What is Incoming inventory?

Incoming inventory matters because it tells you what is already on the way before you decide to reorder again. If you ignore it, you risk ordering too much and ending up with excess stock sitting in a warehouse while a prior order is still in transit.

To use it well, check incoming quantities and their expected arrival dates alongside your current stock on hand. This gives you a true picture of what you will have available by the time new sales come in, not just what is on the shelf today.

Example

A candle store has 40 units of a scented jar candle on hand. They already placed an order for 100 more units two weeks ago, due to arrive next week. That 100 units is incoming inventory. When deciding whether to place a new order, the owner adds the 40 on hand plus the 100 incoming, giving 140 units of total expected stock, instead of just looking at the 40 on the shelf.

Common mistakes

• Forgetting to count incoming inventory and placing a duplicate order.
• Treating incoming inventory as available to sell today, which can delay promises to customers.
• Not tracking expected arrival dates, so incoming stock is counted but arrives too late to prevent a stockout.

Incoming inventory and SteadyShelf

SteadyShelf tracks purchase orders you have sent to suppliers so it can factor incoming inventory into its reorder suggestions and order-by dates.

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

Related terms

Reorder point · Purchase order · Lead time · Stock cover · Backorder

Full inventory glossary

FAQ