diff --git a/plugins/woocommerce-admin/includes/api/class-wc-admin-rest-system-status-tools-controller.php b/plugins/woocommerce-admin/includes/api/class-wc-admin-rest-system-status-tools-controller.php
index 1cc3cceeaa8..2d7120d9068 100644
--- a/plugins/woocommerce-admin/includes/api/class-wc-admin-rest-system-status-tools-controller.php
+++ b/plugins/woocommerce-admin/includes/api/class-wc-admin-rest-system-status-tools-controller.php
@@ -55,7 +55,7 @@ class WC_Admin_REST_System_Status_Tools_Controller extends WC_REST_System_Status
 
 		switch ( $tool ) {
 			case 'rebuild_stats':
-				WC_Admin_Reports_Orders_Stats_Data_Store::queue_order_stats_repopulate_database();
+				WC_Admin_Api_Init::regenerate_report_data();
 				$message = __( 'Rebuilding reports data in the background . . .', 'wc-admin' );
 				break;
 			default:
diff --git a/plugins/woocommerce-admin/includes/class-wc-admin-api-init.php b/plugins/woocommerce-admin/includes/class-wc-admin-api-init.php
index b995d195428..fc86d08615d 100644
--- a/plugins/woocommerce-admin/includes/class-wc-admin-api-init.php
+++ b/plugins/woocommerce-admin/includes/class-wc-admin-api-init.php
@@ -12,6 +12,38 @@ defined( 'ABSPATH' ) || exit;
  */
 class WC_Admin_Api_Init {
 
+	/**
+	 * Action hook for reducing a range of batches down to single actions.
+	 */
+	const QUEUE_BATCH_ACTION = 'wc-admin_queue_batches';
+
+	/**
+	 * Action hook for queuing an action after another is complete.
+	 */
+	const QUEUE_DEPEDENT_ACTION = 'wc-admin_queue_dependent_action';
+
+	/**
+	 * Action hook for processing a batch of customers.
+	 */
+	const CUSTOMERS_BATCH_ACTION = 'wc-admin_process_customers_batch';
+
+	/**
+	 * Action hook for processing a batch of orders.
+	 */
+	const ORDERS_BATCH_ACTION = 'wc-admin_process_orders_batch';
+
+	/**
+	 * Action hook for initializing the orders lookup batch creation.
+	 */
+	const ORDERS_LOOKUP_BATCH_INIT = 'wc-admin_orders_lookup_batch_init';
+
+	/**
+	 * Queue instance.
+	 *
+	 * @var WC_Queue_Interface
+	 */
+	protected static $queue = null;
+
 	/**
 	 * Boostrap REST API.
 	 */
@@ -30,9 +62,38 @@ class WC_Admin_Api_Init {
 		// Initialize Orders data store class's static vars.
 		add_action( 'woocommerce_after_register_post_type', array( 'WC_Admin_Api_Init', 'orders_data_store_init' ), 20 );
 		// Initialize Customers Report data store sync hooks.
-		// Note: we need to hook into 'wp' before `wc_current_user_is_active`.
+		// Note: we need to hook in before `wc_current_user_is_active`.
 		// See: https://github.com/woocommerce/woocommerce/blob/942615101ba00c939c107c3a4820c3d466864872/includes/wc-user-functions.php#L749.
-		add_action( 'wp', array( 'WC_Admin_Api_Init', 'customers_report_data_store_init' ), 9 );
+		add_action( 'wp_loaded', array( 'WC_Admin_Api_Init', 'customers_report_data_store_init' ) );
+
+		// Initialize scheduled action handlers.
+		add_action( self::QUEUE_BATCH_ACTION, array( __CLASS__, 'queue_batches' ), 10, 3 );
+		add_action( self::QUEUE_DEPEDENT_ACTION, array( __CLASS__, 'queue_dependent_action' ), 10, 2 );
+		add_action( self::CUSTOMERS_BATCH_ACTION, array( __CLASS__, 'customer_lookup_process_batch' ) );
+		add_action( self::ORDERS_BATCH_ACTION, array( __CLASS__, 'orders_lookup_process_batch' ) );
+		add_action( self::ORDERS_LOOKUP_BATCH_INIT, array( __CLASS__, 'orders_lookup_batch_init' ) );
+	}
+
+	/**
+	 * Get queue instance.
+	 *
+	 * @return WC_Queue_Interface
+	 */
+	public static function queue() {
+		if ( is_null( self::$queue ) ) {
+			self::$queue = WC()->queue();
+		}
+
+		return self::$queue;
+	}
+
+	/**
+	 * Set queue instance.
+	 *
+	 * @param WC_Queue_Interface $queue Queue instance.
+	 */
+	public static function set_queue( $queue ) {
+		self::$queue = $queue;
 	}
 
