How to choose the right inventory management software for your eCommerce business

Running an eCommerce business without a solid inventory management system is like navigating a ship without a compass. Poor inventory tracking leads to stockouts, lost sales, and excessive holding costs. In fact, retailers collectively lost $1.75 trillion in revenue due to inventory distortion in 2023.

The right inventory management software can streamline your stock tracking, prevent costly mistakes, and optimize your entire supply chain. But with so many options, how do you choose the best one? Let’s break it down.

Key features to look for in eCommerce inventory management software

Not all inventory software is created equal. When evaluating your options, prioritize these essential features:

• Real-time inventory tracking: Avoid overselling or running out of stock by keeping tabs on your stock levels across all sales channels.
• Automated restocking: A demand-based restocking tool ensures you reorder products at the right time, reducing cash flow strain.
• Multi-channel integration: Sync inventory across platforms like Shopify, Amazon, eBay, and Walmart to prevent discrepancies.
• Forecasting and analytics: AI-driven inventory forecasting helps you predict demand and adjust stock accordingly.

Scalability and customization: Your software should adapt as your business grows, offering custom features for your unique needs.

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The role of a restock planner in preventing stockouts

One of the biggest inventory challenges eCommerce businesses face is stockouts, which cost retailers nearly $1 trillion annually. An inventory restocking tool, like 8fig’s Restock Planner, helps solve this by using demand forecasting to suggest optimal reorder times.

Unlike traditional inventory systems, which rely on static reorder points, a marketplace inventory planner factors in seasonality, sales velocity, and supply chain fluctuations – basically, everything you need to take into consideration if you’re an eCommerce seller. This means you get data-driven restocking recommendations, keeping your store stocked without over-investing in inventory.

Comparing the best inventory software for eCommerce

Choosing the best inventory tool depends on your business size, sales volume, and budget. Here’s a quick comparison of the different types:

Tips and hacks: How to choose the right inventory software for your business

To find the best inventory software for your eCommerce store, follow these expert tips:

Assess your needs: Are you managing a small store with low SKU counts, or do you need enterprise-level inventory automation? Define your core needs before comparing options.

Look for demand-based restocking: Traditional software relies on set reorder points, but a demand-driven restock planner like 8fig’s can optimize stock levels based on actual sales patterns.

Prioritize real-time syncing: If you sell across multiple marketplaces, ensure the software updates inventory in real-time to avoid overselling.

Compare costs beyond the sticker price: Some platforms charge hidden fees for integrations and additional users, so you should definitely factor these into your decision.Test before you commit: Most inventory tools offer free trials or demos. Take advantage of these to test the software’s usability.

Data-backed insights: The impact of effective inventory management

Still unsure if investing in inventory software is worth it? Consider these stats:

• Retailers can reduce stockouts by 30% with AI-powered inventory tracking.
• A study highlighted that up to 60% of retailers’ inventory records are inaccurate, leading to significant revenue losses.
• Companies that excel in inventory management can outperform their peers by 73% in revenue growth and 12% in profitability. 

Clearly, the right inventory tools can make a massive difference.

Finding the right fit for your store

Choosing the best inventory software for your eCommerce business comes down to finding a solution that fits your needs, integrates with your platforms, and helps you optimize stock levels. If you’re looking for a demand-driven restocking tool to avoid stockouts while optimizing cash flow, 8fig’s Restock Planner is an absolute game-changer.

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Have article ideas, requests, or collaboration proposals? Reach out to us at editor@8fig.co – we’d love to hear from you.

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