Inventory glossary

What is Stocktake?

Stocktake is the process of physically counting all the inventory in a store or warehouse and comparing it to what the records show.

A stocktake tells you whether the inventory numbers in your system match reality. Small stores that skip it often make reorder decisions based on numbers that are quietly wrong, which leads to overstocking items you actually have plenty of or running out of items the system thinks are in stock.

Run a stocktake at least once or twice a year, and after that, fix any discrepancies in your system right away rather than letting them sit. If the same SKUs keep coming up short or over, that's a sign of a process problem like miscounted receiving or undocumented damage, not just bad luck.

Example

A candle store's records show 340 units of its bestselling scent. During the stocktake, staff count the shelves and find 322 units. The difference of 18 units gets logged and investigated, then the system is corrected to 322.

Common mistakes

  • Counting while sales are still coming in, which creates mismatches that have nothing to do with real errors.
  • Not investigating why counts are off, so the same shrinkage or process error repeats next time.
  • Treating a stocktake as a one-time event instead of scheduling it regularly.

Stocktake and SteadyShelf

SteadyShelf relies on accurate on-hand counts to forecast demand and set order-by dates, so a recent stocktake makes its suggested order quantities more reliable.

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

Related terms

Inventory accuracy · Inventory adjustment · Cycle count · Physical inventory count · Inventory shrinkage

Full inventory glossary

FAQ

How often should a small store do a full stocktake?

Weekly cycle counts check a small portion of SKUs on a rolling schedule, so every item gets checked a few times a year without closing the store. A full stocktake checks everything at once, usually once or twice a year.

What is the difference between a stocktake and a cycle count?

Count what the system says you have on hand, then physically count the stock and compare. If the counts match, no action needed. If they differ, record an inventory adjustment to fix the recorded quantity.

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