Whether you sell on Shopify, Amazon, or operate as an omnichannel consumer brand, running a small and emerging consumer packaged goods (CPG) business in the U.S. comes with unique challenges. You’re likely juggling multiple responsibilities: managing sales across marketplaces and DTC websites, tracking inventory at home with plans to scale to one or more warehouses or 3PL partners, keeping up with seasonal demand, and doing it all within tight budgets.
Why Choosing the Right Inventory Management System Matters
Whether you sell on Shopify, Amazon, or operate as an omnichannel consumer brand, running a small and emerging consumer packaged goods (CPG) business in the U.S. comes with unique challenges. You’re likely juggling multiple responsibilities: managing sales across marketplaces and DTC websites, tracking inventory at home with plans to scale to one or more warehouses or 3PL partners, keeping up with seasonal demand, and doing it all within tight budgets.
Without the right inventory management system (IMS), you could face:
- Stockouts and missed sales opportunities
- Overselling, which can harm your brand’s credibility
- Manual errors in spreadsheets and calculations
- Mismanaged cash flow, making growth financing difficultWasted time and frustration trying to manage inventory manually
- Messy books with large inventory and COGS adjustments, complicating equity raises or borrowing
A modern IMS serves as a co-pilot for operations. For emerging U.S. consumer packaged goods (CPG) brands, it should enable you to:
- Track every SKU in real time across warehouses, online marketplaces, and DTC channels
- Use embedded payments to save time, reduce costs, and speed up month-end closesAutomate critical calculations, including COGS, landed costs, and inventory valuation
- Sync inventory automatically with platforms like Shopify
- Integrate seamlessly with warehouse management systems and accounting platforms
- Leverage predictive insights for smarter, faster decision-making
- Maintain competitive pricing that won’t strain your budget as you grow
A robust IMS not only reduces errors and saves hours each week but also allows your team to focus on growth, retail execution, and strengthening customer relationships.
Understanding Inventory Management System Costs: Upfront, Monthly, and Hidden Fees
For emerging CPG and ecommerce brands, cost efficiency is critical. The right inventory management system (IMS) allows you to scale without encountering sudden or hidden expenses. Here’s what to watch for:
Upfront Costs
- Implementation and onboarding fees: Many vendors charge hundreds or even thousands of dollars for setup, training, and system configuration.
- Workflow customization: Some IMS platforms require paid customization for product catalogs, multi-warehouse setups, or integration with sales channels.
- Training time: Even the most intuitive IMS will require your team to get up to speed — a hidden cost that impacts productivity.
Monthly Costs
- Subscription fee: Most IMS packages charge a monthly fee, with tiered plans depending on the size and complexity of your business. Watch for hidden fee escalators in the fine print.
Hidden Costs
- SKU count or order volume fees: Some IMS vendors increase pricing automatically as your SKU count or sales order volume grows. Look for solutions that don’t penalize expansion.
- Add-ons and analytics: Advanced reporting, AI demand forecasting, or warehouse integrations may come with extra monthly costs.
- Accounting integration fees: Connecting to platforms like QuickBooks Online, NetSuite, or Finaloop can sometimes require additional fees.
- User fees: Some vendors charge more as you add team members.
- Maintenance or premium support: Extra costs may apply for software updates, system maintenance, or priority support.
Pro tip: For emerging CPG and ecommerce brands, choose an IMS with free plans and no monthly fee escalators. Predictable, transparent pricing lets you scale confidently while minimizing financial risk.
COGS, Landed Costs, Inventory Valuation, and Automation
For small and emerging CPG brands, manually tracking cost of goods sold (COGS), landed costs, and inventory valuation in spreadsheets can quickly become overwhelming. Mistakes in these calculations can lead to mispriced products, inaccurate margins, and unreliable financial reporting — issues that can impact inventory and cash flow planning, not to mention investor confidence. A modern inventory management system should simplify these processes by handling:
COGS and Margins at SKU, Order, and Company LevelAutomatically calculate product costs and margins for each SKU, every order, and across the entire company. This ensures accurate pricing and data-driven decisions for profitability.
Landed Costs, Including Freight, Duties, and CustomsIncorporate all associated fees into your product costs automatically, so you always know the full cost of goods delivered and can price products confidently.
Inventory Valuation Across Channels and WarehousesGet a real-time view of stock value across multiple warehouses, fulfillment partners, and marketplaces, keeping financial reporting precise and up to date.
Sync Landed Costs to Sales ChannelsBest-in-class IMS solutions push accurate landed costs back to platforms like Shopify, ensuring consistent margin visibility across your sales channels.
Streamlining Operations and Saving Time
Repetitive inventory and finance tasks can overwhelm small teams. A capable IMS automates key operational processes:
- Purchase Orders and Receiving: Automatically create, track, and update POs, preventing delays, duplicate orders, and stock gaps.
- Vendor Invoice Reconciliation: Match invoices with purchase orders and shipments instantly, eliminating hours of manual work.