 	/**
@@ -280,9 +341,9 @@ class WC_Admin_Api_Init {
 	public static function regenerate_report_data() {
 		// Add registered customers to the lookup table before updating order stats
 		// so that the orders can be associated with the `customer_id` column.
-		self::customer_lookup_store_init();
-		WC_Admin_Reports_Orders_Stats_Data_Store::queue_order_stats_repopulate_database();
-		self::order_product_lookup_store_init();
+		self::customer_lookup_batch_init();
+		// Queue orders lookup to occur after customers lookup generation is done.
+		self::queue_dependent_action( self::ORDERS_LOOKUP_BATCH_INIT, self::CUSTOMERS_BATCH_ACTION );
 	}
 
 	/**
@@ -316,39 +377,54 @@ class WC_Admin_Api_Init {
 	}
 
 	/**
-	 * Init orders product lookup store.
-	 *
-	 * @param WC_Background_Updater|null $updater Updater instance.
-	 * @return bool
+	 * Init order/product lookup tables update (in batches).
 	 */
-	public static function order_product_lookup_store_init( $updater = null ) {
-		// TODO: this needs to be updated a bit, as it no longer runs as a part of WC_Install, there is no bg updater.
-		global $wpdb;
+	public static function orders_lookup_batch_init() {
+		$batch_size  = self::get_batch_size( self::ORDERS_BATCH_ACTION );
+		$order_query = new WC_Order_Query(
+			array(
+				'return'   => 'ids',
+				'limit'    => 1,
+				'paginate' => true,
+			)
+		);
+		$result      = $order_query->get_orders();
 
-		$orders = get_transient( 'wc_update_350_all_orders' );
-		if ( false === $orders ) {
-			$orders = wc_get_orders(
-				array(
-					'limit'  => -1,
-					'return' => 'ids',
-				)
-			);
-			set_transient( 'wc_update_350_all_orders', $orders, DAY_IN_SECONDS );
+		if ( 0 === $result->total ) {
+			return;
 		}
 
-		// Process orders until close to running out of memory timeouts on large sites then requeue.
-		foreach ( $orders as $order_id ) {
+		$num_batches = ceil( $result->total / $batch_size );
+
+		self::queue_batches( 1, $num_batches, self::ORDERS_BATCH_ACTION );
+	}
+
+	/**
+	 * Process a batch of orders to update (stats and products).
+	 *
+	 * @param int $batch_number Batch number to process (essentially a query page number).
+	 * @return void
+	 */
+	public static function orders_lookup_process_batch( $batch_number ) {
+		$batch_size  = self::get_batch_size( self::ORDERS_BATCH_ACTION );
+		$order_query = new WC_Order_Query(
+			array(
+				'return'  => 'ids',
+				'limit'   => $batch_size,
+				'page'    => $batch_number,
+				'orderby' => 'ID',
+				'order'   => 'ASC',
+			)
+		);
+		$order_ids = $order_query->get_orders();
+
+		foreach ( $order_ids as $order_id ) {
+			// TODO: schedule single order update if this fails?
+			WC_Admin_Reports_Orders_Stats_Data_Store::sync_order( $order_id );
 			WC_Admin_Reports_Products_Data_Store::sync_order_products( $order_id );
-			// Pop the order ID from the array for updating the transient later should we near memory exhaustion.
-			unset( $orders[ $order_id ] );
-			if ( $updater instanceof WC_Background_Updater && $updater->is_memory_exceeded() ) {
-				// Update the transient for the next run to avoid processing the same orders again.
-				set_transient( 'wc_update_350_all_orders', $orders, DAY_IN_SECONDS );
-				return true;
-			}
+			WC_Admin_Reports_Coupons_Data_Store::sync_order_coupons( $order_id );
+			WC_Admin_Reports_Taxes_Data_Store::sync_order_taxes( $order_id );
 		}
-
-		return true;
 	}
 
