Best eCommerce Inventory Tools for Startups

If your online startup isn’t using inventory management software to manage its stock, then it’s likely going to struggle. Proper management of inventory is one of the most important things that an eComm startup has to concern itself with – and the right solution can significantly help. Additionally, these solutions do more than just help manage inventory, but improve efficiency, reduce errors and maximize profitability. Read on to learn more and how Graphite Financial can help.

Why is eCommerce Inventory Management Essential?

Inventory management systems help strike the balance between having too much product in stock and not having enough of it in stock. To run a successful online business and ensure client satisfaction, the right products must be available in the right quantities at all times.

If too few products are in stock, orders are likely to be delayed. This can dampen consumer satisfaction and potentially even lead them to look elsewhere for a product that can be delivered more promptly. Conversely, if too many products are in stock, it’s likely to impact your cash flow and make you less flexible in adapting to any changing consumer preferences.

eComm inventory management software can help your startup track stock, manage orders and better streamline operations. Advanced solutions can even work to automate repetitive tasks, such as reordering when stock reaches predetermined levels.

Benefits of eCommerce Inventory Management Software

One of the biggest benefits of inventory management software is that it can help optimize your eComm startup by ensuring that the perfect amount of stock is at your disposal at all times. This improved accuracy of stock levels ensures that your startup is at a reduced risk of being out of stock or overstocked on items, which comes with cash flow and inventory efficiency benefits.

Some of the other key benefits associated with eComm inventory management software include:

• Enhanced productivity by reducing the risk of errors from manual processes
• Automation of repetitive tasks
• Robust inventory tracking solutions to add more transparency to where items are relative to the supply chain
• Reducing operational costs

When it all adds up, arguably the biggest benefit associated with eComm inventory management software is that it has a trickle-down effect on improved customer satisfaction. Properly managing inventory and being able to get products to consumers faster can help build trust and loyalty among a customer base.

Key Features to Look for in eCommerce Inventory Management Software

There are many inventory management solutions to select from – and the right one for your startup largely depends on your business, its goals and your personal preferences. However, there are some key attributes that you should be on the lookout for, regardless of the solution you select. These key features include:

• Real-time inventory tracking
• Multi-channel integration
• Automated reordering
• Advanced reporting and analytics
• Forecasting and industry insights
• Scalability

Top 5 eCommerce Inventory Management Software Solutions

There are several inventory management software solutions to select from, but we’ve boiled things down to our five favorite options. Here’s a look at what you need to know about Cin7, Fishbowl, Lightspeed, SOS Inventory and Zoho.

Cin7

Cin7 can integrate with more than 500 platforms, including channels such as WooCommerce, Shopify, Magnetom, eBay and Amazon. Cin7 also includes various automated features that can help streamline operations. For instance, it can automatically add inventory details, help streamline pick and pack operations, and add transparency to retail location tracking.

Fishbowl

Warehousing is made easier and more robust with Fishbowl. The program also easily integrates with QuickBooks and other programs to help provide a well-rounded inventory management solution. Some benefits of Fishbowl include a full range of functions to track items, advanced monitoring of stock levels and automated management of certain tasks.

Lightspeed

From inventory management made easy to advanced reporting and analytics, Lightspeed helps you save time on routine tasks, quickly and accurately reconcile, and also provides a seamless experience for both your startup and your customers. In addition to inventory management tools that allow it to track inventory, monitor stock levels and create product variations, advanced reporting and analytics tools allow your startup to collect data on more than just inventory, but sales and customers as well.

SOS Inventory

SOS Inventory integrates data from various departments, including production, finance, sales and more. It integrates with all the major programs and channels and can generate more than 50 types of sales reports, such as Profit & Loss reports by customer/item/job, commission report, open sale order/receipt reports, etc. to help your startup best understand its data and manage its performance.

Zoho

From warehouse to customer, Zoho helps online businesses track inventory management. Offering integration with shipping service providers, payment gateways and more, Zoho’s program also offers a customer portal that your customers can access to view and manage their transactions. The well-rounded solution offers real-time access to product and inventory data to enable faster, smarter decision-making.

Common Challenges of eCommerce Inventory Management

It’s imperative to find an inventory management system that you can trust and rely on. Otherwise, it could have dire consequences for your operations.

Too little stock and it could lead to delays in how quickly you’re able to ship orders. Too much stock and you could add to overhead and also have little flexibility when it comes to changing consumer preferences. A good inventory management solution should be able to provide an accurate snapshot of your stock at any given moment in time so you can react and adjust accordingly. Inaccuracies in stock can lead to a multitude of problems.

Additionally, good eComm inventory management can help you manage multiple sales platforms, which is another common pain point of startups that conduct business in more spaces than just their consumer website. Inventory management solutions can assist with more than just multi-sales channels, but with handling returns as well.

How to Choose the Best eCommerce Inventory Management Software

Trying to decide what inventory management software is the best for your startup? Make sure you do your homework and carefully assess several solutions before making a final decision. As you work to make your final decision, follow these tips and suggestions:

• Compare key features and determine what your “must haves” and “nice to haves” are.
• Read reviews and consider speaking with any peers on what they use.
• See if you can demo any software programs for a certain period to help with your decision.

Best Practices for Setting Up eCommerce Inventory Management

Once you decide on a solution, the next step is making it work for you. Some general best practices for setting up an eComm inventory management software include:

• Setting automated reordering thresholds on items
• Integrating all applicable sales channels
• Regularly reviewing stock data and adjusting thresholds accordingly
• Committing to regular reviews to ensure your startup is continuously improving.

Final Thoughts and Next Steps

The right inventory management software can be a major boost for your startup. It can optimize inventory levels and prevent stockouts, improve customer satisfaction and retention, and streamline your overall business. However, not all solutions are created equal – and it’s important to find the one that best suits your startup and can scale with it as it grows.

For more information on how to select the best inventory management software for your startup and to weigh some of the leading vendors, contact Graphite today. As experts in all things accounting and with experience serving eCommerce startups, we’re standing by and ready to consult with you on the best option for your startup. Contact us today to learn more.

FAQs

What is eCommerce inventory management software?

Simply put, eComm inventory management software is a program that helps eComm startups better manage their inventory. Some programs can also automate certain tasks and functions to further streamline operations.

How can inventory management software prevent stockouts?

Many software programs offer real-time inventory management features like tracking sales trends to accurately account for stock levels at all times. This visibility helps you make more informed decisions on when to replenish your inventory. Some programs can be programmed to automatically order more inventory when stock reaches certain thresholds.

Can eCommerce inventory management software integrate with multiple sales channels?

A good inventory management solution should integrate across multiple sales channels to further optimize operations and improve customer satisfaction and retention.

Is eCommerce inventory management software suitable for small businesses?

Yes – regardless of the size of your startup, if you run an online business, you perform some sort of inventory management processes that require a solution. Such a platform helps streamline operations and reduce costs.

What features should I look for in eCommerce inventory management software?

Key features to look for include real-time inventory tracking, multi-channel integration, automated reordering, advanced reporting and analytics, forecasting and industry insights, and scalability.

How much does eCommerce inventory management software cost?

It depends on the program you select and the level of service you require. Many solutions are purchased by plan type and paid for on a monthly or annual basis. Costs can range anywhere from $50 per month for a basic plan to several hundred dollars per month for a more advanced plan.