Here’s what you need to know

• Manual ledgers and spreadsheets get you started for free. A notebook works fine for 50 SKUs or less, and Google Sheets can handle small to medium inventories with some basic formulas, though performance and data management become more challenging as you scale.
• Regular small counts work better than one big annual inventory.
• Phone barcode scanners save tons of time. Print some basic barcodes and use a free scanner app instead of typing everything manually.
• Databases make sense once you outgrow spreadsheets. You can build your own inventory tracking app with tools like Bubble.

Poor inventory tracking drains cash from your business. Stockouts mean lost sales. Overstocking ties up capital you need elsewhere. Manual counts eat up hours that could go toward growing revenue.

You need a tracking system, but enterprise resource planning (ERP) software often costs thousands per month — more than many small businesses spend on operations. The good news: you have options that start free and scale with your business.

This guide covers nine methods to keep track of inventory, from simple notebooks to AI-powered apps. You'll learn what works at each stage, when to upgrade, and how to build exactly what you need without breaking your budget.

Compare all methods at a glance

Method 1: Record stock in a simple manual ledger

A pocket-sized notebook and pen give you zero-cost inventory control when you're carrying fewer than 50 SKUs. 

The key is recording every movement the same way, every time.

How to implement manual ledgers

Start with a lined notebook or printed log. Dedicate one page per SKU and create five columns: “Item/SKU”, “Quantity in”, “Quantity out”, “Date”, and “Running balance.” Here's what it looks like:

Each time stock moves, add one line. There's no software cost and no learning curve, which makes this perfect when every dollar counts. That said, paper logs work best as a starting point. Digital tracking methods generally prove more cost-effective once you factor in total expenses and efficiency as your business grows.

Method 2: Spreadsheet template

Spreadsheets give you the fastest, cheapest way to upgrade from pen-and-paper tracking.

How to implement spreadsheet-based tracking

Start by creating two tabs. The first tab is your master list with columns for SKU, description, on-hand quantity, safety stock, cost, and supplier. The second tab logs every movement: date, SKU, quantity in or out, and a running balance that references the master list. Keep data entry simple with one row per transaction and one source of truth for quantities.

Next, let the spreadsheet handle the calculations:

You can drop these formulas into hidden columns if you prefer clean tables over visible calculations. Then add conditional formatting so any item where the on-hand quantity falls to or below safety stock lights up red.

Method 3: FIFO labeling with colored stickers

First In, First Out (FIFO) prevents product spoilage and waste with nothing more than a $10 pack of colored stickers and five minutes of training.

How to implement FIFO

Assign one color per week or month: January gets red dots, February gets blue, March gets green. Your staff can spot older stock from across the room and pick accordingly. For perishables with tight expiration windows, switch to daily colors or clear date labels for more precision.

The workflow takes seconds to learn but requires consistency to work. When you receive a shipment, physically place newer items behind existing stock, then apply your color system. 

Post a simple chart near the storage area showing current and previous colors: "This week: BLUE stickers, Pick first: RED stickers."

Method 4: Periodic cycle counts (ABC approach)

Periodic cycle counts are scheduled mini-audits where you count a small portion of your inventory on a regular basis instead of doing one massive count at year-end.

ABC-based cycle counts take this further by giving you near-real-time accuracy without closing your stockroom.

How to implement the ABC approach

ABC classification starts with a value. Group your items by their share of total inventory value: 'A' items are the small percentage that account for 70–80% of total value, 'B' items represent the next 15–20%, and 'C' items make up the remaining 5–10%.

Shrinkage on an 'A' SKU hurts far more than the same loss on a 'C' item, so you should count them on different schedules. Count A items weekly, B items monthly, and C items quarterly. 

Method 5: Safety stock calculator

Safety stock is the extra inventory you keep on hand to buffer against demand spikes and supplier delays. A safety stock calculator helps you maintain just enough cushion to prevent stockouts without tying up too much cash in excess products. 

You can set one up in Google Sheets or Excel.

How to implement a safety stock calculator

The safety stock formula is straightforward:

This calculation tells you how much extra product to keep on hand to absorb uncertainty without bloating your shelves.

Here's how to set it up:

1. Create headers in Row 1: SKU, Avg daily sales, Max daily sales, Avg lead time (days), Max lead time (days), Safety stock, On hand.
2. Enter 60–90 days of sales and supplier data. If you're short on history, use your busiest week for "Max" figures and a typical week for "Avg".
3. Paste the formula in the Safety stock column, pointing to each row's numbers.

Apply conditional formatting so you can't miss shortages: When on hand falls to or below safety stock, turn the cell red.

How much buffer do you actually need? Risk-averse founders or those with unreliable suppliers often keep higher safety stock levels, while cash-tight operations may settle for lower levels to balance cost and risk.

You should revisit these numbers monthly because seasonality or viral social posts can swing daily sales, and new vendors can deliver faster.

Method 6: Barcode sheet and free phone-scanner app

A DIY barcode system paired with a free smartphone scanner app gives you near-real-time tracking without spending money on dedicated hardware.

How to implement barcode-based inventory

Start by downloading a free barcode generator online. Enter each SKU, export the codes, and print them on standard label paper. 

Stick the labels on your products, then place duplicate codes on a single "master sheet." Every time stock moves, you can scan the master sheet instead of typing entries manually.

