to get new stock from your supplier into a DC.

Replenishment answers how many units to send. Inventory management decides which SKUs need sending, and to which DC.

How do Takealot's three DCs affect your stock?

Takealot serves customers from its Johannesburg, Cape Town and Durban DCs. Where your stock sits changes what the customer sees and what you pay.

How do Takealot's three DCs affect your stock?
Situation What the customer sees What you pay
In stock at the DC that serves them A normal offer. You can hold the buybox The normal per-unit fulfilment fee
In stock only at a different DC Your offer, with Takealot moving a unit across the country to fulfil it An Auto IBT penalty of R20 to R290 per unit, plus a slower delivery
Out of stock everywhere A competitor's offer, or nothing The lost sale, the lost buybox, and rank to recover

Auto IBT (Automatic Inter-Branch Transfer) appears on your statement as a "Stock Transfer Fee". Takealot describes it as a penalty, not a service. Its SLA expects 80% of your in-stock offers to be available in all three DCs, and its compliance team monitors sellers who replenish only one. The full rate table is in Takealot fees explained.

A single-DC inbound is cheaper to send. It is more expensive to operate.

What is days of cover, and how do you calculate it?

Days of cover is how many days your current stock will last at your current rate of sale:

Days of cover = on-hand units ÷ average daily units sold

Calculate it per SKU, per DC. A healthy national total can hide a DC that is about to run out.

A worked example

A SKU has a 21-day supplier lead time and a 10-day safety buffer, so it needs at least 31 days of cover in each DC.

What is days of cover, and how do you calculate it?
DC On-hand units Units sold per day Days of cover Action
Johannesburg 120 4 30 Reorder now. Cover is below 31 days
Cape Town 20 2 10 Urgent. This DC runs out before new stock can arrive
Durban 45 1 45 No reorder. Above 35 days, storage fees are close

Nationally this SKU has 185 units and 26 days of cover, which looks tight but workable. By DC, Cape Town will run out in ten days and Durban is overstocked. The national figure would have sent the wrong stock to the wrong place.

When should you reorder on Takealot?

Reorder a SKU when its days of cover in any DC falls below:

Supplier lead time + a 7 to 14 day safety buffer

Use the longer buffer for imported stock and for suppliers who ship late. Once a SKU is due, the replenishment formula sets the quantity:

Reorder quantity = (average daily sales × cycle length in days) + safety buffer

Split that quantity across DCs in proportion to where the SKU actually sells. If 60% of a product's orders come from Gauteng, most of the inbound belongs in Johannesburg.

For a promotion, plan at the promotion's sales rate, not your normal one. Daily Deals typically run at three to five times normal daily sales, and the stock should be in the DCs two weeks before the window opens.

What does holding too much stock cost?

Storage on Takealot is free while a SKU holds 35 days of cover or less. Above that line, Takealot charges a monthly fee per unit by packaged size, from R4 per unit for small items to R450 per unit for extra-bulky ones, excluding VAT.

Two features of the storage fee catch sellers out:

  • It moves with your sales. The same 200 units can be free in a strong month and chargeable in a slow one, because a slowdown raises days of cover.
  • It punishes large, slow items hardest. 100 extra-bulky units above the line cost R45,000 a month. 100 small units cost R400.

Buying extra stock for a supplier discount is worth checking against the storage bill before you place the order.

Stockout or overstock: which is worse?

Both cost money. They cost it in different places.

Stockout or overstock: which is worse?
Failure What you see What it costs Fix
Stockout Sales stop. A competitor takes the buybox. Rank falls and takes time to recover after restock Lost sales now, and lower sales for a period after restock Reorder earlier. Use the formula on top sellers. Hold stock in all three DCs
Overstock Storage fees on the payout statement. Cash tied up in the DC Monthly storage per unit above 35 days of cover Reduce the reorder cycle or the buffer. Stop rounding orders up

Most catalogues have both at once: an overstocked slow seller, and a stockout on the top seller whose cash it absorbed.

Does Takealot warn you when stock is low?

