Top Inventory Management Software For Ecommerce
Managing and tracking the inventory of an e-commerce business is quite challenging, especially with the fast growth of this business. With the expansion of the company, it becomes more difficult. In terms of supply chain management, inventory management is one of the most important aspects, no matter how large or small it is, and it has to be taken care of.
In what ways should this be accomplished? A large inventory of products is a common characteristic among all leading e-commerce platforms like Amazon, Flipkart, eBay, etc. Generally, the value of a company's stock represents one of the largest assets that the company owns. Utilizing the best inventory management software for ecommerce will allow them to increase sales and increase customer satisfaction.
What Is Inventory Management Software?
With an inventory management system for ecommerce, you can keep track of how your business's goods move from place to place. It is used to support the purchasing of products, track inventory levels, and check inventory availability by analyzing sales trends.
The service optimizes the entire transaction process between ordering from your vendor and delivering to your customer. The service maps a product's entire journey from production to delivery.
8 Important Features Of Best Inventory Management Software For Ecommerce
Consider the following features when choosing an inventory management software to automate and streamline your business:
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Tracking inventories
Monitoring your inventory level is the main focus of an inventory system. It ought to be able to keep track of all orders you receive, fill orders, and when you need to replenish your stocks.
You can track your stock with many inventory tools. Choosing a system that meets your needs is crucial; not all systems are the same. In particular, barcode scanning is very popular and highly desired.
Data can be exchanged electronically by scanning barcodes. A barcode contains data that connects to something, like a purchase order or lot number. Once the data is scanned, the system displays it and allows further actions to be taken. In addition to RFID tags and batch and lot tracking, serialization is another useful tracking tool.
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An easy-to-use interface and good integration
The best way to obtain all your project functions from one source is not possible. In an ideal world, any inventory management system would be able to integrate tightly with other applications or systems to provide automated data sharing. This would eliminate the need for synchronization.
In the same vein, you can use billing software solutions to update your inventory management system and prepare invoices automatically. The system can either be seamlessly integrated into a document management system or a standalone system with all your information centrally located.
The best inventory management software for ecommerce comes with a user-friendly interface to make it more accessible to users. Depending on what user-friendliness means to you, most people might not mean the same. However, the system should have a comprehensive training module that will fully teach you how to utilize the program. By doing this, new employees will quickly learn the system any time they join the team.
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Flexibility
It is feasible and expensive to change systems as your organization grows. You will find that business keeps expanding regardless of whether you are a newly founded company or an established business. Therefore, the system must be scalable in order to keep up with the growth of the business. The system should support upgrades and a larger amount of data. Furthermore, it will disrupt the current workflow and result in a number of difficulties. Thus, a flexible and scalable system is a wise investment. We can say the best inventory management software for ecommerce is an investment that will prove to be financially beneficial in the long run.
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Detailed Reports and Analyses
Reports are an important feature in any software. The ability to generate reports ensures that an organization's workflow is efficient. Reports should be able to be compiled in real-time, as well as being able to be customized to meet your needs. Sales and purchase reports are sure to feature sales data, order history, and invoicing details in their standard reports. As you know, there are many different types of reports that your company may require in addition to the report mentioned earlier.
The best inventory management software for ecommerce should be capable of analyzing data and estimating future trends. For example, it can assist with discovering sales trends by creating a report regarding what products are most profitable. Additionally, the system should allow you to view more than just the quantity of stock remaining for each item. Making smart business decisions is based on the insights you gain from your data analysis.
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Replenishment of stock by automated means
Do you wish to wait until your inventory has been completely exhausted before making a purchase? When the stock of an item falls below a predetermined level, inventory management should automatically create a purchase order.
Your software will automatically generate orders with the correct quantity when you reach the minimum level. Once you approve a purchase order, your product will be shipped. This is a must-have feature to ensure that you don't run out of stock. Additionally, the system makes certain there is no overstocking in your inventory and protects you from unnecessary capital expenditure.
