
Shopify
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Ecommerce inventory management software helps online retailers maintain and ship physical products. This type of software automates routine reporting tasks so companies can rely less on employees physically taking stock to get accurate inventory numbers. Various departments can then access this reporting data to manage their operations. Ecommerce inventory management software helps optimize production, warehousing, and distribution based on real-time inventory changes and online transactions. Employees can perform procurement, fulfillment, and shipping in a single system.
Here’s what we’ll cover:
Ecommerce inventory management software provides detailed stock reporting for online retailers. This type of software can automatically initiate warehouse packing and shipping the moment an online sale is made. Inventory counts are updated to reflect receiving, sales, and returns, often more reliably and frequently than human stock counts.
Some ecommerce inventory management software also includes predictive modeling functionality to anticipate inventory needs in advance.
Most ecommerce inventory management software options offer similar features. Here are some of the most popular:
Inventory reporting | Track products in your inventory by type, option, size, colorway, SKU, expiration date, etc. |
Inventory optimization | Balance inventory stock to meet customer demand, capacity limits, and revenue goals. Synchronize inventory across digital channels such as Amazon, Shopify, eBay, etc. |
Product identification | Add product barcodes and serial numbers into the system to improve tracking analytics. |
Alerting | Receive notifications about new online orders, returns, stock depletion, shipping problems, and other ecommerce inventory scenarios that arise. |
Inventory auditing | Enter inventory counts into a searchable repository to help calculate inventory shrinkage and predict future losses. |
Purchase order management | Create, ship, and track purchase orders. Optimize shipping logistics based on weight, volume, cost, and other variables. |
Supplier | Manage supplier relationships by recording interactions, costs, and transactions. |
Ecommerce inventory management software is similar to other software categories, such as enterprise resource planning (ERP) software. Choosing the right solution starts with understanding how dedicated ecommerce inventory management software helps online retailers.
Ecommerce companies: Businesses that exclusively sell products online only need to manage warehouse inventory, and some never even see their products because their suppliers ship straight from the factory. This means ecommerce companies can choose affordable, lightweight ecommerce inventory management software.
Brick-and-mortar retailers: Companies that sell products in physical stores have unique software needs compared to ecommerce retailers. For example, physical retailers may only ship products to consumers infrequently but need a more robust point of sale (POS) than an online form or gateway. Generally, brick-and-mortar retailers may get more out of general inventory management software solutions.
Hybrid retailers: Selling products both online and in physical stores is complex. Advanced ecommerce inventory management software can help handle the unique needs of such hybrid retailers. If you're this type of buyer, look for ecommerce inventory management software that also explicitly lists features that benefit brick-and-mortar stores.
Enterprises: Large ecommerce companies with complex supply chains need tools beyond what most ecommerce inventory management software can offer. If you're in this category, consider looking for an industry-specific ERP instead.
Ecommerce inventory management software offers two key benefits over general inventory management solutions.
Consumer pressure to understand supply chains is bringing advanced supply chain management functionality to ecommerce inventory management software. Consumers increasingly demand products that are safe, sustainable, and ethically produced. Ecommerce companies can provide stronger assurances about product integrity and fair labor practices when they have robust supply chain intelligence. This intelligence used to be almost exclusively available in expensive ERP and supply chain software, but ecommerce inventory management platforms are beginning to offer some of the same features.
Mobile devices are replacing traditional barcode scanners. Older barcode scanners can only do one thing: scan barcodes. Mobile devices, however, can give employees additional abilities, such as note-taking and NFC scanning. Software companies can also upgrade scanning apps to improve security and function over time.