12 Best Inventory Management Software for Small Businesses in 2025

Inventory management software is a digital tool used to streamline and optimize the tracking, ordering, and organization of a business's goods. It enables businesses to efficiently monitor stock levels, track product movement, and automate inventory-related tasks. For small businesses, where resources are often limited, inventory management software is crucial for several reasons. It helps prevent stockouts and overstock situations, reducing carrying costs and potential revenue loss. 

However, many small businesses face challenges in finding suitable inventory management software due to several reasons. The diversity in product types, sales channels, and workflows among small businesses requires customizable software, which might be scarce. Additionally, the overwhelming number of software options and the need to find one that seamlessly integrates with existing systems can make the selection process daunting. 

The blog will delve into the top 12 inventory management software for small businesses and their key features.

Best Inventory Management Software for Small Business

Here is the list of small business inventory management software: 

1. Zoho Inventory

Zoho Inventory is one of the best inventory management software for small businesses. Beyond its user-friendly interface, it provides a range of features that empower businesses to efficiently handle their inventory. It offers a seamless workflow with tools for order management, tracking, and integrations with other Zoho applications. This cloud-based inventory management software for small businesses ensures accessibility from anywhere, fostering collaboration among team members. The platform caters to small businesses with both online and offline sales channels, making it versatile for various industries. 

Key Features

• Item Management: Allows small businesses to tailor, manage, and track items efficiently from a single application. 
• Serial & Batch Tracking: Tracks individual items' movements and manages batch expiration dates through unique identifier codes.
• Sales Order Management & Invoicing: Streamlines the sales order process by changing orders into invoices and forwarding them via email.
• Vendor Relations & Purchase Order Management: Manages vendor transactions in a singular place, create price lists for regular vendors, and maintains purchase order history.

2. QuickBooks Commerce

QuickBooks Commerce is a robust inventory management software for small businesses. With seamless integration with QuickBooks, it streamlines operations by combining accounting and inventory management. The platform excels in providing real-time visibility into inventory levels, order fulfillment, and supplier management. QuickBooks Commerce offers multichannel selling capabilities, hence ideal for businesses with diverse sales channels. Its user-friendly interface and automation features simplify complex inventory tasks, reducing manual errors. 

Key Features

• Integration with E-commerce Platforms: Integrates with popular eCommerce platforms and provides a smooth flow of data between the inventory system and online sales channels.
• Basic Inventory Tracking: Provides inventory tracking capabilities, including tracking products, costs of goods, and receiving low inventory notifications. 
• Purchase Order Management: Helps create and manage purchase orders and keep track of placed orders with vendors.
• Vendor Management: Facilitates easy management of vendor information and transactions and streamlines multiple suppliers' dealing processes.

According to a study by QuickBooks,  businesses using inventory management software experience a 10-15% reduction in the expense of holding inventory. QuickBooks helps achieve this by optimizing stock levels and preventing overstocking.

3. Cin7

Cin7 is a cloud-based inventory management software designed to provide comprehensive solutions for small businesses. It stands out in catering to businesses with diverse product lines and sales channels and offers seamless integration and real-time data synchronization. Its robust automation capabilities streamline complex processes, and its centralized platform ensures that businesses can efficiently manage their inventory across various channels, enhancing accuracy and operational efficiency. 

Key Features

• Advanced Product Variant Management: Provides sophisticated tools for managing product variants such as size, color, and style, which benefits small businesses dealing with diverse product lines.
• Built-in POS (Point of Sale) System: Includes a built-in POS system to allow businesses to handle both online and offline sales from one platform. 
• Warehouse Management: Provides efficient warehouse management, optimizes storage, and facilitates organized inventory handling within physical locations.
• Automated Processes: Offers automation capabilities, reduces manual efforts, and minimizes errors in tasks such as order processing and stock adjustments.

4. NetSuite

NetSuite is a cloud-based ERP solution suitable for small businesses seeking comprehensive solutions. As an integrated platform, NetSuite goes beyond inventory management, offering finance, CRM, and e-commerce functionalities. It excels in providing real-time visibility into inventory levels, order processing, and supply chain management. NetSuite's scalability ensures it accommodates the growth of small businesses, adapting to changing needs. With a centralized database, businesses can streamline operations, enhance accuracy, and achieve better control over their inventory processes. 

Key Features

• Comprehensive ERP Solution: Provides an integrated ERP solution that includes robust inventory management features, offering a unified platform for various business processes.
• Real-Time Inventory Visibility: Offers real-time visibility into inventory levels and allows small businesses to make informed decisions and overcome stockouts or overstock situations.
• Multichannel Selling: Supports small businesses with diverse sales channels, allowing them to seamlessly manage inventory across multiple online and offline platforms.
• Demand Planning: Helps small businesses forecast and plan inventory levels based on historical data and market trends.

