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Best Inventory Management Software of December 2023

Consider inventory management products built specifically for your industry. Usability and integrations should be top of mind.
Last updated on August 18, 2023
Edited byChristine Aebischer
Fact checked and reviewed

⏰ Estimated read time: 8 minutes

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

Inventory management software tracks how much inventory your business has on hand and when it’s time to reorder. You can also use it to identify seasonal sales trends, so you know which products resonate most with your customers and when. This ultimately helps you maximize profit and keep waste to a minimum.
The best inventory management software supports all of your business’s sales channels, streamlines order management and generates detailed reports. The basic inventory tools that come with small-business accounting software and point-of-sale systems can be sufficient in some cases, but more complex operations may require third-party apps with extra capabilities.
NerdWallet evaluated 17 inventory management software products on their key features — like multi-channel sales tracking, barcoding, reporting and order management — along with integrations and cost.
Here are our best inventory management software picks and what makes them stand out from the competition.

Best Inventory Management Software

Product
Promotion
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Brightpearl

Best for Built-in accounting module

N/A

Quote-based pricing.

N/A

Square Retail POS: Inventory feature

Learn more

on Square Retail POS: Inventory feature's secure website

Best for Small retail shops

$0

Additional pricing tiers (per month): $60, custom.

30-day free trial

Learn more

on Square Retail POS: Inventory feature's secure website

Lightspeed Retail POS: Inventory feature

Learn more

on Lightspeed Retail POS: Inventory feature's secure website

Best for High-volume retail stores

$89/month

Additional pricing tiers (per month): $149, $269, custom.

14-day free trial

Learn more

on Lightspeed Retail POS: Inventory feature's secure website

inFlow Inventory

Best for B2B specialization

$110/month

Additional pricing tiers (per month): $279; $549; $1,319.

14-day free trial

Restaurant365

Best for Restaurant management

$435/month (billed quarterly)

Additional pricing tiers (per month, billed quarterly): $635, custom.

N/A

Katana

Best for Manufacturing companies

$129/month

Additional pricing tiers (per month): $349, $999, custom.

14-day free trial

plus $200 monthly discount on Professional plan.

Finale Inventory

Best for QuickBooks Online users

$75/month

Additional pricing tiers (per month): $199, $349, $549, custom.

14-day free trial

QuickBooks Enterprise: Inventory feature

Best for Locally installed inventory management software

$1,410/year

Additional pricing tiers (per year): $1,830; $2,250; $4,400. Adding users or cloud access costs extra.

30-day free trial

Zoho Inventory

Learn more

on Zoho Inventory's secure website

Best for Free inventory management software

$0

Additional pricing tiers (per month): $79, $129, $199, $299, $399.

14-day free trial

Learn more

on Zoho Inventory's secure website

Cin7 Core

Best for Industry-specific plans

$325/month

Additional pricing tiers (per month): $550, $650.

14-day free trial

Our pick for

Built-in accounting module

Brightpearl

Starting at

N/A

Quote-based pricing.

Promotion

N/A

Our pick for

Small retail shops

Square Retail POS: Inventory feature

Learn more

on Square Retail POS: Inventory feature's secure website

Starting at

$0

Additional pricing tiers (per month): $60, custom.

Promotion

30-day free trial

Our pick for

High-volume retail stores

Lightspeed Retail POS: Inventory feature

Learn more

on Lightspeed Retail POS: Inventory feature's secure website

Starting at

$89/month

Additional pricing tiers (per month): $149, $269, custom.

Promotion

14-day free trial

Our pick for

B2B specialization

inFlow Inventory

Starting at

$110/month

Additional pricing tiers (per month): $279; $549; $1,319.

Promotion

14-day free trial

Our pick for

Restaurant management

Restaurant365

Starting at

$435/month (billed quarterly)

Additional pricing tiers (per month, billed quarterly): $635, custom.

Promotion

N/A

Our pick for

Manufacturing companies

Katana

Starting at

$129/month

Additional pricing tiers (per month): $349, $999, custom.

Promotion

14-day free trial

plus $200 monthly discount on Professional plan.

Our pick for

QuickBooks Online users

Finale Inventory

Starting at

$75/month

Additional pricing tiers (per month): $199, $349, $549, custom.

Promotion

14-day free trial

Our pick for

Locally installed inventory management software

QuickBooks Enterprise: Inventory feature

Starting at

$1,410/year

Additional pricing tiers (per year): $1,830; $2,250; $4,400. Adding users or cloud access costs extra.

Promotion

30-day free trial

Our pick for

Free inventory management software

Zoho Inventory

Learn more

on Zoho Inventory's secure website

Starting at

$0

Additional pricing tiers (per month): $79, $129, $199, $299, $399.

Promotion

14-day free trial

Our pick for

Industry-specific plans

Cin7 Core

Starting at

$325/month

Additional pricing tiers (per month): $550, $650.

Promotion

14-day free trial

What is inventory management software?

Inventory management software is a program that tracks how much inventory you have in stock, how much you’ve sold and where each item is located. Most products are cloud-based, so you don’t have to download anything to your computer. After signing up for an account online, you might be prompted to enter details about your business, such as its industry, currency, address and logo. Then, you’ll add all of your inventory items to the system or import a list of them. From there, you may fill out purchase orders and track sales from within the software.
More sophisticated inventory management software will forecast stock levels based on previous sales and tell you how much inventory you should order and when. That way, you’ll have your most in-demand products in stock when you need them.
On the flipside, inventory management software can also prevent your business from buying too much product. Items that sit on the shelves for too long take up space that new products in higher demand could fill. Then, they can begin to depreciate in value or expire altogether. And if you have to sell them at a discounted rate or throw them away, you could lose money on your investment.

