Best Online Inventory Management Software in 2025

Businesses that deal with selling physical goods in large quantities require robust and effective online inventory management systems. However, picking the best one from a sea of similar products available can be challenging. To help you easily navigate the complex selection process and choose the best online inventory management software for your business, this buyer’s guide details the list of essential features of inventory management software online for businesses of all sizes.

An excellent strategy for finding online inventory management software for your business is to sign up for at least a few free trials or demos from well-known vendors of such systems. With this method, you put the key features to the test and compare the effectiveness of the various options. Exploring free trials also helps you better understand what inventory management software is.

Check out free trials for monday.com, Katana, Sortly, and Zoho Inventory. They are the services that have earned the highest SmartScore rankings and Customer Satisfaction Ratings in our online inventory management software reviews.

There are essentially three types of people who purchase inventory management software online:

• Type of Industry – Retail, manufacturing, and distribution all require slightly different inventory management systems. Different programs provide specialized functionality useful to different industries. Within a single industry, there can be a wide variety of solutions. For instance, online store inventory management software is offered for online clothes stores, auto parts, etc. However, some solutions can be implemented in any kind of store.
• Company size – Differentiating between a single store, a chain with five or six locations, and a franchise with 80 locations, inventory control requirements vary widely depending on company size. For this reason, it is important to choose an online system appropriate for the size of your business to ensure that your needs are met without overspending on features you will never use.
• Software requirements – Different businesses have different software needs; some are content with a specialized online inventory management solution, while others seek out all-in-one programs that also facilitate business intelligence, supply chain management, project management, cost estimation, and accounting.

1. NetSuite ERP – Manage stock levels in multiple warehouses. It is easy to track stock levels across your organization and ensure you have enough to fulfill orders and operate. This software streamlines your supply chain and other financial management operations and automates supply chain planning and warehouse inventory management.
2. ShipBob – This innovative ecommerce solution helps with your ecommerce portal, stock management, and order processing. It manages stock, shipping, and logistics and is ideal for low- and medium-volume businesses that can’t afford many employees.
3. monday.com – Known as an excellent digital workspace for teams, this tool doubles as an inventory management system. Its inventory template helps you track components, products, contacts, and order fulfillment procedures, letting you work without limits. Your team and vendors can communicate anytime, anywhere. The mobile app lets you make changes as needed.
4. Katana – Get a reliable production planning, scheduling, and inventory control system. This solution lets you see raw materials, finished goods, inventory levels, sales and purchase orders, and recipe instructions in one interface. Its visual dashboard gives you a bird’s eye view of orders, processes, deadlines, and the company.
5. GEP NEXXE – This AI-powered supply chain management software improves enterprise-level businesses’ transparency, adaptability, intelligence, and resilience. You get complete supply chain control using cutting-edge technology. Top analytics and forecasting tools help you manage product supply and demand.

Free and basic tools exist with highly sophisticated and expensive solutions in the vast category of online inventory management software. Some programs simply list orders, while others are more robust and let sales departments track and categorize orders, provide dynamic product information, and even do custom branding based on the user’s preferences. Deployment options include the following:

• Software-as-a-service (SaaS): These are typically hosted on the provider’s server for a monthly fee. Installation, updates, and maintenance are not the responsibility of the user.
• Cloud-hosted:  Due to their widespread availability and lack of recurring costs like updates and maintenance, these basic plans are typically the most cost-effective option for the client.

Moreover, some products use a combination of deployment strategies. That is to say, customers have the option of using either the cloud-based interface or a local client. Many people find the most adaptability in these.

The main functions of your next warehousing and inventory management system will include:

• Product categorization. Products can be moved between groups and channels and sorted by various criteria such as brand, price point, originator, distribution method, and more. Furthermore, you get complete control over your stock levels, as you can monitor each item’s sales and production, as well as anticipate and meet consumer demand.
• Sales and purchase orders. The best inventory management software will allow you to keep track of orders, inventories, invoices, and more from a central hub, greatly simplifying the process of running your business.
• Electronic scanning. Because it facilitates electronic data interchange and responds to developments in international trade, this function is extremely useful. Electronic scanning and tracking of assets introduce a brand new level of inventory control, enabling not only electronic shipment but also full warehouse tracking.
• Automatic ordering. Business owners can save time and effort by using automated ordering to keep better tabs on billing and sales projections. Any retailer, whether selling a single item or thousands, will benefit from this kind of multichannel inventory management.
• Dynamic product information. By “dynamic product information,” we refer to having easy access to and complete command over all of your available stocks. This allows for streamlined product management and speedy data integration across the company’s software stack.

