Quantity on hand (or \u201cQoH\u201d) refers to the total number of finished goods inventory<\/a> units that are physically present on your warehouse\u2019s shelves. <\/p>\n\n\n\n The quantity on hand count includes <\/em>all inventory units that have been allocated to customer orders but have not yet been picked from shelves. <\/p>\n\n\n\n Quantity on hand does not <\/em>include inventory units that have already been picked or shipped to fulfil customer orders. <\/p>\n<\/div>\n\n\n\n Quantity on hand plays a vital role in inventory tracking<\/a> as it gives you an accurate understanding of your inventory needs. It provides you with the operational visibility needed to plan your procurement according to your warehouse capacity. <\/p>\n\n\n\n Available quantity refers to all the inventory that is available to be used to fulfil orders. It excludes any inventory that is: <\/p>\n\n\n\n In contrast, quantity on hand is a slightly broader metric, as it does <\/em>include inventory that\u2019s been reserved for outstanding orders. <\/p>\n\n\n\n Together, these two metrics give you an extremely granular understanding of your stock availability,<\/a> and help prevent you from selling inventory you don\u2019t actually have anymore. <\/p>\n\n\n\n Quantity on hand is similar to stock on hand, as they both refer to the total number of products physically in your warehouse. However, stock on hand is a broader term that encompasses your total inventory assets (i.e., every unit of every SKU<\/a> you carry). <\/p>\n\n\n\n Meanwhile, quantity on hand is usually used to track the count of specific inventory items (such as the amount of units you have of one particular SKU). As such, stock on hand lacks the real-time usability of quantity on hand for immediate decision-making. <\/p>\n\n\n\n You might assume that tracking quantity on hand is too granular or unnecessary in the grand scheme of things. But being aware of your quantity on hand at any given time is actually incredibly important, and materially impacts your business in a couple of different ways. <\/p>\n\n\n\n Imagine seeing something that you like on a website, only to find out that it\u2019s out of stock. Chances are that you\u2019ll go somewhere else to find a similar item instead of waiting for it to come back in stock. It might even ruin your whole shopping experience with the original seller. <\/p>\n\n\n\n To avoid these situations, build customer loyalty, and improve customer satisfaction, it\u2019s crucial for ecommerce sellers to meet demand when it comes \u2013 and to so that, they need to maintain sufficient stock levels. <\/p>\n\n\n\n Accurately tracking your on-hand quantity is a crucial step to maintaining stock availability, as it helps you identify when you\u2019re running low on specific items. This way, you can plan timely reorders and replenish your inventory before you actually run out of stock. <\/p>\n\n\n\n In other words, it helps you avoid stockouts and maintain product availability to effectively meet customer demand. Moreover, the ability to reduce backorders and ensure faster deliveries could help to improve customer satisfaction. <\/p>\n\n\n\n Tracking your on-hand inventory doesn\u2019t just help you see how much inventory you need; it also gives you an idea of how much you don\u2019t <\/em>need. When measured alongside factors like warehouse capacity<\/a> and lead times, quantity on hand helps make sure you don\u2019t accidentally order more inventory than your space can physically hold, or than you would need to meet demand. <\/p>\n\n\n\n This helps you optimise cash flow by reducing the amount of capital that\u2019s tied up in unnecessary inventory. Additionally, the less excess inventory you\u2019re stocking, the less storage space you\u2019ll need to pay for, which reduces inventory holding costs<\/a>. These are both crucial steps to better manage your costs and improve your bottom line. <\/p>\n\n\n\n Tracking quantity on hand can be a straightforward process as long as you implement the right tools and best practices. Here are a few steps to tracking your inventory quantity on hand. <\/p>\n\n\n\n Manual inventory tracking methods involve using spreadsheets to record transactions and inventory quantities. This can be a time-consuming process that\u2019s prone to errors, although it may be cost-effective for smaller operations. But to maintain high levels of inventory accuracy<\/a> and speed up the tracking process, automated tracking systems (often built into inventory management software<\/a> solutions) are key.<\/p>\n\n\n\n This includes ecommerce automation tools that automatically record every single transaction and activity to track inventory movement across the warehouse. Warehouse staff make use of barcode scanners to capture inventory data and update your records in the inventory management system. That way, your inventory quantity on hand is automatically updated in real time throughout your warehouse workflow. <\/p>\n\n\n\n If an item is picked from the shelves and moved to fulfilment, it\u2019s no longer accounted for in your total inventory count. This not only saves you time, but also minimises the risk of human error or discrepancies<\/a> with real-time inventory adjustments<\/a>. <\/p>\n\n\n\n In the same vein, warehouse management<\/a> systems play a vital role in accurate and efficient tracking of inventory quantity. Solutions like ShipBob\u2019s WMS<\/a> have the capability to track your inventory movement in real time across multiple fulfilment centres. This helps you to accurately track the number of items you have in stock throughout your entire operation. <\/p>\n\n\n\n With the system serving as a single source of truth, you get the most updated inventory count based on the latest inventory movement at various locations. If a single item gets picked and packed in one warehouse, the WMS automatically updates your quantity on hand count at that warehouse to reflect it, delving seamless visibility and stock control<\/a> across multiple fulfilment centres. <\/p>\n\n\n\n