Shopify Ops Glossary
Inventory Management
The process of tracking and controlling stock levels to meet demand.
Definition
Inventory management encompasses receiving, storing, tracking, and replenishing stock. For Shopify brands, it involves syncing physical inventory with Shopify's inventory tracking to prevent overselling.
Why It Matters for Shopify Brands
Poor inventory management causes stockouts (lost sales, angry customers who ordered out-of-stock items) and overstock (tied-up cash, storage costs). Both have direct ops consequences.
Benchmarks
Target stockout rate: under 2% of SKUs at any given time. Ideal inventory turn depends on category — fashion turns 4–6x/year, consumables 12–24x/year.
Need help improving your Inventory Management?
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