As more retailers diversify their sales channel strategy, inventory management challenges become increasingly complex.

While stock control for one or two stores may be relatively simple, multichannel inventory management requires better visibility and the need to be agile and react quickly to trends.    

In this post, we’ll walk through everything you need to know about multichannel inventory control, from the costs and causes of poor inventory management, to what you should look for in your search. 

Let’s get started!

Coming to Grips with Multichannel Inventory Management

For many retailers, adding new sales channels amplifies existing inventory management problems.

Our advice? Perfect your existing eCommerce business processes before pursuing a multichannel strategy.

Disorganized inventory procedures will only multiply your headaches when you start adding multiple warehouse locations or additional marketplaces.

Coming to grips with inventory management processes has many benefits. It highlights which parts of the process are sticking points and where to optimize.

A review also helps you choose the right multichannel inventory management system when it’s time to upgrade.

Whether you have one store or multiple sales channels, a review at least every 12 months is necessary to ensure you’re not incurring avoidable costs and offering customers the best service possible.  

Top 6 Ecommerce Inventory Management Software Systems 

Ecommerce inventory management software is essential to selling online, especially on multiple sites.

This could be variations of your site for different markets and regions or third-party marketplaces like Amazon and eBay. 

These six ecommerce inventory systems are feature-rich and have many multichannel inventory management tools that enable you to track inventory across multiple channels (without losing your sanity).

1. Sellbrite

Sellbrite is one of the leading multichannel inventory management solutions on the market.

It’s owned by GoDaddy which has extensive knowledge of the online environment as a worldwide hosting, domain name, and website provider. 

Regarding features, Sellbrite has everything you need in an inventory management tool and much more.

It can help you manage sales, inventory levels, and products across multiple online marketplaces.

It’s also versatile and has features that enable it to become your order management software, product management hub, and fully-featured analytics platform.

Getting your products into Sellbrite is easy by using the bulk upload feature.

Once done, you can list your products on any of the top marketplaces that Sellbrite integrates with (including Amazon, eBay, and Walmart) by creating listings for each marketplace using your uploaded data.

To tie everything together, you can turn on inventory sync. This will automatically update your listing quantities to match your available inventory. You can also use inventory rules such as “use 100% of inventory” and set minimum and maximum sales quantities.  

Pricing

Sellbrite’s pricing starts at their “Forever Free” plan, which offers up to 30 monthly orders.

Their most popular plan is the “Pro 100” at $29 per month, offering 100 monthly orders and FBA integration capabilities (for an upcharge).

2. Quickbooks Commerce (Formerly Tradegecko)

In August 2020, Intuit acquired TradeGecko. This makes what is now QuickBooks Commerce an incredibly powerful tool, thanks to the financial, payment, reporting, and accounting tools that sit behind this omnichannel inventory management platform. 

However, since then, it appears Intuit has rolled up the functionality of QuickBooks Commerce into QuickBooks Online, specifically under their “Plus” pricing plan.

QuickBooks Online boasts impressive features, allowing you to manage inventory, orders, payments, customers, and insights in one place.

Like Sellbrite, QuickBooks Online integrates with all the top marketplaces you would expect including Amazon and eBay.

Pricing

QuickBooks Online offers inventory support starting at their Plus plan ($25.50/month) and going up to their advanced plan ($60/month).

3. Orderhive

Orderhive is true to its name, giving you a 360° view of your retail operation.

Users can manage everything from products and orders to customer data, returns, and shipments.

This true multichannel system covers much more than inventory and enables you to access this information anywhere as a cloud-based system.

Like the other eCommerce inventory management software systems, it has over 300 integration partners.

This includes carts on popular platforms like WooCommerce and BigCommerce and other useful shipping sites like FedEx and ShipStation.

The standout feature is ecommerce automation. With innovative workflows, Orderhive can create orders and customer folders to auto-fulfill orders through selected warehouses. 

Pricing

Orderhive obscures their pricing information online, asking users to request a demo. According to some online reports, their pricing begins at $95/month and goes up to $500/month.

4. Ecomdash

Ecomdash (recently acquired by Web.com) is a flexible, cloud-based inventory management platform most popular with mid-sized businesses.

One of the key strengths of Ecomdash is its flexibility to tailor it to your processes and inventory requirements.

For example, you can manage products by SKU, serial number, or your specific product identification system.

Automated inventory sync is another important feature to note. It keeps your inventory updated 24/7 across every single channel.

This reduces the risk of overselling items. It’s also useful if you sell kits or multipacks as the automation can detect when products have been selected as part of these deals and adjust overall stock figures accordingly. 

Order management is another crucial strength that Ecomdash brings to the table. The full order management suite lets you print pick lists, packing slips, and shipping labels from one easy-to-use dashboard.

You can set rules for products to drop ship to suppliers and keep your customers updated with automated order status updates and tracking information sync.

Pricing

Ecomdash offers a free plan for 30 monthly orders, going up to the Pro-350 plan ($350/month) for 10,000 monthly orders.

5. Ordoro

Ordoro, established in 2010, has evolved into a powerful cloud-based inventory management platform, providing an all-in-one solution for SaaS and enterprise clients.

It offers robust inventory management features including real-time tracking across multiple locations, kitting, purchase orders, and return management.

Ordoro also supports dropshipping with automated routing of orders across suppliers.

The platform integrates with various shipping carriers and sales channels and offers discounted shipping rates.

With its comprehensive features, Ordoro is a versatile choice for businesses seeking efficient inventory management.

Pricing

Ordoro’s pricing starts with a free tier, with “Advanced” and “Premium” plans at $59 and $149 monthly, respectively. Additional modules for specific needs are also available.

6. Zoho Inventory

Zoho Inventory is a cloud-based inventory management software designed for small to medium-sized businesses.

With multichannel selling, real-time inventory tracking, and comprehensive warehouse management, Zoho Inventory optimizes your inventory and order management processes. It ensures accurate stock count and order fulfillment, reducing instances of overselling.

It also allows for kitting and bundling of items, which is useful for businesses with complex inventory structures.

The comprehensive order management system provides features from creating sales orders and invoices to packing and shipping goods.

It integrates with popular shipping carriers, allowing for easier shipment tracking. Zoho Inventory also integrates with various eCommerce platforms and marketplaces, syncing your inventory across multiple sales channels.

Pricing

Zoho Inventory offers a free plan for 20 monthly online orders, with more extensive features in their paid plans. The Basic plan costs $39/month for 1500 online orders/month.

The Standard plan costs $79/month for 10,000 online orders/month. For larger businesses, the Professional plan is $199/month for 30,000 online orders/month.

These plans offer more extensive features like batch tracking, composite items, and priority support.

Conducting an Inventory Management Review

The inventory management process has five stages. Understanding what happens at each stage makes reviewing and pinpointing potential problems easier. The five stages are:

1. Purchasing: buying raw materials or finished goods
2. Production: turning raw materials into sellable goods
3. Holding Stock: managing the stock on your shelves and warehouse
4. Sales: selling goods to your customers
5. Reporting: tracking key metrics like inventory turnover to identify areas for improvement

Most retailers buy goods in a sellable format, only encountering stages 1, 3, 4, and 5. Despite this, each part of the process is equally important.

Useful questions to ask during the review that relate to inventory management include: 

• Which suppliers have the shortest lead times?
• How accurate are suppliers with deliveries?
• Which products have the best inventory turnover ratio?
• Which products have the best sell-through rate?
• How accurate are our safety stock calculations?
• How often do we experience stockouts and on which products?

Regular reviews and tightening processes make managing stock across multiple channels more effective because you have templates and guides to help.

Reviews also highlight where your current inventory management systems aren’t performing, enabling you to create a feature/functions list for any new software you might purchase.   

Choosing The Best Inventory Management Software  

For multichannel inventory management to be efficient and successful, a few core competencies must be kept in mind, including:

• Maintaining a 360° view of your stock at every location
• Having the real-time stock and sales updates for every channel
• Running reports to support data-driven decision making

These principles directly relate to what you should look for when purchasing inventory management software.

Using different software for each sales channel doesn’t give you the visibility or real-time view of inventory and sales data that are required.

An all-in-one inventory management solution is the modern approach for multichannel retailers. 

Top Inventory Management System Software Features

With these core competencies in mind, here are the top five features to consider when deciding on the best inventory management system. 

Multichannel Views

You must be able to manage all your sales channels in one system. That means being able to do everything from updating product information for every channel to viewing sales and stock information to logging returns.

It’s also important for these channels to be connected and updated in real time. 

One key reason is that customers no longer see “channels.”  They want to shop how they want and when they want.

This omnichannel expectation means you must be able to offer an online store experience, buy online, pick up in-store, and buy online, return to the store.

If your systems aren’t connected it’s near impossible to offer value-added services like these and your customer experience will suffer.

Integrations to Third-Party Ecommerce Platforms

Increasing distribution through online channels like eBay, Amazon, and Walmart is core to business strategy for online retailers.

Multichannel inventory management systems must integrate with platforms like these. 

One benefit is you only need to update your product information once rather than input it separately into each system.

This saves a huge amount of time and ensures product information is consistent across every channel.

Centralizing sales and product reports from all channels is a huge plus and makes sales analysis much easier and quicker. 

Reporting & Analytics

The best way to optimize processes and grow your business is to create reports and analyze where improvements can be made.

Any inventory management software you choose must include a robust suite of reports.

Some key reports to look for are:

• Sales by Product
• Sales by Channel
• Inventory Valuation
• Cost of Goods Sold
• Product Average Purchase Price
• Returns Summary
• Low-stock/Out-of-stock Products

These insights allow you to take your business to the next level by reducing costs and maximizing margins.  

Cloud-Based Access & Updates

Cloud-based software is particularly important for companies with numerous retail locations.

Where on-premise software is installed on-site and only accessible on-site, cloud-based software can be accessed from anywhere, as long as you have an internet connection. 

This makes stock, sales, and overall business management much easier and more efficient.

It enables regional managers and head offices to access data from specific stores and regions in real time and make data-driven decisions instantly to maximize sales at any time. 

Warehouse Management Capability

To ensure that deliveries and stock levels are managed accurately features like QR and barcode scanning are incredibly useful.

Manual data entry is time-consuming and prone to errors for companies with large warehouses that get regular deliveries. 

Most modern inventory management systems integrate with handheld devices including tablets and mobile devices.

Up-to-date electronic records tell you who received deliveries with a time and date stamp, enabling you to implement batch tracking for improved product traceability.   

Common Issues with Managing Inventory Across Multiple Channels

Before we finish, let’s look at some common inventory management problems that can hinder your growth and waste a lot of time if you don’t get ahead of them.

It helps you identify issues early on and implement solutions before it’s too late.

Most problems occur due to a lack of planning and systems unsuitable for multichannel businesses. 

These four inventory issues are among the most common that businesses encounter.    

Overstocks

Overstocks occur when a business orders an excessive quantity of a particular product or product range, often due to inadequate inventory management and inaccurate demand forecasting.

This scenario typically results from a failure to align stock levels with market demand, leading to a surplus inventory that ties up capital and warehouse space.

However, overstocks aren’t always a result of internal missteps.

External market factors, such as a sudden drop in demand, can sometimes prompt an overstock situation.

This is particularly common during certain periods like seasonal promotions or amidst unexpected events such as economic downturns or global crises, which can drastically alter consumer behavior.

Overstocks can also be a byproduct of over-optimistic sales predictions or a breakdown in communication between sales and procurement teams.

Therefore, businesses must have robust inventory management practices, including efficient forecasting methods and open, consistent interdepartmental communication.

This approach helps mitigate the risk of overstocking and its associated costs and challenges.

Out of Stocks

Stockouts are unavoidable in modern retail, but every effort should be made to minimize them. The impact on your sales might be more than you think.

A Harvard Business Review study found that if a product is out of stock in-store, 21%-43% of consumers will go to another store to buy the item.

The real-world impact of stockouts is lost sales and frustrated customers. Modern consumers have an “I need it now” mentality, meaning if you don’t have it, they will go to someone who does.

Good inventory software will run reports on low-stock and out-of-stock items, with some automatically placing orders to suppliers when stock hits a low-threshold trigger.  

Delivery

Offering a fast delivery service is essential for online retailers, especially with services like Amazon Prime offering same-day delivery in some areas.

Despite this, many retailers are still struggling because they have ineffective inventory management processes in place and lack visibility of stock across all locations.

Issues range from:

1. Overselling products because they don’t know what they have in stock
2. To slow pick and pack processes because they don’t track product locations accurately in warehouses. 

The size of the US is a barrier to offering services like next-day delivery, although there are solutions.

Locating your stock closer to your customers is a fantastic way to cut delivery times and costs. One way to do this is by dispatching ecommerce orders from the closest store to the final delivery address.   

Returns

Returns are an inevitable part of modern retail. No retailer has a 0% return rate, and they never will. However, a research report from retail analyst firm IHL Group found that up to half of all returns are partially “preventable.”

Product defects and size issues are the most common reasons for returns, most prevalent in the apparel industry. 

Another common reason for returns is when the wrong product or quantity is sent. This has a domino effect, causing issues with overselling and underselling.

Many errors like this wouldn’t be picked up during a manual stock management process, highlighting the importance of having the right system to track the full inventory lifecycle process. 

Final thoughts

If you’re a retailer selling across multiple sales channels, multichannel inventory management should be a top priority.

Having the right products in stock at the right time can be the difference between exceeding sales targets and missing them completely — especially when managing multiple warehouses.

Luckily, a new breed of software has entered the market called multichannel inventory software.

These platforms enable you to manage everything from orders to inventory to shipping and returns in one system.

Whether you’re selling in one store and online or across multiple online marketplaces, these platforms will help you to manage and grow your business effectively.

Imagine the ability to conjure up your stock levels with a click, having real-time insights into your inventory any hour of the day, and never being blindsided by a surprise “out of stock” notification.

This is all possible thanks to perpetual inventory systems. This revolutionary approach to stock management has redefined efficiency and accuracy in businesses worldwide.

Let’s unravel its benefits and how it can transform your business.

What is Perpetual Inventory?

The perpetual inventory method is an innovative system of inventory accounting that meticulously records alterations in inventory records the instant they occur.

Whether it’s a product sold, processed, or newly received, every activity is immediately updated in the inventory data. The perpetual system essentially keeps a constant, up-to-date account of your inventory.

In essence, a perpetual inventory system is an approach to inventory management that reconciles inventory in real-time.

This method eliminates the lag between the physical inventory and the accounting records.

Every adjustment is instantly reflected in the system, offering a comprehensive view of your inventory status at any moment.

On the other hand, the traditional periodic inventory system requires manual physical inventory counts.

This means that inventory updates are not immediate, and the records might not always reflect the actual state of your inventory.

Manual counts can introduce the risk of errors, delays, and inefficiencies.

Here’s where the role of perpetual inventory software comes into play.

As soon as a transaction occurs – be it a sale, a return, or the addition of new stock – the software automatically updates the inventory records, eliminating the need for manual intervention.

Whether you are a small business owner looking to streamline your inventory processes or a large enterprise aiming for optimal efficiency, the perpetual system (supported by perpetual inventory software) could be your key to:

1. Enhanced inventory accuracy
2. Reduced stockouts and overstock situations
3. Improved business performance

What is a Perpetual Inventory System and How Does it Work?

One of the main differences between the perpetual and periodic inventory systems is how inventory is tracked.

Let’s take a closer look.

What Is a Perpetual Inventory System?

In simple terms, a perpetual inventory system is a technology-based method of inventory management used to track stock as it is sold or received in real time.

The technology supporting perpetual inventory methods is typically an eCommerce platform (like Shopify), a computerized point-of-sale system or dedicated inventory management software.

Regardless of which technology is used, it collects data automatically and displays detailed changes to your stock levels as they occur.

What is a Periodic Inventory System?

A periodic system, on the other hand, is the total opposite. It is done physically, which means that stock has to be counted physically by a staff member before it can be compared to sales data.

An easy way to remember this is that periodic systems “periodically” record data, while perpetual systems are “perpetually” running in the background, recording all relevant inventory information.

Periodic inventory methods leave much room for error and are not the most inefficient inventory management systems. 

A real-world example of perpetual and periodic inventory systems

These concepts may seem abstract or academic in theory, but let’s look at a real-world eCommerce example of these two systems in practice.

Imagine you own a hypothetical eCommerce store selling personal electronics.

In a perpetual inventory system scenario, a customer orders a pair of wireless headphones from the online store.

When the sale is processed and the order confirmed, the inventory database gets immediately updated, deducting the sold pair of headphones from the stock count.

There’s no need to wait until the end of the day or week to know exactly how many headphones are left in stock.

This real-time data keeps the company informed about when to reorder, preventing potential stockouts.

Moreover, when the business restocks the wireless headphones, the inventory software instantly updates the database to reflect the new stock levels.

(This is even easier if the inventory management system integrates with a barcode scanning system.)

This automation saves the business time and effort, ensuring the inventory record is always accurate.

This real-time data can offer valuable insights into sales trends and patterns, enabling the business to make data-driven decisions.

Now, contrast this with a periodic inventory system.

In this scenario, if a customer purchases the same pair of wireless headphones, the inventory records wouldn’t immediately be updated.

Instead, the business would wait until the end of a set period (e.g., day, week, or month) to manually count and update the inventory levels.

While this approach might work for smaller businesses with less frequent transactions, it poses several challenges for growing eCommerce businesses.

Firstly, the delay between the sale and the inventory update could lead to discrepancies between the actual and recorded inventory levels.

This could result in the business unknowingly selling more headphones than they have in stock, leading to stockouts and unhappy customers.

This is especially risky when selling on multiple marketplaces, each with its own stock levels and allocated inventory.

Secondly, periodic inventory systems can be time-consuming and prone to human error.

Manual counts might not always be accurate, potentially leading to mistakes in the inventory records.

Plus, without real-time inventory updates, the business might lack the necessary data to make informed restocking decisions or promptly identify and respond to sales trends.

So while periodic inventory systems might be simpler and less costly upfront, the potential for errors, inefficiencies, and lack of real-time data can prove costly in the long run.

On the other hand, perpetual inventory systems, with their real-time updates and automation, offer a more efficient and accurate approach to inventory management, particularly for growing eCommerce businesses.

Major Differences of Perpetual Inventory Control Systems

Here are some key features that distinguish a perpetual inventory control system from a simple perpetual inventory system:

Analytics tools

A perpetual inventory control system typically includes analytics tools that allow users to analyze inventory data, identify trends, and make informed decisions about purchasing, pricing, and stocking levels.

Decision-making support

A perpetual inventory control system may support decision-making by recommending reorder points, safety stock levels, and other inventory management parameters.

Forecasting capabilities

Some perpetual inventory control systems include forecasting capabilities that allow users to project inventory levels based on historical data and anticipated demand.

Integration with other systems

A perpetual inventory control system may be integrated with other systems, such as point-of-sale (POS) systems or supply chain management (SCM) systems, to provide a complete view of inventory levels and trends.

Customizable reporting

A perpetual inventory control system may allow users to create custom reports that provide insight into specific aspects of inventory management, such as inventory turnover, stockouts, or slow-moving items.

Multi-location support

Some perpetual inventory control systems support multiple locations, allowing users to track inventory levels across multiple warehouses or stores.

Mobile access

A perpetual inventory control system may offer mobile access, allowing users to monitor inventory levels and make informed decisions on-the-go.

When Should You Use a Perpetual Inventory System for Your eCommerce Business?

A perpetual inventory system is the best way forward if your retail business handles a high sales volume, as most eCommerce brands do.

However, even small businesses will benefit from this inventory management system to simplify and automate inventory-related tasks.

The Advantages and Disadvantages of a Perpetual Inventory System 

A perpetual inventory system is far superior to a periodic inventory system for your eCommerce business for various reasons. The biggest advantage, bar none, is that it significantly reduces human error. Other advantages include:

No downtime

Since everything depends on technology, stock levels are instantly updated using the perpetual inventory management system. You can say goodbye to the time-consuming task of performing a physical inventory count and the resulting business downtime and missed sales opportunities.

As a bonus, you get a warehouse organization that is more efficient and saves employees time. You also enjoy lower supply chain costs, improved cash flow, and a boost to your company’s bottom line. 

It improves your forecasting

Accurate forecasting is a critical component of effective inventory management. Cisco, the networking equipment behemoth, learned the hard way about the consequences of poor stock forecasting in 2001. 

It had to write off about $2.25 billion in equipment components and raw materials as a loss.

Your business may not be on that scale yet, but a loss is a loss — it still hurts. With the assistance of a perpetual inventory system, you can avoid a loss to your business.

Because you can keep track of all transactions, you can ensure full product accountability on demand.

Records in real time

A perpetual inventory system is also more accurate than a periodic inventory system.

The reason for this is simple: because key inventory management tasks are automated, sales and inventory data are recorded as soon as they occur, which has positive applications for stock forecasting and audits.

This means that your eCommerce business will have a more accurate inventory account whenever needed.

As a result, you can take steps to avoid stockouts, as well as product and production shortages.

Reduce inventory management costs

A perpetual inventory system provides a comprehensive data set of all metrics related to your inventory.

The best part is that once the costing system formula is correctly set up, analyzing this data is relatively simple (more on this later).

This has a positive knock-on effect in reducing the money you spend on inventory management. With the data, you can more accurately forecast demand and avoid excess raw materials and stock.

You can also scale up or down the cost of holding stock based on demand, ensuring that you are not paying for storage you do not require and vice versa.

Disadvantages of Perpetual Inventory Systems

Before we get into the cons of the perpetual inventory system, it is important to note that while some of the following points are listed as cons, they’re more like minor inconveniences when compared to the alternative (periodic inventory system).

Annual physical stock audit

Even if you have a perpetual inventory management system, you must count your inventory to synchronize your data physically.

This count is required because recorded inventory may not accurately reflect what is physically in stock over time, let alone accounting for drop shipments or inventory on order, including accounting for breakage, stolen goods, and loss from shrinkage (which are risks associated with stock in your business).

If you’re looking for the most efficient ways to audit your inventory, look at our post on cycle counting. 

Shrinkage occurs for various reasons, including supplier error, employee theft, and paperwork errors.

It’s a costly problem for your business that can result in a loss of profit: you cannot recoup your inventory costs, and you cannot sell the inventory to generate revenue.

The good news is that shrinkage can be deducted from your personal or business tax returns when discovered. The meticulous records provided by a perpetual inventory system can assist with this.

Constant record keeping and monitoring

More data means more responsibility. Because perpetual inventory systems are designed to track and record every inventory transaction, you must establish an equally robust record-keeping and monitoring system for all data collected.

Why? 

Errors and incorrectly scanned items can have an impact on your inventory records. 

Fortunately, you can deal with this mathematically by using formulas (corrections) that account for most of these factors. We’ll get to that in a minute.

Higher setup costs

Perpetual inventory systems may be more expensive to implement the periodic inventory management method due to the software, equipment, and training needs.

However, the initial setup costs more than pays for itself in real-time inventory updates and accurate stock on-hand accounting. 

These features help your eCommerce business avoid stockouts and encourage minimal employee contact with the inventory.

How Is Inventory Tracked Under a Perpetual Inventory System?

We’ve already established that a perpetual inventory system works by instantly updating stock counts as purchased or sold. But how does a perpetual inventory system work in practice?

This guide focuses on five critical functions of a perpetual inventory system — inventory level, COGS (cost of goods sold), reorder points, purchase orders, and received stock. 

Note: the process may differ slightly when integrated into your business and depends on how your supply chain is structured. We recommend scheduling a demo so we can customize SkuVault to suit your specific needs. 

1. Inventory Level 

When a product is sold, an RFID (radio-frequency identification) or barcode scanner is used to notify the inventory management system linked to your point-of-sale system of a debit update. 

This change is then recorded by the system and distributed to all sales channels.

2. COGS (Cost of Goods Sold)

The Cost of Goods Sold, commonly known as COGS, is a critical financial metric that indicates the direct costs of producing the goods a business sells.

This includes the cost of materials and labor directly used to create the product.

In the context of a perpetual inventory system, COGS doesn’t remain a static figure but is continuously updated and recalculated in real-time, just like your inventory levels.

Let’s delve deeper into how this works.

Every time an item is sold, the cost associated with that particular product is added to the COGS for the period.

This is done automatically in a perpetual inventory system. Similarly, when an item is added to your inventory, the cost of acquiring or manufacturing that item is also considered.

Therefore, any fluctuation in your inventory—be it addition or subtraction—immediately impacts the calculated COGS.

