{"id":15626,"date":"2026-05-14T12:00:18","date_gmt":"2026-05-14T12:00:18","guid":{"rendered":"https:\/\/www.8ration.com\/blogs\/?p=15626"},"modified":"2026-05-14T12:00:18","modified_gmt":"2026-05-14T12:00:18","slug":"build-ecommerce-inventory-management-system","status":"publish","type":"post","link":"https:\/\/www.8ration.com\/blogs\/build-ecommerce-inventory-management-system\/","title":{"rendered":"How to Build an Ecommerce Inventory Management System"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Having a successful online business without the right system for inventory management is like playing a game in a city without a map. You may find yourself somewhere in the end, but you will lose customers, time and money along the way. Creating a solid inventory management system is one of the most influential investments you can make in your ecommerce business, regardless of whether you&#8217;re just getting started or expanding an established brand.<\/span><\/p>\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"15039\" class=\"elementor elementor-15039\" data-elementor-post-type=\"elementor_library\">\n\t\t\t<div class=\"elementor-element elementor-element-525d842 e-con-full e-flex e-con e-parent\" data-id=\"525d842\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-83d5b21 elementor-widget elementor-widget-n-accordion\" data-id=\"83d5b21\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;,&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:400,&quot;sizes&quot;:[]}}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1380\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-1380\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Key Takeaways: <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-caret-up\" viewBox=\"0 0 320 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M288.662 352H31.338c-17.818 0-26.741-21.543-14.142-34.142l128.662-128.662c7.81-7.81 20.474-7.81 28.284 0l128.662 128.662c12.6 12.599 3.676 34.142-14.142 34.142z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-sort-down\" viewBox=\"0 0 320 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M41 288h238c21.4 0 32.1 25.9 17 41L177 448c-9.4 9.4-24.6 9.4-33.9 0L24 329c-15.1-15.1-4.4-41 17-41z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1380\" class=\"elementor-element elementor-element-32b2e80 e-con-full e-flex e-con e-child\" data-id=\"32b2e80\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-9118172 bullet_points elementor-widget elementor-widget-html\" data-id=\"9118172\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t\t<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A good ecommerce inventory management system can help make sure that you don&#8217;t run out of stock, oversell, or stock dead inventory.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Each of the platforms (Shopify, BigCommerce and Magento) features a different degree of inventory management capabilities.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">To ensure seamless, real-time synching of stock across all sales channels, multi-channel ecommerce inventory management needs a unified inventory management system.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A scalable system has 3 pillars: real-time tracking, demand forecasting, and warehouse integration.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Reporting and analytics are a must, you can&#8217;t make improvements to what you don&#8217;t measure.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">As important as the technology is, so is SOP and training of the team.<\/span><\/li>\n<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Key Takeaways:\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A good ecommerce inventory management system can help make sure that you don&#8217;t run out of stock, oversell, or stock dead inventory.\\nEach of the platforms (Shopify, BigCommerce and Magento) features a different degree of inventory management capabilities.\\nTo ensure seamless, real-time synching of stock across all sales channels, multi-channel ecommerce inventory management needs a unified inventory management system.\\nA scalable system has 3 pillars: real-time tracking, demand forecasting, and warehouse integration.\\nReporting and analytics are a must, you can&#8217;t make improvements to what you don&#8217;t measure.\\nAs important as the technology is, so is SOP and training of the team.\"}}]}<\/script>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n<h2><b>What Is an Ecommerce Inventory Management System?<\/b><\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-15637 size-full\" src=\"https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/What-Is-an-Ecommerce-Inventory-Management-System.webp\" alt=\"What Is an Ecommerce Inventory Management System\" width=\"1050\" height=\"420\" srcset=\"https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/What-Is-an-Ecommerce-Inventory-Management-System.webp 1050w, https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/What-Is-an-Ecommerce-Inventory-Management-System-300x120.webp 300w, https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/What-Is-an-Ecommerce-Inventory-Management-System-1024x410.webp 1024w, https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/What-Is-an-Ecommerce-Inventory-Management-System-768x307.webp 768w\" sizes=\"(max-width: 1050px) 100vw, 1050px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Ecommerce inventory management systems are a collection of processes, tools, and technologies to monitor, manage, and optimize your inventory throughout all sales channels. It lets you know what you&#8217;re buying, where it&#8217;s coming from, how fast it&#8217;s moving and when to reorder, in real time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you don&#8217;t have one, you can risk:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stockouts: <\/b><span style=\"font-weight: 400;\">When the products are unstocked and the sale is lost at the last moment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Overselling: <\/b><span style=\"font-weight: 400;\">Selling products that are not on hand, causing cancellations and refunds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dead stock:<\/b><span style=\"font-weight: 400;\"> Products that are on shelves that are cash and space drains<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Unrealistic reporting: <\/b><span style=\"font-weight: 400;\">Making a purchase decision when there is an error in reporting.