A reservation is automatically created for products and variations when a customer orders the product, and it is removed once the order has been processed or canceled.

When a customer orders a product, a reservation is created for the stock keeping unit (SKU). A reservation indicates that the given quantity is tied to unprocessed orders and is awaiting shipment. Reservations reduce the product's available stock balance for new orders only once the order has been processed.

You can view a product's reservations on the Stock tab of the product card. In Stock balance, you can see the reserved quantity and links to all orders that created the reservation.

The reservation is automatically removed when the order is marked as shipped or canceled, and the quantity reserved for the order is updated in the stock balance.