 	/**
@@ -359,49 +435,144 @@ class WC_Admin_Api_Init {
 	}
 
 	/**
-	 * Init customer lookup store.
+	 * Returns the batch size for regenerating reports.
+	 * Note: can differ per batch action.
 	 *
-	 * @param WC_Background_Updater|null $updater Updater instance.
-	 * @return bool
+	 * @param string $action Single batch action name.
+	 * @return int Batch size.
 	 */
-	public static function customer_lookup_store_init( $updater = null ) {
-		// TODO: this needs to be updated a bit, as it no longer runs as a part of WC_Install, there is no bg updater.
-		global $wpdb;
+	public static function get_batch_size( $action ) {
+		$batch_sizes = array(
+			self::QUEUE_BATCH_ACTION     => 100,
+			self::CUSTOMERS_BATCH_ACTION => 25,
+			self::ORDERS_BATCH_ACTION    => 10,
+		);
+		$batch_size  = isset( $batch_sizes[ $action ] ) ? $batch_sizes[ $action ] : 25;
 
-		// Backfill customer lookup table with registered customers.
-		$customer_ids = get_transient( 'wc_update_350_all_customers' );
+		/**
+		 * Filter the batch size for regenerating a report table.
+		 *
+		 * @param int    $batch_size Batch size.
+		 * @param string $action Batch action name.
+		 */
+		return apply_filters( 'wc_admin_report_regenerate_batch_size', $batch_size, $action );
+	}
 
-		if ( false === $customer_ids ) {
-			$customer_query = new WP_User_Query(
-				array(
-					'fields' => 'ID',
-					'role'   => 'customer',
-					'number' => -1,
-				)
+	/**
+	 * Queue a large number of batch jobs, respecting the batch size limit.
+	 * Reduces a range of batches down to "single batch" jobs.
+	 *
+	 * @param int    $range_start Starting batch number.
+	 * @param int    $range_end Ending batch number.
+	 * @param string $single_batch_action Action to schedule for a single batch.
+	 * @return void
+	 */
+	public static function queue_batches( $range_start, $range_end, $single_batch_action ) {
+		$batch_size       = self::get_batch_size( self::QUEUE_BATCH_ACTION );
+		$range_size       = 1 + ( $range_end - $range_start );
+		$action_timestamp = time() + 5;
+
+		if ( $range_size > $batch_size ) {
+			// If the current batch range is larger than a single batch,
+			// split the range into $queue_batch_size chunks.
+			$chunk_size = ceil( $range_size / $batch_size );
+
+			for ( $i = 0; $i < $batch_size; $i++ ) {
+				$batch_start = $range_start + ( $i * $chunk_size );
+				$batch_end   = min( $range_end, $range_start + ( $chunk_size * ( $i + 1 ) ) - 1 );
+
+				self::queue()->schedule_single(
+					$action_timestamp,
+					self::QUEUE_BATCH_ACTION,
+					array( $batch_start, $batch_end, $single_batch_action )
+				);
+			}
+		} else {
+			// Otherwise, queue the single batches.
+			for ( $i = $range_start; $i <= $range_end; $i++ ) {
+				self::queue()->schedule_single( $action_timestamp, $single_batch_action, array( $i ) );
+			}
+		}
+	}
+
+	/**
+	 * Queue an action to run after another.
+	 *
+	 * @param string $action Action to run after prerequisite.
+	 * @param string $prerequisite_action Prerequisite action.
+	 */
+	public static function queue_dependent_action( $action, $prerequisite_action ) {
+		$blocking_jobs = self::queue()->search(
+			array(
+				'status'   => 'pending',
+				'orderby'  => 'date',
+				'order'    => 'DESC',
+				'per_page' => 1,
+				'claimed'  => false,
+				'search'   => $prerequisite_action, // search is used instead of hook to find queued batch creation.
+			)
+		);
+
+		if ( $blocking_jobs ) {
+			$blocking_job       = current( $blocking_jobs );
+			$after_blocking_job = $blocking_job->get_schedule()->next()->getTimestamp() + 5;
+
+			self::queue()->schedule_single(
+				$after_blocking_job,
+				self::QUEUE_DEPEDENT_ACTION,
+				array( $action, $prerequisite_action )
 			);
+		} else {
+			self::queue()->schedule_single( time() + 5, $action );
+		}
+	}
 
