5 Best Inventory Management Software for Small Businesses

If you've been counting your stock by hand, spending countless hours wandering your warehouse or updating tedious spreadsheets, you're probably looking for a better system that shows you the items you have available at a glance. Inventory management software could be the solution to your problem.

The right software can streamline operations, keep your customers happy and help you make sound business decisions. But, there are countless options on the market to research and compare. With that in mind, we've done some of the legwork for you so that you can improve your inventory management as quickly as possible.

Read on to see our recommendations for the best inventory management software for small businesses.

Our Top Picks for the Best Inventory Management Software

• Ordoro — Best Budget-Friendly Option
• Lightspeed Retail — Best for Retail
• Fishbowl Advanced — Best for Manufacturing
• Sortly — Most User-friendly
• Brightpearl — Best Onboarding and Customer Support

Best Inventory Management Software Reviews

Why we chose this software: Ordoro may be a great e-commerce solution for startups because businesses can get started for free, and its paid plans are affordable. Plus, while the software won’t break the bank, it still has some impressive inventory management features.

Ordoro allows you to:

• See inventory data from all of your sales channels and warehouses in one dashboard

• Verify sales orders with barcode scanning

• Send tracking numbers automatically

• Build and sell product bundles

• Get low-stock alerts

• Automatically route orders to drop shippers and suppliers

• Send purchase orders with a few clicks

• Set up automation rules for shipping (i.e., all orders under a certain weight get shipped via a particular carrier)

• Integrate popular applications such as Shopify, Amazon, Stripe, FedEx, UPS, USPS, Quickbooks and more

• Email customers return merchandise authorizations (RMAs) and return shipping labels

• Create branded emails, shipping labels and packing lists

• Access vital company information, such as sales numbers and profit margins, via in-app reports

In addition, as an Ordoro customer, you can get up to an 89% discount on shipping with select carriers and up to 60% off shipping insurance via the company’s partnership with Shipsurance.

Ordoro offers a 15-day free trial and three different plan options:

Ordoro’s biggest drawback is that it doesn't yet have a mobile app. Plus, it’s hard to find online customer reviews about the product.

Pro tip: If you’re running your business on a shoestring budget, you may want to learn about the best free accounting tools.

Why we chose this software: Lightspeed for Retail lets you sell on multiple channels (online and offline) and manage inventory across multiple locations. Purchasing the software also gives you access to its POS hardware.

You can use Lightspeed for Retail on your computer or mobile device to do things like:

• Track and count your inventory

• Add products with SKUs and serial numbers (digital and physical goods)

• Sell on social media, Amazon, Google Shopping, Walmart and eBay

• Generate barcodes

• Make bulk pricing changes

• Set reorder points (to avoid dangerously low stock levels)

• Send purchase orders

• Fulfill customer orders

• Print shipping labels

• Dropship goods (if you connect your store to a partner like Alibaba)

• Save up to 50% on shipping costs

While Lightspeed for Retail integrates with other accounting and e-commerce applications, these are lesser-known solutions. Fortunately, customers can use the company’s open API to develop connections with the software of their choice.

Lightspeed offers a 14-day free trial and four plan options:

Using the company's payment processing software, Lightspeed Payments, will get you a discount on your monthly software subscription. However, you’ll have to pay a per-transaction processing fee (2.6% plus $0.10).

All four plans come with the core program, but you’ll need to purchase the Standard or Advanced plan if you want to integrate your accounting system or sell items online. The Advanced plan also features enhanced reporting capabilities.

The Enterprise plan, which caters to high-volume sellers, includes everything in the Advanced plan plus perks like preferred Lightspeed Payments rates and personalized consultation services.

Lightspeed’s customer support is excellent. Company representatives are available 24/7 via phone, email or online chat. The firm also provides a dedicated Account Manager and one-on-one onboarding.

Why we chose this software: Fishbowl Advanced caters to manufacturing businesses by supporting the entire production process.

