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Order & Inventory Management

What is order management system software for e-commerce

Explore the ultimate guide to order management system software for eCommerce. Discover key features, benefits, and how to choose the best OMS for your business.
October 23, 2024
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Running an online business today is trickier than ever because your customers are purchasing from multiple channels (your site, your app, social media, marketplaces, and perhaps offline stores). The more ways businesses sell, the harder it is for online businesses to track inventory, fulfill orders, and communicate with their customers.

Any slip-up, overselling, or missed shipments can quickly lead to canceled orders, annoyed customers, and negative ratings. That is where an order management system (OMS) comes in. An OMS is a centralized online and e-commerce solution for your operations.

It connects all your online and offline sales channels, automatically syncing your inventory and automating fulfillments, while tracking every step in the order process, from purchase to the customer's door. Businesses use an OMS instead of spreadsheets or random tools so they can do absolutely everything in one solution and scale their business without the headaches.

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What is an order management system (OMS)?

An order management system (OMS), at its most basic level, is software that manages the entire lifecycle of a customer order, from the moment it is placed until it is delivered (and sometimes returned). Instead of relying on multiple outdated spreadsheets, emails, and siloed applications, an OMS is the centralized place for all order-related work.

Think of it like the “air traffic control” for your e-commerce business. Every order, from every source, online store, marketplace, or offline store, flows through your OMS. The OMS makes sure orders are processed properly, keeps inventory up to date in real-time, makes sure the fulfillment team knows what products to pick and pack, and retains the customers with accurate information along the way.

The order lifecycle

To best see what an OMS does, let's look at a typical order lifecycle and the typical stages it experiences:

  • Order capture - The OMS consolidates orders across the different sales channels (website, marketplace, social commerce, and offline POS).
  • Verification of payment- The OMS verifies that payment was made and received properly.
  • Inventory- The OMS also verifies the inventory and balances it in real-time to enable companies to avoid overselling.
  • Fulfillment- The OMS decides which warehouse or store to ship the order out of, and rules are used to either have the order fulfilled the fastest or efficiently depending on the cost.
  • Shipping- OMS creates invoices and creates labels and manifests to send the order and integrates with courier partners.
  • Delivery updates - Automated to customers through emails, SMS, or WhatsApp.
  • Returns and refunds - The OMS handles reverse logistics, and even refunds, processes, in case of necessity.

By managing every piece of information in one platform, the OMS has the ability to mitigate mistakes and expedite fulfilment while being transparent across the supply chain.

Why e-commerce businesses need an OMS

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As e-commerce continues to expand, one true thing is that the complexity of managing orders keeps increasing. Businesses today are now selling through several different channels.

From websites to marketplaces (Amazon and Flipkart), social media channels, and even brick-and-mortar stores, businesses have a vast amount of potential to sell their products. But each channel creates a probability of making a mistake, a delay, or being inefficient. Without a centralized approach, a mid-size business can struggle to keep up with its customer demands.

An order management system (OMS) is the answer to these challenges, and it provides a single view of all your orders, inventory, and fulfillment operations. Here are reasons why an OMS is now an essential tool for other e-commerce businesses:

1. Eliminates manual errors and overselling

When orders are processed manually, it leaves room for error. When inventory is tracked in disparate systems or spreadsheets, overselling a product or failing to account for deficiencies are easy mistakes to make. Not only does overselling frustrate customers, but it can also lead to excessive returns, refunds, and administrative costs. 

 An OMS will sync and keep track of inventory in real-time with automatic updates across all channels, ensuring that the stock shown to customers at any point is always reliable. Once the last unit is sold, the OMS will update every channel and prevent any potential overselling.

2. Boosts order accuracy and fulfillment speed

In e-commerce, speed and accuracy are crucial. Customers expect their orders to arrive on time, and any delay can harm your brand's reputation.  

An OMS automates many of the repetitive tasks, which include:

  • Generating invoices, labels, and manifests.
  • Assign orders to the warehouse with the lowest cost and fastest delivery.
  • Tracks SLA compliance.

This reduces the chances of human error and helps your company fulfill orders faster. Companies leveraging OMS software see order processing time reduced by up to 30%, which gives them the ability to process more orders and significantly increase volume without having to add employees.

