Picture this: A customer places an order on your website, another buys the same item from your Amazon store, and a third grabs it off the shelf in your physical store — all within minutes of each other. But the item on the shelf is what you would’ve shipped to the person ordering from your site. That means you’ve just oversold a product. Now, you’re scrambling to update inventory levels, inform customers, and prevent negative reviews.
Juggling inventory across multiple sales channels can quickly turn into a logistical nightmare. Stock discrepancies, fulfillment delays, and frustrated customers are all too common when there’s no system in place. That’s why businesses turn to multichannel inventory management to keep stock levels accurate and ensure a seamless shopping experience across sales platforms.
So, how can businesses stay on top of inventory across different channels without the chaos? Let’s break down how it works and the best software to help manage your stock. (Hint: It’s Fishbowl.)
Multichannel inventory management explained
Multichannel inventory management helps businesses track inventory across ecommerce platforms, online marketplaces, and even physical stores — all in real time. Instead of manually updating stock levels every time a sale happens, a centralized system syncs everything automatically. Whether you’re selling on eBay, Walmart, or through your own website, you always have an up-to-date view of what’s in stock.
Using cloud-based multichannel systems ensures that data syncs across platforms. Although some on-premise systems exist, they might not be ideal for businesses managing stock across locations or hoping to scale to more sales channels.
With the right multichannel inventory management software, businesses can:
- Automate order fulfillment by routing orders to the nearest warehouse or supplier for faster shipping
- Monitor inventory turnover with demand forecasting so stock levels match customer demand without excess inventory or shortages
- Seamlessly integrate with ecommerce platforms like Shopify, Amazon, eBay, and Walmart to keep all data in one place
- Save time and reduce manual work by automating purchase orders, reorders, and inventory updates
- Enhance customer satisfaction with faster order processing and accurate stock availability
How it works
A cloud-based inventory system instantly updates stock across all platforms when a product sells. This eliminates the need for manual updates, prevents costly errors, and makes managing inventory much easier.
A robust system like Fishbowl goes even further by automating warehouse management, sales orders, and shipping processes, so every sale is processed smoothly. Plus, Fishbowl Commerce Suite supports product information management, meaning you can update the details of a product in Fishbowl and have the information change across every channel it’s connected to.
Single-channel vs. multichannel inventory management
How you track inventory and fulfill orders depends on how many sales channels you manage.
With a single-channel approach, stock management is fairly simple — you track inventory for just one store, and orders are processed from a single warehouse or location. But as soon as you start selling through multiple platforms, you need a way to manage inventory across multiple channels without risking stockouts, overstocks, or fulfillment delays.
Here’s how the approaches differ:
|
Feature |
Single-channel inventory management |
Multichannel inventory management |
|
Number of sales channels |
One (e.g., just your website or a single retail store) |
Multiple (e.g., Amazon, Shopify, Walmart, eBay, and physical stores) |
|
Inventory tracking |
Stock is updated only for one platform |
Stock needs to be updated across all channels |
|
Risk of overselling |
Low — since there’s only one channel to update |
High — without proper inventory software that reflects changes as they occur, the same product can be sold multiple times |
|
Stock visibility |
Limited — only shows inventory for one channel |
With the right system, centralized information gives a clear picture of stock across all warehouses and sales platforms |
|
Order fulfillment |
Managed through one system |
Unified order management system required to streamline fulfillment |
|
Automation and efficiency |
Basic, often involves manual updates |
Accuracy relies on cloud-based inventory systems for automation, demand forecasting, and order processing |
|
Scalability |
Best for small businesses with a single store |
Essential for growing businesses selling across multiple online marketplaces |
Benefits of multichannel inventory management
Selling on multiple ecommerce platforms is a smart way to reach more customers, but it also comes with challenges. Without a reliable system to manage inventory across multiple channels, stock levels can quickly become outdated and lead to errors. That’s why multichannel inventory management tools make a difference.
Here’s more about the benefits of implementing a robust multichannel system.
Track stock accurately across all sales channels
When you’re selling on Amazon, Walmart, Shopify, and other marketplaces, keeping track of stock manually is nearly impossible. In the time it takes you to update a spreadsheet to record a sale and adjust the stock level across sites, three more sales could happen. A centralized inventory system updates stock in real time, so the moment a sale is made on one channel, inventory adjusts across all others.
Imagine running a holiday sale. Without an automated system, you could easily sell out of an item on your brand’s website while customers continue purchasing it on third-party platforms. Overselling leads to disappointed buyers and canceled orders.
Prevent stockouts and overstocks
A single-channel business only needs to track one stock location, but when you’re managing multi-location inventory management, you need to know what you have stored everywhere. Overstocks mean wasted storage costs, while stockouts result in lost sales and frustrated customers.
