17 Best Inventory Management Software for Small Businesses Reviewed In 2024
Best Inventory Management Software for Small Businesses Shortlist
Here's my pick of the 10 best software from the 17 tools reviewed.
Our one-on-one guidance will help you find the perfect fit.
Inventory management software is essential for small businesses. With the right tool, teams can improve stock control and boost operational efficiency. However, finding the right software can be challenging with many available options.
Using my experience with ecommerce management software, I tested and compared several of the top inventory management software for small businesses available. From there, I compiled my results into detailed reviews to help you find the best software for your needs.
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Best Inventory Management Software for Small Businesses Summary
This comparison chart summarizes pricing details for my top inventory management software for small businesses selections to help you find the best one for your budget and business needs.
| Tools | Price | |
|---|---|---|
| Zoho Inventory | From $39/month | Website |
| Lightspeed | From $59/user/month (billed annually) | Website |
| inFlow Inventory | From $49.80/user/month | Website |
| Asset Panda | Pricing upon request | Website |
| Sortly | From $39/user/month | Website |
| SOS Inventory | From $64.95/month | Website |
| Backbar | From $79/location/month | Website |
| Craftybase | From $24/month | Website |
| Katana | From $179/user/month (billed annually) | Website |
| Xero | From $1.40/month | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose Inventory Management Software for Small Businesses
It’s easy to get bogged down in long feature lists and complex pricing structures. To help you stay focused as you work through your unique software selection process, here’s a checklist of factors to keep in mind:
| Factor | What to Consider |
| Scalability | Ensure the software can grow with your business, handling more inventory as you expand. |
| Integrations | Check if it integrates with other tools your team uses, like accounting or CRM systems. |
| Customizability | Look for options that let you tailor features to fit your specific business needs. |
| Ease of Use | Choose software with an intuitive approach to reduce training time for your team. |
| Budget | Compare pricing plans to find one that aligns with your financial constraints. |
| Security Safeguards | Ensure it offers strong data protection to keep your business information secure. |
| Support | Consider the availability of customer support to assist you in case of issues. |
| Reporting | Look for detailed reporting features to help you analyze and optimize inventory levels. |
Best Inventory Management Software for Small Business Reviews
Below are my detailed summaries of the best inventory management software for small businesses that made it onto my shortlist. My reviews offer a detailed look at the key features, pros & cons, integrations, and ideal use cases of each tool to help you find the best one for you.
Zoho Inventory is a cloud-based inventory management solution designed for small to medium-sized businesses. It helps manage orders, track inventory, and fulfill sales across multiple channels.
Why I picked Zoho Inventory: Zoho Inventory excels in multichannel sales management, making it ideal for businesses selling on various platforms. It offers features like order management and real-time inventory tracking to keep your operations smooth. It also supports multiple shipping integrations, enhancing its multichannel capabilities. Additionally, the software's automation features further simplify the sales process for your team.
Standout features & integrations:
Features include automated workflows that reduce manual tasks, batch and expiry date tracking for better inventory control, and advanced reporting tools to analyze sales data.
Integrations include Shopify, Amazon, eBay, Etsy, WooCommerce, QuickBooks, Xero, Stripe, PayPal, and UPS.
Pros and cons
Pros:
- Supports multiple shipping integrations
- Batch tracking capabilities
- Strong multi-channel sales support
Cons:
- Requires setup for optimal use
- Limited customization options
Lightspeed is a retail-focused inventory management and point-of-sale (POS) system designed for small to medium-sized retail businesses. It helps track inventory, manage sales, and optimize store operations.
Why I picked Lightspeed: Lightspeed is designed for retailers needing integrated POS systems, with real-time inventory tracking and sales management. Its analytics features offer insights into sales trends and inventory turnover, supporting its retail POS focus. Additionally, the software’s customizable reporting helps your team make data-driven decisions, while effective customer data management strengthens its retail-focused approach.
Standout features & integrations:
Features include detailed analytics that help you understand sales performance, customizable sales reports for better insights, and inventory tracking that ensures you never run out of stock.