The real-time update of COGS in a perpetual inventory system offers a significant advantage. It provides businesses with immediate visibility into the direct costs of sold goods. This data can help businesses make informed pricing, marketing, and purchasing strategy decisions.

For instance, if the COGS escalates, a business might need to consider increasing its selling prices or seeking cost-effective production methods.

Or, if the COGS is relatively low, it could signal an opportunity to offer promotional discounts to boost sales without compromising profit margins.

Moreover, real-time COGS data enhances financial reporting accuracy. Since COGS is a key determinant in calculating gross profit (Revenue – COGS = Gross Profit), updating COGS data contributes to accurate profit calculation and effective business analysis.

3. Reorder Points

Reorder points are critical to effective inventory management, signaling when to reorder products to maintain optimal inventory levels.

These reorder points aren’t just fixed numbers within the perpetual inventory management system. Instead, they can be dynamically updated based on historical inventory and sales data.

In essence, a perpetual inventory system records all transactions related to each SKU, providing valuable insights into patterns such as sales velocity, seasonal demand fluctuations, and lead time from suppliers.

As a result of this accumulated historical data, the system can intelligently adjust reorder points in real-time to match the flow of your business’s sales volume.

For example, if a particular product’s sales rate suddenly increases due to seasonal demand, the system will detect this change and automatically reduce the reorder point, ensuring timely restocking.

Conversely, if a product’s sales slow down, the system can raise the reorder point to prevent overstocking.

This dynamic adjustment of reorder points contributes to maintaining optimal inventory levels, reducing the risk of stockouts and overstock situations.

It ensures you have the right stock at the right time, ultimately improving customer satisfaction and business efficiency.

4. Purchase Orders

Creating and sending purchase orders in a perpetual inventory system becomes automated, further streamlining your inventory management.

When an SKU reaches its specified reorder point, some systems can automatically trigger a purchase order, negating the need for manual monitoring and intervention.

This means the moment your inventory for a particular item drops to its reorder point, a new transaction order detailing the required quantity of the item is generated.

This order is then automatically sent to your supplier.

This process ensures timely restocking and prevents potential stockouts that could interrupt your business operations and negatively impact customer satisfaction.

Furthermore, this automation minimizes human errors often associated with manual purchase order creation, such as incorrect quantities or wrong supplier details.

It also saves time and resources, allowing your team to focus on more strategic tasks rather than routine inventory monitoring.

Related post: How to Use The Safety Stock Formula: A Step-By-Step Guide

5. Received Products

The reception of products is an essential step in the inventory management process. Perpetual inventory systems like SkuVault are intricately designed to integrate with warehouse management software seamlessly.

This results in a streamlined, efficient process for managing incoming stock.

Here’s how it works: As soon as your stock arrives at your warehouse, it is scanned using barcodes, QR codes, or RFID tags.

The data is directly communicated to your inventory management system during this scanning. This automation ensures that your inventory records are immediately and accurately updated to reflect the new stock.

This real-time update offers several advantages:

1. It ensures the accuracy of your inventory records, reducing the possibility of discrepancies between the physical stock and the recorded data.
2. It provides immediate visibility into the current inventory levels, enabling you to make informed decisions about restocking, sales, and marketing strategies.
3. It helps streamline warehouse operations.

By immediately registering incoming stock, the warehouse management software can efficiently guide the placement of products, optimize space usage, and facilitate quicker, more organized order fulfillment.

A perpetual inventory system is fundamentally built on continuous data collection and utilization at every stage of the inventory management process.

From initial sales and product processing to reorder points and receiving new stock, each step is meticulously tracked and looped indefinitely as long as the system is operational.

This continuous data flow cycle ensures a smooth, uninterrupted supply chain, contributing to efficient operations, reduced errors, and improved customer satisfaction.

It takes the guesswork out of inventory management, replacing it with accurate, real-time data that empowers businesses to make strategic, informed decisions.

Formulas in Perpetual Inventory

Businesses use various methods to account for the cost of available inventory. Regardless, the total inventory cost invoiced remains constant.

When using a perpetual inventory system, these inventory costing systems or formulas provide a more efficient way to keep track of inventory counts.

Below, we’ve compiled a list of the most popular methods and how you can apply them to your business.

The First In, First Out (FIFO) Approach 

The principle underlying this approach is simple: ensure that stock is purchased in the same order in which it was created or purchased.

This method is useful if you keep perishable goods on hand.

It is also advantageous to stock non-perishable goods because items stored for an extended period may need to be updated, damaged, or otherwise unsellable.

One of the most effective ways to incorporate FIFO into your perpetual inventory process is to add new products from the back of your stockroom, ensuring older stock is the first off the shelf when an order arrives.

The Last In, First Out (LIFO) Approach 

Unlike the FIFO method, which calculates the cost of goods sold in the order they were received, the LIFO method calculates the COGS (cost of goods sold) using the cost of the most recent stock purchase order.

In simpler terms, inventory is calculated and adjusted based on the total cost of a purchase order and then compared to sales data, in contrast to inventory levels being changed with each sale.

Weighted Average Cost Approach 

The weighted average cost approach determines how much stock has sold and the current inventory levels at any given time. 

It is calculated as COGS/total number of stock in inventory. 

Related post: Average Inventory Formula: When to Use It and Why – SkuVault

Finished Goods Approach 

Businesses use finished goods inventory counting to determine how much stock is available to ship out as soon as an order is placed.

It is commonly used by businesses that stock raw materials and finished goods.

It is also used to forecast inventory costs by calculating the total cost of inventory(raw materials and finished goods).

Formula: Previous Year’s Finished Goods Value + (COGM – COGS)

Economic Order Quantity 

Economic order quantity (EOQ) is your business’s optimal purchase order for its inventory to maximize warehousing space and minimize stockouts. 

It is calculated by taking the square root of [2SD] / H = EOQ.

Where H stands for Holding Cost (per unit, per year), 

S is Setup fees (per order including handling and shipping), 

D is the demand rate (average quantity of stock sold annually). 

Final Thoughts

Giving your company better inventory management tools ensures its overall success.

Combined with a perpetual inventory system, these tools are an excellent way to manage your inventory effectively.

However, selecting a perpetual inventory system is only one part of the equation; you will also need the right software, integrations, and partners to optimize your logistics efforts.

SkuVault can be your one-stop shop for everything inventory.

SkuVault empowers you to spend less time on inventory management tasks while maintaining complete insight into your supply chain.

Schedule a demo today, and we’ll show you how we can help you work on your business rather than in it.

Are you running an online business using Shopify inventory management? 

Have you heard about Shopify and wondered if it could be the platform for you to launch your very own online business? 

If so, you’re not alone. If you’re looking into shopping cart software, you’ve invariably encountered Shopify in your research. 

For as little as $29 a month, Shopify allows users to create their own online store to sell and ship products. With an easy-to-use interface and a low monetary barrier to entry, it’s easy to see why so many people are using the platform. 

That being said, for all the great things Shopify provides, there’s one key area where the platform struggles: inventory management.

Today we’ll highlight some of the problems Shopify users face when it comes to managing inventory on the platform, as well as apps you can use to solve this problem once and for all. 

We’ll also go over the following:

1. The best inventory management apps for Shopify
2. Shopify-specific tips to help you manage inventory (without losing your sanity)
3. What exactly makes a good inventory management app
4. Other strategies for scaling a profitable eCommerce business

Let’s get started!

Who Needs a Shopify Inventory Management App?

Now that we’ve established some of the issues Shopify presents regarding inventory management, let’s talk about what kind of person will benefit the most from an inventory management app. 

While we believe the short answer here is “everyone,” a few common traits are found in businesses that will benefit most from utilizing this technology.

You spend a lot of time managing your inventory

If you find your inventory is managing you instead of the other way around, you’re a great candidate for inventory management software.

As an eCommerce business, the primary way you manage cash flow is through managing inventory. The two are inextricably linked.

Inventory management software can take a lot of manual tasks off your plate. Eliminate the tedious counting of products, the endless spreadsheets, and the manual tracking of your raw materials, and use that time for things that better benefit your business. 

You regularly run out of stock

If your Shopify store regularly disappoints customers because you’ve oversold your stock, then an inventory management app could answer your prayers.

As we’ve pointed out, Shopify is okay at tracking some inventory items, but it struggles if you require multiple components or raw materials. Not fully tracking your supply chain can lead to disaster when you have accepted orders you can’t fulfill.

A Shopify inventory app can help eliminate this issue – and help keep your customers happy. 

You struggle to keep inventory updated across multiple channels

Without an inventory management tool, keeping inventory data updated across multiple channels is a logistical nightmare.

You may be manually updating for each channel you use. You may be juggling spreadsheets. You may be making errors as you attempt to assimilate all this information into one inventory management system.

The good news is you can eliminate the headache with inventory management software. Automatic inventory updating (especially across multiple channels) is one of the main selling points of a good inventory management system.

So, if any of these examples sound like you, it’s time to start thinking about how to simplify your life and take control of your Shopify inventory by utilizing apps and software.

The good news is you have a lot of options. 

19 Best Shopify Inventory Management Apps

Now that we know what Shopify’s issues are, who stands to benefit the most from inventory management software, and what to consider before you start shopping, it’s time to offer suggestions. 

There are a lot of different software solutions available for Shopify users, but these 19 are the ones we like the most. 

1. SkuVault

SkuVault’s Shopify inventory management software is a full-featured solution that will single-handedly solve your inventory issues. 

SkuVault’s integration with Shopify allows you to sync quantities, sales, and products easily to help speed up your workflows and prevent oversells.

Additional features include:

• Fast implementation – SkuVault syncs your products automatically
• Automate inventory with Shopify. No more manual updates
• Pull orders from Shopify automatically to make fulfillment faster
• SkuVault syncs to Shopify every five minutes for more accurate data

Best of all, SkuVault won’t break the bank. The company reports that many users recoup the cost of their investment in 90 days. 

Schedule a demo today!

2. Stock Sync Inventory Update

Stock Sync promises to help you keep track of all your inventory feeds from different sources, helping to eliminate the need to track and merge data manually or to utilize multiple programs.

It will also automatically update your data hourly or daily between warehouses, vendors, drop shippers, etc. 

Other highlights include:

• Stay synced with your offline inventory system
• Provide support for multiple formats and sources
• Set time for your inventory updates
• Provide help in managing suppliers/dropshipper feed
• Enable users to remove the product from stores

Stock Sync offers a free plan and a 14-day trial version of the paid product. 

3. QuickBooks Commerce (formerly TradeGecko)

QuickBooks Commerce promises to help you keep track of your inventory and orders across multiple channels and locations.

The software is fully integrated with Shopify (as well as WooCommerce, Amazon, eBay, and others).

Additional features include:

• Automate order routing
• Join orders from various source with inventory and accounting apps
• Keep track of products across channels, warehouses, fulfillment locations
• Store data for purchase histories and customer-specific insights
• Provide reports, calculations, and forecasts

QuickBooks Commerce offers a variety of plans and pricing, as well as a 14-day trial to see if it’s a good fit for you. 

4. Extensiv (formerly Skubana)

Skubana isn’t one of the cheap options on this list, but it does offer a lot of bang for your buck. 

This app promises to streamline all of your products, fulfillment centers, and sales channels in one platform. Skubana will also help automate your order process, freeing you from human error and wasted time. 

Other highlights include:

• Import orders from all channels that you sell products on
• Print shipping labels from all main carriers
• Route your orders to 3rd-party fulfillment centers automatically
• Reveal trends, SKU-level FIFO profitability, and actionable opportunities
• View, manage and synchronize multi-channel inventory

5. Stocky

Stocky might be the solution for you if you’re looking for more advanced analytics and features. Here are just a few of its features:

• Demand forecasting
• Automatic stock updates
• Stock transfers
• Performance analysis
• Detailed analytics

6. Sellbrite

If you’re selling many products on eBay, Amazon, or Etsy, then Sellbrite could be your Shopify inventory management software solution. 

Sellbrite offers Shopify sellers the following:

• Automatic inventory syncing across channels
• Fulfillment by Amazon integration
• Multiple warehouse location support

Sellbrite offers tiered subscriptions based on usage. Billed annually, it starts at $24 per month for 100 orders and goes up to $149 monthly for 2,000 orders. 

7. Stock Sync

If you want the most popular Shopify inventory management app (based on ratings in the Shopify app store), you’ll want to look at Stock Sync. 

Here are some of the highlights of what Stock Sync has to offer:

• Suggest prioritized products to order
• Inventory forecasting, purchase orders, merchandising, and more
• Reports the number of remaining items

Try Stock Sync for 14 days for free. Affordable plans are available starting at just $5 per month.

8. ShipHero

If you need a multichannel inventory app that integrates seamlessly across all your sales channels, then ShipHero is a great option. 

ShipHero’s suite of tools will help you avoid overselling and overstock and will sync to allow you to manage your sales channels from one hub. 

With tools for batch order processing, returns, and more, ShipHero is an all-in-one solution for Shopify sellers. 

Here are some of the features and benefits:

• Multi-warehouse inventory management
• Excellent packing, picking, and shipping functions
• Streamline shipping processes to reduce shipping costs
• Real-time tracking for both inventory and orders
• Cloud-based software can be used anywhere
• Kit creation and cycle counting
• Integrations with USPS, eBay, and Amazon

9. Zoho Inventory Management Software

Zoho Inventory is “a cloud-based inventory management software that helps you create and manage both your sales and purchase orders and track your inventory.

You can integrate it with online sales channels like Amazon, eBay, and Etsy, as well as shopping carts like Shopify and many others.”

Zoho’s features and benefits include:

• Seamless CRM integration
• Tools for tracking inventory and customer experience
• Easy integration with a wide range of other software products
• Workflow tools for human resources and marketing
• Easy-to-use interface
• Works with Amazon, eBay, and Shopify accounts

Zoho offers a trial version of its software to help you determine if it’s right for your business. After that, plans start at $59/month for 1,500 orders up to $329/month for 25,000 orders.

10. Fishbowl Inventory

Fishbowl is “a hybrid manufacturing and warehouse management solution designed for small and midsize companies.

Key features include inventory control, material requirements planning (MRP), job shop floor control, work order management, manufacturer orders, and bills of materials. The solution can either be deployed on-premise or hosted in the cloud.”

Fishbowl offers up the following features and benefits:

• Integrates with other software, apps, and tools.
• Helps with work orders and asset management
• Full suite of analytics tools and reports
• Real-time inventory updates
• Non-expiring subscription

Fishbowl can feel a bit pricey when you first start using it, but as you integrate it into your Shopify store, it quickly pays for itself. 

11. Inventory Planner

Inventory Planner is a state-of-the-art, cloud-based application designed specifically to revolutionize inventory management and planning for Shopify sellers.

The true strength of Inventory Planner lies in its ability to predict the exact products to restock and the ideal time for restocking them.

By using reliable predictions of future demand and considering things like market trends and seasons, Shopify sellers can avoid having too many items that don’t sell well or running out of items when demand is high.

Inventory Planner empowers Shopify sellers to make smarter, data-driven replenishment decisions through its pinpoint, accurate forecasting, in-depth analysis, and user-friendly inventory reporting.

Features include:

• Seamless Shopify Integration
• Intelligent Demand Forecasting
• Automated Replenishment Recommendations
• Multi-Channel Management
• User-Friendly Interface

12. Veeqo

Veeqo is “the inventory and shipping platform for ecommerce.” 

They help online retailers deliver the experience their customers deserve. Veeqo syncs inventory across the world’s most popular eCommerce sales channels — including Shopify, Magento, WooCommerce, Amazon, eBay, Etsy, and Walmart — giving you an inventory you can trust 100% of the time. 

Beyond that, the software integrates with popular shipping companies as well. 

Benefits and features include:

• Excellent customer service and support
• Easy integration with multiple channels
• 21 different shipping order integrations
• Intuitive interface and easy-to-navigate backend

13. Katana

Many inventory management tools on this list are designed to work with Shopify and other platforms and channels. 

However, if you’re looking for a tool focused solely on Shopify, then Katana could be the beginning and end of your search.

Since Katana is an accredited Shopify partner, you know you’ll get a software solution that works perfectly with the platform.

If you need inventory management just for Shopify, you’ll definitely want to look into this solution.

Katana’s features include:

• Ability to streamline inventory tracking for manufacturing
• An automatic booking engine
• A sales fulfillment syncing portal
• Easy to use, intuitive interface

14. SellerCloud

SellerCloud is another inventory management solution designed to help you maximize profits on a wide range of channels, including Shopify. 

The software promises to “simplify your operations and expand to more channels. Seamlessly control your inventory, catalog, purchasing, and fulfillment.”

It can help you achieve these goals with the following features:

• Simple and convenient supply chain management
• Sync all of your orders and inventory fast
• No need to maintain separate connections with suppliers
• Reorder features for quick and easy selling
• Convenient tools
• Pricing is straightforward and transparent

15. ChannelAdvisor

ChannelAdvisor will help you “streamline your e-commerce operations, expand to new channels and grow sales — all from a single, centralized platform.” And they’ve worked with companies like Asics, Party City, and Kitchen-Aid, so this isn’t just marketing hyperbole. 

ChannelAdvisor isn’t solely a tool for Shopify sellers, but the software will work with the platform and can simplify managing your Shopify store. 

Here are some of the features of this software:

• Excellent customer service and support
• Manage orders across multiple marketplaces
• Reliability
• Customizable interface options for your specific needs
• Variable rate pricing
• Convenient layout

16. NChannel

NChannel is another cloud-based inventory management solution. This will integrate your sales channels (like Shopify) with your order fulfillment system.

The benefit here is that by syncing your sales and fulfillment, you’ll be better able to avoid things like stockouts, which can lead to customer dissatisfaction and lost sales.

Here are some of the software features and benefits:

• Convenient solutions for companies with lots of data
• Integrates with a wide range of apps and software
• Easy to use, highly customizable interface
• Great for tracking orders
• Updates stock levels in real-time

Starting at $400 a month, NChannel is a pricey option. The lack of a free or trial version is also disappointing, but you can connect with the team and schedule a demo to see if it’s a potential solution for your business.

17. Syncio

If you have multiple Shopify storefronts and want to keep your inventory synced across all of them, Syncio is a product you should consider.

This app provides “real-time inventory sync, product information, and orders across multiple Shopify stores in just a few clicks.”

Here are some of the key features:

• Group all product information or map by inventory
• Display products across multiple  Shopify stores
• Update inventory status in real time
• Requires no CSV files
• Customize product description and price

Syncio offers a free 14-day trial, and has plans ranging from $19.99/month to $129/month.

18.  Simple Inventory

As the name implies, Simple Inventory is dedicated to making your inventory management easier thanks to automation. 

While not a full-fledged inventory software management suite, Simply Inventory is a good starter app for new sellers on the Shopify platform.

The affordable price and basic functionality will help sellers get started and bridge the gap until they need more options and scalability solutions. 

Features and benefits include:

• Easily update the price of your products
• Update inventory by SKU
• Save CSV files and re-upload it to Shopify
• Quickly export products to a simple CSV file
• Automate the process of uploading inventories

Simple Inventory is one of the most affordable options here. Prices start at $4.99/month. 

19. SyncLogic

SyncLogic was the first Shopify store-syncing app, and they’re still around for sellers who need to manage their inventories across multiple storefronts. 

SyncLogic “extends the reach of your products beyond one store. The app allows you to add a group of products from one store to another and have the changes made to the original product reflect on the connected store.”

Features of SyncLogic include:

• Connect and sync operations
• Customize the price and product description
• Configure price conversions
• Integrates with dropshippers and wholesalers

What is Inventory Management?

Before we get to the problems and solutions portion of this post, we should take a moment to talk about inventory management. 

Inventory management is, in the simplest terms, a system for tracking all of the products and raw materials you use in your business. 

Pretty simple, right?

While the definition of inventory management is easy to understand, the execution can be a bit more challenging – particularly as your company grows. 

Whether you’re a Shopify seller with a single product or a Fortune 500 company with supply chains that span the globe and multiple warehouse locations, understanding inventory management is vital to your success. 

Why is Inventory Management Important?

At this point, you may wonder why inventory management is so important. Here’s why.

Inventory management is vital for companies for several reasons – the primary one being that it reduces costs in raw materials and human resources.

Beyond that, inventory helps keep your customers happy by preventing kinks in your supply chain that can lead to delays. 

Because of this and how complex the supply chain can get for large companies, inventory control can literally be the difference between astronomical success and catastrophic failure. 

Companies with good inventory management systems are far more likely to find success than their competitors that are less invested. 

In practical terms, inventory management can save you from losing sales because you don’t have enough products to meet demand. It can also save you from sinking money into carrying excess inventory you don’t need. 

And on top of that, it can help you avoid disappointing your customers by taking orders you can’t fulfill. 

As your business grows, inventory management becomes increasingly more important, so it’s crucial to have the right tools to keep you on track. 

Common Problems with Shopify Inventory Management

Now that we know what inventory management is and why it matters let’s talk about some issues with managing your inventory directly through Shopify. 

1. Raw Material Inventory Management

Shopify is great for drop shippers and resellers. Still, if you actually make your product and require maintaining an inventory of raw materials to make said product, you’ll probably find the platform a bit lacking. 

Say, for example, you make barbells for weightlifters. Shopify is pretty good at tracking the number of barbells you have for sale at any given moment, but what about all the materials you need to track to make those barbells? Can it track the steel, the bushings, the sleeves, and so on? 

Unfortunately, no. Shopify has no option to track raw materials – meaning you’ll need either a separate app to track your raw materials or manually on a spreadsheet. This is not a great use of your time, and the additional steps leave room for human error to pervade. 

2. Reordering

We talked earlier about how inventory management prevents problems for your business by ensuring you never have too much or too little inventory.

Too much inventory costs you money for storage and sitting on materials and products. Too little inventory costs you money because you can’t fulfill orders if you don’t have a product.

Knowing when to reorder or not reorder is incredibly valuable.

Which makes it too bad Shopify doesn’t provide you with this information. 

Couple this with the fact that Shopify will also not track your raw materials, and there’s a recipe for disaster brewing.

If you’re relying solely on Shopify to track inventory, you have one option here – manually track your inventory so you know when to reorder. That’s not a good use of your time nor a particularly efficient inventory management method in the 21st century. 

3. Batch, Serial, and Expiry Tracking

If you run a business where you face recalls or sell products that can expire, then you understand the importance of being able to track your inventory by batch, serial or expiry dates. 

And again, Shopify doesn’t offer this sort of tracking, meaning you’ll be spending lots of time recording things on spreadsheets, reconciling different sheets if there’s some recall, and basically doing a lot of manual labor you could avoid. 

Shopify will leave you frustrated if you need to track your inventory by these metrics. 

4. Reports and Analytics

In this day and age, analytics are everything. 

If you’re not looking through your reports and analyzing data and results, you’re probably missing out on valuable insights that could help you take your business to another level. 

Shopify does offer some reports and analytics, but unfortunately, most of these are of the superficial variety. Shopify’s great at telling how much of a product you’ve sold, but if you want to take a deeper dive and look at stats like your margins or just pure profit, you’re bound to be disappointed. 

These are just some reports the platform lacks – there are obviously more. If you’re really dedicated to understanding your analytics and like detailed reports to help guide your decisions, Shopify will likely come up short.

These are just four Shopify inventory management issues we see most frequently. Some are specific to certain industries, but these are the most common. 

The good news is it’s possible to overcome all of these issues (and many others) by adding inventory management software that helps Shopify operate more efficiently.

What to Consider When Choosing an Inventory Management App

Hopefully, by now, you’ll see how a Shopify inventory management app can take your Shopify selling experience to the next level. 

If you’re ready to take the plunge, here are some things to consider before we dive into the actual apps and their features and benefits:

The size of your team

In the Software as a Service space, many companies offer apps and programs with a monthly fee rather than a flat-out purchase price.

There can be a lot of variables when figuring out your monthly rate – and one of the biggest revolves around the number of users who will be utilizing the service. 

Many companies offer tiered pricing, and companies with fewer users will generally pay less per month. As such, it can be worthwhile to sit down before exploring options and figure out how many users you’ll need – and eliminate those without access.

How much inventory are you tracking?

There are Shopify app and software options out there for almost every kind of business imaginable – and at almost every size imaginable.

One of the key things to consider is how much inventory you need to track. There’s no need in buying a product designed with multichannel functionality and a ton of bells and whistles if you’re essentially only selling on one platform and one channel. 

That being said, don’t sell your business short. Will you expand in the future? Will you have more channels? Will you need raw material management? If you think you will, then it’s better to plan for that now. It’s easier to buy software with things you might need in the imminent future and not need them than to buy what you need today and have to upgrade a year or two down the road. 

