Introduction

Shopify recently introduced a change to its inventory management system, affecting how merchants update product quantities. This update limits direct editing of the “Available” quantity and instead prioritizes the “On Hand” metric. For many merchants, particularly those without physical inventory, this change has complicated inventory tracking and made it harder to update stock efficiently.

In this article, we’ll explore the recent Shopify inventory update, why it has been challenging for certain business models, and solutions and tips that Shopify has provided to address merchant feedback.

1. Shopify’s Inventory Update Overview

The new update to Shopify’s inventory system affects how inventory quantities are displayed and edited. Previously, merchants could adjust the “Available” quantity directly, but the recent update centers on the “On Hand” quantity as the primary editable field.

• On Hand vs. Available: The “On Hand” quantity now represents all items physically present at a location, combining items that are available, committed to orders, or set aside as unavailable. The “Available” quantity, in contrast, only reflects the items ready for sale.
• Editing Restrictions: Under the new system, merchants can no longer directly edit the “Available” quantity. Instead, they must adjust the “On Hand” quantity, which will automatically update “Available” and reflect accurate stock levels.

While this system provides a consolidated view of physical inventory, it has created issues for merchants who use Shopify as an online-only store without holding physical stock or for those who manage pre-orders and backorders.

2. Challenges Posed by the Inventory Update

The update has proven challenging for various business models. Here are some of the primary issues merchants have encountered:

• Time-Consuming Manual Updates: Merchants who previously relied on bulk editing the “Available” quantity must now make adjustments to “On Hand” instead, often adding extra steps.
• Incompatibility with Certain Business Models: For businesses that don’t hold physical stock, such as digital-only stores or dropshipping models, the concept of “On Hand” is irrelevant, making inventory management more complex.
• Confusion and Inventory Errors: Many merchants have reported confusion over the new system, leading to errors like overselling and inaccurate stock tracking. For instance, Shopify now considers committed items part of “On Hand,” which has created discrepancies in stock availability.

3. Solutions Provided by Shopify to Address Feedback

In response to feedback from the community, Shopify has implemented several changes to address merchants’ concerns and improve the inventory experience. Here are some key updates and solutions Shopify has provided:

• Re-enabled Legacy CSV Import: Shopify has brought back the option to import the legacy CSV file, allowing merchants to directly modify “Available” values, streamlining the bulk-editing process.
• Direct Editing of Available in Web Admin: Shopify added back the ability to edit “Available” quantities in the web admin, making it easier to manage inventory levels directly from the dashboard.
• Customizable Inventory Views: Merchants can now customize their inventory view to reorder columns or hide the “On Hand” column entirely, enabling merchants to prioritize the quantities they find most relevant.

These updates have partially restored some of the previous functionality, but Shopify continues to gather feedback and has indicated more improvements may be on the way.

4. Tips for Adapting to Shopify’s New Inventory System

If you’re adjusting to Shopify’s new inventory system, here are some strategies that can help streamline your workflow:

• Use Saved Views: Shopify’s customizable views allow you to create saved layouts, such as a “Low Stock” view, where you can filter and view only products with less than 10 items available.
• Utilize Third-Party Inventory Management Apps: Shopify’s app marketplace offers various inventory management tools that provide more flexibility, such as support for negative quantities for pre-orders and advanced bulk-editing options.
• Regular CSV Exporting: Regularly exporting inventory data as a CSV file can simplify the process of making large updates offline before re-uploading, especially for stores with a large product catalog.

5. Workarounds and Customization Options for Business Models

Different business models have different inventory needs, and here are some workarounds to help adjust to the new system:

• Pre-Orders and Negative Inventory: Merchants who rely on negative inventory for pre-orders or backorders may benefit from using third-party apps that support this feature. Shopify’s built-in system currently doesn’t support negative values in “On Hand.”
• Focusing on “Available” Quantities: If you only need to track what’s ready for sale, align the “On Hand” and “Available” quantities to keep things straightforward, although this will require some additional management of committed stock.
• Integrating with Advanced Inventory Systems: For complex setups, consider using an external inventory or warehouse management system that integrates with Shopify to manage multiple stock sources, order statuses, and committed quantities.

Conclusion

Shopify’s new inventory management system has caused some challenges for specific business models, but there are strategies and workarounds to help manage these changes. Shopify has responded to feedback with partial solutions, including restoring direct editing of “Available” quantities in the web admin and offering greater customization in the inventory layout.

As Shopify continues to refine this system, merchants can apply the tips above to adapt to the current setup. For those still struggling, Shopify’s support team is actively listening and collecting feedback to guide further improvements.

FAQs

• Why did Shopify change the inventory editing options?
  Shopify made the shift to provide a consolidated view of physical stock at each location, allowing for more detail in inventory tracking (e.g., committed, available, unavailable).
• What’s the difference between “On Hand” and “Available”?
  “On Hand” includes all physical stock at a location, while “Available” shows only what’s ready for sale, excluding committed or reserved items.
• Can I still bulk edit my inventory?
  Yes, Shopify restored legacy CSV imports to allow direct editing of “Available” quantities, making bulk updates easier.
• Are there Shopify apps for more flexible inventory management?
  Yes, several apps provide features like negative inventory, syncing across locations, and custom quantity tracking, offering additional flexibility.
• Will Shopify return to the old inventory system?
  While Shopify hasn’t indicated a full reversion, they are gathering feedback, and merchants are encouraged to provide input on needed improvements.