Automate Your Shopify Store

Learn about the best ways to automate your e-commerce business and manage your inventory across multiple Shopify stores.
Is FIFO the Right Inventory Management System for Shopify Sellers?
Out-of-stockIs FIFO the Right Inventory Management System for Shopify Sellers?Although there are methods and tips for selling when out of stock on Shopify such as back-in-stock notification forms and monitoring your inventory-to-sales ratio, managing your stock can be the difference between a profitable, customer-serving business and a failed store with all its capital tied into inventory and no sales. Not only will knowing the cost of your inventory help prevent you from over-investing in stock, but it will help reduce warehouse costs, help monitor theft and loss, and help produce more accurate stock cost values. The logistics of stock management can become complicated, especially for larger stores. That's why implementing a stock tracking system is crucial for a smoothly running online store. What Is the FIFO Inventory Management Method? The FIFO (first in, first out) inventory management system aims to value a business's inventory in a way that reduces the loss of products because it has expired or become obsolete. This inventory costing assumption method calculates the inventory cost of the first items that arrived in stock and uses the newest inventory as remaining stock. In short, the first stock and the costs associated with it are used before your new stock. Why Use FIFO for Shopify Instead of Other Methods? FIFO is the most widely-used inventory management method and is also the most accurate when it comes to assuming expected costs with the flow of goods. Additional benefits of FIFO include the following: Using FIFO in your Shopify automated inventory management system will provide you with the most accurate way to align stock price and sales.FIFO will help reduce the impact of inflation if we assume that the cost of old inventory is less than newer inventory. Therefore, your net profit will be higher.FIFO will help reduce expired stock and items that have become obsolete. However, there are other inventory management methods to consider, such as: LIFO: Last in, first out is the opposite of FIFO, where the last inventory purchase is the first to be sold.Average Cost Inventory: Calculated by dividing the total cost of your goods by the total number of goods available for sale. This produces a single, average cost price.Specific Inventory Tracking: Used when all costs of a finished product are known. With all aspects known, any of the above methods are appropriate. Calculating FIFO To calculate your COGS (cost of goods sold) using the FIFO method, simply calculate the cost of the oldest inventory sold, and multiply it by the number of items sold. In a formula, this would look as follows: COGS (FIFO) = Cost of oldest inventory X Total inventory sold If newer inventory (with a higher/ lower cost) is used to complete sales, you will need to take this into account. Example of FIFO Let's take a look at the FIFO method in action to help create a better understanding. Let's take a Shopify store that sells T-shirts and assume the following inventory purchase data: February: 200 T-shirts x $10 per T-shirt = $2,000April: 150 T-shirts x $12 per T-shirt = $1,800August: 200 T-shirts x $16 per T-shirt = $3,200 Say you sell 250 T-shirts and want to work out your cost price using the FIFO method. As FIFO uses old stock first, the first 200 shirts will be sold from the oldest stock (at a cost price of $10 per shirt). The remaining 50 T-shirts will be taken from the purchase made in April at a cost of $12 per T-shirt. This will be calculated as follows: COGS (FIFO) = Cost of oldest inventory X Total inventory sold COGS (FIFO) = [(200 X $10) + (50 X $12)] X 250 COGS (FIFO) = ($2,000 + $600) X 250 COGS (FIFO) = $2,600 X 250 COGS (FIFO) =$650,000 This will leave your ending inventory as follows: April: 100 T-shirts x $12 per T-shirt = $1,200August: 200 T-shirts x $16 per T-shirt = $3,200 Conclusion Correctly managing your store's inventory will make adding products to Shopify collections easier because you'll be able to forecast inventory. You'll have an idea of your stock levels, the cost of stock, and how quickly your stock is being sold. The FIFO method is a global go-to when it comes to inventory management systems, as it will help reduce obsolete products while compensating for the rising prices of goods.