What kind of inventory are you managing?

As discussed earlier, not all inventory is the same.

One of Shopify’s biggest shortcomings is that it doesn’t track raw materials nor does it track batches and expiry dates.

If you have products where raw material inventory management is important, or where rotating expired stock out of inventory is part of your process, you’ll want to find a software solution that caters to those specific needs. 

What is your budget?

It’s always good to know what you want to spend before you start shopping. 

The good news is that there are solutions for almost every budget. You can break the bank and go big with a service that offers every conceivable bell and whistle, you can find the middle ground and find the perfect balance between price and functionality, or you can dip your toes into the water with products that have fewer features, but are super affordable (or in some cases, free).

Integrations

What other software and applications are you using? You’ll want to make sure to consider how they’ll work with your new Shopify solution. 

There’s nothing worse than making a decision only to realize that your new software or app isn’t compatible with things you’re already using – other than actually buying the app or software and then realizing the problem. 

Head off this potential issue early on by listing all the tools you’re using to ensure everything integrates smoothly.

Final Thoughts

We fully believe that Shopify is an amazing tool. It’s lowered the bar for starting a business and allowed countless people to chase their entrepreneurial dreams. 

And yet, for as great as it is, it still falls short in a few key areas. Inventory management is an important part of running a successful business, and Shopify’s inventory management tools are underwhelming at best. 

Fortunately, there is no shortage of fantastic apps that can help you manage your inventory like a giant corporation with huge supply chains and countless distribution centers.

And even if you don’t want to be the next Amazon, other apps will help you guarantee you’re never out of stock – and they won’t break the bank in the process. 

No matter what solution you choose, it’s important to understand that managing your inventory is one of the key components to building a successful business.

It can help you save money by preventing you from carrying excess inventory, preventing you from overselling items, and keeping your customers happy by ensuring that you can fulfill their orders.

In short, good inventory management can be the difference between success and failure for your business.

To learn more about growing and scaling an eCommerce business, check out these other posts next:

1. What Are eCommerce Platforms & How Do They Drive Sales? (2023 Guide)
2. The Ultimate Guide to Starting An ECommerce Business in 2023
3. 9 Best eCommerce Open Source Platforms For Your Online Business (2023 Edition)

Are you tired of wrestling with spreadsheets, manual processes, and stock discrepancies that keep your business from reaching its full potential?

If you resonate with these struggles, it’s time for you to invest in inventory management software.

With real-time tracking, smart forecasting, and seamless integration with your favorite eCommerce platforms, modern inventory management platforms are the ultimate tool for businesses of all sizes.

The problem

Inventory is a company’s biggest asset, yet many companies struggle to understand the importance of inventory management.

It doesn’t have to be this way.

Implementing online inventory management software will help you streamline your warehouse and logistics operations, reduce mistakes, and improve customer service. Let’s break it down further.

Related Posts:

• 19 Top Effective Inventory Management Techniques and Best Practices
• 15 Successful Strategies for Inventory Management

What is inventory management software?

Inventory management software tools are programs designed to track inventory levels, sales, orders, deliveries, and other warehouse or distribution center needs.

Beyond this, inventory management software can help manufacturers create things like work orders, purchase orders, bills of materials, and a wide range of other documents needed in the course of business.

Related Post: 12 Best Inventory Management Apps

Benefits of using inventory software

• Easily track the flow of products and assets through your warehouse
• Spot issues in your supply chain (before they impact profitability)
• Ensure items are shipped quickly, accurately, and efficiently

The best inventory management software (IMS) will serve as a central hub for your inventory data.

It will manage and measure the amount, location, pricing, ordering, and fulfillment process for inventory across your platforms and channels.

Inventory management software and eCommerce software: A match made in heaven

eCommerce inventory management software gives you an accurate count of what’s in your system at any time, helps you forecast future demand, and ensures you have enough stock on hand to handle fulfillment.

One of the key ways it achieves this is by integrating with all your online sales channels and marketplaces.

eCommerce inventory management tools like SkuVault will sync the items in your warehouse with your online listings across all your different sales channels.

This helps ensure you always have the right amount of product available on all your different marketplaces, which in turn means you’ll be able to fulfill your orders and create happy customers.

Your eCommerce inventory management software will integrate with your existing supply chains, third-party sales channels and marketplaces, vendors, and drop shippers.

An eCommerce inventory management system can tell you at a glance which products are out of stock, in stock, understocked, and overstocked. Each of these items is important when it comes to the efficient management of your inventory.

Once orders are placed, SkuVault will generate pick lists for warehouse teams to pick and pack.

Then, employees can reference the SkuVault app on their mobile device to find the most efficient route to the warehouse, aisle, shelf, and bin location to prepare orders for shipping.

Related Post: 6 Best Inventory Management Systems for Ecommerce

Why is inventory management software important?

If you’re only using Excel, tracking sheets, or no tracking system at all, costly mistakes add up quickly.

Inventory management software can track your inventory and sync it across all eCommerce channels and warehouse locations at the same time.

It can help you forecast demand and make reorders easier. This prevents you from over-ordering, under-ordering, and sending mis-shipments of quantities from the moment they enter your warehouse to when they leave.

Better yet, if you’re a small business with an end goal to scale up, inventory management software such as SkuVault can grow with your business.

Businesses of all sizes can benefit from using an IMS. If you’re a small business just starting out, an IMS will give you the functionality to run an efficient warehouse without all the complexities of a bigger warehouse management system.

Small to mid-sized businesses are great candidates for an IMS. That means low SKU counts with a high volume per SKU perform well within the inventory tracking functions of inventory management software.

Even larger enterprise companies can benefit from an IMS. Enterprise companies new to eCommerce, for example, can benefit from the inventory certainty and ability to go online faster using inventory management software.

Often, larger companies either have no inventory management system at all, outdated processes, or low maintenance environments.

An IMS like SkuVault is a gradual step into inventory tracking that doesn’t require months of training, a high learning curve, or an extensive implementation process.

Related Post: How to Control Costs with Modern Inventory Management

Can you use inventory software to manage multiple locations and multiple sales channels?

Absolutely, inventory management software like SkuVault is designed to handle multiple locations and sales channels efficiently.

By using advanced features and integrations, businesses can keep track of their inventory across various warehouses, stores, and online marketplaces in real-time.

Here’s how inventory software simplifies this process:

Centralized inventory management

Inventory management software allows you to manage all your inventory from a centralized platform, or “single source of truth.”

This means you can easily track inventory levels, stock transfers, and sales across multiple locations in real time.

This centralized approach helps you maintain accurate inventory counts and reduces the risk of stock discrepancies between locations.

Sales channel integration

Modern inventory management software like SkuVault offers seamless integrations with various eCommerce platforms and online marketplaces, such as Amazon, eBay, Shopify, and WooCommerce.

This enables businesses to automatically synchronize inventory data across multiple sales channels, ensuring that stock levels are always up-to-date.

As a result, you can avoid overselling or stockouts and provide a consistent shopping experience for your customers.

Automated stock transfers

Inventory management software can automatically initiate stock transfers between locations based on pre-set rules and triggers.

For example, if the stock of a specific item falls below a certain threshold at one location, the software can initiate a transfer from another location with surplus inventory.

This helps maintain optimal stock levels at each location and prevents stockouts or excess inventory.

Real-time reporting and analytics

With inventory management software, you can access real-time reports and analytics for each location and sales channel.

This provides valuable insights into sales trends, product performance, and stock levels, allowing you to make data-driven decisions for inventory replenishment, pricing strategies, and promotional campaigns.

Related Post: Inventory Reporting Guide: The Key Reports & Best Practices

Streamlined order fulfillment

Inventory software enables businesses to optimize order fulfillment across multiple locations and sales channels.

By automatically assigning orders to the most suitable warehouse or store based on factors such as proximity to the customer, stock availability, and shipping costs, businesses can reduce delivery times and shipping expenses.

Six more benefits of using inventory management software

1. Better inventory oversight

Using inventory and order management software ensures that orders are filled and shipped in a timely manner. It also guarantees you have enough inventory on hand to meet demand.

2. Increased efficiency in operations

Inventory and order management software will not only guarantee you don’t tie up money in inventory you don’t need, but it can also help you make sure expiring inventory is prioritized rather than going to waste on a shelf.

3. Minimize inventory costs while increasing profits

Are you spending a lot of money on carrying costs for inventory sitting in warehouses? Do you have dead stock taking up space and eating into your profits?

Inventory and order management software can help you avoid these expenses.

4. Reduce costs by ensuring order accuracy

Incorrect order fulfillment and shipping issues cost you money. Inventory and order management software can help you get closer to 100% accuracy, which is guaranteed to improve your bottom line.

5. Better customer service

Having access to real-time order status is essentially expected these days. Customers want to know where their order is at each step of the process – from the moment it’s placed until a postal carrier leaves it in their mailbox.

Inventory and order management software make sure you can provide this information.

6. Fully automate manual tasks

Instead of having employees sitting around entering orders and figuring costs manually, why not automate the process?

Order and inventory management software can make creating purchase orders simple with barcode or RFID scanning.

What are the types of inventory management systems?

When it comes to managing inventory, it doesn’t matter if you track items manually on paper, use complicated spreadsheets, or invest in inventory management software.

No matter which method you choose, it will fall within one of two distinct inventory management systems: Perpetual Inventory System or Periodic Inventory System.

Perpetual inventory system

If you use a perpetual inventory system, you are continually updating counts, stock levels, and other key inventory elements in real time as items are received, sold, shipped, or transferred.

When managed properly, perpetual inventory systems can make inventory management significantly easier because they provide continual, up-to-date information about orders and stock levels.

The potential downside of the perpetual inventory system is that it requires specialized equipment like barcode readers or RFID technology (we’ll discuss both momentarily), which means there is a bigger initial investment when implementing this system.

Periodic inventory system

A periodic inventory system does not track inventory in real time. Instead, it tracks inventory by comparing a starting and ending number for tracked items during a predetermined period of time.

To track inventory with a periodic system, you will need to regularly schedule and conduct manual counts, look for discrepancies, and then manually reconcile your numbers for the starting point for the next period.

The downsides of the periodic inventory are that the physical counts often require you to suspend warehouse or distribution center operations.

They also require employees to move from their regular activities into inventory counting mode.

On top of that, periodic inventory tracking makes theft or shrink harder to spot and it can be difficult to figure out what’s causing discrepancies between count numbers and recorded numbers.

Barcode inventory systems

If you select a perpetual inventory system, you’ll often use either barcode or RFID technology to automate tracking. Let’s break down what each system brings to the table.

With barcode systems, you’ll get greater accuracy and efficiency than traditional manual tracking methods. Barcodes can be easily printed and applied to products, making the implementation process relatively simple.

Any time a barcode is scanned, inventory is updated. This allows you to continually monitor stock levels, track items in your warehouse, and spot places where logistics operations can be improved.

The downside is the same as mentioned in the perpetual inventory system section. The initial costs can be a challenge for some companies.

However, once the initial investment is made, barcode scanning systems can pay for themselves with increased inventory efficiency in short order.

Related Post: How To Make Your Own Barcodes: Small Business Guide

RFID inventory systems

RFID stands for Radio Frequency Identification, and like barcode scanning, it allows for more automated real-time inventory tracking in your facility.

RFID technology uses radio waves to transmit data between tags and readers, making it a highly efficient and accurate method of tracking inventory.

Unlike the barcode system, where employees will often manually scan items, RFID systems place trackers throughout your facility.

As tagged items move past the readers, the inventory information is updated automatically in the system. This allows for greater visibility of inventory movement and helps reduce human error in tracking.

Readers can log tags from distances of 40ft to 300ft depending on what kind of technology you’re using, meaning you can easily track items throughout the entire facility without having to send employees to scan them.

Companies like Impinj and Alien Technology offer a variety of RFID readers and tags designed for different industries and applications.

The downside of RFID is that the tags are significantly more expensive than barcode stickers. There can also be interference issues between the tags and scanners, which can impact the accuracy of the system.

However, advancements in RFID technology continue to address these challenges, making it an increasingly attractive option for businesses.

Companies that move a lot of high-value items or have complex inventory management requirements will probably find RFID worth the investment.

To help you decide if RFID is the right choice for your business, RFID Journal provides a wealth of resources and information on the latest developments in the industry.

How can a good inventory management system help with supply chain management?

A good inventory management system plays a crucial role in supply chain management by providing better visibility, control, and optimization of inventory processes.

Here are some ways in which a robust inventory management system can enhance supply chain management:

Improved Visibility

A good inventory management system offers real-time visibility into inventory levels, sales, orders, and shipments across the entire supply chain.

This helps businesses to identify potential bottlenecks, stock discrepancies, and areas for improvement.

Streamlined Procurement and Replenishment

Inventory management software enables businesses to automate procurement and replenishment processes.

By using data-driven demand forecasting and setting reorder points, businesses can ensure that they have the right amount of inventory at the right time, preventing stockouts or excess stock.

Optimized Warehouse Management

Inventory management systems can help optimize warehouse operations by providing efficient storage and picking strategies, reducing order fulfillment time, and minimizing the risk of errors.

This leads to increased efficiency and cost savings in the supply chain.

Vendor Management

A good inventory management system allows businesses to manage their relationships with vendors more effectively.

By tracking vendor performance, lead times, and pricing, businesses can make informed decisions about which suppliers to work with and negotiate better terms.

Related Post: What is Manufacturing Lead Time and How to Reduce It

Risk Mitigation and Contingency Planning

Inventory management software can help businesses identify risks and develop contingency plans for potential supply chain disruptions.

By monitoring inventory levels, lead times, and supplier performance, businesses can proactively address potential issues before they escalate.

Enhanced Collaboration and Communication

A good inventory management system facilitates collaboration and communication among various stakeholders in the supply chain, such as suppliers, manufacturers, distributors, and retailers.

By providing a centralized platform for sharing information and coordinating activities, businesses can streamline their supply chain operations and ensure all parties are aligned.

In summary, a good inventory management system is essential for effective supply chain management.

By providing improved visibility, streamlined procurement, optimized warehouse management, better vendor management, risk mitigation, and enhanced collaboration, businesses can significantly improve their supply chain operations, reduce costs, and increase overall efficiency.

Is an inventory management system suitable for small and midsize businesses?

One question we’re commonly asked is whether or not a small business can truly benefit from using inventory management systems and software.

The short answer is, absolutely.

For whatever reason, there’s a misconception that only major corporations with multiple warehouses and global shipping need inventory management systems.

This could not be further from the truth.

There are major benefits to using inventory management systems for small companies that can help them grow their business with fewer headaches.

Freeing up time by automating your inventory process will allow you to focus on growth opportunities. Gaining a better understanding of how a product sells (or doesn’t sell) will allow for better forecasting and stock management.

Beyond that, an inventory management system will help you become more efficient by streamlining your shipping and reducing errors in picking orders. You’ll even have a better handle on returns.

Inventory management systems and software are game-changers for small businesses. Waiting to explore these tools until your company is “bigger” is a mistake that can delay your growth and cost you money.

Related Post: Small Business Inventory Management Software: How to Get Online Faster

Inventory management for enterprise businesses

Enterprise businesses face unique challenges when it comes to inventory management, as they often deal with high volumes of products, multiple sales channels, and complex supply chains.

A robust inventory management system is essential for addressing these challenges and ensuring seamless operations.

Scalability and customization

A key feature to look for in an inventory management solution for enterprise businesses is scalability.

The system should be able to grow with your business, handling increasing volumes of inventory and transactions with ease.

Customization is also essential, as enterprise businesses often have unique workflows and specific requirements that need to be addressed.

Integration with other systems

An enterprise inventory management system should integrate seamlessly with other software and tools used by the business, such as ERP systems, warehouse management systems, and accounting software.

This helps streamline processes, reduce manual tasks, and improve overall efficiency.

Related Post: ERP Inventory Management System vs. IMS: Know the Difference

Real-time inventory tracking

As with any inventory management system, real-time inventory tracking is crucial for enterprise businesses.

This ensures that inventory data is always up to date, allowing for better decision-making and improved stock management.

Advanced reporting and analytics

Enterprise businesses need powerful reporting and analytics capabilities to gain insights into their inventory and make data-driven decisions.

A good inventory management system should provide customizable reports, trend analysis, and other tools to help businesses optimize their inventory processes.

Multi-location and multi-channel support

Enterprise businesses often operate in multiple locations and sell through various channels, making inventory management more complex.

An inventory management system should support multi-location and multi-channel operations, ensuring that inventory levels are accurate and synchronized across all sales channels and warehouses.

By choosing an inventory management system that addresses the unique needs of enterprise businesses, companies can improve their operations, reduce costs, and ultimately, increase profitability.

Related Post: 6 Top Multichannel Inventory Management Software and How to Choose

Advanced inventory features of SkuVault to help you manage inventory and increase profitability

If you’re ready to learn more, we’d love to introduce you to SkuVault, our browser-based, integrated inventory management software designed to help increase your profitability and streamline your logistics.

Here are some of the specific ways SkuVault helps.

Real-time inventory tracking

SkuVault offers real-time inventory tracking, which allows businesses to monitor their stock levels, sales, and order fulfillment processes continuously.

This ensures that inventory data is always up to date and helps businesses make informed decisions about stock management and replenishment.

With real-time inventory tracking, SkuVault can automatically generate low-stock alerts, so businesses are informed when they need to reorder items or adjust their inventory strategies.

This helps prevent stockouts and ensures that customer orders can be fulfilled efficiently.

SkuVault’s real-time tracking also provides insights into incoming stock and helps businesses manage their supply chain more effectively.

This data can be accessed through SkuVault’s platform on mobile devices, so managers and team members can monitor inventory levels and make decisions on the go.

Barcode scanning and label printing

SkuVault supports barcode scanning and label printing, which streamlines the process of receiving, picking, and shipping inventory.

By automating these processes, businesses can minimize errors, improve accuracy, and increase efficiency in their warehouse operations.

Demand forecasting and reorder points

SkuVault’s demand forecasting and reorder point features help businesses accurately predict future inventory needs and determine the optimal time to reorder products.

This helps prevent stockouts, reduces excess inventory, and ultimately increases profitability.

Kitting and bundling

With SkuVault, you can create and manage kits and bundles, and sell multiple products as a single unit.

This feature can help increase sales, improve inventory turnover, and optimize warehouse space.

Related Post: Kitting: How It Works and Its Benefits in eCommerce

Cycle counting

SkuVault’s cycle counting feature enables businesses to perform regular inventory audits without disrupting their daily operations.

By identifying and addressing discrepancies in stock levels, businesses can maintain accurate inventory records and reduce shrinkage.

Related Post: 11 Inventory Cycle Counting Best Practices and Tips

Quality control and holds management

SkuVault offers quality control and holds management features, allowing businesses to track and manage damaged, expired, or otherwise unsellable inventory.

This helps businesses maintain high product quality, protect their brand reputation, and minimize losses due to unsellable stock.

Multi-warehouse and multi-channel support

SkuVault supports multi-warehouse and multi-channel operations, allowing businesses to manage their inventory across multiple locations and sales channels seamlessly.

This feature ensures that inventory data is consistent and accurate across all platforms, making it easier to manage and optimize the supply chain.

Comprehensive asset management

SkuVault plays a crucial role in asset management and asset tracking with a comprehensive set of inventory tools.

With its automated workflows, SkuVault makes it easy to manage and track assets throughout their lifecycle, from procurement to disposal.

By using SkuVault’s inventory tools, you can maintain accurate records of your assets, monitor their location, and track their movement within your warehouse or distribution center.

The automated workflows help to minimize human errors and save time by reducing manual tasks associated with asset management.

Integration with point-of-sale (POS) systems

SkuVault integrates with various point-of-sale systems to help businesses streamline their inventory management processes without the hassle of manual data entry.

This integration allows for real-time syncing of inventory data between SkuVault and the POS system, ensuring that stock levels are accurate and up-to-date across both online and brick-and-mortar stores.

By connecting SkuVault with your POS system, you can efficiently manage your inventory, avoid stockouts or overstocking, and maintain a seamless sales experience for your customers.

Related Post: Omnichannel Inventory Management: What It Is and Best Practices

Integration with popular eCommerce platforms

SkuVault integrates with popular eCommerce platforms such as Shopify, Amazon, eBay, and WooCommerce.

Accounting software

It also seamlessly integrates with accounting software like QuickBooks, so you can easily manage your financial data alongside your inventory and assets.

This integration helps streamline your financial reporting, so you can monitor your expenses, revenue, and overall financial health with greater accuracy and efficiency.

By connecting SkuVault with QuickBooks (or your accounting system of choice), you can automate the flow of data between the two systems, reducing manual data entry and the risk of errors.

CRM software

SkuVault has partnered with various CRM software vendors (like SalesForce) to provide seamless integrations that facilitate the flow of information between inventory management and customer relationship management.

This collaboration ensures that businesses can access accurate inventory data within their CRM systems, supporting informed decisions about customer orders, product availability, and promotions.

In turn, this helps to save time, improve the accuracy of your financial records, and simplify the overall asset management process.

Businesses can sync their inventory data across all sales channels, ensuring accurate stock levels and reducing the risk of overselling.

Final thoughts

In short, businesses can optimize their supply chain operations and achieve greater success with inventory management software and its many powerful features (like real-time tracking, barcode scanning, demand forecasting, kitting and bundling, cycle counting, quality control, and multi-warehouse and multi-channel support).

We’d love to show you SkuVault in action. If you’re ready to stop working in your business and start working on your business, book a live demo today.

Selling handmade items online has many benefits. The biggest perk is the ability to monetize an existing hobby or passion. After all, if you enjoy creating things, why not reap the rewards of your labor?

Thanks to the rise of eCommerce, creative entrepreneurs can make and sell DIY items that go far beyond the scope of the local craft fair – to a global audience, in fact.

But what homemade products sell the best? Which are the most profitable crafts to sell? How do you even begin to sell crafts online?

We’ll dive into data-driven insights that answer these very questions, as well as look specifically into the most popular handmade crafts in the DIY space.

Whether you’re a complete beginner looking to start your own craft business or an experienced crafter looking for the next steps and strategy, this post will have something to spark your inspiration.

Before we go category-by-category, let’s establish a few helpful principles.

Validating what kind of crafts sell online

Even if you don’t see your idea on this list, don’t give up just yet. Market demands fluctuate. The surefire way to gauge handmade items in demand is to do a few simple searches.

Your three primary sources should be Amazon Handmade, Etsy, and Google. Type in a few variations of your product idea and see if any competitors come up.

For example: “Game of Thrones costume jewelry” (very specific example, there).

If you see competitors or similarly-aligned vendors, don’t be discouraged. That’s a good thing. That means there’s actual profitability in your idea. And, of course, the more competitors, the larger the attainable market.

Related Posts:

• How to Sell on Amazon Handmade: What You Need to Know
• Why, Where, and How to Sell Crafts and Handmade Items
• How to Sell on Etsy: All the Steps You Need to Succeed

Should you pursue the most profitable crafts? 

Well, yes and no. You need to make sure that your product idea is profitable, of course. Creating a product without an attainable market is a recipe for disappointment. 

However, in another sense, you should not chase the market and just go after trending crafts. If you have no experience or passion for handmade jewelry, don’t pursue that category just because it seems the most lucrative.

That said, the comprehensive list of products in this post has proven itself to be historically profitable. Choose any one of these, and you’ll not have to worry about the market drying up anytime soon. 

With these caveats out of the way, here’s our comprehensive list of the best-selling crafts. 

Health and beauty products

I don’t need to cite stats or studies to convince you that health and beauty has, and always will be, a highly lucrative market. 

But with broad appeal comes the need to niche down, and niche down hard. It’s not enough to specialize in “body lotion.” To stand out, you need to target a hyper-specific persona (think “all-natural body lotion for combination skin”).

Whenever you’re dealing with health or beauty products, you need to be mindful of the local laws and regulations. You also need to be well-versed in biological reactions to ingredients and have a basic understanding of chemistry. 

Your production environment needs to comply with specific FDA standards, and you’ll likely want to consult with a lawyer to tighten up your labeling practices. 

If you’re willing to jump through these hoops, items in the DIY health and beauty space are among the top-selling homemade products of all time.

Some examples of top-selling handmade health and beauty products are:

1. Soaps and bath bombs
2. Lip balm
3. Cosmetics (novelty, specialty, organic)
4. Creams and lotions

All of these are reasonably easy to create and sell from your own home, especially soaps and lip balm.

Clothing and apparel

Thanks to inexpensive design software and print-on-demand sites like Zazzle, Teespring, and Bonfire, starting a custom-branded apparel business has never been easier. 