How to choose inventory management software

Consider the following factors to find out which inventory management software is the right fit for your company’s needs.

Industry specificity

Basic inventory management software can help your business run more smoothly, but industry-specific options will maximize efficiency. For example, managing perishable inventory, like food or cosmetic products, is quite different from managing nonperishable products, like clothes. The type of inventory you work with will dictate how long it can stay on the shelves, how much of it you should order and how frequently you should order it.

Integrations

Your inventory management software should integrate with all of your sales channels — both online and in person. That means your e-commerce platforms and your POS system. On top of that, make sure it integrates with your accounting software. Inventory is considered a current asset account and appears on your balance sheet. Direct, built-in integrations are typically better than indirect integrations and you usually don’t have to pay extra for them.

Scalability

Will the inventory management software or app you choose be able to grow as your business does? The last thing you want is to have to manually reenter all your inventory if you outgrow your current system. Second, how many users will eventually need access to your inventory management software? Having to pay for extra users can add up quickly. Be sure to include yourself and anyone filling or counting inventory, and maybe even your accountant.

Cost

Cost can vary from free inventory management software to products that cost hundreds or even thousands of dollars per month. Free or low-cost products may be adequate for small operations, but businesses with more complex inventory needs may need to opt for a more expensive option, especially if they stand to lose a significant amount of money from an inventory mistake.

How much does inventory management software cost?

Unless you choose one of a handful of free options, inventory management software can be expensive — upward of $300 per month in some cases. Less-expensive products cost closer to between $50 and $100 per month, and most offer a range of plans and prices. The more complex your business’s inventory needs, the more you should expect to pay.
The following factors may impact your monthly inventory management software costs:
  • How many inventory locations or warehouses your business has. 
  • How many items you need to track. 
  • The number of sales channels you need to integrate. 
  • How many users need to access the inventory management software. 
  • The number of sales orders you create per month. 
  • The complexity of your production process. For example, it may cost more to track both parts and finished products. 
  • Whether you need add-ons for shipping. Small businesses that ship orders may need a more sophisticated product that includes end-to-end order fulfillment options. 
  • Your payment schedule. Opting to pay annually, as opposed to monthly, will usually save you money. Just make sure you’re ready to commit to the product for an entire year if you go that route. 

What features does the best inventory management software have?

Above all, the best inventory management software for you will integrate with your existing software ecosystem so that it can centralize all of your sales data. Once you check for integrations and weigh monthly costs, here are a few other key inventory management features to consider:
  • Real-time inventory tracking. This is important for businesses that need to track inventory items as they move through the supply chain and order fulfillment process. Systems with this feature will immediately update when returns and sales are made, too. 
  • Multi-channel inventory management. Businesses that sell products in multiple places will need to centralize their sales and inventory data in one place. 
  • Low-stock alerts and reorder points. You can set custom reorder points so that you’re notified when it’s time to order more inventory. Some software will even suggest or calculate reorder points for you. 
  • Purchase order management. Creating purchase orders and sending them to vendors is much more convenient when you can do it from within your inventory management software. This is especially true if you use the just-in-time inventory strategy and frequently make purchase orders to restock what’s been sold. 
  • Digital labeling and barcode scanning. Counting inventory by hand takes time and is prone to human error. Scanning items’ SKU or UPC labels is much more efficient. You can scan digital labels as inventory items get delivered and as you pack them out for shipment or sell them in store. Some software lets you use mobile devices as scanners. 
  • Kitting and/or parts and assembly tracking. Maybe you sell subscription boxes with multiple related products — together, these items make up a kit. Or, if you manufacture something like bars of soap, you might want to track raw materials and finished products. 
  • Reporting. Look for reports on inventory forecasts, cost of goods sold, inventory profitability and sales by item or product. 
  • Item variants and units of measure flexibility. Businesses that sell the same shirt in multiple sizes and colors, for example, will need inventory management software that lets you record variants (like color and size), as well as descriptions. Some businesses will need to switch between units of measurement, too. Each shirt could count as an individual unit, but you might want to measure material in yards.
  • Order fulfillment options. When a customer orders something online, it has to be picked from the warehouse, packaged and shipped to the correct address. Inventory management software with shipping add-ons or features helps you manage this process end-to-end.

How can inventory management software benefit your business?

Inventory management software can save your business time and money in a variety of ways. Ordering too much inventory can be a costly mistake if it sits on the shelf for too long and depreciates or, even worse, expires. At the same time, you don’t want to run out of inventory and lose opportunities to turn a profit. Software can help solve this by calculating reorder points and forecasting inventory levels. It can also speed up inventory counts with barcode scanners, automate purchase orders and streamline different stages of the order fulfillment process, such as shipping.
A more efficient inventory management system could boost your inventory turnover ratios, too. In general, a higher ratio means your business’s inventory is selling well. Products sitting on your shelves for too long, however, can drag your ratio down.

Methodology

NerdWallet evaluates inventory management software based on its features, scalability, cost, integrations and specialization. Most products include some combination of the following features:
  • Granular inventory tracking.
  • Reporting. 
  • Accounting, POS and e-commerce integrations. 
  • Barcode scanning. 
  • Purchase order management. 
  • Order fulfillment options or shipping add-ons. 
Since inventory management software isn’t as universal as some other types of business software, we also weigh a product’s ability to fill a particular niche or accommodate a specific industry.
Last updated on August 18, 2023

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