Multi-channel Inventory Management

Best Practices for Multi-channel Inventory Management 

E-commerce has certainly changed over the years, but some of the core principles remain intact. For instance, the optimisation of inventory management for business operations to run smoothly holds as true today as it was decades ago. 

New-age e-commerce businesses are now required to manage inventory across sales channels to maintain a competitive edge. Be it your own website or the myriad e-commerce marketplaces, streamlining multichannel inventory management is a must.  

In this blog, we will discuss the best practices for multichannel inventory management. 

What is multichannel inventory management? 

Multichannel e-commerce, as the name suggests, is the practice of selling your products on different e-commerce sales channels. Examples include your own website, mobile apps, social media, social commerce platforms, e-commerce marketplaces, and more. There are innate advantages to each platform, and diversifying your presence across channels maximises the chance of success.   

Pursuing this approach, you get to access a wider audience and you can tap the opportunity to generate more revenue. However, managing inventory across multiple channels can be quite challenging.  

Managing your inventory is tiresome when you are operating with one sales channel. It is not something ridiculously complicated, of course. Instead, that you have to keep updating it again and again after every single order can be tiresome. When you adopt a multichannel strategy, you also multiply the difficulties. Many businesses struggle with inventory management, and this can result in missed sales opportunities. 

The key challenges include stock management, order processing, and order fulfilment. When products are sold across multiple channels, inventory data becomes fragmented, and you must be able to access accurate and up-to-date information to prevent stock outs or overselling. 

Best Practice 1: Centralised inventory management 

A centralised inventory management system uses a single source for inventory data. No matter what the sales channel is, the data comes and gets recorded on one common platform. 

This helps in consolidating inventory data from different sales channels and in providing real-time visibility on inventory levels, orders, and fulfilment. You can easily manage inventory across multiple channels and reduce the risk of stock outs. 


  1. Real-time visibility into inventory levels, orders, and fulfilment 
  1. Reduced risk of overselling and stock outs 
  1. Increased efficiency and accuracy of order fulfilment 
  1. Improved inventory forecasting and planning 

Some of the most popular centralised inventory management software solutions include Zoho Inventory and Ordazzle. 

Best Practice 2: Accurate and real-time inventory tracking 

This is crucial if you want to scale up and service a larger volume of orders. You must clearly understand your inventory levels, which requires real-time data from all sales channels. Inventory tracking software solutions can provide real-time data on inventory levels, orders, and fulfilment. 


  1. Reduced risk of overselling and stock outs 
  1. Improved inventory forecasting and planning 
  1. Increased efficiency and accuracy of order fulfilment 
  1. Improved customer satisfaction

Best Practice 3: Forecasting and planning 

Forecasting and planning are essential for the success of multichannel inventory management. How else will you ensure that you have the right products in stock at the right time?  

You need to have accurate data on sales trends, seasonality, and demand fluctuations. Say, the demand for your tableware is higher on Amazon, but your home linens are more popular on your own website. Your multichannel inventory management platform will identify these demand trends. You can predict demand, plan inventory purchases, and manage inventory levels more effectively. 

Let’s look at some benefits of forecasting and planning. 

  1. Reduced risk of overselling and stock outs 
  1. Increased efficiency of order fulfilment 
  1. Improved inventory management and accuracy 
  1. Increased profitability

Best Practice 4: Integration with sales channels 

With integration software solutions, you can streamline inventory management and reduce the risk of overselling. Integration with sales channels also facilitates access to real-time data on sales and inventory levels, allowing you to make informed decisions and optimise your inventory management processes. 

Let’s see why it is so important to integrate inventory management with sales channels. 

  1. Real-time synchronisation of inventory data across all sales channels 
  1. Streamlined inventory management and order fulfilment processes 
  1. Reduced risk of overselling and stock outs 
  1. Increased efficiency and accuracy of order fulfilment

Best Practice 5: Efficient order fulfilment 

This is critical if you want to maintain customer satisfaction and loyalty. You must be able to fulfil orders accurately and in a timely manner, regardless of the sales channel. With order fulfilment software solutions, you can streamline order processing, automate fulfilment, and ensure timely delivery. 

Some benefits of efficient order fulfilment are: 

  1. Reduced shipping and handling costs 
  1. Increased customer satisfaction and loyalty 
  1. Improved accuracy and speed of order fulfilment 

If you want to include an order fulfilment software solution in your multichannel inventory management system, you can check out Ordazzle to get started.

Best Practice 6: Data analysis and reporting 

Data analysis and reporting are crucial to gain insights into your inventory management processes and make informed decisions. You can track sales, inventory levels, and order fulfilment data across all sales channels. 


  1. Increased profitability 
  1. Improved inventory forecasting and planning 
  1. Reduced risk of overselling and stock outs


Multichannel inventory management is essential if you operate on multiple platforms. With the right tools and practices, you can streamline your inventory management processes, reduce the risk of stock outs and overselling, and improve customer satisfaction and loyalty. You can opt for a full-service platform like Ordazzle that can handle your entire e-commerce operations.