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">All four of these pain points are eliminated in a well-built system. Any e-commerce inventory management system should have the following core functions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tracking stocks in real time, at all locations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Managing purchase orders and suppliers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Forecasting and reorder automation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Easy integration with your sales systems and platforms.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In-depth reporting and analytics dashboards.<\/span><\/li>\n<\/ul>\n<h2><b>Step 1: Audit Your Current Inventory Setup<\/b><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-15635 size-full\" src=\"https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/Step-1-Audit-Your-Current-Inventory-Setup.webp\" alt=\"Step 1 Audit Your Current Inventory Setup\" width=\"1050\" height=\"420\" srcset=\"https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/Step-1-Audit-Your-Current-Inventory-Setup.webp 1050w, https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/Step-1-Audit-Your-Current-Inventory-Setup-300x120.webp 300w, https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/Step-1-Audit-Your-Current-Inventory-Setup-1024x410.webp 1024w, https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/Step-1-Audit-Your-Current-Inventory-Setup-768x307.webp 768w\" sizes=\"(max-width: 1050px) 100vw, 1050px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Before constructing anything new, you must know what you&#8217;re dealing with. The first step is to do a comprehensive inventory audit. Count all SKUs, make note of their location, their cost and how fast they sell. This provides you an inventory health baseline, a snapshot of your inventory health at this moment in time. During the audit, ask yourself the following questions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are the fastest-selling products and the slow sellers?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What areas are your worst stockout or overstock challenges?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is the number of suppliers and what are their lead times?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do your records show accuracy or inaccuracies between your records and actual stock levels?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you handle a single channel or multiple channels?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Each answer will influence all the choices you make when you create your system. Companies that fail to do so will simply be digitizing their current chaos and not resolve it.<\/span><\/p>\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"14783\" class=\"elementor elementor-14783\" data-elementor-post-type=\"elementor_library\">\n\t\t\t<div class=\"elementor-element elementor-element-09a4ac2 e-con-full e-flex e-con e-parent\" data-id=\"09a4ac2\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6f0d772 elementor-widget elementor-widget-heading\" data-id=\"6f0d772\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Build Smart Inventory Management System<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9f6fb42 elementor-widget elementor-widget-text-editor\" data-id=\"9f6fb42\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tTake full control of your stock with a modern inventory system designed for ecommerce growth. Simplify tracking, updates, and reporting in one place.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8414934 elementor-widget elementor-widget-button\" data-id=\"8414934\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.8ration.com\/contact-us\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fab-telegram-plane\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M446.7 98.6l-67.6 318.8c-5.1 22.5-18.4 28.1-37.3 17.5l-103-75.9-49.7 47.8c-5.5 5.5-10.1 10.1-20.7 10.1l7.4-104.9 190.9-172.5c8.3-7.4-1.8-11.5-12.9-4.1L117.8 284 16.2 252.2c-22.1-6.9-22.5-22.1 4.6-32.7L418.2 66.4c18.4-6.9 34.5 4.1 28.5 32.2z\"><\/path><\/svg>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get Started<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n<h2><b>Step 2: Choose the Right Ecommerce Platform With Strong Inventory Tools<\/b><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-15636 size-full\" src=\"https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/Step-2-Choose-the-Right-Ecommerce-Platform-With-Strong-Inventory-Tools.webp\" alt=\"Step 2 Choose the Right Ecommerce Platform With Strong Inventory Tools\" width=\"1050\" height=\"420\" srcset=\"https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/Step-2-Choose-the-Right-Ecommerce-Platform-With-Strong-Inventory-Tools.webp 1050w, https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/Step-2-Choose-the-Right-Ecommerce-Platform-With-Strong-Inventory-Tools-300x120.webp 300w, https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/Step-2-Choose-the-Right-Ecommerce-Platform-With-Strong-Inventory-Tools-1024x410.webp 1024w, https:\/\/www.8ration.com\/blogs\/wp-content\/uploads\/2026\/05\/Step-2-Choose-the-Right-Ecommerce-Platform-With-Strong-Inventory-Tools-768x307.webp 768w\" sizes=\"(max-width: 1050px) 100vw, 1050px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The backbone of your inventory system is your <a href=\"https:\/\/www.8ration.com\/services\/ecommerce-store-development\/\">ecommerce platform<\/a>. The choice of platform (and its configuration!) will dictate the amount of manual effort and the accuracy of real-time inventory data. Among these platforms, Shopify, BigCommerce, and Magento stand out as the most prominent.