A to Z of E-commerce Order Management System

Workers with Ecommerce order management system
  • Posted On: September 4, 2024

Ever been frustrated by shipment delays and long lead times? You’re definitely not the only one.

74% of businesses has faced these exact challenges. That’s where an ecommerce order management system comes into play.

Imagine having a tool that helps you keep everything organized, reduces delays, and keeps your customers happy.

It’s not just about managing orders; it’s about streamlining your entire process to avoid those costly setbacks.

By implementing an ecommerce order management system, you can gain better control over your inventory, improve order accuracy, and ensure timely deliveries.

This system allows you to monitor every step of the order process, from the moment a customer clicks “buy” to the time the package arrives at their doorstep.

So, if you’re ready to stop letting delays hold you back, it’s time to find out how an ecommerce order management system can make a real difference for your business.

What is an Ecommerce Order Management System?

An ecommerce order management system gives you the ability to see your orders in real time and lets you manage all your customer orders in one convenient place.

Some systems even offer a two-way sync, ensuring that order information flows seamlessly between your order management system and your ecommerce platform. This means you have full visibility into the entire process.

By automating the flow of sales order information throughout your supply chain, you can keep everything running smoothly.

With this functionality, you can track a customer’s order from the moment they check out to the time it’s delivered, and even handle returns efficiently.

In a nutshell, an orders management system helps you organize and automate everything needed to ensure your customers receive their orders on time and in perfect condition.

What is Order Processing Definition?

Order processing is the step-by-step workflow that happens after a customer places an order and before they receive their product.

In simple terms, order processing definition refers to the entire process of picking, packing, and shipping the items a customer has purchased.

This includes checking the inventory, confirming the order, preparing the products for shipment, and finally, delivering them to the customer.

Understanding the order processing definition is crucial for businesses to ensure that orders are handled efficiently, and customers receive their products on time.

Common Order Management Challenges

Managing orders might seem straightforward, but it comes with its own set of unique challenges that can catch even the most experienced businesses off guard.

While most people are familiar with common issues like inventory mismatches or delayed shipments, there are lesser-known challenges that can significantly impact your order management process.

1. Handling Returns Efficiently

Managing returns isn’t just about taking back the product; it involves restocking, processing refunds, and updating inventory.

If the return process isn’t streamlined, it can lead to delays, lost inventory, and even unhappy customers.

Efficiently handling returns requires a well-organized system that can track each step and ensure everything is processed correctly.

2. Scaling with Demand Fluctuations

As businesses grow, so do the challenges of adapting to sudden changes in demand.

Whether it’s a seasonal spike or an unexpected drop, managing inventory and fulfilling orders during these times can be difficult.

Without a flexible order management system, businesses risk overstocking, which ties up capital, or stockouts, which lead to missed sales opportunities and frustrated customers.

3. Maintaining Data Accuracy Across Platforms

When businesses operate across multiple sales channels, ensuring that data remains accurate and consistent can be a daunting task.

Each platform may have its own way of processing orders, leading to discrepancies in inventory levels, order status, or customer information.

Without a centralized system to synchronize data, these inaccuracies can result in shipping errors, customer complaints, and lost revenue.

These challenges highlight the importance of having a robust order management system in place to navigate the complexities of modern business.

Benefits of Using Order Management Systems in Ecommerce

Using order management system in ecommerce

By 2027, almost a quarter of all retail shopping is expected to happen online.

As more people turn to ecommerce, businesses need to keep up with the increasing number of orders and the challenges that come with them.

Managing these orders efficiently is becoming more important than ever. That’s where a good order management system comes in.

Let’s talk about the benefits of using an order management system in ecommerce and how it can help your business stay ahead in the game.

1. Lower Order Fulfillment Errors

When you’re only shipping orders a day, it’s easy to avoid mistakes. You pick the correct product, package it, print the shipping label, and send it off without much hassle.

But what happens when your business starts booming? Orders start pouring in around the clock from all over the world through multiple sales channels.

At the same time, you’re getting flooded with customer inquiries about their order status, complaints about delivery times, and requests for refunds. With all that complexity and a high volume of orders, it’s natural to start making order fullfilment mistakes.

Sending the wrong products, shipping to the wrong addresses, or dealing with delayed shipments can really hurt your business’s reputation as it grows.

This is why having a reliable order management system is so crucial. Automating and synchronizing your processes reduces human error.

