How to Prevent Stock Outs On Your Shopify Store 

How to Prevent Stock Outs On Your Shopify Store

Shopify provides an intuitive platform for eCommerce businesses to manage and track their inventory. The success of an online store relies heavily on the shop’s ability to maintain stock levels and prevent stock outs so that customers can easily buy what they need. Stock outs cause lost sales revenue and lost customers, resulting in an overall drop in income for your business. To ensure optimal inventory management on Shopify and avoid the costly consequences of stock outs, businesses must take precautions and develop strategies to prevent such issues.

What Is a Stock out?

A stock out, also known as an out-of-stock (OOS occurs when a shop does not have the item or the number of items requested by a customer. This can cause delivery delays and frustrated customers who may turn to their competitors instead. It can also lead to lost sales and an overall loss of reputation, as customers may not be able to rely on businesses to provide them with the products they need. 

Why You Should Avoid Stock outs

Store owners must do whatever they can to avoid stock outs, as they can create many problems for their business. Some of the issues associated with stock outs include:

  • Delivery delays: Customers may not receive the item they ordered until the next shipment arrives, which could lead to delays in shipping and the arrival of products.
  • Poor reputation: A business may end up with a reputation for not being able to deliver products as promised, which can lead to customers moving to competitors.
  • Reduced revenue: If customers cannot get the items they want, they may not make any purchases at all. This can cause a substantial drop in revenue.
  • Low customer loyalty: When customers are frustrated with not getting what they want, they may be less likely to return to the business in the future.

Common Causes of Stock outs

Although stock outs can be caused by a variety of factors, some of the most common reasons for them are:

  • Inaccurate demand forecasting: Businesses should always aim to conduct regular inventory assessments to determine which products are selling and the levels of customer demand. If these assessments are not conducted properly, businesses may run out of certain items too quickly.
  • Improper ordering: Businesses must get their orders right to ensure they are not running out of certain items. If businesses are ordering too much or too little of certain items, they will likely run into stock out issues.
  • Supply Chain Disruptions: Disruptions in the supply chain, such as transportation delays, production issues, or supplier problems, can significantly impact inventory availability. Failure to manage and mitigate these risks can result in stock outs.
  • Error in inventory data: Without accurate inventory data, business owners may end up ordering too much or too little of certain items, which can result in stock outs.
  • Overselling: If businesses do not track inventory accurately, they may find themselves unable to fulfill orders due to overstocking or overselling products.

How Can Businesses Prevent Stock outs?

Businesses can take a variety of steps to ensure they are better managing their inventory and prevent stock outs from occurring. Some of the most essential steps for plans to prevent stock outs include:

1. Use back in stock alerts

One key step to preventing stock outs is to use back in stock alert. This is effective for engaging with customers and keeping them informed about product availability. By allowing customers to sign up for notifications when a product is back in stock, businesses can drive anticipation and ensure quick sales once the items are replenished. Implementing a user-friendly notification system through email, SMS, or push notification and adding a “Notify Me” button to stock out items can significantly enhance customer satisfaction and loyalty. Also, it can provide valuable insights into e-commerce preferences and trends.

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Read more: 10 Proven Strategies For Sending Back In Stock Notifications

2. Monitor Stock Levels

Regular monitoring of stock levels is essential in preventing stock out. Keeping an eye on customer demand as well as the levels of items both in the shop and with suppliers helps businesses anticipate demand and maintain an adequate level of available stock. This can help businesses optimize their inventory and ensure that their shop always has the items customers need.

3. Demand forecasting

Accurate demand forecasting is crucial to prevent stock outs. By analyzing historical sales data, market trends, and customer insights, businesses can predict future demand patterns. This information enables them to plan their inventory levels accordingly, ensuring they have enough stock on hand to meet customer needs. To ensure accuracy in forecasting, businesses should track sales data on Shopify and use algorithms to assess industry trends.

4. Resolve Inventory Discrepancies

Inventory discrepancies can often lead to stock outs. It’s crucial for businesses to regularly conduct inventory audits and reconcile any discrepancies. By employing inventory management systems and conducting periodic physical counts, you can ensure that your stock levels are accurate and identify potential issues before they result in stock outs.

5. Data Analytics

Utilizing data analytics to monitor customer behavior, inventory turnover, and sales patterns helps businesses optimize their inventory management strategies. Data-driven insights enable them to make more accurate predictions and prevent stock outs.

6. Track sales data

Analyzing sales data is vital for preventing stock outs. By closely monitoring sales trends, you can identify products that are in high demand and adjust your ordering and production accordingly. Utilize sales analytics tools to gain insights into customer buying patterns, seasonality, and promotional effectiveness. This data-driven approach enables businesses to make informed decisions and proactively manage their inventory.

7. Find reliable suppliers

Building strong partnerships with reliable suppliers is a crucial aspect of preventing stock outs. Businesses should collaborate closely with their suppliers to understand lead times, negotiate favorable terms, and have backup suppliers in case of unforeseen circumstances. Establish strong relationships with these suppliers, ensuring open lines of communication and prompt response to inquiries or potential supply

8. Supply Chain Visibility 

Improving visibility across the supply chain is vital. From raw materials to finished products, having transparency allows businesses to identify potential bottlenecks and make informed decisions to prevent stock outs. Implementing supply chain management software can provide real-time updates and enable efficient coordination, reducing the risk of stock outs caused by delays or miscommunication.

9. Keep Safety Stock

Maintaining safety stock is a smart precautionary measure to prevent stock outs. Safety stock refers to additional inventory kept on hand to mitigate unforeseen fluctuations in demand or supply disruptions. By analyzing historical data and considering lead times, businesses can determine the appropriate level of safety stock to keep, providing a buffer against stock outs during unexpected situations.


Stock outs can be devastating for businesses, resulting in a loss of customers, sales, and profits. Shop owners must take proactive measures to ensure that their stock levels remain accurate and prevent stock outs from happening. Regular monitoring of stock levels, accuracy in forecasting demand, and utilizing back-in-stock alerts are some of the key measures business owners can take to avoid stock outs and ensure their inventory management on Shopify is successful.

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