Shopify

How to Change Shopify Inventory Location to 3rd Party

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If you’ve ever wondered how to change Shopify inventory location to 3rd party, you’re in the right place. Many Shopify store owners reach a point where managing stock in-house becomes too complicated. Whether you’re working with a fulfillment center, warehouse, or dropshipping partner, moving inventory to a 3rd party can make your operations smoother and more scalable.

In this guide, I’ll not only show you the steps but also explain how it connects with Shopify inventory management, Shopify inventory tracking, Shopify inventory management system, and how inventory management software Shopify merchants use can help. You’ll also learn why the Shopify inventory location ID matters.

Keynotes

  1. Moving to a 3rd party fulfillment center makes inventory scalable and cost-efficient.
  2. Shopify inventory tracking ensures your stock is always accurate across channels.
  3. Every new location comes with a Shopify inventory location ID, essential for integrations.
  4. Using an inventory management software Shopify merchants rely on saves time and reduces errors.
  5. A strong Shopify inventory management system connects all your locations under one dashboard.

Why Move Shopify Inventory to a 3rd Party Location?

Here are some of the best reasons why merchants do this:

  • Scalability: You don’t have to rent extra storage space during busy times. (If you’re just getting started, check out how to build a store on Shopify for a step-by-step setup guide.)
  • Efficiency: A fulfillment partner can ship and handle orders more quickly.
  • Accuracy: A good Shopify inventory management system makes it less likely that mistakes will happen or that items will be sold out.
  • Automation: Working with software for managing inventory Shopify apps save you hours of work.
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Step-by-Step: How to Change Shopify Inventory Location to 3rd Party

1. Add a new place

  • To do this, navigate to Settings > Locations in your Shopify admin.
  • Click “Add location” and enter the third party’s information, such as their name, address, and so on.

This provides a unique Shopify inventory location ID that Shopify uses to keep track of stock and communicate with apps or APIs.

2. Give Products to the New Place

  • Go to the Products area.
  • Open a product, scroll down to Inventory, and give it to the new third-party location.

3. Turn on Shopify’s inventory tracking.

To keep your stock up to date automatically when things are sold or refilled at a third-party location, turn on the Shopify inventory tracking feature.  For deeper insights into sales and stock performance, check out our guide on the Shopify Sales Tracker

4. Try out the Setup

Place a test order to make sure that the new location works well and that your Shopify inventory management dashboard updates in real time.

Detailed Look at Shopify Inventory Features

Shopify Inventory Management

Shopify’s built-in inventory system makes it easy to keep track of stock levels at different locations. It makes sure you don’t sell too much and lets you see clearly how many products are available.

Shopify Inventory Management System

This is how Shopify’s stock control works as a whole. It takes care of transfers, changes to stock, and support for multiple locations. Adding a third-party warehouse makes it part of this Shopify inventory management solution.

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Shopify Inventory Tracking

This technology cuts down on manual work by automatically changing the numbers following sales, refunds, or restocks. It is important to avoid overselling and make sure that all channels, whether online and offline, are accurate.

Inventory Management Software Shopify

Tools from other companies, like Cin7, TradeGecko, or Skubana, work with Shopify to add additional capabilities like analytics, purchase order automation, and forecasting. Shopify solutions for inventory management are quite important for organizations who are growing quickly.

Shopify Inventory Location ID

Shopify gives each warehouse or fulfillment center a unique Shopify inventory location ID. When connecting to other apps or utilizing the Shopify API, this ID is very crucial.

My Experience & How PlugBooks Can Help

When my store outgrew my home-based stockroom, I decided to switch fulfillment to a 3rd party logistics provider. At first, I worried about losing control, but once I updated my Shopify inventory location ID and turned on Shopify inventory tracking, everything synced beautifully. 

Orders shipped faster, my Shopify inventory management system became more accurate, and customer satisfaction went up.

But there was another side to the story—finances. Managing sales, stock, and accounting separately quickly became overwhelming. That’s when I discovered PlugBooks. With PlugBooks, my Shopify inventory connected seamlessly with bookkeeping, so I could see not just where my stock was but also how it impacted revenue and expenses. 

In short, PlugBooks helped me run my business smarter, not harder.

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FAQs About Shopify Inventory Locations

1. How do I know if I should move my Shopify inventory to a 3rd party?
If you’re struggling with storage, fulfillment delays, or order errors, it’s a strong sign you’ll benefit from outsourcing.

2. What is the Shopify inventory location ID?
It’s a unique number Shopify assigns to each warehouse or fulfillment center. You’ll need it for integrations and troubleshooting.

3. Can I use Shopify inventory tracking with a 3rd party provider?
Yes, as long as tracking is enabled, Shopify will adjust stock levels automatically after orders are fulfilled.

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4. Do I need inventory management software Shopify apps if I already use a 3rd party?
Not always. But if you manage multiple sales channels (Shopify, Amazon, eBay), advanced software gives you better forecasting and reporting.

5. Will changing my Shopify inventory location affect my customers?
Not directly. Customers still order through your store—the only difference is where the products are shipped from.

6. How does Shopify inventory management help with multiple warehouses?
It lets you centralize stock levels, track transfers, and keep sales channels updated no matter where the stock physically lives.

7. What is inventory management software Shopify?

It’s a third-party app that integrates with your Shopify store to track, forecast, and control stock across multiple channels, offering more features than Shopify’s built-in tools.

8. How does inventory management software Shopify help store owners?

It helps store owners track stock, automate reorders, and sync inventory across sales channels for smoother operations.

Last Thoughts

Now you know exactly how to change Shopify inventory location to 3rd party. Setting up the location, turning on tracking, and knowing important things like the Shopify inventory location ID can make your store’s fulfillment go more smoothly.

Your Shopify inventory management system will function like clockwork if you include solutions like inventory management software that Shopify businesses trust.

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