diff --git a/engines/catalog/app/services/catalog/product_import/products_reset_strategy.rb b/engines/catalog/app/services/catalog/product_import/products_reset_strategy.rb
index c4cf28cdf1..da963717e7 100644
--- a/engines/catalog/app/services/catalog/product_import/products_reset_strategy.rb
+++ b/engines/catalog/app/services/catalog/product_import/products_reset_strategy.rb
@@ -12,7 +12,7 @@ module Catalog
 
         return 0 if enterprise_ids.blank?
 
-        reset_variants_on_hand(enterprise_variants_relation)
+        reset_variants_on_hand_and_on_demand(enterprise_variants_relation)
       end
 
       private
@@ -32,17 +32,19 @@ module Catalog
         relation.where('spree_variants.id NOT IN (?)', excluded_items_ids)
       end
 
-      def reset_variants_on_hand(variants)
+      def reset_variants_on_hand_and_on_demand(variants)
         updated_records_count = 0
         variants.each do |variant|
-          updated_records_count += 1 if reset_variant_on_hand(variant)
+          updated_records_count += 1 if reset_variant_on_hand_and_on_demand(variant)
         end
         updated_records_count
       end
 
-      def reset_variant_on_hand(variant)
+      def reset_variant_on_hand_and_on_demand(variant)
+        was_on_demand = variant.on_demand
+        variant.on_demand = false
         variant.on_hand = 0
-        variant.on_hand.zero?
+        variant.on_hand.zero? || was_on_demand
       end
     end
   end
diff --git a/engines/catalog/spec/services/catalog/product_import/products_reset_strategy_spec.rb b/engines/catalog/spec/services/catalog/product_import/products_reset_strategy_spec.rb
index a2fd01d01b..823ed5d6b1 100644
--- a/engines/catalog/spec/services/catalog/product_import/products_reset_strategy_spec.rb
+++ b/engines/catalog/spec/services/catalog/product_import/products_reset_strategy_spec.rb
@@ -91,6 +91,16 @@ module Catalog
                 expect { products_reset.reset(supplier_ids) }.to raise_error RuntimeError
               end
             end
+
+            context 'and the variant is on demand' do
+              before { variant.on_demand = true }
+
+              it 'turns off the on demand setting on the variant' do
+                products_reset.reset(supplier_ids)
+
+                expect(variant.reload.on_demand).to eq(false)
+              end
+            end
           end
         end