{"id":20222,"date":"2025-05-19T10:00:00","date_gmt":"2025-05-19T10:00:00","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/inventory-counting\/"},"modified":"2026-01-15T20:39:59","modified_gmt":"2026-01-15T20:39:59","slug":"inventory-counting","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/inventory-counting\/","title":{"rendered":"Your Complete Guide to Inventory Counting: Methods, Best Practices, and Tools for Success"},"content":{"rendered":"\n<p>You have inventory \u2013 but do you know <em>precisely<\/em> how much you have?&nbsp;<\/p>\n\n\n\n<p>It can be tempting for ecommerce brands to think that, as long as you have enough units to meet demand, the exact count doesn\u2019t matter. But accurate inventory counts are incredibly important, as they influence decision-making, sales, accounting, replenishment, and other key aspects of your ecommerce operations.&nbsp;<\/p>\n\n\n\n<p>In this article, we\u2019ll dive deep into what inventory counting is, review some counting methods you can use, and explore best practices that will improve the inventory counting process.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-inventory-counting-nbsp\">What is inventory counting?&nbsp;<\/h2>\n\n\n\n<div class=\"wp-block-shipbob-blocks-blog-arrow-card blog-arrow-card\">\n<p>Inventory counting is the process of physically counting and tallying up the number of product units you have in stock at a given time.&nbsp;&nbsp;<\/p>\n<\/div>\n\n\n\n<p>Inventory counting is almost always a structured process, beginning with grouping inventory, counting each individual unit of every SKU, and recording the numbers (either manually on paper and pencil or scanning product barcodes to update records in a cloud-based inventory management system).&nbsp;&nbsp;<\/p>\n\n\n\n<p>This process helps you verify whether your inventory records match your actual physical stock and identify any discrepancies in the data.&nbsp;<\/p>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h3\">Why is inventory counting important?&nbsp;<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>Inventory counting may seem like a trivial or menial task, but it is absolutely worthwhile. This is because inventory counting helps you:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Detect discrepancies in your inventory records \u2013<\/strong> Inventory counting is a key step in the <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-reconciliation\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory reconciliation<\/a> process, as it reveals any differences between your current inventory data and your actual physical inventory. This helps you maintain accurate <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-records\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory records<\/a>, which in turn facilitate better decision-making on your part.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Replenish stock levels correctly \u2013<\/strong> When you know exactly how much inventory have on hand, you can reorder just the right amount of stock to meet customer demand without over- or understocking. You will also have a better idea of when you\u2019ll need to replenish, which helps you avoid costly stockouts.&nbsp;&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Avoid overselling \u2013<\/strong> If you think you have more inventory than you actually do, you run the risk of selling stock you don\u2019t have, creating backorders, <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-backlog\/\" target=\"_blank\" rel=\"noreferrer noopener\">backlogs<\/a>,&nbsp; cancellations, and disgruntled customers. Counting inventory regularly gives you accurate data to work with, so you know when to when to flag items as out of stock.&nbsp;&nbsp;<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h3\">When should you run an inventory count?&nbsp;<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>Inventory counting schedules vary for every business. Depending on the size of your operations and the types of products you sell, you may need to count your inventory monthly, quarterly, bi-annually, or even annually. Ideally, you\u2019ll want to time your inventory counting with your <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory accounting<\/a> schedule.&nbsp;<\/p>\n\n\n\n<p>Additionally, you may need to arrange a counting to coincide with major events (such as an <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-write-off\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory write-off<\/a>). Companies will also want to consider a thorough inventory counting if they regularly experience issues with inventory discrepancies, stockouts, shrinkages, and excess inventory.&nbsp;<\/p>\n<\/div><\/section>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-types-of-inventory-counting-methods-nbsp\">4 types of inventory counting methods&nbsp;<\/h2>\n\n\n\n<p>While you might think of inventory counting as a straightforward process, but there are several different approaches to it \u2013 and which approach is best for your business depends on your brand\u2019s resources, time availability, and tools.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Here are some of the most common types of inventory counting methods to consider for your brand.