Shopify permanently deducts inventory from your On hand quantity when an order is fulfilled. However, Shopify makes the product unavailable for additional sales as soon as the order is placed by moving the quantity from Available inventory to Committed inventory.
Understanding this two-stage process can help you prevent overselling, troubleshoot inventory discrepancies, and manage cancellations correctly.
How Shopify Deducts Inventory
When a customer places an order, Shopify changes the inventory status in two steps:
- The order is placed: Inventory moves from Available to Committed.
- The order is fulfilled: Inventory is removed from the On hand quantity.
For example, suppose you have 10 units of a product:
| Event | Available | Committed | On hand |
|---|---|---|---|
| Before the order | 10 | 0 | 10 |
| Customer orders 2 units | 8 | 2 | 10 |
| The 2 units are fulfilled | 8 | 0 | 8 |
Although the Available quantity falls immediately when the order is placed, the On hand quantity does not decrease until fulfillment.
What Does “Committed Inventory” Mean in Shopify?
Committed inventory refers to products assigned to placed orders that have not yet been fulfilled. These units remain physically on hand, but Shopify removes them from the quantity available for sale.
In simple terms:
- Available: Inventory that can still be sold
- Committed: Inventory assigned to unfulfilled orders
- On hand: All inventory physically recorded at the location
- Unavailable: Inventory reserved or otherwise not available for sale
- Incoming: Inventory expected from a transfer or another source
Shopify calculates On hand inventory using the Available, Committed, and Unavailable quantities.
Does Shopify Deduct Inventory When an Order Is Paid?
Payment capture does not normally determine when Shopify deducts inventory.
An order with a pending or manually captured payment can still have inventory committed to it. The important events are the order being placed and subsequently fulfilled—not simply whether payment has been captured.
This distinction is especially relevant for stores that use:
- Manual payment capture
- Cash on delivery
- Deferred payment terms
- Bank transfers
- Other pending payment methods
What Happens When a Shopify Order Is Canceled?
If you cancel an unfulfilled order and select Restock inventory, Shopify returns the committed units to Available inventory. Shopify selects this option by default during the standard cancellation process.
If inventory is not restocked during cancellation, the units might remain excluded from the available quantity. Always review the order timeline and inventory adjustment history if the stock level does not look correct.
For an order that has already been fulfilled, use Shopify’s return process if the products are physically returned. A refund by itself does not necessarily mean that the inventory should be restocked.
What About Draft Orders?
Products added to a draft order can be reserved and made unavailable to other customers. However, they do not count as Committed inventory until the draft order is converted into a regular order.
This makes it important to distinguish between:
- Inventory reserved for a draft order
- Inventory committed to a placed order
- Inventory permanently deducted through fulfillment
Frequently Asked Questions
When does Shopify reduce available inventory?
Shopify reduces Available inventory when an order is placed. The ordered units move into the Committed state.
When does Shopify reduce on-hand inventory?
Shopify reduces On hand inventory when the order or applicable line items are fulfilled.
Does fulfilling an order deduct inventory twice?
No. Placing the order reduces Available inventory, while fulfillment removes the quantity from Committed and On hand inventory. These are different stages of the same inventory movement.
Does canceling an order restore inventory?
It does when the order is canceled with Restock inventory selected. Check this setting during cancellation to ensure the units return to Available inventory.
Does refunding an order automatically restock it?
Not necessarily. Refunding concerns the customer’s payment, while restocking concerns inventory. Review the refund or return options and explicitly restock the items when appropriate.
The Bottom Line
Shopify prevents an item from being sold again when the order is placed by moving it from Available to Committed inventory. The inventory is permanently deducted from the store’s On hand quantity when the order is fulfilled.
Monitoring these inventory states—and correctly handling cancellations, returns, and restocking—helps keep Shopify stock levels accurate and reduces the risk of overselling.
For additional details, see Shopify’s official guide to understanding inventory states.