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How to set up inventory for a Magento retailer (online and offline channels share the same stock)

This is a case study from one of Magestore customers.

1. Business Overview

  • Offline stores: 2
    • 2 Staff per store
    • 2 POS per store
  • Number of Skus: about 100,000
  • Use normal devices
  • Have 1 online site which uses the stock from both of his physical stores.

2. How to set up the inventory

This is how Magestore inventory architecture looks like:

Magestore inventory structure

Step 1: Before you start

Define clearly all the terms and match with those on Magento and Magestore system:

  • Sales channels:
    • Online website = website
    • Physical stores = 2 sources: this is where you update all information such as name, address, ID…for the physical stores
    • Stock = stock: indicate the number of qty that one or multiple sources have.
      For this customer, for ex: there will be 2 physical stores running: Store A and Store B. In Store A, he has 208 products, in Store B, he has 400 products.
      • The stock for Source A is 208
      • The stock for Source B is 400
      • The total stock for both sources is 608
  • 2 POS/store = 2 POS/location
  • 2 Staff = 2 Staff accounts

Step 2: Create the two sources

Go to Stores > Sources > create two sources for two stores A & B updated with name and correct information.

manage source

Step 3: Create the stocks

  • There will be Online stock to be linked with two sources A and B at the same time and linked with online sales channel because the online site will sell products available in two sources A and B.
  • Stock A to be linked with source A
  • Stock B to be linked with source B

Go to Stores > Stock > set up like this

Manage stock

Step 4: Manage Locations on POS

Go to POS > Manage Location to link POS location to the right stock

Step 5: Create 2 POS in each location

Create POS

Step 6: Create 2 staff accounts in each location

create staff

Step 7: Allocate stock for each source

Go to Catalog > Products to put the qty for each source

allocate stock

3. Result

On POS, after you complete an order for product Joust Duffle Bag at store A, its qty will immediately be updated correctly to the backend.

That means the customers can only buy 607 products from online site, 207 products from store A and 400 products from store B.


In case you want run another new separate store/warehouse to keep the stock for the Online website sales channel, then you just need to link the Online stock to that new source.

Hope my article can be helpful for you!