<\/span><\/p>\n<p><strong>Read More: <a href=\"https:\/\/www.8ration.com\/blogs\/best-ecommerce-technology-stack-enterprise\/\">Best Scalable Ecommerce Technology Stack for Enterprise<\/a><\/strong><\/p>\n<h3><b>Shopify Inventory Management\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Shopify inventory management is among the most user-friendly solutions. Shopify&#8217;s inventory system is built-in, and it contains:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Product &amp; variant level stock tracking<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Low stock alerts and notifications<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multi-location inventory management, from warehouse to retail stores, and fulfillment centers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatic stock update when orders are placed or refunded<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An easy-to-use dashboard that tracks inventory movement in real time<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As a growing brand, <a href=\"https:\/\/www.8ration.com\/services\/shopify-store-development-company\/\">Shopify&#8217;s<\/a> built-in inventory management capabilities can be enough, particularly when using apps like Stocky or other third-party solutions like Cin7 or Linnworks. One of Shopify&#8217;s strongest features is its app ecosystem, with hundreds of inventory-specific apps in the Shopify App Store to further enhance your capabilities without moving to another platform.<\/span><\/p>\n<p><strong>Read More: <a href=\"https:\/\/www.8ration.com\/blogs\/how-to-hire-shopify-expert-developer-headless-commerce\/\">How to Hire a Shopify Expert Developer for Headless Commerce<\/a><\/strong><\/p>\n<h3><b>BigCommerce Inventory Management<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Unlike Shopify, <a href=\"https:\/\/www.8ration.com\/services\/bigcommerce-development-company\/\">BigCommerce<\/a> has more inventory management capabilities natively. Key features include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Low-stock notifications and per-SKU inventory tracking<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multiple variants of products with precise stocking. Unlimited product variants and stock control at a granular level<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Open API Architecture of Enterprise-class WMS and ERP products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stock visibility controls so no out-of-stock products will appear in customers&#8217; carts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Advanced B2B capabilities with bulk pricing rules and advanced catalog management<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">BigCommerce is an excellent option for midsize and B2B companies that want to get serious about inventory control, but with less coding and developer effort.<\/span><\/p>\n<h3><b>Magento Inventory Management<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The most powerful and customizable of the three is Magento inventory management, the current name of which is Adobe Commerce. Standout capabilities include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multi-Source Inventory (MSI) stock management for multiple physical sources<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Priority fulfillment and inventory assignment rules for channels<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Custom inventory logic to your specific business needs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tight integration with any third party logistics (3PL) system or ERP system<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Complete visibility of all stock management at enterprise level<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The downside is <a href=\"https:\/\/www.8ration.com\/services\/magento-development\/\">Magento<\/a> demands a dedicated developer team to configure and maintain, which can be difficult for smaller businesses. If you&#8217;re looking for the most challenging Magento inventory management, you can&#8217;t find an easier one than in large businesses with a complicated supply chain and high order volumes.<\/span><\/p>\n<p><strong>Read More: <a href=\"https:\/\/www.8ration.com\/blogs\/how-to-hire-magento-developers\/\">How to Hire Magento Developers: 5 Red Flags to Avoid in 2026<\/a><\/strong><\/p>\n<h2><b>Step 3: Connect The Quotes<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In today&#8217;s e-commerce world, real-time stock tracking is essential, whether you&#8217;re using one platform or another. A customer&#8217;s order should reflect live inventory changes when they order. If a return occurs, the stock should be added back at the same time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To do this, do the following preparatory steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Give each product a distinct SKU:<\/b><span style=\"font-weight: 400;\"> SKUs are for tracking. If you do not have them your system can&#8217;t tell the difference between a blue t-shirt and a large blue t-shirt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Get all stock sources and locations in sync together:<\/b><span style=\"font-weight: 400;\"> from warehouses, retail stores and fulfillment centers, all connected to a single inventory database.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Integrate your point-of-sale system: <\/b><span style=\"font-weight: 400;\">sales at the point of sale require the same inventory pool to be updated as online sales.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Use automation to make stock adjustments: <\/b><span style=\"font-weight: 400;\">don&#8217;t depend on manual changes for inventory related to orders.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Set low stock levels:<\/b><span style=\"font-weight: 400;\"> all products should have alerts set at a level they would not want to be reached without being notified of.<\/span><\/li>\n<\/ul>\n<p><strong>Read More: <a href=\"https:\/\/www.8ration.com\/blogs\/ecommerce-app-development-cost\/\">eCommerce App Development Cost: Your Ultimate Guide for 2026<\/a><\/strong><\/p>\n<h2><b>Step 4: Implement Demand Forecasting<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Demand forecasting, which is the ability to look at past sales and anticipate future demand, is one of the lesser-used features in an ecommerce stock management program. If not, you are essentially taking a chance, either too much inventory (wasted money) or not enough (unmade sales).