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-full-periodic-inventory-count-nbsp\">1. Full periodic inventory count&nbsp;<\/h3>\n\n\n\n<p>A full periodic inventory count is a <a href=\"https:\/\/www.shipbob.com\/blog\/periodic-inventory-system\/\" target=\"_blank\" rel=\"noreferrer noopener\">periodic inventory<\/a> counting method where you count entire <a href=\"https:\/\/www.shipbob.com\/blog\/physical-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">physical inventory<\/a> in one sitting, so you can get a comprehensive and accurate overview of your inventory stock.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Since a full inventory count is a time-consuming process, it\u2019s typically performed annually or bi-annually to avoid disrupting business operations. Even then, this type of physical inventory counting process is highly labour intensive, often requiring companies to dedicate most of their workforce for it. Some may even need to bring in temporary staff to help with the count.&nbsp;<\/p>\n\n\n\n<p>For small businesses in particular, this can put a strain on their operations. Seasonal businesses may also be at a disadvantage, as they\u2019ll need to strategically time their counts to be during slower months, which may not always coincide with their inventory replenishment schedules.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2024\/01\/2b992741901241af575f6ff8a66a88a3.png?w=1280\" alt=\"\" class=\"wp-image-25098\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-cycle-count-nbsp\">2. Cycle count&nbsp;<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/inventory-cycle-count\/\" target=\"_blank\" rel=\"noreferrer noopener\">Inventory cycle counting<\/a> is a popular alternative to a full inventory count, as it involves counting small batches of inventory on a regular basis. Inventory is divided into groups based on location (i.e., one warehouse aisle) or type (i.e., all clothing SKUs), and counts are performed regularly (usually daily or weekly) for a specific group at a time.&nbsp;<\/p>\n\n\n\n<p>This allows for a more efficient inventory counting process, as businesses don\u2019t need to shut down their entire operation during the count. Moreover, it allows them to nip issues and discrepancies in the bud, since the counts are performed regularly instead of at the end of an entire fiscal year.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/08\/c2ce1056092a881e6d5b075ed863fcc9.png?w=580\" alt=\"\" class=\"wp-image-14618\" style=\"width:800px;height:auto\"\/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-perpetual-count-nbsp\">3. Perpetual count&nbsp;<\/h3>\n\n\n\n<p>While some brands prefer full counts and cycle counts that take place once in a while, other brands want to keep an ongoing, continuous tally of inventory that\u2019s constantly updated.&nbsp;&nbsp;<\/p>\n\n\n\n<p>A <a href=\"https:\/\/www.shipbob.com\/blog\/perpetual-inventory-system\/\" target=\"_blank\" rel=\"noreferrer noopener\">perpetual inventory system<\/a> involves continuously updating your inventory count according to the latest transactions, so your inventory data is automatically updated whenever a sale or purchase happens. In other words, your inventory count is performed in real-time as items are added through receiving or subtracted through sales and order fulfilment.&nbsp;<\/p>\n\n\n\n<p>This is one of the most efficient and accurate inventory counting methods. However, it requires sophisticated technology and significant investment in tools like RFID tags, barcode scanners, and mobile devices. These tools need to work seamlessly to ensure that perpetual inventory counting functions as intended.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" height=\"467\" width=\"700\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/3849b36a5e8998204b022f989b852b7a.jpg?w=1280\" alt=\"\" class=\"wp-image-17300\" style=\"width:800px;height:auto\" srcset=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/3849b36a5e8998204b022f989b852b7a.jpg?w=2560 2560w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/3849b36a5e8998204b022f989b852b7a.jpg?w=400 400w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/3849b36a5e8998204b022f989b852b7a.jpg?w=700 700w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/3849b36a5e8998204b022f989b852b7a.jpg?w=768 768w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/3849b36a5e8998204b022f989b852b7a.jpg?w=1536 1536w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/3849b36a5e8998204b022f989b852b7a.jpg?w=2048 2048w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/3849b36a5e8998204b022f989b852b7a.jpg?w=1280 1280w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/3849b36a5e8998204b022f989b852b7a.jpg?w=240 240w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-abc-inventory-counting-nbsp\">4. ABC inventory counting&nbsp;<\/h3>\n\n\n\n<p>ABC counting is a cycle counting process used alongside the ABC <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-segmentation\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory segmentation<\/a> method. Inventory items are divided into A, B, and C categories based on value or sales frequency. Category A items have the highest value or turnover and are counted most frequently. Meanwhile, category C items consist of items with the lowest value or turnover and are counted least frequently.&nbsp;<\/p>\n\n\n\n<p>This process allows businesses to focus their inventory counts on high-value products or SKU items that are most susceptible to change due to high turnover.