Apparel printing is a perfect handmade side hustle for those who are more creative than “crafty,” per se. If you’re a graphic designer, an artist, or have a cool idea for a shirt, you can make it a reality in less than a day’s work. 

Further, custom clothing and apparel are perfect for businesses with existing audiences like gyms, bands, and local specialty shops. 

Custom-printed apparel is not only a significant revenue stream but free advertising and an excellent way for your audience to connect with your brand. 

Even if you’re more the entrepreneurial type than the artistic type, you can still profit from selling apparel. Just hire a competent designer on a freelance site like Upwork, pay a one-time fee for one or several designs, and upload to your favorite print-on-demand site.

Some fulfillment sites even offer dropshipping, meaning you don’t need to handle the apparel directly — it goes straight to the buyer. 

If you want to go even deeper, you can look into screen printing your own clothing designs, cutting out the middleman altogether. 

Some examples of custom-printed clothing and apparel are the following:

1. Bumper stickers
2. Magnets
3. T-Shirts
4. Hoodies & sweaters
5. Mugs
6. Mouse Pads
7. Enamel pins
8. Stickers
9. Coasters
10. Face masks (in the COVID age)
11. Pillows
12. Towels

Related Post: How Make-To-Order Works and Its Advantages

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Jewelry

If you check any popular handmade marketplace, you’ll consistently find jewelry among the most popular handmade items.

There are so many things that make custom jewelry appealing to both sellers and buyers. It’s often inexpensive. There are tons of niches to choose from (novelty, costume, fine), and they’re easy to ship and mass produce.

However, as mentioned above, a low entry barrier means high competition (this will be a universal truism for any item on this list). So niching down is more than just a luxury, it’s a necessity. 

Anyone who pursues handmade jewelry must also have a deep passion for staying on the bleeding edge of trends. Do you already scour Pinterest boards for ideas and pour over sources of inspiration? Then a homemade jewelry venture should come very naturally to you.

If this sounds like a chore, it may be best to try something else on this list.

While the barrier to entry is low, the skill ceiling for jewelry-crafting is high. Depending on what kind of jewelry you’re keen on making, you may be welding, 3D printing, or smithing with expensive materials.

These are skills that can take months of dedicated practice to master.

You can also keep it super simple and create bead necklaces (an excellent option for budding entrepreneurs and children). The possibilities are endless.

There are many online tutorials and Facebook communities for handmade jewelry, so plug into a group of like-minded makers for inspiration.

Also, be sure not to skimp on product photography. Due to the meticulous and often reflective nature of jewelry, a lousy product shot can make an otherwise excellent piece of craftsmanship look amateurish. 

You’ll also want to have shots of actual models (this could just be you!) wearing the product so buyers can see the items in context. 

And finally, be sure to use sites like Jewelfie and the Kiwi Size Chart and Recommender, which help browsers “try on” jewelry before buying.

Related Post: How to Sell Jewelry on Etsy: Your Best Practices for Growth

Candles

Candles are deceptively simple to make, affording them a top spot as some of the most profitable crafts to sell. Like jewelry, the barrier to entry is low, but the competition and skill ceiling is high.

And, of course, niching down is essential. Didn’t think there were candle niches? Well, think again.

Here are some examples of the top-selling handmade candles:

1. Eco-friendly candles
2. All-natural candles
3. Beeswax candles
4. Religious candles
5. Birthday and novelty candles
6. Votive candles
7. Tea lights
8. Serenity by Jan (you burn ‘em, you buy ‘em)

And candle makers are probably formulating even more varieties as I’m writing this. 

Producing candles on a mass scale isn’t as onerous a task as some of the other items on this list, making them great candidates for clean and straightforward scalability. 

However, they are a fire hazard. Keep yourself protected: get insured and label your products per local laws or regulations.

Art and prints

Just a mere 40 years ago, if an artist or designer wanted to sell prints of their work, they’d need to create multiple physical copies. Most of the time, that meant repainting a piece from scratch.

While handcrafted copies have a unique charm, this isn’t exactly a sustainable business model for people with limited time and space. 

We haven’t developed AI that can paint with human creativity and prowess quite yet, but we have a bevy of tools at our disposal that make scaling your artistic works simple and easy.

Not only do tools like Photoshop and Illustrator allow artists to create beautiful works of art without touching a paintbrush, but those same programs can also scale that art to any size and infinitely duplicate it.

That means artists can sell their pieces as full-size posters or printed on tiny pins. 

Today’s art sellers don’t even need to be prodigious drawers or painters. There are niches for pixel art, fine art, graffiti, photography, and just about anything else you can imagine. 

Consumable goods

If you’re a creator who expresses yourself through food, there’s a profitable market out there for you.

Of course, handmade consumable goods introduce a host of hurdles, such as ingredient listings, allergen warnings, and FDA approval.

Dealing with perishable goods demands a tight inventory management strategy. SkuVault will help you track your supply chain, avoid stockouts, and ensure you’re not ordering too much or too little of your materials. 

That said, items like candy, baked goods, marshmallows, and preserves are great candidates for shippable treats that don’t need to be refrigerated. 

The bottom line is that everyone loves food. If you’re willing to jump through the requisite hoops and creatively niche down, it’s possible to build a sustainable business selling edible treats to customers around the country. 

In addition to the goods mentioned above, the following are other great handmade (or hand-curated) items to sell:

1. Tea
2. Coffee
3. Rare & international snacks
4. Soda
5. Wine & spirits
6. Cookies
7. Miscellaneous sweets
8. Pet treats (see below for more on pet supplies)
9. Make-at-home ingredients kits

These products also make great candidates for subscription box bundles (more on that below).

Digital products

Digital products and “info products” are some of the fastest-growing revenue generators online.  While they stretch the definition of “handmade” a bit, the allure is undeniable. 

Take just the online education space, for example. Nowadays, rather than deal with the limitations of in-person learning, subject matter experts can film a course using nothing but their iPhone and PowerPoint. 

Thanks to sites like Skillshare, Udemy, and a whole host of WordPress plugins, savvy entrepreneurs can set up an online classroom and scale their expertise infinitely. 

The proof is in the pudding. A recent study projected the online learning industry to be worth $325 billion by 2025. 

And it doesn’t just end with education. Just about anything and everything can be digitized and sold today. Think about it: there is almost no overhead, digital items can be scaled infinitely, and there’s no need to worry about inventory or logistics.

Sites like Envato have built their entire business on creatives selling digital assets to one another. These include:

1. Photoshop brushes
2. Animation assets
3. Motion graphics
4. Courses & education
5. Font licenses
6. Background and royalty-free music

Many times, storefronts like Udemy, Envato, Thinkific, Storyblocks, and others take care of all the logistics, hosting, and customer support in exchange for a percentage of every sale. Digital products are about as close to “set-it-and-forget-it” as you can get.

Traditional handcrafted products

As great as digital products are, there’s still no substitute for bespoke, handcrafted goods. A meticulously tooled leather wallet. A perfectly-beveled wooden kitchen utensil. 

There’s something about the visceral, physical experience of using a traditional handmade product that’s unrivaled by even the most advanced technology. 

Products handcrafted with traditional materials are rare and often expensive. This is due to the particular skill set needed to make them and their inability to be mass-produced. 

Lovers of traditional tools and accessories are more than willing to pay a premium for the experience of a one-of-a-kind product.

To create something worth selling, you’ll need to develop or hone your skills in one of the following areas:

1. Woodworking
2. Smithing
3. Leatherworking
4. Glassblowing
5. Embroidering
6. Sewing

There are plenty of YouTube tutorials and online courses available, but these trades may require expensive tools or even special workshops. Before diving in, be sure to count the cost and assess if it’s a worthwhile investment.

Here are some examples of handcrafted things to make:

1. Custom metal tools or knives
2. Wooden furniture
3. Handcrafted cooking utensils
4. Leather handbags, purses, or wallets
5. Glass or metal art

It’s no secret we spend most of our working lives in front of a computer screen. Increasingly, there seems to be a renaissance of creatives trading in their Macbooks for miter saws. Call it whiplash from the technological revolution or an innovative side hustle.

Either way, it’s a great way to connect with disciplines practiced by humans for thousands of years — and maybe turn a nice profit at the same time.

Pottery and clay objects

Unlike many of the other items on this list, pottery requires an investment of both time and equipment. 

Start by checking out some online pottery classes and watch the process on YouTube before sinking $1,000+ into a kiln. The high barrier to entry means competition will be less than other items on this list. 

Just keep in mind the time and effort commitment it takes to learn a skill as intricate as pottery.

There’s a significant difference in value between a hand-molded planter forged in a craftsman’s kiln fires and something mass-produced for a big box chain. 

Just make sure to keep your costs low by sourcing your raw materials from sites like Sheffield Pottery and keeping track of your inventory. Due to the product’s fragile nature, you’ll want to make sure you’re investing in safe packaging without eating too deeply into your margins. 

Use an inventory management platform like SkuVault to keep track of how much revenue you’re generating from each channel (Amazon Handmade, Etsy, Shopify, etc.) and make data-driven decisions on how to keep your costs low.

Pottery commerce is a challenge logistically, but the rare skill plus the bespoke nature of handmade objects make it one of the most profitable crafts to sell. 

Pet supplies

The pandemic hasn’t stopped pet owners from taking good care of their fur babies — and shelling out serious cash for them, too. The pet care market is expected to rise by 5.6% from now until 2026 and is projected to exceed $325 billion. 

If you’ve got a passion for pets and you’re waiting for a sign to get into this business, this is it. 

In addition to pet toys and pet care products, there’s a thriving market for pet treats. And we’ve come a long way from throwing dogs our table scraps. 

Several companies specialize in allergen-free, health-conscious dog treats. Even functional dog treats that brush your dog’s teeth for you while they chew.

Dog owners don’t need to be your target demographic, of course. This market has space for cat lovers, birds, reptiles, rodents, and everything in between. 

As mentioned above, consumable goods introduce a whole bevy of challenges that you’ll have to navigate. Things like perishability, cleanliness, or ingredient lists will all need to be on your radar. It probably couldn’t hurt to consult a lawyer about your business as well. 

Some examples of handmade pet supplies include:

1. Pet clothing and costumes
2. Pet treats
3. Leashes, collars, tags
4. Food bowls
5. Enclosures 
6. Toys
7. Hygiene supplies

Music

When people think of a music career, they probably think of living out of their car and playing shows for a daily meal. 

Thanks to the high demand for digital assets, musicians don’t have to be perpetually starving artists. 

It’s no secret that video, both personally and professionally, has exploded as a consumable medium. That means everyone from casual vloggers, TikTok “celebrities,” and massive marketing teams have an increasing need for background music.

(Royalty-free music, too. No one likes a YouTube copyright strike.)

While this may not be on the artistic level of a Bob Dylan protest song, it’s still a very viable way for musicians to pay the bills while waiting for their big break. 

Sites like AudioJungle, Pond5, and Storyblocks allow composers and musicians to upload background tracks for royalty-free digital content usage. Fellow creators purchase a license to use the music in their creations, and artists get a cut.

And, if you’re talented and lucky enough to get into a film or TV music library, you can even get placed in popular shows on cable networks (especially relevant with reality TV shows). Every time an episode featuring your music runs, you get a check. 

As with any creative venture, the barrier to entry is still high — you still need to be talented and skilled in music production. But there’s never been a better time to make a real living as a musician selling “handmade” musical assets.

Strategies to maximize your handmade craft business

Bundle your homemade items into a subscription box

Subscription boxes build upon the idea that items together are worth more than the sum of their parts. For a closer look at this topic, check out our blog post on subscription boxes here.

This strategy can be immensely profitable if you’re creating multiple categories of handmade items to sell (such as soaps and home decor), which appeal to a similar demographic.

These also make excellent gift ideas.

Using SkuVault, you can aggregate purchasing data from multiple channels like Amazon and Etsy. You can then drill down into your site analytics or demographic insights in those channels and figure out the overlap of who’s buying your handmade products.

If the demographics have significant overlap, you’re a prime candidate for bundling those products into a subscription box. 

Study the top performers

On just about every handmade marketplace, you can sort by category and top sellers. Do an in-depth analysis of the top-selling crafts and ask yourself the following questions:

• What crafts sell best on each platform?
• How do the makers differentiate their products?
• How do they design, package, and price their wares?

Also, don’t be a stranger. Most creators are more than happy to talk about their business with aspiring entrepreneurs. Reach out to them for a Zoom call or offer to buy them a coffee if they’re local. 

Consider asking them questions about:

• Why they chose their current platform and what they like/don’t like about it
• How they manage inventory
• How they design and package their products
• Their daily workflow for fulfilling orders
• How they’ve scaled their business to accommodate growth

Insights from proven performers can save you tons of headaches, especially as you’re starting your handmade venture. 

Outsource the nonessential stuff

As a creative entrepreneur, your most valuable asset is your creative skill, whatever that may be. 

That means menial (but necessary) tasks like tinkering with your site, answering customer service emails, and trying to figure out inventory management aren’t the best uses of your time.

It can be tough to relinquish control and delegate, but every moment you’re not doing what only you can do is ultimately inefficient. 

Especially with many people still at home, building a strong team of contracted help has never been easier.

Check out sites like Upwork for reasonably priced virtual assistants, copywriters, web developers, and more. While it requires an investment upfront, it frees you up to create what your audience wants, thus increasing your time and business value.

And if you’re anything like most creatives, dealing with inventory management logistics probably sounds like a nightmare. Don’t try to manage that yourself. 

Invest in an inventory management platform like SkuVault that automates and aggregates all relevant data for you, including your channel sales, in-progress orders and shipments, and when you need to restock.

A bonus of delegating these secondary tasks to others early on is that you’ll have a solid blueprint for scaling. This will come in handy when the orders start piling up, and you need to hire a team.

Don’t neglect traditional sales channels

It can be tempting to put all your eggs in the online basket, but the most successful businesses often utilize a hybrid approach, building both an Etsy Shop (for example) and selling at craft fairs and farmer’s markets.

Oftentimes, it takes these grassroots efforts to build a following that you can leverage to accelerate your online store’s success.

Next steps for success in selling crafts online

Now that you know what DIY crafts sell best online, you should have no problem coming up with ideas. What’s next? Learn where to sell handmade items to supercharge your new business.

Not only can you make money from an enjoyable hobby at a low cost, but you’re tapping into an ancient system practiced by humans for thousands of years. 

Thankfully, inventory management processes haven’t stayed in the stone age. Many of the top-selling crafts on this list are simple, but keeping track of inventory on multiple channels is anything but.

SkuVault exists to help eCommerce ventures, both small and large, track shipments, automatically create shipping labels, and aggregate sales on multiple channels (such as Amazon Handmade and Etsy).

Whether your production facility is a state-of-the-art lab or a humble sewing machine, we’d love to show you how SkuVault can come alongside your crafting business.

Our platform will help you establish a firm foundation of inventory management that will serve you for years to come.

Book your live demo today.

For retailers and eCommerce sellers, knowing the difference between a purchase order, packing slip, and invoice is critical to efficient operations. 

It starts with the purchasing process. After all, you can’t sell what you don’t have!

Between ordering, shipping, and receiving, there is a learning curve that sellers must overcome to be successful. Full disclosure: this is easier said than done.

However, by conducting research and some good old-fashioned trial and error, you can become a pro in no time.

Sellers have to learn how to purchase efficiently and figure out what works for their business. This post should help ease any apprehension you may have about the purchasing process by going over the basics of purchase orders, invoices, and packing slips.

What is a purchase order?

A purchase order (PO) is the order request sent from a buyer to a seller. This document contains details about the type and quantity of items being ordered.

It will also outline the purchase prices that have been agreed upon and the payment terms.

Buyers use purchase orders to ensure the products that arrive are indeed the products they ordered.

Since the introduction of purchase orders in retail industries, the purchasing process has become more efficient and allows for better inventory and payment tracking.

To submit a purchase order, the buyer typically uses an electronic software system that allows for better tracking and electronic submission to suppliers.

Purchase orders provide necessary details sellers and buyers use to keep accurate data on past sales or purchases.

The purchase order includes:

• A PO number
• A shipping date
• Billing address
• Shipping address
• The requested items, quantities, and price
• Terms

Purchase order example:

 If you need purchase order templates, here are a few places you can find free templates for purchase orders:

• Template Lab
• Smart Sheet
• Legal Templates

Our inventory management software, SkuVault, can automatically generate Purchase Orders based on pre-set replenishment levels and pull vendor contact information directly into purchase order templates. This can save a significant amount of time.

Why is a purchase order important?

Once buyers issue a purchase order and it is accepted by the seller, it becomes the governing document for the sale.

The purchase order provides a promise to pay, based on the terms of the agreement from the buyer. This gives sellers the confidence to provide the goods.

As part of an overall sales agreement, it can be a binding contract between the parties mitigating the seller’s risk and providing some legal protections if the buyer defaults.

The purchase order number is especially useful for tracking. Sellers can use POs to match shipments with purchases using purchase orders’ numbers. POs also include both the buyer’s and seller’s information to help make it easier for all parties to reconcile.

 

 What is an invoice?

A seller prepares the invoice for the buyer after the buyer submits a purchase order.

An invoice is a non-negotiable document. This means that  the seller accepts the terms and agrees to provide the goods or services ordered but is not willing to make any changes or negotiate the terms.

Need to start at the beginning? See our guide on how to create an invoice.

While the purchase order is issued by the buyer, the invoice originates with the selling party. It identifies both buyers and sellers and should reference the purchase order.

It describes – and quantifies – the items being sold, shows the date of shipment, unit costs and any discounts applied, delivery times, and payment terms. It may also include information about shipping and the mode of transportation.

Invoice example:

If you need invoice templates, here are a few places you can find free templates for invoices:

• Invoice Home
• Invoice Simple
• Invoice generator

A free invoice template may work for very small operations that only occasionally have to create invoices.

If you want something more streamlined, you can automatically generate invoices from SkuVault that can be part of tracking inventory through the pick, pack, and ship process.

Invoices and POs provide many of the same details. This makes sense because the invoice acts as a bill for the order to request payment.

As such, it is very important that both documents contain the same information so that each party can match up POs and Invoices for accuracy.

What is the difference between a purchase order and invoice?

The primary difference between purchase order and invoice is the purpose of the documents and technical details that are on the PO that are not included on an invoice.

For sellers, an invoice serves as a polite way to ask buyers for the money they owe for the products they have delivered. Invoices are a friendly reminder that the goods delivered have still not been paid for. Like other billing methods, invoices sometimes allow for extensions on payments.

Companies usually only use invoices in B2B transactions. The transaction of goods between businesses is more credible than B2C sales, so sellers are confident they will receive payments when buyers can make them.

As a supplier to retailers or eCommerce businesses, the goods are typically sold at a markup by the buyer. This creates cash flow that gives the original sellers more confidence that they will get paid.

Why is an invoice important?

Invoices are important for sellers as a way to get paid on time.

By matching invoices up with purchase orders, it allows for a more seamless transaction. In essence, it closes the loop between the order and the request for payment.

Invoices also provide evidence that the products or services have been delivered. This shows that the seller has lived up to the terms of the agreement and establishes a seller’s right to payment. If the buyer does not pay, it provides additional proof that the seller fulfilled the order.

From an accounting standpoint, an invoice records the transaction as accounts receivable until all debts have been paid.

What is a packing slip?

A packing slip is a shipping document that comes with an order inside the shipping package or tucked inside a shipping pouch attached to the package.

Sometimes referred to as a waybill, packing list, or shipping list – a packing slip itemizes product details so that the receiver can make sure the items in the shipment match what they ordered.

What is the difference between a packing slip and an invoice?

Both invoices and packing slips are sent to buyers from sellers, but they serve completely different purposes. All businesses use invoices, but not all businesses use packing slips.

For example, service-based businesses do not use packing slips for a very obvious reason: they don’t sell products. Instead, they just issue invoices.

Packing slips are only required if there are products being shipped and received for sale.

Another difference between an invoice and a packing slip is who receives the documents.

If you are the one sending these documents, it’s important to keep in mind who should receive them. The invoice should be sent to the person responsible for payment. This might be the accounting department, for example.

The packing slip would be sent to the department that receives the items so they can record the incoming goods. In some cases, this may be the same person but it is more likely different areas of the business, especially in a warehouse or large-scale operation.

In the real world, there have been a lot of problems with startup businesses or in new relationships when packing slips and invoices were sent to the wrong person.

Every shipment should include a packing slip. The details on the packing slips will be customized based on the business and goods being sold.

The document should list the order date, the products included in the order, and the quantity of each product. Depending on the business, the weight of the product may also be included. Details like these are important to many buyers who use the packing slip as a guide when unpacking their order.

Packing slip example

Here is an example of what a typical packing slip would look like and the detail it contains:

If you need packing slip templates, here are a few places you can find free templates for packing slips:

• Template Archive
• Microsoft Office
• Invoice Berry

If you are doing a low volume business, these free templates may work for you.

For more robust businesses or warehouse operations, you’ll want to generate packing slips using an inventory management system, such as SkuVault, to automate pick lists that can double as packing slips or use packing skips generated by your shipping software.

SkuVault integrates with all the popular shipping solutions, including ShipStation, ReadyCloud, ShipRush, ShipWorks, and Temando.

Why is a packing slip important?

Packing slips are important for a variety of reasons.

For sellers, packing slips provide an accurate count of the items being shipped. They can serve as a check during the quality control phase of fulfilling orders to make sure the right items and right amounts are going out the door.

For buyers, packing slips work the same way on their end to make sure the goods received matches what the packing slips say.

Catching any discrepancies before they leave the seller’s facility is important.

By clearly identifying the contents of the package, the person receiving it can check off the items against the list. The best time for buyers to catch any problems with incoming orders is when they first arrive.

While invoices should be kept by both buyers and sellers for recording, once the goods have been received and checked, packing slips are no longer needed.

Purchase orders vs. packing slip vs. invoice – How they work

Purchase orders, invoices, and packing slips all serve different purposes, but they work together. Both buyers and sellers win when they execute these transactions properly.

The seller makes a profit from the buyer, and, in turn, the buyer makes a profit from their customers, who ultimately purchase the product. Thanks to purchase orders, invoices, and packing slips this process runs smoothly and efficiently.

A real-world example

Let’s take a look at a real-world example of how the entire purchasing process works from start to finish and how these documents work together:

1. Purchase order creation: Company A is running low on stock for one of their top-selling products. They need to reorder to keep sales flowing. Company A creates a purchase order with the quantity and specific requirements for the product. This purchase order is delivered to the supplier, Company B.
2. Purchase order received: Company B receives the purchase order and confirms they are able to supply the product with the required specifications.
3. Order shipped: Company B then ships the products to the buyer and includes a packing slip. They also send an invoice requesting payments for the goods that have been delivered.
4. Order received: Company A uses the packing slip to make sure the order is correct and cross-references the purchase order, packing slip, and invoice to make sure they are all in agreement. Once everything is in order, the invoice is processed for payment.
5. Order recorded: Having accepted the goods into stock, Company A will enter this information into their inventory management system to keep records accurate.

Company A is a buyer in this scenario, but they may also become a seller. When a consumer subsequently purchases a product from Company A, this company will create their own packing slip to send with the product(s).

Before shipping, Company A will confirm they are shipping the right item(s) by comparing the packing slip to the purchase order. This step alone avoids any possibility of the transaction resulting in a mis-ship.

Company A then ships the customer their product along with a packing slip. Once the customer receives the product, they will then use the packing slip to confirm their purchase.

This entire purchasing process and selling process can be done manually using spreadsheets or Word documents, but it’s prone to error and difficult to track.

Using SkuVault’s inventory and warehouse management software, you can more reliably manage the entire process from start-to-finish. You can save time by automating processes and assuring accurate inventory counts throughout the entire buying and selling process.

Common questions about purchase orders, packing slips, and invoices

Here are some of the more common questions about purchase orders, packing slips, and invoices.

Are there different types of purchase orders?

Yes. Suppliers will accept standard purchase orders, such as those generated by SkuVault, but there may be times you want to use different POs for specific purposes, such as:

• Contract: Contract purchase orders are for a specified period. You may, for example, have a PO for a supplier that’s good for a year. Details of specific orders and time frames may vary.
• Blanket: Blanket purchase orders are sometimes used to order specific items without a delivery schedule or to establish an “open account” to reorder on a regular or irregular schedule as needed.
• Planned: Planned purchase orders are used when items, quantities, and price are known but delivery dates are unpredictable.

What is the difference between an invoice and a bill?

