Inventory management is a vital part of your responsibilities as a store owner. You must keep track of your inventory to ensure you have sufficient products in stock at all times. However, this may be difficult without inventory management tools like WooCommerce inventory management. These tools help automate a large part of your stock tracking, saving you time and effort.
If you are interested in learning about WooCommerce inventory management, then you are in the right place. In this article, I will expand on the benefits of the WooCommerce stock management system and how you can set it up for your store.
Understanding WooCommerce and Its Inventory Management
What is WooCommerce?
WooCommerce is the biggest name when it comes to online stores. It powers over 3.8 million online shops and counting. What makes WooCommerce so popular is the fact that it can turn any website into a functional e-commerce store. It is also free but offers exceptional tools to manage every aspect of an e-commerce store.
WooCommerce gives you complete control over your online store, its design, and its scalability. It allows you to set up your preferred payment methods, and shipping specifications, and it comes with hundreds of extensions to provide more functionality.
How Does WooCommerce Inventory Management Work?
WooCommerce comes with built-in features to track and manage inventory at the product level. The feature requires that you enter the inventory quantity for each product, and then WooCommerce will automatically deduct the total stock after each sale.
For example, if you have a stock of 20 pieces of the Gucci Polo T-shirt, and sell 3, your stock quantity will automatically go down from 20 to 17.
There’s the option to set a low stock threshold to allow WooCommerce to alert you via email to restock that product. You will, however, need to top-up any new shipment to keep things going.
For instance, if you buy 5 new pieces of the same Gucci Polo T-shirt, you will need to edit the product and increase the inventory quantity from 17 to 23 to reflect the new additions.
Setting Up Your WooCommerce Inventory
Guide to Setup
As I mentioned before, WooCommerce has an in-built system that lets you manage your inventory. However, you need to activate this feature to be able to use it (if it’s not already activated).
To do this, navigate to your WordPress dashboard, then go to WooCommerce>Settings.
On the next page, click on the “Product” tab.
Now click Inventory
Tick Enable Stock Management on the “Manage Stock” section, if it isn’t already ticked.
Doing this will allow WooCommerce to automatically deduct sold items from your inventory.
Once you’re done, click Save Changes.
Now that you have activated WooCommerce inventory management, let’s quickly look at how to input and set up a product’s inventory.
Setting Up Product Inventory
When adding a new product, you will have the option to set its inventory. For instance, let’s say you want to add a Gucci Polo shirt to your store.
You will first enter the product title, description, upload a product image, and choose a category.
Now scroll downwards to the “Product data” section.
Select the product type: There are four product types: simple products, grouped products, external/affiliate products, and variable products. I will explain more about these product types below.
Once you’ve selected a product type, click on Inventory.
Enter the product’s SKU (stock keeping unit) if you use SKUs and then tick the Stock Management option.
This will open up the stock management configuration settings for the product.
To set up WooCommerce inventory management, you need to first enter the product quantity. So if you have 20 Gucci Polos in stock, enter 20 into the quantity box.
Next, you have to decide whether you want to allow backorders for the product. Backorder allows you to temporarily hide the out-of-stock notification so it doesn’t show to customers.
You should only choose this option if you can get the out-of-stock product fast enough to deliver it to customers.
Next, you have to set the low stock threshold, when WooCommerce should alert you. Select any number you feel is right. We used 5 here.
Once done, scroll up and click Update or Publish (if you are creating a new product).
And that’s it. You’ve successfully set up inventory for the product.
Picking the Right Product Type
Any new product you add to WooCommerce will fall into either simple products, grouped products, variable products, or external/affiliate products. Here’s what each product type entails:
Simple Products
These are standalone products with no variations in size or color. They have fixed attributes like price and SKU (stock-keeping unit) and are perfect for items that don’t have options for customers to choose from. An example of a simple product is a book with just one color, one size, and one price.
Grouped Products
Grouped products, as stated earlier, allow sellers to showcase related items together as a single product offering. Customers can choose to buy the whole package or buy a single product from the group. An example is a grouped product consisting of a camera, tripod, memory card, and camera lens.
Variable Products
Variable products have different fixed attributes, like SKU and inventory. Each product variation also has its own sizes, colors, and prices. They are ideal for products with multiple variations for customers to choose from. An example of a variable product is a T-shirt. Most T-shirts come in different colors, sizes, and prices.
External/Affiliate Product
This WooCommerce product type is suitable for products that aren’t physically stored in your inventory. It is often used when you have to redirect users to a third party who sells the product, where you earn a commission on every sale. A perfect example of this is if you run an Amazon affiliate store selling photography equipment.
Enhancing Your WooCommerce Inventory Management
Keeping Your Inventory Updated
Once you set your product quantity, WooCommerce will automatically reduce the quantity whenever a sale is made. However, you need to manually update the stock whenever you receive a new shipment or sell items outside your online shop.
To do this, edit the specific product, scroll to Product data, and click Inventory.
Then add up the new products to get a total quantity. For example, if you receive 10 new pieces of the Gucci Polo, you should update the quantity of the product from 20 to 30. Then click Update.
Managing Stock Status
WooCommerce allows automatic tracking of stock status for each product. You can set the low stock threshold globally for all products or individual products.
To set stock status globally, go to WooCommerce>Settings>Products>inventory. Scroll down and enter the “low stock threshold” and “out of stock threshold” numbers.
WooCommerce should notify you about low inventory and display an “Out of stock” sign for the product.
To set the low stock threshold at the product level, enter the number when configuring the product inventory.
Viewing Stock Status Reports
WooCommerce provides reports to help you track stock levels. To access this report, go to Analytics>Stock.
This will take you to the stock report page, where you can sort products based on stock level or even download the report.
