Best Inventory Management Software of 2025

The best inventory management software supports all of your business’s sales channels, streamlines order management and generates detailed reports.
Advertiser icon
Close
Advertiser icon
Close
Our pick for simple accounting software
Xero
Our pick for simple accounting software

Xero

Xero

on Xero's website

Zoho Inventory

Best for Free inventory management software

Starting at
$0

Additional pricing tiers (per month): $39, $99, $159, $299.

Promotion
14-day free trial

on Zoho Inventory's website

Zoho Inventory

Best for Free inventory management software

Best for Free inventory management software

Starting at
$0

Additional pricing tiers (per month): $39, $99, $159, $299.

Promotion
14-day free trial

on Zoho Inventory's website

Square POS (inventory feature)

Best for Small retail shops

Starting at
$0

Free plan; $49 Plus plan; $149 Premium plan.

Promotion
30-day free trial

on Square's website

Square POS (inventory feature)

Best for Small retail shops

Best for Small retail shops

Starting at
$0

Free plan; $49 Plus plan; $149 Premium plan.

Promotion
30-day free trial

on Square's website

Clover POS (inventory feature)

Best for Online ordering

Starting at
$0

and up.

Promotion
$0

on Clover's website

Clover POS (inventory feature)

Best for Online ordering

Best for Online ordering

Starting at
$0

and up.

Promotion
$0

on Clover's website

Lightspeed POS (inventory feature)

Best for High-volume retail stores

Starting at
$109/month

Additional pricing tiers (per month): $179, $339.

Promotion
14-day free trial

on Lightspeed's website

Lightspeed POS (inventory feature)

Best for High-volume retail stores

Best for High-volume retail stores

Starting at
$109/month

Additional pricing tiers (per month): $179, $339.

Promotion
14-day free trial

on Lightspeed's website

Sortly

Sortly

Best for Mobile inventory tracking app

Starting at
$0

Additional pricing tiers (per month): $49, $149, $299, custom.

Promotion
14-day free trial

Sortly

Best for Mobile inventory tracking app

Sortly

Best for Mobile inventory tracking app

Starting at
$0

Additional pricing tiers (per month): $49, $149, $299, custom.

Promotion
14-day free trial

SalesBinder

SalesBinder

Best for Inventory tracking across unlimited locations

Starting at
$0

Additional pricing tiers (per month): $9, $19, $49, $99, $199, $299.

Promotion
30-day free trial

SalesBinder

Best for Inventory tracking across unlimited locations

SalesBinder

Best for Inventory tracking across unlimited locations

Starting at
$0

Additional pricing tiers (per month): $9, $19, $49, $99, $199, $299.

Promotion
30-day free trial

Cin7

Cin7 Core

Best for Industry-specific inventory plans

Starting at
$349/month

Additional pricing tiers (per month): $599, $999.

Promotion
14-day free trial

Cin7 Core

Best for Industry-specific inventory plans

Cin7

Best for Industry-specific inventory plans

Starting at
$349/month

Additional pricing tiers (per month): $599, $999.

Promotion
14-day free trial

Backbar

Backbar

Best for Bar and restaurant inventory management

Starting at
$0

Additional pricing tiers per location (per month): $99, $149.

Promotion
One-month free trial

of the Essential or Professional plan.

Backbar

Best for Bar and restaurant inventory management

Backbar

Best for Bar and restaurant inventory management

Starting at
$0

Additional pricing tiers per location (per month): $99, $149.

Promotion
One-month free trial

of the Essential or Professional plan.

Katana

Katana

Best for Manufacturing companies

Starting at
$199/month

Additional pricing tiers (per month): $399; $899; $1,999.

Promotion
14-day free trial

Katana

Best for Manufacturing companies

Katana

Best for Manufacturing companies

Starting at
$199/month

Additional pricing tiers (per month): $399; $899; $1,999.

Promotion
14-day free trial

Brightpearl

Brightpearl

Best for Built-in accounting features

Promotion
N/A

Brightpearl

Best for Built-in accounting features

Brightpearl

Best for Built-in accounting features

Promotion
N/A

Finale Inventory

Finale Inventory

Best for QuickBooks Online users

Starting at
$99/month

Additional pricing tiers (per month): $240, $420, $649, $949.

Promotion
14-day free trial

Finale Inventory

Best for QuickBooks Online users

Finale Inventory

Best for QuickBooks Online users

Starting at
$99/month

Additional pricing tiers (per month): $240, $420, $649, $949.

Promotion
14-day free trial

Logo iconJump to

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. After signing up for an account online, you’ll add all of your inventory items to the system or import a list. 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 while also preventing an overstock of items, especially those that are less in demand.
Your inventory management software should integrate with all of your sales channels — meaning your e-commerce platforms and point-of-sale (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.