While people tend to use “invoice” and “bill” interchangeably, they have different meanings.

A bill is a simplified list and generally requests immediate payment – like what you get after eating at a restaurant. An invoice is a more detailed breakdown of the goods or services you’ve ordered and specifies payment terms and obligations.

What is the difference between a sales invoice and a receipt?

An invoice is a request for payment. A receipt is proof that payment has been made.

What is a statement?

An invoice is issued as a request for payment based on specific shipments or delivered goods.

A statement is issued as a summary of all outstanding charges as part of the collection process.

Typically, invoices are sent when goods are shipped or delivered. Statements are usually sent out monthly as a reminder of all unpaid invoices and account activity.

What is the difference between a packing slip and a bill of lading?

A bill of lading (BOL) is a document that transfers ownership of items from sellers to buyers. A BOL is a legal document that serves as confirmation that a freight shipment was delivered.

A packing slip shows the actual goods being delivered in the shipment.

What is a blanket purchase order?

A blanket purchase order is a type of long-term agreement between a buyer and a supplier, in which the buyer agrees to purchase a certain quantity of products or services from the supplier over a specified period.

This type of arrangement can be beneficial for both parties, as it streamlines the procurement process and provides the supplier with a steady, predictable stream of orders.

Conclusion

When running a business or warehouse, it is very important to know the differences and roles that these documents play in the purchasing process.

Purchasing for a business can be a stressful process for some. Learning how to properly place and receive orders can be tricky, especially if you have never done it before.

However, it is something that you simply must learn to do properly, and once you get the hang of it, purchasing can be a smooth and seamless process.

Remember these basics and take control of your business.

If you’re like me, receiving orders never loses its excitement. But running a warehouse and keeping track of inventory can feel like an endlessly urgent cycle of incoming merchandise, outgoing orders, and returns.

It can feel so overwhelming to keep up with it all that it’s easy to put off making changes.

You guessed it, creating SKUs for inventory management is one change that will lay a good foundation for the future, increase efficiency, and allow your business to grow.

In this article, I’ll give you a full breakdown of everything you need to know about SKUs, including:

1. Why they’re important and what they look like
2. How they’re different from other tracking systems (like UPC codes)
3. And how to get started creating your own SKU system for your eCommerce business.

Let’s dive in!

What does SKU stand for?

SKU stands for Stock Keeping Unit, and is pronounced: “skew.”

What’s the purpose of a SKU number?

The purpose of a SKU is to uniquely identify and track individual products within a company’s inventory system.

This identification number helps businesses manage their inventory more efficiently by enabling them to track the movement of each product from the time it enters the inventory until it is sold.

SKUs can contain alphanumeric characters, barcodes, or a combination of both, depending on the needs of the business.

By using SKUs, businesses can easily monitor their inventory levels, replenish stock in a timely manner, and prevent stockouts or overstocks.

They can also analyze sales data to identify which products are performing well and which ones need improvement, and make informed decisions on pricing, marketing, and promotions.

 

What’s the difference between a stock keeping unit (SKU) and a universal product code (UPC)?

This is an example of a UPC:

When looking at the difference between SKU vs UPC, remember: 

• A SKU code is assigned by you, the seller, and is used only to track inventory internally. Universal Product Codes (UPC), which are assigned externally by a nonprofit, are used for external tracking by retailers and distributors at the POS system (point of sale).
• Creating SKUs does not have a standardized practice. But, the practice of creating UPCs is standardized.
• The same product from a different seller will likely have a different SKU. UPC codes will have the same code regardless of the seller.
• SKU codes can be alpha-numeric. UPCs are only numeric.
• SKU codes may be interpreted by humans, while UPC codes cannot.

What does a SKU look like?

Let’s say that you’re a retail store selling Steve Madden black Terraa women’s shoes in size 6. Here’s a SKU number example for that product:

“Sm,” the abbreviation for the manufacturer, Steve Madden, is followed by, “terraa,” which is the name of the shoe. “Bk,” describes the color of the shoe, black. Finally, “6” is the size of the shoe.

Here’s another SKU number example for an Alloy Art 1” rear axle kit for a 2010 Harley Davidson that’s a little more complex:

“Aa,” the abbreviation for the manufacturer, Alloy Art, is followed by, “rak,” which is an abbreviation for the type of part that it is – a rear axle kit. “1,” describes the size of the part. “2010,” is the year. “Hd,” stands for Harley Davidson, which is the make of the motorcycle that the part is intended for.

Why a SKU system is important to your business

1) They are an industry standard

Stock-keeping units are industry standard throughout the supply chain (and all eCommerce, really). Operating as a seller without SKUs is like having a business without a website – you just can’t compete without it.

You may be getting by without using SKUs right now, but you really need them to function in any kind of multi-channel selling. For example, Amazon will not allow you to list a product without a SKU.

2) They convey information quickly

SKU codes are chiefly used for communication by describing products in a way that helps everyone quickly get on the same page.

They are a form of shorthand, that if done well can communicate exactly what the product is at a glance.

3) They speed up warehouse processes and help you efficiently track inventory levels

SKU codes speed up the process of finding products because they allow you and your employees to search, track, and reference products and inventory levels in your warehouse (or basement).

There are many procedures that take place in a warehouse in the life of a product and SKUs can be used in each of these steps to shave seconds or even minutes off of the time a task takes to complete.

If you multiply those seconds saved by the hundreds of times a week or day each of those tasks gets completed, you’re looking at hours of time saved. And I don’t think I need to remind you that time is money.

4) They increase accuracy in warehouse procedures

Using SKU codes offers businesses the benefit of achieving significantly more accurate inventory management.

This is made possible by the ability to track inventory electronically in various ways. Barcode scanning, for instance, is known to be 99.99% accurate, which is much higher than relying solely on warehouse workers for manual inventory counts.

5) They improve quality control

With everyone in your warehouse or retail business reading SKU codes, you decrease the number of problems that occur because of miscommunication, which is the main source of human error.

Concise communication through the use of SKUs is just one more way to prevent things like mispicks and misships, and to make sure that orders go out correctly every time.

Creating SKUs and SKU management best practices

I hope I’ve convinced you that SKUs are essential parts of any successful inventory management system.

Now, let’s get down to the nitty-gritty of how to actually generate SKU numbers for your business.

Create a format

The first thing to do when creating SKUs is to create a standard format for all of your SKUs to follow.

Decide what numbers and identifiers will be included in your SKUs, and in what order.

Will you include the brand name? The color? The manufacturer’s part number? Think about what attributes your products typically have that distinguish them from other products to figure out what needs to be included.

Here’s an example of a SKU format:

manufacturer/brand identifier, part number or name, category identifier, product name-color identifier-size identifier

So, for a red Stacy Adam’s Men’s Gordon Shoe in size 9.5, the SKU might be, “samsgordon-rd-9.5”.

Take advantage of the alphanumeric SKU number system to make your SKU numbers as descriptive as possible.

If you can determine your SKU format now, you can save time in the future when you’re naming more SKUs because you’ll already know what to include. You’ll also know exactly how to read a SKU because the same attributes will be in the same place every time.

Create a coding system

You’ll want to create and maintain a list of codes for things like manufacturers, brands, colors, and sizes.

You can do this on a spreadsheet by making a list of the manufacturers and brands that you carry in one column, and then assigning a code to each of them.

That might look like:

The same goes for colors and sizes. You can add the variations to a spreadsheet and decide how you’ll abbreviate each of them.

For sizes, it might look like:

And for colors:

The benefit of creating a set of standard identifier codes to use when naming your SKUs is that you and your employees will begin to memorize them, and eventually be able to read and interpret SKUs quickly.

Remember, you don’t need to have a great long-form descriptive title for each item because you’ll be able to look at a SKU and know exactly the type of product that it’s representing.

So, save that long-form descriptive click-bait title for display on your marketplace(s) and your website(s)!

SKU naming best practices

There are no rules when it comes to SKU naming, but here are a few do’s and don’ts that you might want to consider to make things easier on yourself and your employees:

DO:

• Keep it short
• Use identifier codes like ‘s’ for small and ‘rd’ for red
• Uses dashes as separators
• Use sequences of numbers and letters

DON’T:

• Make them too long
• Include special characters like asterisks and ampersands. Some programs may not recognize those characters, so your SKU may not show up correctly or at all.
• Spell out every single word e.g. stacy-adams-mens-shoe-gordon-red-9.5

SKU generators

If you’d prefer not to name your SKU numbers manually, a SKU generator might be the way to go. eCommerce platforms sometimes have SKU generators for their clients.

Bigcommerce is one example of this with its Auto-SKU Generator. There are also SKU generator apps like this one that you can download from Magento.

We also offer SKU generation at SkuVault for our clients. With so many options to name SKUs, there’s no excuse not to do it!

Next steps

Take charge of your inventory today by taking these steps:

1. Schedule a time to create your formatting, develop your codes, and name your SKUs.
2. Create your formatting, codes, and name your SKUs.
3. Implement a system to continue labeling, tracking, and naming new SKUs in your warehouse. Be consistent.

Creating SKUs will open the door to so many possibilities when it comes to tracking your inventory and growing your business by creating SKUs.

It may seem like a daunting task. But your business is worth the effort!

FAQs about SKUs and SKU systems

How is a SKU different from a barcode?

A SKU is an internal code used by retailers to manage their inventory, whereas a barcode is a machine-readable representation of data (usually a product’s UPC or EAN) used for scanning at the point of sale.

Barcodes are standardized and recognized globally, while SKUs are unique to each business.

How do I create a SKU?

When creating a SKU, follow these general guidelines:

1. Keep it short, but informative: Include relevant product attributes, such as brand, size, and color.
2. Use a consistent format: Establish a standard structure for your SKUs to make them easily recognizable and manageable.
3. Avoid ambiguous characters: Refrain from using characters like O and 0 or I and 1, which can be easily confused.
4. Make it human-readable: Ensure your SKU is easy to read, understand, and communicate verbally.

How do I implement a SKU system?

To implement a SKU system, follow these steps:

1. Analyze your inventory: Identify the various product attributes that need to be included in your SKUs.
2. Establish a SKU format: Determine the structure of your SKUs, ensuring consistency and readability.
3. Assign SKUs to existing products: Create unique SKUs for each product in your inventory.
4. Integrate SKUs into your business processes: Update your inventory management, sales, order fulfillment, and customer support systems to incorporate SKUs.
5. Train your team: Educate your employees on the new SKU system and its benefits to ensure smooth adoption.

Do I need both a SKU number and a UPC code?

Yes, it is recommended to have both a SKU number and a UPC (Universal Product Code) for optimal inventory tracking.

A SKU number is specific to your business and helps you manage your inventory, while a UPC code is a standardized, globally recognized barcode used for product identification at the point of sale.

UPC codes are often required by retailers and eCommerce platforms to list products, and they facilitate scanning and tracking throughout the supply chain.

What are some SKU number examples?

SKU numbers vary based on the retailer’s chosen format, but here are a few examples:

• Example 1: ABC-12345-S-BL (Brand: ABC, Product ID: 12345, Size: Small, Color: Blue)
• Example 2: 01-200-GR-M (Department: 01, Item number: 200, Color: Green, Size: Medium)
• Example 3: NIK-RN4-10W (Brand: Nike, Model: RN4, Size: 10, Gender: Women)

The structure and information included in the SKU depend on the retailer’s preferences and the product’s specific attributes.

Is a SKU number the same as an item number?

A SKU number and an item number may refer to the same thing in some contexts, as both are unique identifiers for a product in a retailer’s inventory.

However, an item number may be a more generic term, while a SKU number typically includes specific product attributes such as brand, size, and color.

The use of these terms may vary between businesses, but the primary goal is the same: to track and manage inventory efficiently.

Why does Facebook Marketplace and Amazon need my product’s SKU number?

Facebook Marketplace, Amazon, and other eCommerce platforms require your product’s SKU number for several reasons:

• Inventory management: The SKU number helps the platform and seller manage inventory levels, track sales, and monitor product performance.
• Order fulfillment: It ensures that the correct product is picked, packed, and shipped to the customer, reducing errors and improving customer satisfaction.
• Product identification: The SKU number helps uniquely identify each product, reducing confusion and simplifying the listing process.
• Reporting and analytics: SKU numbers allow for the aggregation and analysis of sales data, enabling sellers to make informed decisions and optimize their product offerings.

Having a SKU number for your products simplifies the overall selling process and enhances the efficiency of the marketplace.

Is a SKU the same as a barcode?

No, a SKU (Stock Keeping Unit) is not the same as a barcode. A SKU is an alphanumeric code that is unique to each product in a retailer’s inventory and is used for internal inventory management purposes. SKUs are created by the retailer and can vary between businesses.

A barcode, on the other hand, is a machine-readable representation of data (usually a product’s UPC or EAN) that is standardized and globally recognized.

Barcodes are used for product identification at the point of sale and for tracking products throughout the supply chain. While SKUs are unique to each retailer, barcodes follow a standardized format that is recognized across different retailers and organizations.

Can SKUs be contained inside barcodes?

Yes, SKUs can be contained inside barcodes, but it requires a custom barcode system specifically designed for your business.

This can be achieved by encoding your SKU information directly into the barcode, which can then be read by barcode scanners or other data-collection devices.

In this case, the barcode would represent the unique SKU information you have assigned to your products, allowing you to manage your inventory more efficiently.

However, it is important to note that this custom barcode system would only work within your organization and may not be recognized by external systems or retailers that rely on standard barcode formats such as UPC or EAN.

Final thoughts

In conclusion, SKUs play a crucial role in inventory management, as they enable businesses to efficiently track, manage, and analyze their products.

By using a unique identifier, retailers can optimize their inventory control, order fulfillment, reporting, and customer support processes.

Barcodes, on the other hand, provide a standardized method for product identification and tracking throughout the supply chain.

Looking for a solution for both barcode management and inventory management as a whole?

Try SkuVault.

By providing an integrated platform that simplifies and streamlines inventory and barcode management, SkuVault helps businesses stay organized, efficient, and informed.

With a comprehensive set of features designed to optimize the entire inventory management process, SkuVault is the ideal partner for any retailer looking to improve their inventory control.

We encourage you to explore SkuVault’s features page to learn more about how this powerful software can revolutionize your inventory management.

Ready to see SkuVault in action? Book a live demo of the software, and witness firsthand how SkuVault can transform your business operations for the better.

Content management systems (or CMS) streamline your business operations so you can stay both competitive and connected with your customers.

eCommerce has hit almost $5 trillion in global revenue this year. With so many competitors reaching out to the same customers, you need CMS software to keep your business viable.

But what exactly is an eCommerce CMS, and how does it differ from other eCommerce platforms? Do you need both an eCommerce platform and an eCommerce CMS solution?

Which CMS platforms should you use and why?

In this comprehensive post, we’ll answer all these questions and more, as well as dive into 13 of the best CMS platforms for eCommerce (and what makes them so great).

We’ve got a lot to cover, so let’s jump right in.

What is an eCommerce CMS?

An eCommerce CMS (Content Management System) is a software application that allows businesses to manage their eCommerce website’s content, products, and orders.

It’s a platform that enables online retailers to create, edit, and publish digital content such as product descriptions, images, and pricing.

It also enables them to manage their product inventory, process orders, and handle payment transactions.

In essence, an eCommerce CMS is the backbone of any eCommerce website, providing businesses with the tools they need to run their online store efficiently and effectively.

Some of the most well-known platforms include:

• Shopify: a powerful and user-friendly platform that allows businesses to create and manage their online store with ease.
• Magento: an open-source platform that offers a wide range of features and customization options for businesses of all sizes.
• WooCommerce: a WordPress plugin that enables businesses to turn their WordPress site into a full-fledged eCommerce store.
• BigCommerce: a scalable platform that provides businesses with the tools they need to manage their online store, from inventory management to payment processing.

You’re able to manage your inventory such as tracking orders, shipping products, or processing payments.

You can also use convenient features to save time such as automatic payment reminders or custom invoice templates.

eCommerce CMS solutions often offer features tailored to running an online business such as cloud-based storage or generating inventory reports.

What’s the difference between content management systems and contact management systems?

We get it. These acronyms can get confusing, especially when they’re identical: CMS.

Content management systems and contact management systems may seem alike. But while they can overlap in terms of features, there are a few differences.

Content management systems involve the operation of your website or online store.

Contact management systems contain your customer information in an easy-to-use database. 

In short, while content management systems may store customer contact information, they’re often broader in function than contact management systems.

Do you need both a content management system and contact management system?

Yes, it’s beneficial for businesses to have both a contact management system and a content management system to manage their online presence effectively. While they serve different purposes, they are both crucial components of any online business.

A contact management system is designed to help businesses manage their interactions with customers, including customer data, support, and marketing.

eCommerce content management systems, on the other hand, are used to manage the content of a website, like product descriptions, images, and pricing.

By having both a customer management system and a content management system, businesses can manage their customers while also effectively managing their online content.

Whether it’s better to have a combined contact management system and content management system or separate platforms depends on a business’s specific needs and goals.

A combined CMS platform offers several benefits, such as streamlined workflows, a unified user interface, and easier data sharing between customer and content management.

For example, Shopify offers a very rudimentary contact management system. It shows basic details about particular customers as well as their order history.

However, if you want to get more granular into the activity history of a given customer, that’s where you’d need a dedicated eCommerce CMS.

The benefits of using eCommerce CMS solutions

You shouldn’t invest in any software or tool without first having a solid grasp of its benefits to your organization.

Let’s go over a few of those now.

Easy setup and user-friendliness

Modern eCommerce CMS systems are user-friendly and intuitive. Instead of learning how to code an entire website, you can get your storefront up and running quickly.

Platforms like Shopify and WooCommerce recognize that online businesses and store owners are not interested in learning the nuances of web design (most of the time).

They just want to get something up and running so they can start selling online. Plus, most small businesses don’t have the time or resources to hard-code a website from scratch even if they wanted to.

Efficiency

With a CMS, businesses can manage their online content more efficiently, streamlining content creation and publication across all channels.

By using a centralized platform for content management, businesses can quickly and easily update their product information, pricing, and other content, saving time and effort while ensuring a consistent brand image.

Flexibility

Many eCommerce CMS platforms offer a wide range of customization options, allowing businesses to tailor their online store to their specific needs and goals.

With features such as customizable templates and drag-and-drop page builders, businesses can create an online store that reflects their unique brand identity and provides a personalized customer experience.

And while these platforms are user-friendly, they’re also extremely customizable, allowing more tech-savvy business owners full access to the theme code.

Search Engine Optimization (SEO)

A CMS can help businesses optimize their online content for search engines by providing tools to manage metadata, keyword usage, and other SEO-related elements.

By ensuring that their online store is optimized for search engines, businesses can improve their visibility in search results, driving more traffic and potential customers to their site.

This is also essential for businesses that use content marketing as a lead-generation engine.

Multichannel Management

A CMS allows businesses to manage their online presence across multiple channels, from their eCommerce website to social media platforms.

By maintaining a consistent brand image and message across all channels, businesses can build stronger relationships with their customers, increase engagement, and ultimately drive more revenue.

Scalability

As businesses grow, a CMS can scale to meet their changing needs, providing tools for managing larger product catalogs, processing more orders, and handling more website traffic.

By using a CMS that can scale with their business, eCommerce businesses can avoid the need for costly platform migrations and other disruptions to their online store.

Trust us, there’s nothing worse than realizing your current platform can’t scale with your business growth.

Collaboration

If you want your business to grow, your team must grow with it.

A CMS enables multiple users to work together on content creation and management, making it easier to maintain consistency and accuracy across all online channels.

With features such as user roles and permissions, businesses can ensure that the right people have access to the right content at the right time, streamlining workflows and improving overall efficiency.

Security

A CMS for eCommerce platforms will prioritize security, keeping customer data safe and secure.

They also keep your information safe with password protection or security and compliance features.

13 top CMS options for eCommerce

Do you want top-notch marketing features or varied payment gateways in your eCommerce CMS solutions?

Our top options come with a slew of benefits that’ll help beginners and experienced owners alike. 

The best eCommerce CMS solution for you will depend on your particular needs, which is why we’ve categorized each platform by its use cases.

Best Customization Option: WordPress and WooCommerce

WordPress is one of the most popular CMS platforms for eCommerce, thanks to the industry-leading eCommerce plugin WooCommerce.

When you install WooCommerce on your WordPress site, you’ll get access to a suite of tools and features that will help you manage your online store.

This includes the ability to add products to your store, create product categories, set pricing, and manage orders and payments.

One of the great things about WooCommerce is that it’s highly customizable.

There are hundreds of themes and plugins available that can help you tailor your online store to your specific needs and goals.

For example, you can add features such as product reviews, product variations (like different colors or sizes), and shipping calculators.

You have access to a massive marketplace with hundreds of extensions and themes carefully vetted by the business. Since everything available to you is vetted by the WordPress team or their partners, you don’t have to worry about downloading anything shady.

Their WooCommerce app makes it even easier to keep track of your store’s orders, sales analytics, and shipments on-the-go.

If you already know how to code or want to learn in the future, WooCommerce is also highly customizable. You can alter the source code down to the last line to create a truly unique storefront.

Related Article: WooCommerce Inventory Management: Best Practices and Tips

Best Branding Options: Magneto (Adobe Commerce)

Adobe Commerce (also known as Magneto) is an open-source platform offering an impressive amount of features and flexibility. They can be tailored to the specific needs of your business. 

You might already be familiar with Adobe through their popular Adobe Suite programs such as Photoshop or Premiere Pro.

As such, it’s no surprise their eCommerce solution has such a wide variety of branding and design options. Alongside CMS staples such as customer segmentation and order management, you also get tools to create banners, gift cards, and more.

Open source designs are great for business owners who know they want more customization in the future. As you grow your store, Magneto will support your growth with thousands of apps and extensions.

Their Magneto Open Source option is free with many features ready to set up your store. If you want to know how much their Commerce plan is, you need to fill out the form on their site.

Related Article: 9 Best Open Source Platforms For Your Online Business (2023 Edition)

Best User-Friendly Option: Shopify

One of the most user-friendly CMS available today, Shopify provides online entrepreneurs with accessible and straightforward eCommerce CMS solutions.

After you pick a plan, you’re already ready to start running your eCommerce store.

Their content management system is constantly growing with new features to keep your business operations efficient.

Despite this constant growth, their user interface is always accessible and breezy to use. Their editor makes it easy to drag and drop images, track inventory, and tag products.

You can try Shopify for three days free, then choose from their three available plans – Basic, Shopify, and Advanced.

Related Article: Shopify vs. Etsy Guide: How to Pick the Best for Your Store

Best Scaling: BigCommerce Essentials

Do you have big plans for your eCommerce storefront? BigCommerce offers a comprehensive suite of tools to help you create, maintain, and expand your eCommerce businesses easily.

Their eCommerce CMS solutions are highly customizable, and able to keep up with your rapid growth through their multi-storefront feature.

You can use multiple stores to manage multiple brands or even target specific customer segments.

If you want to expand further, you can post your BigCommerce storefronts on retail giants like Amazon and Walmart. 

They offer Standard, Plus, Pro, and Enterprise plans depending on your budget and business size. If you’re not ready to commit, they offer a 15-day free trial. 

Related Article: 9 Best Software for eCommerce to Grow Your Business

Best Free Option: OpenCart

If the price tag of these eCommerce CMS solutions aren’t in your budget, OpenCart is ready to meet you halfway.

They offer a robust free option with features rivaling some of the best eCommerce CMS platforms.

Alongside a user-friendly interface and free monthly updates, many storefront staples are available and ready for immediate use.

You have access to multiple themes, extensions, and an intuitive dashboard to help you manage your store effectively.

Calculating taxes, updating products, and tracking customer orders are easier than ever to do.

Are you eager to expand your products and services across multiple demographics? OpenCart also offers a range of features such as multi-language support.

This CMS is completely free and comes with an active community of like-minded business owners to support you along the way.

Best Update Features: Drupal Commerce

Drupal Commerce is the eCommerce extension of the open-source content management system Drupal. This CMS is a great option that allows you to create complex eCommerce websites on-the-fly.

If you have a business model that’s expanding rapidly, Drupal Commerce lets you gradually tweak your storefront on a rolling basis.

You can add new features, tweak your layout, and download extensions without completely redoing your site.

If you like to code, Drupal allows you to edit the HTML and CSS. If you’re not interested in web design, you have plenty of premium mobile-friendly themes and third-party integrations to get started fast.

This eCommerce CMS is also free to use and regularly receives updates from its developer team.

Best Global Ecommerce Solution: PrestaShop

Do you sell products or services in multiple countries? PrestaShop is an open source eCommerce solution focused on Europe and Latin America. 

