6 Best Inventory Management Systems For Ecommerce (2023 Guide)

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Inventory management systems are the lifeblood of successful eCommerce businesses, streamlining the process of tracking and managing products, orders, and stock levels.

In the fast-paced world of online shopping, having an efficient inventory management system in place is critical.

It ensures smooth operations, prevents stockouts and overstocking, and ultimately improves customer satisfaction.

In this blog post, we’ll explore the top 6 systems for 2023 that will help you optimize your business operations and stay ahead of the competition.

Let’s get started.

What to Look for in an Inventory Management System

When searching for an ideal inventory management system, it’s crucial to identify the features that will best support your eCommerce business’s growth and success.

By understanding these key features, you’ll be better equipped to choose a system that not only meets your current needs but also scales with your business in the long run.

Centralized Inventory Management: One Source of Truth

A centralized inventory management system consolidates your stock information from multiple sales channels and warehouses into one unified platform.

This centralization ensures that you always have accurate, up-to-date data, simplifying decision-making and preventing stock discrepancies.

Demand Forecasting: Anticipate Customer Needs

Advanced inventory systems use demand forecasting algorithms to help you predict future sales trends and customer demands.

By analyzing historical sales data and external factors, these systems enable more informed decisions about purchasing, stocking, and pricing.

Multi-Warehouse Support: Expanding Your Reach

As your eCommerce business grows, you may need to manage inventory across several warehouses and multiple locations.

A robust inventory management system should offer multi-warehouse support, allowing you to track stock levels, transfers, and shipments across all your locations seamlessly.

Batch and Expiration Tracking: Quality Control

For businesses dealing with perishable products or items with expiration dates, batch and expiration tracking is essential.

Inventory management systems with this feature help you monitor product shelf life, ensuring you prioritize the sale of older stock and maintain high product quality.

Inventory Reorder Alerts: Never Run Out of Stock

A well-designed inventory management system will alert you when stock levels fall below a certain threshold, allowing you to reorder products before they run out.

These timely alerts prevent stockouts, maintain customer satisfaction, and ensure you don’t miss out on potential sales.

By keeping these essential features in mind, you’ll be better prepared to find an inventory management system that aligns with your business’s unique needs and requirements, paving the way for a more efficient and successful eCommerce operation.

Essential Capabilities for eCommerce Businesses

Inventory management systems cater to various types of businesses, including brick-and-mortar retail stores, online eCommerce shops, wholesalers, manufacturers, and even restaurants and catering services.

To ensure your eCommerce business thrives, it’s vital to have an inventory system that offers the following capabilities:

Scalability: Future-Proofing Your Inventory Management Solution

As your eCommerce business grows and evolves, it’s essential to have an inventory management solution that can adapt to your changing needs.

A scalable system ensures your business remains efficient and competitive, even as you face new challenges and opportunities.

Handling an Expanding Product Catalog

A scalable inventory management system should effortlessly accommodate an increasing number of SKUs, so you can expand your product range and cater to diverse customer preferences.

The system should support bulk imports, product variations, and custom attributes, making it easy to manage a comprehensive and ever-growing catalog.

Adapting to a Growing Customer Base

As your customer base grows, the demands on your inventory management solution will become more complex.

A scalable system should be able to handle an increasing volume of orders, customer inquiries, and returns, ensuring that you can continue to provide excellent customer service and maintain customer satisfaction.

Supporting Multiple Sales Channels

As your business expands into new sales channels, such as marketplaces, social media platforms, or brick-and-mortar stores, your inventory management system must be able to integrate with these channels seamlessly.

This integration ensures consistency across all platforms, simplifies order processing, and helps you manage inventory effectively in a multichannel environment.

Optimizing Warehouse and Fulfillment Operations

A scalable inventory management solution should also support multiple warehouse locations and fulfillment options, including third-party logistics (3PL) providers.

By providing the tools to optimize warehouse operations, track inventory transfers, and manage shipments, a scalable system helps you maintain efficient and cost-effective logistics as your business grows.

With a scalable inventory management solution, you’re investing in the long-term success of your eCommerce business.

A future-proof system will support your growth and adapt to your changing needs, ensuring that you’re always ready for new opportunities and challenges.

User-friendliness: Streamlining Inventory Management for Your Team

When it comes to selecting an inventory management system, ease of use should be a top priority.

A user-friendly interface not only saves you time and effort but also empowers your broader team to work more efficiently and confidently.

