How to Track Inventory Across Multiple Sales Channels (Amazon, Shopify, Etsy)
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One of the best ways to grow your e-commerce business is by making use of several platforms such as Amazon, Shopify and Etsy. Each of these platforms provide their own unique benefits but lead you to run into one of the most notorious issues: How to track inventory across multiple channels without overselling?
Keeping stock levels synchronized across platforms can be tasking, and many business owners quickly fall into multi-channel inventory management problems such as stock outs or inventory discrepancies between Amazon and Shopify or any other channel you sell on.
In this guide, we cover several issues related to multi-channel inventory, the mechanics of how Amazon, Shopify, Etsy inventory sync works and step by step strategies to automate your work flow.
Why Tracking Inventory Across Multiple Channels Is So Challenging
Selling on a single platform is quite straightforward. Everything changes once you add several storefronts such as Amazon or Etsy.
- Orders come from multiple directions at once: If two customers place an order on two different platforms, but only one inventory source is updating, you end up creating an oversell.
- Platforms use different SKUs and product rules: Etsy, Amazon and Shopify have different formats which don’t always align simply.
- Manually Updating: Manually updating stock across dashboards is stressful and prone to error.
- Each platform updates differently: Amazon may adjust inventory instantly while Etsy may take a while to reflect changes in stock. This itself creates a time lag. These platforms often need a syncing system in place as they work in their own world.
Common Multi-Channel Inventory Management Problems
Online sellers often experience a combination of problems when a proper system is not in place for how to track inventory across multiple channels. Some of these issues are discussed below:
- Inaccurate Forecasting: It becomes extremely difficult to trust your data if your platforms inventory data do not match.
- Lost Revenue: Some products may prematurely sell out even though you have stock on another platform.
- Overselling: Two separate customers buy the same last unit, one on Amazon and one on Etsy, and suddenly you are short of inventory to fulfill both orders. This can damage your Amazon metrics and customer satisfaction.
- Overstock: Because inventory figures are inaccurate, you may end up over-ordering stock – tying up capital unnecessarily.
- Time Management: Manually updating spreadsheets of each platform wastes valuable time which should have been used in building your brand.
- Inventory Discrepancies Between Amazon and Shopify: Discrepancies in inventory between different platforms can occur due to timing delays, unlinked listings, missing sync automation etc.
How Multi-Channel Inventory Sync Actually Works
It’s important to understand how Amazon, Shopify, Etsy inventory sync actually works.
- Centralized Inventory System: Such a system should be able to track total stock, connect all sales channels and integrate adjustments to stock through every platform. Any sales, restock, or return should be updated in the master quantity by the system and immediately update quantities in each platform. This system could be a warehouse management system, a custom-built solution, a Shopify-based hub or a 3PL with strong integration tools.
- Real-Time: The speed in which updates occur depend on your software which could be every few minutes or instantly if the system is better.
- Popular Inventory Management Tools: These include Sellbrite, Linnworks, Zoho Inventory, etc. Shopify can also act as a central system if all listings share the same SKUs across different platforms.
How to Prevent Overselling Across Sales Channels: Best Practices
- Standardized SKUs: Mismatched product identifiers are one of the root causes for inventory discrepancies between Amazon and Shopify. Every product should have the same SKU, one universal naming convention and the same variant structure. Small differences like AB-001 on Amazon and AB001 on Shopify can create sync failures.
- Track All Warehouse Locations Separately: If you use a 3PL, dropshipping or Amazon FBA, each inventory pool needs to be individually tracked. Your system should be fully updated on how much stock is inbound, how much is on the shelf and update channels based on the correct location. This avoids double-counting inventory.
- Organize Your Warehouse: You can’t expect to have accurate numbers if your physical warehouse is a mess.
- Buffer Stocks: Sellers can keep a few units off each platform, limit your listings to 95% of actual stock in hand or reduce available inventory with Amazon in peak sales season. These are some of the best ways for sellers to know how to prevent overselling across sales channels.
- Automation Tools: Your system should alert you if an SKU falls below a minimum threshold, Amazon FBA hits a restock limit, or demand suddenly spikes. Your system should instantly update stocks after a transaction. Avoid systems that update slowly, as that can be a severe issue during peak season. Definitely try to avoid manually updating spreadsheets of inventory!
- Barcodes: It’s always best to barcode everything, use scanners and automate inflows and outflows. This dramatically reduces manual error.
- Variance Analysis: Perform regular counts of certain SKUs and match them with system counts to ensure accuracy. Correct any discrepancies if identified.
- Forecasting: Use forecasting tools to predict product demand and plan accordingly. Remember to take into account supplier lead times, seasonal demand and Amazon FBA inbound delays.
Multi-Channel Inventory Tracking Solutions for Small Businesses
Depending on your state, you may have differing inventory system requirements.
- Small handmade sellers on Etsy or Shopify: consider using CraftyBase, Sellbrite or Stock Sync.
- Sellers scaling to multiple platforms: consider using Sellbrite, Linnworks or Finale Inventory. They offer warehouse management and inventory sync very close to real-time.
- High volume Amazon brands expanding into Direct-to-Customer: Cin7 Omni or Brightpearl are great contenders for such businesses.
No matter the size of your business, the key is to choose a system that connects all platforms seamlessly, updates inventory quickly or in real-time and reduces manual work.
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The Future of Multi-Channel Inventory Management
As eCommerce continues to expand, inventory syncing will become even more important. We may already see some advancements or expect to see some of the following in the near future:
- More platforms offering native inventory APIs
- Faster sync times across all channels
- AI-powered forecasting and purchasing
- Automated listing creation across marketplaces
- FBA-like fulfillment options for Etsy sellers
- Fully connected 3PL ecosystems
Brands that embrace automation now will have a massive advantage later.
Learning how to track inventory across multiple channels is vital in scaling a successful e-commerce business. By managing inventory effectively, using consistent SKUs, and implementing reliable syncing tools, the most common multi-channel inventory management problems can be eliminated such as overselling, stock mismatches and constant manual corrections.
If you are experiencing inventory discrepancies between Amazon and Shopify, trying to find practical multi-channel inventory tracking solutions for small businesses or trying to make sense of Amazon Shopify Etsy inventory sync, search for the right systems and processes that would make a difference. When your inventory stays accurate across every sales channel, your business becomes easier to manage, more scalable, and significantly less stressful.
