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    How Much Inventory Should I Start with an Online Store On Shopify?

    Last Updated | January 17, 2024

    An Overview: How Much Inventory Should I Start with an Online Store

    Shopify stores have become the ultimate ride-or-die for every eCommerce business owner. This is because the Shopify stores are easy to handle and use, hence offer better chances of gaining higher Shopify revenues and profits. However, just like other eCommerce stores, the Shopify store owners struggle to choose the right Shopify variant inventory quantity.

    Whether eCommerce or a physical store, inventory management has never been an easy task for store owners. It’s more like a double edge sword where on one end low inventory stock will start to cause business disruptions, and reputational losses, whereas, large inventory stocks will also cause problems by eating up the business capital.

    So, what’s the optimum Shopify inventory quantity?

    Well, in this blog we will exclusively be looking at this very problem and try to figure out exactly how much inventory one should have to start a successful Shopify online store.

    Shopify development

    How Much Inventory Should I Have On Hand To Start An Online Store?

    To begin with, there is no hard and fast rule for selecting the inventory size for your online store. This is because it varies with every business, product, and business level. In this section, we are sharing the factors that you need to consider to determine the inventory for starting the online store. So, let’s check out the details!

    Setting Up the Inventory Management SystemWhenever it comes down to determining the inventory quantity, your business must have a strategy for managing the inventory. This is because the proper inventory management system helps track the sales and identify the patterns (yes, it will help determine the suitable quantity of inventory). The inventory management system must be used on a daily or weekly basis to keep an eye on the inventory.

    In case your online store is built on Shopify, you can opt for the Shopify inventory management app or Shopify inventory management software. This is because the inventory management system helps streamline inventory purposes and even offers automatic inventory adjustment. In addition, it can be used for identifying the best-selling as well as stale products.

    Read Also  How much does it cost to start an online boutique? 

    • Consider The Industry

    Believe it or not, the industry that you belong to plays a significant role in determining the inventory quantity. For instance, if you intend on selling clothing, your inventory should be of various sizes and do consider the impacts of fashion trends on your clothing product sales. Moreover, innovation can impact the inventory needs according to the industry.

    • Determine The Inventory Costs

    The inventory costs are likely to determine the quantity of inventory. However, the costs go beyond the per-unit prices. You have to consider if you are selling a seasonal or a product with an expiration date. in that aspect, you also need to calculate the storage costs of your inventory.

    • Turnover Ratio

    Yup, we are talking about the turnover ratio of the inventory. This will help you assess the cost of inventory and calculating the turnover ratio helps determine how many products you’ve sold along with the replaced inventory products within a certain timeframe.

    • Calculating The Day Sales of Inventory 

    To begin with, it’s represented by DSI and it’s the formula for determining how frequently you have to cycle through the products. It is better to have a low DSI but it is rather also influenced by the industry.

    Shopify development

    What Percentage of Sales Should Inventory Be On the New Shopify Store?

    When you are creating a new online store through Shopify, you need to keep in mind that there is no specific percentage of sales on the Shopify store. This is because it largely depends on how much you sell through your Shopify store. On the other hand, if you are dropshipping on Shopify, there is no need to store the inventory or worry about excessive inventory. This is because you only have to order the product or inventory quantity that meets the customer demand.

    Read Also How to sell on Shopify without Inventory

    What Is Startup Inventory?

    The startup inventory is basically a cost term (it’s startup inventory cost). It is defined as the quantity of inventory that you must manufacture for successfully running the store. That being said, it’s essential to calculate the inventory costs in the initial phase because the startups tend to overstock without calculating the needed quantity of orders.

    How Do I Calculate How Much Inventory I Need for My Startup Shopify Store?

    For calculating how much inventory is needed for the startup Shopify store, you have to calculate the inventory turnover ratio. For this purpose, you have to divide the COGS (it’s the cost for producing, processing, and carrying the products) by the average inventory costs. This will help you determine the amount of inventory and associated costs.

    Read Also How is Shopify a good eCommerce platform for startup businesses?

    How Many Products Should I Start with Dropshipping On Shopify?

    To begin with, you need to import five to twenty products for the dropshipping business on Shopify. However, we would suggest focusing on one to three products. It’s best to start with low inventory because you just need to advertise the products on your Shopify store. Still, if you are expecting quick orders, just order the inventory according to expected orders, so your store stays live.

    Does Shopify Have Inventory Management?

    Yes, Shopify has an inventory management system that helps store owners track the inventory. The users can set up the tracking, check out the inventory, and adjust the inventory counts. In addition, you can view the inventory adjustments’ history for variants and products. We suggest that every Shopify store owner uses inventory management for the following reasons;

    • Reduce Spoilage– if you are selling makeup products, inventory management will help you curate strategies to sell out the products quickly
    • No Dead Stocks– the dead stock is known to be the stock that’s cannot be sold because the products are out of style, out of season, or are irrelevant. With a proper inventory management system, you will be able to sell your inventory on time
    • Low Storage Costs– the storage costs can keep piling up if you don’t keep track of the inventory and sell out on time, resulting in low storage costs
    • Improved Cash flow– sure, inventory management is cost-effective but it can be used for improving the cash flow (it happens as a result of managed inventory)

    How Do I Organize My Inventory On Shopify?