Here’s how an intuitive inventory system can benefit your eCommerce business:

Simplified Navigation and Operations

A user-friendly inventory management system simplifies navigation with a well-organized layout, clear labels, and helpful tooltips.

This allows your team to find the information and tools they need quickly and easily, streamlining day-to-day operations and increasing productivity.

Reduced Training Time and Costs

An intuitive interface minimizes the time and resources required to train new team members or bring existing employees up to speed with the system.

With a shorter learning curve, your staff can become proficient with the system faster, allowing them to focus on more critical tasks and contribute to the business’s success.

Better Collaboration and Communication

A user-friendly inventory system fosters a collaborative environment by making it easy for team members to access, share, and update inventory data.

Clear and consistent communication is essential for efficient inventory management, and an intuitive system helps ensure everyone stays on the same page.

Improved Employee Confidence and Satisfaction

When your team can easily navigate and utilize the inventory management system, they’ll feel more confident in their ability to perform their tasks effectively.

This confidence can lead to higher job satisfaction and increased employee retention, ultimately contributing to a more successful and cohesive team.

By choosing a user-friendly interface, you’re not only simplifying inventory management processes but also investing in your team’s success.

An easy-to-use solution will help your team work more efficiently, reduce training time and costs, and ultimately contribute to the growth and success of your eCommerce business.

Robust Reporting Tools: Empowering Your Ecommerce Business with Data-driven Insights

Having access to comprehensive reporting tools and analytics is essential to effectively managing your inventory and making strategic decisions.

A robust inventory management system should provide insightful reports to help you optimize your business operations and stay ahead of the competition.

Here’s how powerful reporting tools can benefit your eCommerce business:

Monitoring Inventory Performance

A good inventory management system will offer detailed reports on your stock levels, turnover rates, and product performance.

This information allows you to identify fast-selling items, slow-moving products, and potential stockouts, so you can make informed decisions about purchasing, stocking, and pricing.

Analyzing Sales and Profitability

By providing sales reports and profit analysis, a robust inventory management system helps you identify trends, customer preferences, and seasonal fluctuations.

This data enables you to adapt your sales strategies, plan promotions, and optimize pricing to maximize revenue and profitability.

Improving Order Processing and Fulfillment

Reporting tools that analyze your order processing and fulfillment performance can help you identify bottlenecks and inefficiencies in your operations.

With this information, you can implement process improvements, streamline workflows, and enhance your overall customer experience.

Forecasting Demand and Planning for the Future

Advanced inventory management systems offer demand forecasting tools that use historical sales data and external factors to predict future sales trends.

This information enables you to plan for anticipated changes in demand, helping you maintain optimal inventory levels and avoid stockouts or overstocking.

Evaluating Supplier Performance

Supplier performance reports can help you assess the reliability, lead times, and costs of your suppliers.

This information is invaluable when negotiating contracts, evaluating supplier relationships, and making strategic decisions about your supply chain management.

By investing in an inventory management system with robust reporting tools, you’re empowering your eCommerce business with data-driven insights.

This feature enables you to make informed decisions that can improve your inventory management, sales strategies, and overall profitability, setting you up for long-term success.

Check out our comprehensive inventory reporting guide for a deeper look at how to manage data-driven reports in your eCommerce business.

Streamlined Inventory Management Processes: Boosting Efficiency and Accuracy

One of the main objectives of implementing an inventory control system is to simplify and streamline your inventory management processes.

A top-notch solution will help reduce the time and effort spent on tracking inventory, performing inventory counts, and maintaining optimal stock levels.

Let’s explore the benefits of streamlined inventory management processes for your eCommerce business:

Reducing Human Error

An effective inventory control system automates many tasks, minimizing manual data entry and the risk of human error.

This leads to more accurate and reliable inventory data, helping you make better-informed decisions and avoid costly mistakes, such as stockouts or overstocking.

Increasing Productivity

By streamlining inventory management processes, your team can work more efficiently, freeing up time for other important tasks.

This increased productivity can lead to faster order fulfillment, improved customer satisfaction, and ultimately, higher revenue and profitability for your business.

Optimizing Warehouse Operations

An organized and efficient inventory management process can greatly improve warehouse operations.

A top-notch inventory control system will help you optimize picking, packing, and shipping processes, reducing the time it takes to process and fulfill orders.

This not only improves customer satisfaction but also reduces labor costs and increases operational efficiency.

Facilitating Accurate Inventory Counts

Performing inventory counts can be time-consuming and prone to errors.

A streamlined inventory management system simplifies this process by providing real-time inventory data, allowing you to perform accurate counts more easily and frequently.

