Complete guide to order management system for eCommerce

An order management system (OMS) is the engine that drives seamless eCommerce experiences.

As a central hub, it streamlines and automates the entire order lifecycle, from the "buy" button click to final delivery and beyond.

But that "seamless experience" can quickly spiral into chaos without the right OMS – or worse, if you neglect it completely (especially when scaling your eCommerce operations).

As customer demands for speed reach new levels, operational efficiency becomes vital. 

By 2029, retailers expect to fulfill two-thirds of orders within a day or less (Deloitte Global Retail Outlook 2024). 

This push reflects the reality: customers prioritize lightning-fast delivery, even over free shipping (ECDB, 2023).

Keeping pace with these expectations without a robust system will feel like an endless uphill battle.

So, how do you stay ahead of the chaos? 

This guide will walk you through everything you need to know about these tools and equip you to meet the demands of modern eCommerce.

What is an order management system for eCommerce?

An order management system is a software solution that streamlines and automates the entire order process for businesses. 

It connects and manages all order stages, from initial placement and inventory updates to shipping, delivery, and returns.

How does an order management system work?

Below is a simplified step-by-step overview of how an OMS typically operates:

1. Order capture: it collects orders from various sales channels, such as websites, marketplaces, and social commerce tools
2. Order consolidation: it centralizes all incoming orders into a single dashboard for easy management
3. Inventory check: it automatically checks stock levels across all locations to ensure the availability of requested items
4. Payment processing: it coordinates with integrated payment gateways to securely process payments
5. Order routing: it routes the order to the best fulfillment center based on factors like stock availability and customer location
6. Shipping and fulfillment: it generates shipping labels, organizes carrier pick-ups, and provides customers with tracking information
7. Order updates: it gives customers and staff real-time updates on order status, from processing to shipment
8. Post-sale management: it manages returns, exchanges, and refunds if necessary, as well as updates inventory accordingly
9. Data reporting: it logs all transaction details, offering insights into sales trends, performance, and other key metrics

What does an order management system do?

Now, let’s explore an order management system's core functions and how each translates into tangible benefits for your operations.

1. Order entry and processing

Those endless spreadsheets and manual entries? 

Never again! 

An OMS captures orders across all your sales channels – including marketplaces and social media – consolidating them into a single platform. No more missed orders, duplicate entries, or lost sales. Just pure efficiency. 

For a growing eCommerce business, this efficiency is crucial. Manual processes are error-prone and time-consuming. 

Automating order entry and processing with an OMS lets your team focus on strategic initiatives that drive growth.

2. Inventory management

An order management system for eCommerce becomes your single source of truth for inventory. 

It tracks stock levels across multiple warehouse locations to ensure you have accurate insights to prevent stockouts and overselling, as well as streamline inventory replenishment.

Suppose you run an eCommerce business that sells on Shopify and Amazon. 

Without an OMS, you might accidentally oversell a popular item on both platforms because your inventory wasn’t updated in real time. 

🔥 Real-world example: Kaporal mitigated stockout issues by implementing OneStock, boosting online sales by 12% and reeling in an extra €500K in just 30 days. 

Now, they fulfill orders from anywhere, keeping customers happy and stock moving.

3. Shipping and fulfillment

The order management system should integrate with major carriers, allowing automatic label generation and real-time tracking information. 

The solution also optimizes routing to guarantee order fulfillment from the best location and facilitate swift shipping. 

When someone orders from your online store, the software checks the warehouse closest to the customer's location for stock. 

If available, it sends the order there for fulfillment. 

If not, the OMS directs the order to another location with the item in stock.

Ultimately, the system helps you reduce costs for you and your customers. 

Even though customers love speedy delivery, as we’ve seen, they're still susceptible to price. 

A 2024 Baymard Institute study found that 48% of shoppers abandon their carts at checkout due to high extra costs like shipping and fees.

4. Payment processing

Another integration of an OMS is with popular payment gateways for secure transaction processing and refund management. 

You can simplify your accounting, reduce errors, and minimize the risk of fraud. It should allow you to handle everything, whether managing local transactions or more complex international payments.

Let’s say your eCommerce accepts international purchases, and a customer from another country buys an item in a different currency. 

The OMS processes the payment through the appropriate gateway, updates your accounting software, and generates an invoice – automatically.

5. Returns and exchange management

Returns are inevitable in eCommerce, but they don't have to be a headache. 

An order management system streamlines the entire process, from authorizing returns to processing refunds and updating inventory. 

For example, when a customer requests to return an item, the OMS generates a return label and directs the item to the closest warehouse. 

Once you receive the item, the software solution updates the stock and approves the refund. The return process is quick and hassle-free for the customer and your business.

Keep your customers satisfied and minimize losses with each return. 

But for that, you must also have a clear return policy. 

According to Happy Returns’ report, Returns Happen 2023, 81% of shoppers check the return policy before purchasing an item, and 55% will abandon their cart if they find it inconvenient.

6. Customer service and communication

An OMS gives your customer service team real-time access to order details, inventory, and purchasing history. 

