How to Set Up Inventory Tracking in Shopify (Updated for 2025)

Staying organized with inventory leads to smoother sales and stronger customer loyalty.

Studies show that companies lose nearly 3% to online retailers due to out-of-stock products.

And with more customers expecting same-day or next-day delivery, not knowing what’s in stock (or where it is) can directly impact your bottom line.

That’s why enabling inventory tracking in Shopify isn’t just a feature—it’s a must.

Even a small stock discrepancy or delayed update can lead to overselling, frustrated customers, or fulfillment chaos; these are the common inventory mistakes that are surprisingly easy to avoid.

In this guide, we’ll walk through how Shopify’s inventory tracking works, how to set it up correctly, and its limitations.

Let’s get started and take the guesswork out of your inventory.

What Is Inventory Tracking in Shopify?

Inventory tracking in Shopify lets you monitor the number of units of each product you have in stock.

Once enabled, Shopify automatically adjusts stock levels as customers place orders, returns are processed, or manual updates are made.

You can see stock at a glance and set up rules for selling out-of-stock items or continuing to sell with backorders.

It also plays a key role in:

• Preventing overselling
• Managing low-stock alerts
• Making better purchasing decisions
• Streamlining fulfillment workflows

Step-by-Step: How to Enable Inventory Tracking in Shopify

Enabling inventory tracking in Shopify ensures your stock levels stay accurate as orders come in and go out.

Whether you're managing a single product or a full catalog, here’s how to set it up properly in 2025.

For a Single Product

If you're updating just one item, follow these simple steps:

1. From your Shopify Admin, go to Products
2. Click the product you want to edit
3. Scroll down to the Inventory section
4. Check the box labeled Track quantity
5. Enter the current stock in the Quantity field

For Multiple Products (Bulk Edit)

Managing an extensive catalog? Bulk editing can save you serious time:

1. Navigate to Products in your admin panel
2. Select multiple items using the checkboxes
3. Click Edit products to open the bulk editor
4. In the editor, click Columns and add Track quantity and Quantity
5. Check the Track quantity for each product
6. Enter or adjust the available stock in the Quantity field
7. Click Save to apply your changes

Pro Tip: Use this method when launching new collections or updating seasonal inventory across multiple SKUs.

How Inventory Tracking Works with Variants and Bundles

Shopify’s inventory tracking is flexible enough to handle simple products and variant-rich catalogs, but things get a bit trickier when it comes to bundles. Let’s break it down.

Tracking Inventory for Product Variants

If your product comes in multiple sizes, colors, or other options, Shopify treats each variant separately for inventory. That means:

• Each variant has its own SKU and stock level
• Inventory is updated individually as each variant is sold
• You can track, restock, and report on variants separately

Example: If you sell a T-shirt in three sizes (S, M, L), each size will have its quantity count in Shopify.

Shopify’s built-in system handles variant-level tracking smoothly. Ensure you enable tracking for each variant during product setup or bulk edit.

Tracking Inventory for Product Bundles

Bundles like gift sets or combo packs are where Shopify’s native system shows limitations. By default:

• Shopify tracks bundles as standalone products
• It does not automatically reduce the stock of individual components when a bundle is sold
• You’ll need to adjust component stock or use a third-party inventory app manually

Example: You sell a gift box that contains a candle, mug, and notebook. If someone buys the bundle, Shopify won’t reduce the stock of each item inside unless you do it manually or use an app.

What Shopify’s Inventory Tracking Can’t Do

Shopify’s built-in inventory tracking is great for getting started, but has limits. As your business grows, you might find yourself needing more advanced tools and flexibility than Shopify alone can offer.

Here’s where native inventory tracking starts to fall short:

No Automatic Bundle Component Tracking

Shopify treats bundles as standalone products. That means when a bundle is sold, the individual components inside it aren’t deducted automatically; you have to manage that manually or risk overselling.

Example: You sell a skincare kit with 3 products. Shopify won’t reduce stock for each item unless you use a third-party app.

No Purchase Order Management

Shopify doesn’t let you create or manage purchase orders. There’s no native system to plan reorders, receive inventory from suppliers, or track expected deliveries.