Regular, accurate inventory counts help you maintain optimal stock levels and avoid costly inventory discrepancies.

Enhancing Collaboration and Communication

A well-designed inventory control system fosters collaboration by making it easy for your team to access, share, and update inventory data.

This enhanced communication helps ensure that everyone is working with accurate, up-to-date information, which is essential for efficient inventory management.

By implementing an inventory control system that streamlines your inventory management processes, you’ll set your eCommerce business up for success.

Improved efficiency, accuracy, and collaboration will not only help you manage your inventory more effectively but also contribute to the overall growth and profitability of your business.

Navigating the Selection Process: Key Factors for Choosing the Right Inventory Management System

Selecting the perfect inventory management system for your eCommerce business can be a challenging task.

Keep the following factors in mind to make an informed decision that sets your business up for long-term success:

Tailored to Your Unique Business Needs

Every eCommerce business has its own set of requirements. To find the ideal system, consider your specific needs, such as the number of SKUs, sales channels, and warehouse locations, ensuring the chosen solution caters to your unique situation.

Budget Considerations: Balancing Cost and Functionality

Establish a budget for your inventory management system and carefully compare pricing plans.

Remember that the cheapest option may not always be the best fit, so weigh the balance between cost and functionality to find the most suitable solution for your business.

Customer Support: A Crucial Factor for Success

Assess the level of customer support provided by the software company. Consider factors like availability, response time, and the quality of assistance when evaluating potential systems.

A responsive and helpful support team can make a significant difference in your overall experience and help your business overcome challenges more efficiently.

Ease of Implementation and Integration

Look for a system that’s easy to implement and integrates seamlessly with your existing eCommerce platforms and processes.

A smooth transition will minimize disruptions to your business operations and allow your team to adapt quicker to the new system.

Scalability: Preparing for Future Growth

Choose an inventory management system that can scale with your business. As your company grows and evolves, your system should be able to accommodate additional products, customers, and sales channels without compromising performance or efficiency.

By carefully considering these factors, you’ll be better positioned to select an inventory management system that not only meets your immediate needs but also supports your eCommerce business’s long-term growth and success.

Top 5 Inventory Management Systems for Ecommerce

TradeGecko: Your All-in-One Solution

TradeGecko is a popular choice among eCommerce businesses, offering an all-in-one solution for inventory management, order processing, and sales channel integration.

With its user-friendly interface and powerful automation features, TradeGecko simplifies your daily operations and helps you stay on top of your inventory.

Zoho Inventory: Seamless Inventory Control and Order Fulfillment

Zoho Inventory stands out for its seamless integration with the entire Zoho suite of business apps, providing a comprehensive solution for inventory control and order fulfillment.

Its robust reporting tools and real-time stock updates make it an excellent choice for growing eCommerce businesses.

Linnworks: Automated Inventory, Listing, and Order Management

With a reputation for reliable service and robust customer support, Linnworks simplifies inventory and listing management by seamlessly exporting product information to your selling channels – eliminating manual updates that can waste hours of your time.

Linnworks also makes it easy to create if/then rules, so sellers can automate order routing and other key processes.

Cin7: A Fully-Integrated Platform for Multichannel Retailers

Cin7 is a fully-integrated inventory management system designed for multichannel retailers.

With its advanced features, such as built-in point-of-sale and warehouse management, Cin7 is the perfect solution for businesses looking to streamline their inventory processes across multiple sales channels and locations.

SkuVault: Simplify Your Warehouse Operations

SkuVault is a cloud-based inventory management system that focuses on warehouse operations, offering tools like barcode scanning, pick and pack, and quality control.

Its seamless integration with popular eCommerce platforms and marketplaces makes SkuVault an excellent choice for businesses with complex warehouse needs.

Fishbowl Inventory: Ideal for Manufacturing and Wholesale Businesses

Fishbowl Inventory is a versatile inventory management system that caters to the unique needs of manufacturing and wholesale businesses.

Its powerful features, such as bill of materials and work order management, make Fishbowl Inventory a popular choice for eCommerce businesses seeking a system that can handle both inventory and production management.

Comparison of the top 5 inventory management systems

Key Features and Capabilities of Each System

  1. TradeGecko: Offers a comprehensive solution with features like real-time inventory tracking, sales channel integration, and customizable reports.
  2. Zoho Inventory: Known for its seamless integration with Zoho apps, real-time stock updates, and advanced reporting tools.
  3. Linnworks: Automates manual tasks through a robust if/then rules engine and integrations with 100+ key ecommerce players.
  4. Cin7: Provides a fully-integrated platform for multichannel retailers, including built-in point-of-sale and warehouse management features.
  5. SkuVault: Focuses on warehouse operations with tools like barcode scanning, pick and pack, and quality control.
  6. Fishbowl Inventory: Caters to manufacturing and wholesale businesses with features such as bill of materials and work order management.

