Shopify Inventory Management Beginner Tutorial - Basics to know for optimizing Shopify inventory

Introduction

Welcome to the Skew Savvy YouTube channel! In this article, we'll explore the fundamentals of Shopify Inventory Management and how it can enhance your online store. From understanding the differences between your storefront and inventory to leveraging Shopify's native capabilities, this guide will help you optimize your Shopify store effectively.

What is Shopify Inventory?

Shopify Inventory refers to the system that keeps track of products available for sale, including quantities, variants, and fulfillment locations. Differentiating between your storefront and actual inventory management is essential for efficient operations, especially when utilizing third-party fulfillment organizations or inventory management apps.

Key Features of Shopify Inventory Management

1. Tracking Quantities

Shopify allows you to keep track of the available quantities for each product variant. This ensures that you know how much stock you have at all times and can manage your inventory accordingly.

2. Managing Multiple Locations

Shopify Inventory Management enables businesses to operate from various locations. You can set up and manage different warehouses or store locations, tracking inventory levels separately for each.

3. Inventory Transfers

The system facilitates transfers between locations, allowing you to move stock efficiently. You can create transfers to document movements of inventory from one location to another.

4. Custom Fulfillment

You can also set up custom fulfillment services to direct orders to third-party providers. This feature sends email notifications to fulfillment centers but does not provide order updates.

5. Committed, Incoming, and Available Inventory

Shopify differentiates between committed inventory (items already ordered by customers), incoming inventory (ordered stock yet to arrive), and available inventory (current stock available for sale). Understanding these metrics is critical for managing your supply chain effectively.

6. SKU and Barcode Information

Each product can have a Stock Keeping Unit (SKU) and a barcode, which are crucial for inventory tracking, identifying products, and interfacing with warehouse management systems.

7. Adjustments and History Tracking

Shopify allows you to adjust inventory values and provides a history of changes. This helps in identifying discrepancies or issues you might encounter in your stock levels.

8. Continue Selling When Out of Stock

Shopify has the option to continue selling items even when they are out of stock, allowing for backordering capabilities.

How to Optimize Your Shopify Inventory Management

To optimize your Shopify inventory management, follow these essential steps:

• Set Up Locations: Create multiple locations for your inventory and manage where orders are fulfilled from.
• Track Variants: Be diligent in managing product variants, ensuring accurate quantities at each location.
• Utilize Transfers: Use transfers to document stock movements between locations or to record new inventory arrivals.
• Leverage the Shopify App: Use the Shopify inventory app to adjust quantities and manage inventory directly from your mobile device.
• Automate Where Possible: Implement an inventory management system like Skew Savvy to automate tasks, track margins, and generate reports easily.

Conclusion

In summary, understanding and utilizing Shopify's inventory management capabilities can significantly enhance the efficiency of your online store. By leveraging its full features, you will be able to optimize stock levels, manage multiple locations, and streamline operations.

Keywords

Shopify Inventory, Inventory Management, Product Variants, Stock Keeping Unit (SKU), Barcode, Custom Fulfillment, Inventory Transfers, Committed Inventory, Available Inventory, Automated Inventory Management, Third-party Fulfillment.

FAQ

1. What is Shopify Inventory Management?

Shopify Inventory Management is the system within Shopify that tracks product quantities, manages multiple locations, and handles stock levels for your online store.

2. How can I track inventory across multiple locations?

You can set up and manage different locations in your Shopify settings, allowing you to monitor stock levels separately for each location.

3. Can I continue selling items that are out of stock?

Yes, Shopify allows you to continue selling products even when they are out of stock, enabling backordering.

4. How do I create inventory transfers in Shopify?

Inventory transfers can be created within your Shopify dashboard under the inventory section, where you can input the origin, destination, and details of the products being transferred.

5. What happens if I have a discrepancy in my inventory?

Shopify provides a way to make adjustments and keep track of each change. You can investigate discrepancies using the inventory history feature to see what adjustments were made and why.

By following these steps and leveraging the capabilities of Shopify Inventory Management, you'll set yourself up for success in your e-commerce endeavors!