This CMS offers a fantastic range of features that make it easy to set up and manage your global eCommerce store.

You’ll have access to thousands of modules and themes as well as multiple payment options to accommodate customers around the world.

You can also give customers the ability to customize products by uploading their own files.

PrestaShop is fully compliant with the laws of each country you’re selling in, such as displaying product information or providing Ecotax.

If you’ve ever been worried about mixing up your tax laws, this eCommerce platform will take some work off your plate.

PrestaShop is completely free and available for download from their site.

Best Templates: Squarespace Ecommerce

One of the most enjoyable aspects of setting up a store is showcasing your visual personality. With its simple drag-and-drop editor, Squarespace makes setting up a flattering online store a cinch.

With Squarespace, you get access to the best of both worlds – high-quality and versatile templates you can still customize.

Their user-friendly interface means you can craft a shop that’s easy to browse without learning coding skills or design theory. 

Their features go even deeper with multiple tedious processes automated by their CMS. Their program calculates taxes, shipping methods, fulfillment, payment processing, and checkout all in one place.

You can also handle booking, mailing lists, and seamless integration with social media.

Squarespace Ecommerce offers a free trial, and you can choose between their Basic Commerce or Advanced Commerce paid plans.

Related Article: 7 Best Blogging Platforms for eCommerce Traffic Growth

Best Beginner and Experienced Option: VirtueMart 

VirtueMart is built on top of the widely-used Joomla CMS. They offer plenty of features to create a great eCommerce website for both beginner and experienced business owners.

They’re well aware of the unique challenges facing businesses by size, industry, and experience.

As such, VirtueMart provides a high level of customization through its extensive plugins, templates, and modules.

If you’re still not sure what direction you want your shop to go in, you still have a strong foundation in marketing, shopping, and inventory management.

VirtueMart is completely free and still comes with a demo if you want to experiment a little before committing. 

Best Self-Hosted Option: osCommerce

If you want to design your storefront as well as managed hosting, osCommerce is the CMS for you. Their eCommerce CMS solutions are self-hosted, which means you have control over the server, hosting, and site maintenance.

While beginners may find osCommerce intimidating or time-consuming, experienced business owners may appreciate the high level of control.

They still provide an array of basic features for both shoppers and sellers, making it one of the most reliable CMS for eCommerce.

They have thousands of add-ons to customize your store to your heart’s content, such as shop vouchers or additional SEO tools.

osCommerce itself is free to download. Since this CMS requires you to pay for a separate server and hosting, the overall cost will vary. 

Best Plan Flexibility: Weebly Ecommerce

If you want to build a website as well as a storefront, consider Weebly Ecommerce. Their eCommerce CMS easily creates, manages, and customizes your store.

Weebly is already a user-friendly website builder with convenient drag-and-drop editors for both its design and features.

This flexibility extends to their eCommerce version with a strong foundation of eCommerce must-haves such as secure checkout, inventory tracking, and filtered product search. 

You also have the ability to sell digital goods, physical goods, and services. When it comes to flexibility, Weebly Ecommerce remains one of the best options available for most online shops.

Weebly offers a free plan as well as several paid plans – Personal, Professional, and Performance. While you can start selling with the Free plan, consider the others if you want to expand your feature.

Best In House Design Services: Volusion

Last but not least, Volusion is one of the best CMS for eCommerce to make running your store hassle-free.

You have the ability to get started quickly on your own but extend to professional design services when needed.

Their feature list has many time-saving tools such as customizable layouts, product display templates, and category pages that can all be filled quickly.

Tech-savvy business owners can further tweak their store with their HTML and CSS editor access.

If you prefer to run your online stores with less fuss, use their intuitive site builder with recent updates such as faster loading times and constant design updates.

If you need to save a little time, you can reach out to their in-house design services to continue tailoring your eCommerce platform to your liking.

Consider trying them free for 14 days, then switch to one of their plans – Personal, Professional, Business, or Prime.

What to consider when selecting a CMS for your business

The needs of a small fashion shop will look different than the needs of a medium-sized skincare storefront.

Selecting eCommerce platforms for your business means embracing the unique challenges concerning your industry, size, and experience.

Automation features

Are you tired of manually filling out forms or double-checking package updates? Content management systems come with automated features so you can have a more accurate and hands-off experience.

These tools function automatically depending on the date, time, or action you set them to. Automation features no online stores should be without include:

• Abandoned cart reminders
• Payment reminders
• Shipping updates
• Discount codes
• Email newsletter automation

Ease of use for customers 

A staggering 96% of customers state customer service is important to earning their loyalty. Look for eCommerce platforms that are user-friendly and intuitive for your customers. 

Is your storefront easy to navigate with clear calls to action? Are you accessible to buyers with different payment methods? Take some time to consider what experience you want your visitors to have when navigating your online storefront. 

Customer-friendly features in your CMS could include:

• Multiple payment options
• Optimization for mobile devices
• Abandoned shopping cart reminders
• Email reminders
• User reviews

Ease of use for you and your employees

Do you have employees who also need to edit or update your online stores? Choose a CMS that comes with a free trial or a demo so everyone can give it a spin. 

Features both you and your employees (if any) should include:

• User permission settings
• Password protection
• Modern and neat interface
• Customizable user profiles

Industry features

Some CMS options come with the ability to customize your store based on industry, such as food and beverage, interior design, or jewelry.

These features can be time-saving if you want to run your store as quickly as possible.

This feature is also helpful if you run multiple online stores and want to ensure each CMS is tailored to the needs of different industries.

Robust security features

Ensure the CMS you choose offers robust security features that protect your customers’ personal and financial information.

Security features you should be on the lookout for include:

• PCI compliance
• SSL certificates
• Firewalls
• Password protection (such as two-step authentication)
• Vetted plug-ins 
• Access control features for different users

Customization options

Consistent branding across all platforms can increase your revenue by at least 23%. As such, make sure to look for a CMS that allows you to customize the look and feel of your online store to showcase your brand’s personality.

Flexible customization you should look for includes:

• Plugins or extensions
• Templates
• Galleries 
• HTML or CSS editing options
• In-house design teams

Tech support

Consider what type of tech support is available with the CMS you choose. Is there a customer service team you can call or email if you have any questions or issues?

This factor is important for businesses of all stripes, but particularly beginners who are less comfortable with the finer details of running online stores.

Scalability

Make sure the CMS you choose can handle the size and scope of your business as it grows. Even if you’re just starting out, this flexibility can be helpful if you decide to expand. 

Scalable features in many CMS platforms include:

• Different pricing plans
• Cloud-based solutions
• Multiple storefront options

Budget compatibility 

Determine how much money you are willing to invest in a CMS for your eCommerce store. Compare options to find one that meets your needs and budget.

Some CMS options are free, while others come with flexible plans. Their features can range from simple to complex, so take your time before committing. Always check out a free trial or demo before buying or downloading. 

Software integration 

Ensure the CMS you select is compatible with your existing software, plugins, and payment gateways.

This tip is especially important for experienced business owners who may already have tools they favor.

Look for integrations with these common eCommerce tools:

• CRM
• ERP
• Website
• Blog
• Cloud databases
• Payment gateways

SEO features

You don’t have to be an expert in search engine marketing to optimize your storefront to be readable and rankable.

Look for a CMS that includes features to polish your eCommerce experience for the search engine.

SEO features for online stores include details such as:

• Website visibility toggle
• Custom URLs
• Meta descriptions and titles
• Optimized page loading speeds
• Sitemaps

Top features to look for in a CMS for your online store

With so many features at your fingertips, how can you narrow down the best bundle for your business? Below are our recommended features for running an efficient and scalable online storefront.

Flexibility

Look for a CMS that allows you to easily customize and expand your store’s capabilities. Popular customization includes different payment gateways, shipping methods, and analytics tools.

Scalability

Choose a CMS that allows you to scale up as needed. This will ensure that your store is able to handle additional customers and transactions without crashing or slowing down.

Security

Make sure the CMS you choose has robust security features in place to protect your customers’ data. Look for features such as encryption, secure login processes, and two-factor authentication.

Integration

Choose a CMS that can easily integrate with other software and services that you use in your business, such as accounting software or customer relationship management (CRM) systems.

Support

Look for a CMS that comes with a good level of customer service and technical support. This will ensure you quickly get the help you need when issues arise.

FAQs about CMS systems for eCommerce

Still narrowing down your options for eCommerce? Below are common questions for beginning business owners to help you out.

What is a CMS for eCommerce?

A content management system (CMS) for eCommerce is a platform that allows retailers to easily manage and update content on their online store.

It can be used to create product pages, customize design themes and layouts, manage customer accounts, and more.

What are the three different types of CMS?

While a CMS has the same underlying foundation of helping you run a website or a storefront, you can still customize them further.

The three different types of CMS are open-source software, proprietary, and SaaS.

Open-source CMS is free and highly customizable, coming from a vibrant community of like-minded programmers sharing their experiences. Anyone can jump in and tweak the code to their heart’s content.

Proprietary CMS doesn’t let you alter the source code. This type goes for a specific and tailored experience without any surprises. 

A SaaS eCommerce platform is similar to a proprietary CMS but has a cloud-based foundation.

This feature is useful when you have a lot of data to store and like to update your website on the go. You can access your storefront online without having to go through a download or maintain your own server.

What are the five common types of eCommerce?

When searching for a CMS, you can speed up your search by looking up the most relevant type of eCommerce for your business. 

The five most common types of eCommerce are:

• B2B (business to business)
• B2C (business to customer)
• B2A (business to administration)
• C2C (customer to customer)
• C2A (customer to administration)

What are the differences between open source and paid CMS?

Open-source CMS comes from a community of tech-savvy users who share their code as well as their experiences.

Paid CMS comes from an established business with source code that can’t be altered by users (or to a very limited extent). 

How do I pick the right CMS for my eCommerce business?

Picking the right CMS for your eCommerce business can be a daunting task. You should consider factors such as user experience, scalability, cost, support, and customization before making your decision. 

It’s also important to research different CMS solutions and compare them against each other to find the one that best fits your needs.

What features should I look for in a CMS for eCommerce?

When selecting a CMS for eCommerce, you’ll want to consider features such as product management, user account management, customer segmentation, marketing automation, inventory management, and order tracking. 

Additionally, it’s important to make sure the CMS is secure and compliant with industry standards.

How much does a CMS for eCommerce cost?

The cost of a CMS for eCommerce will vary depending on the platform you choose and the features you need.

Generally speaking, the cost of a CMS will be determined by the number of products and users you need to manage. 

Some platforms offer monthly subscription plans that can start at around $20/month. Others may cost you several hundred per month with the option to expand even further. 

Final thoughts: There’s a content management system for every eCommerce store

No matter your experience, inventory management needs, or aspirations, there’s an eCommerce content management solution for you.

It’s never been easier to download or purchase tools to sell online.

Finding the best eCommerce content management system for your needs depends on your industry, business size, budget, experience level, and personal preferences.

Most content management systems come with price tiers, but there are several open-source and free options to try. Almost all of them come with free trials or demos for you to test them out.

With the aid of a content management system for eCommerce, you’ll be able to automate tasks, scale your business, and deliver top-notch customer service. 

We know how difficult it is to manage and track inventory at scale. SkuVault is an inventory and warehouse management platform that ensures you can pack and deliver orders efficiently – without mis-ships or overselling. Schedule a demo today.

Starting an eCommerce business can be an exciting and rewarding experience. And when it comes to online marketplaces, eBay remains one of the top platforms to consider for new and experienced sellers alike.

In this guide, we’ll walk you through the process of setting up and growing your eCommerce business on eBay.

We’ll cover everything from setting up your seller account and researching your niche to crafting the perfect listing and scaling your business.

You’ll also learn all the best practices for eBay selling and running a profitable online store.

Why eBay is a valuable platform for eCommerce businesses

Advantages of selling on an eBay store

eBay is a well-established platform, boasting over 182 million active users worldwide. This massive user base presents a significant opportunity for eCommerce businesses to reach a global audience.

But why should you choose eBay as your selling platform? Here are some key advantages of selling on eBay:

1. Access to a large customer base: With millions of users, eBay offers you the opportunity to reach a broad and diverse customer base.
2. Flexible selling options: eBay provides various selling formats, such as auctions, fixed-price listings, and the “Buy It Now” option, giving you the flexibility to choose the best approach for your business.
3. Seller protection: eBay offers seller protection policies, which can help protect your business from fraudulent activities and unfair buyer behavior.
4. Global Shipping Program: eBay’s Global Shipping Program simplifies international shipping, allowing you to reach customers worldwide with ease.

Now that we know the benefits of selling on eBay, let’s dive into setting up your seller account.

How does selling on eBay work?

Selling on eBay involves listing your products, managing your inventory, handling transactions, and shipping items to buyers.

The platform offers a range of selling options, including auctions and fixed-price listings, as well as the ability to create an eBay Store for a more professional and branded online presence.

In this section, we’ll provide a broad overview of the process of selling on eBay (which we’ll explore in even greater detail later on).

1. Create an eBay seller account

To start selling on eBay, you’ll need to create a seller account. This involves providing some personal information, setting up a payment method for fees, and linking your PayPal account for receiving payments from buyers.

2. Research your niche and competition

Before listing your products, it’s important to research your niche and understand the competitive landscape on eBay. Analyze similar products, study successful sellers, and identify the best practices for product listings and pricing in your category.

3. List your products

Once you’re ready to list your items, you’ll need to create individual listings for each product. This involves writing a detailed product description, setting a price (either fixed or auction-style), and uploading high-quality images. Make sure to optimize your listings for eBay’s search engine by using relevant keywords in the title and description.

4. Choose your selling format

eBay offers two main selling formats: auctions and fixed-price listings. Auctions allow buyers to bid on your items for a specified duration, while fixed-price listings let you set a specific price for your products. Consider your target audience and the nature of your products when choosing the best-selling format for your business.

5. Create an eBay Store (optional)

If you’re planning to sell a large number of items or want to create a more professional and branded presence on eBay, consider opening an eBay Store. This subscription-based service provides you with a customizable storefront, advanced selling tools, and access to discounted fees.

6. Manage your inventory

Keep track of your stock levels and update your listings accordingly to ensure you don’t oversell or run out of products. Inventory management is crucial for maintaining a positive seller reputation and delivering excellent customer service.

7. Handle transactions

When a buyer purchases one of your items, you’ll receive a notification from eBay. It’s important to promptly confirm and process the order, ensuring the transaction is smooth and efficient for both you and your buyer.

8. Ship your items

After receiving payment, you’ll need to package and ship the item to the buyer. Choose a reliable shipping carrier, provide tracking information, and ensure your items are packaged securely to minimize the risk of damage during transit.

9. Manage customer service and returns

Providing excellent customer service is essential for building a positive seller reputation and maintaining a high feedback score on eBay. Respond promptly to buyer inquiries, handle any issues or disputes professionally, and have a clear return policy in place.

By following these steps, you’ll be well on your way to becoming a successful eCommerce seller on eBay. Remember, continuous improvement and adaptation are key to staying competitive and growing your business on this ever-evolving platform.

Setting up your eBay seller account

Choosing the right account type

When setting up your eBay account, you have two options to choose from: a personal account or a business account.

While both account types allow you to sell items, a business account is better suited for eCommerce sellers who plan to sell items regularly and in larger quantities.

A business account also offers additional features, such as the ability to register your business name, create a customized storefront, and access eBay’s Selling Manager Pro.

To set up a business account, simply sign up for an eBay account and select the “Create a business account” option during the registration process.

Once you link your bank account, you’ll be ready to receive payments and start selling!

Creating a compelling profile

Your eBay profile is an essential part of your online presence, as it gives potential buyers a glimpse into who you are and what your business is about.

Therefore, it’s crucial to create a compelling profile that sets your business apart from the competition.

Here are some tips for creating an engaging eBay profile:

1. Choose a unique username: Your username should be memorable, easy to read, and reflect your business’s identity.
2. Upload a professional profile picture: A high-quality profile picture helps create a sense of trust and professionalism.
3. Write a captivating bio: Your bio should briefly describe your business, highlight your unique selling points, and convey your passion for what you do.
4. Include contact information: Make it easy for buyers to get in touch with you by providing your contact details, such as your email address and phone number.

With your profile set up, it’s time to research your niche and target market.

Researching your niche and target market

Identifying profitable products

Finding the right products to sell on eBay is crucial to the success of your eCommerce business. To identify profitable products, consider the following factors:

1. Market demand: Research the popularity of products in your chosen niche by using tools like Google Trends, eBay’s completed listings, and keyword research tools.
2. Competition: Analyze your competition on eBay by searching for similar products and evaluating the number of eBay sellers, their pricing strategies, and customer reviews. This will give you an idea of the level of competition in your niche and help you identify any gaps in the market.
3. Profit margins: Calculate the potential profit margins for your chosen products by considering factors such as the eBay fees, shipping cost, and any additional expenses. Aim for products with a healthy profit margin to ensure the sustainability of your business.
4. Product uniqueness: Consider selling unique or hard-to-find products that set your business apart from the competition. This will make your listings more appealing to potential buyers and can help you build a loyal customer base.

Understanding your target market

Knowing your target market is essential for creating listings that resonate with potential buyers and driving sales. To better understand your target audience, consider the following:

1. Demographics: Identify the age, gender, location, and income level of your ideal customers.
2. Interests and preferences: Understand your target market’s preferences, needs, and pain points. This will help you create listings that speak directly to their needs and desires.
3. Buying behavior: Analyze the buying patterns of your target audience, such as their preferred payment methods, shipping preferences, and average order value.

By understanding your niche and target market, you can create compelling listings that attract potential buyers and drive eBay sales.

Crafting the perfect listing

Optimizing your listing title

Your listing title is one of the first things potential buyers see when browsing eBay. An optimized title can significantly impact your listing’s visibility and click-through rate.

To create an effective listing title, follow these best practices:

1. Use relevant keywords: Include the most relevant and high-traffic keywords in your title to improve your listing’s visibility in eBay’s search results. Use keyword research tools like Google Keyword Planner and eBay’s search suggestions to identify the best keywords for your products.
2. Be descriptive and specific: Clearly describe the product in your title, including details like brand, model, size, and color. This helps potential buyers understand what you’re offering and increases the likelihood of them clicking on your listing.
3. Keep it concise: eBay allows up to 80 characters for your listing title, but it’s best to keep it as short and informative as possible. A concise title is easier to read and more likely to attract clicks.

Crafting a compelling product description

An engaging and informative product description can help convert potential buyers into customers. To write a compelling product description, consider these tips:

1. Highlight the benefits: Focus on the benefits your product offers rather than just listing its features. This will help potential buyers understand how your product can solve their problems or improve their lives.
2. Use clear and concise language: Write in short, easy-to-read sentences and avoid jargon or overly technical language. This will make it easier for potential buyers to understand your product and make a purchasing decision.
3. Include product details: Provide all relevant product information, such as dimensions, weight, materials, and any additional features. This will help potential buyers make informed decisions and reduce the likelihood of returns.
4. Use formatting and visuals: Break up your description into short paragraphs, use bullet points, and include images or videos to make it more visually appealing and easier to read.

Using high-quality product images

High-quality product images are crucial for showcasing your products and building trust with potential buyers. Here are some tips for capturing professional-looking product photos:

1. Use a high-resolution camera: While smartphones can take decent photos, investing in a high-quality camera will significantly improve your product photography and create a more professional look.
2. Use proper lighting: Good lighting is essential to capture clear, well-lit product photos. Use natural light or invest in a lightbox or softbox to create even, diffused lighting.
3. Capture multiple angles and contexts: Show your product from different angles and in various contexts, such as close-ups, lifestyle shots, and the product “in action.” This will help potential buyers get a better understanding of your product and its features.
4. Edit your images: Use photo editing software to adjust the brightness, contrast, and colors of your images, as well as to remove any background distractions. This will create a more polished and professional look.

Setting competitive prices

Pricing your products competitively is crucial for attracting buyers and driving sales. To determine the best pricing strategy for your eCommerce business, consider the following factors:

1. Research the competition: Analyze similar products on eBay to understand the average selling price and identify any pricing gaps you can exploit.
2. Calculate your costs: Consider all costs associated with selling your product, such as the cost of goods, eBay fees, shipping costs, and any additional expenses. This will help you determine a minimum selling price to ensure profitability.
3. Test and adjust: Experiment with different pricing strategies, such as offering discounts, promotions, or free shipping, and monitor your sales performance to determine which approach works best for your business. Be prepared to adjust your prices as needed to stay competitive in the market.

Promoting your listings and driving sales

Using eBay’s promoted listings

eBay’s Promoted Listings is a powerful advertising tool that can help increase the visibility of your listings and drive more sales. By using Promoted Listings, your products can appear higher in eBay’s search results and be featured in prominent placements across the site.

To get started with Promoted Listings, simply select the listings you want to promote and set an ad rate, which is the percentage of the final sale price you’re willing to pay for the promotion.

eBay will then display your promoted listings to potential buyers, and you only pay the ad rate when a sale is made.

Building a strong customer feedback profile

Positive customer feedback is essential for building trust with potential buyers and improving your reputation on eBay. To maintain a strong customer feedback profile, consider the following tips:

1. Provide excellent customer service: Respond to customer inquiries promptly, resolve issues efficiently, and go the extra mile to ensure customer satisfaction.
2. Ship items quickly and securely: Ship your products promptly and use reliable packaging materials to prevent damage during transit. This will help reduce the likelihood of negative feedback due to shipping issues.
3. Encourage feedback: Politely ask your customers to leave feedback after a successful transaction. A simple thank-you message or a follow-up email can help remind buyers to leave their feedback.

Engaging with the eBay community

eBay has a strong and active community of buyers and sellers, and engaging with this community can help you build relationships, gain valuable insights, and grow your business.

Join eBay discussion boards, participate in community events, and share your expertise to establish yourself as a knowledgeable and helpful member of the community.

This can help increase your visibility on the platform and attract more potential buyers to your listings.

Scaling your eBay business

Once you’ve established a successful eCommerce business on eBay, it’s time to think about scaling your operations to maximize your growth potential. Here are some strategies to consider:

1. Expand your product range: Diversify your product offerings to cater to a broader audience and capitalize on new market opportunities.
2. Optimize your supply chain: Streamline your sourcing and inventory management processes to reduce costs, improve efficiency, and increase your profit margins. Consider using an inventory management platform like SkuVault to keep track of your stock levels and streamline your operations.

1. Leverage eBay’s selling tools: eBay offers various tools and resources, such as the Selling Manager Pro and eBay Analytics, to help you manage and grow your business more effectively. Make the most of these tools to optimize your listings, track your performance, and identify areas for improvement.
2. Expand to other marketplaces: As your business grows, consider expanding to other online marketplaces like Amazon, Etsy, or Walmart Marketplace to reach new customers and diversify your sales channels.
3. Invest in marketing and advertising: Increase your marketing efforts both on and off eBay to attract more potential buyers and boost your sales. Use social media, content marketing, and paid advertising to promote your products and increase your brand visibility.

By following these strategies, you’ll be well on your way to creating a thriving and scalable eCommerce business on eBay.

Frequently Asked Questions (FAQ) about selling on eBay

What are the fees associated with selling on eBay?

eBay charges various fees for selling on their platform, including insertion fees, final value fees, and fees for optional listing upgrades.

If you choose to open an eBay Store, you will also pay a monthly subscription fee. Keep in mind that fees may vary depending on the category and the specifics of your listing.

Always check eBay’s fee structure to stay updated on the costs associated with selling.

How can I increase the visibility of my listings on eBay?

To increase the visibility of your listings on eBay, optimize your product titles and descriptions with relevant keywords, use high-quality images, and offer competitive pricing.

Additionally, maintaining a strong seller reputation and providing excellent customer service can help boost your listings in eBay’s search results.

What are some tips for creating effective product listings on eBay?

When creating product listings on eBay, focus on writing clear and concise descriptions, using high-quality images, and providing accurate product details.

Make sure to optimize your listings with relevant keywords, offer competitive pricing, and choose the most appropriate selling format (auction or fixed-price) for your products.

Can I sell internationally on eBay?

Yes, you can sell internationally on eBay by offering worldwide shipping for your items.

To expand your customer base and reach more potential buyers, consider using eBay’s Global Shipping Program, which simplifies the international shipping process for sellers.

How do I handle returns on eBay?

To handle returns on eBay, create a clear and reasonable return policy for your items.

This policy should specify the conditions under which returns are accepted, the time frame for returning items, and any restocking fees that may apply.