- Shipment and PO Visibility: Gain real-time updates across warehouses and sales channels, reducing errors and keeping fulfillment on schedule.
- Predictive Stock Management: Use historical sales, seasonal trends, and AI insights to anticipate demand, avoiding overstock or stockouts.
By automating these critical workflows, your team can cut down manual labor, reduce costly errors, and reclaim hours every week. This allows focus on high-value activities like marketing, retail execution, and product launches while ensuring financial reports are accurate, helping your business scale confidently and maintain investor trust.
Integrations That Make or Break Your Inventory Management System
An inventory management system (IMS) isn’t just another tool, it’s the backbone that links all aspects of your operations. For small and emerging CPG brands, whether selling on Shopify, Amazon, or other marketplaces, the right integrations can streamline workflows, minimize errors, and help your business scale efficiently.
These are the essential Integrations for small and emerging CPG brands:
Sales ChannelsYour IMS should seamlessly connect with Shopify, Amazon, Walmart, TikTok, and direct-to-consumer (DTC) websites. This includes syncing product catalogs, SKUs (including bundles and kits), sales orders, inventory counts, and landed costs to maintain accurate, real-time data across platforms.
Warehouse Management Systems (WMS)Integrating with WMS solutions such as ShipBob, Stord, ShipMonk, ShipStation, and Extensiv enables brands to manage inventory across multiple locations without manual updates. Leading IMS platforms provide 50+ WMS integrations, allowing flexibility to work with almost any 3PL while keeping processes automated and efficient.
Accounting and ERP SystemsLinking your IMS with accounting platforms like QuickBooks Online, NetSuite, or Finaloop ensures precise financial tracking and reporting. Automated reconciliation, accurate books, and tax-ready data reduce manual work and provide confidence in your financials.
Embedded Payment SolutionsFor emerging brands, managing cash flow can be challenging. IMS platforms with embedded payments automate accounts payable (AP) and receivable (AR), streamline month-end closes, and improve cash flow predictability, so your team can focus on growth rather than chasing invoices.
By combining sales channel, warehouse, accounting, and payment integrations in a single system, small and emerging CPG brands can save significant time, prevent costly mistakes, and operate more efficiently, freeing up resources to grow their business.
Scalability & Flexibility
Your inventory management system should expand as your brand grows, adapting to increases in order volume, SKUs, and operational complexity. Key capabilities to look for include:
- Support for multiple warehouses and sales channels: Efficiently manage stock across your own warehouses, 3PL partners, and various online marketplaces without manual updates or duplicated effort.
- Capacity for unlimited SKUs, users, and orders: Make sure your IMS can handle product line expansion, team growth, and higher order volumes without requiring costly upgrades or causing slowdowns.
- Customizable workflows to replace spreadsheets: Automate repetitive tasks, tailor workflows to your brand’s operational needs, and eliminate time-consuming manual processes that can hold small teams back.
- Designed specifically for ecommerce and CPG brands: Avoid generic platforms that need expensive customization to meet the unique requirements of consumer packaged goods and online retail.
A scalable, flexible IMS ensures your system can support growth from a small startup to a larger, multi-channel business. Selecting the right platform early prevents operational bottlenecks, keeps inventory accurate, and guarantees smooth order fulfillment as your business expands.
Customer & Technical Support
For small and emerging ecommerce and CPG brands, having dependable, responsive support is crucial to avoid operational delays and costly mistakes. The right inventory management system should offer:
- US-based support for immediate issue resolution: Access an expert team in your time zone to quickly handle inventory discrepancies, integration challenges, or order fulfillment questions.
- Hands-on onboarding and training: Receive step-by-step guidance to set up your IMS, connect sales channels and warehouses, and ensure your team can confidently use every feature from day one.
- Rapid assistance during peak periods: Get quick support during high-demand times such as Prime Day, Black Friday, Cyber Monday, or seasonal product launches, when any downtime can directly affect revenue and customer experience.
Reliable customer support helps emerging CPG brands implement their IMS efficiently, minimize operational errors, and scale smoothly. It allows small teams to dedicate their time to growing the business, launching new products, and expanding sales channels, instead of troubleshooting software issues or waiting on slow, offshore support.
Key Features to Evaluate in an IMS for Emerging U.S. CPG Brands
When choosing an inventory management system for small and emerging consumer packaged goods brands, make sure it includes:
- Real-time inventory tracking: Tracking across all sales channels and supply chain visibility across warehouse locations.
- Automated financials: COGS, landed costs, and inventory valuation calculated accurately without manual effort.
- Embedded payments: Streamline accounts payable (AP) and accounts receivable (AR) automation directly in the IMS.
- Accounting integrations: Connect seamlessly with QuickBooks Online, NetSuite, or Finaloop.
- Sales channel connectivity: Sync with Shopify, Amazon, Walmart, TikTok, and DTC websites.
- Warehouse integrations: Support for multiple WMS platforms such as ShipBob, Stord, ShipMonk, ShipStation, and Extensiv.Transparent, predictable pricing: Look for free plans, no hidden fees, and complimentary onboarding.
