When a customer asks if you have something in stock, you’re probably able to check its availability in your inventory management system. But if the system says you should have five in stock and the product is nowhere to be found, you — and the customer — have a problem.
Managing inventory shouldn’t feel like a puzzle. Yet, for many retailers, stock discrepancies and unexpected shortages are all too common. Without the right system, these challenges and points of confusion can lead to lost sales and wasted resources.
The best inventory management software for retail businesses takes the guesswork out of tracking stock by automating updates and ensuring you always know what’s in stock. Here are the best solutions on the market today.
Inventory management for retail: A quick overview
Inventory management is the backbone of a successful retail business. It lets team members check how much of a product is available, whether there’s more on order, and when to expect the next shipment — among other valuable details. But without a solid inventory system, things can get messy fast.
A well-run inventory management system helps retailers stay on top of their stock without stress by ensuring:
- Less guesswork, more accuracy: Instead of manually updating inventory counts, an efficient retail inventory control system uses features like barcode scanning and real-time tracking so you always know what’s available.
- Better cash flow: Buying too much or too little of a product can hurt your business. Smart inventory tracking and reorder points help strike the right balance, also known as an economic order quantity.
- Smooth operations across sales channels: Whether you sell in-store, online, or across multiple locations, well-integrated retail inventory software keeps everything in sync — from your point-of-sale (POS) systems to your warehouse.
- Smarter planning: With analytics and forecasting, retailers can better anticipate demand, adjust purchase orders, and avoid last-minute scrambles to find goods.
Types of inventory management software
Not all inventory management software works the same way. Every retailer has different needs based on factors like business size, sales channels, the complexity of their supply chain, and whether they manage single or multichannel sales.
Choosing the right system can help streamline order management and improve fulfillment. Here are some of the main types of inventory software.
Cloud-based inventory software
A cloud-based inventory management system lets you access your software from anywhere. If you’re at the store, working remotely, or on the go, you can check inventory in real time, automate reorder points, and manage purchase orders without being tied to a single computer. These systems often sync with Shopify, POS systems, and ecommerce platforms, so your stock stays updated across sales channels.
- Best for: Retailers who sell both online and in-store or have multiple locations.
POS-integrated inventory software
A POS system with built-in inventory tracking updates stock levels automatically when sales happen. This means no more manual inventory counts or surprises when you run out of a bestselling item. Many POS systems also support barcode scanning, making checkout faster and reducing errors.
- Best for: Brick-and-mortar retailers who want their inventory system and sales to work together seamlessly.
Industry-specific inventory software
Some industries need more than basic inventory tracking. Industry-specific retail inventory management software comes with features tailored to different types of businesses:
- Clothing and fashion: Tracks different sizes, colors, and styles using SKUs.
- Grocery and food: Manages expiration dates and batch tracking to reduce waste.
- Electronics: Uses serial number tracking to manage warranties and returns.
- Furniture and home goods: Handles large warehouse inventory and long restocking cycles.
Other industries benefit from these features, even if they aren’t specifically identified in the list above.
- Best for: Retailers with specific inventory needs that generic inventory management software can’t handle.
On-premises (desktop) inventory software
Unlike cloud-based options, on-premises inventory software runs on your server or computer. While this gives you complete control over your data, it means you need IT support to maintain it.
Some providers, like Fishbowl Hosted Services, offer hosting options so you can access desktop-based software remotely.
- Best for: Businesses that prefer to keep data in-house and don’t need remote access.
6 best inventory management software for retail
By investing in the best retail inventory software, businesses can improve warehouse management, prevent stockouts, and create a smoother shopping experience for customers. Plus, getting this right the first time means retailers can scale with it and avoid having to switch systems when they outgrow one’s limited feature set. That’s an expensive and time-consuming proposition. Let’s take a close look at some of the best retail inventory management software available.
1. Fishbowl
Managing inventory can quickly become overwhelming, especially when juggling multiple locations, sales channels, and suppliers. Fishbowl helps retailers streamline everything related to inventory tracking — so you always know what’s in stock, what’s running low, and when to reorder.
One of Fishbowl’s biggest strengths is its return merchandise authorization (RMA) module, which simplifies returns and exchanges — a major plus for retailers handling frequent product returns. It also integrates seamlessly with platforms like QuickBooks, Shopify, and other ecommerce and POS systems, to keep everything connected and up to date.
