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Automated Inventory Management System: An Ultimate Guide for 2022 and Beyond

  • James Wilson 
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Inventory management is an essential part of any eCommerce business. Especially if you are an eCommerce business owner juggling multiple sales channels, it can save you a lot of effort.

However, manually managing your inventories is also a recipe for error. Also, let’s not forget the time you have to spend and the painful process you have to go through to ensure everything is in place. 
That’s when automated inventory management comes into play. As a rising eCommerce trend in 2022, it saves months of effort and reduces chances of error to a bare minimum.

What is an Automated Inventory Management System?

An automated inventory management system uses powerful automation engines to optimize the inventory management process. It takes care of all the mundane processes and lets retailers and wholesalers manage their inventory in real-time. As a result, you can focus on tasks that matter without having to worry about managing inventories. 

With an inventory management system, you can automate everything, such as backorders, order invoicing, customer tagging, inventory counts, and dropshipping. Some inventory management systems also offer automated inventory control, purchase order generation, and reporting features.

How Does an Automated Inventory Management System Work?

Automated inventory management systems work the same way as modern retailers track & manage their inventories. The only difference is that while powerful automation tools take care of most processes, you only need to focus on essential aspects. An automated system also offers insights to help you make business-critical decisions on time. Manage your inventory more efficiently. [For example, if you are selling on both WooCommerce and Etsy integration, you should consider using WooCommerce Etsy integration tool to connect and manage them on one dashboard.

For example, if you’ve set an inventory management system for your eCommerce platform, the following things will happen:

  • The inventory management system will take care of profits and losses whenever you sell items. Hence, you longer have to spend hours on calculations.
  • If products are running low in your inventory, then the inventory management system will automatically inform you. 
  • The inventory management system will also offer insights into your profits, expenses, and sales forecasts based on the existing data. You can use these insights to strengthen your position in the market and maximize your earnings.

Why Should You Invest in an Automated Inventory Management System?

Many retailers out there are investing in automated inventory management systems. The compelling benefits they offer are the primary reason behind this rising interest. Here are a few ways an automated inventory management system helps eCommerce businesses:

  • An automated inventory management system can save you countless hours that you would spend manually updating your inventory.
  • With an automated inventory management system, you can have real-time visibility of your inventory levels and see what needs your attention.
  • Automated inventory management systems can help you ensure you don’t make the grave mistake of miscalculating your inventory levels and regretting it later.
  • Automated inventory systems can be a brilliant option, especially if you’re looking forward to scaling your business. By reducing time and eliminating error risks, these systems can help you focus on how to scale up your business operations.

What to Look For in an Ideal Automated Inventory Management System?

Following are the features you should look for if you want to choose the right automated inventory management system for your business:

Automatic Reordering

Automatic reordering is a must in an automated inventory system to ensure your inventory never runs out of supplies. Look for the inventory management system that has features like stock notifications so that you always remain on track.

Automatic Stock Transfer

It is an essential feature, mainly if your inventory is spread across multiple locations. It will ensure distributors can locate your stock where the demand emerges.

Inventory Alerts & Notifications

Inventory alerts will help you stay on track with the status of your inventory. With this feature, you can prevent issues like low inventory levels, shipping delays, and overstocks.

Ecommerce Integration

With this feature, you can integrate your inventory management system with powerful e-commerce management tools like POS and CRM systems. This way, you can track and manage your inventory more efficiently.

Automated Order Management

Automated order management will help take care of inventory issues at your end. With this feature, you can sort packages according to where they should be delivered and ensure they reach on time.

Analysis & Reports

It is one of the most underrated features of an automated inventory management system, as it will help you make better business decisions. An ideal inventory management system should offer the option of general real-time data.

Automated Inventry Management System

Three Trends to Watch an Automated Inventory Management System at Present

Besides these features, here are some latest technology trends you should look for in an ideal inventory management system:

Data Analytics

Data analytics can be a gold mine of actionable information. Especially in the present time when businesses are heavily relying on data and analytics to make intelligent decisions, data can help you drive insights that can further enhance your sales. So, look for data analytics to help you get a perspective of things that you would have missed otherwise. 

Automated machinery 

Automated machinery can radically improve how we approach inventory management on the ground level, and it can help you efficiently navigate warehouse processes and save you time and effort. So, make sure your automated inventory management system supports automated machinery.


If you want to make the most of your automated inventory system, you must ensure you have a fast, reliable connection. Look for the latest connectivity technology like 5G, as they can help you gather data better and faster than ever before.

In a Nutshell

We’re living in a time when there’s cut-throat competition in the market. Millions of choices are available to customers, and eCommerce business owners face peer pressure to deliver faster. An automated inventory management system can be a lifesaver in such a situation. Just make sure you’re not choosing it in haste. Your inventory management system should be able to meet your business needs. So, choose carefully.

Is there anything about an inventory management system that I can help you with? Please let me know in the comments below. I would be happy to guide you through.