Inventory glossary

What is Bin location?

A bin location is the specific spot in a warehouse or stockroom, such as a shelf, rack, or box, where a particular item is stored.

For a small Shopify store, a bin location system saves time when packing orders. Instead of hunting through boxes for a SKU, a staff member can look up the bin code and go straight to the shelf. This matters more as product count grows past what one person can remember by sight.

Bin locations also help during stock counts and receiving. When new stock arrives, it gets put away in its assigned bin right away, so nothing sits loose in a random spot. This keeps counts accurate and makes it easier to spot when something is missing or misplaced.

Example

A candle store labels its stockroom shelves A1 through A20. Vanilla Bean 8oz candles are stored in bin A5, and Lavender 8oz candles sit in bin A6. When a staff member packs an order, they check the pick list for "A5" and go straight there instead of searching the whole room.

Common mistakes

  • Using vague labels like "back corner" instead of a fixed code, which slows down picking.
  • Not updating the bin location when stock moves to a new shelf, so records no longer match reality.
  • Assigning one bin to multiple unrelated SKUs, which causes picking errors.

Bin location and SteadyShelf

SteadyShelf tracks quantity on hand per SKU for forecasting and reordering, but it does not manage bin locations or warehouse layout.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

Related terms

Put-away · Pick list · Quantity on hand · Warehouse management system · Stock keeping

Full inventory glossary

FAQ

Does a bin location tell you which store or warehouse the stock is in?

No. A bin location is a warehouse shelf or slot address, like "Aisle 3, Shelf B". It tells you where stock sits inside one location, not which store location holds it.

What happens if an item in a bin location is damaged?

You still count it, but you flag it as damaged inventory so it is not sold or reordered against until it is fixed, written off, or returned to the supplier.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

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