While things might still go wrong occasionally, a good system such as Teamship will help you scale your business without getting overwhelmed.

2. Reduced Inventory Costs

Ever wondered how to keep your inventory costs low while managing stock more efficiently? 

One of the best ways is by using an Order Management System (OMS) like Teamship’s unified inventory management system

Here’s how it helps:

  • Centralized Management: Move stock between locations with ease, all from one central platform. 
  • Automated Processes: Set rules for tasks like packing, reducing manual work and saving time. 
  • Smart Insights: Get data-driven recommendations for optimal storage and inventory updates. 

Teamship’s system makes orders management easier while keeping costs down.

3. Centralized Sales Management

Imagine running an online business where all your sales channels are connected and managed from one central platform.

Sounds like a dream, right? This is exactly what an order management system in ecommerce can do for you.

One of the key features that make this possible is API integration. By integrating APIs, you can simplify complex processes, automate time-consuming tasks, and streamline entire workflows.

This not only saves you time but also reduces the chances of human error. With everything connected and automated, managing your ecommerce orders becomes much easier and more efficient.

At Teamship, we take this a step further by offering robust API integration within our order management system ecommerce platform, ensuring all your systems work together smoothly and efficiently.

4. Simplified Invoicing for Clients

Billing clients for various costs can be one of the most time-consuming tasks in manual 3PL and warehouse management.

With an order management ssytem, invoicing becomes clear and straightforward, especially when it comes to charging for fulfillment costs.

It breaks down everything from shipping fees to picking, packing, and storage costs, making it easier for logistics and fulfillment partners to operate efficiently.

Plus, Teamship integrates seamlessly with various accounting systems, allowing you to import and export invoices without the hassle of duplicated data entry, making your order management system ecommerce experience smoother.

5. Eliminate Paperwork

Tired of dealing with endless paperwork? Switching to an order management system like Teamship can be a game-changer.

Not only does it allow you to access the platform from anywhere, but it also eliminates the need for hosting capabilities and physical documents.

By digitizing your documents, you save time, space, and make information transfer easier. A cloud-based order management system ecommerce solution also enhances security.

Unlike physical documents that can be lost, damaged, or destroyed without notice, digital files are easier to track and protect.

Moreover, you save on costs for paper, printers, ink, postage, and office space, while also freeing up employee time for more critical tasks like audits and managing high-volume tasks.

Simplify Your Order Management with Teamship

Managing your orders doesn’t have to be a challenge.

With Teamship, you can streamline the entire process and keep everything running smoothly.

Let’s see how our platform makes order management easier for you:

1. Accurate Pick and Pack Fulfillment

Our pick and pack fulfillment feature ensures that every order is handled with precision.

By automating this process, we minimize mistakes and speed up order processing, so your customers receive their products quickly and accurately.

2. Dual Scan Process for Extra Accuracy

We take accuracy seriously, which is why we’ve implemented a dual scan process.

By scanning each item twice during the pick and pack stage, we significantly reduce errors, making sure that every order is packed just right.

3. Shipping Price Comparison for Cost Savings

Why settle for the first shipping option?

With our shipping price comparison tool, you can easily compare rates across multiple carriers, helping you choose the most cost-effective option while ensuring your packages arrive on time.

Schedule a demo today and discover how we can help you manage your orders with ease.

Final Thoughts

Managing orders can feel overwhelming, but with the right approach, it doesn’t have to be.

By focusing on accuracy, efficiency, and cost savings, you can really streamline your process and keep your customers satisfied.

Whether it’s making sure orders are picked and packed correctly, adding extra checks for accuracy, or finding the best shipping rates, these little improvements can have a big impact.

It’s all about finding what works best for you and making your order management as smooth as possible. 

Frequently Asked Questions

1. What are the 4 stages of order management?

The order management process typically involves four key stages: first, accepting the order; next, picking, packing, and shipping the items in the order; and finally, tracking the order until it reaches the customer. 

2. What is an example of order management?

An order management system helps you view and manage all sales order data in one centralized place, making it easier to analyze and make informed decisions.

For instance, Teamship’s system allows you to see where your customers’ orders are coming from geographically, helping you make better logistical decisions.

3. What is the order life cycle?

The order life cycle represents the journey of an order from start to finish, combining several traditional business documents, like purchase orders, invoices, and receipts, into one comprehensive document.

The life of an order begins with the customer’s initial request and follows it through to fulfillment.

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