Home > Blog > How to Pick the Best Order Management System (OMS) for Your E-commerce Business?


In 2020, e-commerce changed forever. The industry recorded growth equal to 10 years within a short span of 3 months. This put a strain on the supply chain management system of every e-commerce business selling goods online to customers. They were forced to adopt various measures to cope with the huge rush for online goods and manage the supply of goods.

The key to the smooth handling of the massive spike in demand for goods online is to use an Order Management System (OMS) that can cope with customer expectations. On the other hand, it must allow the online business to compete with other players in the market.

Why do e-commerce businesses need a robust order management system? 

As people are increasingly opting to purchase products online, many businesses created e-commerce portals as an extension of their physical stores. Thanks to the availability of high-speed internet connections, consumers have to simply visit the e-commerce portal to browse and select the desired items. E-commerce has changed the way business is done by brick-and-mortar stores. It has provided businesses, especially micro, small, and medium enterprises, with more opportunities to grow while reducing their cost of operating physical stores.

Hence, the global e-commerce landscape is set to grow from US$ 4 billion in 2020 to over US$ 6.5 billion in 2023. While on the one hand, this has created new opportunities to grow, on the other hand, this has also created challenges – how to manage rising inventory from online sales? How can seamless integration of operations be ensured? An e-commerce business’ reputation depends on how well it reacts to orders by online customers and how quickly it executes them.

global e-commerce landscape

This is when a business needs e-commerce order management system. While it is extremely tough and vital to provide a smooth shopping experience to online customers, choosing the right type of multichannel order management system is critical. 

What is an E-commerce Order Management System?

An e-commerce Order Management System (OMS), also called an online order management system, allows online businesses to execute various operations. These include accepting and processing orders, creating invoices, deciding the right warehouses, keeping them informed, updating order details across its sales channels, and allowing customers to track their orders. Businesses can use an OMS to automate time-consuming, repetitive tasks and ensure end-to-end visibility. When seeking out an online OMS, companies must be clear about what is essential and what can be ignored.

Key points to remember while you pick an OMS

1. Seamless integration: An e-commerce Order Management System must include an open API that empowers e-commerce businesses to seamlessly integrate their operations across global marketplaces, carts, logistics providers, and more.

2. Managing returns: In e-commerce, online customers often return their orders if the product is not up to the mark or the waiting period is too long. An OMS must be able to keep track of all return orders and make updates accordingly.

3. Scalability: While picking an e-commerce Order Management System, businesses need to make sure that it is flexible and robust enough and can be scaled up in the future as per the increase in requirement as the business grows.

4. Real-time inventory tracking: An Online Order Management System equips businesses to reduce unnecessary expenses. It should also allow them to pursue potential sales opportunities proactively by enabling them to track inventory in real-time.

5. Multi-Node fulfillment: Also called Multichannel Order Management System, the OMS must empower customers in logistics management to choose the fastest delivery options. It will enable online businesses to maintain warehouse facilities at strategic locations to ensure the quickest delivery. Using OMS, e-commerce businesses can allocate orders to the closest warehouse and communicate the same with the end customer to streamline order fulfillment. A distributed Online Order Management System allows businesses to efficiently manage orders across multiple channels and systems.

6. Evaluate and trial: Businesses must compare multiple software solutions—their features, cost, after-sales technical support, etc.—before choosing an e-commerce Order Management Software. After evaluation, they must finalize the most suitable one and request a free trial from a set of finalized vendors. Based on the trial, evaluation result, and suitability to replace legacy systems, businesses should finalize the most appropriate OMS.

how to pick order management system for business

How can an OMS streamline order operations for your business?

1. Training: Businesses need to keep in mind that to implement a new OMS, it is important to train employees beforehand. They must ensure that the online Order Management System is user-friendly and can be quickly implemented.

2. Centralization: Businesses can integrate and condense their entire information under one roof, saving time and resources and ensuring multichannel compatibility with a multichannel Order Management System.

Read how Businesses are growing with Unicommerce – How Honasa Consumer, the parent company of Mamaearth, attained a 99.99%+ Order Fulfillment rate for its D2C operations?

3. Speed: A multichannel Order Management System are designed to enable e-commerce businesses to speed up productivity. This, in turn, ensures quicker delivery and efficient product handling, leading to higher customer satisfaction.

4. Accuracy: E-commerce Order Management Software enables online businesses to improve accuracy. The advancements in technology ensure the reduction of errors, especially in repetitive processes, allowing them to concentrate on introducing innovative products and processes.

how oms streamline order operations for your business

Watch how Order Management System (OMS) helps in timely order fulfillment –

Final words

An online Order Management System is a must for any e-commerce business. It ensures a quick, personalized, and error-free order fulfillment, resulting in a satisfied end customer. A customized Multichannel Order Management System enables online businesses to save precious time on repetitive tasks, thereby allowing them to concentrate on other important activities such as marketing strategies, product innovation, which will eventually improve their productivity and profitability. Online businesses serve customers transcending geographical boundaries, languages, taxes, currencies, etc. Implementing an e-commerce Order Management System that covers all these factors can empower businesses to reduce complexity in operation, thereby resulting in a better customer experience.

Schedule a FREE demo with Unicommerce’s Order Management consultants.

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