Core Definition
Stockout detection is a capability in which an AI camera automatically detects the moment a product sells out and an empty space appears on a store shelf, and sends an alert to the person in charge. It prevents the “unsellable loss” that POS data cannot reveal.
The Real Impact of Stockouts on Sales
Industry research shows that the average stockout rate at retail stores is around 7-10%. When a stockout occurs, customers either buy a substitute product (substitute purchase), abandon the purchase (purchase abandonment), or move to another store. Every scenario means lost revenue.
In particular, stockouts of popular products at convenience stores and supermarkets also affect customer trust. If a store gains a reputation as one that is “always out of stock,” visit frequency itself can decline.
AI Stockout Detection vs POS-Based Inventory Management
POS-based inventory management calculates theoretical stock by working backward from sales volume. But actual stock often differs from the theoretical figure due to returns, damage, theft, and other factors. POS also cannot detect cases where stock sits in the stockroom without having been restocked onto the shelf.
AI camera-based stockout detection has no such error because it checks the shelf directly. Because the camera directly detects that no product is present at a given location, detection is immediate and accurate.
How SAAI Uses It
SAAI's saai care analyzes CCTV footage from key shelves and sends a real-time app alert when a stockout occurs. The alert includes the time it happened, the shelf location, and a camera capture image, so the person in charge can check it right away. Stockout duration and frequency are also logged and used to plan reorders that prevent recurrence.
See it in action