Overselling — taking an order you can't fulfill — is one of the most expensive "small" failures in DTC. It triggers refunds, support tickets, chargebacks, and churned customers, and it almost always comes from the same root cause: the stock number in Shopify no longer matches what's physically in your 3PL.
The reliable signal is simple: Shopify available > 3PL on-hand for any SKU. Reconcile the two at least daily (ideally continuously) and alert on any SKU where the storefront shows more than the warehouse physically holds, plus any SKU approaching zero. Treat the 3PL physical count as the source of truth and correct Shopify toward it — never blindly the other way.
Set a tolerance (e.g. 1 unit) so normal noise doesn't page you, and escalate true oversell risks immediately. The cost of a single oversold hero SKU during a launch dwarfs the effort of monitoring.