The Best Inventory Management Software: Choosing The Right Solutions for Your Business

The success of an ecommerce business depends on strong inventory, marketing, and fulfillment management. While each business is undeniably unique, the end goal remains the same: to perpetually balance demand (orders) with supply (inventory). At first, it may seem acceptable to continue using traditional spreadsheets and templates—but as your brand grows, it'll become impossible to manage everything without harnessing the power of innovative software. Excel is certainly powerful, but there are now so many better, more comprehensive software solutions specifically catered to the needs of ecommerce businesses.

Ecommerce inventory management software is specifically designed to automate repetitive tasks and reduce human labor requirements. Automation helps business owners efficiently manage the inflow of paperwork, sales orders, and product movement, while also reducing the need for extra hands on deck. There’s no doubt you’ll always need a team of skilled employees, but inventory management software allows them to focus on high-value tasks. In short, they’ll spend less time counting stock, and more time building memorable customer experiences.

In addition, inventory management software has the capacity to greatly increase your company’s profitability. That’s because it seamlessly tracks inventory levels, bundling, kitting, reorder points, and more. Not only that, but proficient software leverages your data to avoid overselling and prevent low stock—or out of stock—events. Using inventory management software helps you implement inventory techniques so you can oversee the product lifecycle, improve your margins, and elevate customer service in one fell swoop.

In this article, we’ll highlight several leading inventory management platforms that’ll help you achieve scalable, sustainable results for your growing business in 2024 as well as tips on how to choose the right software.

The 7 Best Inventory Management Software Options for 2024

The best inventory management systems make good growth possible. But before you implement any inventory software or app, you should consider your business needs and the inventory management features that’ll help you reach your goals in the short and long-term.

Each of the following inventory management solutions offer their own advantages and functionality, and there are even some free inventory tools to help you get started. Remember, an inventory management system is important for multichannel success, so make sure the system you choose integrates with the channels you plan to sell on. Otherwise, you'll get stuck with costly integrations and customizations that will quickly drain any profit gained in the first place.

1. Extensiv

Best for: Multichannel inventory management

Key Features in the Order Management Solution:

• Integrated dashboard for all channels, warehouses, and products
• Every supplier found within one convenient database
• Unified dashboard for visibility into all inventory operations
• Multichannel revenue and inventory reporting
• Real-time inventory tracking for the most accurate, up-to-date data

Key Features in the Warehouse Management Solution:

• Access from any tablet, smartphone, or mobile barcode scanner
• Manage bins or SKU numbers for multiple warehouses
• Generate barcode labels and print from any location
• Real-time alerts on low inventory levels

Cost: Monthly subscription price dependent on a custom quote and package to meet your business’ individualized needs

Extensiv’s order management solution for retailers and ecommerce merchants features multichannel inventory management tools that support both multi-warehouse and multi-fulfillment workflows. The platform unifies and synchronizes retail data from online sales channels with inventory data from across your network of warehouses and fulfillment centers. The system’s digital automation technology supercharges your inventory management by seamlessly transferring inventory, sending alerts, and issuing purchase orders when stock is running low. You can also build, optimize, and breakdown bundles and kits into core components, monitor profitability by each SKU, and so much more. In other words, your sales, inventory, and analytics are all programmed within a single, comprehensive dashboard—thus removing the need for error-prone manual entry and periodic data transfers.

Furthermore, Extensiv’s warehouse management solution for private warehouses offers cloud-based barcoding solutions for ecommerce businesses struggling to secure visibility and validation on orders going out the door. Users can manage assets, bins, or SKU numbers for multiple warehouse locations, and have all of that data seamlessly sync with their inventory management system. The warehouse management platform from Extensiv gives warehouse managers the ability to manage your entire product catalog, generate barcode labels for specific products, and print directly from a smartphone or tablet running on either iOS or the android operating system. Extensiv also supports add-ons like managing all of your warehouse locations at the same time (through your mobile device) and delivering real-time inventory updates and alerts on potential problems before they occur.

When you utilize the superior performance and unrivaled integration capabilities of Extensiv Integration Manager, you can improve your supply chain management across every sales channel and warehouse. This means faster order fulfillment, fewer sell outs, and no more lost sales due to backorders or shipping delays. Businesses who team up with Extensiv benefit from real-time data and analytics across their entire product lifecycle, translating to reliability, efficiency, and more time to focus on building their brand.

