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Managing inventory can be time-consuming, whether in manufacturing or a retail store. Accurate inventory is essential to prevent stockouts, leading to lost sales. Customers are more likely to seek alternatives if demands are not immediately provided. This highlights the importance of maintaining a good business inventory and reliable inventory management software can streamline this process. In this post, we will explore the best inventory management software to help you decide which suits you.
What is Inventory Management Software
Inventory management software is a system used to track and organize all inventory, such as orders, sales, stocks, and other production processes. It also prevents you from running out of essential items and products, which is critical for daily operations. Basically, inventory management software provides you with data on your items' stocks.
Why You Should Use Inventory Management Software for E-commerce
Inventory management will expand and become more complex as your business grows and expands. Therefore, inventory management software for businesses offers several advantages. Let’s look at each of these:
Inventory management software saves you time by automating tedious processes
It allows businesses to run efficiently by tracking stock levels and managing orders
Prevent overspending by providing you with real-time data on inventory levels
Provides insights on which products have high demand and sales
Ensures you maintain optimal stock levels
Optimizing inventory levels and minimizing excess inventory leads to increased profits
It is more cost-effective in the long run if you only have enough stock as excess stocks incur expenses until it is sold and may also lead to stocks becoming obsolete
Generally, inventory management software offers invaluable tools for e-commerce and other businesses looking to automate and streamline their inventory-related processes. This software enhances productivity and overall business operations.
The Best Inventory Management Software
The best inventory management software for e-commerce offers several features for organizing all inventory. However, you should also consider that each tool has its advantages and limitations. Let’s look at some top options and which is best suited for your business.
1. Cin7
Cin7 is cloud-based inventory management software that streamlines stock management across multiple channels. It offers a range of valuable integrations for your business. With Cin7, you can automate purchasing and stock tracking and improve warehouse efficiency. The software also enables automatic inventory updates with barcode scanning and tracks your transfers between warehouses or retail locations. With Cin7’s capability to automate and streamline every inventory process, focusing on growing your business would be much easier.
Key Features of Cin7
Manage multiple shop floor locations and bins to organize inventory
View actual COGS, tax, and landed cost reporting and synchronize them to your accounting system
Integrates with over 40 well-known software tools such as Shopify, Amazon, Xero, Quickbooks, and much more
You can build SKUs the way you need to across sizes and colors and track lot/batch expirations and recalls
Pros and Cons of Cin7
Pros
Built-in POS systems on all plans
Allows automatically adding inventory details with barcode scanning
Integrates with well-known e-commerce and shipping platforms
Integrates with Accounting software such as Xero, Quickbooks
Support retail and wholesale customers with multiple price tiers
Multi-warehouse order automation
Cons
Does not offer a free trial
Limited users included
Limited accommodation for sale order volume
Requires add-on for shipping
Pricing
Cin7 offers four different pricing structures. The standard plan costs $349 monthly and includes 3 users and 2 e-commerce and app integrations. Moreover, it has integrations from various accounting software and can accommodate 6,000 yearly sale orders.
The Pro plan costs $599 monthly and includes 6 users and 4 e-commerce and app integrations. This might be the better plan if you have a higher sales order volume in a year, as it can accommodate up to 12,000 yearly.
Meanwhile, their Advanced plan costs $999 monthly, including 10 users and 6 e-commerce and app integrations. Bigger and larger businesses will benefit from this as it caters to a 120,000-yearly sale order volume. You also get to enjoy the automation of recurring tasks such as notifications, reminders, scheduling, and much more.
2. NetSuite
Netsuite is inventory management software designed for e-commerce. It automatically tracks inventory levels, orders, and sales throughout the inventory life cycle. Additionally, it provides insights to make business decisions and offers clear visibility into any inventory liabilities, such as excess or slow-moving stock. With Netsuite, you can proactively monitor stock levels and sell-through to ensure inventory availability and minimize obsolete inventory. The platform’s item serialization allows you to choose a specific item when you fulfill an order together. Plus, Item 360 provides information such as user-selected KPIs, inventory count by location, and projected stock levels.
Key Features of Netsuite
Real-time view of inventory across all locations and sales channels
Uses historical and seasonal sales data, average lead time, and number of inventory days of supply to manage item reorder points and maintain preferred stock levels
Item 360 Dashboard combines all relevant information related to an item in a single, centralized location.
NetSuite Smart Count feature which automates inventory counts without freezing transactions in the entire location
Pros and Cons of Netsuite
Pros of Netsuite
Multi-location fulfillment
Allows back and forward trace inventory using a lot and serial tracking
Real-time and company-wide inventory visibility, from warehouses to 3PLs or any other place
automatically generates tasks and alerts and sends them to the purchasing manager
Preferences allow administrators to choose what happens if the on-hand quantity changes for an item during the count process
Cons of Netsuite
Lack of fixed pricing structure
Customer support limitations and additional costs for 24/7 support
Additional cost for added modules and users
Pricing
Netsuite's pricing structure varies from licensing to training and support. Their Licensing and Modules vary, so you need to communicate with them to get a quote. Their Implementation starts at $10,000 for a one-time payment. Customizations cost $150-300 per hour, and
Integrations cost $0-4,000 annually, plus a one-time implementation fee.
3. Shopify
Shopify’s inventory management software is built directly into its e-commerce platform, ensuring a seamless experience from stock management to sales. The platform enables selling across multiple channels, from online stores to marketplaces, while keeping the inventory in sync. You can also receive direct notifications of low stock levels and install an inventory alert app from the Shopify App Store.
Key Features of Shopify
Track inventory across various warehouses, stores, and dropshipping companies.
