How to Track Shop Inventory – Step-by-Step Guide

Tracking inventory is the backbone of any retail business. Here’s how to do it right.

Manual vs Digital Tracking

Manual (register/notebook):

• Pros: No cost, simple
• Cons: Error-prone, hard to analyse, no alerts

Digital (app/software):

• Pros: Accurate, automatic reports, low-stock alerts
• Cons: Learning curve, may need internet

For most small shops, a simple app like Stockkeeper strikes the right balance.

5 Steps to Track Inventory

1. List all products – Name, unit, purchase price, selling price
2. Record opening stock – Count what you have today
3. Log every sale – Deduct from stock when you sell
4. Log every purchase – Add to stock when you buy
5. Set reorder levels – Get alerted before you run out

Reorder Point Formula

Reorder point = (Daily sales × Lead time) + Safety stock

Example: You sell 10 packets of biscuits per day, supplier takes 3 days, you want 5 days safety stock: Reorder point = (10 × 3) + (10 × 5) = 80 packets

When stock falls to 80, place an order.

[Join Stockkeeper’s waitlist](/ “#waitlist) – we’ll help you track inventory the simple way.