Running âout of stockâ on Shopify can be a big problem, leaving you rushed to restock while customers miss out on what they want. It can hurt your sales and even might send shoppers to your competitors.
Just imagine a customer finds their favorite product in your store and adds it to their cart, and thenâbam! Itâs unavailable. Not only do you lose a sale, but your competitors gain one. These moments can damage trust and disrupt your growth.
But with right tools and strategies, you can avoid these costly stockouts by leveraging automated alerts to improve demand forecasting.
In this guide, weâll explore actionable strategies for preventing Shopify âout-of-stockâ situations, managing inventory smarter, and keeping customers satisfied. Stay ahead of stock issues with proven solutions tailored for Shopify stores.
Understanding Stock Outs on Shopify
Weâve all been thereâexcitedly adding a must-have item to the cart, mentally planning how great it looks or functions in our lives. And then...bam!
An âout of stockâ message can stop us and ruin the shopping experience. Itâs not just a minor inconvenienceâitâs a frustrating letdown that leaves customers annoyed and abandoned.
The above meme is spot on. It's that moment of disbelief when your customers think, âWait, what do you mean it's out of stock? I came here for this!â
For Shopify store owners, the goal is not to apologize to their customers but to prevent this situation from occurring in the first place.
Stockouts are a lose-lose situation: on the one hand, they hurt your bottom line as potential sales are lost to competitors, while on the other, they damage customer trust and make your brand look unreliable.
Thatâs not allâit can also hurt customer loyalty, miss chances to upsell, and waste marketing efforts on products that arenât available.
But here is the good news: stockouts are not inevitable. By understanding the root causes and their flowing impact on your business, you can implement proactive strategies to keep your customersâand your revenueâhappy.
Impact of Stockouts on Shopify Businesses
Stockouts can feel like minor hiccups, but their wave effects often cause significant damage to Shopify businesses and brands. Letâs break down the real-world consequences:
1. Lost Revenue
Every minute your product is unavailable, youâre losing sales. A survey by the National Retail Federation found that 43% of consumers would switch to a competitor if the item they want is out of stock. For Shopify store owners, even a single day of being "out of stock" can impact monthly earnings.
2. Customer Frustration
Consider your customers willing to buy a best seller but cannot find it. Their disappointment often drives them directly to your competitors, who may win their loyalty for good.
3. Damage to Brand Reputation
Stockouts donât just hurt sales; they erode trust. Customers expect reliable availability. Consistent stockouts make your store appear unreliable and poorly managedâtwo perceptions no brand wants to cultivate.
4. Operational Inefficiencies
Inefficient inventory management disrupts your entire workflow. From inaccurate demand forecasting to rushed replenishment orders, stockouts strain resources and create unnecessary chaos.
5. Reduced Customer Lifetime Value (CLV)
Stockouts can harm long-term relationships. A frustrated customer who leaves your store might never return, reducing their contribution to your business. Shopify businesses thrive on repeat purchases, and stockouts risk that.
6. Missed Upselling Opportunities
When a key product is unavailable, it impacts upselling and cross-selling opportunities. Customers who come to buy one item often consider additional productsâbut not if the main product isnât there.
7. Increased Marketing Costs
Stockouts waste advertising spend. If youâre driving traffic to an unavailable product, youâre burning marketing dollars without any return. Worse, this experience discourages potential customers from clicking your ads again.
Why Shopify Stores Face Stockout Issues?
Stockouts often seem unavoidable when running a Shopify store but are preventable. The key is to identify the root causes and address them strategically. Letâs explore the most common reasons behind Shopify's stock challenges.
Inefficient Inventory Tracking
Many Shopify businesses depend on outdated or manual tracking systems, which leave room for errors. Knowing whatâs selling fast or running low is hard without real-time visibility.
This gap often leads to problems with Shopify's out-of-stock inventory, especially during sales peaks.
Supply Chain Inefficiencies
Delays in production, shipping, or supplier communication create a domino effect. If a product takes longer to arrive than expected, you risk empty shelves. Additionally, brands may struggle to view cumulative stock numbers across all locations, further compounding the problem.
Supply chain breakdowns are a significant factor in Shopify Plus out-of-stock scenarios. Building supply chain resilience can help mitigate these challenges. According to Predikoâs guide on supply chain resilience, businesses that adopt robust forecasting tools and real-time visibility reduce disruptions and maintain stock availability more effectively.
Poor Demand Forecasting
Misjudging demand is a common challenge, especially for growing Shopify stores. Without accurate forecasting, businesses either overstock (tying up capital) or understock, leading to stockouts. Seasonal trends and sudden sales spikes make forecasting even harder.
Key Strategies to Avoid Running Out of Stock on Shopify
Avoiding stockouts requires proactive planning for anticipated demand and the right tools. By leveraging advanced systems and innovative processes, Shopify businesses can keep their inventory on track and seamlessly meet customer expectations.
Hereâs how to tackle Shopify's out-of-stock challenges effectively.
Automated Alerts for Inventory Management
Timely alerts are a game-changer. Automated notifications provide real-time updates on low stock levels, upcoming stockouts, and replenishment needs.