3. Supports multi-channel scaling and growth

Many businesses utilize a single platform when establishing a business before expanding with growth. Trying to manage multiple sales channels by hand can become overwhelming in a short time. Errors and mismanagement happen quickly when there is no integration to support orders - missed orders, mismanaged inventory, and varied customer experiences.

An Order Management System (OMS) integrates every sales channel, and enables businesses to scale easily, enabling everything from:

  • Selling across multiple marketplaces without stock conflicts.
  • Expansion into new geographic regions without friction.
  • Maintaining consistent service levels across channels.

4. Provides better customer experience

Consumers today want transparency and trust. 

An OMS can help a business:

  • Provide real-time order tracking.
  • Automate notifications via email, SMS, or messaging services.
  • As well as provide returns and refunds.

A seamless order experience develops trust and generates repeat purchasing, and research shows 73% of consumers say they would pay more based on experience than price when determining to repeat purchases.

5. Enables data-driven decisions

An OMS is not simply about operations; it is also a source of intelligence. 

By using OMS data to analyze order patterns, inventory replenishment, and fulfillment results, a company can: 

  • Have a more accurate view of demand.
  • Manage replenishment inventory across warehouses.
  • Identify and improve operational constraints. 

For instance, a retailer can see there is a spike in order volume for a seasonal product. With OMS data, they can more appropriately manage stocking levels led by the increased demand and prevent stockouts, rather than reacting once it is too late to recover lost sales.

An OMS is not just a technology;  rather, it is a strategic tool that can change how e-commerce businesses function. An OMS removes errors, speeds up fulfillment, positions you for multi-channel growth, improves customer experience, and gives you valuable data. No business that intends to efficiently scale can do without implementing a strong OMS.

Key features of an OMS

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An order management system (OMS) is only as good as the features it offers.  Of course, the purpose of an OMS is to help you process orders more efficiently, but many of today's OMS platforms can do much more than offer simple order processing functionality. 

For example, they help businesses manage inventory, automate fulfillment, support multiple channels, and enable insights that allow for better decision-making. Here are the features that distinguish an OMS as a vital capability for e-commerce businesses:

1. Centralized order dashboard 

One of the most valuable features included in an OMS is a centralized order dashboard.  A centralized order dashboard provides one location for all orders for every sales channel in your business, such as your website, marketplaces, social media sites, and offline store locations. 

With a centralized order dashboard, teams can:

  • See the totality of all incoming orders as they come in real-time.
  • Decide what orders need to be prioritized.
  • Follow the fulfillment process.
  • Identify exceptions that require manual intervention.

Example: A fashion retailer who sells via their website as well as through Amazon and Instagram would be able to see all of their orders in one spot rather than trying to figure it out in several different apps or spreadsheets.  This can cut down on errors and ensure orders are not missed altogether.

2. Real-time inventory tracking

Managing inventory is key to avoiding stockouts and overselling inventory. An OMS will update inventory in real-time across all sales channels.

The benefits of real-time inventory updates are as follows:

  • Customers see accurate product availability.
  • Chances of overselling are reduced.
  • Automatic alerts restock alerts when inventory is low.

3. Multi-Channel Integrations

All modern e-commerce businesses sell across multiple channels. An OMS will integrate with your online stores, marketplaces, social commerce, and even offline POS systems so that your order management is seamless.

The benefits will include:

  • A single view for all of its sales channels.
  • Synchronize inventory across your platforms.
  • A consistent customer experience across all channels.

Example: A retailer selling through Shopify, Amazon, and Facebook Shops can manage all of its orders and inventory from one OMS dashboard, eliminating channel conflicts.

4. Bulk, bundle, and partial order handling

Customers frequently order multiple items, bundle products, or request partial shipments (for example, first shipping items the customer needs urgently, while holding back the other items until there are enough items to afford shipping). 

Your OMS should enable:

  • Processing bulk orders.
  • Direct identification of products and creation of product bundles, with tracking.
  • Facilitating partial order fulfillment and processing routing.

For example, a customer places an order for three products, each coming from a different warehouse. Your OMS can automatically split the original order and send each warehouse its respective shipment, eliminating the need for manual intervention.

5. Automated invoicing, labels, and manifests 

Creating invoices and shipping labels is a time-consuming manual process and prone to mistakes. 

An OMS should automate these actions:

  • Automatically creating an invoice.
  • Creating shipping labels to be used with multiple carriers.
  • Creating packing lists (manifests) for the warehouse.

