How Does the Shopify Inventory Work_

How Does the Shopify Inventory Work?

As a store owner, you might be wondering how the Shopify inventory system works.

What you put in stock is what’s available on your site and what shoppers see as they shop – no magic behind the scenes!

Read our guide below and make sure that you stay on top of your ecommerce game.

Monitor your stocks

When your goods and services are too awesome, you might run short on a number of items.

This is when Inventory Management comes into play. 

You don’t want your customers to pay for an item that is out of stock. By following a series of simple, easy methods, you can regain a lost sale due to items running out of stock.

Good thing is you can keep track of how much you need to restock in order for your shop to run smoothly.

You can:

  • manually adjust the number of stocks per item. 
  • get notified when your items are running low by easily downloading an app from the Shopify app store. 

A good app to get you started is the Shopify Inventory Management app.

Shopify has an embedded algorithm that gives you real-time stats on your store and you can even import vital reports into printed copies whether it be daily, weekly, or quarterly.

Inventory management is the backbone of every business, that’s why learning the right ways to do it is the best choice.

How do you do inventory on Shopify?

Inventory is the list of products available in your store. 

This is a very crucial part of the business since it determines your potential revenue and gives you the signal to restock your product and variants. 

Having the knowledge to run your inventory accurately ensures your platform’s success.

Below are the steps to get started with Shopify Inventory:

  1. From your Admin page, press the Products’ dropdown button;
  2. Choose All Products  from the dropdown (If your product has many specifications or variants, click the specific product you want to track);
  3. In the Inventory Section, press Track Quantity and customize the number of products you want to show in your store;
  4. Lastly, Save your progress.

Just a friendly advice: If you are using Shopify POS, the platform will automatically assume that you still have products to sell on stock. 

Thus, making you sell the product despite the quantity reaching zero in your online inventory. This only happens when you activate Continue selling when out of stock in your Shopify settings.

Make sure to check the said configuration on the settings page to avoid confusion for you and your customers.

Tricks and tips on order to accurately handle Shopify inventory

The 3 main things essential for you to successfully manage your Shopify Inventory are Viewing, Adjusting, and Tracking the Adjustment History which are explained below.


To view your product quantity, go to the Inventory tab. Another way you can do this is to click the Products page. 

This tab shows a combined inventory count for all the variants of each product.

For customized viewing, you can tag your products or simply use the filter option.


Adding, deleting, and editing product quantity is a regular task in monitoring your stocks. This is the time when you will need the help of apps readily available to perform the repetitive tasks for you.

Below are the easy steps to update your inventory:

  1. From the Admin page, choose Products;
  2. Press Inventory;
  3. On the Inventory page, you can see the Update Quantity option where you can add items or subtract (make sure to use a negative number to subtract from your inventory);
  4. Once you have a look over the desired amounts and make sure that they are all correct, click Save.

Track History

As you update your inventory, all the changes you make can be seen in the Shopify app.

The report will consist of the items on the list below:

  1. Date
  2. Event (the reason for adjustment) ;
  3. Adjusted by (the staff who updated the quantity);
  4. Adjustment (the exact amount – whether it be a negative number for subtracted quantity or a positive number for added number);
  5. Quantity (the final number of adjusted quantity).

Does Shopify keep up with inventory?

Shopify has a smart process which saves you time to input everything manually.

This is possible by activating Shopify’s inventory tracking option for your products and variants in the Settings menu.

Once your staff or supplier adds items to a certain product, Shopify updates the number of items in the inventory.

Shopify offers an array of helpful apps which can help you track your inventory.

Below are some advantages of inventory apps for Shopify:

  1. Send emails to your customers once your stock is back up. This is a very good thing for you to recover lost sales. It helps you assure your audience that your store is top-notch. 

You can also drizzle some creativity in the emails your customers will get. This method is proven to be very effective to get your customers to shop in your store with eagerness to buy the item they’ve been waiting for. 

Lastly, beautifully crafted emails are known to be forwarded to customer’s friends, making you reach a wider audience.

  1. Publish an ongoing sale in bulk. This saves you time and promises efficiency market-wise. 

You can also increase the price after you decide that the sales days are over.

  1. Get a ping whenever your stock is running low. This can be done through email notifications. You will be ready to restock your items as long you have your phone with you. 

Stocks running low are very common whenever you have products on sale. 

Updates regarding your store ensure that you will stay up to date to cater to your audience’s needs.

Why does my Shopify product say sold out?

Mostly, Shopify users encounter a “Sold out” label next to the product after adding it to the Inventory. 

This might sound confusing, but don’t worry. Here is the solution:

  1. Check your Settings and go to Inventory Location;
  2. Select one of your current locations;
  3. Fill in the check box named Fulfill online orders from this location;
  4. Once all of these steps are done, you can then view your added item by clicking View Inventory at this location.

By applying the easy steps I enumerated above, you can trust that your products will reach your audience with the potential to grow your community as well. 

A well-managed inventory is key to a more convenient shopping experience for everyone.

Maria Cristina M.
Maria Cristina M.

Maria-Cristina is a Digital Psychologist with 5 years of experience in SEO and conversion rate optimization. She holds an MA thesis on the effects of emotions in written and video content. She loves to spend time near the ocean and watch horror movies.

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