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
Product + Variant Title
Brand
The basic behavior of this report is a drill down report, so you can click on items and it will take you one level deeper. However you can now also add and remove dimensions and reorder them.
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.
Units Received: Units Sold in Date Range - (Starting Inventory - Ending Inventory)
Sell-through Rate: Units Sold in Date Range / (Starting Inventory + Units Received)
All-Time Sell-through Rate: Units Sold All Time / (Inventory Today + Units Sold All Time)
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.