Shopify provides a suite of product inventory analytics to help you understand crucial metrics about your products and inventory management directly from your Products page. The product inventory analytics bar at the top of this page gives you a quick snapshot of several key metrics: sell-through rate, days of inventory remaining, and inventory value through ABC analysis. These insights are instrumental in optimizing inventory management, planning restocking schedules, and strategizing sales or promotions.

Accessing Product Inventory Analytics

To delve into these analytics:

1. Navigate to the "Products" section in your Shopify admin.
2. Click on the metric tile you're interested in exploring further to access the associated detailed report.

Key Metrics Overview

• Product Sell-Through Rate: This metric represents the total quantity of items sold as a percentage of the total quantity available (sold + remaining in inventory) over the most recent 30-day period. A high sell-through rate indicates good sales velocity, whereas a low rate could signal overstock or slow-moving items.

• Related Report: Product Sell-Through Rate Report provides detailed insights, helping you understand which products are performing well and which might need promotional efforts.

Days of Inventory Remaining: This calculates how long your current inventory will last based on the average daily sales volume during the period. It's crucial for predicting stockouts and planning restocking.

Related Report: Days of Inventory Remaining Report offers a forecast to prevent potential stockouts and ensure you have enough inventory to meet demand.

1. Inventory Value (ABC Analysis by Product): ABC analysis categorizes your inventory into three grades based on their revenue contribution:
2. A-grade products: Top-sellers that generate approximately 80% of your revenue.
3. B-grade products: Mid-range items contributing around 15% of revenue.
4. C-grade products: The bottom 5% of your revenue stream.
5. Related Report: ABC Analysis by Product Report provides a breakdown of your inventory's value, helping you focus on stocking and promoting A-grade items while reconsidering or repositioning B and C-grade products.

 

Why These Metrics Matter

 

• Optimize Inventory Levels: Understanding these metrics allows for more efficient inventory management, ensuring you're not overstocked on slow movers or understocked on best-sellers.

• Strategic Planning: Insights from these reports can guide your sales, promotions, and marketing strategies, focusing on products that need a boost or capitalizing on high performers.

• Financial Insights: The inventory value analysis helps in understanding the financial health of your product lines, guiding pricing strategies, and inventory investment decisions.

By regularly monitoring and analyzing these metrics, Shopify store owners can make informed decisions to optimize inventory levels, improve sales velocity, and enhance overall business performance. It's a proactive approach to inventory management that aligns your product offering with market demand and customer preferences.