Based on our research, here are the three most important gains made by businesses with a good inventory management system in place:

• Efficiency and Speed. Simpler processes like data entry and inventory counts are made possible by using an inventory management system. A manual inventory count can take days, but with an inventory management solution, you can get the job done in a matter of hours.
• Document Generation. Account statements, invoices, checks, and purchase orders are just some of the documents that can be automatically generated by the system and sent to the appropriate people in charge. If they get low on a product, they can set up an automatic reorder.
• Insightful Data. Insightful reports on stock levels, sales, and best-sellers are just some of the information that can be gleaned from an inventory management system.
• Simple Coordination. It can be challenging to coordinate activities across multiple facilities and time zones. Having inventory management software that supports collaborative editing and real-time messaging among users makes this process much more manageable. Features for managing teams, such as delegating work, are typically included in products as well.

When deciding on online inventory management software, price plays a significant role. This is typically associated with the pricing structure’s payment terms. Here are some examples of common pricing structures in use today.

• Free. There are free, open-source software options out there, but using them may require some technical know-how. There are also freemium versions of popular products that are well-suited to start-ups and smaller enterprises.
• Monthly Plans. The most common business model in use today is likely to be a monthly subscription service. This is ideal for companies that cannot make a long-term platform commitment yet.
• Yearly Plans. In most cases, annual subscriptions will save you money over monthly ones. Additionally, subscriptions are renewed annually. Thus, there will be less of a fuss. However, this is only viable for companies that can commit to a program, as leaving the program is more difficult.

Here are some important inventory management trends that you should keep in mind.

Cloud technology and IoT enable hybrid work setups

Cloud technology streamlines inventory management because the vendor handles servers, software updates, and IT issues. You can synchronize purchases and inventory levels across stores, warehouses, and supply chains, regardless of location.

Paired with cloud technology, the Internet of Things (IoT) connects computers and other devices, allowing hybrid work setups and remote working, which is now growing.

Omnichannel connectivity for seamless communications

The omnichannel experience allows vendors, manufacturers, transporters, and retailers to communicate easily. You can sell goods and services across various channels—physical stores, social media, apps, online marketplaces, and company websites. Customers can look up prices online and get items from their preferred store.  It also helps your customers monitor their order status and any delays in shipping or delivery.

AI and ML technologies enhance inventory systems by learning

Artificial intelligence (AI) and machine learning (ML) integrate inventory levels, track movement across complex networks, and identify inefficiencies that increase costs. IoT integration gives AI and ML more data to study and strengthens them.

Warehouse automation and multi-warehousing boost efficiency

Industry experts expect warehouse automation to increase, thus reducing labor costs. With advances in robotics, AI, and ML, automation is expanding, and software and hardware are becoming more affordable.

At the same time, global e-commerce and online marketplace companies reaping the benefits of multi-warehousing, enjoying reduced shipping time and transportation costs. Distributed inventory management requires multiple regional, national, or world distribution points. Inventory management tools that allow multi-warehousing helps with geographically streamlined supply chain management and faster deliveries.

Warehouse control helps get products where they need to be, but there are some drawbacks:

• Foreign currency risk. Check your inventory management system if you sell in multiple currencies. You may lose money when importing inventory and paying in a different currency (usually higher). Unless you buy the transaction currency in advance, you will pay more for the inventory than expected. Fix this ASAP if you buy and sell using the same system.
• Thefts. While good inventory management systems can reduce theft and fraud, they can’t eliminate it entirely. More employees with system access and inventory control will make it harder for them to steal, but it will also make it harder to find the culprit.
• Inventory damage. Some managers get spoiled and expect inventory management systems to handle operations beyond their capabilities because they handle most of the order management burden. Managers may tend to neglect inventory control, damage prevention, and compliance with all rules and regulations.

It can be challenging to find an appropriate online inventory management system. Think about more than just cost, features, and returns. Think about the end users alongside the software itself.

Many organizations are not yet prepared to embrace digital transformation or change. But if you’re lucky, you’ll work for a company that’s always trying to improve. Even so, you will still have to endure growing pains as you transition to the new platform.

When implementing a software solution, new processes and responsibilities must be established. Also, this calls for a degree of skill development on your part. The dynamics and relationships at work will also shift. For this reason, keep in mind that these shifts are inevitable. You get more than just a piece of software. You are the agent of change.

Ultimately, it’s not enough to simply buy a new software solution. If you want a steady return on this investment, you’ll need to give it more attention.