Managing Inventory Policy

Managing Inventory Policy

An Inventory Policy controls how product stock is calculated, buffered, and synchronized from your Magento store to TikTok Shop. It helps prevent overselling, manage multi-warehouse inventory, and define which stock source should be used during sync.
Follow the steps below to create and configure an Inventory Policy correctly. 

Step 1: Open Inventory Policy 

  1. Go to TikTok Marketplace → TikTok Policies
  2. Click Add Policy
  3. Select Inventory Policy
You will be redirected to the New Inventory Policy configuration page. 

Step 2: Enter Policy Title 

  1. Enter a clear internal name for the policy
  2. This title is used only for internal identification and assignment.

Step 3: Inventory Threshold Settings 

This section controls how stock quantity is calculated and adjusted before syncing to TikTok. 

Default Quantity 

This value is used only when “Use Manage Stock” is set to “No” for a product in Magento.
Use this when:
  1. You don’t track stock at the product level
  2. You want a fixed quantity always sent to TikTok 

Threshold Buffer 

This allows you to hold back a safety stock and only send the remaining quantity to TikTok.
Formula used: TikTok Quantity = Actual Stock – Threshold Buffer
Example:
  1. Actual stock = 50
  2. Threshold buffer = 5
  3. TikTok will receive = 45 units 
Use this to: 
  1. Prevent overselling
  2. Keep emergency stock
  3. Handle delayed warehouse updates 

Set Inventory on the Basis of Threshold 

When you enable Set Inventory on Basis of Threshold = Yes, the system switches from a simple buffer-based calculation to a rule-based stock control system. This gives you precise control over what quantity is sent to TikTok depending on real-time Magento stock levels. 

  1. Threshold Value: This is the reference stock level used for comparison. The system will compare the actual Magento quantity with this value. 
  2. Inventory for Lesser Than Threshold Value: This value decides what quantity is sent to TikTok when Magento stock is BELOW the threshold. Used when the actual Magento inventory is smaller than the “Inventory Threshold Value.” This helps:
    1. Maintain scarcity
    2. Avoid last-unit oversells
    3. Restrict low-stock exposure on TikTok
  3. Inventory for Greater Than Threshold Value: This value decides what quantity is sent to TikTok when Magento stock is ABOVE the threshold. Used when the actual Magento inventory is greater than the “Threshold Value.” This ensures:
    1. TikTok never overshoots your safe selling quantity
    2. Inventory exposure is capped even when the stock is high

Warehouse 

Select the warehouse from which TikTok inventory should be synced.
This is critical when: 
  1. You have multiple physical warehouses.
  2. Stock varies by location.
  3. Different fulfillment centers are used.
Notes
This field is mandatory—policy cannot be saved without it.


Step 4: MSI (Multi-Source Inventory) Settings 

This section applies only if Magento MSI is enabled. 

Enable or Disable MSI 

Use MSI 

  1. Yes → Enables Magento Multi-Source Inventory logic
  2. No → Uses legacy single-stock quantity
If MSI is disabled in Magento:
The system automatically falls back to the default product quantity.
Recommended: Keep this enabled (Yes) if your store uses: 
  1. Multiple stock sources
  2. Warehouse-based inventory 

Source 

Choose the inventory source used for syncing.
This ensures:
  1. Only stock from the selected source is sent to TikTok
  2. Other warehouses are ignored for TikTok sync

Salable Stock 

This determines which salable quantity is used for TikTok.
Important Rule: Salable Stock always has higher priority than Source quantity
This ensures:
  1. Backorders and reservations are correctly accounted for
  2. Only actually sellable stock is sent to TikTok 

Step 5: Save the Inventory Policy 

  1. Click the Save button
  2. The system validates required fields: 
    1. Title
    2. Warehouse
    3. Use MSI
    4. Source
  3. If all required data is correct:
    1. Policy Status becomes VALID
    2. The policy becomes available for assignment

Step 6: Assign the Inventory Policy 

After saving the policy:
  1. Go to TikTok Marketplace → Listing Templates
  2. Open an existing template or create a new one
  3. Assign your newly created Inventory Policy
  4. Save the template
This policy will now control:
  1. Stock calculation
  2. Buffer logic
  3. Warehouse selection
  4. MSI behavior for all products using that template 

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