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How to Handle Damaged Inventory in Shopify
Last updated: August 25, 2026
ow to Handle Damaged Inventory in Shopify
By Rahim Badsa
·
August 25, 2026
·
8 min read
Damaged inventory is an inevitable cost of doing business. Here's how to manage it properly.
Types of Inventory Damage
- Shipping damage: Products damaged in transit from supplier
- Storage damage: Products damaged in your warehouse
- Returns damage: Products returned in unsellable condition
- Theft/shrinkage: Products missing without explanation
How to Handle Each Type
Shipping Damage
Document immediately. Take photos. File claim with supplier/carrier within 48 hours. Don't accept damaged shipments without notation.
Storage Damage
Improve storage conditions. Use proper shelving, climate control, and handling procedures.
Write-Offs
When inventory is unsellable, write it off: reduce stock count in Shopify and record as an expense.
Prevention Strategies
- Inspect all incoming shipments before accepting
- Use proper packaging materials
- Train warehouse staff on handling procedures
- Implement security measures to prevent theft
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