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What is SKU Level Inventory Source?

SKU Level Inventory Source allows you to disable inventory sources at the SKU level, rather than just the integration level.

You must start by going here to your Business Settings and turn on "SKU Level Inventory Source".

Once enabled, you will go to Inventory>Manage Inventory, where you will see a new option for SKU Level Inventory Source. 

Clicking on that will show you the inventory sources that are enabled for each SKU and marketplace. 

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Please note, this feature is for "opting out" a Market SKU's warehouse. So you would want to enable the desired inventory source for your marketplace at the integration level, then come to this page and turn off all the SKUs you do not want to sell that particular inventory source.