Understanding Stock Allocation vs. Stock Reservation: Key Differences

Contents

Stock Allocation

What is Stock Allocation?

How to Set Up Stock Allocation

Stock Reservation

What is Stock Reservation?

How to Set Up Stock Reservation

Introduction:

Managing inventory effectively is crucial for maximizing sales and minimizing stockouts. This guide explains the differences between Stock Allocation and Stock Reservation, helping you choose the right strategy for your business.

Stock Allocation

What is Stock Allocation?

• Stock Allocation dedicates a fixed quantity of inventory to a specific sales channel (e.g., Lazada, Shopee, or Zalora). The allocated stock is exclusive to that marketplace and not shared with others.
• Example:
  • Total Stock: Product1 (100 units) listed on Lazada, Shopee, and Zalora.
  • Allocation: 60 units allocated to Lazada.
  • Result:
    • Lazada gets only 60 units (dedicated stock).
    • The remaining 40 units are available for Shopee & Zalora.

How to Set Up Stock Allocation

1. Navigate to Inventory: Go to the Inventory section.
2. Select Stock Allocation: Choose the ‘Stock Allocation’ sub-type.
3. Enter Details: Input the required details to allocate stock to the desired marketplace.
   

Stock Reservation

What is Stock Reservation?

• Stock Reservation reserves a portion of stock for a marketplace (e.g., Lazada) but still allows that marketplace to access the remaining unreserved stock if needed. Other channels (e.g., Shopee, Zalora) can only sell the unreserved stock.
• Example:
  • Total Stock: Product1 (100 units) listed on Lazada, Shopee, and Zalora.
  • Reservation: 60 units reserved for Lazada.
  • Result:
    • Lazada can sell up to 100 units (reserved 60 + unreserved 40).
    • Shopee & Zalora can only sell the 40 unreserved units.

How to Set Up Stock Reservation[OK1] 

1. Navigate to Promotions: Go to the Non-Marketplace Integrated promotion type.
   
2. Select Flash Sale – Stock Reservation: Choose the Stock Reservation promotion type.
   
3. Enter Details: Input the required details to reserve stock for the desired marketplace.

Conclusion:

Understanding the differences between Stock Allocation and Stock Reservation can help you optimize your inventory management. Use Stock Allocation for dedicated stock distribution and Stock Reservation for flexible stock usage during promotions. For further assistance, refer to your inventory management system's support documentation or contact customer service.