Inventory Report Example: How to Track and Manage Stock Effectively

If you sell physical products, inventory is one of your biggest investments. But without clear visibility into stock levels, you risk losing sales, tying up cash, or both. That’s where inventory reports come in.

An inventory report provides a snapshot of what you have on hand, what needs replenishment, and the overall value of your stock. It’s the foundation for smarter inventory management decisions.

In this guide, we’ll explore what inventory reports are, the most common types, and walk through a real-world example you can adapt for your ecommerce store.

This post is from our Inventory Management Fundamentals series, designed to help you optimise and enhance your ecommerce store.

What is an Inventory Report?

An inventory report is a document that shows the current state of your stock. It usually includes details such as product SKUs, quantities on hand, reorder points, and the value of your inventory.

For ecommerce merchants, inventory reports help answer critical questions like:

• What products are running low?

• How much stock is sitting unsold?

• What is the total value of inventory at cost?

• Which items should be replenished first?

Types of Inventory Reports

Different types of reports serve different purposes. The most common include:

1. Stock on Hand Report
   Shows the current quantity of each item in inventory.

2. Low Stock Report
   Flags SKUs that are approaching reorder points.

3. Aged Inventory Report
   Identifies slow-moving or obsolete stock.

4. Inventory Valuation Report
   Calculates the financial value of stock on hand.

5. Sales & Turnover Report
   Tracks how quickly products are selling and being replenished.

Together, these reports give you a full picture of your inventory health.

Key Elements of an Inventory Report

While formats vary, most reports include the following elements:

• SKU / Product name – unique identifier for each product.

• Category – product grouping for easier analysis.

• Quantity on hand – how many units are currently in stock.

• Reorder point – the stock level that triggers replenishment.

• Supplier / Lead time – who provides the product and how long it takes to arrive.

• Inventory value – cost × quantity on hand.

• Status indicator – stock health (e.g., in stock, low, reorder now).

Inventory Report Example (Table Format)

Here’s a simplified example of what an ecommerce inventory report might look like:

This report helps merchants quickly identify:

• Which products need immediate reordering.

• Which SKUs are healthy.

• The total stock value tied up in inventory.

How Ecommerce Merchants Use Reports

Inventory reports are more than just static documents. Merchants use them to:

• Trigger replenishment → Reorder products before they run out.

• Spot slow movers → Identify products that may need discounts or promotions.

• Plan cash flow → Understand how much capital is tied up in stock.

• Align teams → Give finance, operations, and marketing visibility on product availability.

Tools & Technology for Inventory Reports

There are many ways to generate inventory reports:

• Spreadsheets – Simple, flexible, but prone to errors as businesses scale.

• Shopify Reports – Built-in reporting for stock levels, but limited in depth.

• Inventory Management Software – Dedicated tools for multi-channel businesses.

• AI-powered systems – Like Verve AI, which not only creates reports but also:

  • Forecasts future demand.

  • Suggests replenishment quantities.

  • Automates reporting and reduces manual work.

Best Practices for Inventory Reports

To get the most value from your reports:

• Automate data collection → Connect Shopify, Amazon, or POS systems.

• Review regularly → Weekly for fast-moving SKUs, monthly for slower ones.

• Integrate with forecasting → Use reports to drive proactive decisions, not just reactive ones.

• Customize for your business → Add fields like supplier reliability, margin per SKU, or sales velocity.

• Share insights across teams → Marketing needs to know what’s in stock before launching campaigns.

Conclusion

An inventory report provides more than just numbers—it gives you visibility, control, and the power to make better decisions.

The example above shows the core elements every ecommerce merchant should track. By combining inventory reports with forecasting and demand planning, you can reduce stockouts, avoid tying up cash in excess stock, and scale more efficiently.

📌 Next Steps:

• Explore our guide to Forecasting vs Demand Planning.

• Learn how to set up Replenishment of Stock.

• See how Verve AI automates reporting and replenishment for Shopify merchants.