Benefit: You save time and reduce mistakes, which helps speed up shipping time.

6. Returns and refund management

Returns are a part of doing business for everyone in e-commerce. 

An OMS will help streamline reverse logistics by:

  • Allowing customers to start the return online.
  • Automatically producing return labels.
  • Updating the owned inventory once the products are returned.
  • Worrying about refunds, replacements, etc.

Stat: Happy returns keep customers loyal. 96% of customers said that they would shop again at a retailer that made the return process easy.

7. Order tracking with SLA visibility.

Customers want visibility when it comes to shipping. An OMS provides real-time tracking of orders and ensures that the order is meeting the service-level agreements (SLA).

Benefits:

  • Customers get accurate updates via email, SMS, or WhatsApp.
  • Operations teams can manage performance against SLAs.
  • Proactive identification of exceptions and delays.

For example, if a courier is delayed, with the OMS, you can automatically notify the customer, therefore decreasing service inquiries and enhancing customer satisfaction.

8. Analytics and reporting

An OMS is not just a management system; it is also a source of actionable insights, making use of analytics to assist businesses with:

  • Calculating which products and channels are performing best,
  • Forecasting demand accurately,
  • Managing fulfillment efficiency,
  • Optimizing inventory across multiple warehouses.

For example, by monitoring order trends, a retailer can optimize stock levels (increase them) for items they know are seasonal and will sell, in advance of the season, limiting out-of-stocks and ensuring they don't lose sales.

When combined, OMS features such as centralized dashboards, real-time inventory tracking, multi-channel integration, automated fulfillment, returns management, SLA visibility, and analytics create a system that not only manages orders but facilitates operational efficiency, which means growth.

This is why an OMS should be able to provide you with powerful insights and actionable data, so you can grow your e-commerce business while keeping your customers happy.

What does an OMS do in practice?

Knowing the critical functions of an OMS is one thing, but knowing how it performs in real-world operations makes the value clearer. An OMS acts as the central hub and coordinates each step along the order lifecycle. The OMS ensures that orders are accurate, shipped on time, and tracked accurately. Let's see how that looks in practice.

1. Syncs orders from every channel, in real time

Your website, marketplace, social media, or offline store can be used to place orders. In the absence of a single linked system, it can make it complex, prone to errors, and time-consuming to manage orders.

An OMS automatically synchronizes all orders on a single dashboard, providing visibility across all teams and channels. Stock availability is updated in real-time, and inventory levels are updated on an up-to-the-minute basis.

The situation: one customer places an order on Instagram for the last pair of sneakers, and another customer places an order on Amazon for the same sneakers. The OMS immediately updates that inventory, eliminating overselling and keeping customers happy.

2. Prioritizes, splits, bundles, or routes orders

There are different levels of urgency regarding orders. Some are express, some may have multiple items from distinct warehouses, and others are being sent as part of a promotion (bundle). 

An OMS automates making decisions about:

  • Prioritization: An urgent order will be worked on first.
  • Splitting: If the order consists of items from different warehouses, the order will be split automatically.
  • Bundling: If the item is bundled together (i.e., a group of items sold as a set), the OMS will ensure those items remain grouped and will be shipped together.
  • Routing: An OMS also routes customers' orders to the nearest fulfillment center, minimizing shipping times and reducing costs. 

For instance, a retailer has warehouses in New Jersey and California. If the company receives an order from New York, an OMS will automatically route the order to the New Jersey warehouse to allow the order the quickest and best shipping cost available.

3. Generates labels, manifests, and invoices automatically

Manual paperwork slows fulfillment and introduces errors.

An OMS automates:

  • Shipping label creation for multiple carriers.
  • Packing manifests for warehouse staff.
  • Invoices to customers and accounting.

Advantage: The entire process of teams spending time performing manual labor is streamlined, errors are minimized, and orders are shipped out of the warehouse and onto porches more efficiently. 

Stat: Companies that have automated OMS and developed documentation automation for order, invoicing, shipping, and packing manifests are found to have 35% fewer delays in fulfillment due to errors in paperwork.

4. Give customers updates via email, SMS, or WhatsApp

Today's customers want visibility of their orders at every step. 

An OMS often can integrate with various communication channels to send customers real-time updates on:

  • Order confirmation.
  • Shipping - in transit status.
  • On time expected delivery date.
  • Returns and refund confirmations.
  • Being proactive decreases customer inquiries and improves satisfaction.

