How to Build a Profitable E-commerce Order Management System

Interested in learning how to develop a profitable e-commerce order management system? As you’re aware, efficient order management is crucial for business success.

It’s the seamless process that connects a customer’s click of the “buy” button to the arrival of the product at their doorstep. 

Mastering the art of e-commerce order management is essential for thriving in today’s competitive market. 

In this comprehensive guide, we will cover:

• A definition of an ecommerce OMS
• How to build a profitable ecommerce OMS in 10 steps
• What problems are solved when having a profitable OMS
• And more!

Now it’s time to go through the key strategies and insights necessary to develop a successful order management process that drives profitability.

What is E-commerce Order Management System?

An e-commerce order management system (OMS) is a centralized platform that oversees the entire order processing cycle. 

This includes the moment a customer places an order, all the way to its fulfillment and delivery. It streamlines inventory management, order processing, shipping, and customer communication. 

This way an e-commerce business can ensure a smooth and efficient workflow.

9 Essential Steps to Building an Effective E-commerce Order Management System

Building an effective OMS is essential for the success of any ecommerce business. 

Here are nine essential steps to help you create a robust system that ensures seamless order processing and customer satisfaction.

1. Prioritize Exception-Based Management

​​Exception-based management involves focusing on handling exceptions or issues rather than micromanaging every aspect of the process. 

By prioritizing exceptions, such as delayed shipments or inventory discrepancies, you can allocate resources more efficiently and prevent small issues from escalating.

2. Optimize Warehouse Selection

Choosing the right warehouse location is crucial for efficient order fulfillment. 

Consider factors such as proximity to your target market, transportation infrastructure, and storage capacity when selecting a warehouse. 

Optimizing warehouse selection ensures faster delivery times and reduces shipping costs.

3. Facilitate Order Placement

Ensure a seamless and user-friendly order placement process for customers. 

Incorporate intuitive design elements, clear navigation, and concise checkout procedures to streamline the purchasing journey. 

Providing multiple payment options and guest checkout features can also enhance convenience and encourage conversions.

4. Investigate and Choose Reliable Shippers

Choosing reliable shipping partners is essential for timely and cost-effective delivery. 

Partnering with reputable shippers ensures a positive delivery experience for your customers.

5. Ship Swiftly and Efficiently 

Efficient processing and shipping are critical for meeting customer expectations. 

Implement streamlined order fulfillment processes, such as batch picking and automated labeling. This will reduce processing times and improve shipping efficiency. 

According to Voxware, 69% of consumers are less likely to shop with a retailer if an item isn’t delivered within two days. This just confirms that swift and efficient shipping enhances customer satisfaction and loyalty.

6. Ensure End-to-End Order Visibility

A transparent order process allows you to track orders throughout the entire fulfillment process, from placement to delivery. 

Implement tracking systems and provide customers with real-time updates on their order status. 

Bonus Tip: Eager to enhance your fulfillment process? Check our guide on how to get your fulfillment process in shape now.

7. Improve Post-Shipping Handling

Returns management is essential for handling product returns and exchanges efficiently. Develop clear and customer-friendly return policies and procedures to streamline the returns process. 

Implement systems for inspecting, restocking, and processing returned items promptly to minimize disruptions to your operations.

8. Continue Nurturing Relationships Post-Shipping

Building strong relationships with your customers doesn’t end after shipping their orders. 

Implement post-purchase communication strategies, such as personalized follow-up emails and customer satisfaction surveys, to engage customers and gather feedback. 

Nurturing relationships post-shipping enhances customer loyalty and encourages repeat purchases.

9. Assess and Measure Areas for Improvement

Regularly assess and measure the performance of your processes to identify areas for improvement.

Analyze key metrics, such as order accuracy, shipping times, and customer satisfaction ratings, to pinpoint weaknesses and implement corrective actions. 

According to Keeping.com, 72% of companies believe they can use analytics reports to improve the customer experience. This means the importance of leveraging customer service analytics for post-shipping relationship nurturing is crucial.

Continuous improvement ensures that the process remains profitable and adaptable to changing business needs.

The Benefits of Implementing a Profitable Order Management System

When having a successful and efficient OMS, there are numerous advantages that can impact the success of your ecommerce business.

Let’s explore these benefits in detail:

1. Inventory Optimization: By effectively managing inventory levels, you can prevent both overstocking and understocking. This ensures that you have the right amount of stock on hand to fulfill customer orders promptly.

Bonus Tip: Looking to overcome a warehouse space crisis? We’ve got you covered! Check out our blog on how to solve a warehouse space crisis.