A study by Netsuite shows there is a significant decrease in order fulfillment errors up to 30% for businesses using inventory management software. NetSuite's real-time tracking and automation features contribute to this improvement. 

5. Ordoro

Ordoro is one of the top inventory management software for small businesses designed to streamline order and inventory processes. It offers a user-friendly interface and excels in multichannel order management. This inventory management software for small businesses allows them to integrate and manage sales across various platforms seamlessly. Its automation capabilities simplify tasks such as order fulfillment, shipping, and inventory tracking, reducing manual efforts and minimizing errors. Ordoro's flexibility and scalability suit businesses with diverse needs, adapting to evolving requirements. 

Key Features

• Multichannel Order Management: Allows the management of orders from various sales channels in one centralized platform, including Shopify, WooCommerce, and others, and streamlines the order fulfillment process.
• Shipping and Fulfillment Automation: Automates shipping and fulfillment processes, helping businesses create shipping labels, manage multiple carriers, and streamline the entire shipping workflow. 
• Supplier Management: Includes tools for effective supplier management, facilitating transparent and efficient communication with vendors.
• Reporting and Analytics: Provide businesses valuable insights into inventory and order performance, aiding strategic decision-making.

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6. Katana 

Katana is an advanced inventory management software for small businesses. With its intuitive interface and real-time updates, Katana enables businesses to manage stock efficiently, prevent stockouts, and automate order fulfillment. It integrates with different eCommerce platforms and provides a centralized hub for inventory control. Katana's unique Smart Auto-Booking system optimizes production workflows, ensuring resources are utilized effectively. 

Key Features

• Live Inventory Management: Offers complete visibility of raw materials and available stock in real-time and ensures efficient management of on-hand, committed, and expected stock amounts.
• Real-Time Master Planning: Provides production, scheduling, and resource management in one place to allow businesses to make effective calls for accurate manufacturing and purchasing. 
• Production Planning: Automates the reallocation of materials based on priorities and ensures businesses with effective sales order fulfillment.
• Omnichannel Sales Management: Centralizes order fulfillment operations from all sales channels to help businesses manage orders from different eCommerce or physical locations. 

7. Lightspeed Retail

Lightspeed Retail is a point-of-sale (POS) and inventory management solution tailored for small businesses, particularly those in the retail sector. It combines seamless POS functionalities with robust inventory management features and provides a comprehensive retail management system. Lightspeed Retail excels in multichannel selling, allowing businesses to manage inventory across various sales channels effortlessly. 

Key Features

• Customer Relationship Management (CRM): Features CRM capabilities that allow businesses to track customer interactions, preferences, and purchase history for personalized service.
• Customizable Workflows: Offers customizable workflows to tailor business processes to their unique needs and preferences.
• Integrated POS System: Includes an integrated point-of-sale (POS) system to provide a unified platform for transactions and inventory management.
• Promotions and Discounts: Includes features for creating and managing promotions and discounts, enhancing sales strategies.

8. Square for Retail

Square for Retail is a comprehensive point-of-sale (POS) and inventory management solution tailored for small businesses, particularly those with online and physical stores. It offers both a user-friendly interface and easy integration with Square's payment processing. Square for Retail excels in simplifying inventory tasks, including tracking stock levels, managing vendors, and processing orders. The platform is designed to increase the overall retail experience by providing real-time insights into sales, inventory, and customer behavior. 

Key Features

• Fast Setup: Enables quick import of products through CSV spreadsheets and allows quick, easy adjustments of item counts.
• Downloadable Reports: Helps export inventory stock levels to a printable spreadsheet anytime for efficient record-keeping.
• Stock Notification: Sends regular emails with item details that are out of stock and helps businesses maintain inventory levels effectively.
• Quick Edits: Helps manage details like names, quantities, or prices of inventory quickly right from the Square Dashboard or on the PoS app.

9. Sage 50 cloud

Sage 50cloud is one of the small business inventory management systems.  It offers a comprehensive suite for business operations, combining financial management with robust inventory features. Sage 50cloud helps small businesses simplify inventory tasks, providing tools for tracking stock levels, managing suppliers, and processing orders seamlessly. The platform's scalability ensures adaptability to the growth of small businesses. It integrates seamlessly with accounting functions, streamlining financial processes.