Stats: 83% of customers are more loyal to retailers who provide proactive order updates.

5. Manages cancellations, returns, and service tickets

Returns and cancellations are two key aspects of e-commerce. 

An OMS assists reverse logistics by:

  • Allowing customers to return items online.
  • Automatically creating return labels.
  • Managing inventory once items are received back.
  • Returning or replacing quickly.

Some OMS have a connection with service ticketing systems, so complaints can be routed to customer service for tracking and resolution with helpful context. Effective management of an OMS will ensure minimum impact on operations.

6. Provides operational insights

An OMS can also be used to gain insights based on the data, such as the efficiency of order fulfillment by warehouse, the average time of delivery by carrier, product demand needs, and inventory turns. Such details enable companies to enhance their operations, demand, and decision-making.

For example, a retailer notices that their headphone sales have suddenly increased during the very first back-to-school period. The OMS would help them allocate more stock ahead of time, so they don't run into stockouts.

Benefits of using an OMS

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Implementing an order management system (OMS) is not simply about automation, but a complete overhaul of your e-commerce operation. With orders, inventory, and fulfillment in one place, an OMS helps businesses automate processes that save time, increase speed, reduce errors, and scale operations properly. Here are the benefits explained: 

1. Speeding up processing orders and order fulfillment.

Speed is a critical competitive advantage in e-commerce today. Customers are increasingly demanding same-day or next-day delivery. If there are delays in processing orders, it can impact your sales and your brand’s reputation in the future.  

An OMS automates essential daily processes, including: 

  • Order routing to the right warehouse.
  • Label and invoice generation.
  • Real-time inventory updates.

Example: A clothing retailer was manually taking approximately 20 minutes to process buy orders. After implementing an OMS, the process time dropped to under 5 minutes, allowing the company to handle large volumes of orders without hiring.

2. Lower operational and shipping costs

Manual processes can lead to waste, orders shipped from the wrong warehouse, duplicate shipments, and unnecessary packaging. 

An order management system (OMS) can improve order fulfillment by: 

  • Routing orders to the nearest source.
  • Use the best price for shipping options.
  • Combining multiple orders, when possible.

Example: A retailer shipping an order from a faraway warehouse instead of the nearest warehouse will cost twice as much. An OMS will automatically route the orders to the better decision, increasing savings and decreasing delivery time.

3. Better demand forecasting and inventory visibility

Inventory is one of the biggest investments for an e-commerce business. Too much inventory uses up working capital, and having too little results in lost sales. An OMS gives you real-time visibility about your inventory levels, inventory trends, and inventory sales patterns.

Example: A consumer electronics retailer sees a spike in headphone sales starting in July. Using OMS analytics, instead of waiting until headphone stock is sold out, they can replenish stock levels ahead of the trend to ensure that they will have stock available at the increased demand.

4. Better customer experience

When it comes to customer experience, accurate orders and timely deliveries are paramount. An OMS reduces fulfillment errors made by the retailer, keeps customers informed about shipment status, and streamlines the returns process.

Example: When a customer receives automatic updates about a shipment status change or the shipping confirmation to let them know that shipping will be delayed, some consumers report feeling more informed and valued as a customer.

 Stat: According to PwC, 73% of consumers report that experience is a driving factor over price when choosing to purchase the same item/brands repeatedly. An OMS can provide that level of transparency, which can translate into that seamless experience.

5. Scalability for growing operations

When you scale in your business, your order management complexity increases, and tracking orders manually becomes infeasible very quickly. As soon as your organization has more than one warehouse, starts selling internationally, or adds channels for distribution beyond your website, managing orders starts to pile complexity onto your growth.

An OMS provides organizations a smart way to allow growth without stacking up complexity or operational overhead, or errors that we previously didn't have.

Example: If our brand grows from sales in one country to three in the span of a year, staying compliant with cross-border orders, taxes, and multiple shipping partners requires an OMS if we are going to scale successfully.

6. Operational insights & analytics

Besides managing order fulfillment, an OMS provides organizations with actionable insights that help improve decision-making. Analytics about fulfillment times, order errors, and product demand allows organizations to optimize operational processes.

Example: A retailer identifies that certain products require weeks or months in certain areas. OMS Analytics helps them redistribute product allocation and staffing to areas and warehouses demonstrating consistent demand, rather than relying on arbitrary supply chain delivery time.