Additionally, the WMS syncs with your ecommerce platform and sales channels, enabling you to use a single pool of inventory to manage demand. The system will account for a reserved quantity of inventory based on new sales, giving you a more realistic understanding of your inventory needs. Inventory quantity is then updated in real time when items are picked for fulfilment. <\/p>\n\n\n\n On its own, quantity on hand may not paint a complete picture of your exact inventory needs. However, with comprehensive inventory analytics to help you understand your inventory performance, you can get an even better understanding of how to plan your procurement. <\/p>\n\n\n\n For instance, ShipBob\u2019s analytics dashboard helps you track real-time inventory performance and combines it with other data, such as order history and demand patterns. This can then be used to figure out how many units you need to reorder and when, allowing you to prevent costly stockouts without the risk of overstocking. <\/p>\n\n\n\n Similarly, accurate demand forecasting helps you make informed decisions on reorder points<\/a> and procurement timelines so you can maintain optimal stock levels at all times. <\/p>\n\n\n\n ShipBob\u2019s powerful inventory management<\/a> tools and leading fulfilment solutions help you streamline inventory tracking, enabling you to strategically optimise your quantity on hand and improve your bottom line. <\/p>\n\n\n\n Here are just some of the ways ecommerce brands use ShipBob\u2019s solutions to master their quantity on hand and inventory management. <\/p>\n\n\n\n ShipBob\u2019s software features built-in inventory management<\/a> capabilities and provides you with real-time inventory visibility across a global network of fulfilment centres. Inventory data is synced in real time based on inventory movement and activities across the supply chain workflow. If an item gets picked for fulfilment in one warehouse, the change in your QoH data is automatically recorded and reflected in your count for that facility. <\/p>\n\n\n\n ShipBob also allows you to fulfil orders from the most appropriate fulfilment centre based on proximity and stock availability. In addition to automatically forwarding orders to the fulfilment centre closest to the end customer to minimise shipping costs and times, ShipBob can also route orders to a different facility if one of your fulfilment centres is out of stock for an item. This way, all orders get fulfilled in a timely manner, regardless of stockouts. <\/p>\n\n\n\n ShipBob\u2019s Inventory Placement Program<\/a> allows sellers in the United States to strategically distribute their inventory between various fulfilment centres. Using your brand\u2019s actual order data and history, ShipBob\u2019s proprietary algorithm recommends an optimal distribution strategy across ShipBob\u2019s network of dozens of fulfilment centres worldwide. <\/p>\n\n\n\n This program helps you stock more on-hand inventory at locations that see high customer demand, helping you maintain optimal inventory quantities across each fulfilment centre without spending hours or days to do it. <\/p>\n\n\n\n ShipBob will even handle physically distributing your inventory for you. Simply send all your inbound inventory to one hub location, and ShipBob\u2019s team will take care of the rest. <\/p>\n\n\n\n \u201cIPP has been a game changer for us. First, it reduces costs for us, because we’re shipping more orders a much shorter distance. Second, and maybe equally as important, it’s reducing the time that customers have to wait to get packages. <\/em><\/p>\n\n\n\n The other great thing about IPP is that it makes inventory allocation so much easier. Trying to figure out how much of what inventory to send where could be wildly complex for our supply chain managers \u2013 but since ShipBob automatically tracks our order and shipping data for us, that data basically tells us our optimal inventory distribution. <\/em><\/p>\n\n\n\n We also get automatic reminders notifying us well before inventory levels are getting depleted, so we don\u2019t have to constantly be checking our stock levels. IPP has saved our supply chain team a lot of extra work, and they also feel really supported by ShipBob and know that they can turn to them for help.\u201d<\/em><\/p>\n\n\n\n Tyler McCann, Co-Founder of Taste Salud<\/p>\n<\/blockquote>\n\n\n\n![\"\"](\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/04\/d32514a4b1f0bb16e8bc69fad39e02ba.png?w=1280\")
<\/figure>\n\n\n\nQuantity on hand vs. available quantity <\/h3>\n\n\n\n
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Quantity on hand vs. stock on hand <\/h3>\n\n\n\n
Why tracking quantity on hand is crucial for ecommerce businesses <\/h2>\n\n\n\n
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<\/figure>\n\n\n\nImpacts on customer satisfaction <\/h3>\n\n\n\n
![\"\"](\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/04\/dd7c16ea4b2a56d75c47fabe164f52c7.png?w=1280\")
<\/figure>\n\n\n\nRole in cost management <\/h3>\n\n\n\n
How to track quantity on hand <\/h2>\n\n\n\n
Manual vs. automated tracking methods <\/h2><\/div>
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<\/figure>\n<\/div><\/section>\n\n\n\nLeverage warehouse management software technology <\/h2><\/div>
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<\/figure>\n<\/div><\/section>\n\n\n\nPrioritize analytics for improved accuracy <\/h2><\/div>
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<\/figure>\n<\/div><\/section>\n\n\n\nHow ShipBob helps ecommerce businesses optimise quantity on hand <\/h2>\n\n\n\n
Real-time visibility across fulfilment centres <\/h3>\n\n\n\n
![\"\"](\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2025\/04\/7c2fd3b8afdd68a036d73213619e4615-e1745013450265.png?w=1080\")
<\/figure>\n\n\n\nInventory Placement Program for strategic inventory distribution <\/h3>\n\n\n\n
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Optimise quantity on hand with ShipBob\u2019s proprietary WMS <\/h3>\n\n\n\n
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