    • Setting Up the Inventory Tracking

    Before you start with the organization of inventory on Shopify, you have to enable inventory tracking. For this purpose, open the products tab from the Shopify admin and open the “all products” option. Then, tap on the products that you need to track and click the variants as well (if the product has variants). From the inventory section, tap on the track quantity option and set the quantity. Lastly, just save the settings.

    When it comes down to organizing and viewing the product inventory, you can follow the instructions. For this, open the inventory page and look for the search variants. You can filter the inventory based on product type, availability, vendor, tagged with, and quantity. In addition, you also have the option to add tags to products for better inventory management.

    How Can Shopify Handle Large Inventory?

    Shopify is an amazing platform for creating an online store and offers unlimited inventory upload for most of its pricing plans. Also, powerful and intuitive inventory management tools make it easier for online stores to easily handle and manage large inventory stock without making the process too complex. Also, Shopify Store has various third-party inventory management apps that can further simplify the process of inventory management for eCommerce stores.

    Read Also Shopify Inventory Management

    What Is the Best Program To Keep Track Of Inventory On Shopify?

    To begin with, you will inventory management app for streamlining and automating inventory management. It helps save the resources and reallocate the resources. Not to forget, the inventory management programs/apps can help forecast the trends and will eventually help improve accuracy and productivity.

    Read Also Shopify Variants Limit

    Shopify Store has various third-party inventory management apps that can help online stores to optimize inventory management processes, as well as, maintain optimal inventory stock by predicting future sales. NetSuite ERP Inventory Management module is undoubtedly one of the best options available to streamline inventory management of Shopify store. However, since it requires a special Shopify amazon integration process, we will leave it out at this stage. Below are some of the popular and high-utility inventory management apps that can easily be integrated with the Shopify store for better inventory tracking and management.

    • Stock Sync –this is the most famous app available on the Shopify app store and is top-rated. It can be used for updating the inventories on an automated basis, manage the suppliers, manipulate the pricing, sync the vendor sites, and export the inventory. It even allows the retail businesses to synchronize the inventory with physical stores or warehouses
    • TradeGecko –this is the multichannel inventory management program that empowers the Shopify businesses to keep track of the inventory and manage the sales from different sales channels. The app can be set for generating automatic orders and will ensure that you don’t run out of stock. Also, it delivers automated workflow for simplifying the order routing
    • Skubana –it is known to be the operating system of commerce and it has designed multichannel inventory management. It has top-notch demand forecasting and automates purchase orders. It has dynamic analytics that helps keep track of seasonal trend and calculate the profitability of the SKUs
    • Sellbrite –this app is a great option for the Shopify merchants who intend on selling the products on online marketplaces, such as Etsy, eBay, and Amazon. It has automatic syncing available in various channels while reduces the chances of overselling. In addition, it does support various warehouse locations
    • Stocky –this is the top-rated inventory management app that’s integrated with advanced features. These features include automatic updates for stock, forecasting of demands, and stock transfers. It delivers forecasts based on the precious performance, such as sales performance and latest orders

    FAQs About How Much Inventory Should I Start with an Online Store

    How Much Inventory Should I Start with a Shopify Online Boutique?

    If you are starting the boutique, you must set the 1/4th of starting budget for creating the inventory. On the other hand, if you’re a well-established boutique, you can base the amount that’s earned from the previous goods’ cost.

    How Much Inventory Should I Start with Shopify Jewelry Store?

    You have to determine the quantity of inventory depending on the level of the store. However, Shopify doesn’t charge any marketplace fee, so you can spare some extra bucks to invest in the jewelry inventory.

    How Do You Ask Brands for Free Stuff On Startup Shopify Store?

    The only way you can ask brands for free stuff or samples on the Shopify store is for marketing and advertising purposes. In addition, the free samples are suitable for generating leads but accessing them from the brands is only possible if you ask them for marketing purposes.

    When Do You Need a Lot of Inventory to Open A Shopify Store?

    You only need excessive inventory for your Shopify store if you have an established brand name on Shopify. This is because you will already have the audience and will experience higher sales volume.

    How to Calculate How Much Inventory to Order for A New Shopify Store in Excel?

    Microsoft Excel has a variety of templates available, so you can calculate the inventory of your orders for the Shopify store.

    How Do I Repair My Inventory On Shopify?

    For this purpose, open the Shopify app and open products. Then, click on the product that you want to repair as well as the variants. The next step is to tap the inventory button and move to the location where you want to adjust/repair the inventory for. Now, just change the quantity, and save the settings.

    How Can Shopify Handle Large Inventory?

    Shopify can handle the large inventory if you opt for the enterprise plan or Shopify Plus.

    Can I Hire Someone for Building the Shopify Store?

    Yes, you can actually depend on the Folio3 Shopify app builder if you want to hire someone to build the store for you.

    Can We Hire Third-Party Agencies to Maintain and Adjust the Shopify Store?

    Yes, there are various agencies available that help manages the Shopify store. However, our vote goes for Folio3 Shopify eCommerce online store maintenance services and Folio3 Shopify eCommerce online store integration services.


    Folio3, a Software Powerhouse established in 2005, is one of the leading eCommerce solution providers for SMBs and Fortune 500. The Company has expertise in diverse industries such as Animal Care, Retail, Automotive, Food and Agriculture, and Health care. From ecommerce store design and development to full-scale ERP deployment and integration, Folio3 has done it all.