Shopify inventory management: Definition, importance and top 5 best apps for your online store
In the past, store owners always found difficulties in controlling the amount of goods as well as tasks relating to it. Currently, because of the development of cutting-edge technology, owners tend to apply technology to different activities of their business. Especially on the edge of online business, an inventory management system is an indispensable part. Since it is a placeholder for your money. In this blogpost, I will reveal an overview of Shopify inventory management. Besides that, the top five best apps for online stores will be proposed.
What is a Shopify inventory management?
Shopify inventory management is an indispensable activity in a business. It enables you to detect the number of available products as well as features of products. More specifically, it is the weight, the dimension and the location (if you have multiple sales channels). Thus, you can avoid being out of stock. Besides that, you also know when you should put materials in your warehouse. All in all, an efficient inventory management system provides you with deep insights for you to assess your business at its true worth.
Why do we need a Shopify inventory management?
Avoid being out of stock, overselling, overstocking:
Firstly, the eCommerce business tends to import a large amount of products. Thus it results in the serious problem in allocating money on inventory expenses. Yet, on the other hand, sometimes store owners cannot control the available goods in your warehouse. It will make you fail to keep engagement with their customers. All of these two problems will pose threats to your customer experience and your reputation on the competitive market.
According to a recent study, 72% of online shoppers will find your direct competitor for their desired product, if you are out of stock. Moreover, 67% of customers in that group will continuously make transactions with your competitor in future. As a result, you will lose a large amount of loyal customers. An inventory management system enables customers to know the amount of products in your warehouse. If it is unavailable in your inventory, you can immediately talk to your customers about the time of its restock. Overall, it will not only boost your customer experience but also persuade customers to choose other goods.
Manage your cash flow effectively:
Inventory management provides you with a big picture of your budgets and assets. Based on it, you can make a decision on the amount of budget on stocking as well as different activities in your business. Since your business doesn’t contain only products. Besides products, marketing money is also responsible for the thrive of your business. All in all, knowing exactly the amount of available products helps you to advance the accurate figure for stocking. The more accurate you are, the more effectively you control your budget.
Improve the productivity of multi channel selling and estimate markets’ demand:
Definitely, manually tracking and fulfilling order is a challenging task in bulk selling. Moreover, when you sell in multiple channels, how do you control the stock level and order fulfillment. Thus a good Shopify inventory management is an unavoidable criteria if you desire to succeed.
An inventory management enables you to control your stock level conveniently via the Internet. Furthermore, with support of inventory management, you can estimate a sufficient amount of products. Moreover, it also helps you to detect and forecast markets’ demand. Based on it, you estimate the amount of products you should import in different periods. Finally, an overview of the market assists you to beat your rival competitor.
Required criteria of a Shopify inventory management:
On the Shopify App Store, there are a wide range of distinctive inventory management apps. Thus you find difficulties in making your decision. In order to choose a potential ones, you should follow these criteria:
- Offer continuous and detailed inventory tracking: Please ensure that your chosen one enables you to detect order fulfillment. Furthermore, it has to inform you on when you should import more products.
- Integrate with other apps: Please remember that your chosen one has to be compatible for your different apps.
- Have sales forecasting capabilities: Market trends and growth rate are two variables that IMS have to offer you. It is useful for your market forecasting.
- Contains POS integration: You sell on different channels. Thus your chosen one must be able to synchronize the sale figures between different channels. It can be in-store sales, online sales and more.
The top five the best Shopify inventory management apps:
Before you make a decision, please consider carefully on its price, its functionality, its limitations.
Stock Sync is one of the most outstanding Shopify inventory management apps. More specifically, it achieves more than four hundred five-star comments. Moreover, you can experience it for 14 days before registering for an account. In particular, Stock Sync offers both free and paid plans (9 dollar per month).
In terms of functionality, you are able to update their inventory automatically, manipulate product pricing, manage multiple suppliers, export inventory and sync to vendor websites. Additionally, you also customize a timetable for receiving inventory reports. More importantly, you can manage both mortar-and-brick and online stores in a unified solution.
TradeGecko is a Shopify IMAs being suitable for multiple channel sellers. Related to its price, it provides you with a 14-day free trial plan for you to try it. After that, you have to pay 39 dollar for 50 orders per month.
TradeGecko enables you to manage both inventory and sales level on different sales channels. Once you access this Shopify app, they automatically send an order to suppliers. Hence, it will prevent you from being out-of-stock. Particularly, it also connects to different accounting apps such as Xero and Quickbooks. Thus it is handy for you to generate financial reports as well as markets’ demand forecasting.
Sellbrite enables customers to sell on different prestigious channels. It can be Amazon, Ebay and Etsy. For its fee, you have to pay 20$ per month for 100 orders. Yet if you achieve up to 1000 orders per month, you only need to pay 160$ per month.
Stocky is one of the most functional IMAs on Shopify. More specifically, it consists of a wide range of powerful features for forecasting. These are demand forecasting, automatic stock updates and stock transfers.
In particular, these forecasts are estimated based on the seasonal trends. Hence, it is easy for store owners to calculate the potential number of products. Furthermore, according to orders and sales performances, it also provides you another type of market forecast. It is suitable for both seasonal and non-seasonal products.
ShipHero is a combination of shipping and IM apps. Particularly, you can synchronize your tasks in different sales channels as well as process it automatically. Thus, it enables you to reduce your repetitive task. Furthermore, it contains a large amount of advanced features. These are purchase order management, returns management, advanced reporting and more. Moreover, your chosen app can integrate with Amazon, Ebay and USPS.
Finally, in terms of price, ShipHero costs 499$ per month.
Here is a big picture of Shopify inventory management for you to boost your business. I hope it will be useful for you to choose the most suitable Shopify IMAs being suitable for your financial purposes.
Please remember ArrowHiTech always offers a wide range of excellent Shopify themes and apps.If you have any problem in setting up your online store from scratch, do not hesitate to meet ArrowHitech. Our 12-year experience staff in Shopify development and outsourcing will help you set up your dream online store.