Ecommerce · Website glossary

Inventory

Quick answer · What is Inventory?

The quantity and state of items a business tracks as available, reserved, or otherwise held for sale.

IN PRACTICE

Inventory: an example

A shop adjusts recorded stock after receiving a delivery and after fulfilling orders.

KEEP IN MIND

Physical stock and sellable stock can differ when items are reserved, damaged, or pending reconciliation.

Put the idea to work

Frequently asked questions

What is a practical example of Inventory?

A shop adjusts recorded stock after receiving a delivery and after fulfilling orders.

Why can physical stock differ from sellable stock?

Physical stock and sellable stock can differ when items are reserved, damaged, or pending reconciliation.

Which concepts should I read alongside Inventory?

Stock status: A label describing whether an item is currently offered as in stock, out of stock, or available under another stock policy.
Backorder: An order accepted for an item that is currently unavailable for immediate fulfillment.