-			$customer_ids = $customer_query->get_results();
+	/**
+	 * Init customer lookup table update (in batches).
+	 */
+	public static function customer_lookup_batch_init() {
+		$batch_size     = self::get_batch_size( self::CUSTOMERS_BATCH_ACTION );
+		$customer_query = new WP_User_Query(
+			array(
+				'fields'  => 'ID',
+				'number'  => 1,
+			)
+		);
+		$total_customers = $customer_query->get_total();
 
-			set_transient( 'wc_update_350_all_customers', $customer_ids, DAY_IN_SECONDS );
+		if ( 0 === $total_customers ) {
+			return;
 		}
 
-		// Process customers until close to running out of memory timeouts on large sites then requeue.
+		$num_batches     = ceil( $total_customers / $batch_size );
+
+		self::queue_batches( 1, $num_batches, self::CUSTOMERS_BATCH_ACTION );
+	}
+
+	/**
+	 * Process a batch of customers to update.
+	 *
+	 * @param int $batch_number Batch number to process (essentially a query page number).
+	 * @return void
+	 */
+	public static function customer_lookup_process_batch( $batch_number ) {
+		$batch_size     = self::get_batch_size( self::CUSTOMERS_BATCH_ACTION );
+		$customer_query = new WP_User_Query(
+			array(
+				'fields'  => 'ID',
+				'orderby' => 'ID',
+				'order'   => 'ASC',
+				'number'  => $batch_size,
+				'paged'   => $batch_number,
+			)
+		);
+
+		$customer_ids = $customer_query->get_results();
+
 		foreach ( $customer_ids as $customer_id ) {
-			$result = WC_Admin_Reports_Customers_Data_Store::update_registered_customer( $customer_id );
-
-			if ( $result ) {
-				// Pop the customer ID from the array for updating the transient later should we near memory exhaustion.
-				unset( $customer_ids[ $customer_id ] );
-			}
-
-			if ( $updater instanceof WC_Background_Updater && $updater->is_memory_exceeded() ) {
-				// Update the transient for the next run to avoid processing the same orders again.
-				set_transient( 'wc_update_350_all_customers', $customer_ids, DAY_IN_SECONDS );
-				return true;
-			}
+			// TODO: schedule single customer update if this fails?
+			WC_Admin_Reports_Customers_Data_Store::update_registered_customer( $customer_id );
 		}
-
-		return true;
 	}
 
 	/**
@@ -583,8 +754,7 @@ class WC_Admin_Api_Init {
 		self::create_db_tables();
 
 		// Initialize report tables.
-		add_action( 'woocommerce_after_register_post_type', array( 'WC_Admin_Api_Init', 'order_product_lookup_store_init' ), 20 );
-		add_action( 'woocommerce_after_register_post_type', array( 'WC_Admin_Api_Init', 'customer_lookup_store_init' ), 20 );
+		add_action( 'woocommerce_after_register_post_type', array( __CLASS__, 'regenerate_report_data' ), 20 );
 	}
 