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"467\" width=\"700\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2023\/11\/0ce4b28bda221c285ce06e28d9e11843.jpeg?w=1280\" alt=\"\" class=\"wp-image-10213\" srcset=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2023\/11\/0ce4b28bda221c285ce06e28d9e11843.jpeg?w=2250 2250w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2023\/11\/0ce4b28bda221c285ce06e28d9e11843.jpeg?w=400 400w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2023\/11\/0ce4b28bda221c285ce06e28d9e11843.jpeg?w=700 700w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2023\/11\/0ce4b28bda221c285ce06e28d9e11843.jpeg?w=768 768w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2023\/11\/0ce4b28bda221c285ce06e28d9e11843.jpeg?w=1536 1536w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2023\/11\/0ce4b28bda221c285ce06e28d9e11843.jpeg?w=2048 2048w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2023\/11\/0ce4b28bda221c285ce06e28d9e11843.jpeg?w=1280 1280w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2023\/11\/0ce4b28bda221c285ce06e28d9e11843.jpeg?w=240 240w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-best-practices-for-efficient-inventory-counting-nbsp\">Best practices for efficient inventory counting&nbsp;<\/h2>\n\n\n\n<p>Because accurate inventory counts are so critical to your ecommerce brand\u2019s success, it\u2019s important to take the time to optimise your counting process (whatever it looks like). Here are a couple of best practices to implement the next time you count your inventory.&nbsp;&nbsp;<\/p>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h3\">Organise your inventory space&nbsp;<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>Having a structured storage system that organises your inventory makes it easier to count units correctly. Your <a href=\"https:\/\/www.shipbob.com\/blog\/warehouse-setup\/\" target=\"_blank\" rel=\"noreferrer noopener\">warehouse setup<\/a> should:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Group each SKU together and store each group in its own distinct location, which makes it easier to count all the units of a single SKU quickly and effectively.&nbsp;&nbsp;<\/li>\n\n\n\n<li>Be organised in a way that allows count teams to move quickly from one inventory group to another.&nbsp;<\/li>\n\n\n\n<li>Remove any clutter or trash and put away inventory in their designated areas.&nbsp;<\/li>\n\n\n\n<li>Arrange inventory items neatly (rather than haphazardly piled on top of each other or shoved together in tight spaces) to prevent counters from accidentally missing units in their count.&nbsp;<\/li>\n\n\n\n<li>Place barcodes and labels on the product so that they\u2019re accessible and prominent.&nbsp;<\/li>\n\n\n\n<li>Leverage <a href=\"https:\/\/www.shipbob.com\/warehouse-operations\/inventory-storage\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory storage<\/a> solutions that allow you to strategically store items for easy counting and retrieval.&nbsp;<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h3\">Leverage inventory and warehouse management technology&nbsp;<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>Inventory counting can be a very efficient process, especially if you ditch manual data entry. Manually recording your inventory data (for instance, with paper and a pencil) can be time-consuming and prone to errors; instead, consider implementing <a href=\"https:\/\/www.shipbob.com\/inventory-management\/software\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory management software<\/a> and <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">warehouse management<\/a> systems to speed up and streamline the process.&nbsp;<\/p>\n\n\n\n<p>These systems allow you to automatically record and track your inventory movement, which will update your inventory count in real time, so every transaction that adds or subtracts inventory will be accounted for. This allows you to efficiently update your inventory count in real time.&nbsp;<\/p>\n\n\n\n<p>Warehouse management systems like ShipBob\u2019s WMS run multiple checks and balances throughout the fulfilment process, ensuring a high level of inventory accuracy. It unifies all your inventory information across multiple touchpoints and supply chain functions, serving as a single source of truth on inventory counts. This reduces the risk of miscounts and ensures that you have the most accurate information on your stock levels.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cA lot of our products are similar to each other, which could make picking tricky \u2013 but ShipBob\u2019s system has built-in checks and balances that make sure that the right new products are getting out to the right customers. This not only minimises errors and potential complaints, but also results a better customer experience that encourages them to repurchase from us.\u201d<\/em><\/p>\n\n\n\n<p>Connor Westby, Co-Founder of NutriPaw&nbsp;<\/p>\n<\/blockquote>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h3\">Use barcodes and RFID tags&nbsp;<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>You should also consider using inventory management tools like barcodes and RFID tags to streamline the counting process. These tools allow you to use scanners and sensors to automatically capture inventory data and track movement across the warehouse.&nbsp;<\/p>\n\n\n\n<p>Barcode scanning simplifies the inventory counting process because it allows count teams to scan items to count them, and automatically update your inventory records in doing so. This reduces the risk of human error and enhances <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-accuracy\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory accuracy<\/a>. In many cases, it even automates some aspects of inventory counting as automatic sensors perpetually capture and update your inventory data throughout the warehouse.