With timely alerts, businesses can shift from reactive to proactive inventory management. Instead of addressing stockouts after they occur, these notifications empower you to prevent issues before they arise. This not only saves time and money but also helps maintain customer satisfaction by ensuring products are always available.
Tools like Prediko offers daily and weekly alerts to track inventory, ensuring you never miss critical changes.
These alerts delegate you to act before running out, maintaining consistent stock levels. For example, Predikoâs alerts analyze your current stock and predict when it will run out, keeping you always one step ahead.
Advanced Demand Forecasting
Accurate forecasting helps Shopify businesses predict demand more effectively. AI-driven tools analyze historical sales, seasonal trends, and market data to offer precise insights. You can prevent out-of-stock inventory Shopify issues by understanding what sells and when.
Demand forecasting also enables smarter purchasing decisions, reducing the risk of overstocking or tying up unnecessary capital.
Streamlined PO Management
Purchase orders (POs) can be significantly complex when scaling Shopify stores. Tools like Prediko simplify this process. You can easily track purchase orders in one centralized location at every stageâcreation, ordering, and receiving.
Efficient PO management ensures products arrive on time, helping you avoid Shopify plus out-of-stock situations caused by supply chain delays.
Data-Driven Insights and Reporting
Analyzing sales performance and inventory trends is crucial. Shopify store owners need detailed reports highlighting top sellers, stock turnover, and upcoming risks. Predikoâs advanced analytics provide actionable insights, helping you make informed decisions.
With these strategies, Shopify businesses can prevent stockouts and improve operational efficiency.
Case Study: How Obsidian Piercing increased best seller revenue by 200%.
Using Prediko's advanced inventory management features, Obsidian Piercing boosted its best-seller revenue by 200%. By leveraging daily and weekly stock alerts, Obsidian effectively monitored inventory levels, optimized product availability, and increased sales. Prediko's intelligent analytics and streamlined PO management helped the business drive consistent revenue growth.
How to Manage Unexpected Out of Stock for Your Shopify Store?
Despite your best efforts, unexpected stockouts can still happen. The key is to have a plan in place to mitigate the impact. Hereâs how Shopify businesses can handle Shopify out-of-stock situations effectively:
Implementing Pre-Orders to Maintain Sales
When faced with stock outs, consider offering pre-orders for out-of-stock products. Pre-orders allow customers to reserve products in advance, ensuring you donât lose a sale.
This strategy provides an opportunity to gauge demand and plan for restocking more accurately while also retaining customer interest. Clear communication about expected delivery dates ensures customers are aware of the waiting time, preserving satisfaction and loyalty.
Learning from Stockouts
Every stockout is an opportunity to improve your inventory management. Analyze why the issue occurred and take steps to avoid it.
- Review Sales Data: Identify trends that led to the stockout.
- Update Forecasting Models: Adjust demand predictions based on new insights.
- Strengthen Supplier Relationships: Work with suppliers to improve lead times.
- Improve Safety Stock Levels: Keep a buffer stock to handle sudden demand spikes.
With these strategies, you can turn stockouts into learning experiences and prevent them from recurring.
How Prediko Helps Shopify Brands Prevent Stockouts?
â
Prediko is more than just an inventory management toolâitâs a comprehensive solution designed to tackle out-of-stock inventory Shopify challenges head-on. From automated alerts to advanced analytics, Prediko equips Shopify businesses with the tools they need to stay ahead of stockouts.
Inventory Alerts
Prediko offers daily alerts that provide actionable insights.
These alerts include current stock levels, projected stockout dates, and recommended actions. With these updates, Shopify store owners can act proactively, reducing the risk of running Shopify out of stock.
AI-Driven Demand Forecasting
Predicting demand accurately is essential for avoiding stockouts. Predikoâs AI-driven forecasting analyzes past sales, seasonal trends, and customer behavior. It helps Shopify businesses plan inventory effectively and prevent Shopify plus out-of-stock scenarios.
Comprehensive PO Management
Prediko makes purchase order management seamless. Its Kanban view allows tracking of POs in each status: creation, ordering, and receipt. This ensures that products arrive on time and that inventory moves smoothly.
Customization and Performance Metrics
Prediko provides over 100 filters for customized reporting, allowing businesses to focus on what matters most. From net sales to AOV (average order value), these insights drive better decision-making and prevent inventory issues.
Prediko empowers Shopify businesses to turn stock challenges into growth opportunities by combining advanced features with an intuitive interface.
Turn Stock Challenges into Growth Opportunities
Managing stock on Shopify can be tricky, especially given fluctuating demand, supply chain delays, and the looming fear of running out of stock. However, you can turn these stock challenges into growth opportunities by understanding your inventory trends and utilizing tools like Prediko.
With more competent inventory management, predictive forecasting, and timely alerts, you can avoid stockouts, optimize replenishment cycles, and keep your customers happy and returning for more. Your Shopify store can overcome stock-related frustrations by proactively leveraging advanced tools to thrive. So why waste time? Choose Prediko for all your needs.
âBook a demo or start with a 14-day free trial and change your inventory management today.