When processing a return, communicate promptly with the buyer, issue a refund, and update your inventory accordingly.

How can I protect myself from fraud and scams when selling on eBay?

To protect yourself from fraud and scams when selling on eBay, follow eBay’s guidelines for safe selling practices.

These may include using secure payment methods like PayPal, verifying buyer information before shipping items, and providing tracking information for all shipments.

Additionally, monitor your account for any suspicious activity and report any concerns to eBay’s customer support team.

Conclusion

Starting and growing an eCommerce business on eBay might seem daunting at first, but by following this comprehensive guide, you’ll be equipped with the knowledge and strategies needed to find success as an eBay seller.

From setting up your seller account and researching your niche to crafting compelling listings and promoting your products, every step of the process is crucial in building a successful eBay business.

Overwhelmed? Just remember that there are tools, like SkuVault, that can make selling on eBay easier.

SkuVault is an inventory and warehouse management software that makes it simple to maintain an accurate inventory on eBay and get orders picked, packed, and shipped fast. Check out our features or eBay integration for more information.

Having a good eCommerce website builder is crucial for the success of your online store.

It can make or break your customer’s experience, your online visibility, and ultimately, revenue.

In this article, we’ll discuss the best eCommerce website builders for 2023, along with tips on how to pick the right one for your business.

Some of the platforms we’ll explore include industry staples like Shopify, WooCommerce, and Squarespace, as well as some newer players like Nexcess and Duda.

This guide is perfect for entrepreneurs, small business owners, or anyone looking to sell online without the hassle of hiring a developer or building a website from scratch.

If you want to start selling online but the thought of setting up a website is intimidating, we hope to put those fears to rest.

Factors to consider when choosing an eCommerce website builder

Our goal is to help you make an informed decision when choosing the best platform for your needs.

We’ll start by discussing factors to consider when choosing an eCommerce website builder, followed by a comparison of the top platforms.

We’ve got a lot of ground to cover, so let’s dive right in.

User-friendliness

Is the platform easy to use, even for beginners?

User-friendliness is vital to consider when choosing an eCommerce website builder. An intuitive interface ensures you can easily navigate and manage your online store, regardless of your technical skills.

A platform with an easy-to-use drag-and-drop builder will save you time, limit frustration, and help you focus your energy on growing your online business.

It’s essential to choose a platform that accommodates both beginners and experienced users, offering a smooth learning curve and seamless user experience.

Look for a platform that offers tutorials, guides, and an active community to help you troubleshoot any issues you may encounter.

Design flexibility

Does the platform offer a variety of templates and customization options?

Design flexibility is crucial when building your eCommerce site.

A platform that offers a wide range of templates and customization options enables you to create a unique, professional-looking website that accurately reflects your brand.

Unless you hire a developer, you’re not going to be coding your theme from scratch; you’ll start with a template.

This means you’ll want to make sure whatever eCommerce builder you choose has a robust template library (or at the very least, you find a template you like before committing to that particular builder).

Payment gateways

What payment options does the platform support?

Having multiple payment gateways on your eCommerce site is essential to cater to a wider audience and boost your conversion rates.

When selecting an eCommerce website builder, consider the payment options it supports, such as credit cards, PayPal, Apple Pay, Google Pay, and other popular methods.

The platform should also offer a secure and encrypted payment process to protect both you and your customers’ sensitive information.

Additionally, consider the transaction fees associated with each payment gateway, as these costs can impact your profit margins.

Choose a platform that supports a variety of payment methods to ensure a smooth and convenient shopping experience for your customers.

Integrations with other tools and software

Can the platform seamlessly integrate with other tools, such as inventory management software or email marketing?

Seamless integration with third-party tools will help you automate tasks, save time, and enhance your overall online store management.

When choosing an eCommerce website builder, see if it’s compatible with essential tools. This includes inventory management, shipping, email marketing, and customer relationship management (CRM) systems.

Research the available integrations and plugins for each platform, and consider whether they align with your current and future business needs.

Pricing plans

What are the costs of using the platform?

Get the best value for your investment by evaluating the pricing plans of different eCommerce website builders.

Don’t fall for the sticker price – every builder (even “free” eCommerce solutions) has hidden fees.

Consider not only the monthly subscription fees but also the transaction fees, payment processing fees, and any additional costs for premium features or integrations.

Some platforms offer a free trial or a free plan with limited features, so you can test the platform before committing to a paid plan.

Choose a platform that fits within your budget and offers the features and support necessary for your online business to thrive.

Customer support

Is there reliable customer support available?

Having access to reliable and responsive customer support is critical when running an eCommerce business.

Technical issues or questions can arise at any time, and having a support team readily available to assist you can make all the difference.

When evaluating eCommerce website builders, consider the quality of their customer support, response times, and the availability of various support channels such as live chat, email, phone, and a help center.

A platform with excellent customer support will give you peace of mind and help you quickly resolve any issues that may arise.

Top eCommerce website builders comparison

As we examine the best site builders, we’ll be reviewing them on the following criteria:

• User-friendliness
• Design flexibility
• Payment gateways (or payment options)
• Integration capabilities
• Pricing plans
• Customer support

1. Shopify

User-friendliness

Shopify is well-regarded for both its ease of use and ability to edit theme data, making it the gold standard for eCommerce user-friendliness.

Design flexibility

As of this writing, there are 133 themes in the Shopify Theme Store. These themes range from totally free to $360 for enterprise-level functionality, and they span almost every industry.

With a wide range of templates and customization options, Shopify ensures you can create a unique online store.

Payment gateways

Shopify supports a variety of payment methods, including its own payment gateway, Shopify Payments.

Shopify Payments offers users a more streamlined experience, lower transaction fees, multi-currency support, fraud analysis, and faster payouts.

Integrations with other tools and software

Shopify has a vast App Store with integrations for inventory management, marketing, and more.

Pricing plans

Shopify offers various pricing plans to suit different budgets and business sizes. The Basic plan starts at $39 per month and includes up to 1,000 inventory locations, basic reports, and two staff accounts.

The Advanced plan is $399 per month but includes steeper shipping discounts and lower credit card transaction fees.

Customer support

Shopify provides 24/7 customer support via phone, email, and live chat.

Related Article: WooCommerce vs. Shopify: Which Platform Is Better for Your eCommerce Business

2. Square Online

Square Online is another popular eCommerce website builder, particularly for small businesses and brick-and-mortar stores looking to expand online.

User-friendliness

Square Online, like Shopify, is designed to be accessible for users with little to no technical background.

It includes an intuitive interface, drag-and-drop builder, pre-designed templates, and built-in features for inventory management, shipping options, and payment processing.

Since Square was one of the first companies to pioneer the whole “taking payments on your device” thing, many brick-and-mortar businesses already use them as their payment processor.

This makes the transition to Square Online all the more seamless.

Design flexibility

Square Online offers a variety of templates that cater to different industries.

While not as customizable as some other platforms, the templates are modern and responsive, ensuring a seamless experience for customers.

Payment gateways

Square Online integrates with the Square payment system, offering a streamlined checkout experience.

It also supports other popular payment gateways like PayPal and Apple Pay.

Integrations with other tools and software

Square Online offers a range of integrations with popular tools like Instagram, Mailchimp, and Google Analytics.

You’ll be able to extend the functionality of your online store and improve your marketing efforts.

Pricing plans

Square Online offers a free plan with basic features, making it an attractive option for small businesses just starting out. However, it is quite limited, offering no customer accounts, PayPal support, or personalized ordering.

Their paid plans start at $29/month and even include a free custom domain for one year.

Customer support

Square Online provides support via phone, email, and live chat.

Their extensive knowledge base also offers valuable resources to help you navigate the platform.

Related Article: 13 Best Free Online Stores to Start Your eCommerce Business

3. Squarespace

Squarespace is a powerful eCommerce website builder known for its stunning designs and templates.

What makes Squarespace so attractive is its ability to get a beautiful online store up and running in a matter of minutes.

Its drag-and-drop tools for modular website creation make it an excellent choice for non-tech-savvy sellers with an eye for good design.

User-friendliness

Squarespace features a clean, user-friendly interface with a visual editor that makes it easy to customize your online store.

It may take some getting used to, but once familiar, it’s quite intuitive.

Design flexibility

With a focus on aesthetics, Squarespace offers a wide range of professionally designed templates.

These templates are highly customizable, allowing you to create a unique look and feel for your online store.

Payment gateways

Squarespace supports popular payment gateways like Stripe, PayPal, and Apple Pay, ensuring a smooth checkout process for your customers.

Integrations with other tools and software

Squarespace offers a variety of integrations with essential eCommerce and SEO tools, such as email marketing, social media, and analytics platforms.

This helps streamline your operations and improve your marketing efforts.

Pricing plans

Squarespace has a variety of pricing plans tailored to the needs of online stores.

While there is no free plan, the platform offers a 14-day free trial to test its features. The eCommerce plan starts at $23 per month.

Customer support

Squarespace offers 24/7 customer support via email and live chat.

Their comprehensive help center also provides a wealth of resources, including video tutorials and guides.

Related Article: 9 Best Software for eCommerce to Grow Your Business

4. Wix

Wix is a popular eCommerce website builder known for its user-friendly drag-and-drop interface and wide selection of customizable templates.

It offers a variety of eCommerce-specific features, including multiple payment gateways, integrations with marketing tools, and advanced product management options.

Wix is an excellent choice for small to medium-sized businesses looking to create a professional online store with minimal technical expertise required.

User-friendliness

Wix features a drag-and-drop editor, making it easy for anyone to create a visually appealing online store.

The platform also offers the innovative Wix ADI (Artificial Design Intelligence) tool, which can create a store for you based on your preferences.

While Wix has historically not been a frontrunner in the world of no-code web design platforms, it launched Editor X in 2020, which has completely changed the game.

Editor X is a no-code web design platform that offers advanced features like flex and grid layouts, custom interactions, and full breakpoint control.

This means interaction-based events, animations, and more are now accessible to folks who don’t know a single line of code (and don’t have the time to learn).

This makes Wix a great eCommerce website builder that punches well above its weight.

Design flexibility

Wix offers a wide range of templates specifically designed for eCommerce, with many customization options.

You can easily create a unique, professional-looking store that reflects your brand.

Payment gateways

Wix supports a variety of payment gateways, including PayPal, Stripe, and Square, providing your customers with a smooth checkout experience.

Integrations with other tools and software

Wix’s App Market offers numerous integrations with popular eCommerce tools, including inventory management, email marketing, and analytics platforms.

This allows you to expand your store’s functionality and streamline your operations.

Pricing plans

Wix offers several pricing plans designed for eCommerce, with varying features to suit different business needs.

While there isn’t a free plan for online stores, Wix does provide a 14-day money-back guarantee.

Their plans start at $27 per month and go up to $59 per month.

Customer support

Wix offers customer support via phone, email, and an extensive knowledge base.

Related Article: 9 Alternative Platforms to Etsy: Which One Is Right for You?

5. WordPress + WooCommerce

WordPress, combined with the WooCommerce plugin, creates a powerful and flexible eCommerce platform for those familiar with the popular content management system.

WordPress is well-renowned for its massive theme and plugin library, which allows you to build almost anything you can imagine (if you’ve got the development chops or you’re willing to learn).

WordPress + WooCommerce is probably the least beginner-friendly online store builder on this list, which isn’t saying much. It’s still quite easy to get a WordPress site spun up, and with a bit of Googling, most technical issues can be quickly resolved.

The danger comes from the fact that, unlike Shopify, Wix, or SquareSpace, many of the themes and plugins are from 3rd-party developers and may negatively impact one another if not configured correctly.

That said, if you want to publish a bunch of blog content as part of your eCommerce marketing strategy, there’s no better platform than WordPress.

User-friendliness

While WordPress itself has a learning curve, the WooCommerce plugin simplifies the process of setting up an online store. It’s a great choice for those already familiar with WordPress.

Design flexibility

WooCommerce is highly customizable, with thousands of themes and plugins available. This allows you to create a truly unique online store tailored to your brand.

Payment gateways

WooCommerce supports a wide range of payment gateways, including PayPal, Stripe, and Square, ensuring a convenient checkout experience for your customers.

Integrations with other tools and software

WooCommerce’s extensive plugin ecosystem allows you to integrate with various eCommerce tools, such as email marketing platforms, inventory management systems, and analytics tools.

When you combine this with the staggering number of plugins in the WordPress plugin library, you’re only limited by your imagination.

Pricing plans

WooCommerce itself is a free plugin, but costs may arise from additional plugins, themes, and hosting fees.

This makes it a cost-effective option for businesses on a budget.

Customer support

WooCommerce offers support through its documentation and user forums. Premium support is available for those who purchase additional extensions or themes.

Related Articles:

• 5 Best Hosting Platforms for WooCommerce & How to Pick One
• WooCommerce vs. Shopify: Which is Better for Your eCommerce Business?
• Top 7 WordPress Inventory Management Plugins

6. Shift4Shop (formerly 3Dcart)

Shift4Shop is an all-in-one eCommerce platform catering to businesses of all sizes.

User-friendliness

Shift4Shop offers a user-friendly interface, with a drag-and-drop editor that simplifies the process of building an online store.

Design flexibility

With over 100 customizable themes, Shift4Shop allows you to create a professional-looking store that aligns with your brand’s style.

Payment gateways

Shift4Shop integrates seamlessly with Shift4 Payments, the platform’s payment gateway, as well as other popular gateways like PayPal and Stripe.

Integrations with other tools and software

Shift4Shop offers numerous integrations with essential eCommerce tools, including email marketing, CRM, and inventory management solutions.

Pricing plans

Shift4Shop has various pricing plans to suit different business needs, including a free plan with basic features. Paid plans offer additional features and lower transaction fees.

Customer support

Shift4Shop provides 24/7 customer support via phone, live chat, and email, along with a comprehensive knowledge base for self-help resources.

Related Article: 11 Best eCommerce Alternatives to Square or Stripe: Learn Your Options

7. BigCommerce

BigCommerce is a powerful eCommerce platform designed to help businesses of all sizes build and scale their online stores.

It offers a comprehensive set of eCommerce tools, including customizable templates, a wide range of payment gateways, and seamless integrations with popular marketing and sales tools.

With its robust features and scalability, BigCommerce is an ideal choice for growing businesses looking to expand their online presence and drive sales effectively.

User-friendliness

BigCommerce features a clean, user-friendly interface, making it easy to set up and manage an online store, even for those without coding experience.

Design flexibility

BigCommerce offers a variety of professional-looking, responsive themes, with plenty of customization options to create a unique store that reflects your brand.

Payment gateways

The platform supports a wide range of payment gateways, including PayPal, Stripe, and Square, providing a smooth checkout experience for your customers.

Integrations with other tools and software

BigCommerce integrates with various eCommerce tools, such as email marketing platforms, Google Shopping, inventory management systems, and analytics tools, allowing you to extend your store’s functionality and streamline operations.

Pricing plans

BigCommerce offers several pricing plans to accommodate different business needs. While there’s no free plan, they do provide a 15-day free trial to test the platform.

Customer support

BigCommerce provides 24/7 customer support via phone, live chat, and email. Their extensive help center also offers a wealth of resources, including guides and video tutorials.

Related Article: 7 eCommerce Tools to Grow Your Business

8. Nexcess

Nexcess is a managed hosting provider that specializes in eCommerce solutions, particularly for WordPress, WooCommerce, Magento, and more.

It also includes StoreBuilder, an intuitive (and competitively priced) drag-and-drop eCommerce site builder built on the WordPress framework.

User-friendliness

Nexcess aims to simplify the process of setting up and managing an eCommerce store by providing a user-friendly hosting environment and one-click installations.

Design flexibility

Since Nexcess is a hosting provider, design flexibility depends on the eCommerce platform you choose, such as Magento or WooCommerce.

Both platforms offer a wide range of themes and customization options.

Payment gateways

Nexcess supports the payment gateways offered by the eCommerce platforms it hosts, ensuring a seamless checkout experience for your customers.

Integrations with other tools and software

As a hosting provider, Nexcess allows you to integrate your store with various eCommerce tools, depending on the platform you choose.

This helps extend your store’s functionality and streamline operations.

Pricing plans

Nexcess offers a variety of managed hosting plans to suit different business needs and budgets. While they don’t have a free plan, they do provide a 14-day free trial.

Customer support

Nexcess offers 24/7 customer support via phone, live chat, and email. They also provide an extensive knowledge base with helpful resources.

9. Duda

Duda is a newer entry to the no-code website builder world (at least compared to others on this list) with rich eCommerce functionality designed for web professionals, agencies, and entrepreneurs.

Duda’s competitive edge is that all its sites and templates are built with SEO in mind, namely with Core Web Vitals optimization, security, and built-in SEO tools.

They boast one of the best website builders (akin to something like Webflow or Editor X) and, while it does have a learning curve, it offers an almost unlimited level of customization.

User-friendliness

Duda features a drag-and-drop editor, making it easy to create and customize your online store without any coding experience.

Design flexibility

Duda offers a range of modern, responsive templates, with many customization options to create a unique online store that reflects your brand.

Payment gateways

Duda supports popular payment gateways like PayPal, Stripe, and Square, providing a convenient checkout experience for your customers.

Integrations with other tools and software

Duda integrates with various eCommerce tools, such as email marketing platforms, inventory management systems, and analytics tools, helping you extend your store’s functionality.

Pricing plans

Duda offers several pricing plans with eCommerce features, catering to different business needs. They also provide a 14-day free trial to test the platform.

Customer support

Duda offers customer support via phone, email, and live chat. They also provide a comprehensive knowledge base with helpful resources.

10. GoDaddy

GoDaddy, known primarily as a domain registrar and hosting provider, also offers an eCommerce website builder.

User-friendliness

GoDaddy’s eCommerce website builder features a user-friendly, intuitive editor, making it easy for anyone to create an online store.

Design flexibility

GoDaddy offers a range of modern, responsive templates, with customization options to create a professional-looking store that aligns with your brand.

Payment gateways

GoDaddy supports popular payment gateways like PayPal, Square, and Stripe, ensuring a smooth checkout experience for your customers.

Integrations with other tools and software

GoDaddy integrates with various eCommerce tools, such as email marketing platforms and inventory management systems, allowing you to enhance your store’s functionality and streamline operations.

Pricing plans

GoDaddy offers several eCommerce-focused pricing plans to accommodate different business needs. While they don’t have a free plan, they do provide a 30-day free trial to test the platform.

Their Commerce pricing plan ($24.99 per month) allows users to list up to 5,000 products for sale.

Customer support

GoDaddy offers 24/7 customer support via phone and live chat. They also have a comprehensive help center with articles and resources to help you navigate the platform.

11. Ecwid

Ecwid is a versatile eCommerce platform that allows users to quickly and easily add an online store to their existing website, blog, or social media pages.

It offers a range of customization options, supports various payment gateways, and provides seamless integration with popular marketing tools.

With its simplicity and flexibility, Ecwid is an excellent choice for small businesses and entrepreneurs looking to start selling online without building a new website from scratch.

User-friendliness

Ecwid is designed for ease of use, allowing you to set up your online store quickly and efficiently without any coding experience.

Design flexibility

Ecwid offers a range of responsive themes and customization options to create a professional-looking store that matches your brand’s style.

Payment gateways

Ecwid supports a variety of payment gateways, including PayPal, Stripe, and Square, ensuring a seamless checkout experience for your customers.

Integrations with other tools and software

Ecwid integrates with numerous eCommerce tools, such as email marketing platforms, inventory management systems, and analytics tools, helping you enhance your store’s functionality and streamline operations.

Pricing plans

Ecwid offers a free plan with basic features, making it an attractive option for small businesses just starting out. Paid plans with additional features are also available.

Customer support

Ecwid provides customer support via live chat and email, as well as an extensive knowledge base with helpful resources to assist you in managing your online store.

How to pick the right eCommerce website builder for your business

Assess your specific needs and goals

Before choosing an eCommerce website builder, it’s important to understand your business’s unique needs and goals.

Consider factors such as your target audience, the types of products you sell, and your plans for growth.

If aesthetics and design are a priority, consider Shopify, SquareSpace, Wix, or Duda.

If you want to publish loads of content and are willing to get your hands dirty with some code, consider WordPress + WooCommerce.

If you want easy-to-use managed hosting on WordPress, look into Nexcess.

If you’re already using Square for your brick-and-mortar business, Square Online is probably the most logical choice.

Evaluating each platform’s strengths and weaknesses

Each eCommerce website builder has its own strengths and weaknesses.

Some platforms may excel in design flexibility, while others might prioritize user-friendliness.

Carefully evaluate each platform’s features to determine which one best aligns with your requirements.

Considering your budget and growth plans

Your budget and growth plans play a significant role in determining the best eCommerce platform for your business.

Some platforms offer affordable plans for smaller businesses, while others provide more advanced features to support rapidly growing companies.

Always consider the scalability of the platform when making your decision.

Testing: the key to finding the best eCommerce website builder

Before committing to an eCommerce website builder, take advantage of free trials or freemium plans to test out different platforms.

It may seem like a chore to build out your store on each of these platforms, but some legwork upfront will save you a ton of headaches down the line should you decide to switch.

Conclusion

Recap of the top eCommerce website builders

In this article, we’ve explored some of the best eCommerce website builders for 2023.
Truthfully, any of these platforms would be an excellent choice for an eCommerce website.

Sure, some are better than others depending on your goals, but there’s truly never been a better time to be a no-code eCommerce entrepreneur.

Choosing the right eCommerce website builder can have a significant impact on your online store’s success.

By considering factors such as design flexibility or payment gateways, you can find the perfect platform to support your online store and drive growth.

FAQs about eCommerce website builders

Is web hosting for my eCommerce site included in these services?

Yes, most eCommerce website builders include web hosting as part of their service packages. The only exception to this is WooCommerce, which is technically a very large plugin for the WordPress CMS (content management system).

However, many providers (like Bluehost or the aforementioned Nexcess), offer Managed WordPress sites that include hosting and an easy WordPress install.

This means you won’t need to purchase separate hosting, making it easier and more cost-effective to manage your online store.

Be sure to check the specific features and limitations of each platform’s hosting options to ensure it meets your needs and supports your site’s growth.

What should I look for in the best eCommerce site builder?

When choosing an eCommerce website builder, consider factors such as user-friendliness, design flexibility, payment gateways, integrations with other tools and software, pricing plans, and customer support.

These factors will help ensure a smooth experience when building and maintaining your online store.

Can I start an eCommerce business without any technical knowledge?

Yes, many eCommerce website builders offer a user-friendly drag-and-drop builder that makes it easy for those without technical knowledge to create and manage their online store.

These platforms provide pre-built templates and easy-to-use tools, allowing you to focus on your business rather than the technical aspects of your site.

How can I choose the best eCommerce website builder for my specific needs?

To find the best eCommerce website builder for your unique needs, start by assessing your business goals and target audience.

Then, research and compare different platforms based on their strengths and weaknesses, pricing plans, and scalability.

Be sure to test out different platforms using free trials or freemium plans before committing to one.

How much does it cost to start an online business using an eCommerce website builder?

The cost to start an online business using an eCommerce website builder varies depending on the platform you choose and the features you require.

Many platforms offer affordable plans for small businesses, while others provide more advanced features for rapidly growing companies.

Be sure to consider your budget and growth plans when selecting a platform.

Can I use an eCommerce website builder to sell both physical and digital products?

Yes, most eCommerce website builders support the sale of both physical and digital products.

Be sure to choose a platform that offers the necessary features for selling and managing your specific product types, such as inventory management for physical products and digital download options for digital products.

GoDaddy offers a compelling blend of features, but is it the right online storefront for you?

While you can attach an eCommerce store to an existing website with other services, GoDaddy lets you combine the site and store into one.

This consolidated approach is a lifesaver for business owners too tired or busy to jump between different platforms. But it’s not for everyone.

We’ll explore GoDaddy’s robust features, how they compare to the competition, and whether you should use them to operate your storefront.

What is GoDaddy Commerce?

GoDaddy Commerce is an eCommerce platform provided by GoDaddy, a popular company known for domain registration and web hosting services.

(You’ve likely seen their viral Superbowl ads in recent years.)

This platform enables users to create and manage online stores with ease, offering a suite of tools and features designed to help businesses sell products and services online.

You don’t have to know a single line of code – just answer a few questions in their questionnaire and the GoDaddy website builder will do the rest.

This feature is an extension of GoDaddy’s overall business model as a user-friendly site builder.

You’ll be able to easily sell more products with time-saving tools such as weight-based shipping calculation, abandoned cart recovery, and secure credit card transactions.

