Diving into Xero’s New Inventory Plus for Enhanced Ecommerce Accounting
We’re thrilled to review the launch of Xero's Inventory Plus platform, also referred to as “XIP”, an exciting addition to our toolkit for ecommerce accounting customers. As strong advocates for Xero, we've long valued its refreshing user experience and comprehensive accounting features. Up until now, we’ve used preferred inventory management solutions like Cin7 Core for managing our clients' ecommerce inventory needs, but the integration of Inventory Plus will offer us even more flexibility and power, all within the Xero ecosystem.
Why We’re Excited About Xero Inventory Plus
Inventory management is one of the most critical aspects of running an ecommerce business. Poor stock control can lead to overselling, stockouts, or too much capital being tied up in unsold inventory. While we’ve had success with third-party solutions, bringing inventory management fully into the Xero platform promises a more cohesive experience.
Inventory Plus looks to be designed with the needs of growing businesses in mind, allowing them to track their inventory more efficiently, automate key processes, and gain deeper insights into their product performance. The platform is built with Xero’s characteristic sleek, intuitive UX, making it easy for users at any experience level to navigate.
Inventory management systems are inherently robust. That complexity can make them harder to use and bad data results in incorrect financial statements. Xero’s ability to simplify the complex gives us hope there will be a better entry level system that is actually usable for an ecommerce business.
We have previously written about the importance of an inventory manager to successfully run an ecommerce business. Part of that need is the expertise in the required systems that a warehouse manager may not have. Perhaps Inventory Plus can bridge that gap.
Key Features of Inventory Plus
Inventory Plus isn’t just a simple add-on; it’s a comprehensive platform designed to meet the needs of modern ecommerce businesses. Here are some of the standout features that make us excited about this new launch:
Multi-Channel Syncing: One of the most critical features for ecommerce businesses is the ability to sync inventory across multiple platforms, such as Shopify and Amazon FBA. That covers about 80% of our ecommerce customer base. Inventory Plus allows for real-time syncing, ensuring that businesses have an accurate view of their stock levels and sales orders across every sales channel. This significantly reduces the risk of manual errors and allows for scalability, which is a must for any ecommerce business.
Efficient Inventory Management: Tracking inventory across multiple locations can be challenging. Inventory Plus allows businesses to easily track stock in multiple warehouses or retail locations, transfer stock between locations, and generate purchase orders. This not only reduces the risk of stockouts but also helps businesses optimize inventory across different locations. For growing ecommerce businesses, this feature will help improve fulfillment processes and reduce stock imbalances.
Real-Time Insights: One of the greatest benefits of Xero is its real-time financial data, and Inventory Plus extends that to inventory management. With real-time insights into top-selling products, inventory valuation, and gross profit margins, businesses can make informed decisions quickly. Additionally, users can view orders received, track amounts owed to suppliers, and get a clear picture of outstanding sales—all from one dashboard.
User-Friendly Interface: Xero is renowned for its intuitive design and clean interface, and Inventory Plus delivers the same user-friendly experience. Even if a business has limited technical expertise, the guided onboarding process will ensure that they can get up and running quickly. We recommend working with an accounting and bookkeeping partner when implementing even though the onboarding experience is guided.
Automated Processes: One of the biggest pain points for businesses managing inventory is the manual labor required to track stock, reorder products, and calculate costs. Inventory Plus automates many of these processes, making it easier to manage cost of goods sold (COGS), set reorder alerts, and ensure that stock levels are maintained. This feature is particularly beneficial for growing businesses that may not have dedicated staff to manage their inventory manually.
Shipping Integration: The platform also integrates a shipping partner, allowing businesses to access shipping rates, create packing lists, and manage returns, all in one place. This streamlines the fulfillment process across all sales channels, ensuring that customers receive their orders on time, and businesses can efficiently manage order fulfillment. It will be interesting to see how competitive the rates will be.
Pricing: Considering all of the common inventory management systems have increased their prices significantly over the years, Inventory Plus is a steal at $39/month! The platform can handle up to 1,500 orders per month, which may not be enough for larger ecommerce customers. We anticipate Xero will add plans that will support more capacity over time so if it’s not quite right for you now, it may be in the future.
Tax Compliance Integration: Managing sales tax can be a headache, especially for ecommerce businesses that sell in multiple states or countries. Inventory Plus integrates with Avalara, simplifying sales tax compliance. This feature helps businesses ensure they are collecting and remitting the correct taxes, reducing the risk of compliance issues.
Why This Matters for Ecommerce Accounting and Bookkeeping
At the heart of this release is the potential to greatly improve ecommerce bookkeeping and inventory management accounting accessibility for small businesses. By integrating inventory management directly into Xero, businesses can now get a clearer, more accurate picture of their financial health. This means less time spent reconciling separate systems, fewer errors, and more strategic decision-making.
For businesses relying on third-party solutions for their inventory, Inventory Plus represents an opportunity to streamline operations and bring everything under one roof. By consolidating inventory management with accounting, businesses can improve efficiency, reduce errors, and gain better insights into both their financial and operational performance.
Final Thoughts
We’re incredibly excited about Inventory Plus and the value it will bring to our ecommerce clients. Since our company's inception, Xero has been our preferred platform for its powerful accounting capabilities and intuitive user experience. Now, with the addition of a robust inventory management solution, we’re looking forward to helping our clients further streamline their ecommerce accounting processes by transitioning them from other accounting platforms into Xero’s ecosystem.
For businesses that are already using Xero, Inventory Plus represents an exciting opportunity to bring inventory management into the fold, making operations more efficient and providing deeper insights into inventory performance. If you’re interested in learning more about how Inventory Plus can benefit your ecommerce business, we’d love to discuss it further!
For more details, you can explore Inventory Plus here.
Stay tuned as we continue to explore the platform and share our findings!