Next, install a free phone scanner app that outputs directly to a Google Sheet. Most apps let you assign which column to update for additions (receipts) or subtractions (sales and adjustments). Because the sheet lives in the cloud, your numbers update the moment you tap "save."

Method 7: Build your own inventory tracking app with AI

Spreadsheets start breaking down as your inventory grows, especially when multiple people need access at the same time. Version conflicts pile up, formulas break, and finding the right data takes longer than it should.

At that point, you need database software that can handle concurrent users, prevent data conflicts, and scale without performance issues. Traditional custom development typically costs tens of thousands of dollars and takes months to build. Bubble's AI visual development platform lets you build a custom inventory tracker with prompts and visual editing, then deploy it on web, iOS, and Android from a single platform.

How to set up an AI-powered inventory tracker

Start by describing what you need to Bubble AI: "Build a tracker with item name, SKU, quantity, and reorder alerts." The AI generates your data structure and basic interface. From there, you can switch to visual editing to refine every detail of your app without needing to write code.

If you want mobile scanning, you can build native iOS and Android apps alongside your web dashboard. Everything runs from one platform with one database and no separate codebases. 

Your warehouse staff can scan items on their phones while you check dashboards from your laptop, and everything updates in real time.

Bubble paid plans start at $59 per month for both web and mobile apps (annual billing). To launch your app, you’ll need the Starter plan, which includes unlimited database entries, allowing your inventory to grow significantly as your business scales. You can always start building on the free plan.

Method 8: Freemium inventory tracking apps

Freemium apps offer basic features for free with the option to upgrade to paid plans as your needs grow. 

For inventory tracking, you can unlock barcode scanning, mobile updates, and real-time dashboards at no cost, then upgrade later when you need more advanced features or higher limits.

How to choose a freemium platform

Popular freemium inventory apps include Sortly Lite (100 active items) and inFlow Starter (100-item combined limit for products and customers on the free plan). These free tiers offer more capability than you might expect.

Sortly's visual catalog uses photos and QR codes to help you distinguish between similar SKUs. The free plan includes mobile scanning and basic inventory tracking, though you'll need to upgrade for low-stock alerts. 

inFlow adds sales workflows like quotes, invoices, and basic reporting so your product and revenue data live in one place.

For data portability, Sortly Lite and inFlow Starter offer limited CSV export in their free versions, and you may need to upgrade for full export capability. 

You can use these exports to run quarterly analysis in Google Sheets or test different scenarios.

Method 9: Pull data from your e-commerce platform

If you're selling online through Shopify or similar platforms, you already have inventory data captured with every transaction. 

By exporting this data regularly and setting up automated alerts, you can avoid the manual-entry mistakes that lead to stockouts.

How to track inventory using exported data

Download the CSV file from your e-commerce platform and upload it into your Google Sheet.

From there, you can set up automation using a free tool like Zapier. Connect it to watch your Google Sheet, and when your quantity on hand hits your reorder point, it can send an email or Slack notification. 

How to maintain your inventory across platforms

The biggest issue you'll face is mismatched SKUs. Shopify might list an item as "TSHIRT-BLK-M" while WooCommerce calls it "TEE_BLACK_M," which causes problems when you're trying to merge data. You should standardize one SKU naming scheme across all platforms, then batch-update each system before setting up automations. 

For timing, you can schedule nightly exports or set Zapier to pull fresh data every hour if you're moving significant volume.

Build your inventory tracker in a couple of hours

Spreadsheets work well for small businesses with low stock volumes. Freemium apps offer quick setup but often lack the customization options you need as you grow. And traditional inventory software can cost thousands per month and takes months to implement.

Bubble offers a middle ground by allowing you to build exactly the app you need. You can use AI to generate the initial structure of your inventory tracker, then switch to visual editing to customize it exactly how you want. 

The platform lets you deploy your tracker on web, iOS, and Android from a single backend, so your warehouse staff can update inventory from their phones while you check dashboards from your laptop.

Explore how other businesses have used Bubble or sign up for a free account today.

Frequently asked questions

When should I move inventory tracking from spreadsheets to a database?

Consider moving when you hit around 200 SKUs, need multiple people accessing the data simultaneously, or find yourself dealing with version control issues.

A good rule of thumb: if you're spending more time managing the spreadsheet itself than actually managing your inventory, you've probably outgrown it. At that point, a database solution can help. You can import your existing spreadsheet as a CSV and add features like automated low-stock alerts, barcode scanning, and real-time updates that are difficult to implement in spreadsheets.

How much does it cost to track inventory with Bubble?

Bubble offers a free plan to help you get started with your project. Paid plans for both mobile and web apps start at $59 per month (annual billing). The recommended tier for team collaboration costs $209 per month.

Can I build an inventory tracker without any coding experience?

Yes. Bubble AI can generate a basic tracker structure based on what you describe ("Build a tracker with SKU, quantity, and reorder alerts"), and then you can use the visual editor to customize it. You can drag elements onto the page, adjust fields, and set up workflows like automated email alerts when stock runs low.

The visual editor shows you how everything works without requiring you to read or write code. Inventory tracking is one of the simpler types of apps to build on the platform, so it's a good starting point if you're new to Bubble.

What happens when my inventory system needs to scale?

A Bubble app can grow with your needs. You can start tracking 50 SKUs and scale up to thousands using the same database and workflows. If you need to add features like barcode scanning, you can install plugins. If you want mobile apps for warehouse staff, you can build iOS and Android versions alongside your web dashboard without creating separate codebases.