Complete Introduction On Magento Multi-Source Inventory ConnectPOS Content Creator September 22, 2023

Complete Introduction On Magento Multi-Source Inventory

Magento Multi-Source Inventory

Inventory management has been evolving dramatically from single to multiple sources. Multi-Source Inventory (MSI) is an extraordinary feature of the Magento 2.3 version. 

Magento Multi-Source Inventory is designed to assist store merchants in controlling and managing their single or multiple warehouses and sale channels from the Magento 2 admin panel.

Hereby, retailers can accurately reflect their physical inventories without third-party modules and implement more complex completion strategies.

What Is Magento Multi-Source Inventory 

Magento Multi-Source Inventory allows merchants to:

  • Manage all the inventory sources without any third-party platforms
  • Link with several inventory sources to one or more websites 

Gathering multiple sources, and defining the relation between the sources and web stores is accomplished with new concept stocks. 

Advantages of Magento Multi-Source Inventory

As an efficient checkout, the Magento MSI system efficiently increases sales and improves customer experience with enhanced inventory visibility.  Moreover, it enhances physical location management, sources and products with up-to-date inventory reports.

Thanks to the help of this feature, businesses can easily implement dropshipping services. Merchants can organize a separate shipment from different warehouses if a customer wants a particular item in advance with faster transit service. 

Retailers also have the chance to create an omnichannel journey and enhance the customer shopping experience with ‘Buy Online and Pick Up in Store’ right at the warehouse to increase traffic. 

It offers a great channel for linking MSI with multiple sources like marketplaces, physical stores and eCommerce stores. Store owners can link the eternal systems through API and manage orders effectively, even in peak hours. You can use Magento’s CSV importing feature to transfer bulk inventory or megastore data between warehouses. 

Related articles:   BigCommerce Statistics You Should Know

Magento Multi-source Inventory system makes it easy to manage the delivery of an order from a specific source/location based on the shipping address.

Terms You Need To Know When Using Magento MSI


Magento Multi-source Inventory is based on sources, which is a location or a place stock, where the products are stored. This physical location can be a warehouse, distribution places, brick-and-mortar store, drop shippers or anywhere.

As a primary function, store owners are allowed to add new sources and then set the quantity of the available products for every single source. Sources cannot be deleted, to ensure all the order data remains in Magento Inventory Management. Sources, orders and shipments are synchronised to each other.


Stocks are virtual presentations of multiple sources, stocks map your sources to sale channels, provide a direct link to salable quantities and inventories. Unlike sources, stocks can be deleted and edited.

Salable Quantity

Once you have created sources and stocks, you have to distribute the products. Salable quantity is the total sum of available resources, which are grouped in stocks. Here the quantity doesn’t decrease when the customer places the order, but the salable quantity gets reduced. The quantity of the products is decreased only after the shipping is completed.

Source Selection Algorithm

This works by tracking salable quantities across all sources, calculating and making recommendations for shipments in the most efficient way with the highest product margin. It utilizes data of customers, products, addresses, stocks, sources, and orders delivery location.

MSI for every retailer

Magento Multi-source Inventory system is the perfect choice for retailers to manage their inventory effectively. As a built-in feature right inside the backend, MSI has brought Magento to another level, which helps to concrete its position as one of the best eCommerce platforms right now.

Related articles:   Store Chain and Franchise: What's the difference? How to manage them successfully

However, what about other retailers who don’t use Magento?

At ConnectPOS, we have the solutions to this problem. ConnectPOS Multi-source Inventory Management System is here to help you manage your inventory better. Covering all essential steps in the process as purchase management, goods receive notes or stocktaking, the add-on is the perfect piece for your retail business. Most importantly, the system is compatible with most eCommerce platforms, such as Magento, Shopify and BigCommerce. Click here to find out how to upgrade your inventory management system.

Write a comment
Your email address will not be published. Required fields are marked *