Preventing Obsolete Inventory in Shopify: 4 Best Practices

By Ioannis Athanasiou
Nevena Radulović - Editor for Egnition
Edited by Nevena Radulović

Updated July 6, 2023.

Man sitting at a desk using his computer while holding a box of inventory

As a Shopify store owner, you may face considerable difficulties if your inventory becomes obsolete.

Obsolete inventory refers to unsold products that are no longer useful or in demand.

Preventing obsolete inventory is essential to avoid wasting valuable resources that could be put to use elsewhere. Although you can dispose of obsolete inventory, it's preferable to prevent it in the first place to minimize your store's losses.

To help you decide how to prevent obsolete inventory, we'll look at four best practices you can employ in your Shopify store to achieve this goal.

» Not sure whether you have obsolete inventory? Here's how to identify it

1. Optimize Your Demand Forecasting

Optimizing your demand forecasts is one of the best strategies for stopping obsolete inventory. Precisely calculating consumer demand for your products can help prevent both understocking and overstocking, which can lead to unsold goods.

Using reliable software can help you predict demand more accurately and guarantee you never have too much product on hand. Also, it's crucial to consider seasonal variations and other elements that could affect demand.

» Make the most out of your Shopify inventory forecasting

2. Perform Regular Inventory Audits

To avoid having obsolete stock, you should conduct inventory audits often. This involves physically counting and confirming the inventory levels in your store for improved inventory management.

While end-of-year inventory audits are useful, they might not be enough to prevent obsolete stock. Instead, performing audits more regularly, like monthly or quarterly, may be a better idea to ensure the early detection of at-risk inventory before it becomes obsolete.

3. Avoid Impulsive Stock Orders

Before placing large product orders for your Shopify business, carefully evaluate your inventory requirements to prevent outdated inventory. While ordering items in bulk can be a good way to save money, you should opt for realistic product amounts and set accurate reorder dates to avoid accumulating unsold inventory.

It's crucial to stay away from rash stock orders based on a hunch or a trend. To make wise order decisions, evaluate your sales data and base your orders around it.

4. Use Reliable Inventory Management Software

To prevent obsolete goods in your Shopify business, dependable inventory management software is a crucial tool. Using real-time inventory tracking can help you adjust your products accordingly and minimize the possibility of financial losses.

In addition to helping you prevent obsolete inventory, reliable inventory management software can help you keep better track of your stock in all aspects, maintaining the constant performance of your Shopify store.

Keep Your Shopify Store Financially Stable

Shopify store owners may suffer severe financial losses as a result of holding outdated goods. By learning how to prevent obsolete inventory and putting these recommended practices into effect, you can ensure your Shopify store keeps operating steadily without having to clear deadstock products.

To make the most out of your inventory, make sure to prevent obsolete inventory before it becomes a problem by opting for automated inventory management, improving your demand forecasting, doing routine inventory audits, and avoiding impulsive stock orders.

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