Best Inventory Management Software for Small Business in 2026

Startups and SMEs that sell products can benefit from the best small business inventory management software. But it can be a difficult task to pick the best one among the plethora of available tools in the market. This guide details the essential features of inventory management software for small businesses, determines the different types of online solutions, and helps you to choose which suits your specific business needs.

To start off, register for a few free trial demos or plans from leading small business inventory management software companies. You will then be provided with the opportunity to study the key features and compare each tool’s various functionalities. These small business inventory management systems also obtained the highest SmartScore rankings and Customer Satisfaction Rating in our small inventory management software reviews: NetSuite ERP, ShipBob, monday.com, Katana, Cova and Ruby Has Fulfillment.

We classified the buyers of inventory management tools for small business into the following:

• Company size – Inventory control requirements are distinct for an individual store, covering five or six locations, and an 80-unit franchise. So pick one that suits your company size to make sure that the system can fulfill your needs without paying for other unnecessary features.
• Industry type – Inventory software are distinct for various industries, like manufacturing, retail, and distribution. Each program provides special features for a specific industry. Even within a particular industry, there are various solutions. For example, retail inventory platforms are offered for gas stations, auto parts, and restaurants.
• Software prerequisites – Some companies want to have full-suite solutions that offer features, such as supply chain management, business intelligence, accounting, and project management, among others. Some inventory management small business software that don’t have these built-in features integrate with third-party software instead.

• NetSuite ERP: This is the best inventory management software for your small business. It enables the tracking of the number of resources in multiple locations and guarantees that they have ample amount of supplies.
• ShipBob: A present-day and advanced inventory management software for small business that aims to merge the inventory management, ecommerce portal, and control of orders all in a single venue.
• monday.com: This small business inventory management system consolidates all information in one, accessible place and empowers team members and agents to make sound business decisions.
• Katana: Considered one of the best inventory management software for small business. It provides business owners and manufacturing firms with a powerful and effective production planning, scheduling, and inventory control program.
• Ruby Has Fulfillment: An inventory management software for small retail business owners. It offers same-day fulfillment, plus, accurate order and inventory management to ecommerce businesses.

• On-premise. Such small business inventory management software are covered by one license and hosted on the local server of the client. They are deemed the most costly ones because they call for elaborate setups and sometimes, hardware installation.
• Cloud-based. Most cloud-based inventory management software for small business owners are free. They are considered affordable due to their all-inclusive access and because they do not require upgrades or maintenance fees.
• Software-as-a-service (SaaS). An inventory management system small business owners use may also charge on a per-month basis and be hosted on the server of the provider. The business owner is not held responsible for installation, maintenance, and upgrading.

• Sales/purchase orders. Inventory management for small business software helps you facilitate purchases and sales from one program. They are usually loaded with inventory controls, order tracking, invoice management systems, and more.
• Dynamic product information. This means access to complete inventory control of your stocks and close monitoring of every available product. In this manner, products can be handled easily, and their sales information can be speedily synchronized with your other software architecture.
• Product categorization. This lets you transfer one product from channel to channel and classify them by name, type, price, and so on. You can also track each item and predict and support demand.
• Automatic ordering. Automated billing features of the best inventory management software small business optimize billing management and tracking. This appeals to many retailers, no matter how many products they are selling.
• Electronic scanning. This allows electronic data exchange and serves international selling trends. The electronic scanning and monitoring of assets are a new, improved way of inventory control, also enabling electronic shipment and full warehouse monitoring.

• Easy Collaboration. An inventory management system for small business makes warehouse processes and management easy by enabling real-time communication within the program and concurrent editing. Many apps also offer team management features such as task assignment.
• Document Generation. Managers can use it to automatically produce different types of documents, like invoices, account statements, checks, and purchase orders. They can also request a new batch of products if they are low on stocks.
• Efficiency and Speed. From data inputting to inventory, everything is faster with an inventory management system for small business. Manually counting an inventory can take several days, but the system can do this task in just a few hours.
• Insightful Data. Retail inventory management software for small business provides data reports, such as how many products have been sold, how many are left in stock, and which products are most popular.

• Ever-changing demand. Consumer demand is continuously changing, which makes storing inventory complicated. There are times that you will end up with either too little or too many supplies.
• Supply chain complexity. Global supply chains are dynamic and can lead to roadblocks in inventory planning and management. Manufacturers and distributors alike are always affected by uncontrollable economic booms and plunges that affect raw material costs and availability.

• Free. Many inventory management software vendors offer free versions to help small businesses and growing enterprises get started with their ventures.
• Monthly Plans. This is the most in-demand plan for an inventory management system for small business. It fits businesses that cannot commit yet to a long-term plan.
• Annual Plans. Yearly subscriptions are normally cheaper than monthly subscriptions. You also need to renew your plan once a year only, which is more hassle-free. But this is ideal for businesses that can commit to a program for a long time as opting out from it is more difficult.
• One-Time License. Other on-premise inventory management systems for small business are sold through this scheme. But some vendors require one license for each piece of equipment and this can make it more expensive.

Selecting the best inventory management software for small businesses is not easy as you have to consider many factors, which include features, pricing, and benefits. You also have to consider the people that will use it the most.

Moreover, adopting a new solution is always a challenge, even for companies that are primed for digital change. It also means adopting new processes, new roles, new skills, new working dynamics, and new relationships.

Needless to say, you do not just buy the best inventory management software for your small business, you will also bring many changes to your organization. Carefully think about this investment so that you will be able to see a constant stream of ROI from it in the long run.