Shopify Inventory Management: Benefits and Challenges

The most important feature supported by Shopify is Inventory Management to all its merchant. Inventory Management is a critical aspect of any E-commerce business. An organized inventory helps any business to prevent any loss, track inventory, returns, and spoilage.

It reduced overall inventory costs and optimized, fulfilled, and paved a better customer service. Shopify inventory management provides features and structures to all brands needed to run a successful business.

Scroll down to know about its benefit and challenges you may face while using it as your inventory management software.

Benefits of Shopify Inventory Management

Whether you are a small business owner or an owner of a multi-store company, Shopify helps your website run in no time. It is equipped with several native tools to manage your inventory with instant boosting technology.

The technology is ideal for businesses if you purchase finished goods from the supplier and don’t require complicated steps to manage your inventory. You can also sync your Shopify E-commerce shop to Facebook, Amazon, Pinterest, and mobile apps to enhance your business.

Inventory Tracking

The software allows you to set up each product and organize them by category, type, season, and much more. Each listing includes an inventory field, which you can adjust manually. You don’t need to possess the coding ability or any in-depth technical knowledge. Shopify retailers enjoy the freedom of concern gained from a hosted platform that gives an out-of-box solution.

Variation Inventory Column

It is challenging to assemble all the elements required for an e-commerce store. Shopify merchants can use variant brands of a single product in one place. You may create any number of versions for a single brand like size, color, price, weight, etc.

It helps retailers succeed without getting nickel and dimed to death with upgrades, add-ons, and other features.

Bulk Inventory Updates

You can easily update bulk inventory using spreadsheets through Shopify. Manual tracking of the stock increases your workload. However, it is impossible to manually update and synchronize inventory counts between locations and across platforms. Shopify allows you to sync inventory across channels and provide real-time visibility, thus improving sales.

Inventory History

The software also allows you to view the last ninety days of inventory history for variant products. You may also make changes and adjustments if required as per the date.

Challenges of Using Shopify Inventory Management

For the brands with sophisticated workflow, the native Shopify inventory management may present a few problems. There are unique software needs that multichannel or multi-warehouses require to run their businesses successfully.

Companies selling products across channels will have to manually implement multichannel inventory management on Shopify and other channels to maintain it from one place. It is a time-consuming process and puts companies at risk due to inconsistencies in inventory levels across their channels.

Listing of the same product across channels

Although Shopify makes inventory management easy for retailers, yet inventory tracking of variations under one list is difficult to manage multiple products that pull from the same inventory resource.

Automated inventory replenishment

Multichannel brands manage extensive SKU library, and maintaining its inventory replenishment process may become complicated. They need systems that automatically generate purchase orders when stock is low and recommend order quantities to streamline replenishment.

Locked or extra inventory

Retailers do hold additional stock for pre-order sales or special promotional offers before showing them on the listing category. These companies need system software that will display total inventory in their stock, but also differentiate the locked away or another list from the rest.

Cross-channel visibility

Multichannel companies need a unified and full view of their inventory and business analytics. It includes- stock shared across listing, complete visibility of warehouse inventory, the profitability of each SKU across channels.

Although these features aren’t available in native Shopify, it doesn’t mean you can’t avail of these functionalities. The Shopify App Store has all the tools you want that make managing your inventory easier. There are numerous apps and plugins; you can choose and enjoy it as a retailer. These apps can be integrated into e-commerce stores to provide advanced inventory control.

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