A multichannel inventory management system helps businesses maintain the right balance by automating demand forecasting, setting reorder points, and monitoring inventory turnover. For example, let’s say you receive a notification that you have low stock of a high-demand good at a distribution center. The system can help you determine whether you need to reorder or if you have the product in stock in a nearby warehouse, saving you from buying more of an item you already have.
Fulfill orders quickly and efficiently
Juggling orders from multiple sales channels is a headache when done manually. A cloud-based order management system consolidates all order details in one place, streamlining the fulfillment process.
Say a customer places an order on eBay and another on Shopify — instead of processing them separately, everything is managed in one system. The warehouse team receives notice of both sales so they can pick and pack the orders simultaneously. This results in faster shipping, fewer mix-ups, and happier customers.
Save time with automation
Instead of manually updating stock across different platforms, multichannel inventory management software automates inventory updates, syncs orders, and integrates with shipping carriers. This means no more switching between dashboards or manually adjusting numbers. Automation reduces human error and frees up valuable time for businesses to focus on growth rather than repetitive inventory tasks.
Enhance customer satisfaction
Customers expect smooth and reliable shopping experiences. And with real-time inventory control, businesses can prevent order cancellations resulting from stockouts, ensuring customers only buy what’s actually available. A centralized inventory system also improves order fulfillment, so products ship on time, keeping customers happy and encouraging repeat business.
Gain better insights for smarter decision-making
Data is power, and multichannel ecommerce management provides deep insights into metrics like inventory turnover, sales volume, and demand forecasting. Businesses can track which products sell the fastest, predict seasonal trends, and allocate inventory across locations.
While single-channel sellers may also use data analytics, multichannel retailers gain a broader view of inventory movement across multiple platforms, helping them make more informed decisions and reduce stock imbalances.
Common challenges of multichannel inventory management
Multichannel inventory management comes with unique challenges that can disrupt operations and lead to lost sales. Here are some of the biggest hurdles businesses face when handling multichannel inventory management.
1. Inaccurate demand forecasting
Predicting how much stock to keep on hand is already challenging, but when you manage inventory across multiple channels, it becomes even more complex. A product that sells well on Amazon might not move as quickly on Shopify or Walmart, making it harder to balance stock levels or calculate the right amount of safety stock.
Single-channel retailers can rely on sales trends from just one source, but multichannel sellers must analyze multiple data streams to prevent stockouts that frustrate customers or overstocks that tie up capital and increase storage costs.
2. Overselling and stock discrepancies
Selling across multiple ecommerce platforms requires real-time inventory updates. As mentioned, if stock isn’t properly synced, businesses can easily oversell products they don’t have, leading to canceled orders and unhappy customers.
For example, let’s say an online store lists the same product on both Shopify and Amazon. Without a centralized inventory system, a customer could buy the last item on Amazon while another purchases it on Shopify — resulting in a stockout that leaves one customer empty-handed.
Single-channel sellers don’t face this issue because they only have to track inventory for one sales platform, while multichannel sellers must constantly update stock across all marketplaces.
3. Complex order fulfillment
Managing order fulfillment across multiple sales channels means juggling information for different warehouses, shipping carriers, and fulfillment methods. Without a cloud-based order management system, businesses may struggle with delayed shipments or incorrect orders.
For instance, if an Amazon order is supposed to be fulfilled via FBA (Fulfillment by Amazon) but is accidentally processed through the business’s own warehouse, it could lead to shipping delays or incorrect fees. Single-channel sellers, on the other hand, only need to focus on fulfilling orders from one platform, making logistics much simpler.
4. Poor inventory allocation
When businesses use multiple warehouses or fulfillment centers, they need a solid multi-location inventory management strategy to distribute stock efficiently. Otherwise, they risk storing too much inventory in one location while running low in another.
Imagine a retailer with warehouses in New York and Los Angeles. If an order from a West Coast customer is fulfilled from the New York warehouse due to inaccurate inventory tracking, shipping costs increase, and delivery times suffer. Single-channel sellers rarely face this challenge since they usually operate from one primary location.
How to choose the right multichannel inventory management software
With so many options, finding the right multichannel inventory management software can feel overwhelming. The best solution should help you manage inventory across multiple channels, prevent stockouts, and streamline order fulfillment — all without adding unnecessary complexity. Here’s what to look for.
Real-time inventory tracking
Keeping up with stock levels across multiple sales channels is nearly impossible without real-time, cloud-based tracking. The right software should provide live updates so you always know what’s in stock, what’s running low, and when to reorder.
Multi-location inventory management
If you operate multiple warehouses, stores, or fulfillment centers, you need a system that supports multi-location inventory management. This will make sure teams properly distribute and fulfill orders efficiently, no matter where inventory is stored.
Seamless integrations with ecommerce platforms
Seamless integrations mean fewer manual updates, fewer errors, and more efficient multichannel ecommerce management processes. Your inventory software should connect smoothly with major ecommerce platforms like Shopify, Amazon, eBay, and Walmart, as well as any accounting tools you use. Integrating with your accounting tools means you can access inventory, sales, and financial data from one place — leading to maximum visibility.
