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Ecommerce Inventory Management Software

Features, Integrations, Success Factors, Costs

ScienceSoft applies 19-year experience in digital commerce and 10 years of expertise in building inventory software to design and develop effective ecommerce inventory management solutions.

Ecommerce Inventory Management Software Overview - ScienceSoft
Ecommerce Inventory Management Software Overview - ScienceSoft

Ecommerce Inventory Management Software: The Essence

Ecommerce inventory management software helps companies involved in digital commerce streamline inventory management workflows, minimize inventory carrying costs, and avoid stockouts and overstocking.

The software can enable demand-driven inventory planning, real-time monitoring of inventory levels and location using IoT, multi-echelon inventory optimization based on advanced analytics, automated inventory valuation, as well as automated inventory ordering and selling.

  • Necessary integrations: online selling channels, a vendor portal, accounting software, promotion management software, etc.
  • Implementation time: 6–10 months for custom ecommerce inventory management software.
  • Development costs: $90,000–$400,000+, depending on the solution’s complexity.
  • ROI: 120–300%+.

Ecommerce Inventory Management System: Key Features

ScienceSoft creates inventory management solutions with unique functionality closely bound to our clients’ objectives. Below, we list the features commonly requested by our customers from the ecommerce sector:

Inventory item management

  • User-defined inventory item parameters (batch, price, color, dimensions, expiration date, etc.).
  • Template-based SKU creation.
  • Rule-based inventory item cataloging.
  • Automated updating of SKU information as new relevant data appears.

Inventory database management

  • Batch uploading and processing of inventory data.
  • Inventory data backup, versioning and recovery.
  • A search engine with filtering and metadata querying to navigate inventory data.
  • Role-based access to the inventory database.
  • Full audit trail of user activities.

Inventory planning

  • Calculating the required inventory amounts by period, inventory item, storage location, etc. based on the analysis of relevant historical data:
  • Customer demand (by online selling channel, region, during particular seasons, etc.).
  • Inventory expiration dates.
  • Existing inventory reservations for customer orders, and more.
  • Planning the expected inventory delivery dates based on the lead time specified by a vendor, inventory shipment status, working days calendar, etc.

Inventory optimization

  • AI-supported calculation of optimal inventory reorder points for each inventory item based on the historical sales data, product promotions, demand seasonality, and other factors.
  • Multi-echelon inventory optimization based on the analysis of current demand, inventory availability, inventory carrying costs, inventory lead time, customer commitments and service levels, and more.
  • AI-driven recommendations on optimal time for inventory reallocation between different warehouses, distribution centers, points of sale (for omnichannel retail), etc.

Inventory purchasing

  • Automated creation of purchase orders (PO) triggered by reorder points, certain dates, etc.
  • Rule-based supplier assignment for various inventory items.
  • Automated workflows for multi-department PO approval.
  • Real-time PO status tracking.
  • Automated purchase invoice processing and submission for payment.

Inventory costing

  • Automated inventory valuation based on FIFO, LIFO, weighted average costing, and other inventory costing methods.
  • Calculating inventory purchasing and carrying costs in a user-defined currency.
  • Calculating cost of goods sold (COGS).

Inventory receiving and putaway

  • Alerts to the inventory team on inventory delivery.
  • Inventory item identification and verification against purchase/transfer orders based on barcode or RFID technology.
  • Flagging inventory items that require quality inspection.
  • Automated generation of identification labels for inventory items, pallets, stacks, packages, etc.
  • AI-based inventory storage suggestions based on the item storage requirements, expiration dates, demand forecasts, etc.
  • Alerts on inventory items to be taken from a receiving zone directly to a shipping zone (for cross-docking operations).

Inventory control

  • Inventory level monitoring based on barcode or RFID technology:
    • Across multiple domestic and foreign storage locations.
    • Across owned and consignment inventory.
  • Alerts on low-level inventory.
  • Batch control to track expiration dates (e.g., of perishable inventory items) using barcode or RFID technology.
  • Reminders on inventory expiration dates.
  • Inventory audit based on barcode or RFID technology.

Customer order management

  • Template-based creation of sales orders.
  • Rule-based customer order prioritization based on customer value, order date, product category, service level, and more.
  • AI suggestions on the optimal order fulfillment location based on the analysis of current stock levels, destination addresses, etc.
  • Template-based creation of order fulfillment schedules with critical milestones like order packing, pickup, arrival at particular points, etc.
  • Real-time tracking of sales order status.