With this software, you can:

• See and control inventory across multiple locations

• Track production from receipt of raw goods to delivery of finished products

• Scan barcodes to import and export items

• Transfer stock between warehouses

• Create customized bills of materials

• Schedule production and manage work orders

• Capture labor costs

• Manage vendors and purchase orders

• Sell products online (including bundles)

• Recommend substitute products to avoid missed sales

• Manage order fulfillment via your warehouse, dropshipping partner or third-party logistics (3PL) company

• Print shipping labels

• Email packing lists to customers

• Manage product returns

• Build custom reports

In addition, Fishbowl Advanced integrates with many other applications you may use in your business, including Amazon, DHL, eBay, FedEx, Hubspot, Quickbooks, Salesforce, Shopify, USPS, UPS Ready, Walmart, WooCommerce and Xero.

The company also offers fast implementation (four to six weeks, on average) and hands-on customer support. As a Fishbowl customer, you’ll receive a dedicated Account Manager and ongoing training opportunities. You can also reach customer service via phone, email or online chat.

Our biggest knock against this software provider is that it doesn’t publish pricing information online, so you must contact its sales department for a quote. However, a Fishbowl representative told us the company offers a 14-day free trial.

Why we chose this software: Sortly offers a simple and intuitive inventory management system for business owners who don’t need the bells and whistles of more complex software.

While Sortly doesn’t facilitate sales, track shipments, serve as a customer relationship manager (CRM), integrate with other apps or have available add-ons, it does allow you to:

• Upload existing inventory data into the system

• Count inventory with in-app barcode and QR code scanner

• Organize your stock by location, type and other criteria

• Satisfy customer demand by giving you low-stock alerts

• Access reports about your inventory

Sortly offers a 14-day free trial and four plan options:

*Entries are unique items in your inventory or folders you use to organize your stock. You can save up to 60% if you pay for a year’s worth of service at a time.

The software’s greatest drawback is its limited customer support options. Unless you’re an Enterprise-level customer, you’ll have to consult articles on the company’s website, use its customer support chatbot or contact the company via email. And even if you qualify for phone support, you must schedule conversations in advance.

Pro tip: Since Sortly only handles inventory management, you may want to look into the best invoicing and billing software or the best accounting software for small businesses.

Why we chose this software: Brightpearl offers a superior onboarding experience and top-notch support. Customers benefit from a dedicated Customer Success Manager, new-user training, 24/7 assistance, ongoing business consulting, and access to an online learning platform.

In addition, the software has an integrated POS system that syncs your inventory across all of your sales channels, making it a good potential solution for retailers and wholesalers. It also helps you:

• Sell products to customers in a physical or online store.

• Create product bundles.

• Offer assembled products and track raw materials through the build process.

• See real-time order statuses in your dashboard.

• View data about best-selling products, customer acquisition costs, customer lifetime values, industry benchmarks and more.

• Forecast demand for your products.

• Create purchase orders quickly.

• Automatically denote backorders in the system.

• Scan product barcodes to receive goods, pick orders or count items.

• Set up automation for warehouse transfers, shipping, invoicing and more.

• Reward your top customers with free shipping or special gifts.

• Manage your suppliers.

• Process product returns.

Plus, Brightpearl integrates with many popular applications, such as Amazon, Shopify, Walmart, WooCommerce, Square, Stripe, FedEx, DHL, UPS, USPS, Shipstation, Quickbooks, Xero and Sage. (Sage owns Brightpearl.)

Unfortunately, the software provider doesn’t offer a free trial. However, you can see the inventory management solution in action if you book a demo. Then, if the product seems like a viable option for your business, you can ask Brightpearl for a price quote.

Other companies we considered

Zoho Inventory

Why we didn’t choose this software: While Zoho Inventory is a popular software solution, we couldn’t overlook the company’s poor Trustpilot rating. Plus, if you have a problem on the weekend, you’ll have to wait until Monday to get assistance.