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Demand forecasting takes into account:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Historical sales by SKU.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any seasonal changes or promotions calendars. Seasonal changes and promotional calendars.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supplier lead times and Minimum Order Quantities (MOs)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Outside influences, such as changing market conditions or competitor out of stocks.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Find reorder points for each SKU at least, based on this formula:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Average Daily Sales is the average number of products sold per day during the product&#8217;s life. Average Daily Sales is the average quantity of products sold per day in the product&#8217;s life.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This will let you know exactly when to place another purchase order so you never have to be without any items before they are delivered. Sophisticated prediction can be added to your existing pile with dedicated tools such as Inventory Planner or Reorder Point.<\/span><\/p>\n<p><strong>Read More: <a href=\"https:\/\/www.8ration.com\/blogs\/top-b2b-ecommerce-solution-providers\/\">Top 10 eCommerce Solution Providers for the B2B Industry<\/a><\/strong><\/p>\n<h2><b>Step 5: Integrate With Your Warehouse and Fulfillment Operations<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Your inventory system must communicate with your warehouse. This is especially true if you&#8217;re placing orders or using a 3PL; you can&#8217;t have your inventory system and your physical operations operating without communication.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have your own warehouse:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use a Warehouse Management System (WMS) that connects with your ecommerce system:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduce picking errors and receiving time by using barcode scanning to reduce picking errors and speed up receiving.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use the optimal location of bins to make the fastest-moving products easiest to pick<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Real-time track goods throughout your facility<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you use a 3PL:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Make sure there is a connection with their system through API<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The inventory should be automatically updated when new stock is received<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tracking information should automatically show up in your platform when they place an order<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Frequently run reconciliation reports to detect any differences between your records and theirs<\/span><\/li>\n<\/ul>\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"15275\" class=\"elementor elementor-15275\" data-elementor-post-type=\"elementor_library\">\n\t\t\t<div class=\"elementor-element elementor-element-88c286b e-con-full e-flex e-con e-parent\" data-id=\"88c286b\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a22a2f8 elementor-widget elementor-widget-heading\" data-id=\"a22a2f8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Calculate Your Project Cost Instantly<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-086527d elementor-widget elementor-widget-text-editor\" data-id=\"086527d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tGet an accurate estimate for your ecommerce or software project in seconds. Plan your budget better with transparent pricing insights.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2cfa9e9 elementor-widget elementor-widget-button\" data-id=\"2cfa9e9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.8ration.com\/software-development-cost-calculator\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fab-telegram-plane\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M446.7 98.6l-67.6 318.8c-5.1 22.5-18.4 28.1-37.3 17.5l-103-75.9-49.7 47.8c-5.5 5.5-10.1 10.1-20.7 10.1l7.4-104.9 190.9-172.5c8.3-7.4-1.8-11.5-12.9-4.1L117.8 284 16.2 252.2c-22.1-6.9-22.5-22.1 4.6-32.7L418.2 66.4c18.4-6.9 34.5 4.1 28.5 32.2z\"><\/path><\/svg>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Use Calculator<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n<h2><b>Step 6: Set Up Reporting and Analytics<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">What you don&#8217;t measure, you can&#8217;t improve. A decent ecommerce stock management system provides you with extensive analytics to make more data-driven choices regarding buying, pricing, and promotions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every ecommerce business should have certain key reports that are run regularly:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inventory Turnover Rate: <\/b><span style=\"font-weight: 400;\">how fast you sell out your inventory<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Days of Inventory on Hand:<\/b><span style=\"font-weight: 400;\"> the number of days it will take to sell the inventory you have on hand at the current rate of sales.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Capital Tied Up: <\/b><span style=\"font-weight: 400;\">products that have not been sold in 90+ days (Dead Stock Report)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The Gross Margin by SKU (product): <\/b><span style=\"font-weight: 400;\">It is the true profitability of the products, after all costs (COGS) have been deducted.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reorder Report:<\/b><span style=\"font-weight: 400;\"> Which SKUs are running towards the reorder point at present?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These reports are useful to help you determine which products are &#8220;best&#8221; to invest in, which products you need to sell off to make room, and where your inventory dollars are going.