Glossary
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inventory
E-commerce inventory: definition of SKU stock available vs. committed, physical vs. permanent inventory, Shopify locations, and merchant tips.
Updated on
June 4, 2026
The inventory (stock) refers to the total quantity of products held by a merchant at a given moment, ready or intended for sale. In e-commerce, inventory is tracked by variant and SKU, by warehouse or store (location). It is the answer to "how many do we have?", distinct from inventory management, which describes how to manage these quantities on a daily basis.
Summary
Definition: stock, SKU, available, committed
E-commerce inventory lists the physical units (or virtual ones in partial dropshipping) associated with each sellable SKU.
Common stock statuses:
On hand (en stock): total quantity physically present.
Available (disponible): sellable online right now.
Committed (engagé): reserved for unshipped orders.
Incoming (entrant): expected supplier reception.
Unavailable: damaged, in quarantine, sample.
Inventory types by activity:
Finished products: the majority case for DTC e-commerce.
Materials / components: brands that assemble or manufacture.
Consignment inventory: held by a third party (3PL, retail).
Useful distinctions:
Inventory vs inventory management: inventory = state of quantities; management = processes (replenishment, sync, alerts).
Inventory vs product catalog: catalog = titles, prices, images; inventory = stock figures.
Perpetual inventory vs physical inventory: real-time system tracking vs actual warehouse counting (stocktake).
Inventory vs fulfillment: inventory = what we have; fulfillment = preparation and shipping.
Stock vs stock (term): common synonyms in French e-commerce; "inventory" in English.
Inventory vs dropshipping: no stock held if the supplier ships everything.
Why inventory is central to an online store
Inventory is an asset (capitalized value) and a customer promise ("in stock" on the product page).
Sales: impossible to ship without an available unit.
Conversion: out of stock on bestseller = lost revenue.
Overselling: system inventory > real inventory = customer service cancellations.
Cash flow: too much stock = locked cash.
Accounting: stock valuation, COGS, balance sheet.
Multichannel: same inventory shared across web, Amazon, POS.
Feed ads: Google Shopping requires a consistent availability status.
An accurate inventory is the foundation of any reliable operation: ERP, 3PL, and marketplace synchronize based on these numbers. An uncorrected discrepancy propagates all the way to the final customer.
How to organize an online store inventory
Inventory control methods:
Perpetual inventory: Shopify (or ERP) updates with every sale, receipt, return.
Annual physical inventory: full warehouse count, system adjustments.
Cycle count: rotating count of SKUs every week (ABC: A = top sales).
Blind count: counter counts without seeing system qty (prevents bias).
SME physical inventory workflow:
First, export stock snapshot (catalog export).
Next, physically count by SKU / location.
Then, compare system vs. actual, document discrepancies.
Next, adjust Shopify quantities with reason (damage, theft, entry error).
Finally, analyze recurring causes (picking, un-restocked returns).
For example: accessories store, 200 SKUs, single warehouse. Quarterly inventory: discrepancies noted on several references (labels poorly scanned upon return). Admin adjustments, documented "explicit restock" customer service procedure. Weekly cycle count on 20 top-selling SKUs. Inventory accuracy improved; overselling significantly reduced. The rest of the management (reorder thresholds, Amazon sync) falls under inventory management.
Inventory management on Shopify
Shopify tracks inventory at the variant level, by location (Shopify Help Center).
Track quantity: enable stock tracking by variant.
Inventory > Adjust: manual correction with a reason.
Transfers: move stock between locations.
Inventory reports: balances, movements, CSV export.
Inventory policy: continue or stop selling if qty = 0.
Shopify POS: same inventory online + in-store.
Apps: Stocky, 3PL sync, marketplace.
Typical admin reading of a variant:
Available: 45 sellable units.
Committed: 8 (orders awaiting shipment).
On hand: 53 (available + committed + unavailable depending on config).
Reliable inventory checklist:
First, unique SKU per variant.
Next, configured locations (warehouse, retail, 3PL).
Then, aligned out-of-stock policy (no accidental overselling).
After that, scheduled physical inventory or cycle count.
Finally, multi-channel sync if Amazon or ERP is connected.
The essentials to remember about the inventory
Inventory = product quantities held, by SKU and location.
States: available, committed, incoming, on hand.
Distinct from catalog, stock management, fulfillment.
Perpetual inventory (system) vs. physical (counting).
Shopify: track qty, adjust, reports, locations, POS.
In brief
Inventory = product quantities held, by SKU and location.
States: available, committed, incoming, on hand.
Distinct from catalog, stock management, fulfillment.
Perpetual inventory (system) vs physical (counting).
Shopify: track qty, adjust, reports, locations, POS.
Associated terms, FAQ, and useful resources
Associated terms
Inventory management: steering and processes.
Product variant: inventory SKU level.
Product catalog: repository excluding quantities.
Fulfillment: consumes inventory.
Catalog export: stock snapshot for analysis.
FAQ
Inventory and stock: the same thing?
In French e-commerce, yes in common usage: both refer to the quantities of products. "Inventory" is the English term; "inventaire" can also refer to the physical counting operations.
Inventory and stock management: what is the difference?
Inventory is the state of quantities (data). Stock management encompasses policies and processes: replenishment, multi-channel sync, thresholds, forecasting, out-of-stock policy.
Where to view inventory on Shopify?
In Products > [Product] > Inventory by variant, or Analytics > Reports > Inventory for aggregated views and exports.
How often to perform a physical inventory?
At least quarterly for SMEs with their own warehouse; supplement with weekly cycle counts on top SKUs. High volume or 3PL: frequency negotiated with the service provider.
Go further
Effective inventory on Shopify.
Managing e-commerce inventory.
Shopify, Amazon and inventory.
Back to the Qstomy e-commerce glossary.
Sources: Shopify Help Center (Inventory), Shopify Help Center (Adjust inventory).
Enzo
June 4, 2026