One of their most appealing features is their low online transaction fee of 2.3% and $0.30 cents, which usually range between 2.4% to 2.9%.

What features come with GoDaddy online stores?

GoDaddy eCommerce is a consolidated option for new business owners or experienced business owners tired of managing multiple platforms.

Below are a few of their most time-saving and user-friendly features.

You’ll enjoy fast setup

Setting up your services online can be intimidating due to multiple steps such as web design and payment processing.

GoDaddy provides fast, easy website creation so you can have your online store up and running in just a few minutes.

Their Artificial Design Intelligence assists with setup by taking the answers to your questions and applying them to your site’s design.

There are plenty of personalization options

Personalization options allow you to customize the look and feel of your store to match your brand. You can try GoDaddy’s free plan yourself to get a feel for their drag-and-drop editor.

You get fundamental marketing tools

If you’re concerned about having to hop between platforms to market your store, GoDaddy has marketing tools already available. They offer several staples such as:

• SEO tools
• Email marketing campaigns
• Coupon codes 
• Marketing planner for social media
• Social media ads for Facebook and Instagram

Their advanced analytics also lets you track customer behavior, sales data, and more.

Everything is mobile friendly

You don’t need to go out of your way to optimize your online store for mobile devices. GoDaddy’s mobile responsive design ensures your eCommerce site looks great on any device.

They provide dependable security features

When an estimated 87% of small businesses have customer data that could be stolen in a cyberattack, you can’t overlook security features.

GoDaddy’s security provides secure hosting and integrated payment processing that is PCI compliant.

How much do their online stores cost?

Their Commerce plan is $25.99/mo when billed annually and $29.99/mo when billed monthly. Both payment methods come with full functionality to upload, sell, and advertise your products or services.

The Commerce plan comes with the standard GoDaddy features: building a website, obtaining a custom domain, and a website SSL certificate.

If you’re not ready to commit yet, you can use their Free plan to upload your products, design your store, and set up pricing. This will also help you get comfortable with using the platform.

However, you can’t sell products with their Free, Basic, Standard, or Premium plans – only their Commerce option or Managed WordPress Ecommerce Hosting.

What’s the difference between GoDaddy Commerce and Managed WordPress Ecommerce Hosting?

GoDaddy offers both “Commerce” and “Managed WordPress eCommerce Hosting” plans. While both include selling online through GoDaddy, there are a few key differences.

Their Managed WordPress Ecommerce Hosting plan uses Woocommerce, a customizable open-source eCommerce platform.

GoDaddy will install it into your WordPress to provide you online store features such as staging environments, product listings, and store listings. You’ll then get access to a library of Woocommerce extensions for marketing, shipping, and much more.

You’ll save hundreds – maybe thousands – of dollars with their comprehensive Woocommerce resources instead of buying them all individually.

This plan is best for business owners who need more control over their store’s functionality, but still want GoDaddy’s security and expertise. 

To compare, their Commerce option already has several key eCommerce features built-in so you can get started immediately.

What are the benefits of GoDaddy Commerce?

GoDaddy Commerce’s main appeal still comes from its fast website builder. While some eCommerce storefronts plug into existing sites, you can enjoy multiple benefits in one place.

You can get started within minutes

Their all-in-one package has everything you need to get started selling online. Once you sign up with their Commerce plan, you’ll enjoy: 

• User-friendly site-building 
• Web hosting
• Domains
• Secure payments
• Branded content
• Fraud protection

Drag-and-drop editor is great for beginners

You don’t need to learn how to code to put together your eCommerce storefront. GoDaddy’s user-friendly dashboard comes with drag-and-drop functionality, making it easy to manage and customize your store.

Their customizable templates allow you to create a unique look for your store. They categorize each one by their dominant feature, such as easy booking features or a minimalist color scheme.

For example, their Hello MCM theme comes with a Facebook review feature to showcase recent customer testimonials. 

Another solid example is their Croinna theme, which overlaps nicely with an Instagram account with a focus on landscape images. 

Lots of built-in marketing and inventory management features

GoDaddy’s built-in reporting tools help you keep track of sales, inventory, customers, and more. They also provide powerful marketing features such as automated email campaigns. 

Their automated email features save you time sending out emails to customers in different stages of their buying journey. You can also automate the following:

• Points of contact 
• Customer shipment updates
• Booking confirmation
• Order cancellation
• Cart abandonment

Customer support to help you 24/7

GoDaddy provides comprehensive customer service and support to help you get the most out of your store. They’re available 24/7 by phone or through their site’s chat feature.

Checkout is a breeze for customers

Did you know 17% of shoppers will abandon their purchase if the checkout experience is complicated or slow? GoDaddy’s intuitive checkout process makes it easy for customers to complete their purchases.

You can also test out the checkout process yourself and edit it to ensure a smooth buying process. You can add pickup instructions or order completion buffer times. 

What are the downsides of GoDaddy commerce?

GoDaddy is a well-known brand for simplifying the process of building websites and managing online stores. However, they still might not meet every challenge you have (and may even cause new problems).

Design customization isn’t as flexible as other options

Do you want to tweak every last color, picture, and typeface? GoDaddy’s limited design customization options may be less appealing to you than other eCommerce platforms. 

While GoDaddy provides plenty of appealing templates, they still have fewer options than other platforms. For example, compare GoDaddy to Wix. GoDaddy offers over one hundred templates, while Wix offers over eight hundred. 

Going even further, the WordPress + WooCommerce ecosystem has thousands of themes available and is completely open-source, allowing you to adjust your site to pixel-perfection (if you’re into that sort of thing).

Coding features may be limited (for the storefront)

Do you already have some coding knowledge and want to apply it to your storefront? While GoDaddy has an HTML editor for custom code, you’ll have a limited ability to embed code such as sliders, galleries, or other interactive features.

Fee and payment structure can be confusing

What you see isn’t always what you get with GoDaddy. Their fees and payment structure are a little confusing at first and require some digging before you can budget properly.

A common pain point for both business owners and customers are fees. GoDaddy’s non-standard fee structure can be a little confusing at first.

On the plus side, they don’t charge transaction fees. Their fees are also generally lower than other storefronts at 2.3% per transaction with $0.30 cents.

However, you still have to pay the fees of any payment gateway you’re using. These costs could quickly become a lot higher than you initially expect.

Their pricing can be confusing since you’ll owe different amounts depending on whether you pay monthly or annually.

Their business email address also expires after one year, which means you’ll have to purchase another to keep features such as archiving or HIPAA compliance.

GoDaddy lacks payment options

Unfortunately, GoDaddy has limited payment options. It only supports PayPal, Stripe, and Apple Pay. 

While these payment gateways are popular, you’ll still miss out on customers who prefer Google Pay or American Express.

Little technical support 

If you need to ask a lot of questions on a rolling basis, you may be disappointed. GoDaddy does not provide a customer service number for inquiries or technical support.

GoDaddy provides support through email and a live chat support option on their site.

No outside marketplace options

While you can list your products or services on other marketplaces such as Amazon or eBay, GoDaddy doesn’t offer a marketplace option. 

FAQs

Do you still have questions about GoDaddy’s eCommerce capabilities? We’ll answer them below.

What is the GoDaddy online store?

GoDaddy is a website builder that helps businesses quickly and easily create an online storefront.

They offer a range of tools to help users customize their store, including dropshipping and inventory management.

Is it better to use GoDaddy or WordPress?

Both GoDaddy and WordPress are comprehensive online storefronts. You’ll need to assess your skill level, business size, and budget to decide which storefront is best for your business. 

GoDaddy is an appealing choice for beginners since it has the storefront and website all in one place. They also come with user-friendly features such as a drag-and-drop site editor. 

WordPress is better suited for business owners who have some coding knowledge. WordPress offers a wide range of design and feature customizations.

If you want the best of both worlds, consider GoDaddy’s Managed WordPress Ecommerce Hosting plan.

Are GoDaddy online stores easy to use?

Yes. GoDaddy is designed for users of all skill levels, making it easy to set up, customize and manage your store. They provide helpful tutorials and customer support when you need extra assistance.

What kind of payment methods does GoDaddy offer?

GoDaddy offers a range of secure payment options, including credit cards, PayPal and Apple Pay. It also offers support for recurring payments.

Do GoDaddy online stores offer shipping services?

Yes. GoDaddy provides integrated shipping services so you can easily manage orders and track shipments in real time. It also supports drop shipping to help you manage your inventory more efficiently.

Is GoDaddy secure?

Yes. GoDaddy is a PCI-compliant platform, using the latest encryption and security protocols to keep your customers’ data safe. It also provides fraud protection tools to help protect against fraudulent transactions.

GoDaddy Commerce is ideal for beginning shop owners

Setting up an online store doesn’t have to involve an expensive degree or years of coding knowledge. GoDaddy’s eCommerce website builder equips beginning shop owners with high security and customization at an affordable cost.

GoDaddy’s main appeal lies in its consolidated design, so you can build a website that’s ready to sell products and services. Notably, you can also add GoDaddy to an existing WordPress site with their Managed WordPress Ecommerce Hosting plan.

If you prefer to have a finer level of control over your store’s functional or design features, GoDaddy may be less appealing. This platform also doesn’t have the most straightforward pricing, which can be confusing for new business owners.

Overall, GoDaddy is a prime choice for small business owners who want to save time while still putting their best foot forward. 

Once you’ve got your eCommerce website up-and-running, that’s when the real work begins.

Looking to develop and grow a successful eCommerce business?

See how SkuVault’s inventory management software makes it easy to track stock, prevent mis-ships or overselling, and saves time that could be invested in growing your business.

And check out these other related posts:

• The Ultimate Guide to Starting An eCommerce Business in 2023
• 30 Big eCommerce Trends to Watch Out For in 2023
• 9 eCommerce Software To Grow Your Business: 2023 Guide

Running an online store securely means choosing the best hosting platform. Establishing this strong foundation sets the stage for the rest of your business operations.

When a mere one-second delay can reduce your conversion rate by 7%, you need a web hosting service that’s fast and reliable.

WooCommerce is among the most popular eCommerce resources for online stores thanks to its wide range of features.

It’ll be even more effective when you choose a compatible hosting platform for your business based on your size, experience, and aspirations. 

We’ve chosen the top 5 platforms for hosting WooCommerce in 2023. We’ll break down how to pick the right one for your business so you can operate securely and efficiently.

Let’s dive in!

What is WooCommerce hosting?

If you’re reading this, you probably already know that WooCommerce is a popular eCommerce plugin that enables WordPress sites to sell products and services online.

WooCommerce hosting refers to web hosting services that are specifically tailored for WordPress websites that use the WooCommerce plugin.

Since WordPress websites can have varying levels of complexity, it is important to choose a web hosting provider that can handle the demands of a WooCommerce website.

A good WooCommerce hosting provider will offer optimized server settings, fast website loading speeds, and reliable uptime.

Factors to consider when choosing a hosting platform for your WooCommerce store

With so many options available to you, narrowing down the best WooCommerce hosting providers can be a chore.

Our recommended factors are based on the most common pain points faced by eCommerce business owners.

Server performance and reliability

Established hosting brands will have a track record of providing stable websites that consistently perform throughout the year. 

Reliable web hosts will have multiple server locations to keep the risk of your website becoming unavailable low. 

Data backups

Did you know 60% of businesses that experience a data loss incident will shut down less than a year later? Your WooCommerce hosting needs to have reliable backups to reduce this risk.

Review their data backups to see how often they back up your data (such as every month or every three months). See if they include automatic back up features to save you time. You also need to double-check how long they store that information. 

The last thing you need is being hit with a cyber attack, only to find out your web host stores your data for a limited time and you’ve lost critical business data.

Security

Almost half of all small businesses don’t know how to protect themselves against a cyber attack. The first step you can take is to choose a WooCommerce hosting plan with multiple security measures in place for you and your customers.

Reliable features that keep your business information safe include:

• Two-factor authentication for passwords
• Public key authentication
• Administrative access features
• Secure payments

You also need to keep your customer’s data safe, such as their credit card information or their email. Security features to keep their information safe include:

• Encrypted data communication (such as an SSL certificate)
• Encryption monitoring 
• Password management features

Note that almost all hosting providers bundle a free SSL certificate with their hosting plans.

Support and customer service

Whether you’re new to running a website or experienced, you need reliable customer support.

A WordPress website is a tricky ecosystem of plugins, custom themes, and automatic WordPress updates.

Ask any WordPress developer or webmaster and they’ll tell you they can be tricky to maintain, especially as they grow in scope.

If your site suddenly crashes or your data becomes compromised, you need professionals who can help you out fast. 

Double-check your WooCommerce hosting service to see what kind of customer support they offer. They could have a 24/7 live chat feature, phone support, or even a dedicated agent for your business.

Pricing plans

Often, web hosts offer different pricing tiers to accommodate your budget.

While this is a flexible way of getting your business off the ground, be aware that different WooCommerce hosting tiers have different features.

A basic plan may have a limited amount of data you can store, while a more advanced plan may be better for scaling your business. 

Scalability and flexibility

What are your goals for the next five years? If you have plans to expand your shop to new customers or even open up a new shop, you need WooCommerce hosting that’s scalable. 

Scalability allows you to expand your eCommerce capabilities without switching over to a new host.

Website speed and performance

The importance of a fast website can’t be overstated enough. 70% of customers state that page speed is an important factor on whether or not they buy from an online store. 

If you want the fastest possible WooCommerce hosting, consider looking for a host with several data centers or a VPS web host.

VPS is short for Virtual Private Server, giving you much faster web speed since you’re not sharing the server with other users. 

Top 5 platforms for WooCommerce hosting

Our top 5 hosting platforms will provide you with fast and reliable WooCommerce stores.

Not only will you enjoy greater security running your online store, but your customers will also have a more frictionless browsing experience.

Bluehost

Are you just starting out with an eCommerce store? BlueHost provides the well-rounded and user-friendly experience beginner business owners need. 

This established web host has earned a reputation for being dependable, flexible, and fast.

Their servers come with a diesel generator to remain active even during power outages, meaning your risk of a crashed site is extremely low. If you ever have questions or concerns, their 24/7 customer support will help you out.

Their eCommerce features are competitive, coming with both a high level of security as well as compatibility with common platforms such as osCommerce and ZenCart. 

You can try out one of their demos before committing to one of two plans for your WooCommerce site – their Online Store or Online Store + Marketplace.

SiteGround

If you’re extra concerned about your ability to pay, SiteGround wants you to feel completely confident about your purchase. They’re so assured you’ll love their services, they offer a 30-day money back guarantee.

Considering their impressive range of features, it’s unlikely you’ll be dissatisfied. This web host offers a robust WooCommerce pricing plan list with a wide range of features.

Not only do they either transfer or install your website for free, they offer several layers of security, unlimited databases, and a daily backup feature.

Simply put, SiteGround is one of today’s best resources for feeling confident as an online shop owner.

Alongside their 30-day money back guarantee, they provide three price tiers for WooCommerce – StartUp, GrowBig, and GoGeek. They also occasionally have limited-time discounts, so keep a close eye on them while exploring your options. 

WP Engine

Do you plan on running multiple eCommerce sites? WP Engine offers a WooCommerce plan that comes with three possible sites, an ideal option for business owners thinking of expanding. 

You can also get started extremely quickly. What sets WP Engine apart from other WooCommerce hosting providers is their 1-Click Store Creation, able to provide an instant store with a relevant theme.

Innovative ideas aside, they still have many classic web hosting features to help you run your store securely.

You’ll get threat blocking and security, SSL certificates, and either daily automatic backups or on-demand backups.

WP Engine offers a wide range of plans to ensure you stay within your budget – eCommerce Startup, eCommerce Professional, eCommerce Growth, eCommerce Scale, and eCommerce Custom. 

Kinsta

If you’re wondering just how fast your eCommerce store can load, Kinsta has your answer. This web hoster has gone the extra mile to speed up its WooCommerce web hosting capabilities.

Their impressive speed comes from having more server resources — their massive data center spans five continents, ensuring you’ll always have the right option for your website.

All of their plans automatically come with their free premium CDN, located in over two hundred cities to speed up your site further. Free migration is available if you want to switch from another hosting plan.

Their plans are varied depending on your experience level and size. You have the Starter, Pro, Business 1, Business 2, and Business 3. You can try out their free demo and still have a 30-day money-back guarantee once you pick a plan. 

Liquid Web

With a name like Liquid Web, you know this WooCommerce hosting service is going to be fast. Alongside dedicated servers, they also have some of the best customer service in the industry.

Running a website can be a daunting experience for the first-time business owner. They offer multiple ways of contacting them 24/7, such as their live chat feature, phone option, and helpdesk.

However, their WooCommerce hosting is intuitive enough that you’ll learn the ropes quickly. 

They’ve recently added useful tools such as Sales Performance Monitors, Plugin Performance Monitors, and several Performance Tests.

These allow you to study and respond to the stats of your site on an ongoing basis. Whether your loading times are starting to lag or your payment gateways aren’t functioning, you’ll know quickly.

Just how many plans can you choose from? LiquidWeb offers an impressive seven plans based on experience level and size – Starter, Starter+, Creator, Merchant, Standard, Growth, and Enterprise. Even better, any new order donates to the non-profit No Kid Hungry.

Comparison of the top 5 hosting platforms for WooCommerce

Each WooCommerce hosting provider comes with dozens of features for you to choose from. We’re going to compare each one so you can speed up your decision process. 

Key features and capabilities of each platform

BlueHost provides user-friendly and accessible WooCommerce hosting, already compatible with many eCommerce platforms such as osCommerce and ZenCart.

If you’re signing up with BlueHost for the first time, you get a free domain.

SiteGround has a dedicated server and many security features. It’s often more budget-friendly due to their ongoing discounts on all of their monthly plans. 

WP Engine is a great option for business owners with multiple sites or on a strict timeline.

Their WooCommerce plan automatically comes with three sites, while their 1-Click Store Creation makes it easy to start selling fast. 

Kinsta is one of the fastest web hosters around thanks to its massive data centers and dozens of locations. They offer an additional CDN with all their plans to speed things up further. 

Liquid Web offers the widest range of plans on top of robust performance monitoring tools.

Their customer service is also particularly attentive, one of the best WooCommerce hosting features for beginning store owners. 

Pros and cons of each platform

BlueHost offers solid WooCommerce hosting for beginners with well-rounded features, affordable prices, and a free domain for first-time buyers.

You’ll get access to essentials such as SSL certificates, eCommerce platform integrations, and good speed.

However, they’re still not the fastest web host around, which may be a problem for high-traffic businesses or business owners who want to continue scaling.

SiteGround is a budget-friendly option with security features such as a web application firewall (WAF) and anti-bot systems.

They also have ongoing discounts that slash their monthly plans significantly. Their shared hosting features can still be a little slow and you need to be mindful of your plans concerning data space.

WP Engine is already in WordPress, so you can keep your store in one convenient place. You get access to automatic security updates as well as the ability to choose your favorite WooCommerce plugin.

Their customer service may be a little slow to respond, so this may be a better option for experienced business owners.

Kinsta is a lightning-fast premium web hosting option with multiple server locations around the world. They cost a lot as a result, so keep this in mind if you’re on a tight budget.

They also don’t have the widest variety of plans, but you still get a 30-day money-back guarantee if you’re dissatisfied. 

Liquid Web provides useful performance monitoring tools to give you consistent control over your shop functions.

You’ll also have around-the-clock customer service to ensure your experience is a positive one. While a little expensive, they’re a great pick for business owners of different experience levels.

Pricing plans and costs for each platform

BlueHost offers just two plans for WooCommerce – Online Store and Online Store + Marketplace. The former is $29.95/mo and the latter is $49.95/mo.

You can get a discount depending on whether you pay monthly or yearly. First-time buyers get a free domain.

SiteGround offers three plans – StartUp, GrowBig, and GoGeek.

The first is $14.99/mo, the second is $24.99/mo, and the third is $39.99/mo. They sometimes have discounts that slash the price in half or even more. 

WP Engine technically has one plan – their eCommerce Solutions For Woo. This plan separates into several sub-plans including eCommerce Startup, eCommerce Professional, eCommerce Growth, eCommerce Scale, and eCommerce Custom. They range from $28.80 to $280/mo (not including the Custom). 

Kinsta has five plans – Starter, Pro, Business 1, Business 2, and Business 3. This price ranges from $35/mo to $340/mo with discounts for yearly purchases. You also get the first two months free and a 30-day money back guarantee.

Liquid Web has seven plans – Starter, Starter+, Creator, Merchant, Standard, Growth, and Enterprise. The price range is broad, starting from $19/mo to $449.55/mo.

Customer support and user experience

BlueHost has excellent customer service. They provide 24/7 via phone or chat. They generally have positive ratings from current and past customers. 

SiteGround has customer service frequently referred to as timely and dependable. They provide 24/7 support via phone, chat, or support tickets. 

WP Engine has a reputation for providing helpful and friendly customer service. You can contact them via chat, phone, or a contact form. 

Kinsta has consistently high ratings for both technical and general customer support. You can contact them through phone, email, or a support ticket. 

Liquid Web is well-known for providing flexible methods of contact with 24/7 phone, email, and live chat. Many customers enjoy how easy it is to get live support over the phone.

How to pick the right hosting platform for your business

Now that you’ve got a good idea as to which WooCommerce hosting plan can benefit your online business, which is best for you?

Every business has unique challenges, so we’ll show you how to find the best WooCommerce hosting for your needs. 

Identify your business needs and goals

Are you a beginner online store owner or do you have several years of experience? Perhaps you’re thinking of expanding your shop into several storefronts over the next few years.

Your current business needs and future goals need to match your web host. While you can always change web hosts later, it’s easier to find a more flexible one now. 

Determine the budget for your online store

This area is more straightforward, but you should still give it some thought. Your WooCommerce hosting provider should have flexible pricing plans so you can scale effectively.

We also recommend keeping an eye out for additional discounts, whether limited-time only or based on the subscription type. 

Evaluate the features and capabilities of each platform

While you just got done analyzing the best hosting providers, give yourself time to consider each platform’s capabilities.

Some details seem appealing at the moment, but may not be applicable to your business model.

For example, you may love the idea of a lightning-fast website with a private web host. If you’re a small business with low web traffic, this expense might not be worth it. 

Consider the user experience and customer support

Do you regularly need to check in with technical support or do you prefer to handle things yourself? Either way, we recommend picking a web host with a reputation for fast and reliable responses. 

You may be fine with live chat, while other business owners may prefer to speak over the phone.

Take advantage of free trials and demos

Many web hosts offer convenient free trials and demos to give you a taste of what’s to come. Even if you’re sure you want to pick a web host, try a demo just to be on the safe side. 

You may find out you don’t like the interface or that there are features you don’t actually need. 

WooCommerce hosting FAQs

What is managed WooCommerce hosting?

Managed WooCommerce hosting is a type of web hosting service that is specifically designed to optimize the performance and security of online stores built on the WooCommerce platform.

Managed WooCommerce hosting providers offer a range of services such as automatic updates, advanced security features, optimized server configurations, and expert support to ensure that online stores built on WooCommerce run smoothly and efficiently.

What is a managed WordPress site?

A managed WordPress site is a web hosting service that is specifically designed to optimize the performance and security of WordPress websites.

Managed WordPress hosting providers offer a range of services such as advanced security features, expert support, and automatic updates to ensure that WordPress sites run smoothly and efficiently.

Managed WordPress hosting providers typically handle tasks such as website backups, software updates, security monitoring, and site optimization, which allows website owners to focus on creating and publishing content.

All the WooCommerce hosting solutions featured in this post offer a managed WordPress site option.

Final thoughts

Choosing a great web host sets the stage for everything to come. You ensure you’ll be able to scale your business, protect your data, and deliver a consistently high customer service experience.

Our top recommendations for the best WooCommerce hosting providers are BlueHost, SiteGround, WP Engine, Kinsta, and Liquid Web.

They all provide a powerful foundation of security features, flexible pricing plans, and top-notch customer service for your WordPress site.

However, they also differ when it comes to budget, experience levels, and certain unique features (such as 1-Click Store Creation). 

Once you choose the most suitable platform, you’ll be able to put the majority of your energy where it needs to be – running a fantastic online store.

That’s where SkuVault comes in as well.

We can assist you in automating and streamlining your inventory management tasks, so you can focus on growing your business. Check out our features page or schedule a live demo today

Want to learn more about starting or scaling a successful eCommerce business?

Check out these related posts next:

• 9 Best WooCommerce Stock Management Software (2023)
• WooCommerce Inventory Management: Best Practices and Tips
• WooCommerce vs. Shopify: Which is Better For Your eCommerce Business?