Pros and Cons of Each System



  • User-friendly interface
  • Powerful automation features
  • Wide range of integrations


  • Can be expensive for small businesses
  • Limited customization options

Zoho Inventory


  • Seamless integration with Zoho suite
  • Robust reporting tools
  • Affordable pricing plans


  • Limited integrations with non-Zoho apps
  • May require additional Zoho apps for full functionality



  • Robust rules engine, including automated order routing
  • Reliable service and syncing between channels, locations, and warehouses
  • 100+ integrations with top ecommerce tools


  • May be too advanced for a small business just getting started
  • Best for businesses managing multiple channels, tools, and locations



  • Advanced features for multichannel retailers
  • Built-in point-of-sale and warehouse management
  • Customizable workflows


  • Steeper learning curve
  • Can be costly for smaller businesses



  • Strong focus on warehouse operations
  • Seamless integration with eCommerce platforms
  • Barcode scanning capabilities
  • Robust picking and packing features for optimizing warehouse efficiency


  • Limited features for non-warehouse operations
  • Pricing may be high for very small businesses

Fishbowl Inventory


  • Designed for manufacturing and wholesale businesses
  • Handles both inventory and production management
  • Integrates with popular accounting software


  • May be too complex for smaller businesses
  • Lacks some eCommerce-specific features

Pricing Plans and Costs for Each System

  1. TradeGecko: Plans start at $39/month for the Lite plan, with higher-tier plans available for larger businesses.
  2. Zoho Inventory: Offers a free plan with limited features, and paid plans starting at $39/month.
  3. Linnworks: It’s dependent on the scale of your business and features you need – contact sales to get an estimate.
  4. Cin7: Pricing starts at $325 per month, with enterprise pricing available upon request.
  5. SkuVault: Pricing starts at $329 per month and goes up to $1,149 for the Enterprise tier.
  6. Fishbowl Inventory: Pricing starts at $4,395 for a one-time software purchase, with optional add-ons and services available.

Customer Support and User Experience

  1. TradeGecko: Provides responsive customer support via email and chat, with positive user reviews for its intuitive interface.
  2. Zoho Inventory: Offers support through email, phone, and chat, and is known for its user-friendly experience.
  3. Linnworks: Known for its robust customer support and onboarding with a large team at your disposal.
  4. Cin7: Customer support is available via phone and email, but some users report a steeper learning curve.
  5. SkuVault: Provides phone, email, and chat support, with users praising the system’s ease of use.
  6. Fishbowl Inventory: Offers phone and email support, but the user experience may be more complex due to the system’s focus on manufacturing and wholesale businesses.

How to Choose the Right Inventory Management Software for Your Business

Step 1: Assess Your Ecommerce Business Needs

To select the right inventory management system, begin with a thorough assessment of your eCommerce business needs. Consider factors like:

  • The number of products and SKUs you manage
  • The complexity of your supply chain
  • The sales channels you use (e.g., online stores, marketplaces, brick-and-mortar locations)
  • Whether you handle perishable or seasonal items
  • Your order volume and frequency
  • The size and structure of your warehouse(s)
  • Your plans for future growth and expansion

Step 2: Determine Your Budget

Next, determine your budget for an inventory management system. Consider the following:

  • Upfront costs (e.g., software licenses, hardware, setup fees)
  • Recurring costs (e.g., monthly or annual subscription fees, maintenance, updates)
  • Training costs for your team
  • Potential cost savings from improved efficiency and reduced errors

Remember that investing in the right system may lead to long-term cost savings, even if it requires a higher initial investment.

Step 3: Evaluate the Features and Capabilities of Each System

After narrowing down your list of potential inventory management systems, evaluate each system’s features and capabilities. Ask yourself:

  • Does the system offer the essential features your business needs (e.g., real-time inventory tracking, sales channel integration, order management)?
  • Is the system scalable to accommodate your business growth?
  • Can the system integrate with your existing software (e.g., eCommerce platform, accounting software, shipping solutions)?
  • Are there any advanced features that may benefit your business (e.g., warehouse management, demand forecasting, barcode scanning)?

