Let's take a look at an example of this in practice.
Live Inventory on Sales Reports
As many of you know, Shopify's Sales Reports display what's true at time of sale (meaning the information that's displayed in them is true 'at the time the sale was made').
Conversely, Inventory reports display what's true in your store right now (meaning, they're live - essentially).
However, what if we could combine the two? Namely, what if I want to see current Inventory Quantity on a historical Sales report?
Well, now we can! In fact, here's a report we set up specifically to do that for one of our customers:
Using this data, they could see exactly how much of each item sold (net quantity) and compare it to what's currently in stock (Inventory Item / Available) in the Inventory.
This would work for any Sales report that uses Products/Variants. So at their request, we added the new data to our new Product Pick List
report as well.
As you can imagine, having this information on hand is very useful when handling fulfillments. So what we did next was group all of the products by variant, filter to show only unfulfilled/partially fulfilled orders, and then give them a report that lets them directly compare Available vs Fulfillable Quantity side-by-side in the same report (so they knew how much to order).
This is the end result:
Of course, it's not just the metric itself that's interesting here but all the possibilities that are unlocked simply by having access to this data...
Sell Through Rate
So what sorts of things can we do now that we have Live Inventory on a historical Sales report?
Well, let's start off by working out the Sell Through Rate (STR). For that we need a simple formula - Sell Through Rate = Quantity Sold divided by (Inventory / Available + Quantity Sold) x100
Here's a sample we setup for one of our merchants:
Once the Sell Through Rate metric has been setup, you can include it on a number of different sales reports in much the same way (e.g. Sales by Channel, Sales by Vendor, you get the idea).
Pretty exciting stuff...
Daily Quantity Sold / Days Remaining
Of course, there are lots of other ways to combine data points under this new system.
For instance, once I know how much I've sold over any given period (e.g. Last 90 Days), I can use this information to work out my daily average (Daily Quantity Sold).
Again, all we need is a simple formula - Daily Quantity Sold = Quantity divided Number of Days in the Period.
Once you have this field setup, you can even go ahead and sort by this column to see exactly which item you sell the most on any given day.)
So now, let's put two and two together - combining Inventory Available with Daily Quantity Sold to work out the Days of Inventory Available.
Again, we just need one last formula: Days of Inventory Available = Inventory Available divided by Quantity Sold (Daily)
With a report like this, not only can you predict how long your current inventory will last (assuming current stock levels) but you can also quickly see which items to prioritize when re-ordering new stock.
Pretty cool stuff eh? If you'd like us to add any of these metrics to your store, feel free to let us know!