You have hundreds of products in your warehouse, each with different prices depending on the supplier, purchase date, or order volume. How do you know the real value of your inventory?
This is where the WAC method (Weighted Average Cost) comes in. A formula that helps you maintain real control over your inventory value—without unnecessary complexity.
What is the WAC method?
The Weighted Average Cost (WAC) method is a way to calculate the value of your inventory. It adds the total cost of purchased units and divides it by the number of available units.
It is not based on the entry date (like FIFO or LIFO), but on an adjusted average according to price and quantity.
Simple example:
You buy 100 T-shirts at €5 = €500
Then you buy 50 at €6 = €300
WAC = (€500 + €300) / (100 + 50) = €5.33 per unit
This will be the value used to calculate your stock.
What is it used for in warehouse management?
WAC is used to:
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Value inventory more realistically.
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Calculate cost of sales accurately.
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Avoid fluctuations caused by temporary price changes.
In a high-volume warehouse, WAC provides a clear reference for average cost, without depending on the order in which products are sold.
When should you use WAC?
This method is ideal if you work with products that are:
Many fashion, cosmetics, or supplement brands—like those we work with at Amphora Logistics—use WAC to maintain stable margin control.
WAC and technology: an essential combination
Using WAC manually is possible but impractical. In an e-commerce store with hundreds of SKUs, automation is essential.
With a system like our WMS, you can apply the WAC method automatically with every stock entry and every order. No manual calculations. No errors.
Why choose WAC for your e-commerce?
Because it provides a clear, useful, and stable view of your product value. It doesn’t change with every purchase. It doesn’t depend on sales order. It helps you make better purchasing, pricing, and margin decisions.
And if you outsource your logistics with Amphora Logistics, WAC-based inventory control is integrated—so you can focus on selling.
Knowing how much stock you have is important. But knowing its real value makes the difference. WAC is not just a calculation. It is a tool for structured and sustainable growth.
