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InventoryJune 4, 2026 · 13 min read

Shopify Inventory Tracking: Complete Setup Guide (2026)

Everything you need to set up inventory tracking on Shopify — from enabling native stock counts to knowing when the built-in tools stop being enough. Covers the six-step setup, what Shopify cannot do on its own, and how to choose the best tracking app for your store size.

What Shopify inventory tracking actually includes

Before adding any apps, it helps to understand exactly what Shopify gives you out of the box. The built-in tools are genuinely capable for smaller stores — but have clear limits that matter as you grow.

Stock quantity per product and variant
Multi-location stock tracking
Inventory transfers between locations
Manual inventory adjustments with reason codes
Basic low stock alerts (static threshold)
Inventory history and adjustment log
CSV import and export
Daily sales velocity per productneeds app
Auto-calculated reorder pointsneeds app
Days of stock remainingneeds app
ABC analysis by revenue contributionneeds app
Dead stock detectionneeds app
AI demand predictionsneeds app
Profit margin per productneeds app
Purchase order managementneeds app
Velocity-based smart alertsneeds app
The pattern: Shopify tracks what you have right now. It does not tell you how fast it is depleting, when to reorder, or which products are at risk. That intelligence layer is what inventory tracking apps add.

How to set up Shopify inventory tracking — step by step

If you are starting from scratch or auditing your current setup, follow these six steps in order. Each one builds on the previous.

01

Enable inventory tracking per product

Shopify does not track inventory by default on every product. Go to Admin → Products → select a product → scroll to Inventory section → check "Track quantity." Do this for every product you want tracked. For products with variants (sizes, colours), enable tracking at the variant level.

Pro tip: Use the bulk editor to enable tracking across multiple products at once. Products → select all → Edit products → add the "Track inventory" column.
02

Enter your starting stock counts

Once tracking is enabled, enter the current quantity for every product. Go to Admin → Products → Inventory. You can update quantities inline by clicking the number, or export the inventory CSV, fill in quantities in bulk, and reimport. If you have 50+ products, the CSV approach saves significant time.

Pro tip: Do a physical count before entering numbers. Starting with accurate data matters — inaccurate starting counts compound over time.
03

Set up low stock alerts in Shopify

Shopify can email you when products drop below a threshold. Go to Admin → Settings → Notifications → Low inventory. You can also set this per product using Shopify Flow: trigger "Inventory quantity changed" → condition "Inventory quantity is less than [your number]" → action "Send email." Set different thresholds per product — not one number for everything.

04

Set your inventory policy for out-of-stock products

Shopify lets you choose what happens when stock hits zero. Per product: continue selling (oversell), stop selling, or require a purchase order. For most stores, "stop selling" is the safest default. For made-to-order products, "continue selling" makes sense. Set this thoughtfully per product category.

05

Configure multi-location tracking if needed

If you have multiple warehouses, retail locations, or fulfilment centres, set up each location in Admin → Settings → Locations. Assign stock quantities per location. Shopify will route orders to the nearest or priority location based on your fulfilment rules.

Pro tip: Even if you only have one location today, set it up properly from the start. Adding locations later and reallocating stock is messier than starting clean.
06

Build a weekly review habit

Shopify's tracking only shows you what you have right now. It does not tell you what is running low relative to how fast it sells. Set a fixed weekly reminder — 15 minutes, same day — to go to Admin → Products → Inventory, sort by quantity ascending, and check anything that looks concerning.

Pro tip: Sorting by quantity alone is misleading. 20 units of a fast-mover is a crisis. 20 units of a slow-mover is months of stock. Always compare to sales pace.

Where Shopify inventory tracking falls short

Shopify's built-in tracking works well for small, simple catalogs. The gaps become painful as your store grows. Here is where most sellers hit the ceiling:

No sales velocity data

Shopify shows your stock count. It does not show how fast each product is selling. Without velocity, you cannot calculate days of stock remaining — the number that actually tells you if you are in danger.

Static alerts, not smart ones

Shopify alerts at a unit count threshold you set manually. 50 units of a product selling 25/day is 2 days of stock. 50 units of a product selling 1/week is almost a year. The same threshold gives you completely different outcomes depending on velocity.

No reorder point calculation

Shopify cannot tell you when to reorder based on your supplier lead time and sales pace. You set the reorder threshold manually — and most sellers either set it too low (stockouts) or too high (overstock).

No dead stock visibility

Products that have not sold in 60+ days do not surface anywhere in Shopify Admin. Dead stock accumulates silently until you run a manual report and notice it — which most sellers do not do regularly.

No profit margin per product

Shopify has a cost field but does not calculate or display margin anywhere in the dashboard. You are tracking revenue but not profitability — which means you could be reordering products that are losing you money.

No purchase order management

Since Stocky was discontinued in 2026, Shopify has no native purchase order workflow. Creating, sending, and tracking POs with suppliers requires either a spreadsheet or a third-party app.