No. Takealot does not send low-stock alerts to sellers. The stock report is available in Seller Portal, but you have to open it. Nothing tells you when a SKU has three days of cover left. The cost of Takealot stockouts covers why that makes a weekly review essential.

Should you use DC stock or Leadtime?

Should you use DC stock or Leadtime?
Model How it works Advantage Cost
DC stock You send inventory to Takealot's DCs in advance Fast delivery. You can hold the buybox Fulfilment per unit. Storage above 35 days of cover. Auto IBT if the stock is in the wrong DC
Leadtime You hold stock and ship each order to Takealot after it is placed No storage fees A R50 cancellation fee on orders cancelled by you or cancelled for lateness. Slower delivery to the customer

Most sellers with a regular catalogue use DC stock, and keep Leadtime for slow or bulky lines where storage would outweigh the benefit.

How does Gadjet help with Takealot inventory?

Gadjet syncs your Takealot stock and sales every day and does the calculations above for you:

  • Days of cover per SKU, on every inventory row.
  • Stockout-risk alerts for the SKUs that will run out first.
  • A replenishment plan with reorder quantities from your actual sales rate.
  • A DC allocation plan that splits the next inbound across Johannesburg, Cape Town and Durban from your regional sales mix.
  • Overstock flags for slow sellers approaching storage fees.

You still create the inbound shipment in Seller Portal. Gadjet can quote and book the collection to the DC through Takealot Courier or Gadjet shipping. See Takealot seller software.

Frequently asked questions

Is Takealot inventory management the same as replenishment?

No. Replenishment decides how many units to send. Inventory management also decides which SKUs need stock, and which of Takealot's three DCs the units must go to. A seller can order the right quantity and still pay Auto IBT penalties if all of it lands in one DC.

How many Takealot DCs should I send stock to?

Send your top sellers to all three: Johannesburg, Cape Town and Durban. Takealot's SLA expects 80% of in-stock offers to be available in every DC, and stock in the wrong DC triggers an Auto IBT penalty of R20 to R290 per unit. Slow sellers can start in one DC and expand once they move.

What is days of cover on Takealot?

Days of cover is on-hand units divided by average daily units sold. It tells you how many days your stock will last at the current rate of sale. Calculate it per SKU and per DC, and reorder when it falls below your lead time plus a 7 to 14 day buffer.

How much safety buffer should I hold?

Hold 7 to 14 days of sales on top of your supplier lead time. Use the longer end for imported stock, unreliable suppliers and seasonal products. For promotions, calculate the buffer at three to five times normal daily sales.

When does Takealot charge storage fees?

Takealot charges storage only on SKUs holding more than 35 days of cover. Below that line, storage is free. Above it, the monthly fee depends on packaged size, from R4 per unit for small items to R450 per unit for extra-bulky items, excluding VAT.

Does Takealot send low-stock alerts?

No. Takealot does not send sellers low-stock emails or portal warnings. The stock report is available in Seller Portal, but you need to check it yourself or use software that flags low cover for you.

Can Gadjet tell me what to send to each DC?

Yes. Gadjet calculates days of cover per SKU, flags stockout risk, sets reorder quantities from your sales rate and splits the inbound across the three DCs by where each SKU sells. You still create the inbound in Seller Portal.

What to do this week

  1. Export on-hand stock by DC for your top 20 SKUs. A national total is not enough to manage Takealot stock.
  2. Calculate days of cover per SKU, per DC. Divide on-hand units by average daily sales.
  3. Mark every DC below lead time plus 10 days. Those are this week's reorders.
  4. Run the replenishment formula on the marked SKUs. Split each inbound across DCs by where the SKU sells.
  5. Mark every SKU above 35 days of cover. Pause reorders on those until cover falls.
  6. Book the same thirty minutes for next week. Takealot will not remind you.

Inventory on Takealot is a weekly routine, not a quarterly clean-up. Days of cover is the number that runs it, and the three DCs are where it applies.

Flag stockout risk and reorder quantity from your actual velocity.

Connect your Takealot store. Ask in plain English. Demo store on signup; cancel any time.


DH
Dov Halpern
Founder, Gadjet