&nbsp;&nbsp;&nbsp;<\/p>\n<\/div><\/section>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-common-inventory-counting-challenges-and-how-to-overcome-them-nbsp\">Common inventory counting challenges (and how to overcome them)&nbsp;<\/h2>\n\n\n\n<p>Counting inventory might sound like a simple task, but it can be surprisingly tricky. Businesses may face several challenges that can create problems in the inventory counting process. Some of the most common issues brands face when inventory counting include:&nbsp;<\/p>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h3\">Human error and miscounts&nbsp;<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>When businesses predominantly rely on manual processes and tools to perform inventory counts, the entire endeavor is highly susceptible to human error. Counting teams could easily miscount items or accidentally input incorrect numbers during data entry. This could lead to inaccurate inventory counts, which create issues further down in the supply chain.&nbsp;<\/p>\n\n\n\n<p>This also puts brands at a higher risk of unexpected stockouts or even excess inventory. In some cases, it may lead to errors in their financial records, requiring significant work to reconcile.&nbsp;<\/p>\n\n\n\n<p>As such, it pays off to invest in tools that automate the counting process and facilitate real-time <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-tracking\/\">inventory tracking<\/a>, such as barcode scanners. That way, inventory levels are continuously updated whenever a new transaction takes place, ensuring a higher level of accuracy.&nbsp;&nbsp;<\/p>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h3\">Seasonal surges and stock management&nbsp;<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>When businesses receive, store, and ship out a lot of inventory in a short span of time, it\u2019s easy for inventory to get disorganized, lost, or otherwise miscounted in the shuffle. This is especially true for seasonal products, and makes it challenging \u2013 but all the more important \u2013 for seasonal businesses to count their inventory and <a href=\"https:\/\/www.shipbob.com\/blog\/sku-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">manage their SKUs<\/a> correctly.&nbsp;<\/p>\n\n\n\n<p>If you sell seasonal items and expect a surge in demand at a particular time, make sure to prepare beforehand so that inventory will be stored, organised, preserved, and counted properly, despite the flurry of activity.&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2021\/08\/peak-shipping-season.jpg?w=1280\" alt=\"\" class=\"wp-image-9159\"\/><\/figure>\n<\/div><\/section>\n\n\n\n<section class=\"wp-block-shipbob-blocks-single-heading-accordion single-heading-accordion container max-width-blog\" data-controller=\"accordion-controller\" data-accordion-controller-open-value=\"false\"><div class=\"single-heading-accordion-heading-container\" data-accordion-controller-target=\"actionElement\"><h2 class=\"single-heading-accordion-title h3\">Resource and staff limitations&nbsp;<\/h2><\/div><div class=\"single-heading-accordion-inner-content\" data-accordion-controller-target=\"innerContent\">\n<p>Most inventory counting procedures require huge amounts of labour. Some businesses dedicate a team to perform inventory counts, while others may even need to allocate their entire staff to count their inventory. Staff limitations can significantly set back the process, especially for smaller businesses since they tend to have a smaller workforce. This can create inefficiencies and major operational disruptions.&nbsp;<\/p>\n\n\n\n<p>Some may even take on temporary staff to help with inventory counts, although this often requires significant investment in training and onboarding (and therefore is not always an option for businesses on a limited budget).&nbsp;<\/p>\n\n\n\n<p>While you\u2019ll need some headcount to perform a count, it is also possible to greatly streamline the process by leveraging automation. Try investing in automated software and processes to support staff, or implement automated alerts and real-time inventory tracking systems to simplify inventory management and save time. &nbsp;<\/p>\n\n\n\n<p>Even smaller operations will be able to rely on these solutions for efficient and accurate inventory tracking without the need to amass a huge additional workforce.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"467\" width=\"700\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2023\/12\/7a7df9112c3e67a12145b4eb3e5d3481-scaled.jpg?w=1280\" alt=\"\" class=\"wp-image-10818\"\/><\/figure>\n<\/div><\/section>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-lose-the-inventory-management-headache-with-shipbob-nbsp\">Lose the inventory management headache with ShipBob&nbsp;<\/h2>\n\n\n\n<p>With real-time inventory tracking and powerful inventory management tools, ShipBob enhances counting efficiency and accuracy.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-track-your-inventory-in-real-time-with-shipbob-s-wms-nbsp\">Track your inventory in real time with ShipBob\u2019s WMS&nbsp;<\/h3>\n\n\n\n<p>ShipBob\u2019s <a href=\"https:\/\/www.shipbob.com\/product\/wms\/\" target=\"_blank\" rel=\"noreferrer noopener\">WMS<\/a> is an all-in-one platform that integrates your order and inventory data from across the supply chain while powering your warehouse operations. It includes multiple checks and balances and <a href=\"https:\/\/www.shipbob.com\/inventory-management\/real-time\/\" target=\"_blank\" rel=\"noreferrer noopener\">real-time <\/a>tracking as inventory moves through the warehouse, ensuring that you have the most updated inventory data at all times.