Orderhive

Why we didn’t choose this software: We think Orderhive by Cin7 could be a great solution for some businesses, but not iPhone or iPad users. In addition, the software gets pricey at the upper tiers, and you may need to pay extra for the customer and technical support you need.

inFlow Inventory

Why we didn’t choose this software: inFlow Inventory has a lot of potential for manufacturing firms. However, its cost may be prohibitive if you’re on a tight budget. Plus, it's hard to find product reviews from other customers online.

Square for Retail

Why we didn’t choose this software: Square for Retail could be an excellent fit for brick and mortar and online shops alike. However, the software won’t work on Android devices. Plus, we felt that other inventory management software geared towards retail businesses offered more features.

Netsuite

Why we didn’t choose this software: We like that Netsuite is a full enterprise resource planning (ERP) solution comprised of several modules. However, the company isn’t transparent about its pricing and doesn’t offer a free trial. Plus, you may have to pay an additional fee for support services.

Best Inventory Management Software for Small Businesses Guide

The following guide provides additional insight into how inventory management software works, how much it costs and how to choose the right option for your small business.

Main things to know before choosing an inventory management software

No two inventory management software are alike. Some are basic while others are feature-rich, and some are best suited for specific industries, like retail or manufacturing. So, before choosing a solution, you should carefully assess your business needs.

Critical aspects to consider include:

• The features that are essential to your business

• Whether the software integrates with other programs and apps you use

• The number of users the plan can support

• How user-friendly the software is and whether it can grow with your business

• Your monthly budget and any additional services or hardware you may have to purchase

• Whether the company has a mobile app

• The type and level of customer support included with the software

• Whether other business owners endorse the software

In short, select an inventory management software that caters to your specific circumstances and makes your business more efficient and your life easier.

What is the average cost of inventory management software?

The cost of inventory management software varies widely. If you’re just launching your business or need very few features, you may be able to procure software for little or no money per month.

But, if you have a large-scale operation or want more advanced capabilities, you could end up paying hundreds of dollars per month — or more. Plus, some companies charge an additional fee for ongoing technical and customer support.

Pro Tip: If you need to implement an inventory tracking and management system but are short on funds, you may want to check out the best small business loans.

How does inventory management software work?

At its core, inventory management software tracks the stock you receive and sell. It automatically adjusts inventory levels when you receive products and materials from your suppliers or when customers purchase goods from your physical or e-commerce store. If the software is designed for manufacturing companies, it may also track the components that go into your product throughout the manufacturing process.

Inventory management software lets you quickly see which items you need to order more of (low stock) and which you may need to put on clearance (overstock). That way, you can spend more time growing your business and less time counting goods in your warehouse or storeroom.

Note: Many inventory management solutions are cloud-based. If you want to host more of your company’s data online, you might want to check out the best cloud storage for small business.

Is it worth having inventory management software?

Only you can determine whether an inventory management solution is a worthwhile investment. Consider whether the software can help you save time and energy, reduce errors, increase sales, provide better customer service and ultimately help you grow your business.

How We Chose the Best Inventory Management Software for Small Businesses

When choosing the best inventory management software for small businesses, we considered criteria such as:

• Features: We favored feature-rich software that can scale with any business. One exception to the rule was Sortly, which we selected as an option for small business owners looking for a simpler, user-friendly solution.

• Value: We favored inventory software that provide a good value for the price. We also factored whether the company offered a free trial or a mobile application.

• Company reputation: We evaluated each company’s reputation based on customer reviews.

• Customer support: We gave companies offering multiple forms of customer support extra points, especially those that provide onboarding experience or are available 24/7.

Summary of the Best Inventory Management Software for Small Businesses of 2023

• Ordoro — Best Budget-Friendly Option
• Lightspeed Retail — Best for Retail
• Fishbowl Advanced — Best for Manufacturing
• Sortly — Most User-friendly
• Brightpearl — Best Onboarding and Customer Support|