How to Create Purchase Orders in Shopify Inventory Management [Free Template]

Every product you sell on Shopify starts with one step most merchants overlook , creating a purchase order.

Without a PO, you’re depending on casual emails and phone calls to suppliers, which leaves room for mistakes, delays, and overspending.

A purchase order (PO) is the official record of what you’re buying, how much, and under what terms.

It’s the simplest way to bring structure to your supply chain and keep your Shopify inventory accurate.

In this guide, we’ll show you why POs matter, what they include, and share a free template you can start using right away.

What Is a Purchase Order in Shopify Inventory Management?

A purchase order (PO) is the bridge between your Shopify store and your suppliers. It’s a written document that tells your vendor exactly what products you need, in what quantities, and when you expect them to arrive.

In the Shopify world, this matters because your sales channels move fast. A single product might exist in multiple variants (sizes, colors, bundles), and one viral post can wipe out your stock overnight. io

Without a PO system in place, you’re left scrambling with vague emails or phone calls to suppliers and that often leads to mistakes.

With a PO, everything is clear and structured:

• You create a record of the exact SKUs and variants you’re ordering.
• Your supplier gets precise instructions and agreed pricing.
• You have documentation to track shipments and resolve disputes if needed.

Think of it as Shopify’s “behind-the-scenes safety net.” While your storefront shows customers what’s available, purchase orders keep your back-end organized so you can actually deliver on those promises.

Why Shopify Merchants Should Use Purchase Orders

If you run a Shopify store, it’s easy to think purchase orders are “extra paperwork.” After all, can’t you just email your supplier and be done with it? But as soon as you’re managing multiple products, variants, or suppliers, those casual emails turn into inventory chaos.

Here’s why Shopify merchants benefit from using POs:

• Stay ahead of stockouts → By logging purchase orders, you know exactly what’s already on the way to your warehouse. That means fewer “sold out” notices during busy seasons.
• Control costs upfront → Prices and quantities are agreed in writing, so you won’t get a surprise invoice that eats into your margins.
• Track variants and bundles → POs help avoid mistakes with Shopify products that have multiple sizes, colors, or bundles.
• Measure supplier performance → You’ll have a record of which vendors deliver on time and which ones need chasing.
• Sync across channels → If you also sell on Amazon, Walmart, or Etsy, POs ensure that new inventory updates in Shopify once stock is received.

Key Components of a Purchase Order

At its core, a purchase order is simply a list of “what you want, from whom, and under what conditions.” But the magic is in the details. Here’s what makes a PO complete and useful:

1. PO Number
A unique reference number assigned to the order. This makes tracking, filing, and matching POs with invoices much easier.

2. Buyer Information
Your business name, billing address, and contact details. This ensures the supplier knows who the order is from.

3. Supplier Information
The vendor’s name, address, and contact information. Having this written clearly avoids confusion, especially if you work with multiple suppliers.

4. Order Date
The date the PO is issued. It sets the timeline for the order and helps both parties stay on schedule.

5. Product Details
‍A detailed list of the items you’re ordering, including:

1. Product names
2. SKUs or item codes
3. Descriptions
4. Quantities

6. Pricing

1. Unit price for each item
2. Total cost per line item
3. Overall total for the PO
4. This ensures both buyer and supplier agree on costs upfront.

7. Delivery Information
Where the order should be delivered, along with expected delivery dates and shipping instructions.

8. Payment Terms
The agreed terms for payment /such as “Net 30,” “50% upfront,” or “payment on delivery.”

Step-by-Step: How to Create a Purchase Order for Your Shopify Store

Creating a purchase order for your Shopify store isn’t complicated, but doing it right makes a huge difference in keeping your inventory accurate and your suppliers accountable. Here’s how to set one up:

1. Check Your Low-Stock Products

Start by looking at your Shopify inventory reports or use an inventory app that shows you what’s running low. Pay special attention to variants (like sizes or colors), it’s often the best-sellers that sell out first.

2. Choose the Right Supplier

If you have multiple suppliers for the same product, weigh not just cost but also reliability. A vendor who ships quickly and consistently is often worth more than one who’s slightly cheaper but always late.

3. Draft the Purchase Order

Add the essentials:

• Supplier details
• Your Shopify store details
• PO number and date
• Product SKUs, variant details, and quantities
• Prices per unit and total cost
• Expected delivery date and location (warehouse, 3PL, or Shopify Fulfillment)

You can use a free template (Excel, Sheets, PDF) or generate one with an app.

4. Get Approval (If Needed)

If you’re running a larger Shopify store with a team, set an approval step. This prevents accidental or oversized orders from slipping through.

5. Send It to the Supplier

Email the PO or upload it to the supplier’s system if they use one. Always keep a copy saved in your records.