<\/span><\/p>\n<p><strong>Read More: <a href=\"https:\/\/www.8ration.com\/blogs\/ecommerce-business-examples\/\">7 eCommerce Giants Winning the Mobile App Game (and How They Do It)<\/a><\/strong><\/p>\n<h2><b>Step 7: Write Standard Operating Procedures<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Your team&#8217;s behavior is the key to a great inventory system, not technology. People will not follow consistent processes; even the most advanced software will yield bad data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Record SOP for all Inventory activities such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The process of receiving and logging of new stock shipments<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Returning customers to stores and preparing products for restocking. Returning customers to stores, and preparing items for restocking<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Running weekly cycle counts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dealing with any damaged or rejected items<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The investigation and resolution of stock discrepancies<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Make all warehouse employees, customer service staff and operations managers familiar with these SOPs. Conduct a weekly inventory count of a sample instead of a complete inventory count annually to maintain accurate records without a large interruption.<\/span><\/p>\n<p><strong>Read More: <a href=\"https:\/\/www.8ration.com\/blogs\/apps-like-temu\/\">15 Best Apps Like Temu for E-Commerce Store Ideas<\/a><\/strong><\/p>\n<h2><b>Common Mistakes to Avoid<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Even the most advanced ecommerce business owners can make inventory mistakes. The most frequent ones are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Utilizing spreadsheets for too long: <\/b><span style=\"font-weight: 400;\">Spreadsheets are useful for 50 SKUs, a single channel. After scaling, they are a hindrance. Don&#8217;t wait until the pain starts to become critical to invest in dedicated software.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Bad supplier relations: <\/b><span style=\"font-weight: 400;\">Your inventory management system is only as effective as your supply chain. Develop good supplier relationships, understand lead times, and have options so that you don&#8217;t be the last man to lose his job.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Not planning for seasonality: <\/b><span style=\"font-weight: 400;\">When a company doesn&#8217;t consider peak events, such as Black Friday or holiday shopping, there will either be a huge shortage or excess of stock.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Not selling the dead stock: <\/b><span style=\"font-weight: 400;\">Products that have not been sold can burn a hole in your pocket each day they remain in inventory. Establish regular dead stock reviews and have a clearance strategy in place.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Failure to conduct regular audits: <\/b><span style=\"font-weight: 400;\">No matter how good a system is, it will change over time. Regularly perform count and scheduled full audits to maintain data quality.<\/span><\/li>\n<\/ul>\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"15281\" class=\"elementor elementor-15281\" data-elementor-post-type=\"elementor_library\">\n\t\t\t<div class=\"elementor-element elementor-element-69995d7 e-con-full e-flex e-con e-parent\" data-id=\"69995d7\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1c7b8d4 elementor-widget elementor-widget-heading\" data-id=\"1c7b8d4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Streamline Ecommerce Stock Operations<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3976fa6 elementor-widget elementor-widget-text-editor\" data-id=\"3976fa6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tAutomate your inventory flow with zero manual effort or confusion. Improve efficiency across warehousing, sales, and fulfillment.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c3e312d elementor-widget elementor-widget-button\" data-id=\"c3e312d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.8ration.com\/contact-us\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fab-telegram-plane\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M446.7 98.6l-67.6 318.8c-5.1 22.5-18.4 28.1-37.3 17.5l-103-75.9-49.7 47.8c-5.5 5.5-10.1 10.1-20.7 10.1l7.4-104.9 190.9-172.5c8.3-7.4-1.8-11.5-12.9-4.1L117.8 284 16.2 252.2c-22.1-6.9-22.5-22.1 4.6-32.7L418.2 66.4c18.4-6.9 34.5 4.1 28.5 32.2z\"><\/path><\/svg>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Free Consultation<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n<h2><b>Final Thoughts<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Creating a strong ecommerce inventory management system isn&#8217;t a project that will only be needed once, but a practice that will be continuous. The platform (Shopify inventory management, BigCommerce inventory management, or Magento inventory management), centralized multi-channel ecommerce inventory management hub, real-time tracking plus smart analytics provide the operational backbone to grow without chaos.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Begin with the fundamentals, clean up your data, link your channels and add advanced features as your business expands. In e-commerce, it&#8217;s not always a case of the best product winning out; it&#8217;s often about who has the most in stock.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Having a successful online business without the right system for inventory management is like playing a game in a city without a&#8230;<\/p>\n","protected":false},"author":15,"featured_media":15634,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[212,183,202,180],"tags":[],"class_list":["post-15626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce","category-ecommerce-development","category-industries","category-software-development"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Build an Ecommerce Inventory Management 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