 }
diff --git a/plugins/woocommerce-admin/includes/class-wc-admin-order-stats-background-process.php b/plugins/woocommerce-admin/includes/class-wc-admin-order-stats-background-process.php
deleted file mode 100644
index 46f76aef209..00000000000
--- a/plugins/woocommerce-admin/includes/class-wc-admin-order-stats-background-process.php
+++ /dev/null
@@ -1,77 +0,0 @@
-<?php
-/**
- * Order stats background process.
- *
- * @package WooCommerce Admin/Classes
- */
-
-defined( 'ABSPATH' ) || exit;
-
-if ( ! class_exists( 'WC_Background_Process', false ) ) {
-	include_once WC_ABSPATH . '/includes/abstracts/class-wc-background-process.php';
-}
-
-/**
- * WC_Admin_Order_Stats_Background_Process class.
- *
- * @todo use Action Scheduler instead of this.
- */
-class WC_Admin_Order_Stats_Background_Process extends WC_Background_Process {
-
-	/**
-	 * Initiate new background process.
-	 */
-	public function __construct() {
-		// Uses unique prefix per blog so each blog has separate queue.
-		$this->prefix = 'wp_' . get_current_blog_id();
-		$this->action = 'wc_order_stats';
-		parent::__construct();
-	}
-
-	/**
-	 * Push to queue without scheduling duplicate recalculation events.
-	 * Overrides WC_Background_Process::push_to_queue.
-	 *
-	 * @param integer $data Timestamp of hour to generate stats.
-	 */
-	public function push_to_queue( $data ) {
-		$data = absint( $data );
-		if ( ! in_array( $data, $this->data, true ) ) {
-			$this->data[] = $data;
-		}
-
-		return $this;
-	}
-
-	/**
-	 * Dispatch but only if there is data to update.
-	 * Overrides WC_Background_Process::dispatch.
-	 */
-	public function dispatch() {
-		if ( ! $this->data ) {
-			return false;
-		}
-
-		return parent::dispatch();
-	}
-
-	/**
-	 * Code to execute for each item in the queue
-	 *
-	 * @param string $item Queue item to iterate over.
-	 * @return bool
-	 */
-	protected function task( $item ) {
-		if ( ! $item ) {
-			return false;
-		}
-
-		$order = wc_get_order( $item );
-		if ( ! $order ) {
-			return false;
-		}
-
-		WC_Admin_Reports_Orders_Stats_Data_Store::update( $order );
-		return false;
-	}
-}
diff --git a/plugins/woocommerce-admin/includes/data-stores/class-wc-admin-reports-orders-stats-data-store.php b/plugins/woocommerce-admin/includes/data-stores/class-wc-admin-reports-orders-stats-data-store.php
index ddaab352d8e..711d48362ab 100644
--- a/plugins/woocommerce-admin/includes/data-stores/class-wc-admin-reports-orders-stats-data-store.php
+++ b/plugins/woocommerce-admin/includes/data-stores/class-wc-admin-reports-orders-stats-data-store.php
@@ -7,10 +7,6 @@
 
 defined( 'ABSPATH' ) || exit;
 
-if ( ! class_exists( 'WC_Admin_Order_Stats_Background_Process', false ) ) {
-	include_once WC_ADMIN_ABSPATH . '/includes/class-wc-admin-order-stats-background-process.php';
-}
-
 /**
  * WC_Admin_Reports_Orders_Stats_Data_Store.
  *
@@ -71,22 +67,6 @@ class WC_Admin_Reports_Orders_Stats_Data_Store extends WC_Admin_Reports_Data_Sto
 		'num_new_customers'       => 'SUM(returning_customer = 0) AS num_new_customers',
 	);
 
-	/**
-	 * Background process to populate order stats.
-	 *
-	 * @var WC_Admin_Order_Stats_Background_Process
-	 */
-	protected static $background_process;
-
-	/**
-	 * Constructor.
-	 */
-	public function __construct() {
-		if ( ! self::$background_process ) {
-			self::$background_process = new WC_Admin_Order_Stats_Background_Process();
-		}
-	}
-
 	/**
 	 * Set up all the hooks for maintaining and populating table data.
 	 */
@@ -96,10 +76,6 @@ class WC_Admin_Reports_Orders_Stats_Data_Store extends WC_Admin_Reports_Data_Sto
 		add_action( 'clean_post_cache', array( __CLASS__, 'sync_order' ) );
 		add_action( 'woocommerce_order_refunded', array( __CLASS__, 'sync_order' ) );
 		add_action( 'woocommerce_refund_deleted', array( __CLASS__, 'sync_on_refund_delete' ), 10, 2 );
-
-		if ( ! self::$background_process ) {
-			self::$background_process = new WC_Admin_Order_Stats_Background_Process();
-		}
 	}
 
 	/**
@@ -373,31 +349,6 @@ class WC_Admin_Reports_Orders_Stats_Data_Store extends WC_Admin_Reports_Data_Sto
 		); // WPCS: cache ok, DB call ok, unprepared SQL ok.
 	}
 
