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Best Inventory Management Software for Small Businesses

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Growing an ecommerce business isn’t easy.

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Illustration of the Ordoro allocation, picking and packing workflow

SHIPPING

Fulfill orders quickly and accurately across all channels.

  • Score heavily discounted shipping rates
  • Improve accuracy with barcode scanning and order verification
  • Automate workflows with rules and presets
  • Save time with batch processing
  • Boost your brand by customizing labels and packing lists

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Illustration of an ipad with Ordoro's inventory management feature on the screen.

INVENTORY

Track inventory precisely across all channels and warehouses.

  • Automatically track and sync your inventory levels
  • Gain visibility with low-stock alerts
  • Easily bundle products together with kitting
  • Save time with automation rules, tags, and allocation
  • Stay in control with warehouse transfers, POs, BOM, and MOs

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Illustration of Ordoro's automated order routing feature sending two orders to two different suppliers.

DROPSHIPPING

Consolidate, route, and oversee all your dropship orders.

  • Hands-free dropshipping with automatic order routing
  • Increase precision with bulk updates
  • Save time with automatic tracking writeback
  • Keep things error-free with automation rules
  • Set up Vendor Portals for better supplier hand-offs

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“I estimated Ordoro saves me over 20 hours a month by streamlining basic tasks.”

Jeff B.

Best Inventory Management Software For Small Businesses

For small business owners, effective inventory management is crucial for maintaining a balanced supply chain, ensuring customer satisfaction, and optimizing operational costs. With advances in technology, various inventory management software solutions have emerged, catering to the distinct needs of small enterprises. Here's an in-depth look at some of the best options, organized by the questions you need answers to.

What is the Best Inventory Management Software for Small Businesses?

Identifying the best inventory management software can greatly depend on the specific needs and scale of your business. However, some software stands out for their features, ease of use, and customer satisfaction.

  1. Ordoro

Why It Stands Out: Ordoro is highly recommended for its comprehensive features that include inventory tracking, barcode scanning, and multi-channel sales support.

Customer Feedback: Hundreds of happy Shopify merchants use Ordoro, testifying to its reliability and effectiveness.

  1. TradeGecko

Why It Stands Out: It offers robust features like sales order management, B2B commerce functionalities, and financial integrations with QuickBooks.

  1. Square

Why It Stands Out: Known for its affordability and integration with other products, it is a versatile choice for small businesses.

Which Inventory Method is Best for Small Businesses?

When choosing an inventory method, small businesses should consider the nature of their products and sales patterns. The two most commonly used inventory methods are:

  1. First-In, First-Out (FIFO):

Benefits: Ensures that older stock is sold first, reducing the risk of obsolescence.

Use Case: Ideal for businesses dealing with perishable goods or products with a short shelf life.

  1. Last-In, First-Out (LIFO):

Benefits: Can be beneficial for tax purposes during times of inflation.

Use Case: Suitable for industries where products do not perish, such as raw materials or commodities.

Which Software is Recommended Particularly for Inventory Management?

For businesses that prioritize inventory management, specific software can offer specialized functionalities. Here's a recommendation:

  1. Ordoro

Special Features: Advanced dropshipping capabilities, automated purchase orders, and robust reporting.

Why It’s Recommended: Particularly good for e-commerce businesses looking to streamline operations.

  1. TradeGecko

Special Features: Cloud-based system, comprehensive analytics, and multi-location support.

Why It’s Recommended: Effective for businesses with complex inventory management needs.

What is the Most Commonly Used Inventory System?

The choice of an inventory system can affect operational efficiency. The most commonly used systems are:

  1. Ordoro

Popularity: Ordoro is especially favored in the e-commerce field.

Benefits: Centralizes orders and inventory from multiple sales channels, making management simpler.

  1. TradeGecko

Popularity: Widely used by small to medium-sized businesses.

Benefits: Offers QuickBooks integration, which is a plus for businesses already using QuickBooks for accounting.

Best Inventory Management Software for Small Businesses Free

If you're on a budget, several free inventory management software options can still provide robust functionalities. Here are a few options:

  1. inFlow On-Premise (Free Version)

Features: Basic stock management, order tracking, and reporting capabilities.