&nbsp;<\/p>\n\n\n\n<p>With built-in perpetual inventory counts that update stock levels automatically when inventory is sold, received, fulfilled, shipped, and returned, your brand can achieve unparalleled accuracy and efficiency in the inventory counting process.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-simplify-inventory-counts-with-automated-solutions-nbsp\">Simplify inventory counts with automated solutions&nbsp;<\/h3>\n\n\n\n<p>ShipBob\u2019s technology works seamlessly with an <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-scanner\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory scanner<\/a> system so that your inventory data is automatically captured and updated in your records. Your warehouse staff can scan incoming and outgoing inventory, which will automatically be recorded by the system.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-maximize-inventory-accuracy-with-customizable-cycle-counts-nbsp\">Maximise inventory accuracy with customisable cycle counts&nbsp;<\/h3>\n\n\n\n<p>The ShipBob WMS supports intelligent cycle counts, with the flexibility to choose a method that works best for your business. You can customise your cycle counts to focus on high-priority inventory categories, and focus on items that are most likely to experience fluctuations in quantity or are most likely to affect your operations. That way, you can ensure a greater level of accuracy for high-value items or products that sell quickly.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-reduce-costs-with-intelligent-inventory-distribution-nbsp\">Reduce costs with intelligent inventory distribution&nbsp;<\/h3>\n\n\n\n<p>ShipBob\u2019s <a href=\"https:\/\/www.shipbob.com\/product\/inventory-placement\/\" target=\"_blank\" rel=\"noreferrer noopener\">Inventory Placement Program<\/a> enables merchants to strategically <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-optimization\/\" target=\"_blank\" rel=\"noreferrer noopener\">optimise their inventory<\/a> distribution for speed and cost-efficiency. The program lets you send your entire inventory to one hub location, where our proprietary algorithm determines the optimal inventory distribution strategy (based on your business\u2019s actual order data).&nbsp;<\/p>\n\n\n\n<p>Inventory is then distributed between different fulfilment centres based on factors like demand and historical sales performance. That way, orders are shipped out from the most ideal fulfilment centre to reduce cost and improve delivery speeds. This allows you to lower your fulfilment costs as a whole while ensuring optimal stock levels across key locations.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe great thing about ShipBob\u2019s Inventory Placement Program (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<p><em>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<p>Tyler McCann, Co-Founder of Taste Salud &nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p>ShipBob\u2019s dashboard also delivers real-time inventory counts at all ShipBob fulfilment centres where you store inventory, so you always have visibility into stock levels (without having to be everywhere at once).&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-prevent-stockouts-and-overstock-with-data-driven-forecasting-nbsp\">Prevent stockouts and overstock with data-driven forecasting&nbsp;<\/h3>\n\n\n\n<p>Part of efficient inventory counting is maintaining optimal stock levels. With ShipBob\u2019s <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-analytics\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory analytics<\/a> software, you can get comprehensive insights into your inventory performance, <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/\" target=\"_blank\" rel=\"noreferrer noopener\">KPIs<\/a>, and historical sales data. These insights can then be used for accurate <a href=\"https:\/\/www.shipbob.com\/blog\/demand-forecasting\/\" target=\"_blank\" rel=\"noreferrer noopener\">demand forecasting<\/a> to inform your replenishment strategy.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"324\" width=\"700\" data-id=\"17409\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/12\/933bcad60877f0ca97bcc0826cbbe1db.png?w=1280\" alt=\"Inventory Velocity\" class=\"wp-image-17409\" srcset=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/12\/933bcad60877f0ca97bcc0826cbbe1db.png?w=1292 1292w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/12\/933bcad60877f0ca97bcc0826cbbe1db.png?w=160 160w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/12\/933bcad60877f0ca97bcc0826cbbe1db.png?w=400 400w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/12\/933bcad60877f0ca97bcc0826cbbe1db.png?w=768 768w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/12\/933bcad60877f0ca97bcc0826cbbe1db.png?w=700 700w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/12\/933bcad60877f0ca97bcc0826cbbe1db.png?w=1280 1280w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/12\/933bcad60877f0ca97bcc0826cbbe1db.png?w=240 240w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n<\/figure>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-2 