Why Small Businesses Need Smart Inventory Software

Running a small business often means wearing many hats. You’re the buyer, the seller, and the stock keeper. Often, you also handle late-night stock counts. You’re not alone if you’ve ever lost inventory, oversold an item, or wasted hours on spreadsheets.

This is where choosing the right inventory software can transform your operations. With the right tools, you move from reactive to proactive, from chaos to control.

This guide covers the top inventory software choices for small businesses. You’ll discover how to choose the right tools for you. You’ll also learn to avoid common mistakes. Plus, you’ll find features that save time, lower costs, and boost your profits.

Let’s explore how technology can simplify your stockroom.

What Is Inventory Management Software?

Inventory management software helps businesses track, manage, and optimise their stock. It works across various locations and sales channels.

Key Functions Include:

  • Real-time inventory tracking
  • Automated reordering
  • Barcode scanning & label printing
  • Integration with e-commerce and accounting platforms
  • Inventory analytics and reporting

For small businesses, it’s not just a convenience — it’s a competitive advantage.

Want to better understand your software needs? Start with Choosing the Right Inventory System for Your Business.

How to Choose the Right Inventory Software for Small Business Needs

1. Define Your Requirements

Are you a product-based business selling across platforms like Shopify, Etsy, and Amazon? Or a service provider with limited SKUs?

Write down:

  • Number of products you manage
  • Sales channels used
  • Warehouses or store locations
  • Required integrations (e.g., Xero, QuickBooks, WooCommerce)

2. Scalability and Flexibility

The best software grows with you. Look for:

  • Flexible pricing tiers
  • Add-on modules
  • Multi-location support

3. User-Friendly Interface

No one wants to battle clunky software. Ensure:

  • Simple dashboards
  • Mobile app access
  • Easy training for staff

4. Customer Support

A hand holding a glowing icon displaying 24/7 Support, surrounded by communication symbols like phone, chat, email, and headset.

You’ll need help setting up or troubleshooting. Choose vendors with:

  • 24/7 chat or phone support
  • Rich knowledge base
  • Quick response times

Top Inventory Software for Small Businesses (Ranked by Use Case)

1. Zoho Inventory – Best Overall for SMBs

Why We Like It:

  • Affordable plans
  • Great integrations (Shopify, Amazon, Etsy, QuickBooks)
  • Clean user interface
  • Free plan available

Standout Features:

  • Multi-channel order management
  • Shipping label generation
  • Serial number and batch tracking

Ideal For: E-commerce stores and retail businesses

2. Sortly – Best for Visual Inventory Tracking

Why We Like It:

  • Visual interface with images
  • Drag-and-drop categorisation
  • Mobile-first design

Standout Features:

  • QR code generation
  • Inventory alerts
  • Offline mode support

Ideal For: Creative industries, event companies, equipment rentals

3. inFlow Inventory – Best for Manufacturers and B2B

Why We Like It:

  • Handles complex workflows
  • Robust reporting tools
  • Good for wholesale businesses

Standout Features:

  • Bill of Materials (BOM)
  • Work orders
  • Barcode scanning

Ideal For: B2B, light manufacturing, wholesale

4. TradeGecko (Now QuickBooks Commerce) – Best for QuickBooks Users

Why We Like It:

  • Seamless QuickBooks integration
  • Global multi-currency and warehouse support
  • Beautiful UX

Standout Features:

  • Real-time inventory sync
  • Sales order automation

Ideal For: Retailers already using QuickBooks Online

5. Cin7 Core (formerly DEAR Systems) – Best for Advanced Integrations

Cin7 Core logo featuring a stylized blue hexagon with lines and the text

Why We Like It:

  • Highly customisable
  • Works well with Shopify, Magento, and Amazon
  • Robust accounting and reporting

Standout Features:

  • Manufacturing module
  • Advanced analytics
  • POS integration

Ideal For: Medium-small businesses with complex needs

Comparing Pricing & Features at a Glance

Software Free Plan Pricing (From) Best For Key Features
Zoho Inventory Yes £30/month E-commerce, retail Multi-channel, order tracking
Sortly Yes £25/month Visual workflows, rentals QR, visual stock, alerts
inFlow No £45/month B2B, manufacturing BOM, work orders, B2B portals
TradeGecko/QBC No £60/month QuickBooks users, global sellers Real-time sync, currency support
Cin7 Core No £70/month Complex inventory, integrations Advanced analytics, POS, and ERP features

Integrations That Matter

Make sure your inventory tool integrates with:

A hand typing on a laptop surrounded by CRM-related icons, representing customer engagement and management strategies.

  • CRM tools: HubSpot, Salesforce
  • E-commerce platforms: Shopify, WooCommerce, Amazon
  • Accounting: Xero, QuickBooks, MYOB
  • Shipping carriers: UPS, FedEx, ShipStation

Common Mistakes Small Businesses Make With Inventory Software

  • Choosing software that’s too complex
  • Neglecting staff training
  • Ignoring software updates
  • Failing to set inventory rules or reorder points

Learn how to avoid these issues in our article Common Inventory Management Mistakes to Avoid.

Real-Life Success Story: Lily’s Boutique Goes Digital

Lily owns a boutique fashion store in Brighton. She juggled sales on Etsy, in-store, and via Instagram. But her manual spreadsheets caused double-sold items and missing sizes.

She switched to Zoho Inventory. Then, she synced her sales channels and used barcode labels in-store. Result?

  • 40% reduction in fulfilment errors
  • Daily stock reports
  • 20% more time to focus on marketing

“I never thought I’d love inventory software, but here we are,” she laughs.

Key Features to Prioritise Based on Your Business Type

For Retail Stores:

  • POS integration
  • Label printing
  • Multi-location support

For E-commerce:

  • Real-time sync across platforms
  • Low stock alerts
  • Shipping integration

For Manufacturers:

  • BOM and work orders
  • Production cost tracking
  • Batch number tracing

For Service Providers:

  • Basic stock tracking
  • Client history records
  • Mobile access

Preparing for Implementation

  1. Audit current inventory methods
  2. List your SKUs and categories
  3. Decide your stock-taking method (FIFO, LIFO, weighted average)
  4. Train your team gradually

Implementation can take 2–6 weeks, depending on size and complexity.

Future Trends in Inventory Software

  • AI-driven demand forecasting
  • Voice-assisted inventory updates
  • IoT integration with smart shelves
  • Augmented reality for warehouse navigation

Investing early helps future-proof your business.

Conclusion: From Headaches to Harmony

Choosing the right inventory software is not just about technology. It’s about saving your time, avoiding costly errors, and helping your business grow sustainably.

You deserve tools that work with you, not against you.

Here’s what to do next:

  • Trial 1–2 top software picks for 14 days
  • Talk to vendors about integration options
  • Involve your team in testing

Which tool are you leaning towards? Share your thoughts below or ask us for help deciding.