Introduction

Effective inventory management is one of the key cornerstones of any successful e-commerce business, and is also one of the most important aspects for a smooth and consistent operation. By having a clear and well thought out inventory management strategy, you will be well positioned to increase your sales, whilst also maintaining control over your stock. Here’s a comprehensive guide to managing your product inventory on Shopify.

Key Strategies for Managing Product Inventory on Shopify

Track Stock Levels

  • Key Points:

    • Keep a very close watch on stock levels for each product.

    • Use the built in functionality in Shopify, or alternatively an external app for better control.

    • Ensure that your chosen tracking system is reliable and accurate.

Set Up Low Stock Notifications

  • Key Points:
    * Set up notifications that will send you an alert when products fall below a certain threshold.

    • Use this to ensure you are always informed of your stock levels, and never run out of a key product.
      * Ensure that your notifications are sent to the correct people.

Use Inventory Variants

  • Key Points:
    * Use product variations, to track the stock levels of different colors, sizes, and other options, separately.

    • This will give you more control over each individual product, and will be a much more accurate way to track your stocks.

    • Be sure to fill in your variants correctly, to avoid any inventory errors.

Utilize Inventory Barcodes

  • Key Points:

    • Use barcodes to make your inventory management more efficient, and also to reduce the risk of human errors.
      * By using a systemized method of tracking products, you will also be able to locate them more quickly in your warehouse.

    • Ensure that you make use of barcode scanners, and other related technology.

Manage Multiple Locations

  • Key Points:

    • Use Shopify to track your stock across different locations and warehouses.

    • If you have products stored in multiple different warehouses, ensure you have a clear method of tracking them.

    • Ensure you are fully aware of all locations, and their related stock levels at any time.

Use Shopify Apps

  • Key Points:
    * Consider using various Shopify apps to improve inventory management, and to add extra functions.

    • Research all apps that you choose, and make sure that they are from trusted developers.

    • Only install apps that are truly essential for the success of your business, and that provide features you cannot get through your core Shopify platform.

Forecasting Inventory Needs

  • Key Points:
    * Utilize sales data to accurately forecast future inventory requirements.
    * By using your past sales history, you will be better equipped to predict when you need to reorder products, and to also know how many to order.

    • Always be aware of any seasonal trends or patterns.

Regular Audits

  • Key Points:

    • Regularly check and audit your inventory levels to ensure all stock takes are accurate.

    • This will help to prevent any errors from becoming larger issues.

    • Always ensure that stock counts are accurate.

Use a Good System

  • Key Points:
    * Create a clear system for managing all aspects of inventory, and that is both easy to understand and easy to use for all staff.
    * All staff should know what they need to do, and how they need to interact with the system.
    * Ensure the system is easy to use, and that it is consistently adhered to.

Use Automation Where Possible

  • Key Points:

    • Look for areas where automation can be utilized, such as purchase orders and stock replenishment, which can greatly reduce the manual work that your team will need to engage in.

      • Ensure that your automated systems have safeguards and error reporting mechanisms, so that you are alerted to any issues as soon as they arise.

    • By automating tasks, you will be able to greatly increase your efficiency.

Conclusion

By utilizing the above tips, you will be able to improve all aspects of your inventory management, which will lead to a more efficient, more profitable, and more successful Shopify store.