Automation for smarter inventory control
Manually tracking stock and creating purchase orders is time-consuming and prone to error. The right system should automate key tasks, such as setting reorder points, syncing inventory across online marketplaces, and optimizing warehouse management — so you can focus on growing your business instead of constantly fixing inventory issues.
Cloud-based access
A cloud-based inventory system allows you to track inventory and manage operations from anywhere, whether you’re on the road, in the office, or standing on the warehouse floor.
Scalability
Whether you’re just starting out or expanding to new marketplaces, you need a system that scales with your business for a smooth and centralized workflow. Find a solution that will meet your company’s needs, both now and in the future.
Barcode scanning for efficient warehouse management
The best inventory software should support barcode scanning to speed up order fulfillment and reduce errors. A barcode inventory system ensures that every item is tracked correctly from the moment it arrives in the warehouse to the time it ships out to the customer.
Manufacturing and assembly tracking
For businesses selling custom products or assembled goods, having manufacturing and assembly tracking is essential. The right system should help you track raw materials, manage work orders, and ensure accurate inventory counts for finished goods.
Advanced reporting and analytics
Making data-driven decisions requires real-time insights into your inventory. Look for software that offers customizable reports on stock levels, sales trends, inventory turnover, and order performance. These insights help businesses improve demand forecasting and prevent costly inventory mistakes.
Custom order routing for fulfillment
A smart order management system should automatically route orders to the best fulfillment center based on location, inventory availability, or shipping costs. This reduces delivery times and costs while improving customer satisfaction.
Top multichannel inventory management software
Choosing the right multichannel inventory management software is crucial for businesses looking to manage inventory efficiently across multiple channels. Here are four top solutions.
1. Fishbowl Commerce Suite — The all-in-one inventory solution
Fishbowl makes it easy to stay on top of your inventory, no matter how many sales channels you manage. It offers real-time tracking, automated reordering, and seamless integration with major ecommerce platforms. If you’re juggling stock across multiple warehouses, Fishbowl’s multi-location inventory management ensures you never lose track of where products are. Plus, its automation tools help speed up order fulfillment and reduce human errors.
2. Cin7 — A flexible option for multichannel sellers
Cin7 connects your inventory across different online marketplaces like Amazon, Shopify, and Walmart. It offers strong order management tools, demand forecasting, and even supports kitting, so you can bundle products without messing up stock counts.
3. Skubana — Great for automation and analytics
Skubana is great for sellers who want deep analytics and automation. It handles multi-location inventory management, dropshipping, and high-volume order processing. If you’re looking to optimize inventory turnover and cut down on manual work, Skubana is worth considering.
4. Finale Inventory — Designed for growing businesses
Finale Inventory offers real-time tracking and barcode scanning, making warehouse management and order fulfillment more efficient. It also integrates with multiple sales channels, helping you avoid overselling and keeping your stock levels accurate.
Stay in control across every sales channel with Fishbowl
Managing inventory across multiple sales channels can feel chaotic — but it doesn’t have to be. Fishbowl Commerce Suite gives you the power to manage inventory across multiple channels seamlessly, eliminating stock discrepancies, overselling, and fulfillment headaches. With real-time tracking and automated stock updates, you’ll always know what’s in stock, where it’s located, and how to keep sales flowing smoothly.
Plus, Fishbowl is the #1 choice for QuickBooks users, syncing your inventory and financial data so you can always see what’s selling — all from one platform.
Book a demo today and see how Fishbowl can help you streamline operations and scale your business with confidence.
Frequently asked questions
What types of businesses need multichannel inventory management?
Any business selling products across multiple sales channels — like ecommerce platforms, marketplaces, and physical stores — needs to have strong inventory management processes in place. Without a centralized system, tracking stock levels and accurately fulfilling orders becomes challenging, leading to overselling, stockouts, and frustrated customers.
How does multichannel inventory management improve order fulfillment?
Syncing inventory data in real time allows businesses to process sales from different platforms without delays or errors. This way, when a customer orders, the system automatically updates stock levels across all channels, reducing fulfillment mistakes and improving delivery times.
Can multichannel inventory management software integrate with existing business tools?
Yes! A robust multichannel ecommerce management solution should integrate with your existing ecommerce platforms, POS systems, accounting software, and shipping carriers. This connectivity helps streamline workflows, automate tasks, and maintain accurate records across your entire operation.
Is it difficult to switch to a multichannel inventory management system?
It depends on the software you choose. If you’re moving from spreadsheets or disconnected systems, there might be a learning curve. But a good inventory management system should offer easy onboarding, integrations with your existing tools, and solid customer support to make the transition smooth.
Can multichannel inventory management help me avoid running out of stock?
Absolutely! Since the system tracks stock levels across all your sales channels in real time, it sends low stock alerts and can even automate reordering. This means fewer stockouts, fewer frustrated customers, and more sales.