Common challenges without an OMS

It is feasible to manage an e-commerce business without an order management system (OMS); however, significant risk exists. As order volume rises and channels expand, the issues with manual processes or disconnected systems are compounded and lead to errors, inefficiencies, and unsatisfied customers. Below are some of the most common challenges faced by businesses when they are not using an OMS:

1. Overselling or stockouts caused by poor inventory sync

When inventory is tracked across different spreadsheets or disconnected systems, overselling happens frequently. For example, multiple customers may purchase the same item, and online listings may show products for sale that are actually out of stock.

Impact: 

  • Order cancellations and refunds.
  • Lost revenue and damaged brand trust.
  • More customer complaints.

Example: A small electronics retailer that sells online through its own site and on Amazon is constantly experiencing stock conflicts. They do not have an OMS, so they often end up cancelling orders or shipping late.

Fact: Retailers continue to lose hundreds of billions of dollars annually due to overstocking and stockouts.

2. Delayed or inaccurate shipments

Manual processes intensify the risk of shipping errors, such as sending the wrong item, to the wrong address, or shipments originating from the wrong warehouse.

Impact:

  • Shipping delays frustrate customers.
  • Customer support teams are inundated with complaints.
  • Brand reputation is damaged.

3. Increased return volumes and customer dissatisfaction

When orders are incorrect, delayed, or missing, returns are naturally going to be higher. Without an OMS, returns can be painful. For example, customers have to deal with convoluted return processes, warehouses struggle with reverse logistics, and issuers can't issue refunds quickly.

Impact:

  • Lower customer loyalty.
  • Increased operational expenses.
  • Lower customer satisfaction.

Stat: Narvar notes that 96% of customers would shop with a retailer again if the return process were easy, which proves how vital smooth returns are.

4. Fragmented systems across sales channels

Most retailers kick off by using separate tools to handle each sales channel. They have one tool for the website, one for all marketplaces, and if they're lucky, they may even have a spreadsheet to manage their offline sales. Splitting tools like this operation is manageable at low volumes, but it becomes a mess as they scale.

Impact:

  • Teams are wasting hours manually reconciling data.
  • Orders slip through the cracks.
  • The decision-making process becomes delayed due to incomplete or conflicting information. 

Example: A fashion brand that sells through three sales channels may not be able to gauge efficiency by taking in 20 orders a day, but at 2,000 orders, missing an update on stock levels can mean canceled orders and unhappy customers. 

5. Operational inefficiencies, wasted time, and resources

Without an OMS, staff are spending more time on administrative and repetitive manual tasks like updating spreadsheets, creating invoices, and tracking outbound shipments. Unless staff are mapping out strategies to improve customer experience, or how to make the fulfillment process more efficient, those hours saved are not contributing to your bottom line. 

Impact:

  • Increased labour costs. 
  • Delays in response time to customer inquiries. 
  • Higher incidence of error in order processing.

How to choose the right OMS

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Choosing the best order management system (OMS) can be a challenging process with the number of options available to you. It's important to assess your business needs thoroughly, to select a system that fits today's challenges, supports your growth, increases efficiencies, and improves the customer experience. Use this step-by-step guide to ensure you're making the right decision: 

1. Identify your operational requirements 

Before you begin to look at OMS options, you need to define your business requirements: 

  • How many sales channels do you sell on? 
  • Do you have multiple warehouses or fulfillment centers? 
  • What is your average order volume, and is it expected to be more or less next year?
  • Are you selling internationally?
  • How much of your process will be automated (invoicing, shipping, and returns)?  

These answers will help you develop a short list of OMS solutions, which will work for you with respect to your current operations and scale with you as you grow.

2. Prioritize essential features

Different OMS systems have various capabilities. 

Be sure to consider the capabilities that are really important to your business.

  • Order routing and allocation – Automatically route orders to the best warehouse or fulfillment center.
  • Inventory management – Keep track of inventory (realign stock) and out of stock in real time across all channels.
  • Automation – Invoices, labels, manifests, and notifications are all automatically generated.
  • Analytics and reporting – Actionable insights for better business decisions.
  • Returns management – Seamless reverse logistics and refunds.

3. Check for integrations

Your OMS must be able to integrate naturally with the other tools you use. 