Fastest Way to Set up Pre-orders on Shopify in 2022
Out-of-stockFastest Way to Set up Pre-orders on Shopify in 2022A pre-order allows you to take a deposit for an out-of-stock or not yet available product and charge the remainder of the funds once the product is available. Therefore, communication with the customer is essential, because they have paid for a product in advance. Utilizing a back in stock notification form or setting up your email to automatically contact customers about out of stock items are effective ways to keep communication open. By marking items as out of stock and allowing customers to pre-order, you ensure your customers receive their products as soon as possible and provide yourself with a forecast of your products' potential demand. How to Enable Pre-Orders on Shopify Pre-orders can become complicated, because different pre-order setups work for different users and their products. The simplest way to set up pre-orders on Shopify is by installing a pre-order app from the Shopify app store. Shopify suggests the following: PreProductPre-Order ManagerPurple Dot Types of Pre-Orders There are three main types of pre-orders you can choose from. These include: Pay Now Pay now is the most common type of pre-order. This will take your customer through the normal checkout process where you'll receive the pre-order funds immediately. This can be used to cover wholesale costs, but customer expectations and timely delivery are things to keep in mind.Pay Later Pay later, as the name suggests, doesn't include any transfer of funds until the product is available. Pay later pre-orders can be used to indicate a product's potential demand, as well as for marketing purposes such as contact gathering. Crowdfunding Crowdfunding is usually done through third-party apps such as Crowdfunder. This pre-order is similar to that of "pay now" in the way that funds are received immediately. This type of pre-order is ideal for startups who need to raise capital, but will require more traffic as customers will be reluctant to pay for something with no promised arrival date. How to Authorize Pre-Order Payments There are certain tips for selling out of stock items you can keep in mind. Signing off on pre-order payments before your customer has been notified that the product is unavailable can lead to inaccurate sales metrics. Similarly, recording a sale once the product has been dispatched but not yet fully paid for could cause issues if the customer no longer has the remaining funds available. To avoid this you can turn on manual payment authorization with the following steps: From your Shopify Admin Dashboard, navigate to Settings > Payments.In the Payment Authorization section, select the Manually capture payment for orders box. Shopify's authorization period is 7 days. If you wish to prolong this period, a third-party payment method will need to be used. How to Add a Pre-Order Page Template on Shopify Follow the below steps to add a pre-order page temple: Log in to Shopify Admin Dashboard.Navigate to Themes > Action> Edit Code.Select Add a new template in the template section.Select product from the 'Create a new template for' box, name it pre-order, and select 'Create template'.Locate the code {% section 'product-template' %} and replace it with {% section 'product-pre-order-template' %}.To change the button text, replace addToCart: {{ 'products.product.add_to_cart' | t | json }}, with addToCart: {{ 'Pre-order' | json }}, Select Save. Next, you'll need to add a corresponding section directory with the following steps: Navigate to Sections > Add new section.Under the Create a new section called box, add 'product-pre-order-template' and select Create section.Delete all the code and replace it with all the code produced after completing step 7 above.In the new product-pre-order-template.liquid file you'll need to replace <span data-add-to-cart-text> {% unless current_variant.available %} {{ 'products.product.sold_out' | t }} {% else %} {{ 'products.product.add_to_cart' | t }} {% endunless %} </span> And replace it with <span data-add-to-cart-text> {{ 'Pre-order' | json | remove: '"' }} </span>Select Save. Lastly, you'll need to assign the new pre-order template to a product. To do this: Navigate from Shopify Admin > Products > All Products.Select the product that you wish to make available for pre-order.Locate the Themes templates section in the sidebar.From the drop-down menu, change product to product.pre-order.Click Save. Conclusion Setting up pre-orders on Shopify can be easily done with a third-party app and some simple code changes. Giving your customers the option of pre-ordering can help boost sales, provide a financial forecast, help with future marketing, and aid in determining the demand for a product.
Selling When Out-Of-Stock on Shopify: Do’s and Don'ts
Out-of-stockSelling When Out-Of-Stock on Shopify: Do’s and Don'tsIt's not uncommon for Shopify merchants to sell out-of-stock products. In this article, we'll share a few tips on how to sell, hide, and manage out-of-stock items to keep your sales funnel flowing. Why Would You Want to Sell Items When Out of Stock? You might want to allow customers to purchase out-of-stock products for the following reasons: Preorders are available for your products.You have stock coming soon and want to keep selling until it arrives.You want to sell first and then order supplies.You are not tracking the exact inventory quantity in your Shopify store. If this is the case, you may want to use an app like Bestsellers reSort to better manage your inventory. Can You Sell Items if You’re Out of Stock? When you sell out of an item, customers can't buy it until you update the inventory levels to add new stock. You can tweak the default to allow customers to purchase out-of-stock products from the inventory section. Currently, Shopify does not allow overselling by default; however, follow these steps for new or existing products to have Shopify allow a purchase when out of stock. For New Products When creating your product, tick the "Track Inventory" box under inventory—this is usually ticked by default. You'll notice another option to "Continue selling when out-of-stock" beneath that checkbox. When this box is ticked, the product will be available for overselling. For Existing Products Existing products can be edited in bulk, allowing you to make a modification once