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Glossary

Inventory policy

Also called: Continue selling when out of stock

Inventory policy is the setting that decides whether a Shopify variant stops selling at zero or keeps going.

Tom Beckwith

Two values. Stop selling at zero, or carry on and let the number go negative.

The two settings people confuse

Inventory tracking decides whether Shopify counts at all. Inventory policy decides what happens when the count hits zero.

Turning tracking off to keep a product on sale throws the count away. Changing the policy keeps it, and lets the number go below zero where you can see it.

When to allow it

  • A preorder with a real ship date
  • Stock you know is on a van, on a purchase order you have already raised
  • Made to order, where there is nothing to count

Negative stock is then a to-do list, not an error.

Where it goes wrong

It gets left on. A line sells two hundred past zero over a bank holiday, nobody looks until Tuesday, and there is no supplier delivery that can cover it. Every one of those is a refund and an apology.

Check which variants allow it before every peak. The other fault is switching it on to hide a stockout rather than to promise a date. A customer will wait for a date. They will not wait for silence.

Related terms

Backorder

A backorder is an order for something you do not have in stock yet, taken on the promise that it is coming.

Inventory tracking

Also called: Track quantity

Inventory tracking is the setting that tells Shopify to count a variant. With it off, Shopify holds no quantity at all.

Stockout

Also called: Out of stock

A stockout is running out of something a customer wanted to buy. The lost sale is usually the smallest part of the cost.

Stop counting boxes twice

Install the app, scan a delivery and see your stock update in Shopify. It takes about four minutes to set up.