-	/**
-	 * Queue a background process that will repopulate the entire orders stats database.
-	 *
-	 * @todo Make this work on large DBs.
-	 */
-	public static function queue_order_stats_repopulate_database() {
-
-		// This needs to be updated to work in batches instead of getting all orders, as
-		// that will not work well on DBs with more than a few hundred orders.
-		$order_ids = wc_get_orders(
-			array(
-				'limit'  => -1,
-				'type'   => 'shop_order',
-				'return' => 'ids',
-			)
-		);
-
-		foreach ( $order_ids as $id ) {
-			self::$background_process->push_to_queue( $id );
-		}
-
-		self::$background_process->save();
-		self::$background_process->dispatch();
-	}
-
 	/**
 	 * Add order information to the lookup table when orders are created or modified.
 	 *
diff --git a/plugins/woocommerce-admin/tests/api/reports-customers.php b/plugins/woocommerce-admin/tests/api/reports-customers.php
index dfd8a7b3d3d..63e00d644cd 100644
--- a/plugins/woocommerce-admin/tests/api/reports-customers.php
+++ b/plugins/woocommerce-admin/tests/api/reports-customers.php
@@ -122,10 +122,6 @@ class WC_Tests_API_Reports_Customers extends WC_REST_Unit_Test_Case {
 			$test_customers[] = WC_Helper_Customer::create_customer( "customer{$i}", 'password', "customer{$i}@example.com" );
 		}
 
-		// Initialize the report lookup table.
-		delete_transient( 'wc_update_350_all_customers' );
-		WC_Admin_Api_Init::customer_lookup_store_init();
-
 		// Create a test product for use in an order.
 		$product = new WC_Product_Simple();
 		$product->set_name( 'Test Product' );
diff --git a/plugins/woocommerce-admin/tests/api/reports-orders.php b/plugins/woocommerce-admin/tests/api/reports-orders.php
index 6e1e798b174..c625473eef4 100644
--- a/plugins/woocommerce-admin/tests/api/reports-orders.php
+++ b/plugins/woocommerce-admin/tests/api/reports-orders.php
@@ -67,6 +67,8 @@ class WC_Tests_API_Reports_Orders extends WC_REST_Unit_Test_Case {
 		$order->set_total( 100 ); // $25 x 4.
 		$order->save();
 
+		$expected_customer_id = WC_Admin_Reports_Customers_Data_Store::get_customer_id_by_user_id( 1 );
+
 		$response = $this->server->dispatch( new WP_REST_Request( 'GET', $this->endpoint ) );
 		$reports  = $response->get_data();
 
@@ -77,7 +79,7 @@ class WC_Tests_API_Reports_Orders extends WC_REST_Unit_Test_Case {
 
