Top-rated inventory management systems for your Shopify store
May 17, 2022
May 17, 2022
Learn about the top-rated inventory management systems for your Shopify store based on ratings from sellers like you!
Managing inventory has never been an easy task. It wasn't easy back when Gram and Gramps managed their brick-and-mortar grocery store, and with ecommerce, this process has just intensified.
How do you keep track of your inventory and costs when you are selling on Shopify and Amazon or Etsy? How do keep track of your quantity in stock when your online sales are constantly moving?
The complexity of managing this process has only increased over time, but, on the plus side, the number of options available to help you manage the process has also increased.
In this blog, we'll discuss the top-rated inventory management systems (IMS) for Shopify stores to help you automate and streamline this complicated process. The list below is based on ratings and reviews from Shopify sellers just like you.
Managing your inventory to make sure you always have enough stock to meet customer demand, and
Accounting for your inventory costs and COGS properly so you get your P&L and balance sheet in shape, accurately report your taxes, and correctly manage your inventory expenses.
We also cover all the key terms you should know in order to properly calculate the ending inventory balance for your Shopify store.
We continued our inventory series with our blog on Shopify Inventory Management Tools and Tips. In that blog, we discuss the pros and cons of self-managing your inventory through a Google Sheet or Excel tracker versus using an IMS. We also cover when to consider if a switch is right for your business and what features to look for in any tracker or IMS.
You can also check out that blog for a free Google Sheet inventory tracker template.
Exciting new product update: Finaloop recently launched our real-time COGS sync with Shopify. It syncs your COGS directly to your P&L with each Shopify order and streamlines this massive headache for ecommerce founders.
What is an IMS?
IMS is software that can help you manage various aspects of your inventory and supply chain by integrating across online stores, marketplaces, and warehouses to sync inventory updates in real-time.
For example, let's say you sell emoji T-shirts on Shopify and Amazon. You carry multiple types of designs - happy face, sad face, party emoji, the kissing face, you even sell the emoji wearing a mask. Each product comes in multiple sizes and colors.
You decide it's time to find an IMS that can integrate to both your Shopify and Amazon stores and your warehouse. This way, when there is a sale on Shopify of a party emoji T-shirt in red, size M, it reduces the count of this product for both Shopify and Amazon.
The IMS can alert you when it's time to reorder more T-shirts based on forecasted sales. Some systems even automate the purchase order to your vendor.
There are lots of IMS out there each with its features, pros, and cons. The key is finding the one that checks off all the boxes on your wish list.
Is an ERP system the same as an IMS?
An enterprise resource planning system (ERP), like NetSuite, covers 3 main aspects of your company's operations:
1. Order management
3. Inventory management
Whether or not you need an ERP system to best manage your ecommerce brand depends a lot on the structure and operations of your company. In our experience, since most ERP systems are not tailored for ecommerce, the investment required to set up, customize, and maintain an ERP system is often not worth the benefit when there are better options out there that require less cash investment, less manual work, and less ongoing maintenance.
On the order management side, Shopify has significantly expanded their capabilities and Shopify brands can generally get better order management by using Shopify instead of all the complexities and costs that go into creating a separate system.
On the accounting side, ERP systems like NetSuite cover the accounting for ecommerce by creating a lot of customizations that are not native to the system. It creates a lot of complexities and must be maintained on a consistent basis by a bookkeeping specialist (this is why there is a large implementation charge and why the process takes a lot of time to set up). Working with an ecommerce-focused accounting service like Finaloop, can significantly streamline this process and reduce the related costs.
Lastly, on the inventory management side, while an ERP system can cover this, in our experience, you'll be able to get a more ecommerce-tailored and streamlined inventory management setup by working with an inventory management system over an ERP. It would give you a better result for less complexity and less money.