💬 From our Nerds: Tips for setting up your inventory system

"Every business has to create categories for their inventory. Software can make doing so pretty simple — sometimes, too simple. I think things can quickly become overly complicated based on how you choose to segment products.
"My best advice? Start small. Begin by categorizing according to location, department or item type. Don’t worry about unique entries for different sizes and colors. You can usually add those options as “variants” or “variations” of existing items to simplify tracking."
Blonde, Hair, Person
Hillary Crawford, lead writer covering small business

Inventory management software features

  • Real-time inventory tracking . Track inventory items as they move through the supply chain and order fulfillment process. Software 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 these for you. 
  • Purchase order management . Creating and sending purchase orders from within your inventory management software allows you to streamline the process. This can be especially helpful for businesses that use the just-in-time inventory strategy. 
  • Digital labeling and barcode scanning . Counting inventory by hand takes time and is prone to human error. Scanning items’ SKU or UPC labels as they're delivered or packed for shipment is much more efficient. Some software lets you use a mobile device as a scanner. 
  • Kitting and/or parts and assembly tracking . Track products with multiple parts both individually and as a whole. 
  • Reporting . Look for reports on inventory forecasts, cost of goods sold, inventory profitability and sales by item or product. 
  • Integrations . Inventory software should integrate with your accounting software, e-commerce platform and POS system.
  • Industry specifics . Restaurants have different inventory needs than retailers, for example. Finding software that caters to your unique business can help maximize profit.
  • 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.
  • Order fulfillment options . Inventory management software with shipping add-ons or features helps you manage the fulfillment process end-to-end.

How much does inventory management software cost?

Unless you choose a free inventory management software option, subscriptions can be expensive — upward of $300 per month in some cases. Less-expensive inventory management software costs between $50 and $100 per month, and most platforms 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. 

How to choose inventory management software

To choose the best inventory management software for your business, take these four key factors into account:

Features

Some main features to look for, regardless of your business’s industry, include basic inventory tracking, reporting, reorder points and the ability to create purchase orders to send to vendors. Examples of more advanced features could be shipping add-ons for businesses that deliver orders to customers and inventory forecasting that calculates reorder points based on previous sales data.

Cost

Business software costs start to snowball as you subscribe to more products (and integrate them), so it’s best to choose options that can fulfill multiple purposes. Before subscribing to software specifically made for inventory management, check to make sure your existing software products, like your accounting program or POS software, don’t already meet those requirements for you.
If you determine that you need dedicated inventory management software, the question becomes whether a free option will suffice. Free versions are a great choice for very small retail businesses, in particular, but businesses in specialized industries, like manufacturing, might choose a paid alternative that’s more specific to their needs. Paid plans typically run from anywhere around $40 to more than $300 per month. And if the software doesn’t have built-in integrations, you might have to pay to integrate them through a third-party product like Zapier.

Integrations

Your inventory management software needs to sync with your accounting software so that you can keep tabs on how much your business has spent on inventory and how that inventory impacts your business’s overall value. And since your POS system facilitates and tracks sales, your inventory management software should integrate with it, too. That way, the POS software will update stock counts as items are sold.

Ability to track items sold in different places

This is most applicable to businesses that sell inventory from more than one sales channel — whether it’s your own online store and another online marketplace, like Etsy, or an online store and a brick-and-mortar. You want to be able to track how much inventory is being bought and replenished for each sales channel. This can also help you gauge which channel attracts the most sales.

Benefits of inventory management software

One of the biggest benefits of inventory management software is that it 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 popular inventory and lose out on profit.
Inventory management 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.

Types of inventory management software

Couple of hands typing on a laptop.
Stand-alone softwareMade specifically for tracking inventory and typically more advanced and scalable than the inventory management features that come with POS or accounting software. A good fit for small businesses that need to track hundreds of items, their variations and the raw materials used to produce them.
Hand with blue calculator.
Accounting softwareSome accounting software has built-in inventory management tools that are worth considering before subscribing to a separate, stand-alone inventory tracker. For example, QuickBooks Enterprise has in-depth inventory management tools.
Green shopping card over cellphone.
POS softwarePOS systems often come with basic inventory management tools. Some popular examples include Square Retail POS and Lightspeed Retail POS. If they’re sufficient for your business, you could save significant monthly costs by not subscribing to additional inventory management software.

Inventory management software FAQ

Inventory management software helps your business avoid ordering too much or too little inventory, so that you can reduce waste and save money. It keeps tabs on how much of each item your business has and when particular products are in high demand. That way, you can make sure your shelves are stocked accordingly.
Robust, industry-specific inventory management software can cost well upward of $100 or even $300 per month. Sometimes, you can save by paying annually instead of monthly. Companies like Zoho also offer free inventory software options that can be a great launching point, as long as they integrate with your existing software ecosystem.
Last updated on May 6, 2025

Methodology

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.