For many SMBs, managing inventory, supplier relationships and pricing across multiple categories can quickly become complex.
Category management software keeps everything in motion. The software helps SMBs organize products, monitor performance and make data-driven decisions that support growth – all from a central platform.
In this article, you’ll learn about the best category management tools. You’ll also discover how SMBs can gain clear visibility into product performance and make smarter decisions that drive sales.
Key takeaways
Category management software helps SMBs organize products, track performance and make data-driven decisions across inventory, suppliers and pricing.
Using these tools allows small businesses to improve inventory visibility, make smarter operational decisions and optimize sales.
SMBs often struggle with disorganized categories and manual tracking, but category management software streamlines workflows and centralizes data.
Pipedrive’s CRM combines category management functionality with sales pipeline management, giving SMBs a single system to manage products, sales and suppliers efficiently – sign up for a free 14-day trial.
How do category management tools help SMBs increase sales?
Category management software helps businesses strategically plan and manage product procurement.
It allows purchasing and procurement teams to organize, analyze and control company spending by grouping similar products into categories.
For example, a retailer might group products by supplier, price range or demand level to see:
Which items drive costs
Which items sell fastest
Where bulk purchasing offers savings opportunities
Here are some ways category management tools can drive better product organization and sales growth:
Improved product categorization | Businesses can group products by performance, demand or customer behavior to make inventory management and sourcing easier. Example: A clothing retailer might organize items into categories such as “best sellers” and “clearance” to help staff manage stock levels. |
Enhanced inventory visibility | Real-time tracking identifies which product categories sell well and which need attention. Example: An electronics retailer might see that laptops are selling faster than office accessories. The team decides to reorder laptops to avoid stockouts. |
Data-driven merchandising decisions | Analytics reveal top-selling and underperforming products, enabling businesses to adjust pricing and availability accordingly. Example: A sporting goods store might expand shelf space for high-demand running shoes while reducing the display area for slower-selling gym bags. |
Optimized pricing strategies | Understanding category performance helps businesses set prices that balance competitiveness and profitability. Example: Sales data shows that premium coffee machines sell slowly at full price. A retailer introduces a sales promotion to increase demand. |
Streamlined cross-selling and upselling | Recommend related products within categories to increase average order value. Example: An online electronics store might automatically suggest screen protectors and wireless earbuds when a customer buys a smartphone. |
Simplified reporting and performance tracking | Category-level reports allow businesses to monitor trends and make informed decisions. Example: A monthly report may reveal that outdoor furniture sales spike in spring, helping the business plan stock levels. |
Easier product offering expansion | New products and categories can be added without disrupting structure or visibility. Example: A retailer that sells smart home devices can create a new category for smart lighting, thermostats and security cameras without affecting existing electronics listings. |
Category management tools provide SMBs with a structured view of their products, which helps them make better decisions to boost sales.
5 of the best category management tools for SMBs
SMBs need category management solutions that are affordable, scalable and easy to adapt to their workflows.
Below are five category management tools that organize product categories, track performance and help SMBs make data-driven decisions about products.
1. Pipedrive: Best for organizing products and sales in one place
Pipedrive is a client relationship management (CRM) platform that helps businesses manage deals, customer relationships and sales pipelines.
Pipedrive helps SMBs organize products, supply chains and sales data in one system, making operations simpler and decisions faster.
Why it’s great for SMBs: Pipedrive isn’t a traditional category management system, but that makes it a smart alternative. It combines standard category management tasks with CRM capabilities.
Rather than buying expensive standalone category management software, SMBs can use Pipedrive’s functionality to organize products, categories, suppliers, deals and sales metrics in one place.
Download Your Guide to Sales Performance Measurement
Here are some of the performance data you can track in a Pipedrive dashboard:
Key features for category management:
Custom CRM fields and pipelines. SMBs can create category labels, supplier segments and performance stages that match their workflow.
Revenue tracking by category. Linking deals and products to categories allows SMBs to see which items or suppliers drive the most revenue.
Automations. Automatic reminders for reorders, supplier follow-ups or alerts save time for small teams and business units.
Supplier relationship management. SMBs can manage negotiations, renewals and reviews in one system, improving team efficiency and reducing supplier risk.
Reporting dashboards. Category-level reports give small teams actionable insights into performance without needing complex analytics tools.
Integrations. Connecting with accounting, inventory and e-commerce systems ensures SMBs can streamline workflows without juggling multiple platforms.
Artificial intelligence (AI-powered) suggestions. Pipedrive’s AI-driven CRM analyzes product performance to recommend task prioritization, optimize categories and improve sales efficiency.
Who should use Pipedrive: SMBs that want a practical, all-in-one approach to managing products, suppliers, deals and performance without the price or complexity of enterprise software.
Pipedrive in action: Video production agency Interesting Content used Pipedrive to centralize lead tracking, manage sales stages and organize client interactions in one system. As a result, the agency quadrupled the number of deals in its pipeline and achieved a fourfold increase in the number of deals won.
2. Katana: Best for tracking inventory and production by category
Katana is a cloud-based inventory and operations platform built for product-centric SMBs that manufacture, assemble or sell physical goods.
Katana helps SMBs manage inventory, production and product categories in real time, giving teams visibility and control over materials, assemblies and finished goods.
Why it’s great for SMBs: Katana focuses specifically on inventory and production workflows, making it ideal for businesses where categories are linked to materials, assemblies and finished products.
Instead of juggling spreadsheets or multiple tools, SMBs can see how each category performs across the entire production and sales process for strategic sourcing.
Key features for category management:
Visual category management processes. Track stock movement and category breakdowns across production stages to quickly identify bottlenecks.
