Key takeaways
- Good inventory management prevents stockouts and overbuying.
- Track stock by variant and get an alert when it runs low.
- One inventory across all your channels prevents selling the same item twice.
- Manage products, variants and inventory with Microcart. Check which integrations you need for other sales channels.
Selling a product you no longer have in stock — few things are as embarrassing and frustrating for customers. At the same time, you do not want to tie up capital in boxes that sit around for months. Good inventory management prevents both, and it does not have to be complicated when you are starting out. This guide shows you how to stay in control, even when selling through several channels.
Why inventory management matters
- No unfulfilled sales — you do not sell what you do not have or let customers down.
- Less tied-up capital — you can see what is not selling and respond with a promotion or stop buying it.
- Better purchasing — you know how quickly something sells and order the right quantity in time.
- Time saved — automatic stock counts reduce manual tracking and errors.
Inventory is literally money sitting on your shelves. Keeping control of that inventory means keeping control of your cash flow.
Track stock by variant
If you sell products in different sizes, colours or flavours, manage stock by variant — not by product. Otherwise, you might sell size 17 when only size 16 is left in stock.
| Variant | Inventory | Status |
|---|---|---|
| Ring size 16 | 8 | In stock |
| Ring size 17 | 2 | Running low |
| Ring size 18 | 0 | Sold out |
This way, a product with one sold-out variant stays available in the sizes you still have — you do not lose sales or disappoint anyone.
One inventory across all your channels
If you also sell on a market, via social media or in a physical store, your stock must be correct across all channels. One central stock that is automatically debited with each sale prevents you from selling the same item twice. If you also sell at the counter, read sales in your store and online. Nothing is more annoying than an online order that you cannot deliver because you just sold the last copy in the store.
Alerts and timely reordering
Set a low stock signal so that you can reorder on time and not suddenly run out. Keep track of how fast each product runs; then you know how much to buy and at what time. Take your delivery time into account: if your supplier orders two weeks later, your signal must be well before zero. Start simple: one threshold per product is enough. You can read how to purchase smartly in purchasing products for your webshop.
Tied-up capital: what is not selling
Not everything sells. Keep an eye on products that have been sitting around for a long time — that is money doing nothing. Put those items on promotion, bundle them or stop reordering them. Reviewing this regularly keeps your inventory healthy and frees up working capital for products that do sell.
Count your stock from time to time
However good your system is, discrepancies creep in through damage, returns and mistakes. Count your physical stock periodically and make corrections where needed, so your system stays accurate. For a small online store, once a quarter is often enough.
Start small, then automate
With a handful of products you can start with a simple overview. If you grow, it is worthwhile to use a platform that keeps track of stock per variant, automatically debits across all your channels and warns you if stock is low — so that you worry about it less and less. For the business side, see the best webshop for self-employed people.
Common mistakes
- Tracking stock by product instead of by variant.
- Not setting up a low-stock alert and unexpectedly running out.
- Not factoring in your supplier's lead time when reordering.
- Leaving capital tied up in unsold stock without taking action.
Frequently asked questions
Do I need to track stock by variant?
Yes, if you sell different sizes, colours or flavours. Otherwise, you will sell variants that are no longer in stock.
How do I prevent selling the same item twice across channels?
Use one central inventory that automatically deducts stock with every sale, regardless of the channel: online, at a market, in-store or through social media.
When should I reorder?
Set a low-stock threshold for each product based on how quickly it sells and your supplier's lead time. Reorder when stock reaches that threshold.
What should I do with products that are not selling?
Put them on promotion, bundle them or stop reordering them. Tied-up capital is money doing nothing.
Do I need separate inventory software?
Not to get started. Many online store platforms have built-in inventory management, including variants, alerts and stock deductions across channels.
How often should I count my stock?
For a small online store, once a quarter is often enough to correct discrepancies caused by damage or returns.
Get started
Set up your stock per variant and set a low stock signal for your runners, taking delivery time into account. If you sell through multiple channels, choose one central stock. If you are still starting from scratch, the step-by-step plan to start an online store will help you on your way.
Further reading
purchase products for your webshop
