Managing your inventory on Shopify is a crucial aspect of running a successful online store. It ensures that you have adequate stock levels, minimizes order cancellations due to stockouts, and helps you plan for future sales growth. In this comprehensive guide, we will walk you through setting up, organizing, and managing your inventory on Shopify.
To start, you'll need to add products to your Shopify store. From your Shopify admin dashboard, navigate to "Products" and click "Add product." Enter the necessary details, such as the product's title, description, images, and pricing. To track inventory, ensure you enable the "Track quantity" option under the "Inventory" section.
If you have a large number of products to add, importing them through a CSV file is a more efficient method. From your Shopify admin, go to "Products" and click "Import." Download the sample CSV file provided by Shopify, and use it as a template for your product data. Once your CSV file is ready, upload it to import your products.
To track inventory on individual products, go to the product's detail page in your Shopify admin. Under the "Inventory" section, you can input the quantity of the item you have in stock. You can also enable "Allow customers to purchase this product when it's out of stock" if you want to allow backorders.
Collections help you organize your products into categories that make it easier for customers to find what they're looking for. To create a collection, go to "Products" > "Collections" in your Shopify admin, and click "Create collection." Choose a name for the collection, and set the conditions for the products that belong in it. You can manually add products or use automated conditions based on product details.
Tags are another way to organize and filter your products. You can add tags to a product's detail page under the "Tags" section. Tags can be used to create automated collections, filter products in the admin dashboard, or enable customers to filter products on your storefront.
Shopify allows you to transfer inventory between locations if you have multiple warehouses or stores. To do this, go to "Products" > "Transfers" in your Shopify admin and click "Create transfer." Select the products you want to transfer, specify the source and destination locations, and input the quantities being transferred.
Maintaining accurate records of your inventory is crucial to prevent stockouts and overstocking. Ensure that you regularly update the quantity of your products in your Shopify store and that these numbers match your physical inventory.
Perform regular inventory audits to verify that your recorded inventory levels match your actual stock. This helps identify discrepancies, lost or damaged items, and potential theft.
Set reorder points for each product to determine when you need to replenish stock. Reorder points should be based on factors such as lead time, sales velocity, and safety stock levels.
Utilize inventory management apps or automation tools to streamline the reordering process. This ensures that you always have adequate stock levels without the need for manual intervention.
Anticipate fluctuations in demand due to seasonal trends or special events. Adjust your inventory levels accordingly to meet the changing needs of your customers.
Stocky is a powerful inventory management app developed by Shopify. It offers features such as demand forecasting, purchase order management, and supplier management. Stocky is available for free to Shopify POS Pro subscribers.
Simple Inventory is a user-friendly app that helps you manage your inventory levels, set low stock alerts, and generate inventory reports. It's a great option for small businesses looking for a straightforward inventory management solution.
Orderhive is a comprehensive inventory and order management platform that integrates seamlessly with Shopify. It offers features such as multi-channel inventory tracking, order processing, and shipping management.
TradeGecko (now known as QuickBooks Commerce) is a robust inventory management solution that integrates with Shopify. It provides advanced features such as multi-location inventory management, order automation, and detailed reporting.
Allow customers to pre-order products that are not yet in stock. This helps you gauge demand and ensures that customers can secure the item they want without waiting for it to become available.
Enable backordering for products that are temporarily out of stock. This allows customers to purchase the item and receive it once it's back in stock.
If a product is out of stock and you don't want to allow backorders, you can choose to hide it from your storefront. This prevents customers from being disappointed when they can't purchase the item.
Offer customers the option to sign up for restock notifications. This helps you gauge demand for out-of-stock items and keeps customers informed about when they can purchase the product again.
Sales reports provide insights into your best-selling products, revenue, and overall store performance. Use this data to make informed decisions about inventory management and product offerings.
Inventory reports offer detailed information about stock levels, product costs, and inventory value. These reports help you identify slow-moving items and make better decisions about stock management.
Monitor low stock reports to identify products that are running low on inventory. This helps you prevent stockouts and ensure that you reorder products in a timely manner.
Analyze individual product performance by examining sales data, profit margins, and inventory turnover. Use this information to optimize your product catalog, pricing strategy, and inventory management.
Managing your inventory on Shopify is essential for the success of your online store. By setting up your inventory correctly, organizing your products, implementing best practices, and utilizing inventory management apps, you can efficiently manage stock levels and meet customer demands. Regularly analyze your inventory performance to make data-driven decisions and optimize your store's operations.
FAQs
1. How do I enable inventory tracking for a product in Shopify?
On the product's detail page in your Shopify admin, enable the "Track quantity" option under the "Inventory" section.
2. What is the difference between pre-orders and backorders?
Pre-orders allow customers to purchase a product that is not yet in stock, while backorders let customers buy an item that is temporarily out of stock, with the understanding that it will be shipped when it becomes available again.
3. Can I manage inventory for multiple locations in Shopify?
Yes, Shopify allows you to manage inventory for multiple locations, such as warehouses or retail stores.
4. How can I transfer inventory between locations in Shopify?
To transfer inventory between locations, go to "Products" > "Transfers" in your Shopify admin, and create a new transfer by selecting the products, source location, and destination location.
5. What factors should I consider when setting reorder points for my products?
When setting reorder points, consider factors such as lead time, sales velocity, and safety stock levels to ensure you maintain adequate inventory levels.
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