Channels Inventory Manager app let you create and manage the inventory for the channels. You can create any number of sales channels where you are selling your products and can manage their inventory from this app only. Shopify default inventory will act as the parent inventory. Which means, if you add some number, which you have sold on some channel, this will reduce the main Shopify inventory
For example, You have a product named “iPhone 7” with 100 pieces on Shopify. Also, you are selling the phone on some store say ‘Downtown Shop’ and sold 4 pieces there. Now, you just need to create the channel named ‘Downtown Shop’ and add 4 pieces to “iPhone 7”. This will automatically reduce the total pieces to 96 from Shopify as you are left with 96 pieces now.
Channels are the third party sale points where you are selling you product along with Shopify