Top 4 Inventory Tracking Methods for Circular Retail and Consignment Shops

Explore the best ways to track inventory in consignment, resale, and branded recommerce stores. From basic spreadsheets to advanced end-to-end consignment and resale software.

Managing inventory in resale and consignment shops is uniquely challenging because every item is different. Unlike traditional retail, where products are standardized and tracked in bulk, resale requires item-level tracking for intake, pricing, payouts, and expiration. Without the right system, stores face errors, chaos, slow processes, unhappy consignors and lost revenue.

This guide walks you through four proven inventory tracking methods. Whether you’re running a single boutique shop or launching a branded resale program across multiple locations, choosing the right method will help you stay organized, reduce workload, and grow profitably.

Paper-Based Tracking

Paper systems are the most basic way to manage resale and consignment inventory. Staff manually log each item in binders or printed intake forms, usually with handwritten tags.

Some advantages using paper-based tracking:

  • Very low cost to get started
  • No technical knowledge required
  • Easy to explain to new staff

Why you should avoid it:

  • High risk of errors
  • Time-consuming to update and reconcile
  • Impossible to scale beyond small volumes
  • Not transparent for sellers

Paper tracking may work for very small shops or one-time events like pop-ups, but it quickly becomes overwhelming as your volume grows. Even a single busy sales weekend can create chaos, leading to poor customer experiences.

Spreadsheet Tracking

Many shops upgrade from paper to spreadsheets such as Google Sheets or Excel. This allows for more organized tracking of each item’s ID, category, price, and status. Cloud-based spreadsheets make it easier for multiple team members to collaborate in real time.

Some advantages using paper-based tracking:

  • Affordable and simple to set up
  • Cloud-based access for remote management
  • Clear improvement over paper systems

Why you should avoid it:

  • Still requires manual updates to stay accurate
  • Easy to make mistakes when copying or editing data
  • Difficult to scale beyond 500 to 1,000 active SKUs

Spreadsheets are a good option for smaller stores with limited staff. However, as resale programs grow, spreadsheets quickly become inefficient and error-prone. They don’t provide real-time visibility or advanced features like pricing optimization.

Integrated Retail Systems

Some retailers use large, integrated systems like NetSuite or Lightspeed to manage their entire operation, including inventory, point-of-sale, accounting, and customer relationship management. These systems are powerful for traditional retail but are not built specifically for resale, where every item is unique.

Some advantages using paper-based tracking:

  • Connects multiple parts of the business in one system
  • Good for multi-location operations and standard retail inventory
  • Provides a single source of truth for data

Why you should avoid it:

  • Limited support for single-SKU tracking
  • No built-in consignor splits and payouts or item expiration handling
  • Customization is complex and expensive

Integrated systems are helpful for retailers running both new and secondhand sales, but they often require a specialized resale platform to handle the complexity of consignment and circular inventory.

Consignment Software

Dedicated consignment software is designed to handle the specific needs of resale and circular retail. This is the modern, state-of-the-art solution for shops and brands that want to scale efficiently. Platforms like Circular provide automation, accuracy, and insights that older methods cannot match.

Core features of modern consignment software:

  • Automated intake and inventory updates
  • Real-time stock visibility across one or multiple stores
  • Seller portals for seamless intake scheduling and transparency
  • Integrated consignor splits and payout tracking, eliminating manual calculations
  • POS integrations with tools like Shopify, Zettle, and Extenda GO
  • AI-powered pricing
  • Sustainability tracking showing CO₂ and water savings per item
  • Marketplace-ready architecture for future online expansion

Select a modern Consignment Inventory Management Software

When inventory is tracked manually, staff spend countless hours on admin tasks instead of customer service. Errors in pricing, payouts, or item expiration hurt both the business and consignors. Consignment software like Circular Resale automates these workflows, saving 50-70% of staff time while increasing accuracy and revenue.

Some customers report 15x faster intake and hours saved each day on some of the most important resale processes.

For growing resale programs, software is essential. It makes it possible to scale without adding endless manual work and creates a seamless experience for both staff and customers.

When to Upgrade Your System

There is no reason to handle your inventory by pen and paper or in speadsheets. Using Circular, you get a complete end-to-end consignment inventory management software that scales with you. The free plan includes all features and have no limits for usage, and the cost scales with your sales.

The Circular Advantage

Circular Resale is built specifically for consignment resale and branded recommerce. It combines everything a modern resale business needs in one platform, from intake and seller portals to POS integrations and sustainability reporting. Even bookings.

What sets Circular apart:

  • AI-powered pricing models that learn from your store’s data
  • Seller portal that makes intake scheduling and transparency effortless
  • Seamless integration with existing POS systems
  • Sustainability reporting to show impact per item sold
  • Designed for both local stores and global branded resale programs

Circular is the state-of-the-art solution for circular retail, combining the features of consignment software, POS systems, and integrated analytics into one easy-to-use platform. Whether you’re a single store or a global brand, choosing the right tracking system today will set you up for future growth, happier customers, and a more sustainable business.

FAQs

Question: How do consignment shops track inventory?

Answer: Modern shops use cloud-based consignment software like Circular. This provides real-time updates, automated consignment splits, and full visibility into every single item, something spreadsheets or traditional POS systems can’t do.

Question: What’s the best system for resale inventory?

Answer: Software like Circular Resale is the best starting point for most stores. Essential for accuracy, automation, and growth. It's actually free for stores with monthly resale revenue below $1000

Question: How does Circular differ from regular POS systems?

Answer: POS systems track sales but not the full lifecycle of resale items. Circular adds the missing layers: intake scheduling, item expiration, seller payouts, and sustainability tracking, all designed for the unique needs of circular retail.

Want to learn more? Schedule a demo with the Circular Resale team!