Real-time inventory insight. Get up-to-date information on product availability, reducing shortages and delays without manual checks.
Cost and margin tracking. Assign costs to product categories or assemblies to understand profitability at a granular level.
Who should use Katana: SMBs that need clear visibility into category performance from a production and inventory perspective (especially those managing multiple product initiatives or stock types).
3. Sortly: Best for simple, visual category tracking
Sortly is an intuitive inventory management solution built for small businesses, solopreneurs and teams that want easy stock categorization.
Sortly helps SMBs organize inventory quickly, making it easy to see stock, categories and locations at a glance.
Why it’s great for SMBs: Sortly emphasizes simplicity and visual organization, ideal for SMBs that need category-based tracking but don’t require a full enterprise resource planning (ERP) system.
With Sortly’s category management services, teams can quickly locate items, update quantities and manage stock without a steep learning curve or expensive software.
Key features for category management:
Visual tagging and categories. Label and group items by category, location or project, so SMBs can spend less time searching for inventory information and more time closing deals.
Mobile app with photos. Scan, photograph and categorize stock on the go to keep records accurate and up to date.
Custom fields. Track attributes that matter to your business (such as size, supplier or SKU group) without cluttering the system.
Who should use Sortly: SMBs that want simple, visual category tracking without the cost or complexity of enterprise-level inventory systems.
4. QuickBooks Commerce: Best for managing categories across sales channels
QuickBooks Commerce (formerly TradeGecko) is an inventory and order management platform designed for small and mid-sized merchants.
QuickBooks Commerce helps companies control inventory, orders and product categories across sales platforms from one system.
Why it’s great for SMBs: QuickBooks Commerce is particularly useful for SMBs that sell across e-commerce stores, marketplaces and wholesale channels.
The software connects category organization directly to order management and accounting, improving operational clarity.
Key features for category management:
Multi-channel inventory sync. Keep product categories and stock levels consistent across e-commerce platforms and sales channels to prevent overselling (which can damage the customer experience and your brand reputation).
Centralized order management. Manage category-linked orders from one dashboard, simplifying fulfillment and reducing admin.
Built-in accounting integration. Sync category-level sales and cost data with accounting systems to improve financial visibility and reporting accuracy.
Who should use QuickBooks Commerce: SMBs that sell across multiple channels and need structured category control tied directly to inventory, orders and financial reporting.
5. Microsoft Power BI: Best for advanced category performance insights
Microsoft Power BI is a business intelligence platform that transforms category management data into interactive dashboards and insights.
Microsoft Power BI helps SMBs turn sales, inventory and financial data into clear dashboards that highlight trends and opportunities.
Why it’s great for SMBs: While not a category management platform itself, Microsoft Power BI strengthens category management strategy by making existing data easier to analyze.
SMBs that already use accounting, e-commerce or inventory systems can connect those tools and gain deeper visibility without replacing their current software.
Key features for category management:
Custom dashboards. SMBs can build visual reports that track category-level sales, margins and inventory performance in one view.
Connection with multiple data sources. Pull data from spreadsheets, e-commerce platforms, inventory systems and accounting tools to create a unified category overview.
Affordable scaling. Start with desktop analytics and expand to cloud-based sharing as reporting needs grow.
Who should use Microsoft Power BI: SMBs that want deeper insights and forecasting capabilities without investing in a new operational platform (especially when performance tracking and data visualization are priorities).
How to choose the right category management system for your business
The right category management system should sharpen decision-making, improve operational control and directly impact profitability.
Use the following steps to evaluate options and choose the right tool for your business.
1. Define your business goals | What it means: Identify the specific outcomes you want to improve, such as inventory planning, supplier performance or demand forecasting. How to do it: Write down measurable objectives and rank them by priority before comparing software options. |
2. Assess your current data sources | What it means: Understand where your sales, inventory and supplier data currently live. How to do it: Enlist stakeholders from relevant departments to list the systems you use (such as inventory software, e-commerce platforms or CRM solutions). Check integration compatibility before choosing a tool. |
3. Consider ease of use | What it means: Ensure the system is simple enough for your team to use without technical expertise. How to do it: Evaluate the interface during a demo or free trial and avoid tools that require complex setup or ongoing IT support. |
4. Evaluate scalability | What it means: Confirm theConfirm that the tool supportsthe tool can support business growth without requiring replacement. How to do it: Review pricing tiers, user limits and feature upgrades to ensure the platform can expand with your needs. |
5. Prioritize integration capabilities | What it means: Verify the system connects smoothly with your existing tools. How to do it: Confirm native integrations or API access and test these connections during the trial period. |
6. Look at reporting and analytics | What it means: Confirm the platform provides real-time, category-level insights for decision making. How to do it: Review sample dashboards and reports to ensure they’re customizable and easy to export. |
7. Check cost vs. value | What it means: Compare pricing against the features and outcomes that matter most to your business. How to do it: Analyze plan differences carefully and manage cost savings by removing features you don’t need. |
8. Review vendor support and training | What it means: Ensure the platform offers reliable onboarding and ongoing assistance. How to do it: Check documentation and tutorials before signing a contract. |
Selecting an effective category management system helps you deliver measurable impact and make smarter strategic decisions over time.
Final thoughts
Category management tools help SMBs organize products, optimize inventory and make smarter decisions that drive sales growth. To get the most impact, choose a system that aligns with your business goals, integrates with existing tools and provides clear visibility into performance across categories.
For SMBs, Pipedrive is a practical solution that combines category management functionality with a full CRM platform. Businesses can track deals, manage suppliers and monitor category performance in one place. As a result, sales teams can act on insights and improve sales efficiency.
Sign up for a free 14-day trial to streamline product and sales management.
