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How Is Order Management System a must-have for eCommerce businesses?

Nisha Gopinath Menon
June 24, 2022

Order management is one of the critical processes of trading between two parties. It involves receiving goods from the vendor and delivering them to the customer within a promised time. That said, the process also includes capturing customer data, packing shipments, order routing, managing returns, invoicing, and managing payments and refunds.In the last few years, the rapid growth of eCommerce has made exceeding client expectations and fulfilling demands of fast and quality delivery of orders an essential aspect of customer experience and brand building.  

Order Management Software (OMS) is a vital component of an eCommerce business since it helps in improving the efficiency of the operations and boosts customer satisfaction and sales. It aids businesses in streamlining their fulfillment processes and consolidating their orders from multiple sales channels (website, social media, advertising, etc.) on a single platform. 

The OMS is built to support all kinds of eCommerce businesses, from online retailers to wholesalers and 3PLs (third-party logistics) or warehouses. It ensures an error-less, cloud-based, data-driven work environment and provides a secured space to store customer data and other important information for the company. 

How does OMS benefit your eCommerce business?

There are many advantages to implementing an order management system in your eCommerce business. The software can support your existing work ecosystem and facilitate the various stages of order fulfillment. Following are the benefits of using an OMS for your company:

  • Low Inventory Costs
    Thanks to automation, businesses no longer need to track their inventory manually. Implementing an automated order management software allows users to simplify processes and boost staff efficiency and productivity in a short time.

    Stressing on the point of simplifying processes, an OMS allows users to manage the company’s inventory by easy scanning and deciding the further steps for each product with simple clicks. This is mainly based on triggers such as inputting delivery options, value, the weight of the package, etc. 

    Additionally, OMS gives users a detailed insight into product information (for instance: fragile, flammable, lightweight, meltable) so that you can decide the warehouse storage method and location to avoid mishaps and maltreatment. Both functions guarantee a lost inventory cost by conveniently tracking the products and reducing the company’s outlay on restocking unnecessarily. 

  • Organized Warehouse Operations
    Many order management systems are available in the preferred market for their in-built Warehouse Management Systems (WMS). OMS offers an added advantage of automated warehouse management that provides users deep insight into product logistics, packaging, inventory tracking, and courier services. 

    It also keeps track of the warehouse space and provides users with an accurate measurement of the space’s capacity for storing inventory. This function helps businesses plan to restock inventory, invest in more warehouses, or cultivate courier relationships accordingly. 

  • Updated Inventory
    The “Out of Stock” tag on product listings is probably the easiest way to dissuade a customer from continuing shopping from an eCommerce store, leading to unsatisfied customers and a dent in the profits. Additionally, manually maintaining an inventory may be a mind-boggling task for employees and time-consuming, stressful activity for the company. 

    Implementing an OMS in your business infrastructure can benefit you by tracking the sales and popularity of products on your eCommerce channels. It is programmed to alert users about a low inventory through accurate data analysis. 

    It can also integrate with your sales platforms and keep them updated so that your company does not run the risk of overselling or underselling products. 

  • Simple integration with other systems
    Every user needs an easy-to-integrate order management system so that it can monitor its numerous sales channels and work in tandem with other software for invoicing, customer relations, accounting, and stock management. 

    Smooth integration of the OMS with the business infrastructure increases staff efficiency and helps the company process orders faster. 

  • Accurate sales data and analytics
    Most order management systems are developed to provide detailed analysis of sales, customer experience, product preference, and more, based on the information collected by the system from various eCommerce channels of your company. 

    Many software also provides users with a comprehensive report builder, access to customer data, and more to generate thorough reports regarding the business's operations. 


The only drawback of implementing an OMS for your business is that some of its features may or may not be a perfect fit for your requirements. More often than not, this software fails to accommodate clients' individual needs, thus making it difficult to implement. 

However, along with a plethora of functionalities and features, you also have a choice in the type of OMS. You can either go for a customized software if you want to personalize your order management system as per your company’s needs or invest in off-the-shelf software.

CognitiveClouds is a SaaS company that provides the latest digital solutions to help businesses grow. We collaborate with budding as well as established businesses to build applications to facilitate their processes and take their sales to the next level. Get in touch with our team of experts here to develop a custom software solution for your business with us today!

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Nisha Gopinath Menon