Recommendation: Good for very small businesses or startups.

  1. Zoho Inventory (Free Plan)

Features: Supports up to 20 online and offline orders, 20 shipping labels, and one warehouse.

Recommendation: Suitable for businesses just starting out.

Inventory Software for Small Business Free

Many software solutions come with a free tier or trial period to help small businesses manage their inventory without a significant initial investment.

  1. Ordoro

Free Trial: Offers a limited-time free trial for new users.

Why It’s Recommended: Test out all features comprehensively before committing.

  1. Odoo (Community Edition)

Features: Modular approach, open-source, supports multiple businesses.

Recommendation: Good for tech-savvy users who can leverage open-source flexibility.

Zoho Inventory

Zoho Inventory deserves a mention due to its features and affordability:

  1. Integration: Seamlessly integrates with other Zoho applications like Zoho CRM, Zoho Books, and even third-party platforms like Shopify and Amazon.
  2. Ease of Use: User-friendly interface, making it accessible for small businesses without dedicated IT staff.
  3. Automation: Automates workflows to streamline operations, such as reorder notifications and package tracking.

Inventory Software for Small Business with Scanner

An inventory management system that supports barcode scanning can greatly enhance efficiency. Here are some top choices:

  1. Ordoro

Features: Supports barcode scanning, automatic inventory updates.

Why It’s Recommended: Simplifies the inventory process and reduces human errors.

  1. TradeGecko

Features: Advanced barcode scanning, mobile app available.

Why It’s Recommended: Suitable for businesses with multiple sales channels and complex inventory needs.

Barcode Inventory System for Small Business Free

Free barcode inventory management systems can offer an excellent starting point for small businesses:

  1. ABC Inventory Software

Features: Free version provides support for barcode scanning, inventory tracking, and order management.

Recommendation: Ideal for very small businesses or those who are just testing the waters.

  1. PartKeepr

Features: Another open-source solution with barcode scanning capability.

Recommendation: Good for tech-savvy users and small-scale businesses.

External Resource:

ABC Inventory Software

Small Business Inventory Management Excel

Excel can be a powerful tool for small-scale inventory management due to its flexibility and ubiquity:

  1. Features: Supports basic formulas for inventory tracking, offers templates that can be customized.
  2. Use Cases: Ideal for businesses with straightforward inventory tracking needs and very limited budgets.

Example:

Template for Inventory Management:

Columns: Item ID, Item Name, Quantity in Stock, Cost per Unit, Total Value (Quantity x Cost)

Basic Formula: =SUM(Product((Quantity in Stock) x (Cost per Unit)))

External Resource:

Excel Inventory Management Template

Inventory Management Software for Small Business Free Download

Free downloadable inventory software can be a significant asset for small businesses looking to manage their inventory offline or without recurring costs.

  1. Stockpile by Canvus Applications

Features: Offers inventory tracking, reporting, and is completely web-based but free to use.

Recommendation: Suitable for relatively simple inventory management needs.

  1. RightControl Lite

Features: Free to download, supports barcode scanning, and multi-user access.

Recommendation: Good for small businesses looking for basic yet functional inventory management.

External Resource:

RightControl Lite

Top 5 Inventory Management Software

After considering various factors like ease of use, features, customer reviews, and cost, here is a list of the top 5 inventory management software for small businesses:

  1. Ordoro

Special Features: Offers a comprehensive set of inventory management tools tailored for e-commerce businesses.

Customer Feedback: Hundreds of happy Shopify merchants can’t be wrong.

  1. TradeGecko

Special Features: Advanced inventory management integrated with accounting software for end-to-end business management.

  1. Square

Special Features: Affordable and integrates well with other products, making it an all-in-one solution.

  1. inFlow Inventory

Special Features: User-friendly, with both free and premium versions to suit businesses of different sizes.

  1. Orderhive

Special Features: Suitable for businesses with complex inventory needs, offering cloud-based solutions and robust analytics.

Choosing the best inventory management software involves considering the specific needs of your business and testing a few options to see which one fits best. Ordoro stands out as a highly customizable and user-friendly option, especially favored by e-commerce businesses. Take advantage of free trials and basic plans to find the perfect match that will help streamline your inventory processes and contribute to your business’s success.