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"700\" width=\"700\" data-id=\"20113\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/05\/eadf59cd0587a5eebb480276edad6a70.png?w=1080\" alt=\"\" class=\"wp-image-20113\" srcset=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/05\/eadf59cd0587a5eebb480276edad6a70.png?w=1080 1080w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/05\/eadf59cd0587a5eebb480276edad6a70.png?w=160 160w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/05\/eadf59cd0587a5eebb480276edad6a70.png?w=400 400w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/05\/eadf59cd0587a5eebb480276edad6a70.png?w=768 768w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/05\/eadf59cd0587a5eebb480276edad6a70.png?w=700 700w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2025\/05\/eadf59cd0587a5eebb480276edad6a70.png?w=240 240w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" height=\"438\" width=\"700\" data-id=\"16057\" src=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/7dc5d99b1b09518852785b9733c7605f.png?w=1038\" alt=\"\" class=\"wp-image-16057\" srcset=\"https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/7dc5d99b1b09518852785b9733c7605f.png?w=1038 1038w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/7dc5d99b1b09518852785b9733c7605f.png?w=160 160w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/7dc5d99b1b09518852785b9733c7605f.png?w=400 400w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/7dc5d99b1b09518852785b9733c7605f.png?w=768 768w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/7dc5d99b1b09518852785b9733c7605f.png?w=700 700w, https:\/\/www.shipbob.com\/au\/wp-content\/uploads\/sites\/33\/2024\/11\/7dc5d99b1b09518852785b9733c7605f.png?w=240 240w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/figure>\n<\/figure>\n\n\n\n<p>Not only does this help you avoid expensive <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/stockout-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">stockout costs<\/a> by timing replenishment correctly, but it also ensures that your warehouse isn\u2019t holding excess stock. This prevents warehouse crowding and disorganized inventory, ensuring a more seamless inventory counting process.&nbsp;<\/p>\n\n\n\n<p>Moreover, you can use your demand forecasting insights to plan your inventory counts according to your replenishment schedule. That way, you can improve counting efficiency by reducing the need to double count (once before replenishment and once after replenishment).&nbsp;<\/p>\n\n\n\n<p>For more information on how ShipBob can make inventory counting \u2013 and <a href=\"https:\/\/www.shipbob.com\/inventory-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory management<\/a> \u2013 easier, click the button below to get in touch.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\">request fulfilment pricing<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-inventory-counting-faqs-nbsp\">Inventory counting FAQs&nbsp;<\/h2>\n\n\n\n<p>Below are answers to the most commonly asked questions about inventory counting.&nbsp;&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What is the best way for small businesses to count their inventory?\u00a0<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>The best way for small businesses to count their inventory is by leveraging automation tools and inventory management technology. Performing perpetual inventory counts with a system that can automatically track inventory movement and update inventory levels based on the latest transactions reduces the need to put your operations on hold for inventory counts while alleviating staff limitations.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How often should inventory be counted?\u00a0<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Inventory counting frequency varies based on the unique needs of your business and the inventory counting method you use. As a general rule, inventory counts should be performed at least once a year, although some businesses may perform cycle counts regularly on a monthly basis.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What are best practices for inventory numbering?\u00a0<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>When numbering inventory, businesses should keep numbers short but not so short that they can be mistaken for quantities. Capitalise any letter so it doesn\u2019t get confused for a different letter. Additionally, follow a consistent inventory numbering system so it\u2019s easier to understand.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How can ShipBob help with inventory counting?\u00a0<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>ShipBob\u2019s real-time inventory tracking capabilities and powerful WMS ensure unparalleled accuracy and efficiency. This supports perpetual inventory counts by automatically keeping your inventory records updated whenever inventory is moved\u00a0in warehouse and fulfilment operations.\u00a0<\/p>\n\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s what inventory counting is, counting methods you can use, and best practices that will improve the inventory counting process. <\/p>\n","protected":false},"author":194,"featured_media":20224,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[8],"class_list":["post-20222","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-inventory"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is Inventory Counting? 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