Best inventory management systems for Shopify brands
Connects directly to Shopify, Amazon, and other sales platforms to sync your cost of goods sold directly to your P&L in real-time
Integrates with a full accounting platform, replacing your bookkeeper, accounting software, and ecommerce integrations
Tracks the status of all your inventory-related purchases
Tracks your real-time inventory balance
Tracks your cost per unit on a SKU-by-SKU basis
Overall rating on Shopify: 5.0 stars
Cost: Finaloop has plans starting at $65 a month, depending on your annual revenue. Offers a 14-day free trial.
2. Stock Sync
Connect to multiple sources including suppliers, warehouse management systems, or dropshipper to update inventory feed automatically
Manage multiple feeds in a single platform
Update Shopify inventory with any available connection method
Customize reports for your needs
Overall rating on Shopify: 4.7 stars
Cost: Stock Sync offers a free plan and a 14-day trial. Paid plans start at $5/month.
Real-time stock syncing and bundling
Multi-channel inventory management within the same dashboard
Low stock alerts
Unlimited sales channels and listings
Shopify rating: 5.0
Cost: Trunk offers a 14-day free trial. Pricing is based on the number of orders per month, with their essentials plan ranging from $35 per month for up to 100 orders to $279 per month for up to 10,000 orders.
Geared towards manufacturers
Manage raw materials, finished products, and sales orders all from the same place.
Visual dashboards make it easier to keep track of your production process.
Shopify rating: 4.9
Cost: Katana pricing plans begin with the essentials plan at $99 per month for 1 user.
5. Syncio Multi Store Sync
Real-time inventory updates
Product across multiple stores
Shopify rating: 4.8 stars
Cost:Syncio's prices range between $19 per month and $69 per month.
Inventory management for all items across multiple stores
Send POs to suppliers
Track inventory across multiple warehouses
Shopify rating: 4.6 stars
Cost: SKULabs pricing plans begin at $499 per month for 2,500 orders and up to 10 users.
Easy integrations to Shopify, Shopify Plus, and Shopify POS
Print shipping labels from major carriers
Synchronize inventory across sales channels, warehouses, FBA distribution channels, etc.
Automated POs based on lead times, sales, and seasonality
Helps account for costs per each SKU
Rating on Shopify: 4.5 stars
Cost:Skubana works on a custom pricing model, with a minimum $1,000/month fee.
Real-time multi-channel inventory updates
Automated purchase order (PO) creation
Bulk add, update, or delete products
Easily transfer stock between warehouses
Low-stock and out-of-stock alerts
Shopify rating: 4.4 stars
Cost: Orderhive plans range from $95 per month to custom quotes starting at $500 for multi-channel, high-volume sellers.
Best for Shopify and Shopify Plus owners that want to sell products in marketplaces like Amazon, eBay, Etsy, and Walmart
Supports multiple warehouse locations and integrates with FBA
Control inventory quantities from Shopify admin
Shopify rating: 3.8 stars
Cost: Sellbritefor Shopify has a free plan for up to 30 orders per month and goes to $99 per month for up to 2,000 orders.
Final thoughts on inventory management for your Shopify store
Having an inventory management process in place for your Shopify store is crucial to meet customer demands, prevent inventory waste, and manage your inventory costs.
There are so many great inventory options for Shopify stores. In order to choose which you want to move forward with, we recommend first making a list of features you can't compromise on. This will be the list you consult when checking out any new system.
After that, read through the sites and reviews from customers to see which are worth trying. Many of them will give you an option of a free trial to play around a bit first and get a real feel of the system.
Of course, we are always here to answer any questions you have on choosing an IMS, accounting for your inventory costs, and any questions on automating ecommerce bookkeeping for your Shopify store.
We are a technology company providing automated end-to-end accounting service to ecommerce businesses. Our system connects to your apps, syncs all your data, and reconciles your books in real-time, replacing your bookkeeper. We offer reconciled books available 24/7, tax-saving insights, and a single place for all your financial data.
*The information provided on this website does not, and is not intended to, constitute legal advice. All information, content, and materials available on this site are for general informational purposes only. Readers are advised to consult with their attorney or accountant with any questions or concerns.*
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