Signs you need a tracking app

You have had a stockout you did not see coming
You manage 50+ SKUs with different sales speeds
You check stock manually more than once a week
You do not know which products are running low relative to how fast they sell
Your reorder decisions are based on gut feeling, not a formula
You have products sitting unsold for 60+ days
You cannot see profit margin per product in one place

Best Shopify inventory tracking apps compared

Matched to store size and budget. Debnix is our product — we have tried to represent the others accurately.

AppPriceVelocity AlertsReorder PointsABC AnalysisDead StockAI PredictionsProfit Tracking
This is usDebnix
50–500 SKUs, solo sellers
$21.99/mo
Stockful
Analytics-focused, budget
Free–$29/moBasic
Prediko
DTC brands, full PO workflows
$49–349/mo
Inventory Planner
500+ SKUs, complex supply chains
$99–299/mo
This is usDebnix$21.99/mo
50–500 SKUs, solo sellers
Velocity Alerts
Reorder Points
ABC Analysis
Dead Stock
AI Predictions
Profit Tracking
StockfulFree–$29/mo
Analytics-focused, budget
Velocity Alerts
Reorder Points
ABC Analysis
Dead Stock
AI PredictionsBasic
Profit Tracking
Prediko$49–349/mo
DTC brands, full PO workflows
Velocity Alerts
Reorder Points
ABC Analysis
Dead Stock
AI Predictions
Profit Tracking
Inventory Planner$99–299/mo
500+ SKUs, complex supply chains
Velocity Alerts
Reorder Points
ABC Analysis
Dead Stock
AI Predictions
Profit Tracking

For a deeper comparison including pricing tiers and individual app reviews, see our full Shopify inventory app comparison.

5 pro tips for better inventory tracking

These habits separate stores with accurate, reliable tracking from stores that are always slightly surprised by their stock situation.

01
Track days of stock, not just unit count

50 units means nothing without knowing how fast it sells. A product selling 25/day has 2 days of stock. A product selling 1/week has months. Always think in days of stock: Current Stock ÷ Daily Sales = Days Remaining.

02
Use SKUs consistently across every tool

Your Shopify SKU should match your supplier's product code and your spreadsheet reference. Inconsistent SKUs are how stock gets lost between systems — a receiving error where someone logs the wrong SKU can go undetected for months.

03
Audit your counts at least quarterly

Shopify inventory drifts over time — unreceived shipments, damaged units not logged, fulfilment errors. A quarterly physical count against your Shopify records catches variances before they become large. See our full guide on running a Shopify inventory audit.

04
Set cost per item for every product

Shopify has a "Cost per item" field that is optional and mostly ignored. Fill it in for every product. It enables profit margin calculations and makes COGS reporting accurate. Without it you are tracking stock but flying blind on profitability.

05
Log every inventory adjustment with a reason

Shopify lets you select a reason when adjusting stock manually — Correction, Received, Damaged, Theft. Always use these. Reason-coded adjustments create an audit trail that is invaluable when investigating discrepancies later.

Frequently asked questions

Does Shopify automatically track inventory?

Shopify tracks inventory automatically once you enable tracking per product. Stock counts decrease when orders are fulfilled and can increase when you log received shipments or process returns. However, tracking must be manually enabled per product — it is not on by default. Shopify does not automatically calculate when to reorder, how fast each product sells, or which products are at risk of stocking out.

What is the best inventory tracking app for Shopify?

It depends on your store size and what you need beyond basic tracking. For stores with 50-500 SKUs wanting AI predictions, reorder points, and profit tracking at a low price point, Debnix at $21.99/month is the most feature-complete budget option. For larger stores needing full purchase order workflows, Prediko starts at $49/month. For enterprise operations with 500+ SKUs and complex supply chains, Inventory Planner starts at $99/month.

How do I track inventory across multiple locations in Shopify?

In Shopify Admin, go to Settings → Locations and add each location. Once locations are set up, you can assign and transfer stock between them from the Inventory section. Shopify tracks stock quantities per location and routes orders based on your fulfilment priority settings. Multi-location tracking is available on all paid Shopify plans.

Can Shopify tell me when to reorder products?

Shopify can send a low stock alert when a product drops below a static threshold you set manually. It cannot automatically calculate your reorder point from your sales velocity and supplier lead time. For auto-calculated reorder points, you need a third-party inventory app. The formula is: Reorder Point = (Average Daily Sales × Lead Time Days) + Safety Stock.

What is the difference between inventory tracking and inventory management?

Inventory tracking is the foundation — knowing how much stock you have, where it is, and when it changes. Inventory management is the intelligence layer on top — knowing how fast each product sells, when to reorder, which products are at risk, and how to optimise your stock investment. Shopify handles tracking. A dedicated inventory app adds management.

How do I fix inventory discrepancies in Shopify?

When your physical count does not match Shopify, use the inventory adjustment tool in Admin → Products → Inventory to update the quantity with a reason code. Before adjusting, investigate the cause — common reasons include received shipments not logged, returns not restocked, damaged units not adjusted, or fulfilment errors. Fixing the number without fixing the process means the discrepancy will reappear.

Go beyond basic tracking

Shopify tracks your stock counts. Debnix adds the intelligence layer — velocity alerts, auto-calculated reorder points, ABC analysis, dead stock detection, and profit tracking. $21.99/mo, 30-day free trial.

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