---
title: Shopify Oversold Product: What To Do | Actorly
description: An oversold product needs a fast response. Learn how to handle the customer order, what your options are, and how to prevent it from happening again.
canonical: https://actorly.app/blog/what-to-do-when-shopify-oversells-a-product
---

[← Blog](https://actorly.app/blog) [Products and inventory](https://actorly.app/blog/category/products-and-inventory)

# What to do when your Shopify store oversells a product

When you sell an item you do not have, first confirm the shortage, then contact the customer with clear options before you change or cancel their order.

[Odera Joseph Echendu](https://actorly.app/authors/odera-joseph-echendu) Oct 23, 2026 8 min read

When your Shopify store sells an item that is not in stock, the first step is to confirm the exact shortage and then communicate with the customer. According to [Lowerchargeback](https://lowerchargeback.com/resources/oversold-shopify-inventory-resolve-the-order-before-it-becomes-a-dispute), presenting the customer with clear, available options for their order is the priority before you process a cancellation or refund.

## Key takeaways

- First, confirm exactly which items are short and which are available for the specific order.
- Contact the customer to explain the situation and offer concrete alternatives, such as waiting for a restock, accepting a substitute, or canceling the item.
- Process the customer's choice using Shopify's tools to cancel or refund the order correctly, ensuring payment and inventory records are updated. ([Refunding orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/refunding-orders))
- Review your product inventory settings to prevent future overselling, particularly the "Continue selling when out of stock" option.

## What is the first step when a product is oversold?

The first step is to confirm the details of the stock shortage before contacting the customer. Check your physical inventory against the order to see exactly what is missing. According to [Lowerchargeback](https://lowerchargeback.com/resources/oversold-shopify-inventory-resolve-the-order-before-it-becomes-a-dispute), A single order might be short one variant, like a specific size or color, while other items in the order are ready to ship.

This message should explain the problem and present the choices you can offer them. According to [Lowerchargeback](https://lowerchargeback.com/resources/oversold-shopify-inventory-resolve-the-order-before-it-becomes-a-dispute), it is important that one person on your team is responsible for communicating with the customer until the issue is resolved.

## What are my options for the customer's order?

You have several options to offer a customer when an item they ordered is out of stock. The key is to present only alternatives that your business can truly honor. According to [Lowerchargeback](https://lowerchargeback.com/resources/oversold-shopify-inventory-resolve-the-order-before-it-becomes-a-dispute), avoid suggesting a vague "slight delay" if you don't have a confirmed restock date.

OptionFulfillment ActionPayment Action

**Wait for restock** Hold the backordered item until it arrives. Give a specific date if you have one.Confirm if any price adjustment is needed.

**Accept a substitute** Replace the item with a specific, agreed-upon alternative.Handle any price difference that results from the substitution.

**Ship available items now** Fulfill the in-stock portion of the order immediately.Decide how to handle the payment for the unshipped item (refund, store credit, etc.).

**Cancel the item or order** Remove the item from the fulfillment queue. ([Canceling orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/canceling-orders))Issue a refund for the canceled item. (Canceling orders, Refunding orders)

Do not send a substitute item without the customer's clear agreement. According to [Lowerchargeback](https://lowerchargeback.com/resources/oversold-shopify-inventory-resolve-the-order-before-it-becomes-a-dispute), A customer who does not reply has not consented to a change. After the customer chooses, update the order in Shopify by canceling items, issuing a refund, or adjusting the fulfillment as needed.

Example: [Lowerchargeback](https://lowerchargeback.com/resources/oversold-shopify-inventory-resolve-the-order-before-it-becomes-a-dispute) gives a hypothetical case of an order for a backpack and two organizers, where the second organizer is out of stock. A useful message to the customer would explain the problem and present clear options, such as: "We cannot currently supply the second organizer in the color you ordered. The backpack and first organizer are available. We can ship the available items now and refund the missing one, or we can offer the second organizer in an alternative color. Please let us know which option you prefer."

## How do I cancel an oversold order in Shopify?

If the customer agrees to a cancellation, or if you need to cancel an order because an item is unavailable, you can do so from your Shopify admin. ([Canceling orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/canceling-orders)) Canceling an order stops the fulfillment process. Depending on the order's payment and fulfillment status, you may also need to issue a refund.

1. From your Shopify admin, go to **Orders**. ([Canceling orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/canceling-orders))
2. Click the order that you want to cancel.
3. Click **More actions** and then **Cancel order**.
4. In the **Refund payment** section, choose how to refund the payment. You can refund to the original payment method, issue store credit, or choose to refund later.
5. Select a **Reason for cancellation** from the drop-down menu.
6. By default, the items will be restocked in your inventory. Deselect **Restock inventory** if you do not want this to happen.
7. By default, a notification is sent to the customer. Deselect **Send a notification to the customer** if you have already communicated with them.
8. Click **Cancel order** to finish.

The order's payment status will change to **Voided** if payment was not captured, or **Refunded** if you issued a full refund. ([Canceling orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/canceling-orders)) If you issue a partial refund later, the status becomes **Partially refunded**.

## How do I refund an oversold order?

Refunding an order sends the payment back to the customer. You can refund an entire order or part of it. ([Refunding orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/refunding-orders)) If an item was oversold, you can refund that specific item while keeping the rest of the order intact.