Integrations include Shopify, QuickBooks, Xero, WooCommerce, BigCommerce, Mailchimp, Vend, Sage, SAP, and Magento.
Pros and cons
Pros:
- Integrated POS features
- Customizable sales reports
- Real-time inventory tracking
Cons:
- Requires training for new users
- Initial setup complexity
inFlow Inventory is an inventory management software designed for small retail businesses. It helps you manage stock levels, sales, and purchasing, offering a centralized solution for retail operations.
Why I picked inFlow Inventory: inFlow Inventory is built for small retail businesses that need simple stock management. With barcode scanning and order management, it covers retail-specific needs. You can also track sales and inventory in real time, while the software’s customizable reporting helps you make informed business decisions based on your current financial situation.
Standout features & integrations:
Features include a mobile app that lets you manage inventory on the go, customizable dashboards to fit your business needs, and purchase order management to simplify restocking processes.
Integrations include QuickBooks Online, Shopify, Amazon, WooCommerce, Xero, Zapier, Square, eBay, BigCommerce, and Salesforce.
Pros and cons
Pros:
- Real-time sales tracking
- Customizable dashboards
- Mobile app for inventory management
Cons:
- May need additional setup time
- Can be overwhelming initially
Asset Panda is a cloud-based asset management tool for businesses needing detailed asset tracking. It suits organizations managing physical assets across multiple locations efficiently.
Why I picked Asset Panda: Asset Panda helps with asset tracking, making it great for businesses that need precise inventory management. It offers custom reporting and mobile access to help your team manage assets easily. Additionally, the software’s barcode scanning improves the tracking process for accuracy, while the audit trail feature adds transparency and accountability to your asset management.
Standout features & integrations:
Features include customizable fields that let you tailor asset data to your needs, audit trails to maintain asset history, and mobile access that allows you to manage assets on the go.
Integrations include Zapier, Google Workspace, Dropbox, Salesforce, QuickBooks, Zendesk, Box, Freshdesk, Microsoft OneDrive, and ServiceNow.
Pros and cons
Pros:
- Barcode scanning integration
- Customizable data fields
- Comprehensive asset tracking capabilities
Cons:
- Requires training for effective use
- Complexity in initial setup
Sortly is visual inventory management system for small to medium-sized businesses. It helps you track and manage inventory with an emphasis on visual simplicity and ease of use.
Why I picked Sortly: Sortly offers a unique approach to inventory management with its emphasis on visual organization. You can create custom tags and labels, which simplifies identifying and categorizing items. The software also includes a QR code scanner, enhancing its visual management capabilities. Along with these features, Sortly provides access to inventory data through a mobile app, making it accessible on the go.
Standout features & integrations:
Features include a simple drag-and-drop interface that makes organizing inventory easy, a QR code generator for quick item tracking, and photo-based inventory logging that provides visual references for items.
Integrations include Shopify, QuickBooks, Xero, Dropbox, Google Drive, Slack, Amazon, Etsy, eBay, and Square.
Pros and cons
Pros:
- Mobile app for on-the-go access
- QR code scanning capabilities
- Visual organization with photo logging
Cons:
- Not suited for large inventories
- Limited advanced features
SOS Inventory is a cloud-based inventory system that helps small businesses manage their stock, sales, and order processes. It’s designed for users who need detailed inventory tracking across multiple locations, making it a practical solution for businesses looking to expand their operations.
Why I picked SOS Inventory: SOS Inventory supports multi-location tracking, helping your team manage stock efficiently across different sites. It offers order management and barcode scanners to keep your inventory processes accurate. SOS Inventory also integrates with QuickBooks, connecting your accounting and inventory item data, while real-time inventory updates help you make quick, informed decisions.
Standout features & integrations:
Features include multi-location inventory management that lets you track stock across various sites, real-time inventory updates to prevent stockouts, and customizable reporting to give you detailed insights. It also supports order tracking and fulfillment, which helps streamline your workflows.