 		$this->assertEquals( $order->get_id(), $order_report['order_id'] );
 		$this->assertEquals( date( 'Y-m-d H:i:s', $order->get_date_created()->getTimestamp() ), $order_report['date_created'] );
-		$this->assertEquals( 0, $order_report['customer_id'] ); // @TODO: This should be 1, but customer_id is returning 0 in lookup table.
+		$this->assertEquals( $expected_customer_id, $order_report['customer_id'] );
 		$this->assertEquals( 4, $order_report['num_items_sold'] );
 		$this->assertEquals( 90.0, $order_report['net_total'] ); // 25 x 4 - 10 (shipping)
 		$this->assertEquals( 'new', $order_report['customer_type'] );
diff --git a/plugins/woocommerce-admin/tests/batch-queue.php b/plugins/woocommerce-admin/tests/batch-queue.php
new file mode 100644
index 00000000000..d8711afdc60
--- /dev/null
+++ b/plugins/woocommerce-admin/tests/batch-queue.php
@@ -0,0 +1,184 @@
+<?php
+/**
+ * Reports Generation Batch Queue Tests
+ *
+ * @package WooCommerce\Tests\Reports
+ * @since 3.5.0
+ */
+
+/**
+ * Reports Generation Batch Queue Test Class
+ *
+ * @package WooCommerce\Tests\Reports
+ * @since 3.5.0
+ */
+class WC_Tests_Reports_Regenerate_Batching extends WC_REST_Unit_Test_Case {
+	/**
+	 * Queue batch size.
+	 *
+	 * @var integer
+	 */
+	public $queue_batch_size = 10;
+
+	/**
+	 * Customers batch size.
+	 *
+	 * @var integer
+	 */
+	public $customers_batch_size = 5;
+
+	/**
+	 * Orders batch size.
+	 *
+	 * @var integer
+	 */
+	public $orders_batch_size = 2;
+
+	/**
+	 * Force known values for batch size.
+	 *
+	 * @param int    $batch_size Batch size.
+	 * @param string $action Action.
+	 * @return int
+	 */
+	public function filter_batch_size( $batch_size, $action ) {
+		switch ( $action ) {
+			case WC_Admin_Api_Init::QUEUE_BATCH_ACTION:
+				return $this->queue_batch_size;
+			case WC_Admin_Api_Init::CUSTOMERS_BATCH_ACTION:
+				return $this->customers_batch_size;
+			case WC_Admin_Api_Init::ORDERS_BATCH_ACTION:
+				return $this->orders_batch_size;
+			default:
+				return 1;
+		}
+	}
+
+	/**
+	 * Set up.
+	 */
+	public function setUp() {
+		parent::setUp();
+		$this->queue = new WC_Admin_Test_Action_Queue();
+		WC_Admin_Api_Init::set_queue( $this->queue );
+		add_filter( 'wc_admin_report_regenerate_batch_size', array( $this, 'filter_batch_size' ), 10, 2 );
+	}
+
+	/**
+	 * Tear down.
+	 */
+	public function tearDown() {
+		parent::tearDown();
+		WC_Admin_Api_Init::set_queue( null );
+		$this->queue->actions = array();
+		remove_filter( 'wc_admin_report_regenerate_batch_size', array( $this, 'filter_batch_size' ), 10, 2 );
+	}
+
+	/**
+	 * Test that large batches get split properly.
+	 */
+	public function test_queue_batches_splits_into_batches_correctly() {
+		$num_customers = 1234; // 1234 / 5 = 247 batches
+		$num_batches   = ceil( $num_customers / $this->customers_batch_size );
+
+		WC_Admin_Api_Init::queue_batches( 1, $num_batches, WC_Admin_Api_Init::CUSTOMERS_BATCH_ACTION );
+
+		$this->assertCount( $this->queue_batch_size, $this->queue->actions );
+		$this->assertArraySubset(
+			array(
+				'hook' => WC_Admin_Api_Init::QUEUE_BATCH_ACTION,
+				'args' => array( 1, 25, WC_Admin_Api_Init::CUSTOMERS_BATCH_ACTION ),
+			),
+			$this->queue->actions[0]
+		);
+		$this->assertArraySubset(
+			array(
+				'hook' => WC_Admin_Api_Init::QUEUE_BATCH_ACTION,
+				'args' => array( 226, 247, WC_Admin_Api_Init::CUSTOMERS_BATCH_ACTION ),
+			),
+			$this->queue->actions[ $this->queue_batch_size - 1 ]
+		);
+	}
+
+	/**
+	 * Test that small enough batches have their "single" action queued.
+	 */
+	public function test_queue_batches_schedules_single_actions() {
+		$num_customers = 45; // 45 / 5 = 9 batches (which is less than the batch queue size)
+		$num_batches   = ceil( $num_customers / $this->customers_batch_size );
+
+		WC_Admin_Api_Init::queue_batches( 1, $num_batches, WC_Admin_Api_Init::CUSTOMERS_BATCH_ACTION );
