Inventory glossary
What is Quantity on hand?
Quantity on hand is the number of units of a SKU physically present in your warehouse or store right now, not counting what is on order or already promised to customers.
Quantity on hand is the number you check before deciding whether to reorder a SKU. If it is wrong, your reorder timing is wrong too, either you order too early and tie up cash in stock you did not need yet, or too late and run into a stockout.
Small store owners should treat quantity on hand as a live number that changes with every sale, return, and received shipment. Counting it accurately, and reconciling it against what the system says after a physical count, keeps your reorder decisions grounded in reality instead of guesswork.
Example
A candle store counts 140 units of a lavender candle on the shelf. That is the quantity on hand. If 20 of those are already allocated to unfulfilled orders, the quantity available to sell is 120, but quantity on hand stays at 140 until the units physically leave the shelf.
Common mistakes
- Confusing quantity on hand with available to promise, which should subtract committed orders.
- Not updating quantity on hand after damage, returns, or manual stock removals.
- Relying on quantity on hand alone without checking incoming inventory before placing a new order.
Quantity on hand and SteadyShelf
SteadyShelf uses your quantity on hand, combined with average daily sales and lead time, to tell you when a SKU is due to be reordered.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
On hand inventory · Committed inventory · Available to promise · Incoming inventory · Reorder point
FAQ
What is the difference between quantity on hand and available to promise?
No. On hand is physical stock in the warehouse right now. Available to promise subtracts committed orders from on hand, so it can be lower.
How often should quantity on hand be checked?
Use quantity on hand together with incoming inventory and committed inventory. If on hand is low but a large shipment is due before your next sales cycle, you may not need to reorder yet.
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