Integrations include QuickBooks, Shopify, WooCommerce, Amazon, eBay, Xero, Square, Magento, Stripe, and PayPal.
Pros and cons
Pros:
- Detailed and customizable reporting options
- Real-time updates for inventory accuracy
- Supports multi-location stock management
Cons:
- Interface can feel outdated
- Limited offline capabilities
Backbar is an inventory management software tailored for bars and restaurants. It helps manage stock levels, track usage, and optimize ordering processes to reduce waste and improve efficiency.
Why I picked Backbar: Backbar is built for bar inventory management, making it great for tracking liquor and beverage stock efficiently. The software’s key features, like recipe costing and automated ordering, help to set it apart from general inventory tools. With Backbar, your team can monitor usage trends to keep stock levels optimized. It also helps identify cost-saving opportunities by analyzing consumption patterns.
Standout features & integrations:
Features include recipe costing that helps you determine the profitability of your drinks, automated ordering to streamline restocking, and usage tracking to monitor inventory levels in real-time.
Integrations include Toast, Square, Clover, QuickBooks, Xero, Shopify, Lightspeed, Revel Systems, Upserve, and Aloha POS.
Pros and cons
Pros:
- Tracks inventory usage in real time
- Automated ordering
- Recipe costing for profitability insights
Cons:
- Basic reporting capabilities
- Limited to bar and restaurant use
Craftybase is an inventory management tool tailored for small businesses, particularly those selling handmade products. It helps manage raw materials, track inventory, and calculate product costs.
Why I picked Craftybase: Craftybase is built for handmade product sellers who need to track materials and finished goods efficiently. It includes cost tracking and batch management, which are important for small-scale producers. Plus, the software’s automatic cost calculations help you price your handmade items accurately, while its ingredient-level tracking is useful for detailed inventory management.
Standout features & integrations:
Features include inventory tracking that provides detailed insights into your stock levels, cost of goods sold calculations that help you price products correctly, and batch tracking to monitor production runs.
Integrations include Etsy, Shopify, Square, WooCommerce, PayPal, eBay, Amazon, BigCommerce, Wix, and QuickBooks.
Pros and cons
Pros:
- Batch tracking capabilities
- Ingredient-level inventory management
- Detailed cost-tracking features
Cons:
- Some features may need extra training
- Limited customization options
Katana is cloud-based inventory management software that provides real-time visibility and control over inventory processes. It’s designed for manufacturing teams to manage production, sales, and inventory efficiently.
Why I picked Katana: Katana is built for manufacturing teams, offering production planning and real-time inventory insights. It connects with platforms like Shopify and QuickBooks, keeping your focus on manufacturing. You can also manage both sales and purchase orders in one place, making it a practical choice for production-focused businesses.
Standout features & integrations:
Features include real-time inventory insights that keep your team updated, production planning to help schedule and prioritize tasks, and end-to-end traceability for better quality control.
Integrations include Shopify, WooCommerce, QuickBooks, Xero, Zapier, Etsy, BigCommerce, Amazon, and eBay.
Pros and cons
Pros:
- Cloud-based flexibility
- Multichannel sales support
- Real-time production schedule
Cons:
- Occasional sync delays
- Limited offline access
Xero is an online accounting software that caters to small businesses needing inventory management capabilities. It combines financial management with inventory tracking to streamline business operations.
Why I picked Xero: Xero integrates accounting and inventory management, which is perfect for businesses looking to manage finances and stock in one place. The software offers features like invoicing and bank reconciliation, which enhance its accounting focus. It also provides real-time financial data, allowing your team to make informed decisions. Additionally, the inventory tracking features within the accounting platform adds efficiency to your operations.
Standout features & integrations:
Features include real-time financial reporting that gives you insights into your business's health, customizable invoicing to fit your brand's style, and expense tracking that simplifies managing business costs.
Integrations include PayPal, Stripe, Shopify, HubSpot, Square, Vend, Mailchimp, Gusto, Expensify, and WorkflowMax.
