What multi-location inventory does
In Shopify, a location is anywhere you stock or fulfil from: a warehouse, a retail shop, a pop-up, a third-party logistics (3PL) partner or even a dropshipping supplier. Inventory is tracked per location, and orders are assigned to locations to be fulfilled. Limits on the number of locations and some features depend on your plan, so check Shopify's current documentation.
Step 1: plan before you click anything
- List each place you hold stock and who fulfils from it.
- Decide which locations can fulfil online orders, and which are for retail or storage only.
- Decide how orders should be routed: closest location, a priority order, or by rules.
- Work out which locations can ship where, since that affects delivery promises.
- Decide how inventory data will be kept accurate, whether through manual counts, a POS, a 3PL or an inventory system.
Step 2: add and configure locations
- In the Shopify admin, open Settings, then Locations, and add each location with its full address.
- Choose whether the location fulfils online orders. Locations that do not fulfil online orders will not receive them.
- Enable local pickup or local delivery at the locations that offer it.
- Confirm the address is correct. It is used for shipping rates, taxes and routing.
Step 3: load and track stock per location
- Turn on inventory tracking for each product or variant.
- Set the available quantity at every location where the item is stocked, and be clear about the difference between available, committed and incoming stock.
- Count stock before you import it. Starting with wrong numbers makes every later problem harder to diagnose.
- Keep SKUs consistent across locations so reporting and integrations match.
Step 4: set up order routing
When an order is placed, Shopify decides where to fulfil it based on stock availability, location priority and shipping rules. Review the order routing settings in the Shipping and delivery area of the admin and set rules that match your operation, such as prioritising the location nearest the customer or the cheapest to ship from.
- Check how orders split when no single location has everything. Split shipments cost more and can confuse customers.
- Test routing with real examples, including orders for items in different locations.
- Review the setup whenever you add a location or change stock strategy.
Step 5: align shipping and delivery
- Create delivery profiles so rates and zones reflect where each location ships from.
- Make delivery estimates on the product page and checkout realistic, based on the location that will fulfil the order.
- Show pickup availability by location where you offer it.
Step 6: transfers, POS and integrations
- Use inventory transfers to move stock between locations, and receive them so counts stay right.
- If you sell in person, connect your POS locations so in-store sales update inventory in real time. See our POS UI extensions.
- Connect 3PL, ERP or warehouse systems so stock stays in sync, and decide which system is the single source of truth.
- Set low-stock alerts per location.
Common mistakes
- Leaving a closed or storage-only location able to fulfil online orders.
- Not testing routing before launch.
- Letting two systems both adjust inventory, which causes drift.
- Forgetting that showing "in stock" on the storefront depends on stock at the locations that can fulfil online orders.
- Ignoring how out-of-stock items affect SEO and customers. See out-of-stock product SEO.
If you need integrations built around your setup, see our custom app development and admin app development services.
Frequently asked questions
- How do I set up multiple locations in Shopify?
- Add each location in Settings, then Locations, choose whether it fulfils online orders, set stock per location, and configure order routing and delivery profiles.
- How does Shopify decide which location fulfils an order?
- It uses stock availability, location priority and your routing and shipping settings. Review and test these, because the defaults may not match your operation.
- Can I transfer stock between locations in Shopify?
- Yes. Use inventory transfers to move stock between locations and receive it, so counts at each location stay accurate.