If a customer inquires about their order, the team can check its status in the fulfillment process and provide an accurate delivery estimate. 

In case of a delay, they can promptly notify the customer and offer solutions to reduce frustration.

And here's why it matters: 94% of shoppers say a positive customer service experience makes them more likely to buy again (Salesforce's Connected Shoppers Report). 

The best OMS for eCommerce ensures your team has the tools to deliver that experience every time.

On top of that, the platform allows you to segment customers based on location, order history, or spending habits. 

You can send personalized promotions or product recommendations through email marketing campaigns to improve customer satisfaction and encourage repeat purchases.

7. Reporting and analytics

Go beyond basic order tracking. An OMS isn't just a tool for managing operations; it's a powerful data source. It provides insights into sales trends, customer behavior, and product performance. 

This information lets you fine-tune your pricing, optimize inventory, and enhance marketing strategies.

Track the right financial metrics and KPIs aligned with your goals to drive growth.

‍Read our guide on financial metrics to make smarter, data-driven decisions.

How to choose the right OMS for eCommerce?

At this point, you’ve got a solid understanding of what an OMS does, so you likely have a sense of what you need. 

However, choosing a suitable order management system can make or break your eCommerce success. 

With that in mind, let's break down the essentials to ensure you go with one that sets you up to win.

1. Ease of use

A robust OMS is only as good as its usability. 

Look for a solution with a clean, intuitive interface that's easy to navigate and understand, even for team members without extensive technical expertise. 

The right system should simplify your operations, not complicate them.

🔎 What to look for:

• A modern, simple UI that avoids outdated designs and offers easy navigation
• Fast training and onboarding with access to tutorials, help docs, or training sessions
• Automation of tasks like inventory updates and order confirmations to save time and reduce errors

2. Integrations

Your order management system shouldn't exist in isolation. 

It must integrate seamlessly with your existing platforms, marketplaces, shipping providers, payment gateways, and other essential eCommerce tools. 

This interconnected ecosystem ensures data flows smoothly between software solutions. 

It eliminates manual data entry and reduces errors.

🔎 What to look for:

• Compatibility with your current eCommerce platform (e.g., Shopify, Magento) and potential future platforms like Amazon
• Automatic shipping label generation and tracking integration with major carriers
• Seamless payment processing and refund handling through payment gateways
• Integration with your CRM system for easy access to order details by customer service

3. Scalability

Today's bustling online marketplace demands adaptability, so choose an order management system that can scale alongside your business. 

Whether adding new sales channels, expanding into international markets, or experiencing a surge in order volume, the software should be equipped to handle the growth without missing a beat.

🔥 Real-world example: Eileen Fisher, a sustainable fashion brand, needed a solution that could grow with the company – and IBM Sterling Order Management delivered. 

Initially skeptical that IBM’s platform was only for larger businesses, Eileen Fisher quickly recognized its ability to scale. 

The system streamlined inventory management across all channels, enabling fulfillment options like ship-from-store (SFS) and buy-online-pickup-in-store (BOPIS).

As Eileen Fisher continues to expand, the platform effortlessly handles rising order volumes and new sales channels without adding complexity. 

Eileen Fisher has built a scalable foundation for sustained growth by reducing manual processes and boosting inventory accuracy.

🔎 What to look for:

• Handling multiple sales channels (website, Amazon, Instagram, etc.) with synchronized inventory
• Support for various currencies and languages if you plan to expand internationally
• Capacity to manage peak order volumes, such as those experienced during Black Friday/Cyber Monday

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4. Customization options

Every business has its unique workflows and requirements. 

The ideal order management systems for eCommerce offer customization features, allowing you to tailor them to your needs. 

Whether it's configuring automated workflows, creating custom reports, or integrating with niche industry solutions, flexibility is key.

🔎 What to look for:

• Customizable automated workflows for tasks like order routing and inventory updates
• Tailored reports specific to your business needs
• API access for seamless integration with niche tools or specialized software

5. Customer support

Even with the most user-friendly systems, questions and challenges inevitably arise. Look for a provider that offers reliable, responsive customer support. 

Whether through phone, email, or live chat, having access to knowledgeable support staff can make all the difference in resolving issues efficiently.

🔎 What to look for:

• Availability of multiple support channels, such as phone, email, and live chat
• Fast response times, particularly for critical issues
• 24/7 support availability if your business operates globally or during off-hours

6. Pricing

OMS pricing models vary widely, from flat monthly fees to usage-based structures. 

Carefully consider your budget and projected order volume when evaluating different options. 

Remember, the cheapest option isn't always the best value. 

Factor in features, scalability, and customer support when making your decision.

🔎 What to look for:

• Transparent pricing models that clearly outline all costs, including additional user costs and transaction limits
• Flexible tiers that accommodate your current business size and future growth
• Be wary of hidden fees for integrations, API access, or features beyond the base package
• Providers offering free trials or demos to test the system with your data and processes before committing

10 best order management systems for eCommerce

Finding a suitable OMS is a critical decision for any growing eCommerce business. The market offers a range of solutions, each with its strengths and target audiences. 

Let's explore some of the top contenders.

