
A Quick Look At Some Inventory Management Tools You Might Consider
For a small e-commerce business, the best inventory management system will depend on factors like your business size, budget, and the level of automation you need. That said, here are a few top inventory management systems that are highly recommended for small e-commerce businesses:
1. TradeGecko (Now QuickBooks Commerce)
- Best for: E-commerce businesses looking for an all-in-one solution.
- Features:
- Inventory tracking across multiple channels (e.g., Shopify, WooCommerce, Amazon).
- Order management, customer relationship management (CRM), and invoicing.
- Integrates with accounting software like QuickBooks and Xero.
- Multi-warehouse support.
- Pros: Intuitive interface, great for scaling, strong integrations.
- Cons: Some users report it can be a bit pricey for very small businesses.
2. Shopify’s Built-In Inventory System
- Best for: Businesses already using Shopify as their e-commerce platform.
- Features:
- Simple, easy-to-use interface for tracking stock levels.
- Real-time inventory updates across all sales channels.
- Notifications for low stock or out-of-stock products.
- Integrates seamlessly with Shopify’s other sales tools.
- Pros: No extra cost if you’re already on Shopify, highly user-friendly.
- Cons: Limited features compared to standalone inventory systems.
3. Zoho Inventory
- Best for: Small businesses that need robust features at a reasonable price.
- Features:
- Multi-channel sales tracking, order management, and purchase order management.
- Barcode scanning, multi-location inventory tracking.
- Integrations with platforms like Amazon, Shopify, eBay, and more.
- Pros: Affordable, great for small businesses, strong integration with Zoho suite.
- Cons: Interface can feel a bit overwhelming at first.
4. Cin7
- Best for: Growing small businesses looking for a full-featured inventory and order management solution.
- Features:
- Cloud-based with multi-location and multi-channel support.
- Integrates with Shopify, Amazon, eBay, and other major platforms.
- Built-in POS system, barcode scanning, and automatic stock updates.
- Pros: Comprehensive, easy integration with various platforms.
- Cons: On the pricier side compared to others.
5. ShipBob
- Best for: Businesses looking for a fulfillment solution integrated with inventory management.
- Features:
- Inventory management, order fulfillment, and shipping all in one.
- Real-time inventory tracking, automatic stock updates.
- Access to a network of warehouses for faster shipping.
- Pros: Great for e-commerce businesses needing fast shipping and order fulfillment.
- Cons: More expensive; better suited for businesses with moderate to high order volume.
6. Square for Retail
- Best for: Businesses that also have a physical retail presence.
- Features:
- Track inventory in real time across multiple locations.
- Manage stock, orders, and customers all from one platform.
- Integrates with Square’s POS system.
- Pros: Easy to use, ideal for businesses with both online and offline sales.
- Cons: Limited features compared to more specialized systems.
7. Sellbrite
- Best for: Businesses selling across multiple online marketplaces.
- Features:
- Multichannel inventory management (Amazon, eBay, Etsy, Walmart, etc.).
- Automatic synchronization of stock levels across all sales channels.
- Order management, reporting, and shipping integration.
- Pros: Great for multichannel sellers, easy to set up.
- Cons: Limited to e-commerce; not a full-scale solution for all business needs.
Key Considerations:
- Ease of use: Look for something simple if you’re new to inventory management.
- Scalability: Choose a system that will grow with your business, especially if you plan to expand to multiple sales channels or locations.
- Integrations: Ensure the system integrates with your e-commerce platform, accounting software, and any other tools you use.
- Cost: Some systems can get pricey as you scale, so balance features with your budget.
If you’re just starting, Shopify’s built-in system or Zoho Inventory are affordable and user-friendly. For those with more complex needs or higher growth potential, QuickBooks Commerce or Cin7 could be a better fit.
What platforms are you currently using (like Shopify, WooCommerce, etc.)? That might help narrow it down further!

Should You Choose A Perpetual or a Periodic System?
The choice between a periodic or perpetual inventory system largely depends on the size, complexity, and volume of your business. Here’s a breakdown of both systems to help you decide which one might be best for your e-commerce business:
Periodic Inventory System
What it is:
- The periodic system involves taking physical counts of inventory at regular intervals (like monthly, quarterly, or yearly) to update your records. In between those counts, you don’t track inventory changes in real-time.
- Typically used for smaller businesses or those with low transaction volumes.
Pros:
- Cost-effective: Because it doesn’t require constant monitoring, periodic systems are usually cheaper to set up and maintain.
- Simple: Less technical expertise is needed. You just count inventory periodically and update the records manually.
- Less labor-intensive: You only need to do a full inventory count at specific intervals.
Cons:
- Less accurate: Because stock levels are only updated periodically, you won’t have real-time insights. This can lead to discrepancies in stock levels.
- Limited visibility: You might not know when products are low or out of stock until the next physical count, which can result in missed sales or overstocking.
- Manual process: The periodic system requires more human involvement for stock counting and updating records, which can lead to human error.
When to use:
- Small businesses or businesses with low inventory turnover (e.g., if you don’t have many sales).
- If your business has a low volume of transactions and can afford to take inventory counts periodically without risking stockouts.
- Businesses looking for cost-effective, low-tech solutions.
Perpetual Inventory System
What it is:
- The perpetual system continuously updates inventory records in real-time as sales, purchases, or returns occur. It’s typically automated through an inventory management system or integrated with your e-commerce platform.
- Most modern e-commerce businesses use perpetual systems to track inventory at all times.
Pros:
- Real-time tracking: Stock levels are updated automatically with every transaction (sale, return, purchase), so you always know exactly how much you have in stock.
- Improved accuracy: Reduces human errors and discrepancies since the system updates inventory in real-time.
- Better decision-making: Gives you immediate insights into trends, demand, and stock levels. This can help prevent overstocking, stockouts, and optimize purchasing decisions.
- Streamlined processes: Especially useful if your business uses multiple sales channels (e.g., online stores, marketplaces, etc.), as it keeps everything synchronized.
Cons:
- Cost: Perpetual systems require more investment in software or systems to integrate with your platform. Some systems have ongoing subscription fees.
- Complexity: Setting up and maintaining the system may require more expertise or technical support.
- Higher resource needs: It often requires more time and effort to ensure the system is integrated properly and synced with other platforms.
When to use:
- Medium to large businesses or businesses with high transaction volume.
- If you need real-time data to make quick decisions about purchasing, stocking, and sales.
- For businesses that operate across multiple sales channels and need to keep stock synchronized across all platforms.
Which Should Your Business Use?
For most small e-commerce businesses, the perpetual inventory system is usually the better choice, especially if you have:
- Multiple sales channels (Shopify, Amazon, Etsy, etc.), which require real-time updates.
- High transaction volume, meaning you’re selling products quickly and need to stay on top of stock levels.
- A need for accurate and instant insights into stock and sales data to avoid stockouts, overstocking, and missed sales.
However, if your business is just starting, has low sales volume, or is focused on a single sales channel and can handle occasional physical stock counts, the periodic system might be sufficient, and it’s much cheaper.
A Hybrid Approach? Some small businesses use a hybrid approach: they track high-turnover products with a perpetual system and handle lower-turnover items using periodic counts. This way, they balance cost and accuracy based on the importance of each product line.
Your Specific Situation:
- If you’re using something like Shopify or WooCommerce, both support perpetual systems (with integrations or plugins).
- If you’re still just getting started and aren’t selling a huge volume yet, a periodic system might feel simpler and more budget-friendly.
Does your business rely on real-time stock data, or do you mostly track things manually at set intervals? That can be a big clue.