Do You Have to Track Inventory in Shopify to Ship?

Table of Contents

1. Introduction
2. The Importance of Inventory Tracking
3. Setting Up Inventory Tracking in Shopify
4. Do You Have to Track Inventory to Ship?
5. Common Challenges and Solutions
6. Benefits of Using Inventory Tracking Apps
7. Conclusion
8. FAQ

Introduction

Imagine running a bustling online store with a constant influx of orders. You might be surprised to learn that many eCommerce entrepreneurs face significant hurdles when it comes to managing their inventory on Shopify, especially in relation to shipping. If you're one of them, you may be wondering: Do you have to track inventory in Shopify to ship?

In this blog post, we'll delve into the intricacies of Shopify's inventory management, outline its implications for shipping, and provide you with actionable insights to optimize your operations. Whether you're a small business owner or managing a large-scale e-commerce store, understanding how Shopify handles inventory can streamline your processes and boost customer satisfaction.

The Importance of Inventory Tracking

Inventory tracking isn't just a backend task; it's the backbone of your fulfillment process. Here’s why:

1. Accuracy in Fulfillment: Tracking inventory helps ensure that you know exactly how much stock you have on hand, reducing the risk of overselling products you cannot deliver.
2. Customer Satisfaction: When you can confidently promise delivery because you have stock, you build trust with your customers.
3. Cost Savings: Proper inventory management can reduce storage costs and prevent dead stock, thereby saving you money in the long run.
4. Data-Driven Decisions: Detailed inventory tracking provides valuable insights into sales trends, enabling you to make informed decisions about restocking and discontinuing products.

With these benefits in mind, let’s explore Shopify’s inventory tracking and its necessity for shipping.

Setting Up Inventory Tracking in Shopify

Why Track Inventory?

While it might not be mandatory to track inventory in Shopify to enable shipping, doing so provides numerous operational advantages. If you're managing limited stock, inventory tracking is essential to avoid selling more products than you have available, thus preventing customer dissatisfaction and potential loss of future sales.

How to Enable Inventory Tracking

To enable inventory tracking on Shopify, follow these steps:

1. Go to Products: In your Shopify admin, go to the "Products" section.
2. Select a Product: Click on the specific product for which you want to enable inventory tracking.
3. Inventory Section: Scroll down to the "Inventory" section.
4. Enable Tracking: Check the "Track quantity" box.
5. Location and Quantity: Enter the quantity you have in stock and specify the locations where the inventory is stored.

Managing Multiple Locations

Shopify allows you to manage inventory across multiple locations, such as warehouses, retail stores, or other fulfillment centers. This capability ensures that you can maintain accurate stock levels and fulfill orders from the most logical location, potentially saving on shipping costs and reducing delivery times.

1. Add Locations: Go to "Settings" > "Locations” and add new locations as needed.
2. Assign Inventory: When updating product inventory, distribute the stock across the different locations.

Inventory and Shipping Integration

Shopify integrates inventory management directly with order fulfillment processes. This seamless integration ensures that as soon as an order is placed, the inventory levels update automatically, maintaining real-time accuracy. This integration includes:

1. Purchase Orders: Generate POs for suppliers within Shopify to restock inventory efficiently.
2. Stock Alerts: Set low-stock alerts to avoid stockouts.
3. Automated Updates: Automatically update inventory counts when sales occur or when you receive new stock.

Do You Have to Track Inventory to Ship?

While technically, you do not have to enable inventory tracking to ship orders in Shopify, doing so offers substantial benefits:

Shipping Without Tracking

If you opt not to track inventory:

• All Products Always in Stock: Shopify will never mark an item as out of stock, which can lead to overselling.
• Manual Adjustments: You will need to manually manage inventory levels and ensure timely updates when stock levels change.
• Potential Errors: Increased risk of errors and customer dissatisfaction if products are oversold.

Shipping With Tracking

If you choose to track inventory:

• Automated Processes: Shopify automatically updates inventory levels with each sale.
• Avoid Overselling: Items are marked out of stock when inventory counts are zero, avoiding overselling.
• Streamlined Fulfillment: Integration with shipping and fulfillment apps that can automate the process.

Common Challenges and Solutions

Challenge 1: Multiple Warehouse Management

Merchants often face challenges managing inventory across multiple warehouses. Issues arise when products are marked available at one location but are out of stock at another.

Solution: Use Shopify's multi-location inventory feature to manage and sync stock levels across all locations. Automation apps can also designate preferred fulfillment centers based on customer location to optimize shipping.

Challenge 2: Inventory and Shipping Rules

A significant pain point is integrating shipping rules with inventory levels. For example, an item may be out of stock in a primary warehouse but available in a secondary one, complicating shipping logistics.

Solution: Define clear shipping profiles within Shopify. These profiles can include specific rules for each warehouse, ensuring that orders are fulfilled from the right location.

Challenge 3: Tracking Packaging and Additional Items

Tracking essential packaging supplies like shipping boxes can be difficult, leading to inefficiencies.

Solution: While Shopify may not natively track packaging materials, third-party apps can fill this gap by integrating packaging tracking into your Shopify management system.

Benefits of Using Inventory Tracking Apps

Several apps can enhance Shopify's built-in inventory tracking:

1. Stocky: Great for comprehensive inventory management, including purchase orders and supplier management.
2. TradeGecko: This app offers real-time inventory tracking, bulk updating, and powerful analytics.
3. Skubana: Ideal for advanced inventory and order management, particularly for businesses using multiple sales channels.

Conclusion

In summary, while you don't have to track inventory in Shopify to ship orders, doing so provides substantial benefits that streamline operations, reduce costs, and enhance customer satisfaction. By leveraging Shopify’s built-in tools and integrating with third-party apps, you can ensure a smoother, more efficient fulfillment process.

Inventory tracking is a crucial aspect of running a successful eCommerce business. With the right setup, you can avoid common pitfalls, optimize your supply chain, and ultimately deliver a better experience for your customers.

FAQ

What are the advantages of tracking inventory in Shopify?

Tracking inventory helps maintain real-time stock levels, reduces the risk of overselling, and automates various fulfillment processes, improving overall efficiency and customer satisfaction.

Can I manage inventory across multiple locations in Shopify?

Yes, Shopify’s multi-location feature allows you to manage and distribute inventory across various warehouses, retail locations, and fulfillment centers.

Are there apps that can help with inventory management in Shopify?

Yes, apps like Stocky, TradeGecko, and Skubana provide advanced inventory management features, including real-time tracking, purchase order management, and comprehensive analytics.

Do I need to track packaging materials in Shopify?

While Shopify doesn't natively track packaging materials, third-party apps can integrate this feature, ensuring you maintain an adequate supply of essential shipping items.

By understanding and implementing effective inventory management practices in Shopify, your business can achieve greater operational efficiency and higher customer satisfaction.