Introduction
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.
[Also Read: What is Multichannel Selling in E-commerce?]
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.
This is when a business needs e-commerce order management software. 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.
[Read in detail – What is Order Management?]
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.
[Read in detail – How To Reduce Warehouse Costs]
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 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 Software 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.
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.
FAQS
1. What is the best way to choose an order management system for my online store?
The best way to choose an order management system for your online store is to compare it with your order volume, sales channels, inventory setup, warehouse network, and fulfilment needs. Look for an OMS that can connect marketplaces, D2C stores, warehouses, payment gateways, and logistics partners while keeping orders and inventory synchronized. Also check order routing, returns management, reporting, integrations, scalability, implementation time, support, and pricing to ensure the system can handle your current operations and future growth.
2. Why do e-commerce businesses need an Order Management System?
E-commerce businesses use an Order Management System to manage orders efficiently across marketplaces, websites, stores, warehouses, and logistics partners. An OMS improves order accuracy, provides real-time visibility, reduces manual work, prevents overselling, streamlines fulfilment, and helps deliver a better customer experience.
3. How does an Order Management System improve order fulfilment?
An Order Management System improves fulfilment by automatically routing each order to the most suitable warehouse or fulfilment centre. It considers inventory availability, location, delivery timelines, and shipping rules. This helps businesses process orders faster, reduce fulfilment errors, lower shipping costs, and meet customer delivery expectations.
4. What features should businesses look for in an OMS?
Businesses should look for an OMS with multichannel integration, real-time inventory synchronisation, automated order processing, warehouse allocation, shipping integration, returns management, order tracking, reporting, open APIs, scalability, and user-friendly workflows. The system should also support integrations with marketplaces, shopping carts, logistics providers, and ERP platforms.
5. Can an OMS manage orders from multiple sales channels?
Yes, a multichannel Order Management System can consolidate orders from websites, marketplaces, mobile applications, social commerce channels, and physical stores. It provides a centralised view of orders, inventory, fulfilment, and returns, allowing businesses to manage multiple sales channels without switching between separate systems.
6. How does an OMS help prevent inventory overselling?
An OMS helps prevent overselling by synchronising inventory levels across all connected sales channels in real time. Whenever a product is sold, the available stock is automatically updated across marketplaces, websites, and stores. This reduces inventory discrepancies, prevents duplicate sales, and improves stock availability accuracy.
7. Can an Order Management System handle returns and cancellations?
Yes, an Order Management System can manage cancellations, returns, exchanges, and reverse pickups through a centralised workflow. It can update order statuses, coordinate with logistics partners, adjust inventory, and provide visibility into returned products. This helps businesses process returns faster and improve post-purchase customer service.
8. Is an Order Management System suitable for small and growing businesses?
Yes, an Order Management System is suitable for small and growing businesses because it reduces manual work and supports operations across multiple channels. A scalable OMS can help businesses manage increasing order volumes, add new marketplaces, connect warehouses, automate fulfilment, and expand operations without replacing the entire system.
9. How should a business choose the right Order Management System?
A business should evaluate an OMS based on its integration capabilities, order volume, inventory requirements, fulfilment model, return workflows, scalability, reporting, pricing, implementation support, and ease of use. Businesses should compare vendors, request product demonstrations, conduct a trial, and select a solution that supports their current and future operational needs.
Related Read:
- Challenges of Order Management System in E-commerce
- How does order management work: Order Management Process?
- Process, Features, Benefits for Warehouse Management System (WMS)
- Omnichannel Retail Challenges & Solutions in India
- Benefits of an E-commerce Order Management System
- Multichannel Order Management System Trends
- Why is an Order Management System Important for E-commerce Business?