Retail Inventory Method: วิธีคำนวณสต็อกแบบร้านค้าสากลที่ SME ไทยต้องรู้ 2026
Retail Inventory Method: Essential Stock Calculation for Thai SMEs
Spending 3-4 hours daily counting stock? Customers order but stock is empty, causing 30-50 cancellations per month? Learn the retail inventory method that helps Thai businesses control stock accurately without manual counting
Common Problems Thai Retailers Face
What is the Retail Inventory Method?
The Retail Inventory Method is a technique used worldwide to estimate ending inventory value and Cost of Goods Sold (COGS) without physically counting every item. It's ideal for retailers with many SKUs like clothing, cosmetics, or online stores
This method works by comparing the cost of goods to their retail prices to find a cost-to-retail ratio. This ratio is then used to estimate remaining inventory value based on sales data
Why Thai Businesses Need This Method
How to Calculate: Step by Step
Calculate Cost-to-Retail Ratio
Formula: Total Cost ÷ Total Retail Price × 100
Example: Buy 100 shirts at 150 THB cost (15,000 total), price at 290 THB retail (29,000 total) = 51.7% ratio
Calculate Ending Inventory at Retail
Formula: Total Retail Value - Total Sales
Example: 29,000 retail value - 18,000 sales = 11,000 ending inventory at retail
Calculate Ending Inventory at Cost
Formula: Ending Inventory at Retail × Cost Ratio
Example: 11,000 ending inventory × 51.7% = 5,687 THB (cost value)
Calculate Cost of Goods Sold (COGS)
Formula: Total Cost of Goods - Ending Inventory at Cost
Example: 15,000 cost - 5,687 ending inventory = COGS 9,313 THB (gross profit 8,687)
Live Commerce Challenges Thailand 2026
Live commerce in Thailand is booming, but has unique inventory challenges. When selling live, products can sell out in minutes. Stock mismatches cause cancellations, damaging reputation and risking platform bans
Common Problems
- • Overselling on TikTok Shop / Shopee Live simultaneously
- • Customer orders but stock empty - must cancel
- • Don't know how much sold per live session
- • Excel can't keep up - different versions everywhere
Digital Solutions
- • Connect API for real-time sales from platforms
- • Set alerts when stock running low
- • Use unified system instead of multiple Excel files
- • Mobile stock counting with instant updates
Inventory Methods: FIFO vs LIFO for Thailand
Besides Retail Inventory Method, Thai businesses should know FIFO and LIFO. Thailand's Revenue Department accepts both, but you must use one consistently
FIFO (First In, First Out)
Sell old stock first, new stock stays in queue
Recommended for: FMCG, food, skincare
LIFO (Last In, First Out)
Sell new stock first, old stock stays behind
Recommended for: Gold, oil, rising price goods
Important: Under Thai tax law, you must consistently use the same method. Changing methods requires notifying the Revenue Department with reasonable cause. Consult your accountant first
How Hypelive Helps with Inventory Management
At Hypelive, we use Lark Base as our primary inventory system, helping SME clients switch from difficult-to-update Excel to a real-time system. Every 7 AM, the system sends daily sales summaries, remaining stock, and gross profit reports via LINE to business owners
SME Automation
฿4,900/month
For retail stores, restaurants, clinics needing basic inventory
- 3-second stock sync
- 7 AM daily reports via LINE
- Low stock alerts
E-commerce Automation
฿25,000-55,000/month
For Live Commerce selling on multiple platforms
- TikTok + Shopee + Lazada API sync
- Real-time sync, no overselling
- Profit dashboard per SKU
3-Second Sync
Real-time stock updates across team, no overselling
Reduce Cancellations
From 30-50/month down to 1-2, accurate stock
7 AM Reports
Sales, stock, profit reports via LINE daily
Real Case: Online Fashion Store (Live Commerce)
Client selling clothes via TikTok Shop and Shopee Live had frequent overselling with Excel. After using Hypelive E-commerce Automation:
3 วินาที
Stock sync
95%
Less cancellations
30+ ชม.
Hours saved/month
7:00
Daily report
Frequently Asked Questions
What businesses can use Retail Inventory Method?
Ideal for retailers with many items at similar prices: clothing, cosmetics, electronics. Not suitable for high-value items like gold or cars
Do I still need physical stock counts?
Still needed, but less frequently. Usually 1-2 times per year. This method is for interim estimates and preliminary tax filing
Can I do this in Excel?
Yes, but complicated and error-prone with multiple users. Recommend systems like Lark Base for real-time updates and auto-calculations
FIFO vs LIFO: which is better?
For perishables like food/cosmetics, use FIFO. For rising-price goods like gold/oil with tax savings, use LIFO. Must be consistent
How to manage inventory for Live Commerce?
Need real-time updating systems connected to selling platforms. Set low-stock alerts and keep 10-20% buffer stock for overselling
What is the difference between SME and E-commerce Automation?
SME Automation (฿4,900/month) suits general retail, restaurants, clinics needing basic inventory with 3-second sync. E-commerce Automation (฿25,000-55,000/month) is for Live Commerce selling on multiple platforms with real-time API sync to TikTok Shop, Shopee, and Lazada
Start Professional Inventory Management
Choose the package that fits your business, or get free consultation to find the right system
E-commerce Automation
฿25,000-55,000/mo
- • TikTok + Shopee + Lazada API
- • Real-time sync
- • Profit dashboard
