Ecommerce inventory software
Last reviewed
Inventory software comes in four kinds: channel sync, inventory management, forecasting and planning, and ERP. Know which job you are hiring it for.
Four categories
The words “inventory software” cover very different tools. Knowing the category saves hours of demos.
| Category | Main job | Typical output |
|---|---|---|
| Channel sync | Keep the same available quantity on every store and marketplace | Accurate stock shown to customers |
| Inventory management system | Track stock by location, handle purchase orders, transfers, costs, counts | One record of what you have and where |
| Forecasting and planning | Work out what to buy and when | A reorder list or draft purchase orders |
| ERP | Run inventory, purchasing, accounting and often manufacturing together | One system of record for the whole business |
Some products span two categories. Most strengths sit in one.
Start with the problem
| If your problem is | Look first at |
|---|---|
| Overselling or wrong quantities on channels | Channel sync, or an inventory management system |
| Stockouts and overstock | Forecasting and planning |
| Purchase orders in email and spreadsheets | An inventory management system with POs, or planning that drafts them |
| Stock in several warehouses and 3PLs | An inventory management system or ERP |
| Accounting, costs and manufacturing in one place | ERP |
What to look for
- Connections. Does it read from your store, marketplaces, 3PLs and accounting? How fresh is the data?
- Stock model. Does it separate on hand, reserved, available and on order? Can it hold stock in many locations?
- Kits and bundles. Does it count component demand inside bundles?
- Stockout handling. Does the sales speed leave out days the product was out of stock?
- Lead times. Does it use the real time your orders take or only a number you type in?
- Purchasing. Can it produce purchase orders, handle supplier minimums and multiple currencies?
- Explanations. Can you see why it suggests a quantity?
- Control. Does it change anything without your approval?
- Exit. Can you export your data in full?
Questions to ask vendors
- Which of our channels, 3PLs and warehouses connect natively, and what happens when a connection fails?
- How often does stock sync, and what is shown while a sync is late?
- How do you treat stock already on order in your suggested quantities?
- How do you handle days when a product was out of stock?
- How are kits and bundles forecast?
- How do you calculate lead time?
- What does the price include, and how does it change as our SKUs, orders and users grow?
- Can we try it on our own data before we commit?
- What can we export, in what format, if we leave?
- How long does set-up take, and who does it?
Running a trial
Test on your real data, using a few products you know well: a steady seller, a seasonal one, a kit and one that stocked out recently. Work the numbers by hand first (see inventory forecasting and replenishment) and see whether the tool gets the same answer, or a better one with reasons. A tool that cannot show its working is hard to trust with money.
Where Kerno fits
Kerno Forecast is in the forecasting and planning category, in early access, for brands selling on Shopify and Amazon. It reads sales, stock and stock on order, uses real lead times, and drafts purchase orders per supplier that you review and send. Kerno also has an ERP behind it for brands that later want inventory and purchasing in one system.
Frequently asked questions
What is ecommerce inventory software?
It is software that tracks stock across your sales channels and locations and helps you decide when and what to reorder. Products range from simple stock sync tools to forecasting tools to full ERP systems.
What types of inventory software are there?
Four broad types. Channel sync tools keep quantities consistent across stores and marketplaces. Inventory management systems add locations, purchase orders and costs. Forecasting and planning tools work out what to buy. ERP systems cover finance, purchasing, manufacturing and more.
How do I choose inventory software?
Name your biggest problem first: overselling, stockouts, cash tied up in stock, or messy purchasing. Pick the category that solves it, check that it connects to your channels and warehouses, and test it on your own data before you commit.
Do I need an ERP for ecommerce inventory?
Not usually at the start. An ERP makes sense when you need inventory, purchasing, accounting and manufacturing in one system of record. Many brands begin with a planning tool beside their store and move to an ERP later.
What should I ask an inventory software vendor?
Ask how it connects to your channels and 3PLs, how it treats stock on order, kits and out-of-stock days, how often data refreshes, what you can export if you leave, and what the full cost is as your products and orders grow.