Inventory picking and packing

  • Automated inventory reservation for a customer order.
  • AI-based suggestions on the type and amount of packing required for an order and the optimal inventory picking route in a fulfillment location.
  • Automated creation of picking and packing lists for warehouse workers.
  • Rule-based inventory kitting.
  • Template-based creation of shipping labels and package slips.
  • Automated generation and approval of sales invoices and shipping documents.
  • Notifications to the inventory team on the goods dispatch.

Inventory return management

  • Rule-based inventory return routing to a fitting warehouse.
  • Real-time tracking of return order status.
  • Alerts to the inventory team on the returned inventory delivery.
  • Automated workflows for various inventory processing scenarios upon returned inventory delivery (e.g., inventory routing for quality check or inventory return to the initial supplier).

Inventory analysis

  • Real-time calculation of inventory metrics, such as total inventory levels by storage location, on-hand/low-stock inventory, inventory turnover, days sales of inventory (DSI), aged inventory, and more.
  • AI-powered ABC and FSN analysis.
  • Template-based inventory reports (by period, region, storage location, etc.).

Get an Effective Inventory Solution for Ecommerce

ScienceSoft’s team is ready to plan, build, and support a robust inventory management system to help ecommerce businesses streamline inventory management workflows, optimize inventory costs, and avoid stockouts and overstocking.

Essential Integrations for Ecommerce Inventory Management Software

ScienceSoft recommends setting up the following integrations to ensure the accuracy and consistency of inventory data across business-critical systems. It will help facilitate and speed up ecommerce inventory planning, control, replenishment, and selling.

Integrations for Ecommerce Inventory Management Software - ScienceSoft

Online selling channels

(e.g., a company’s ecommerce website, social networks, third-party marketplaces)

  • For the automated input of relevant data when creating sales orders and customer invoices.

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  • For accurate multi-location inventory planning to meet customer demand.
  • To keep customers up to date on available inventory.

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Promotion management software

For accurate inventory planning taking into account potential demand spikes.

Vendor portal

  • For the automated purchase order submission to suppliers.
  • For facilitated PO status tracking.
  • To precisely calculate expected inventory supply dates and optimal inventory reorder points.

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  • For fast processing of supplier invoices.

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Hardware

(barcode or RFID readers)

For accurate inventory level and location monitoring.

Transportation management software

To accurately plan customer order shipment.

Accounting software

For automated recording of inventory transactions and inventory value to the general ledger.

BI solution

For the analytics and visualization of multi-location data on inventory demand, inventory lead time, and more.

Success Factors for Implementing Ecommerce Inventory Management System

Relying on 19 years of experience in digital commerce and 10 years of experience in designing and building supply chain management solutions, ScienceSoft’s consultants have defined important factors that help ecommerce companies achieve maximum ROI from inventory management software implementation.

  • AI-powered prescriptive analytics. To provide ecommerce inventory teams with intelligent recommendations, for example, on optimal inventory reorder points or inventory reallocation time to support optimal stock levels across various warehouses.
  • The use of barcode and RFID technology. To eliminate error-prone manual inventory counting, enable automated tracking of inventory level and location.
  • Smooth integration with business-critical systems. To ensure seamless flow of data between ecommerce inventory management software and a company’s online selling channels, a vendor portal, accounting software, a BI solution, etc.

Ecommerce Inventory Management Software Implementation Costs and Financial Outcomes

According to ScienceSoft’s experience, a custom ecommerce inventory system of average complexity requires $150,000–$250,000 in investments, while the cost of a comprehensive inventory and warehouse management solution for a large ecommerce business may reach $400,000+.

Ecommerce inventory management software can bring 120–300%+ ROI, depending on the initial project investments and ecommerce company size.

Key benefits of ecommerce inventory management software

10–30% reduction in inventory costs due to multi-location inventory optimization based on advanced analytics.

50%+ increase in productivity of the inventory team due to automation of manual tasks.

97%+ customer service level due to improved stock availability and timely order delivery.

Minimized risk of stockouts and overstocking due to accurate, data-driven inventory planning.

Improved inventory visibility and traceability across the ecommerce supply chain due to real-time inventory level and location tracking.

Off-the-Shelf Ecommerce Inventory Management Software ScienceSoft Recommends

Oracle NetSuite Inventory Management

Best for

Large ecommerce businesses with complex distribution networks.

