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    Inventory management for a small online store: is a spreadsheet enough?

    Most small stores start with a spreadsheet, and that's fine for a while. Here's how to set up SKUs, counts and reorder points, when a sheet stops being enough, and how to avoid overselling across channels.

    Illustration: a stock spreadsheet beside shelves of labelled products in a small store
    Yashh Mittal
    Yashh Mittal
    Founder
    31 Aug 2026 · 4 min read
    Topic: Operations & fulfilment
    In short

    For inventory management in a small online store, a spreadsheet works while you have few SKUs and one sales channel. Give each variant a SKU, count stock on a fixed day and set reorder points. Move to software once you sell the same stock in two places.

    When a spreadsheet is enough

    A spreadsheet is a fine start. If you sell 30 products from one store and pack them yourself, a sheet with one row per item does the job. You know your shelves, and you update the sheet when stock comes in or goes out. Google Sheets can even flag low stock for you. Its conditional formatting changes a cell's colour when it meets a rule, such as "less than 5". The trouble starts when more than one person, or more than one sales channel, touches the same numbers.

    Give every variant its own SKU

    A SKU is a short code for one exact item you sell. A kurta in three sizes and two colours is six SKUs, not one. Keep codes short and easy to read, such as KRT-BLU-M. Use the same code on your shelf label, your sheet and your store. When a buyer orders a medium blue kurta, you should find it in seconds. Your stock count should drop for that exact size, not for kurtas in general.

    Columns your stock sheet needs

    ColumnWhat it holds
    SKUThe unique code for each variant
    Product and variantName, size and colour in plain words
    In stockUnits on your shelf right now
    Reorder pointThe level that tells you to order more
    Supplier and lead timeWho makes it and how many days they take
    Cost priceWhat one unit costs you, for margin and GST records
    Last countedThe date you last checked the shelf against the sheet

    Set a reorder point for each item

    A reorder point tells you when to order more, before you run out. A simple way to set one is to multiply your average daily sales by your supplier's lead time in days, then add a small buffer. If you sell 4 units a day and your supplier takes 10 days, reorder at about 40 units plus a few extra. Review the numbers before festive sales, when daily sales jump. Slow items need a lower reorder point, or none at all.

    Count your stock on a fixed day

    Your sheet is only as good as your last count. Pick a quiet day each week or month and check the shelf against the sheet. Fix the gaps and note why they happened - a damaged piece, a missed return or a typo. If you are registered for GST, you need these records anyway. The CGST Rules ask most registered sellers to keep stock accounts. They must show the opening balance, goods received and supplied, goods written off and the balance of stock. The CGST Act allows these accounts to be kept in electronic form.

    Avoid overselling across channels

    Overselling happens when two channels sell the same last unit. Say you list a saree on a marketplace and on your own store, with one piece left. Both can sell it before you update either one. Then you cancel an order, which hurts your ratings and your buyer's trust. With a sheet, the safest fix is to split stock. Give each channel its own quantity, or hold one or two units back as a buffer. When that gets too fiddly, it is time for software.

    When to move to inventory software

    Move on when the sheet costs you more time than it saves. The signs are clear. You sell on two or more channels, more than one person updates stock, or you oversell more than once a month. Good software lowers stock as each order is placed, so the count stays true. The Storemate does this for your own store. Checkout refuses an order once stock runs out, and your dashboard lists products with five or fewer units left. If you also sell on a marketplace, keep a small buffer there.

    Frequently asked questions

    Is a spreadsheet enough for inventory in a small online store?

    Often, yes, while you have a few dozen SKUs and sell in one place. It stops being enough when you sell the same stock on more than one channel, or when updating counts by hand starts causing oversold orders.

    What is a reorder point?

    It is the stock level at which you place a new order with your supplier. A simple version is your average daily sales multiplied by the supplier's lead time in days, plus a small safety buffer.

    Do I need to keep stock records for GST?

    Yes, if you are registered. The CGST Rules ask registered sellers, other than composition dealers, to keep stock accounts with the opening balance, goods received, goods supplied, goods written off and the balance of stock.

    Sources

    • CBIC - CGST Rules, 2017 (Part A, rules)
    • Google Docs Editors Help - Use conditional formatting rules in Google Sheets

    Keep reading

    • GuidesA daily order packing and dispatch routine for a small online store
    • PlaybooksRunning a marketplace and your own store together
    • GuidesDead stock clearance: how to clear slow stock without cheapening your brand
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