2. Fishbowl

Best for: Inventory manufacturing

Key Features:

• Control manufacturing processes to prevent stockouts
• Track inventory by serial, lot, batch, and revision numbers
• Create both simple and complex bill of materials
• Readily integrates with QuickBooks and Xero

Cost: Starting at $329 per month for the Warehousing plan and $429 per month for the Manufacturing plan

Fishbowl is a manufacturing and warehouse management solution that’s specifically designed to meet the needs of small businesses and/or midsized companies. This platform offers a number of different tools to help cut down on overhead costs, automate common business processes, and ramp up efficiency to carry you through any operational challenge.

While largely recognized for its advancements in inventory control, the Fishbowl system is also quite skilled in work order management, material requirements planning (MRP), manufacturer orders, bill of materials, and more. By partnering with Fishbowl, you can reduce the total number of steps in your manufacturing process to save your company valuable time and money.

3. Zoho Inventory

Best for: Inventory control

Key Features:

• Cloud-based inventory control system
• Automatic updates across all selling channels
• Create item variants based on custom attributes
• Set reorder points and preferred vendors

Cost: Starting at $39 per organization per month for the Standard plan up to $299 per organization per month for the Enterprise plan

The Zoho Inventory system enables ecommerce sellers to control their stock levels and manage customer orders with ease. Thanks to multichannel selling, shipping integrations, and powerful inventory control features, Zoho Inventory makes it possible to optimize your extensive inventory and order management processes—from purchases, to packing, to payments.

Using this cloud-based platform, business owners can create sales and purchase orders, track product movement, and integrate with major marketplaces like Amazon, eBay, and Etsy. On top of that, Zoho Inventory allows you to simplify your workflows and ship even faster with the help of their order fulfillment solutions (i.e. common dashboard, real-time rates, and more).

4. Odoo

Best for: Comprehensive business management

Key Features:

• Integrated business applications for CRM, sales, project management, and more
• Customizable inventory and operations management
• Automated stock adjustments and real-time inventory forecasting
• Seamless integration with accounting and ecommerce modules

Cost: Use of one app is free up to $37.40 per month per user for the Custom plan with access to all apps

Odoo is a suite of open-source business applications designed to meet the needs of companies of all sizes. Its inventory management module is part of a larger ecosystem that includes CRM, sales, project management, manufacturing, and more, making it a versatile choice for businesses looking for a comprehensive solution to manage their operations. The platform's user-friendly interface and robust support community further enhance its appeal.

With Odoo, you can streamline your inventory management processes through automated stock adjustments, real-time inventory forecasting, and customizable operations management. Its seamless integration with other modules, such as accounting and ecommerce, allows for a cohesive management experience that can significantly reduce overhead and improve efficiency. Whether you're managing a small startup or a large enterprise, Odoo offers scalable solutions to grow with your business.

5. Sortly

Best for: Simplified inventory tracking

Key Features:

• Intuitive, visual inventory management system
• QR code and barcode scanning for easy item tracking
• Customizable fields, tags, and categories for detailed organization
• Low stock alerts and automated reorder points

Cost: Multiple plans available including the Free plan for personal use up to a custom-priced Enterprise plan

Sortly is a user-friendly inventory management software that stands out for its simplicity and visual approach to inventory tracking. It's designed to help businesses of all sizes keep tabs on their items with ease, using features like QR code and barcode scanning to quickly access item details. Whether you're a small startup looking to get organized or a larger operation seeking efficiency in inventory management, Sortly provides a straightforward and effective solution.

The software allows for highly customizable fields, tags, and categories, enabling users to organize their inventory in a way that makes the most sense for their specific needs. Sortly makes it easy to stay on top of stock levels with low stock alerts and automated reorder points, ensuring that businesses can act swiftly to replenish their inventory and avoid stockouts.

6. StoreAutomator

Best for: Inventory repricing

Key Features:

• Ability to create new products listings from scratch
• Enables use of alternate or alias SKUs
• Data templates and mapping for each product category
• Multi-warehouse support and shipping management features

Cost: Starting at $750 per month for the Growth plan

StoreAutomator’s mission is to help merchants boost sales and get the most out of their selling channels. This platform lets you create product listings from scratch, enjoy flexible selling for inventory with multiple SKUs, implement an inventory control system with catalog management, and adapt to various marketplaces via data templates and retail-specific field mapping.