Capabilities

  • Template-based SKU creation.
  • Demand-driven inventory planning.
  • Calculating optimal stock levels across locations and reorder points for inventory items based on the analysis of historical sales data, inventory lead time, and other factors.
  • Monitoring inventory levels across multiple locations in real time.
  • Alerts on low-stock inventory items.
  • Tracking the status of inventory purchase orders and sales orders.
  • Automated processing of inventory returns.
  • Analytics on essential inventory KPIs, such as total stock by location, best-selling and slow-moving stock items, etc.

Cautions

Requires substantial customization efforts to meet unique inventory management needs.

Brightpearl Inventory Management

Best for

Midsize and large companies involved in omnichannel commerce.

Capabilities

  • Inventory planning based on the analysis of historical sales data and planned product promotions.
  • Multi-echelon inventory optimization.
  • Monitoring inventory levels across domestic and foreign storage and selling locations and inventory audit based on barcode technology.
  • AI recommendations on optimal time for stock replenishment.
  • Automated generation of inventory purchase orders (triggered by reorder points).
  • Template-based creation of sales orders and customer invoices.
  • Plug-and-play integrations with Amazon, Shopify, Adobe Commerce (Magento), and other popular e-commerce platforms and marketplaces.

Cautions

Requires costly and effort-consuming integration with legacy back-office systems.

Veeqo Inventory Management

Best for

Midsize ecommerce businesses selling via multiple online marketplaces.

Capabilities

  • OOTB integrations with popular e-commerce marketplaces (Shopify, Amazon, eBay, Walmart), e-commerce platforms (BigCommerce, Magento), accounting tools (Xero, QuickBooks), and more.
  • A mobile app for inventory managers.
  • Inventory planning by period, fulfillment location, region, etc. based on demand and lead time specified by a supplier.
  • Tracking inventory levels across multiple storage locations, including trading partners’ warehouses, based on barcode technology.
  • Rule-based routing of customer orders to particular fulfillment locations.
  • Rule-based inventory kitting.
  • User-defined rules for inventory picking and packing.

Cautions

SKU data has to be uploaded manually, which is time-consuming.

When to Opt for Custom Ecommerce Inventory Management Software

ScienceSoft recommends building a custom ecommerce inventory management solution in the following cases:

  • You need ecommerce inventory software that provides specific functionality. Examples include custom inventory kitting rules, automated control of perishable or highly regulated (e.g., medicines) inventory items, or AI suggestions on optimal safety stock across domestic and foreign storage locations.
  • You need a flexible ecommerce inventory solution that is easy to evolve, e.g., with advanced technologies like comprehensive AI-powered inventory analytics or RFID-enabled stock monitoring.
  • You want to avoid costly and complicated integration of inventory management software with your legacy systems (an ecommerce website, accounting software, a vendor portal, etc.).
  • You have large teams involved in stock management processes and want to avoid costly subscription to a market-available software product.
  • You are building a blockchain-based ecommerce supply chain system and need to enable facilitated inventory order traceability, inventory shipment tracking and inventory authenticity verification at each level of the supply chain.

Implementation of Ecommerce Inventory Management Software with ScienceSoft

In ecommerce since 2003 and in inventory management software development since 2012, ScienceSoft helps ecommerce businesses build reliable inventory management solutions.

Ecommerce inventory software consulting

  • Analysis of your inventory management needs.
  • Suggesting optimal features (including advanced techs-enabled features, such as AI-based prescriptive analytics)
  • Design of a scalable architecture.
  • Selecting a go-to tech stack for ecommerce inventory software implementation.
  • Preparing a plan of integrations with online selling channels, a vendor portal, accounting software, RFID or barcode scanners, etc.
  • Implementation cost & time estimates, expected ROI calculation.
GO FOR CONSULTING

Ecommerce inventory software implementation

  • Inventory management needs analysis.
  • Ecommerce inventory solution conceptualization.
  • Design of a scalable architecture..
  • Ecommerce inventory management software development.
  • Integrating the solution with existing systems (online selling channels, accounting software, etc.), RFID or barcode scanners.
  • Quality assurance.
  • User training.
  • Continuous support and evolution (if required).
GO FOR IMPLEMENTATION

About ScienceSoft

ScienceSoft is an international IT consulting and software development company headquartered in McKinney, Texas. We provide consultancy and development services to help ecommerce businesses build effective inventory management software. Being ISO 9001 and ISO 27001 certified, we apply a mature quality management system and guarantee that cooperation with us does not pose any risks to our customers’ data security. If you are interested in getting a reliable inventory solution for digital commerce, feel free to turn to ScienceSoft’s team.