Pros and cons
Pros:
- Customizable invoicing options
- Real-time financial data access
- Integrated financial and inventory management
Cons:
- Limited offline functionality
- Learning curve for non-accountants
Other Inventory Management Software for Small Businesses
Here are some additional inventory management software for small businesses options that didn’t make it onto my shortlist, but are still worth checking out:
- QuickBooks Online
For small business accounting
- Fishbowl
For QuickBooks integration
- Inventory Planner
For inventory replenishment planning
- NetSuite
For enterprise resource planning
- WhereFour
For food and beverage tracking
- Cin7
For multichannel stock management
- Netstock
For demand forecasting insights
Inventory Management Software for Small Businesses Selection Criteria
When selecting the best inventory management software for small businesses to include in this list, I considered common buyer needs and pain points like managing stock levels and system integration. I also used the following framework to keep my evaluation structured and fair:
Core Functionality (25% of total score)
To be considered for inclusion in this list, each solution had to fulfill these common use cases:
- Track inventory levels
- Manage purchase orders
- Process sales orders
- Generate inventory reports
- Support barcode scanning
Additional Standout Features (25% of total score)
To help further narrow down the competition, I also looked for unique features, such as:
- Demand forecasting
- Multi-location management
- Mobile access and app support
- Customizable dashboards
- Integration with accounting software
Usability (10% of total score)
To get a sense of the usability of each system, I considered the following:
- Intuitive user interface
- Easy navigation
- Minimal learning curve
- Responsive design
- Customizable user settings
Onboarding (10% of total score)
To evaluate the onboarding experience for each platform, I considered the following:
- Availability of training videos
- Interactive product tours
- Access to webinars and tutorials
- Step-by-step setup guides
- Supportive onboarding team
Customer Support (10% of total score)
To assess each software provider’s customer support services, I considered the following:
- 24/7 support availability
- Multiple support channels
- Access to knowledge base
- Response time to queries
- Quality of user assistance
Value For Money (10% of total score)
To evaluate the value for money of each platform, I considered the following:
- Competitive pricing structure
- Features included in basic plans
- Cost of add-ons or upgrades
- Discounts for long-term subscriptions
- Return on investment potential
Customer Reviews (10% of total score)
To get a sense of overall customer satisfaction, I considered the following when reading customer reviews:
- Overall satisfaction rating
- Commonly reported issues
- Praise for specific features
- Feedback on ease of use
- Customer service experiences
Trends In Inventory Management Software for Small Businesses
In my research, I sourced countless product updates, press releases, and release logs from different inventory management software for small businesses. Here are some of the emerging trends I’m keeping an eye on:
- AI-Driven Analytics: Many vendors are incorporating AI to provide predictive analytics, helping businesses forecast demand and optimize inventory levels. This trend is useful for small businesses looking to minimize stockouts and overstock situations.
- Sustainability Tracking: A growing number of tools now include features that allow businesses to track their carbon footprint and manage eco-friendly practices. This is important for businesses aiming to align with consumer demand for sustainable operations.
- Blockchain for Transparency: Some software providers are integrating blockchain technology to enhance transparency and traceability in supply chains. This trend is gaining traction as businesses seek to improve trust and accountability in their processes.
- IoT Integration: Inventory tools are starting to use IoT devices to offer real-time tracking of assets. This is particularly relevant for small businesses needing up-to-the-minute data on inventory movement and location.
- Augmented Reality (AR) Support: Vendors are exploring the use of AR for warehouse management, allowing users to visualize and organize inventory more efficiently. This trend is novel, offering a futuristic approach to handling stock and layouts.
What Is Inventory Management Software for Small Businesses?
Inventory management software for small businesses is a tool designed to help track and manage stock levels efficiently. Small business owners, inventory managers, and operations staff use these tools to maintain optimal stock levels and ensure smooth operations.
Key features like AI-driven analytics, sustainability tracking, and IoT integration assist with demand forecasting, eco-friendly practices, and real-time inventory tracking. These tools help businesses optimize inventory processes, lower costs, and enhance customer satisfaction.