Analyze inventory level changes in the Inventory Reports option
Viewable inventory adjustments for products and variants tracked by Shopify
In-depth analytics to track store performance
Multiple sales channels from Instagram to Google to promote and sell products
Shopify POS feature to sell in person and keep inventory in sync
Pros and Cons of Shopify
Pros
Multichannel inventory management
Multi-location tracking
Option for adding tags to products
Filter inventory based on product type
Cons
Limited multi-location inventory management depending on your pricing plan
Prohibited and restricted items you need to manage separately from Shopify if you list them on other channels
Narrow sales trend insights
Lack of inventory insights due to limited view of inventory history up to 90 days
Pricing
Shopify offers four pricing tiers: Basic, Shopify, Advanced, and the Plus. The first three plans offer a free trial to explore the features before committing.
The Basic plan, at $42 AUD per month, is ideal for solopreneurs. It offers up to 44.2% shipping discounts, supports 10 inventory locations, and allows localized selling in 3 markets. For small teams, the Shopify plan at $114 AUD per month includes everything in the Basic plan, plus 5 additional staff accounts.
As your business grows, you might consider the Advanced plan, priced at $431 AUD monthly. It has all the features under the Shopify plan but with enhanced chat support, 15 additional staff accounts, and a 10x checkout capacity. You can also expand your market reach for an additional $59 USD monthly.
For larger, more complex operations, the Plus plan starts at $2,300 USD per month for a 3-year term. It boasts 200 inventory locations, priority 24/7 phone support, and the ability to sell in 50 markets. The plan also features a fully customizable checkout with 40x capacity, 200 POS Pro locations with Shopify Payments, and wholesale/B2B selling options.
4. Zoho
Zoho is a cloud-based inventory management software that empowers you to efficiently handle inventory, orders, shipping, and warehouses. Additionally, it offers comprehensive solutions from sales to shipping. With Zoho Inventory, you can also sell across multiple channels and track all your sales. Furthermore, you can directly fulfill orders from different sales channels within the software. It also saves you time by streamlining shipping processes and gaining customer trust by sending instant updates.
Key Features of Zoho
Offers drop shipment and back ordering to create purchase orders directly from a sales order
Integrates with popular apps from shopping cart to shipping such as Shopify, Zoho Commerce, Amazon, Aftership, UPS, and many more
Provides order and inventory management
Competitive pricing structure than other inventory management software
Warehouse management
Pros and Cons of Zoho
Pros
Offers free plan including 50 orders/month and 1 user and warehouse
A wider range of pricing plans, catering to diverse business needs
Low-cost paid plans suited for small businesses
Offers mobile application
A wide variety of add-ons
Cons
Fewer e-commerce platform integrations
There might be a slight learning curve for new users
No purchase order and invoicing included
Pricing
Zoho offers four simple pricing plans. You can also try out the software using their free plan before purchasing a paid plan, which includes 1 user and warehouse and 50 orders monthly. After the trial, you can always decide to upgrade to their plan.
The Standard plan costs $29 per month and includes 500 monthly orders, 2 user accounts, and 1 warehouse. The Professional plan is priced at $79 per month, offering 3000 monthly orders, 2 user accounts, and multiple warehouses. This plan also includes features like price lists and serial and batch number tracking.
The Premium plan covers 7,500 monthly orders, 2 user accounts, and 3 warehouses for $129 monthly. It includes all the features of the Professional plan, as well as picklist generation, unit of measurement (UoM) management, and barcode generation.
Lastly, the Enterprise plan, priced at $249 per month, includes all the Premium plan features, but with the added benefit of 7 user accounts and 7 warehouses. This plan can accommodate up to 15000 orders monthly.
5. ShipBob
ShipBob is a third-party logistics (3PL) offering a premium order fulfillment solution that has built-in inventory management. This web-based software lets you manage, edit, and customize orders, track real-time stock levels from any location, and receive notifications when inventory reordering is needed.
Key Features of ShipBob
Built-in reports and analytics to power businesses' supply chain
Helps forecast integrate, and orchestrate inventory and orders across channels and locales
2-day shipping coverage across the continental US
Free data and analytics reporting tool
Provides cloud-based merchant application and proprietary warehouse management system (WMS)
Integrates with well-known e-commerce platforms such as Shopify, Amazon, BigCommerce, WooCommerce, and more
Pros and Cons of ShipBob
Pros
Built-in order tracking
Split inventory into best areas, reducing shipping costs significantly
Web-based software allows you to manage inventory and control the entire operation
Generate reports and analytics using its built-in modules
Streamlines entire order processing through viewing and filtering orders by status
Custom pricing or quotation based on your business needs
Broad platforms and tools integrations
Cons
A bit complex pricing structure
Requires minimum shipment threshold monthly
High storage fees
Can’t fulfill Seller-Fulfilled Prime (SFP) orders
Need to outsource fulfillment to ShipBob to use the inventory management tool
Pricing
ShipBob offers free software for ordering, inventory management, billing, and analytics. Meanwhile, the fulfillment fee is computed per package and covers the costs of picking, packing, packaging materials, and shipping. For receiving services, the rate is $35 per hour for the first two hours and $45 per hour thereafter. Storage fees are $40 per pallet per month, $10 per shelf per month, or $5 per bin per month. Pick and pack services are free for the first 4 picks, with an additional charge of 25 cents per pick thereafter. Shipping rates are discounted.
Wrapping Up
Inventory management software's importance in a fast-growing e-commerce business can not be overstated. As your business expands and grows, your inventory becomes more complex and bigger. The five software listed in this article offer unique features that allow you to decide on your own which one is the right fit for your business.
Whether you prioritize automation, integration, cost-effectiveness, or scalability, those software provides a solution out there for you. Choosing the right inventory management software can streamline your overall business operations, reduce costs, and drive business growth. Just carefully evaluate each to make an informed decision and help you boost your e-commerce venture in 2024.