⚠️ Note that most options on this list aren’t solely order management platforms but include this essential functionality as part of a broader suite of tools.

1. Shopify Order Management and Delivery

Are you already using Shopify as your all-in-one platform? 

The leading eCommerce platform offers a built-in order management system alongside its core features. 

It's a powerful solution for businesses seeking to improve operations within a familiar ecosystem.

Key features:

• Centralized order management
• Automated order routing
• Inventory tracking and management
• Streamlined Fulfillment
• Third-party logistics (3PL) integration

2. BigCommerce Enterprise

BigCommerce is another popular eCommerce platform that includes a robust built-in order management system. 

It helps businesses process orders, track shipments, and manage the entire post-sale process from within the BigCommerce ecosystem.

Key features:

• Centralized order hub
• Automated processes
• Flexible fulfillment
• Customizable statuses
• Actionable insights

3. Brightpearl

Brightpearl is a cloud-based retail operating system for multichannel merchants and wholesalers. 

The company provides expert support at every stage, from implementation and onboarding to ongoing consulting and 24/7 customer support.

Key features:

• Inventory and order management
• Shipping and fulfillment
• POS
• Warehouse management
• CRM
• Analytics
• Accounting

4. Linnworks

Linnworks is a platform for online retailers to streamline, automate, and scale their eCommerce operations with a centralized solution for managing inventory, orders, fulfillment, and shipping across multiple sales channels.

Key features:

• Inventory management
• Order management
• Warehouse management
• Shipping management
• Multichannel listings
• Reporting and insights
• Integrations

5. Mintsoft

Mintsoft is an order fulfillment software for eCommerce businesses, warehouses, and third-party logistics providers. 

What sets Mintsoft apart is its strong focus on 3PL client management, offering features like a client portal, customizable branding, and detailed billing capabilities. 

Key features:

• Multichannel management
• Inventory control
• Shipping management
• Order rules
• Extensive integrations
• Fast batch scheduling
• 3PL management

6. Veeqo

Veeqo is a cloud-based multichannel eCommerce platform and, notably, part of the Amazon family. 

It leverages Amazon's Buy Shipping technology to offer sellers the most competitive rates across carriers like UPS, USPS, FedEx, and DHL. 

Veeqo’s order management capabilities directly integrate with Amazon's ecosystem, giving Amazon sellers unique benefits and protection.

Key features: 

• Shipping
• Inventory management
• Warehouse management
• Order Management
• Reporting and analytics
• Integrations

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7. Despatch Cloud

Despatch Cloud is a comprehensive order fulfillment software solution that helps eCommerce businesses with warehouse operations, shipping processes, and integration with various sales channels. 

It offers a modular approach so you can choose the specific features you need.

Key features:

• Automated order imports
• Channel tracking updates
• Manual order imports
• Order insights and reports
• Merge orders
• Batch order processing
• Customer directory
• Branded despatch emails
• Branded packing slips and invoices

8. ShipStation

ShipStation is a shipping software tool that optimizes the order fulfillment process for eCommerce businesses of all sizes. 

It centralizes and automates shipping tasks within a user-friendly platform, from order import and label printing to rate shopping and tracking.

Key features:

• Order management
• Shipping
• Branding
• Inventory management
• Integrations and partners

9. ShipHero

ShipHero is a warehouse management system that empowers eCommerce businesses to improve their operations, improve shipping efficiency, and gain real-time visibility into their inventory. 

The platform can handle the demands of modern eCommerce fulfillment by combining robust features with an intuitive interface to streamline warehouse processes and drive growth. 

Key features:

• Order management
• Inventory management
• Returns management
• Picking and packing
• Live carrier rate shopping
• Fulfillment
• Work orders
• Fully open API

10. ShipBob

ShipBob is a full-stack fulfillment platform that offers a full-stack fulfillment solution for eCommerce businesses. 

The company combines a robust system with a distributed network of fulfillment centers to streamline the entire process, from receiving inventory to shipping orders and handling returns.

Key features:

• Fulfillment platform
• Omnifulfillment
• 2-day shipping
• Warehouse management system
• Global reach
• Customization

Remember, the best OMS for eCommerce aligns with your specific needs, budget, and growth trajectory. 

Thorough research, feature comparison, and vendor consultations are essential. 

Invest the time to find the perfect fit and unlock your business potential.

Orders in order? Now, fuel your growth with fast financing

The chaos of eCommerce is real – one missed order, a stockout, or a shipping delay, and you're neck-deep in a logistical nightmare. 

But with the right order management system for your business, you can take back control, streamline everything, and deliver the seamless experience your customers crave.

An OMS solves the operational headaches, but growth? That demands capital. 

Whether expanding your inventory, boosting fulfillment efficiency, or upgrading tech, the right financing turns potential into reality.

The answer? Revenue-based financing is exactly what you're looking for. No personal guarantees. No rigid terms. 

And best of all, no equity dilution. Just up to 150% of your monthly revenue, with repayments that flex with your sales.

You’ve got big plans. Get the money to make them happen. Apply for eCommerce funding now and unlock your growth.