- Scalable workflows: Flexible processes that grow as your team, SKUs, and order volume expand.
Responsive, U.S.-based support: Quick assistance for onboarding, troubleshooting, and peak season challenges.
Why Settle is the Best Inventory Management System for Small and Emerging U.S. eCommerce and CPG Brands
Settle is a unified, all-in-one IMS designed specifically for ecommerce, omnichannel, and consumer packaged goods brands. It combines inventory tracking, purchase order management, procurement automation, accounts payable, accounts receivable, and inventory financing into a single platform. For small, emerging CPG businesses in the U.S., this ensures operational and financial workflows stay smooth and efficient — without relying on spreadsheets or juggling multiple tools.
Key Features:
- Real-time inventory visibility across all channels and warehouse locations
- Automated purchase order management and procurement processes
- Embedded payments for accounts payable (AP) and accounts receivable (AR)
- Automated calculation of landed costs, COGS, and inventory valuation
- Sync inventory automatically with Shopify and other online marketplaces
- AI-driven demand forecasting and predictive analytics
- Dashboards for sales, inventory levels, and cash flow
- Integrations with Shopify, Amazon, Walmart, TikTok, and 70+ WMS platforms including ShipBob, Stord, ShipMonk, ShipStation, and Extensiv
Pricing & Access:
- Free Launch plan with no upfront risk or cost
- Paid plans start at $199/month with unlimited users and orders
- Complimentary white-glove onboarding and implementation
Why Small and Emerging Ecommerce and CPG Brands Love Settle:
- Save 10-40 hours per month and up to $200k annually through automation of operational and financial tasks
- Automate landed cost and COGS calculations
- Maintain real-time inventory visibility
- Replace spreadsheets with full automation and embedded payments
- Built specifically for ecommerce and CPG brands, no expensive customization required
- Extensive integrations with marketplaces, warehouses, and accounting systems
- US-based customer support for immediate assistance
- Optional built-in purchase order financing
Settle empowers small and emerging ecommerce and CPG businesses in the U.S. with operational clarity, financial confidence, and a platform that scales alongside growth. Teams can focus on selling, expanding retail presence, and building brand awareness — not on repetitive inventory and finance tasks.
Talk to a Settle product expert or get started for free today.
Frequently Asked Questions (FAQs)
How can I accurately estimate monthly IMS costs?Consider the number of users, order volume, add-ons, and any implementation or setup fees. Be aware of hidden charges as your business grows. Look for IMS platforms that offer a free plan, no onboarding fees, and predictable pricing without user or order volume escalators.
Which integrations are most important for small and emerging CPG brands?Critical integrations include sales channels, warehouse management systems (WMS), and accounting software to streamline multi-channel operations. Avoid IMS solutions that rely on third-party payment platforms (e.g., Stripe), as these can increase transaction fees, slow processing, and complicate troubleshooting. Prefer platforms with native embedded payments.
Why should COGS and landed costs be automated?Automation reduces manual errors, saves hours of work, and ensures accurate product costs and inventory valuations for investors or lenders. Large post-close adjustments (like freight or tariff updates) can undermine confidence in your financials if handled manually.
How can an IMS support seasonal promotions and peak sales periods?It can forecast demand using historical trends, allocate inventory efficiently, and automate procurement so your brand can meet high-volume periods like Black Friday, Prime Day, or holiday promotions without stress.
Which features are essential for multi-marketplace sellers like Amazon or Shopify?Look for real-time catalog, order, landed cost, and inventory synchronization, automated order processing, multi-location visibility, and predictive analytics.
Can an IMS improve cash flow management?Yes. Embedded AP/AR and automated invoicing free up working capital and reduce back-office workload. The best IMS platforms also provide integrated, founder-friendly financing to speed up cash conversion cycles.
What’s the difference between landed cost and COGS?
Landed Cost: The total unit cost including vendor price plus all fees to get the product to your warehouse (freight, duties, insurance, etc.). Shipping from your warehouse to the customer is not included. COGS: Direct costs of producing or purchasing goods sold within a specific period.
How do I assess IMS scalability?Evaluate support for multiple warehouses, sales channel integrations, WMS connections, and workflow automation that can grow with your business.
What level of support should I expect from an IMS provider?Top-tier vendors offer US-based support, white-glove onboarding, and fast troubleshooting, especially during high-demand periods.
Can an IMS grow with my business from startup to enterprise?Yes. Leading IMS platforms provide easy onboarding for small ecommerce brands and more advanced packages for scaling or enterprise-level CPG businesses.
How does an IMS boost operational efficiency?By automating repetitive tasks like purchase orders, vendor reconciliation, PO-to-invoice matching, stock tracking, and reporting, small teams save significant time and reduce errors.
Can an IMS help ensure regulatory compliance for CPG brands?Absolutely. Accurate inventory tracking, audit trails, and seamless accounting integration help small and emerging U.S. businesses stay compliant with regulations.