Common integrations include:

  • ERP Systems for finance, purchasing, and operations.
  • POS Systems for offline sales.
  • Warehouse Management Systems (WMS) for fulfillment.
  • Marketplaces such as Amazon, eBay, or Etsy.
  • E-commerce platforms like Shopify, Magento, or WooCommerce.

A solution with solid integrations will allow your OMS to become the engine of your operations, without creating additional silos.

4. Consider vendor support and reliability

OMS is such an important business tool that any downtime or failure to be supported can seriously affect your business. 

Vendors are hard to assess, so you might want to look at:

  • Availability of customer support (24/7 or dedicated account managers).
  • Reliability and uptime reputation.
  • Security and protection policies around your sensitive customer and company data.
  • Regular updates and improvements in features.

Request some business references or case studies that are similar to yours, so you have real-world experiences to measure performance.

5. Assess scalability, customization, and pricing

As your business changes, so should your OMS. When thinking about OMS, think about the following:

  • Scalability: Is it scalable to the volume of orders and sales channels that you require?
  • Customization: Can it customize workflow, reports, and dashboards?
  • Pricing model: Does it involve a cost per order volume, user, or a flat fee? Search for the overall cost of ownership, both of implementation and the continuing costs.

Typically, a rapidly expanding fashion company might require a cloud system based on OMS with expanded licenses and personalized workflows to address seasonal fluctuations.

6. Consider future growth and changing workflows

Finally, decide on an OMS that suits not only your workflows today but also allows you to pursue other growth initiatives in the future:

  • An international presence.
  • AI forecasting or warehouse automation.
  • New product lines or subscription models.
  • Managing inventory and fulfillment across multiple locations.

An OMS that is flexible and future-ready will provide your business with the opportunity to expand, and not having to switch platforms will save you time and money in the long term.

To choose the OMS, you must consider your operational needs, critically evaluate what you need, assess integrations and vendor reliability, and finally, examine scalability and future expansion. With this structure, you will narrow in sufficiently to pick the most appropriate solution that can help you today in controlling orders and also support your business as it expands.

Best order management systems

There is a wide variety of order management systems (OMS) available, so when it comes to picking one, it is wise to understand which ones are reliable, scalable, and feature-rich, as offered by the companies. Some of the most advanced OMS solutions are listed below, and each one of them is superior and applicable depending on the needs of the business:

1. FYND OMS

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Overview: FYND OMS is a flexible order management system for e-commerce companies growing across multiple channels. It can service multiple sales channels, operating warehouses, and fulfillment or logistics providers seamlessly with a centralized and scalable solution.

Key features: 

  • Inventory synchronization in real time on all channels.
  • Automatic routing, fulfillment, and returns.
  • Operational insights into an analytical dashboard.
  • Support for multi-location or multi-marketplace operations.

Why it stands out: FYND OMS's fillable integrations and scalability make it the prime solution for rapidly growing companies that are starting to sell across multiple channels or multiple countries/regions. FYND's order automation streamlines manual tasks and minimizes human errors, enabling brands to scale more effectively.

Best for: Mid-large e-commerce retailers, brands with plans to expand to other marketplaces, or regions.

2. Shopify Plus (Shopify OMS)

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Overview: Shopify Plus OMS is targeted directly to the merchants who rely on Shopify as their primary channel. Its multi-channel e-commerce management is strong, and it is highly integrated with third-party applications.

Key features: 

  • Centralized inventory and order management.
  • Integrates with Shopify stores, social commerce, and marketplaces.
  • Use automation rules for routing and fulfillment.
  • Sales performance reporting and analytics.

Why it stands out: If your business is already part of the Shopify ecosystem, then Shopify Plus OMS is tailored to meet your needs in terms of integration, automation, and ease of use. 

Best for: Small to medium-sized Shopify brands that require an OMS solution with minimal IT requirements.

3. Oracle NetSuite OMS

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Overview: NetSuite is a complete ERP including an effective OMS module. It is designed for an organization that needs to manage both its operations and financials in an integrated solution.

Key features include:

  • Lifecycle order management.
  • ERP, CRM, and WMS modules integration.
  • Multi-currency and worldwide conformity.

Why it stands out: NetSuite OMS is an enterprise-level solution that provides a high level of customization which is relevant to the complexity of large organizations with complex operations or many subsidiaries.

Best for: Large organizations with complex workflows, an international operation, or an existing NetSuite ERP system.