Key Features

• Product Variants and Assemblies: Helps manage different product variants and create assemblies, simplifying the tracking of bundled products or variations.
• Multi-Warehouse Management: Ensures the ability to manage inventory across different locations efficiently.
• Barcode Scanning Integration: Supports barcode scanning integration, streamlining the process of receiving, picking, and managing inventory with greater accuracy.
• Automated Reorder Points: Helps set up automated reorder points to receive alerts when inventory levels fall below a specified threshold, helping to prevent stockouts.

10. Finale Inventory

With highlighting features and a user-friendly interface, Finale Inventory remains a top choice for small businesses seeking a scalable inventory management solution. Its Integration capability with leading eCommerce platforms, such as Shopify and WooCommerce, streamlines multichannel selling. With user-friendly features, it optimizes order processes, tracks stock levels, and minimizes errors. Its cloud-based platform ensures accessibility from anywhere, facilitating remote management. 

Key Features 

• Product Data Import: Allows easy import of existing product data from spreadsheets and external systems.
• Wide Range of Integrations: Offers a high degree of flexibility and compatibility with various business systems.
• Custom Reporting: It provides a wide range of tailored reporting options that include categories such as stock, purchase and sales, master data, accounting, etc. 
• Barcode Scanning Compatibility: Supports barcode scanning and is also compatible with Android scanner apps to provide seamless inventory tracking and management.

11. TradeGecko

TradeGecko is a reliable platform for businesses dealing with large-scale inventories. The platform serves as a comprehensive solution for inventory management. With its user-friendly platform, TradeGecko stands out in coordinating inventory across different sales channels, ensuring everything runs smoothly and accurately. 

Key Features

• Multi-Channel Synchronization: The platform seamlessly coordinates inventory across diverse sales channels and ensures accurate stock levels. 
• Order and Sales Management: It empowers users to process orders swiftly, track sales in real time, and maintain seamless customer relationships.
• Batch and Expiry Tracking:  It offers detailed batch and expiry tracking, which is particularly crucial for industries dealing with time-sensitive or perishable products. 
• Reporting and Analytics Tools: The platform provides real-time insights to monitor performance, identify trends, and promptly make informed, data-driven decisions.

12. SKULabs 

SKULabs is a dynamic inventory management software for small businesses that enables efficient order fulfillment and shipping. With precise barcode scanning capabilities, SKULabs ensures accurate inventory tracking. SKULabs is renowned for its multi-channel inventory syncing. This platform enables seamless inventory management across diverse sales channels.

Key Features

• Automation and Workflows: Supports automation for tasks such as order processing, inventory updates, and reorder triggers to save time and manual effort.
• Real-time Stock Alerts: Provides real-time alerts for low stock levels, enabling businesses to proactively manage inventory and avoid stockouts.
• Returns Management: Includes features for managing product returns, making the returns process more efficient, and helping businesses track returned items.
• Integrations: Integrates with various e-commerce platforms, marketplaces, and shipping carriers to facilitate seamless data flow and enhance operational efficiency.

Conclusion

The development of advanced inventory management software tailored for small businesses represents a significant milestone in an era dominated by automation, predictive analytics, and seamless technology integration. As businesses increasingly adopt these innovative solutions, they are positioned to secure a noteworthy competitive edge in their respective industries.

The cumulative impact of these features translates into tangible benefits for businesses. Therefore, small businesses that will proactively embrace and implement these advanced inventory management solutions will not only adopt software. They will strategically position themselves for a future where operational excellence, cost efficiency, and customer-centricity are at the forefront of success.

At Invensis, we specialize in inventory optimization and are familiar with advanced inventory management tools for small businesses. Our services ensure expert guidance, manage complex supply chains, and provide scalable solutions. Ultimately, we enable small businesses to navigate the evolving market dynamics efficiently. Contact us if you want to stay ahead in an increasingly competitive business environment and drive business growth with our inventory management services.

Frequently Asked Questions

1. What is the average cost of inventory management software for small businesses?

The average cost of inventory management software for small businesses varies widely based on features, scalability, and deployment method. Basic systems for small businesses can cost around $50 to $200 per month. Mid-range solutions typically range from $200 to $500 per month. Advanced, enterprise-level systems can cost $1,000 to $5,000 per month or more. Additionally, some vendors charge per user or per transaction, and there may be one-time setup fees ranging from $500 to $5,000. Cloud-based solutions often have subscription pricing, while on-premise software may involve higher upfront costs plus maintenance fees.

2. What are the 5 tools of inventory management software in detail?

The tools that an inventory management software for small businesses must have are reports, reorder alerts, barcoding, dashboards, and mobile and system integration. All these tools make inventory control and management very effective.