Features of Inventory Management Software for Small Businesses
When selecting inventory management software for small businesses, keep an eye out for the following key features:
- Inventory Tracking: Allows businesses to monitor stock levels in real time, helping prevent stockouts and overstock situations.
- Order Management: Streamlines the process of managing in-person and online sales, ensuring efficient order fulfillment.
- AI-Driven Analytics: Provides predictive insights into inventory trends, enabling better demand forecasting and inventory planning.
- Sustainability Tracking: Helps businesses monitor their environmental impact and manage eco-friendly practices.
- Barcode Scanning: Simplifies the process of updating inventory records, reducing manual data entry errors.
- IoT Integration: Offers real-time tracking of assets through connected devices, providing up-to-date inventory locations.
- Customizable Dashboards: Allows users to tailor their interface to display relevant data, improving workflow efficiency.
- Multi-Location Management: Supports inventory oversight across different locations, ideal for businesses with multiple warehouses.
- Recipe Costing: Useful for businesses in the food and beverage industry to determine the profitability of their products.
- Mobile Access: Enables users to manage inventory on the go, providing flexibility and convenience.
Benefits of Inventory Management Software for Small Businesses
Implementing inventory management software for small businesses provides several benefits for your team and your company. Here are a few you can look forward to:
- Improved Accuracy: With features like barcode scanning and IoT integration, businesses can reduce errors in inventory records and ensure data accuracy.
- Cost Savings: AI-driven analytics and sustainability tracking help businesses forecast accurately and reduce waste, leading to cost savings.
- Enhanced Efficiency: Order management and customizable dashboards streamline operations, saving time and improving productivity.
- Better Decision-Making: Real-time inventory tracking and AI-driven insights provide the data needed to make informed business decisions.
- Scalability: Multi-location management supports business growth by allowing for effective inventory oversight across multiple sites.
- Increased Flexibility: Mobile access offers the convenience of managing inventory from anywhere, adapting to the dynamic needs of your business.
- Environmental Responsibility: Sustainability tracking allows businesses to monitor and reduce their environmental impact, aligning with eco-friendly goals.
Costs and Pricing of Inventory Management Software for Small Businesses
Selecting inventory management software for small businesses requires an understanding of the various pricing models and plans available. Costs vary based on features, team size, add-ons, and more. The table below summarizes common plans, their average prices, and typical features included in inventory management software for small business solutions:
Plan Comparison Table for Inventory Management Software for Small Businesses
| Plan Type | Average Price | Common Features |
| Free Plan | $0 | Basic inventory tracking, limited users, and basic reporting. |
| Personal Plan | $5-$25/user/month | Inventory tracking, order management and limited integrations. |
| Business Plan | $30-$100/user/month | Advanced inventory tracking, multi-location support and custom dashboards. |
| Enterprise Plan | $100+/user/month | Full feature access, custom integrations, and dedicated support. |
Inventory Management Software for Small Businesses FAQs
Here are some answers to common questions about inventory management software for small businesses:
How can inventory management software help my small business?
Inventory management software helps small businesses by improving accuracy in tracking stock levels, reducing human errors, and providing real-time data on inventory. This means your team can make informed purchasing decisions, avoid overstocking or stockouts, and ultimately save money. Additionally, many systems offer features like sales tracking and reporting, which can help you understand your business trends and customer preferences better.
How does inventory management software help manage cycle counts?
This software helps businesses perform cycle counts by ensuring that inventory levels are accurate. It can quickly identify discrepancies in stock and guide you to investigate specific items or locations. Regular cycle counts help maintain accurate stock levels throughout the year.
What are the benefits of using inventory management software?
Using inventory management software can improve accuracy, reduce costs, and improve decision-making. These systems streamline order processing and inventory tracking, helping reduce errors. Real-time data access also provides insights for informed decisions.
Can inventory management software integrate with other business tools?
Yes, many inventory management tools offer integrations with accounting software, e-commerce platforms, and point-of-sale systems. These integrations enhance your business operations by consolidating data and streamlining workflows across different areas of your business.
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