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Categorization of products
Many eCommerce stores offer various types of products. In order to track inventory effectively for multiple products at the same time, it must be able to track multiple products simultaneously. Products need to be easily migrated between groups and channels, easily searchable, and can easily be filtered by name, price, brand, type, popularity, date, etc.
Further, the classification includes this feature's stock level, product history, and expiration date. In this way, it is possible to forecast demand accurately and place the appropriate orders with vendors.
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Systems hosted on-premises or in the cloud
One of the most important factors in determining whether a system will be deployed on-premises or in the cloud is whether it is going to be installed on-premises or online in the cloud.
On-premises software is installed on your own computer and server, while cloud-based software works over the Internet. Cloud-based software is accessible via the Internet using an internet browser. There are also hybrid deployment options, in which cloud software is hosted on a company's own servers.
Cloud-based services are becoming more popular despite their respective pros and cons. Implementing inventory management using the software as a service is cheaper than on-premise. In part, this is thanks to SaaS being offered as a service. A lot depends on how many users are involved and how much data is stored in the cloud on a daily basis. In addition, it takes much less time to implement than on-premises solutions. Choosing the right solution is a matter of preference.
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Service with a high level of reliability
We tend to overlook one of the most important aspects of business, customer service. When choosing a system, you must make sure that your data is secure and that every calculation is accurate. Also, ensure that you test customer service before signing up. Depending on the system, you may encounter problems or issues in the future. Thus, it is crucial that a solid support team is in place to ensure that all your needs are met.
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Cybersecurity today
Inventooly's best inventory management software for e-commerce's biggest flex is its security features. Data security may actually be a legal requirement, depending on where you operate and what type of business you own. Modern businesses should understand that data security is just common sense. Ensure that your software provider provides a 2-factor authentication method and meets encryption standards.
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An application for mobile sales
Staff on the shop floor like these since they are able to answer questions about what is in stock without having to return to a terminal. They are ideal for sales personnel on the go, as well. A mobile app enables sales representatives to place big sales orders with full visibility into lead times and fulfillment capability.
What are the Benefits of Using Inventory Management Software for Ecommerce?
The usage of inventory management software by big ecommerce titans has been widely reported. If you are still unsure, here are a few reasons you might want to consider using the inventory system.
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Become more efficient and productive
The utilization of an inventory management system offers the most significant advantage of streamlining and automating tasks. This software manages everything from inventory management to shipping orders and delivering products. Furthermore, these technologies allow you to eliminate manual processes, which allows your staff to concentrate on the most crucial tasks of the business. Therefore, as a result of this, your business becomes more productive and efficient.
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Profits are maximized by improving sales
The installation of the inventory management system has been reported to have resulted in significant increases in sales closings. A correct inventory keeps you from losing any customers, so you don't lose any business. When it comes to reporting out-of-stock products, this software is a great way to ensure you never run out of stock and minimize human error. In this manner, you maximize your profit by increasing sales productivity.
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Improves customer satisfaction
Inventory management systems have the advantage of assisting businesses to keep customers satisfied. Personalized service can be provided, and accurate responses can be given whenever necessary. Access to real-time data at any time will provide you with a high degree of customer satisfaction. Some systems will notify your customer if the item is back in stock, while others will enable you to track the status of shipped items.
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A centralized storage system
Your inventory management software is equipped with a central database that stores all the information regarding your stock. Therefore, all your orders can be easily managed from one location, and you can direct products to the right recipients. Additionally, you can be provided with accurate information about all your products and services if you have a proper warehouse management system in place. That way, you can promptly provide information about your orders to your client.
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Implementation of Back-Office System Integration
Using quality inventory management, back-office applications, such as billing software and financial management software, are used. These all can easily be integrated with the stock data management program. The purchase of an open-source system enables you to connect to an unlimited number of service providers using custom connections. These systems also tend to come with the best technical support available.
6 Mistakes to Avoid in Site Inventory Management for an Ecommerce Site
When looking for the best inventory management software for ecommerce, keep these mistakes in your mind.