Exploring WooCommerce Inventory Management Plugins
Why Use Inventory Management Plugins?
WooCommerce inventory management has several limitations that can make it difficult to properly track your inventory. One way to up your inventory tracking game is to deploy inventory plugins. Here are some benefits of third-party inventory plugins:
- Most plugins provide features to track bulk product inventory. This can save you a lot of time, especially if you have a large product catalog.
- They eliminate repetitive tasks and provide a more efficient system for fast inventory updates.
- Third-party plugins often come with robust reporting tools that provide a comprehensive overview of your inventory.
- Manual input of numerous numbers is prone to errors. Implementing a plugin for inventory management helps prevent mistakes.
Top Inventory Management Plugins for WooCommerce
WooCommerce stands out for its wide range of plugins, including inventory plugins. Here are five top inventory plugins that will improve your inventory tracking game:
1. Veeqo
Veeqo is a top inventory management plugin that works for WooCommerce, Amazon, and other channels. The plugin offers several inventory management tools and synchronizes inventory levels across multiple online platforms.
Key Features:
- Multi-platform compatibility (WooCommerce, Amazon, eBay, etc.).
- Inventory synchronization.
- Warehouse management.
- Robust reporting tools.
Pricing: Veeqo is a free plugin.
2. WooPOS
WooPOS is another exceptional inventory manager for WooCommerce. It offers several features, like CRM, cloud database access, and a Point-of-Sale system for managing multiple stores.
Key Features:
- Cloud database access.
- Advanced reporting.
- Integrated POS system and CRM.
- Multi-store management
Pricing: Starts at $139 per month.
3. Stock Manager for WooCommerce
Stock Manager plugin is designed to notify users about low inventory levels on one screen. It allows you to edit and manage product quantity, SKU, and other details directly from your dashboard.
Key Features:
- Customizable low-stock alerts.
- Import and export inventory data.
- Dashboard widget for easy monitoring.
Pricing: Stock Management is free to use.
4. ATUM Inventory Management for WooCommerce
ATUM offers a feature-rich inventory management plugin with powerful search capabilities and support for variable products.
Key Features:
- Advanced search options.
- Bulk product actions.
- Export inventory to PDF.
Pricing: ATUM is a free plugin.
5. Smart Manager for WooCommerce
Smart Manager simplifies inventory management with its user-friendly interface and powerful editing tools, particularly in the pro version.
Key Features:
- Infinite scrolling.
- Advanced search.
- Bulk editing capabilities.
Pricing: Smart Manager starts at $199 annually for one site license.
Overcoming Challenges in WooCommerce Inventory Management
Common Difficulties and How to Overcome Them
Here are the common issues you may encounter using WooCommerce Inventory and how to overcome them.
1. Stock management option not available: You need to first enable stock management in your WooCommerce settings to start using it. Simply toggle the ‘manage stock’ functionality to avoid future headaches.
2. Overselling: Selling more products than you have in stock can be an issue. The easiest way to prevent this is to continuously update your WooCommerce inventory management. Add any new product to your inventory and deduct any product sold outside your online store.
3. Manual entry errors: Manual stock entry errors like typos or miscounts are a major issue with WooCommerce inventory. Consider using an inventory management plugin to automate these processes and increase accuracy.
4. Returns Management: WooCommerce has no option for managing returned products. You would need to manually update your inventory to reflect any returned item or use a third-party plugin to update it.
Optimizing Inventory Tracking and Control
Here are some ways to optimize inventory management with WooCommerce.
- Assign unique identifiers (SKUs) to your products for easy tracking and categorization.
- Use WooCommerce’s inventory reports and analytics to understand product performance and customer preferences.
- Configure low stock alerts to get notified when inventory levels are running low.
- Adjust your inventory strategy based on seasonal fluctuations and sales trends.
- Implement strict inventory control measures to minimize losses from shrinkage or obsolete stock.
- Regularly audit your inventory, conduct quality checks, and use discounts to clear slow-moving items.
Next Steps in Your WooCommerce Inventory Management Journey
Scaling Inventory Management for Growth
Here are some next steps to consider after implementing the foundational strategies for WooCommerce inventory management
- Consider advanced automation using third-party plugins.
- Expand and solidify your SKU system to ensure it remains scalable and adaptable.
- Continue to optimize your inventory by analyzing sales data and adjusting stock levels accordingly.
- Invest in solutions that enable efficient multi-warehouse management when your business expands to other areas.
- Strengthen your supply chain by integrating directly with suppliers and distributors.
- Continue to improve your processes by soliciting feedback from your team and customers about inventory management processes.
Frequently Asked Questions
Can WooCommerce do inventory management?
Yes. WooCommerce has built-in inventory management capabilities. It allows you to track stock levels, set up low-stock notifications, and manage product variations across your online store.
How do I enable inventory in WooCommerce?
To enable inventory management in WooCommerce, go to WooCommerce>Settings>Products>Inventory. Once there, check the box labeled “Manage stock” to activate inventory management features.
How do I manage product quantity in WooCommerce?
Managing product quantity in WooCommerce is done at the product level. You will need to enter the quantity of each product when creating or editing them, and then update the number as you get more shipments. To find the product quantity option, scroll down to the Product Data section on the product page, click on inventory, and tick “Stock management.”
How many types of products are there in WooCommerce?
WooCommerce supports various product types, including simple products, grouped products, variable products, and external or affiliated products. Each product type caters to different business needs and product configurations.
What does SKU mean?
SKU stands for Stock Keeping Unit. It’s a unique identifier assigned to each product in your inventory to help track and manage stock levels. SKUs typically include product-specific information such as size, color, style, or other attributes to differentiate between similar items.