With StoreAutomator, you’ll be able to sell your products to customers around the world using their sophisticated listing features and seamless inventory management integrations. What this means is, you can leverage this system to post product listings on Amazon, Walmart, Shopify, and more—all of which can contribute to significant growth and customer acquisition.

7. inFlow Inventory

Best for: Small to medium-sized businesses

Key Features:

• Robust inventory management with multi-location support
• Real-time inventory tracking and reporting
• Purchase order management and vendor tracking
• Integrated barcode scanning and product serialization

Cost: Starting at $110 per month for the Entrepreneur plan up to $1319 per month for the Enterprise plan

inFlow Inventory is tailored to meet the demands of small to medium-sized businesses seeking a comprehensive inventory management solution. It offers robust features such as real-time inventory tracking and reporting, multi-location support, and an integrated barcode scanning system that simplifies product management and serialization.

The platform enables efficient purchase order management, allowing businesses to maintain strong relationships with vendors by tracking orders and payments accurately. inFlow's intuitive design and detailed reporting capabilities make it easy to gain insights into inventory levels, sales trends, and overall business performance.

How to Choose the Best Inventory Management Software for Your Business

Choosing the best inventory management software for your business is a critical decision that requires careful consideration of your specific needs, goals, and budget. Here are 9 key factors to keep in mind as you evaluate your options:

1. Understand Your Inventory Needs

Before exploring software options, clearly define your inventory challenges and requirements. Consider factors such as the size of your inventory, the complexity of your supply chain, and specific features you need, like batch tracking, serial number tracking, or multichannel sales support.

2. Evaluate Software Features

Look for software that offers the features critical to managing your inventory effectively. Essential features might include real-time inventory tracking, low stock alerts, automated reordering, integration with sales channels, and detailed reporting capabilities. Make sure the software can scale with your business as it grows.

3. Integration Capabilities

The ability to integrate with other systems (e.g., accounting software, ecommerce platforms, shipping services) is crucial for streamlining operations. Ensure the inventory management software you choose can seamlessly connect with your existing ecommerce technology stack—preferably through pre-built integrations that won’t require the extra headaches that come with building custom API protocols.

4. Usability and Support

Choose software that is user-friendly and comes with robust customer support. Consider the learning curve for your team and the availability of training resources or customer service to assist with setup and ongoing use. Software with an intuitive interface can significantly reduce training time and increase adoption rates.

5. Consider Your Budget

Inventory management software comes at various price points, from free versions with basic features to comprehensive solutions that require a significant investment. Determine your budget early in the process, but also consider the return on investment (ROI) that the software can provide through improved efficiency, reduced errors, and better inventory control.

6. Read Reviews and Ask for Recommendations

Explore reviews from current users to understand the strengths and weaknesses of each option. Industry forums (such as communities on LinkedIn), social media groups, professional networks, and specialized software review sites like G2 and Capterra can also be valuable resources for getting honest feedback and recommendations.

7. Test with Demos or Trials

Take advantage of free trials or demos offered by software providers. This will allow you to test the software's functionality, evaluate its ease of use, and determine whether it meets your business needs before making a commitment.

8. Future-Proofing

Consider whether the software is regularly updated with new features and if it can adapt to future changes in your business. The best inventory management software should not only meet your current needs but also grow with your business; you don’t want to end up in a situation where you have spent a lot of time, energy, and money adopting a new system just to outgrow it in a year or two.

PRO TIP: Beyond future-proofing for your own business growth, you will want to make sure that any new software provider you choose is actively working towards leveraging the cutting edge software trends that are reshaping the industry, such as artificial intelligence (AI), machine learning (ML), and data analytics.

9. Security and Compliance

Ensure that the software you choose complies with relevant industry regulations and standards, like SOC 2 compliance, which sets the standard for protecting data from unauthorized access for Software as a Service (SaaS) providers. Additionally, check that it provides adequate data security measures to protect sensitive information.