1. From your Shopify admin, go to **Orders**. ([Refunding orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/refunding-orders))
2. Click the order you want to refund.
3. Click **Refund**.
4. Enter the quantity of the oversold item to refund. Set the quantity to 0 for items you are not refunding.
5. You can refund the shipping cost in the **Refund shipping** section if needed.
6. In the **Summary** section, confirm the refund amount and method.
7. Optionally, deselect **Restock items** if you don't want the refunded item to be added back to your inventory count. This is useful if the inventory count was wrong in the first place.
8. Click **Refund** to process the refund. A notification email is sent to the customer by default.

You can add a **Reason for refund**, but this note is not visible to the customer. ([Refunding orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/refunding-orders)) For more details on how Shopify handles product changes, see our guide on [whether Shopify keeps a history of product changes](https://actorly.app/blog/does-shopify-keep-a-history-of-product-changes).

## Why does overselling happen?

Overselling typically happens when a product's inventory settings in Shopify are configured to allow sales even when the stock count is zero or below. This is controlled by a specific setting on the product or variant level. ([Selling out of stock products](https://help.shopify.com/en/manual/inventory-and-locations/setup/selling-when-out-of-stock)) This can be useful for pre-orders or when you know stock is arriving soon, but it can also lead to accepting orders you cannot fulfill if not managed carefully.

Another factor can be having multiple inventory locations. If an item is out of stock at the location that fulfills online orders, it will appear as out of stock to customers, even if you have inventory at another location that doesn't fulfill online orders. ([Selling out of stock products](https://help.shopify.com/en/manual/inventory-and-locations/setup/selling-when-out-of-stock)) Your location fulfillment settings play a role in what inventory is considered available for sale online.

## How can I prevent overselling?

The best way to prevent overselling is to review and adjust your inventory tracking settings in Shopify. For each product, you can decide whether to allow customers to purchase it when it's out of stock. ([Selling out of stock products](https://help.shopify.com/en/manual/inventory-and-locations/setup/selling-when-out-of-stock))

To check this setting:

1. Go to **Products** in your Shopify admin and select a product.
2. In the **Inventory** section, make sure **Inventory tracked** is checked.
3. Look for the checkbox labeled **Continue selling when out of stock**. ([Selling out of stock products](https://help.shopify.com/en/manual/inventory-and-locations/setup/selling-when-out-of-stock))

If this box is checked, customers can buy the product even if your inventory count is zero. ([Selling out of stock products](https://help.shopify.com/en/manual/inventory-and-locations/setup/selling-when-out-of-stock)) Uncheck this box for products you do not want to oversell. Regularly auditing your inventory counts and settings helps ensure your store only sells what you have on hand.

## Frequently asked questions

### Can I send a substitute item?

No, you should not send a substitute without getting clear agreement from the customer first. According to [Lowerchargeback](https://lowerchargeback.com/resources/oversold-shopify-inventory-resolve-the-order-before-it-becomes-a-dispute), the customer may have chosen the original item for a specific reason, and sending something different can lead to a dispute or a chargeback.

### What happens to my inventory if I cancel an order?

When you cancel an order in Shopify, the **Restock inventory** option is selected by default. ([Canceling orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/canceling-orders)) This means the canceled items are automatically returned to your inventory count. If you are canceling because the item was never in stock, you should deselect this option to avoid perpetuating the inventory error.

### Can I cancel an order that has been partially fulfilled?

No, you cannot cancel an order after it has been partially fulfilled. ([Canceling orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/canceling-orders)) To make the order eligible for cancellation again, you would first need to cancel the fulfillment. Alternatively, you can issue refunds for the unfulfilled items and manage returns for the fulfilled items separately.

### What is the difference between canceling and refunding?

Canceling an order stops the fulfillment process, while refunding an order sends payment back to the customer. ([Refunding orders](https://help.shopify.com/en/manual/fulfillment/managing-orders/refunding-orders)) You can cancel an order and issue a refund at the same time. However, you can also issue a refund without canceling the entire order, for example, if you are refunding just one item from a larger order.

Written by [Odera Joseph Echendu](https://actorly.app/authors/odera-joseph-echendu) Founder of Actorly

Odera Joseph Echendu is the founder of Actorly, a Shopify app from ONDUTYOPS LLC that keeps a searchable history of the changes it can see in a store. He spent seven years leading customer support and technical support inside high-growth SaaS and e-commerce companies.

[All posts by Odera Joseph Echendu](https://actorly.app/authors/odera-joseph-echendu)

## Related in [Products and inventory](https://actorly.app/blog/category/products-and-inventory)

[A Shopify product went from Active to Draft: when?:](https://actorly.app/blog/a-shopify-product-went-from-active-to-draft)

## Keep reading

[Store history and recovery How to set up a monthly Shopify export routine:](https://actorly.app/blog/how-to-set-up-a-monthly-shopify-export-routine)[Apps and comparisons How AI tools help a Shopify store owner:](https://actorly.app/blog/how-ai-tools-help-a-shopify-store-owner)[Marketing and SEO How to set up Facebook and Instagram ads for Shopify:](https://actorly.app/blog/how-to-set-up-facebook-and-instagram-ads-for-shopify)