6. Confirm Acceptance

Never assume silence means “yes.” Ask for written confirmation (signed PO, stamp, or even an acceptance email). This avoids disputes later.

7. Track Until Delivery

Log the PO in your system and monitor its status. When the stock arrives, match the shipment against the PO to make sure quantities and products are correct before updating Shopify.

Free Purchase Order Templates for Shopify Merchants

Starting a purchase order system doesn’t mean you have to design everything from scratch. A good template provides structure from day one and ensures you don’t miss any key details, such as SKUs, variants, or delivery dates.

That’s why we’ve created a ready-to-use Shopify-friendly Purchase Order template for you. It’s built in Excel, so you can easily customize it, add your logo, store name, and supplier details.

📥 Download the Free Purchase Order Template (Excel)

This template works whether you’re a single-store Shopify merchant or juggling multiple suppliers.

If you prefer, you can also convert it to Google Sheets for collaboration or save it as a PDF to send directly to vendors.

Common Mistakes Shopify Stores Make With Purchase Orders

Even with a system in place, Shopify merchants often slip up when handling purchase orders. These mistakes might look small on paper, but they can create stock delays, overselling, or wasted cash. Here are the most common ones to watch out for:

• Ordering the wrong variant → It happens more often than you’d think. A supplier sends 100 size L t-shirts instead of the size M you actually needed, because the PO wasn’t clear enough. Always double-check your SKUs and variant details.
• Forgetting to update Shopify stock → Products arrive, but inventory isn’t adjusted in Shopify. Customers keep seeing “out of stock” or, worse, overselling happens. Make it a habit to match deliveries against your POs before updating quantities.‍
• No centralized tracking → POs scattered across email threads, spreadsheets, and sticky notes lead to confusion. Without one place to track open and closed orders, it’s easy to reorder the same item twice or miss an overdue shipment.‍
• Skipping approvals → In multi-person Shopify teams, not having a sign-off process can result in unauthorized or duplicate purchases. An extra layer of review saves money and prevents mistakes.
• Ignoring bundles and kits → Many Shopify stores sell products as bundles or kits. If your POs only list single SKUs, you can end up short when bundle sales spike. Always factor bundles into your reorder planning.‍
• Not checking supplier performance → If you never review which suppliers are late, inaccurate, or inconsistent, you’ll keep running into the same inventory problems.

How Sumtracker Simplifies Purchase Orders for Shopify Merchants

Instead of juggling spreadsheets or building POs from scratch every time, Sumtracker makes the process almost effortless. It plugs directly into your Shopify inventory, so you know exactly what to order and when.

Here’s how Sumtracker makes purchase orders easier:

• One-click PO creation → Generate purchase orders straight from low-stock alerts without retyping product details.
• Supplier history saved → Quickly reorder from the right vendor with the right pricing, no digging through old emails.
• Seamless stock updates → Once goods are received, mark the PO as delivered and Sumtracker updates Shopify instantly.
• Automatic low-stock detection → See which SKUs or variants are running out in real time.
• Multi-location ready → Assign POs to warehouses, retail stores, or 3PLs so stock lands exactly where you need it.

Conclusion

Purchase orders are the quiet engine that keeps that stock flowing, they cut out supplier guesswork, prevent overselling, and give you the paper trail you’ll thank yourself for later.

The best part?

You don’t have to overcomplicate it.

Start small with a free template to get structure in place, and once your store scales, let Sumtracker take over.

From one-click PO creation to real-time inventory updates, Sumtracker makes purchase orders part of a streamlined system instead of another admin task.

Try Sumtracker, the smarter way to manage purchase orders and inventory in one place.

FAQs About Purchase Orders for Shopify Merchants

1. Do I really need purchase orders if I’m a small Shopify store?

Yes, even small stores benefit. POs keep supplier communication clear, help you avoid stockouts, and make bookkeeping easier. You can start with a simple template and scale up later.

2. Can I manage purchase orders directly inside Shopify?

Shopify doesn’t provide a built-in PO system. You’ll need to either use templates or integrate an inventory management app like Sumtracker to generate and track purchase orders.

3. What’s the difference between a purchase order and an invoice?

A purchase order is created by you (the buyer) to request goods from a supplier. An invoice is created by the supplier to request payment after fulfilling that PO.

4. How do purchase orders help prevent overselling?

By logging upcoming stock in POs, you know what’s on the way and when it will arrive. This helps you plan sales and promotions without running out of inventory.

5. What’s the best way to handle purchase orders if I sell across multiple channels (Shopify, Amazon, Walmart, etc.)?

Manual templates work for single channels, but for multi-channel sellers, an app like Sumtracker centralizes everything. It creates POs, updates stock across all platforms, and saves you hours of reconciliation work.

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