Why retailers love Fishbowl:
- Barcode scanning to speed up inventory counts and reduce errors
- Automated reorder points so you never run out of bestsellers
- Multi-location tracking for warehouses and storefronts
- Kitting and bundling for selling products in sets or packages
- Cloud access through Fishbowl Hosted Services or Fishbowl Drive to manage inventory from anywhere
- Seamless integrations with accounting, ecommerce, and POS software
2. NetSuite
NetSuite is a cloud-based inventory management system built for mid-sized to large retailers that need a centralized way to track inventory and automate workflows. It comes with real-time analytics, demand forecasting, and multi-location inventory tracking, making it a strong option for businesses with complex operations.
But NetSuite isn’t the most user-friendly option. It’s an enterprise resource planning (ERP) solution that requires extensive customization and a lengthy implementation process, which can be overwhelming for businesses that just need a simple, efficient way to manage inventory. Pricing is also higher, making it less accessible for smaller retailers.
What NetSuite offers:
- Cloud-based tracking for real-time inventory visibility
- Automated workflows to cut down on manual tasks
- Multi-location inventory management for businesses with multiple warehouses or stores
- Advanced analytics and forecasting to predict demand
- Ecommerce and POS integrations
3. Lightspeed Retail
Lightspeed Retail is a POS system with built-in inventory management, making it a great choice for brick-and-mortar retailers looking to manage sales, stock levels, and customer transactions in one place. It offers real-time inventory tracking, multi-location stock management, and low stock alerts, helping retailers stay on top of their supply.
While Lightspeed Retail offers solid inventory tools, its warehouse management and advanced automation capabilities are more limited than those of specialized inventory management software. Businesses needing detailed warehouse tracking, extensive automation, or complex kitting options might find a more specialized inventory system — like Fishbowl — a better fit.
What Lightspeed Retail offers:
- POS and inventory in one system for easy sales tracking
- Multi-location stock management to keep inventory synced
- Basic automation for reorders and stock alerts
- Ecommerce integrations with Shopify and other platforms
4. Zoho Inventory
Zoho Inventory is a user-friendly inventory management solution designed for small to mid-sized businesses, particularly those focused on ecommerce. It integrates seamlessly with platforms like Shopify, Amazon, eBay, and Etsy, making it a great fit for retailers selling across multiple channels. Plus, if you’re already using Zoho’s ecosystem — like Zoho Books for accounting or Zoho CRM — it syncs effortlessly, streamlining your operations.
That said, Zoho Inventory isn’t as robust as some enterprise-level solutions. It lacks in-depth manufacturing management, advanced automation, and some customization options that larger businesses may require.
What Zoho Inventory offers:
- Affordable for small businesses
- Connects with sales channels like Shopify and Amazon
- Syncs with Zoho’s other business tools
- Includes basic barcode scanning and stock tracking
5. Cin7
Cin7 is a feature-packed retail inventory management software for small businesses that sell across multiple sales channels. It helps retailers sync inventory in real time and automate tasks like purchase orders and fulfillment. If you’re selling on Shopify, Amazon, or even brick-and-mortar stores, Cin7 can keep everything connected.
But, while it’s powerful, it’s not the most user-friendly option. The setup can be complex, and some retailers find the learning curve steep. Pricing can also be confusing, especially if you’re unsure of which features you’ll need as your business grows.
What Cin7 offers:
- Multichannel syncing across ecommerce and retail
- Automation tools for order management and fulfillment
- Built-in POS system for seamless in-store sales
- Integrations with QuickBooks, Xero, and other accounting tools
6. Shopify POS
If you’re already using Shopify for your online store, Shopify POS is an easy way to bring your in-person and ecommerce sales together. It automatically syncs inventory across all sales channels in real time, so you don’t have to worry about selling the last item online and realizing it’s already gone from your physical store. With barcode scanning, multi-location tracking, and order management, it covers the basics of retail inventory management without extra hassle.
While Shopify POS is great for Shopify-based businesses, it’s not the most robust inventory system out there. Some advanced features — like warehouse management, supplier tracking, and detailed analytics — are only available with the POS Pro plan (at a cost). If your business is growing and needs more than just basic inventory tracking, you might hit a ceiling.
What does Shopify POS offer?
- Seamless integration with Shopify’s ecommerce platform
- Omnichannel syncing across in-store and online sales
- Customizable checkout with flexible payment options
- Mobile-friendly POS for selling on the go
Looking for the best inventory management software for your retail business?
Keeping up with inventory shouldn’t slow your business down. Fishbowl gives you the tools to track stock, automate reordering, and streamline operations in one platform — so you can focus on growing your business.
Whether you’re managing multiple locations or optimizing warehouse workflows, Fishbowl helps you stay focused on complex operations knowing there won’t be stockouts, overstocking, or manual errors.
See how Fishbowl can transform your retail business. Book a demo today!