Why You Need Inventory Management Software

Save Time on Processes and Management

Inventory management software is incredibly valuable for saving time and money, especially with tools like automation, barcode scanning, analytics, and automatic reorder points. Simply put, modern inventory management software helps you control your inventory and gives you more time to grow your brand and fulfill customer orders. Legacy ERP tools, on the other hand, are unable to support the multichannel needs of today’s ecommerce businesses (and their implementation is notably time-consuming).

Achieve Inventory Accountability Across Multiple Channels

Inventory accountability means knowing exactly where your inventory is located, when it will sell out, and when it will lose value—which is crucial knowledge for achieving long-term profitability and growth. Additionally, sellers agree that knowing where (and how) you’re making online sales is crucial to your company’s continued multichannel success.

With proper inventory and supply chain management, you can ensure you’re investing in the right areas, moving products quickly, pricing appropriately, and accounting for every item in your inventory at all times, regardless of sales channel. To achieve these objectives, inventory management software supports barcoding and RFID tags, serial number tracking, asset tracking, customization workarounds, and automatic purchasing.

Simplify Inventory Management

Sustaining efficient management without a significant investment of time can be difficult, especially if your business doesn't have the resources to hire a full-time ecommerce manager. Inventory management software helps bridge this gap between your suppliers, wholesalers, and consumers by keeping data in order, using analytics and algorithms to perform calculations, and automatically generating paperwork to reduce time-consuming activities.

Automate Orders and Shipments

Automation enables you to reduce human error, minimize costs, and cut down on the hours spent handling inventory. Once properly implemented, inventory automation can flag products that aren't selling, track pricing and profitability, activate inventory reorder alerts, and update accounting records in real-time (for the ultimate convenience and accuracy).

PRO TIP: The Orderbots in Extensiv’s order management solution are powered by your real-time, multichannel data. With these Orderbots, you can leverage ‘if-this-then-that’ logic to complete endless inventory and fulfillment tasks, like filtering orders by point of sale or requesting confirmation from a distributor.

Improve Warehouse and Inventory Control

Inventory software boosts asset management and helps you maintain control over your stock levels and warehouse locations. Without knowing what you have, where it is, and whether it's costing or making you money, you can't make informed decisions to spur growth.

Quality software provides a clear picture of your inventory (and more) by providing precise information, identifying best sellers, tracking warehousing and storage costs, and showing you which inventory to cut. What’s more, inventory management software helps scaling businesses prevent overselling, which can dramatically damage your reputation at a time when customer trust hinges on positive reviews of your product.

Enjoy All-in-One Solutions

When you find an all-in-one solution to meet multiple business needs—like order processing and shipping in addition to inventory management—it can help reduce total costs and shrink your time investment. While all-in-one systems are not always the best option, they’re often the most straightforward and cost-effective choice for large, midsize, and small businesses alike.

Grow Revenue with Better Inventory Management

Improving your inventory management allows you to increase revenue and sales because you know which products are selling and which are not. Over time, this enables you to make calculated decisions to increase the visibility of high-selling products, to improve marketing for low-selling ones, and to liquidate those that are costing you money. And, by automating your order processing and inventory updates, you can expand your ability to handle changing sales volumes without overwhelming staff.

Do Good Business

Good business management means reducing costs, increasing efficiency, and providing better service to your customers. Inventory management software makes this possible by giving you the tools you need to handle more orders, process orders quickly, offer quality service, and track inventory costs on all active items.

Get Started with Extensiv’s Inventory Management Software

While the benefits of inventory software depend on your business needs and current challenges, successful ecommerce business owners agree that the right software positively affects your capacity to scale and control your earnings with confidence and ease.

Extensiv is an all-in-one software solution that streamlines orders, fulfillment, and inventory management in a modern system built for both online-only brands, multichannel merchants selling on multiple marketplaces, and retailers with brick-and-mortar storefronts. Extensiv’s advanced inventory and order management, warehouse management, and automation work together in a streamlined, user-friendly package. Partnering with Extensiv is the best way to track inventory, add new sales channels, automate every step of the supply chain process, and strengthen your operations and relationships during any stage of growth.

Moreover, Extensiv can integrate with your favorite sales channels, CRMs, 3PLs, invoicing, or accounting software to really help you run your business from end-to-end with hundreds of pre-built integrations through Extensiv Integration Manager.

Schedule a demo today to see how Extensiv works and decide if it's a good fit for your business!