and apply it to all existing products. Follow the steps below to allow for overselling of these specific products: Navigate to Products > All ProductsChoose all of the productsSelect "Edit products"Once the spreadsheet opens, click "Add fields" and select "Continue selling when out of stock"Tick the checkboxes next to any products you want to keep selling after they've sold out Hiding Items That Are Out of Stock Out-of-stock products can be hidden from your customers using automated collections. You can do this manually on the Collections tab in your Shopify admin panel, or you can utilize an inventory management app to handle it for you. You may also wish to hide items in your store's default catalog collection. How to Hide Out-Of-Stock Products From Your Collections You must activate inventory monitoring in your Shopify admin before you can hide out-of-stock products and variants from your collections. Inventory tracking keeps track of the inventory level of each product you carry automatically. Steps: Enable inventory tracking for your products.Change the automated collection conditions for each of your collections and include the following:For Products must match, select all conditions.For Inventory stock, select is greater than and enter 0. Following these steps ensures that your automated collections do not contain any out-of-stock goods and that those goods are not visible to your consumers. After you receive inventory, any out-of-stock goods will reappear in your collections. Pro Tip: If you set Products must match to any condition, this method for hiding out-of-stock products won't work. How to Hide Out-Of-Stock Products in Your Default Catalog Collection Your store comes standard with a collection that displays all of your in-stock products at the URL {your-store}.myshopify.com/collections/all. It's easy to hide out-of-stock products from this collection. Steps: Take over your Catalog page by overriding it with your own automated collection.Set the collection's automated conditions to hide out-of-stock products. How to Hide Out-Of-Stock Products Using an App You can use an inventory management app instead of updating your automated collections or tinkering with the out-of-stock setting on the Liquid template. Several apps, such as Out-of-Stock Police and Bestsellers reSort, provide intelligent ways of hiding out-of-stock products. Don’t Unpublish Products to Hide Them Although it may seem like a quick-fix solution to unpublish out-of-stock products, it not only frustrates your customers with error pages but also negatively impacts your rankings and SEO. Instead, follow these tips and strategies to manage your out-of-stock inventory on Shopify. Tips on Managing Out-Of-Stock Inventory on Shopify Push out-of-stock products to the end of your collections Shopify apps like Out‑of‑Stock Police will automatically push out-of-stock items down to the bottom of your collection. Apply a sold-out badge to products Customers can then quickly distinguish between your products based on their availability. Use automated collection rules With automatic collections, you can set an option to display only the products that are in stock.
Top Tips for Managing Out-Of-Stock Items on Shopify
Out-of-stockTop Tips for Managing Out-Of-Stock Items on ShopifyAs a business owner, it is important to keep track of your inventory. Not only is it necessary to ensure that you always have the products that your customers want, but also to avoid overstocking or under-stocking your products. A good inventory management system will help you keep track of your stock levels and ensure that you are never caught off guard. Shopify offers several different options for managing your inventory, and we’ll cover the best tips to help you do so. 1. Deprioritize Out-Of-Stock Items When products sell out, it's important to move them to the end of the collections section of your store. This ensures that your customers can still see them but that they're not as prominently featured as products that are currently available for purchase. Additionally, by moving the sold-out products to the end of the collections section, it will be easier for customers to find the products that are available for purchase. 2. Use a Custom CSS “Sold Out” Badge When a product is sold out, you can use the custom CSS tag "sold-out" to indicate this on your Shopify store. You can use this tag to change the text color, background color, or font size of the text to indicate that the product is no longer available. You can also use this tag to create a custom message that will appear when someone tries to purchase a sold-out product. Although this is not everyone’s cup of tea, those Shopify owners that have CSS coding skills or have a developer on hand can simply add a customized script to any product listing. Failing this, some Shopify themes will have built-in badges that can be turned on and off in the product’s settings. Be sure to check this out before committing to using a custom script. 3. Make Use of Alternative Product Apps In addition to sold-out badges, store owners can make use of third-party apps that can add related product sections to Shopify product pages. This allows for more flexibility and organization on the product pages and can help increase sales by providing more information to shoppers. There are several options on the Shopify App Store, the best of them being Bestsellers reSort and Out-of-Stock Police. 4. Turn on Back-in-Stock and Pre-Order Notifications To combat out-of-stock products, shop owners can also use back-in-stock and pre-order notifications, both of which can be turned on in Shopify to help store owners manage their inventory. Back-in-stock notifications notify customers when a product they are interested in becomes available again, and pre-order notifications allow customers to reserve a product before it becomes available. For back-in-stock notifications, you’ll have to use a custom alert app. For pre-order notifications, you can use Shopify’s in-house settings. To do this, tick the “Continue selling when out of stock” box in the product’s “Inventory” section. By doing so, you will still be able to continue selling the product when out of stock. The only difference being that the order will be completed when your store once again has the product available in its inventory.

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