Manual data and spreadsheet data entry might help you manage Magento inventory when you are starting. But, you will soon realize that to meet the demands of the omnichannel retail business, there is more to do. According to a report by Shopify in 2022, 53% of the brands invest in tools that enable multichannel retail. Therefore, if you are also looking to grow your online business, selecting the Magento inventory management tool is the right choice. 

Now, you must be wondering where to begin. 

Here is our guide to explore Magento website development and learn how Magento inventory management works and what tools can help you improve its features. In this blog, we will cover the 

  • Overview of Magento 2 Inventory Management 
  • Features of Magento 2 Inventory Management 
  • Benefits of Magento 2 Inventory Management
  • Magento 2 Inventory Management Categories 
  • Top Magento 2 Inventory Management Tools 
  • Magento 2 Inventory Management Practices  
  • Final Thoughts 

Before we start, we will have a walk-through of what is new with Magento 2 and focus on its features and benefits to the online business industry. 

What is Magento 2? 

Magento, renamed Adobe Commerce, is an e-commerce platform known for its scalability, personalization, and other advanced e-commerce features. For a seamless experience, integrate the platform with content and marketing solutions. Magento 1 has powerful features but has performance issues like a learning curve and long page loading time that make it hard for non-technical users to navigate and modify the platform. 

Therefore, when Magento 2 came in 2015, it improved user experience and performance through features-

features of Magento 2 

  • Fast loading time 

The page loading speed is 50% faster as compared to Magento 1. The platform also has short add-to-cart server response times and can process 40% more orders per hour. 

  • User-friendly dashboard 

The Magento 2 admin panel is easy to navigate and intuitive. 

  • Payment gateway 

The Magento 2 platform supports payment gateways like Braintree, Paypal, and others without additional integrations. 

  • Streamline checkout process  

The checkout process of Magneto 1 has six steps on separate pages, reduced in Magento 2 for accelerated checkouts. 

Magento 2 inventory management is an automated system for managing complex product lines, sales, or selling locations. The platform has advanced flexible features that help you track inventory, monitor warehouse and store, and restock products before they run out. 

Features of Magento 2 Inventory Management 

Features of Magento 2 Inventory Management

 The Magento 2 inventory management is responsive and advanced compared to the previous version. The platform automates business processes, sends notifications, and organizes information with more control over daily operations. Some of the key features are- 

1. Multisource Inventory Functionality 

  • Magento 2 inventory management helps you manage stock from different locations like stores, warehouses, distribution centers, and suppliers. 
  • You can easily track the stock and product quantities at every source. The details provide visibility in one click for fast and informed business decisions. 
  • Magento 2 inventory management also provides intelligent allocation of inventory. For instance- when you order a product, the system detects the shipping address and selects the nearby store with available stock. 

If there are several distribution centers, then this feature can help save shipping costs and time.  

2. Stock Management 

  • Stock management is one of the key features of Magento 2 inventory management that has to be updated automatically in real time. Get a view of all the SKUs that allow you to predict and avoid stockout. Also, you can act on inventory issues when you see them.  
  • You can alert customers if the product they want is not available. It is an opportunity to turn a bad situation like a delay in product shipping into a chance to impress the customers with a proactive service. 
  • The system provides multiple options such as easy updates on inventory, stock availability, and granular reporting. 

3. Low Stock Notification 

  • Low stock notification is one of the most significant features of Magento 2 inventory management. Set thresholds for stock level and set up a system to send triggers to reorder reports when inventory drops before the limit. 
  • The low-stock notifications are used during marketing and sales campaigns and when there is a high demand for certain products like sunscreen in the summer or cold creams in the winter. 
  • As a business owner, you can keep up with seasonal surges without any stress to the daily business operations. 

4. Pre-order and Back Order 

  • Magento 2 inventory management provides built-in support to manage pre-orders and back-orders. The backorders let the customers reserve out-of-products to stay on top when new inventory comes in. 
  • Backorders also show your business’s commitment to customer service and willingness to accommodate their requirements during product shortages. They will return it for future purchases and recommend it to others. 
  • Magento 2 inventory management supports pre-orders for products and services before their release. It generates excitement and demand for new items while the users streamline the ordering process. 

5. ERP Integration 

  • Magento 2 inventory management can integrate with the Enterprise Resource Planning Systems (ERPs) )to help you synchronize your data with business functions such as finance, accounting, customer relationship, and supply chain management. 
  • Rather than ERP integration, Magento 2 inventory management is helpful to work with a range of extensions with additional features. 

Want to streamline Magento 2 inventory management? Talk to the experts at Indglobal Digital Private Limited, the leading Magento website development company in Bangalore where the Magento website developers help you in every possible way to help you develop the website according to your business needs. 

Benefits of Magento 2 Inventory Management

Benefits of Magento 2 Inventory Management

Magento 2 inventory management helps online stores manage their product orders effectively so that they can focus on other essential business operations. Here are the top benefits of Magento 2 inventory management that let business organizations get the desired success. 

