tl;dr
This report helps you understand the monetary value tied to your inventory.
With this report you'll be able to analyze how quickly your current stock will sell out.
Understanding this allows you to proactively order new products to avoid running out of stock.
How does it work:
The report allows you to analyze inventory data across four dimensions. Each dimension provides drill-down capabilities, similar to the attribution reports:
Product Type
Product Title
Variant Title
Product SKU
You can click on a specific Product Type to drill down to the Product Title level, where only the relevant Product Titles are displayed. Additionally, you can switch between dimensions without selecting a specific item.
Date Range:
The Date Range determines your Sales Velocity and Stock Coverage. For example, if Black Friday is approaching, you can analyze last year’s BFCM sales period to gauge whether your current inventory will suffice for this year’s event.
Inventory Level Selector:
The Inventory Level Selector on the top right lets you choose the base point for calculations:
Today: Uses today’s inventory level for calculations.
Start of selected date range: Uses the inventory level at the start of the selected date range.
End of selected date range: Uses the inventory level at the end of the selected date range.
Metrics:
Units Sold: The number of units sold within the selected date range.
Inventory Level: The current stock level, excluding non-shipped orders (data sourced from Shopify).
Inventory Value: Calculated as Inventory Level × Cost of Goods Sold (COGS).
Sales Velocity per Day: Calculated as Units Sold ÷ Number of Days in the Date Range.
Stock Coverage in Days: Calculated as Inventory Level ÷ Sales Velocity per Day.
Summary
The Inventory Report helps you understand your product inventory and its monetary value, based on sales performance. It provides insights into how quickly your current stock is expected to sell, enabling timely reorders to prevent stockouts.