This can become a bottleneck as your supplier network grows.

No Forecasting or Reorder Automation

There is no way to automatically calculate how much to restock based on past sales or lead times. You’ll need a spreadsheet (or an inventory platform) to determine reorder points and quantities.

Limited Multi-Channel Syncing

Inventory syncing isn't handled natively if you sell on Amazon, Etsy, Walmart, or even through multiple Shopify stores. You’ll need third-party apps to keep everything in sync.

Without this, you risk overselling or stock mismatches across platforms.

No COGS Tracking or Inventory Valuation

Shopify tracks quantity, not value. There is no built-in support for calculating the cost of goods sold (COGS) or understanding the value of your inventory at any given time.

If you're serious about profitability, you’ll need an inventory system that handles financial metrics too.

Common Issues to Avoid When Enabling Inventory Tracking

Turning on inventory tracking in Shopify is straightforward, but it’s easy to miss a few crucial details that can throw your stock levels off balance.

Whether you’re setting it up for the first time or cleaning up an existing catalog, here are some common mistakes to watch out for:

1. Forgetting to Enable Tracking for Variants

One of the most frequent errors is enabling inventory tracking for the main product but not for each variant. Shopify treats every variant (like size or color) as its item, so if you miss this step, your reports and stock counts won’t be accurate.

Fix: Use the bulk editor to ensure tracking is turned on for all variants.

2. Using Duplicate or Missing SKUs

SKUs are critical for matching, reporting, and syncing across tools. Using the same SKU for multiple products or forgetting to assign one can lead to incorrect stock updates and app conflicts.

Fix: Create a consistent SKU naming structure and audit regularly.

3. Manually Overriding Stock Without a Reason

It’s tempting to adjust inventory when something seems off manually, but doing this without documentation can create confusion later on, especially if you have a team.

Fix: Add internal notes when adjusting inventory, or use apps that log stock changes.

4. Conflicts Between Apps

If you’re using third-party apps for inventory, ensure only one tool is writing stock updates to Shopify. Having multiple systems update quantities simultaneously can cause inventory to bounce back and forth.

Fix: Choose one source of truth for syncing stock across channels.

5. Ignoring Inventory Transfers Between Locations

If you use Shopify’s multi-location setup, forgetting to track inventory transfers between locations can result in misleading stock levels and fulfillment delays.

Fix: Always log transfers using Shopify’s built-in transfer feature.

Need More Power? Use Sumtracker for Advanced Inventory Tracking

Shopify’s built-in inventory tracking is excellent to start with, but once your store begins to scale, you’ll likely need more control.

That’s where Sumtracker comes in.

It helps you track bundles automatically, sync inventory across channels like Amazon and Etsy, receive low stock alerts, and manage purchase orders easily.

Everything stays connected, and you never have to second-guess what’s in stock or what to reorder.

Best of all?

It works seamlessly with Shopify.

If you're ready to save time, avoid stockouts, and run your store smarter, Sumtracker is your next move.

Try it free or book a quick demo today.

FAQS

1. How can I enable inventory tracking for products in Shopify?

You can turn on inventory tracking by editing a product in the Shopify admin, scrolling to the “Inventory” section, and checking the “Track quantity” box. Don’t forget to do this for each variant if your product has multiple options.

2. Can Shopify track inventory for product variants like size or color?

Yes, Shopify allows variant-level inventory tracking. Each variant such as size or color has its own quantity and SKU, which you can manage individually.

3. Does Shopify support automatic inventory tracking for bundles?

Not natively. Shopify doesn’t deduct stock from individual components when a bundle is sold. For that, you’ll need an app like Sumtracker that handles automatic bundle and component tracking.

4. Can I bulk edit inventory tracking settings in Shopify?

Absolutely. Use the bulk editor to update multiple products at once. You can add the “Track quantity” column and apply changes to dozens (or hundreds) of products in one go.

5. What happens if I don’t track inventory in Shopify?

Shopify won’t adjust stock levels when orders are placed without tracking enabled. This increases the risk of overselling and customer dissatisfaction.

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