4. Zoho Inventory

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Overview: Zoho Inventory is a cloud-based order management software (OMS) that offers an easy-to-use interface with lots of features and functions. It’s also very inexpensive and easily integrates with other Zoho apps and several marketplaces.

Key features:

  • Multi-channel order and inventory management.
  • Automated invoices, shipping labels, and notifications.
  • Basic analytics and reporting.
  • Integrations with the marketplace, shipping, and accounting.

Why it stands out: Zoho Inventory is an affordable choice for small to medium businesses looking to gain central control over their order management with little to no investment. 

Best for: Small to medium-sized businesses that have year-over-year growth in their online sales and are looking for a basic order management solution.

5. Brightpearl

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Overview: Brightpearl offers a complete OMS with effective inventory management capabilities and accounting functionalities, aimed at retail and wholesale. 

Key features: 

  • Omnichannel order, inventory, and financial management all in one system. 
  • Tracking inventory in real-time across all channels. 
  • Automated shipping, invoicing, and returns. 
  • Sales, stock, and operational reports.

Why it stands out: Brightpearl has a unique strength in omnichannel retail operations, allowing a company to fulfill the sale and track the financials all in one system. 

Best for: Retailers and wholesalers with multi-channel that want financial insights along with their operations.

Today, by making the appropriate investment in the right OMS, you can be confident that your business will be in a position to scale, navigate busy peak seasons, and offer the shopping experience that customers are willing to repeat. An OMS is fundamentally the foundation of an e-commerce success whether it is a small brand that needs flexibility and can centralize its operations or a large company that needs to enhance

Frequently asked questions

What is the difference between an OMS and an ERP?

An order management system (OMS) is focused on the order life cycle management including the order placement and delivery including inventory adjustments, delivery, and returns. An ERP system has significantly more functions throughout the business (finance, human resources, procurement). An ERP can perform some order management, but an OMS is much more successful in order management when it comes to many sales departments and fulfillment processes. 

What is the difference between an OMS and an ERP?
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Is an OMS compatible with my existing eCommerce websites?

Yes, OMS solutions in use today can be integrated with other operational and popular e-commerce solutions, such as Shopify, Magento, WooCommerce, marketplaces such as Amazon and eBay, and even social commerce channels or offline point of sale (POS) systems. Through these integrations, real-time syncing of orders, automated inventory checking, and facilitation of fulfillment are made possible without the need for high-level manual reconciliation.

Is an OMS compatible with my existing eCommerce websites?
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What size of business benefits most from an OMS?

Any e-commerce business can find value in an OMS; however, mid-sized businesses with multiple selling channels and brands that are growing in expanding markets or expanding into new warehouses find the most benefit. Large enterprises producing high volumes of orders and more complex order fulfillment workflows also see great benefits. Even smaller businesses can see operational improvements overall, assuming growth is on their radar or they want to reduce the potential for manual errors early on.  

What size of business benefits most from an OMS?
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How does an OMS improve customer experience?

An OMS improves customer experience by providing accurate and real-time tracking of orders, sending automated emails and SMS or message updates, fulfilling orders exactly as expected and on time, and managing returns and refunds more easily. An OMS improves the customer experience by keeping customers informed along the way, minimizing fulfillment errors, and building trust to encourage lots of repeat purchases over time.

How does an OMS improve customer experience?
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Is OMS software scalable for future growth?

Certainly, modern OMS platforms are designed with scalability in mind. Businesses may require scalability to add sales channels, open new warehouses, scale operations internationally, or increase the number of orders. Scalability allows for the same OMS capabilities without disruption. Cloud-based OMS solutions provide more flexibility and easier implementation of updates and new features.

Is OMS software scalable for future growth?
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What are the pros and cons of cloud-based versus on-premises options?

Cloud-based OMS platforms can be accessed from multiple locations, can be deployed more quickly than on-premise solutions, typically have low upfront costs, and will automatically update with the latest features. It's worth noting that cloud-based systems do require internet connectivity, may have a subscription fee over time, and not all companies will feel comfortable retaining their data in a cloud-based solution. On-premise OMS solutions normally allow for the end user to have more control over their data, but often require considerable upfront investment and longer implementation lead times, and can often require dedicated internal customer service and IT resources in many companies. Most e-commerce companies prefer to deploy cloud-based solutions for their flexibility, ease of integration, and scalability.

What are the pros and cons of cloud-based versus on-premises options?
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