Insights, card by card Answer 3 of 12 Updated

What does each card on the Inventory tab mean?

The Inventory tab answers two questions. What should you reorder before it runs out? And where is money stuck in stock that does not sell? Open Insights and click Inventory.

A few words first. A variant is one version of a product, like a hoodie in size M. Stock on hand is what Shopify says you hold today, read with every sync. Unit cost is what one unit costs you, from the Products page under Costs. The lead time is how many days a reorder takes to arrive. It is 30 days until you change it on the Products page.

Most cards look at today's stock, so the dates at the top change little here. Only the sales and profit columns of the reorder planner follow them. Gift cards and digital products are not stock, so they are left out. nouz also works out each variant's pace: how many units it will likely sell a day. The pace mixes its last 7, 30 and 90 days. Once a variant has a year of sales, last year's same weeks count most.

Six figures sit at the top. Stock value is your stock on hand times today's unit cost: 200 units at €12,50 is €2.500,00. A variant without a unit cost is not valued, and the card says how many there are. Cash in overstock is money in units you will not need for a long time. That is everything beyond the lead time plus 90 days of sales. A variant that sells 1 a day and has 300 on hand needs 120, so 180 units are overstock: €1.800,00 at €10,00 each. Dead stock is the value of variants with stock, no sale in 90 days and none expected.

A-items at risk says how many of your best sellers are sold out or must be reordered now, like 3 of 12. Inventory turnover is how often your stock sells through in a year: last year's COGS divided by today's stock value. COGS means what the goods you sold cost you. €60.000,00 of COGS on €15.000,00 of stock is 4,0×. GMROI is the CM1 a year each €1 of stock earns: last year's CM1 divided by stock value. CM1 is what a sale leaves after the product's own cost. A GMROI of 2,40 means each €1 of stock earned €2,40. If your store is younger than a year, both are scaled up to a year, and the card says from how many days.

Stock value by status sorts today's stock into seven statuses. Each row shows how many variants it holds, their value and their share. A status depends on days of stock: how long stock on hand, plus stock on its way, lasts at the pace. On its way means units already ordered in Shopify, on purchase orders or transfers. Sold out means nothing on hand, while it sold in the last 90 days or should sell. With the 30-day lead time, Restock now means under 37 days of stock, and Restock soon under 51. Healthy is 51 to 120 days. Overstocked is over 120 days and Severely overstocked over 210. Dead stock means stock on hand, no sale in 90 days and none expected.

A product with its own lead time moves every limit with it. Hover a row to read its rule. Click a status to list its variants in the reorder planner below. Click it again to clear the filter.

Best sellers by status ranks variants by the CM1 they earned in the last 90 days. A-items are the best sellers that earn the first 80% of it. B-items earn the next 15%. C-items earn the rest, together with anything that lost money. The columns read A · top 80%, B · next 15% and C · last 5%. Each cell counts the variants of one class in one status. A red cell holds A-items that are sold out or due to restock now: profit about to stop. Click a cell to list exactly those variants below.

The Reorder planner at the bottom lists every variant, the most urgent first. It says when each one runs out, the last day to reorder and how many to order. The planner has its own guide, column by column. When Shopify reports no stock and nothing has sold, the tab says No stock to plan yet.

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More in Insights, card by card

All 12 questions
  1. 01 What does each card on the Revenue tab mean, from GMV to sessions?
  2. 02 What does each card on the Products tab mean, from CM1 to loss-makers?
  3. 03 What does each card on the Inventory tab mean? You are reading this
  4. 04 How does the reorder planner decide what to order, with stock on its way?
  5. 05 What does each card on the Marketing tab mean, from ad spend to POAS?

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