2. Order Accuracy: A well-implemented order processing system reduces the likelihood of mistakes in fulfilling orders. You don’t have to worry about shipping incorrect items or missing items.

3. Data-Driven Decision Making: Reliable information provided by an order management system allows you to make data-driven decisions. This includes decisions regarding inventory replenishment, pricing strategies, and customer preferences.

4. Time Savings: With streamlined processing and automated workflows, a productive order management system saves valuable time for your team. It eliminates manual tasks and reduces administrative overhead. 

What Are the Key Factors for Successful E-commerce Order Fulfillment?

Ensuring successful e-commerce order fulfillment requires attention to various key factors:

Receiving Inventory

Promptly sending inventory to your fulfillment provider ensures the availability of products for customers. Conducting quality checks upon receipt prevents issues with damaged or defective items, maintaining customer satisfaction.

Warehouse Organization

An efficiently organized warehouse is crucial for rapid and accurate order processing. Modern warehouse management technology enhances efficiency, making it easier for staff to locate, pick, and pack products, ultimately saving time and improving overall operations.

Technology

Partnering with an ecommerce fulfillment center equipped with advanced technology is essential for effective business operations. Order management and inventory management software provide real-time visibility into order status and stock availability, minimizing supply chain disruptions and ensuring smooth operations.

Communication

Effective communication with customers throughout the order fulfillment process is paramount. Using simple communication tools like emails, text messages, and push notifications keeps customers informed about their orders, builds trust, and reduces inquiries regarding order status.

Order Processing and Shipping Flexibility

Efficient order processing and shipping are critical to meeting customer expectations. It’s essential to partner with a fulfillment provider capable of scaling operations to handle fluctuations in order volume, ensuring timely delivery and customer satisfaction.

Returns Management

Implementing an efficient returns management process is essential for customer satisfaction and loyalty. Handling returns promptly and effectively, whether through exchanges or refunds, demonstrates reliability and reinforces trust in your brand.

Optimize Every Step of Your Order Management Journey

A well-designed e-commerce order processing system directly influences the customer journey, from order placement to delivery. Additionally, it impacts customer satisfaction.

While no system is flawless, there’s always room for enhancement. This is where Fulfyld excels.

With its proven track record in delivering exceptional e-commerce fulfillment services, Fulfyld can assist you in optimizing your order management processes. This means addressing challenges and ensuring customer satisfaction.

We encourage all e-commerce enterprises, regardless of size or sector, to continuously evaluate and refine their systems.

This could involve adopting new technologies, training your team, or partnering with a trusted third-party logistics provider like Fulfyld. Each step toward bettering your system brings you closer to achieving business excellence.

Are you ready to elevate your online order management system? Reach out to Fulfyld today and take your fulfillment strategy to new heights.

FAQs

What are the different types of e-commerce order management systems?

There are various types, including: 

• in-house systems developed by businesses
• cloud-based systems provided by third-party vendors
• integrated systems that are part of larger ecommerce platforms. 

Each type offers different features and functionalities to meet the needs of different businesses.

How does the e-commerce order management system work?

This kind of system coordinates and automates various tasks involved in fulfilling customer orders, such as: 

• order processing
• inventory management
• shipping, 
• customer communication

It integrates with your online store’s platform to receive orders, track inventory levels, and streamline the fulfillment process from start to finish.

What are good order management tools?

Good order management tools include software platforms specifically designed to streamline and automate order processing tasks. Some popular order management tools include ShipStation, Ordoro, TradeGecko, and Skubana.

What are the challenges of e-commerce order management systems?

Challenges may include: 

• inventory inaccuracies
• order processing errors
• shipping delays
• integration issues with other business systems
• managing returns and exchanges 
• ensuring seamless communication with customers.

Why is it important to have a successful e-commerce order management system?

A successful system is crucial for ensuring efficient order processing, timely delivery, and excellent customer service. It helps optimize inventory levels, minimize errors in order fulfillment, and enhance overall operational efficiency. All this ultimately leads to improved customer satisfaction and loyalty.

How do EMS and OMS differ from each other?

EMS (Enterprise Management System) typically refers to a broader system that encompasses various aspects of business operations. This may include order management, inventory management, customer relationship management (CRM), and more. On the other hand, OMS specifically focuses on managing and processing customer orders from start to finish.

How do you select the best e-commerce OMS to meet your business needs?

To select the best e-commerce OMS for your business, you should consider a few factors. This includes your business size and complexity, specific requirements, integration capabilities with your existing systems, scalability, ease of use, customer support, and pricing. 

Evaluate different OMS options based on these criteria to find the solution that best fits your business needs.