Step 4: Consider the User Experience and Customer Support

The user experience and quality of customer support are crucial factors in your decision. To evaluate these aspects:

  • Read user reviews and testimonials to gauge overall satisfaction with the system’s interface and usability.
  • Test the system yourself during free trials or demos to assess its user-friendliness and ease of use.
  • Research the quality of the customer support provided, including their availability, responsiveness, and knowledge.
  • Check if the software company offers onboarding assistance, training resources, and a knowledge base to help you get started.

Step 5: Take Advantage of Free Trials and Demos

Make the most of free trials and demos offered by inventory management system providers. These opportunities allow you to:

  • Test the software’s features and capabilities in a real-world context.
  • Assess the user experience and ease of use.
  • Determine if the system meets your specific business needs.
  • Evaluate the quality of customer support and responsiveness.

Step 6: Seek Recommendations from Other Ecommerce Business Owners

Finally, seek recommendations from other eCommerce business owners who have experience with inventory management systems. Their insights can help you:

  • Identify potential systems you may have overlooked.
  • Learn about the pros and cons of each system from real users.
  • Discover best practices and tips for implementing and using the system.

By following these steps, you’ll be well-prepared to choose the right inventory management system for your eCommerce business, ensuring efficient inventory management and long-term success.

FAQs: Inventory Management Systems

What are the four most common types of inventory management?

The four most common types of inventory management are:

    • Periodic inventory management system

    What are the three most common inventory control systems?

    The three most common inventory control systems are:

    Can Excel be used for inventory management?

    Yes, Excel can be used for basic inventory management, but it may not provide the advanced features, automation, and integration capabilities offered by dedicated inventory management software.

    With Excel, you also have an increased risk of inefficiency or human error.

    What are the top three to five principles of inventory management?

    The top principles of inventory management include:

    1. Accurate demand forecasting
    2. Efficient supply chain management
    3. Regular inventory audits and reviews
    4. Implementing safety stock levels
    5. Continuous improvement and optimization

    What are the three categories of inventory items?

    The three categories of inventory items are:

    1. Raw materials
    2. Work-in-progress (WIP) inventory
    3. Finished goods

    What is the role of inventory management in supply chain management?

    Inventory management plays a crucial role in supply chain management by ensuring the right products are available at the right time and in the right quantities.

    Effective inventory management helps minimize stockouts and overstocking, streamlines order processing, and contributes to efficient supply chain operations.

    How does a perpetual inventory management system differ from a periodic inventory system?

    A perpetual inventory management system continuously updates inventory levels in real time as products are received, sold, and shipped.

    In contrast, a periodic inventory system updates inventory levels at set intervals, typically through manual inventory counts.

    Perpetual systems offer more accurate, up-to-date data, while periodic systems may be more prone to errors and discrepancies.

    Can a barcode system be integrated into an inventory management system?

    Yes, many inventory management systems (like SkuVault) support barcode integration.

    This feature allows you to use barcode scanners to quickly update inventory levels, track products, and streamline order processing. Integrating a barcode system can help reduce manual errors and increase efficiency.

    How can an inventory management system help with returns and exchanges?

    An inventory management system can streamline the returns and exchanges process by automatically updating inventory levels and tracking returned items.

    This feature ensures accurate stock information and simplifies managing returns, making it easier to handle customer requests and maintain customer satisfaction.

    What is the importance of demand forecasting in inventory management?

    Demand forecasting is an essential aspect of inventory management that helps businesses anticipate future sales trends and customer demands.

    By analyzing historical sales data and external factors, businesses can make more informed decisions about purchasing, stocking, and pricing. This process helps optimize inventory levels, minimize stockouts, and improve overall profitability.

    Final thoughts

    In conclusion, choosing the right inventory management system is a crucial step for any eCommerce business looking to streamline operations, optimize inventory, and grow successfully.

    By considering factors like features, budget, user experience, and customer support, you’ll be well on your way to finding the ideal system for your needs.

    It’s time to put an end to the unnecessary loss of time and money resulting from a lack of an efficient inventory management system.

    SkuVault can transform your eCommerce business by optimizing your inventory processes, minimizing human error, and maximizing productivity.

    To get a firsthand look at how SkuVault can streamline and automate every aspect of the inventory management process, check out our features page or click the button on this page to see a live demo.

    Matt Kenyon

    Matt Kenyon


    Matt has been helping businesses succeed with exceptional content, lead gen, and B2B copywriting for the last decade. When he’s not typing words for humans (that Google loves), Matt can be found producing music, peeking at a horror flick between his fingers, or spending quality time with his wife and kids.