1. Grow Your Business Firm 

Magento 2 inventory management helps your business stay on top of merchandise tiers even if you have complex product warehouses or stores in multiple locations. You can personalize the business system to automate tasks such as ordering products or messaging customers. It makes it easier to build up the online store and manage its efficiency by delivering top-notch services to the people. 

2. Improves Customer Experience 

Magento 2 inventory management lets you fill orders to help the customers receive the products on time. You can keep the customers updated about the product availability to request pre-orders. It stimulates customer satisfaction and fosters faithfulness. 

3. Optimize Your Inventory

The real-time updates about stock prevent oversight and eliminate the risk of order cancellations to improve the customer shopping experience. You can even avoid excess inventory and reduce storage costs to optimize inventory management. 

4. Make Business Decisions 

Magento 2 inventory management offers valuable data on how product demand changes over time. It is easy to predict what products can be sold finely to get profits and help you adjust the orders accordingly. 

Magento 2 Inventory Management Categories 

The Magento 2 inventory management system has features available for all business types of different sizes. It automatically tracks the stock level of products, product variations, and their locations. 

Some of the Magento 2 inventory management categories are- 

  • Multi-source inventory: For online business stores with multiple locations or warehouses. 


  • Single warehouse management: For small online stores that operate from a single location.  


  • Backorder and pre-order: For upcoming or out-of-stock products that are temporarily unavailable. 


  • Configurable product inventory: For product differentiation such as color or size. 


  • ERP integration: For an integrated view of all the essential business operations like supply chain, accounting, customer management, and inventory. 


  • Bundle product inventory: For products kept together and sold at one purchase.  

Top Magento 2 Inventory Management Tools 

Getting a Magento inventory management solution that works well with Magneto’s module can be challenging. Here are six top tools to integrate with Magento and improve the inventory management functionalities. 

  • Magento Inventory Management by Magestore 

Magento Inventory Management by Magestore is a Point of Sale or POS software with useful inventory management features. The software streamlines multichannel retail for Magento business owners with barcode management, control features, and stock trading. 


  • Order support for purchase. 
  • Barcode scanning for inventory management. 
  • Sync of location inventory and real-time multichannel. 


Available on Request 

  • Advanced Inventory by Wyomind 

Advanced Inventory by Wyomind is an inventory management tool that enhances Magento’s default functionalities. It is an extension that allows you to configure automatic and manual dispatch of products, and manage drop-ship and front-end display of different sales points. 


  • Automate order assignment. 
  • Multichannel stock management. 
  • Control of Warehouse and POS access. 


$249 for Magento OS 

$345 for Adobe Commerce

  • Multi Warehouse Inventory by Amasty 

Multi Warehouse Inventory by Amasty is a Magento 2 inventory management tool that simplifies the inventory management for a Magento store. It allows you to add inventory to the warehouse, configure customized source selection, and track stock levels across different physical locations. 

Features –

  • Automatic selection of source. 
  • Custom shipping prices. 
  • One-click shipment process. 


$349 for the first year of Magento OS

  • Brightpearl by Sage 

Brightpearl by Sage is a Magento Enterprise Resource System that provides advanced features for the Magento e-commerce platform. The tool supports data-driven inventory and provides time-saving automation for the reordering process. 


  • Multichannel inventory management. 
  • Real-time inventory reconciliation. 
  • Great forecasting features. 


Available on request 

  • Multi Warehouse Inventory by Aitoc 

Multi Warehouse Inventory by Aitoc is a tool to add exclusive features to the Magento 2 inventory management like assigning products to suppliers and creating multiple stores. It is a simple and useful Magento 2 extension to streamline ordering from third-party suppliers. 



  • Stock division by customer groups and store view. 
  • Unlimited management of a warehouse. 
  • Automatic e-mail notification. 


$299 for Magento OS with lifetime free updates

  • SkuNexus 

SkuNexus is an all-in-one system that ranges from real-time inventory to in-store fulfillment as well as multi-location management. It integrates directly with Magento, among 150 other e-commerce platforms and shipping carriers.


  • Inventory and stock replenishment forecasting reports. 
  • Automated fulfillment by customized workflows. 
  • Cross-channel order management. 


Starts at $299 per month

Final Thoughts 

Adequate inventory management techniques help the business foresee future sales, keep it profitable, and reduce operating costs. Also, it ensures that the business organization does not tie up the capital in dead stock. Around 91% of US shoppers focus more on product availability and delay. Therefore, having a reliable Magento inventory management tool will help you overcome these issues and provide a better customer experience by assuring stock of products. 

With inventory and stock management, focus on developing a Magento business store that is secure and loads fast. For this, partner with a Magento development company to configure your business store according to your needs. 

Indglobal Digital Private Limited is an experienced Magento development company in Bangalore where Magento web developers work with e-commerce business stores of every size to develop easy-to-use websites for the owners and their customers. 

The Magento web developers at Indglobal help you optimize the Magento 2 inventory management system and provide custom UI/UX design, salesforce integration, search engine optimization, and payment integration. We can help you build your Magento website from scratch by working closely with your team and meeting their needs. 

Contact us and browse our plans today to get started.

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