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Metrics type: Supporting MetricsCategory: Ecommerce Platform

At a glance

Distribution of variants across inventory bands (out-of-stock, critical low, low, healthy, surplus). The fat-tail view of stock health, useful for catching slow-burn stockouts before Inventory Alerts fires.

Calculation

Calculated automatically from your Shopify data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.

Worked example

A UK menswear DTC brand on Shopify, 1,420 active variants. Real-time snapshot 12 May 26. Six things to notice:
  1. The OOS band is the present problem. 28 variants currently OOS. Pair with Inventory Alerts for the action list. The 4 negative-stock variants are the most urgent (oversells deepening).
  2. The Critical Low band is the future problem. 96 variants at 1-5 units. At normal velocity, half of these will OOS within 7 days. This is where reorder POs need to land first; check Stock vs Sales Velocity for predicted-OOS dates.
  3. The shape tells the story. 78% in Healthy or Surplus suggests a healthy operation; <60% in those bands suggests cumulative stockout drift. A brand with 30% in Surplus and 30% in OOS+Critical+Low is poorly balanced (over-orders some SKUs, under-orders others).
  4. Surplus isn’t always bad. New-launch SKUs appropriately start in Surplus. Long-tail clearance items in Surplus are problems (capital tied up, warehouse space). Pair with sell-through-by-SKU to differentiate.
  5. POS visibility is reduced. POS sales drain inventory in real-time but the band shifts only when crossing a threshold. A variant at 6 units (Low) sells one at till and stays at 5 (Critical); the band changed without warning.
  6. The bands are ratios, not absolute counts. A small store with 200 variants and a giant retailer with 200,000 will have the same shape if equally healthy. Don’t compare absolute counts to peers; compare share percentages.

Sibling cards merchants should reference together

Inventory Distribution is the strategic view; the tactical companions:

Reconciling against the vendor’s own dashboard

Where to look in Shopify Admin: Shopify doesn’t expose an inventory-band distribution directly; reconstruct from:
  • Products → Inventory: filter by Available less than, Available equal to, Available greater than. Run for each band’s threshold.
  • Apps like Stocky, Inventory Planner, ShipBob Inventory: typically expose distribution and forecasting; numbers should match within sync-lag tolerance (5-15 min).
  • Reports → Inventory snapshot (Shopify Plus only): closest equivalent.
Why our number may legitimately differ from a manual reconstruction: Cross-connector reconciliation:

Known limitations / merchant FAQs

What’s a healthy distribution shape? Rough heuristics:
  • Healthy + Surplus: 70-80% combined. Below 60% means you’re chronically under-stocked.
  • OOS + Critical: <10% combined. Above 15% means you’re losing sales daily.
  • Surplus: <40% on its own. Surplus above 50% means capital is tied up in slow-movers; consider clearance pricing.
Healthy shape varies by category: fast-fashion churn-heavy stores naturally have higher OOS shares; subscription consumables aim for very tight Healthy bands. Why is my Surplus share so high? Three usual causes:
  1. Over-ordered launch. A new collection ordered conservatively per SKU but with too many SKUs in the range. The Surplus band fills with slow-movers.
  2. End-of-season carry-over. Last season’s stock not yet cleared. Push into clearance pricing.
  3. Forecasting model too generous. PO sizing assumed velocity that didn’t materialise. Tighten next round.
My Critical band is growing every week. What’s happening? Reorder cycle is slower than depletion cycle. Either:
  1. Lead times shifted longer: supplier delays, customs, etc.
  2. Velocity increased: marketing wave drove demand higher than the PO assumed.
  3. PO sizing too small: structural under-order across the board.
Action: tighten the cycle, accept higher safety stock, or move to multi-warehouse for redundancy. Can I customise the bands? Yes, in Nerve Centre → Inventory → Bands. The defaults (0 / 5 / 20 / 100) work for most apparel/lifestyle brands. Categories with very different unit-economics need different thresholds:
  • Furniture / large items: 0 / 1 / 3 / 10. Single units have meaningful operational implications.
  • Fast-moving consumables: 0 / 50 / 200 / 1000. Velocity is per-day, not per-month.
  • B2B with bulk POs: 0 / 100 / 500 / 5000.
Why does the Healthy band shrink on Mondays? Weekend sell-through. Online sales over Sat-Sun deplete the Healthy band into Low/Critical without intra-period reorder. By Monday morning, the Healthy share is at its weekly minimum. The Tue-Wed reorder cycle restores. Acceptable cyclicality. How does this card handle multi-location? Aggregates Available across all active fulfillment locations into one number per variant. A variant with 0 in London and 50 in Manchester is “Healthy” on this card. Per-location distribution is on the roadmap; for now use Shopify Admin → Inventory at this location. My subscription store, do recurring billings affect the bands? Yes. Each subscription billing draws from inventory the same as one-off orders. Subscription-heavy brands often see more predictable band shapes (steady drains) compared to one-off-purchase stores (spikier patterns). Action playbook based on band shape:
  1. OOS + Critical >10%: emergency reorder review; consider expedited shipping on top-velocity at-risk SKUs.
  2. Critical band rising week-over-week: lead-time shifted longer or velocity increased; widen the Healthy floor in your PO model.
  3. Surplus >40% and growing: clearance event needed; capital is sitting idle.
  4. Healthy band <50%: structural under-stocking; widen safety stock company-wide.
  5. OOS band drops to zero: surprising; either you have very high stock levels (capital tied up) or your indexer is missing records. Sanity check.

Tracked live in Vortex IQ Nerve Centre

Inventory Distribution is one of hundreds of KPI pulses Vortex IQ tracks across Shopify and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English. Start for free or book a demo to see this metric running on your own data.