January 17, 2022

What Is Multichannel Inventory Management?

We all know that successful businesses are the ones that can offer their customers a great shopping experience. But what many business owners don't realize is that having an efficient multichannel inventory management system is key to achieving this goal. So, what is multichannel inventory management and how can it help your business? Keep reading to find out!

What is Multichannel Inventory Management?

Multichannel inventory management is a process that allows businesses to manage and track inventory across multiple sales channels. This can include brick-and-mortar stores, ecommerce storefronts, and other sales platforms.

Multichannel inventory management allows businesses to keep track of what's being sold in each location, as well as how much stock is available in each location. This can help businesses make better decisions about where to allocate products and manage stock levels more efficiently. It can also help businesses identify underperforming sales channels and make changes to improve performance.

What Are The Challenges Faced In Multichannel Inventory Management?

Here are among the most prevalent issues that multichannel eCommerce businesses face:

Too much inventory

This problem depletes financial resources and might restrict future investment opportunities since unmoving inventory increases storage fees and insurance rates. This additional overhead will eventually lead to a cash flow constraint, and it is never the intention.

Stocking the wrong items

Stocking the wrong items at numerous warehouses has a financial and storage space effect. The less open storage you have to fulfill, the more difficult it is to restock popular things. Limited space makes meeting customer requests much more complex, resulting in angry customers who may not return to your store.

Selling through various channels

When a company sells through various channels, it risks accepting money for things that aren't accessible right away. Overselling is a significant issue since it frustrates consumers; canceling an order may spoil their experience, harm your reputation, and raise the likelihood that they will never come to your online business.

Increasing Sales channels

Increasing your sales channels usually necessitates expanding your fulfillment footprint to keep goods across several warehouses, allowing you to split your stock over numerous locations. While this increases fulfillment coverage, it also introduces new problems, specifically for online sellers who depend on FBA.

What Are Factors To Consider When Looking For A Multichannel Fulfillment Software?

When choosing the greatest — and most dependable — multichannel inventory software, there are several alternatives to consider. Selecting the correct software necessitates a clear understanding of your business objectives, as well as the size of your company and the warehouses you have.

SKU Flexibility

Individual items, essential components, product variants, and, of course, bundles and kits may all be tracked separately with the finest software. This SKU flexibility gives you instant access to your item data. It allows you to closely monitor your inventory among all channels so you can restock on time and keep track of best-selling items.

Barcoding and Scanning

Barcoding and scanning make things a lot easier to acquire real-time data from your numerous warehouse sites and guarantee that you're dealing with up-to-date stock information.

Inventory Statistics

The inventory statistics you have access to within your program will also impact the tool's productivity and effectiveness. That's why it's critical to conduct your homework on the software's reports and to prioritize in-depth access to the information you require. 


With a multichannel inventory management system, you can use data to make better decisions about your sales and customer service. This will help you grow your business by giving customers the best shopping experience possible. If you're looking for a more efficient way to manage your products across channels then click below! We build the tools 3PLs use to not only compete but win new business with their clients.

Our newsletter

Get great curated articles every week.

Combine sections from Ollie's vast component library and create beautiful, detailed pages.