Are you getting the most from your sales and inventory data?
If you’re not using the right retail inventory tools, you risk struggles like dissatisfied customers, increased costs, and lost revenue. But how should you be tracking your retail data? What makes one tool better than another?
The right point of sale (POS) tool will help you track trends, streamline business operations, and store and protect data, while the wrong one will just bring you headaches.
In this blog, we’ll identify four retail inventory tools for small retail stores, explain their features and benefits, and provide some tools that help streamline the process — including an all-in-one solution.
Let’s get started.
What Are Retail Inventory Tools?
Retail inventory tools are software solutions designed to help small retailers manage and optimize their inventory. These tools serve several critical functions, including tracking stock levels, forecasting demand, and analyzing sales data.
Benefits of data inventory tracking tools include:
- Real-time inventory tracking: Keep tabs on your stock levels at any given moment, ensuring you never face overstock, stockouts, or deadstock.
- Integration capabilities: Seamlessly connect your POS system with e-commerce platforms and accounting software to ensure smooth operations.
- Scalability: Grow with your business by adapting to increased inventory volumes and expanding sales channels.
- Automations: Automate repetitive tasks like reordering stock and updating inventory records, freeing up your time for other business priorities.
- Data and analytics: Gain valuable insights into sales trends, customer behavior, and inventory performance to make informed business decisions.
The right data inventory tracking tool will help you overcome several challenges, including dissatisfied customers because you’ll always have the products your customers want; increased costs by reducing excess stock and minimizing storage costs; and lost revenue by improving sales forecasting.
Choosing the Right Tool for Your Store
There are a few factors to consider as you choose the right data inventory tool for your small retail store.
- Budget constraints: Determine what you can afford and find a tool that provides the best value for your investment. Be careful not to buy too big of a system when you’ll only use a portion of what it offers.
- Scalability and growth potential: Choose a tool that can grow with your business and handle increasing inventory volumes.
- Integration with existing systems: Ensure compatibility with your POS, e-commerce platforms, and accounting software.
- Volume of data: Consider how much data you need to manage and ensure the tool can handle it effectively.
Another important consideration is reliable customer service. When your system breaks down, your inventory tool partner needs to be there to get you up and running. At POS Nation, we’re proud to offer 24/7 customer support.
Related read: How To Improve Retail Inventory Management in 5 Easy Steps
Basic Inventory Management Tools
If you’re just getting started, here are a few basic inventory tools for small retail stores.
Spreadsheet Applications (Google Sheets, Excel)
- Benefits: Simple and cost-effective, suitable for small inventory.
- Utilization: Manually update stock lists, inventory counts, reorder points, and more.
- Downsides: Prone to human error, lacks real-time updates, and becomes cumbersome as inventory grows.
Barcode scanners
- Benefits: Affordable, simplifies tracking, automates data entry, integrates with inventory databases, reduces human error, and more.
- Utilization: Scanning barcodes adds products directly to your inventory database. It also assists with tracking inventory, outgoing shipments, and customer preferences.
- Downsides: Possibility of barcode malfunction, barcodes may become damaged and not readable, more expensive than spreadsheets, inadequate training can cause errors.
Related read: How To Implement Barcode Inventory Management: 6 Tips and Tools
Open-source software
- Benefits: Customizable features, cost-effective, risk reduction, limited long-term contracts, and more.
- Utilization: Open source gives users full access to the source code, meaning anyone can modify and customize the platform to meet their specific needs.
- Downsides: Requires technical knowledge for setup and maintenance, costs involved with hosting, development, customizations, security and PCI compliance, and integrations and maintenance.
Bottom line: If you have a tech-savvy team, open-source software may be the right route for you, especially on a budget. It’s hard to beat full customization, but if you don’t have someone with coding knowledge, this will be a steep learning curve.
Related read: Open Source POS Software: 9 Pros and Cons [+ Top Providers]
Cloud-Based Retail Inventory Tools
Cloud-based tools offer several advantages over traditional systems based on servers.
- Accessibility and real-time updates: Access your data from anywhere and receive updates instantly.
- Inventory forecasting capabilities: Predict future demand based on historical data, seasonality, and trends.
- Secure data storage: Protect your data with robust security measures and automatic backups.
- Automatic software updates: Always have the latest features and improvements without manual intervention or coding know-how
Traditional inventory tools, also called legacy POS systems, store all your POS data locally, usually in an on-site server or on a hard drive. Any updates on server POS systems are installed manually.
Modern, cloud-based POS systems like POS Nation, feature comprehensive inventory management with real-time tracking, forecasting, and seamless integrations. POS Nation is user-friendly, scalable, and equipped with robust reporting tools to help your retail store succeed.
Related read: Cloud-Based POS vs. Traditional POS: How to Make the Right Choice
Data Analytics Tools for Inventory Optimization
Data analytics tools help you make sense of your inventory data so you can make informed business decisions. Predictive analytics help with demand forecasting, and it’s easier to spot trends and sales patterns. These tools will also help minimize overstock, stockout, and deadstock situations.
Here are three tools that can help.
Zoho Inventory
Zoho Inventory is a robust cloud-based inventory management system designed to automate your inventory operations. It provides features that simplify inventory management, such as stock tracking, efficient order management, and seamless multichannel selling.
Best for: Shopify sellers
Features: Comprehensive tracking, multi-channel selling, and real-time updates
Pricing: Free plan for small businesses and paid plans starting at $29 per month for the Standard plan and up to $249 per month for the Enterprise plan
Related read: 104 Small Business Resources & Tools You Need in 2024
Katana
Katana is a cloud-based inventory management software tailored for small and medium-sized businesses. It provides real-time data and smooth integrations to assist retailers in managing inventory across all sales channels.
Best for: Open API inventory management software
Features: Live inventory management with real-time data, built-in purchase order management and tracking, omnichannel sales management with centralized order fulfillment, custom integrations with other business tools
Pricing: Three pricing plans, including Essential ($99/month), Advanced ($299/month), and Enterprise (custom pricing)
Related read: Essential Payment Processing Hardware for Independent Retailers
POS Nation
POS Nation offers a complete retail POS software solution to help retailers run their shops better. The software is user-friendly, feature-rich, and can manage both single store and multi-location businesses.
Best for: Small to mid-size retailers
Features: Comprehensive inventory management, automatic purchase order generation with reorder thresholds, custom integrations, customer loyalty tracking and rewards programs, employee management, over 55 pre-built reports with Excel export and customization options
Pricing: Get a custom quote for your perfect solution using the build and price tool
Bonus features: Mix and match pricing, mobile inventory management, case break inventory tracking, auto invoicing, vendor purchasing metrics, and more
A Retail Inventory Tool That Does It All: POS Nation
The ideal data inventory tool should offer real-time tracking, seamless integrations, scalability, automation, and robust analytics. The tool you choose will depend on your retail store, but POS Nation provides an all-in-one solution that meets these criteria with flexible pricing and no contract obligations.
With the right tool, you can get a better understanding of your inventory, enhance efficiency, improve customer satisfaction, and drive your business to new heights.
Ready to streamline your inventory management? Schedule a demo with POS Nation to learn how our comprehensive tool can transform your retail operations.