+
+		$this->assertCount( 9, $this->queue->actions );
+		$this->assertArraySubset(
+			array(
+				'hook' => WC_Admin_Api_Init::CUSTOMERS_BATCH_ACTION,
+				'args' => array( 1 ),
+			),
+			$this->queue->actions[0]
+		);
+		$this->assertArraySubset(
+			array(
+				'hook' => WC_Admin_Api_Init::CUSTOMERS_BATCH_ACTION,
+				'args' => array( 9 ),
+			),
+			$this->queue->actions[8]
+		);
+	}
+
+	/**
+	 * Test that batch dependencies work.
+	 */
+	public function test_queue_dependent_action() {
+		// reset back to using a real queue.
+		WC_Admin_Api_Init::set_queue( null );
+
+		// insert a blocking job.
+		WC_Admin_Api_Init::queue()->schedule_single( time(), 'blocking_job', array( 'stuff' ) );
+		// queue an action that depends on blocking job.
+		WC_Admin_Api_Init::queue_dependent_action( 'dependent_action', 'blocking_job' );
+		// verify that the action was properly blocked.
+		$this->assertEmpty(
+			WC_Admin_Api_Init::queue()->search(
+				array(
+					'hook' => 'dependent_action',
+				)
+			)
+		);
+		// verify that a follow up action was queued.
+		$this->assertCount(
+			1,
+			WC_Admin_Api_Init::queue()->search(
+				array(
+					'hook' => WC_Admin_Api_Init::QUEUE_DEPEDENT_ACTION,
+					'args' => array( 'dependent_action', 'blocking_job' ),
+				)
+			)
+		);
+
+		// queue an action that isn't blocked.
+		WC_Admin_Api_Init::queue_dependent_action( 'another_dependent_action', 'nonexistant_blocking_job' );
+		// verify that the dependent action was queued.
+		$this->assertCount(
+			1,
+			WC_Admin_Api_Init::queue()->search(
+				array(
+					'hook' => 'another_dependent_action',
+				)
+			)
+		);
+		// verify that no follow up action was queued.
+		$this->assertEmpty(
+			WC_Admin_Api_Init::queue()->search(
+				array(
+					'hook' => WC_Admin_Api_Init::QUEUE_DEPEDENT_ACTION,
+					'args' => array( 'another_dependent_action', 'nonexistant_blocking_job' ),
+				)
+			)
+		);
+
+		// clean up.
+		WC_Admin_Api_Init::queue()->cancel_all( 'another_dependent_action' );
+		WC_Admin_Api_Init::queue()->cancel_all( WC_Admin_Api_Init::QUEUE_DEPEDENT_ACTION );
+	}
+}
diff --git a/plugins/woocommerce-admin/tests/bootstrap.php b/plugins/woocommerce-admin/tests/bootstrap.php
index 0128f58c4b9..616c248cb18 100755
--- a/plugins/woocommerce-admin/tests/bootstrap.php
+++ b/plugins/woocommerce-admin/tests/bootstrap.php
@@ -114,3 +114,4 @@ wc_test_includes();
 // Include wc-admin helpers.
 require_once dirname( __FILE__ ) . '/framework/helpers/class-wc-helper-reports.php';
 require_once dirname( __FILE__ ) . '/framework/helpers/class-wc-helper-admin-notes.php';
+require_once dirname( __FILE__ ) . '/framework/helpers/class-wc-test-action-queue.php';
diff --git a/plugins/woocommerce-admin/tests/framework/helpers/class-wc-test-action-queue.php b/plugins/woocommerce-admin/tests/framework/helpers/class-wc-test-action-queue.php
new file mode 100644
index 00000000000..dd2ddb0ad05
--- /dev/null
+++ b/plugins/woocommerce-admin/tests/framework/helpers/class-wc-test-action-queue.php
@@ -0,0 +1,34 @@
+<?php
+/**
+ * Action Queue Test Helper
+ *
+ * @version 3.5.0
+ * @package WooCommerce/Tests
+ */
+
+/**
+ * WC_Admin_Test_Action_Queue class.
+ */
+class WC_Admin_Test_Action_Queue extends WC_Action_Queue {
+	/**
+	 * Actions queue.
+	 *
+	 * @var array
+	 */
+	public $actions = array();
+
+	/**
+	 * Override of WC_Action_Queue::schedule_single that just places
+	 * actions into the $actions instance variable for future inspection.
+	 *
+	 * @param int    $timestamp Timestamp.
+	 * @param string $hook Hook.
+	 * @param array  $args Args.
+	 * @param string $group Group.
+	 * @return bool
+	 */
+	public function schedule_single( $timestamp, $hook, $args = array(), $group = '' ) {
+		$this->actions[] = compact( 'timestamp', 'hook', 'args', 'group' );
+		return true;
+	}
+}