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Insufficient training
A typical inventory management system is cumbersome, unintuitive, and difficult to use. A medium or large business will save money by avoiding spending time and resources on training employees on the new software.
It is possible that critical pieces of data can easily be lost if something goes wrong, and they do not know how to fix it. Companies are able to save time that would otherwise be devoted to educating employees on the job. This, combined with low employee turnover, translates to a small number of employees who are capable of using the software.
Small businesses have difficulty learning and mastering older inventory management systems. A person who works long hours to build his or her brand will find learning a system to be a waste of time.
Many small businesses and startups are unable to devote the time or resources necessary to complete comprehensive training. Moreover, conventional inventory systems come with many features and can handle situations that most small companies do not.
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Inventory checks not performed
A full year of work is required to verify one's physical inventory against the system, and due to the day-long process, most companies dedicate a whole year to it each year. The decision to cease operations for an extended period is obsolete and ineffective.
Counting the number of cycles is another option. Another way of putting it is that annual inventory inspections have ceased to be conducted. Numerous studies show it doesn't disrupt everyday operations, and it's not as time-consuming to track calories. Moreover, errors are more likely to be discovered because the checking intervals are short. Daily or weekly inspections will make it less difficult for you to deal with your inventory.
With the best inventory management software for ecommerce, the process becomes
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The number of storage facilities is too high
Depending on the purpose, storage facilities can be warehouses, retail shops, or supply depots. The number of products being stored increases as the number of storage locations available for each product increases. Consequently, there may be an increase in inventory without an increase in the level of service offered. The effects of stock reserves can be as great as 50 percent or more on inventory, even in a retail environment.
In light of this, what do you think the reasons are behind such a situation? There are four reasons:
- The container is mostly or entirely made up of cardboard, pallets, and other assorted objects.
- There is a greater chance of a management mistake when many inventory storage locations exist.
- There is an incorrect distribution of stock when there is a scarcity
- Not all of the stock is displayed.
It is important to focus your sales efforts on your most affordable products to maximize sales. Decentralizing inventory is only recommended for goods with long lead times, products with high sales fluctuation (which is difficult to predict), and items with a high transportation cost.
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An insufficiently organized storage system
You are wasting time and money by forcing your employees to travel across the store or by forcing them to go around barriers to locate your items. If you are planning on using physical storage system, then you should ensure that you are using an automated warehouse inventory system that will ensure maximum efficiency. For it to be effective, workers must place things they frequently need in places where they can reach them easily.
For the most necessary items, there are specific areas designated for them. Workers should be able to reach items they need most frequently between their shoulders and hips, and they should rarely need to bend over or reach up.
Slowly moving products should be stored in pallets or cartons, while goods that move quickly should be stored in bins: use section, row, rack, and shelf systems to identify, classify, and organize objects.
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Workstations are not close to warehouses
The world's largest supply chain business works directly with inventory or on the same floor as inventory. Work on lines in the program does not replace Excel's visuals. Like when you have too much room, efficiency and not comfort become factors.
There were some companies whose headquarters were in the center of the city, but their warehouses were outside the city. Unless you check your inventory regularly, you're disconnected from reality and you're reminded of how much you have, especially if it is stuff that doesn't move fast.
Maintain a healthy working relationship by scheduling regular meetings with your teams. If you have the option, stand rather than sit close to your inventory, as it's impossible to assess the relative significance of this criterion. Make sure your relationship with your team stays healthy if this isn't the case.
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Availability of real-time reporting is limited
Keep in mind the best inventory management system for ecommerce comes with real-time reporting. The real-time reporting methods used by leading multichannel commerce companies allow them to make more visibility available. Your company must collect real-time information about inventory to take advantage of these opportunities for process improvements. The business processes and orders will be analyzed to maximize efficiency within your organization.
Conclusion
To determine the best inventory management software for ecommerce, you should first consider your needs then weigh the alternatives. When you select an e-commerce platform that is right for your business, make sure it grows. We have compiled a list of 10 useful features to look for when you decide to invest in an inventory system.