Order Management System (OMS) for ecommerce business: everything you need to know

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There is no shortage of business abbreviations and acronyms out there. The “OMS” abbreviation is probably one of the more critical ones for ecommerce business owners to understand.

In this succinct post, you’ll learn everything you need to know about what an order management system (OMS) is, why it’s important and how to implement it in your ecommerce business.

Let’s get started.

OMS meaning for ecommerce businesses

An OMS (order management system) is a software platform that helps ecommerce businesses manage their order fulfillment processes from start to finish.

It integrates with an ecommerce website and other sales channels to streamline and automate various aspects of the order management process, including:

  • Logistics management
  • Inventory management
  • Order capture, entry, and processing
  • Customer service

Key features of an OMS

A robust order management system will act as the hub for all inventory management operations in an ecommerce business.

When choosing an OMS, companies should ensure their software of choice offers the following feature sets:

Logistics management

Probably the most fundamental feature of an OMS is the ability to manage and optimize logistics. An order management system can help ecommerce businesses keep track of their inventory levels, shipping schedules and delivery routes.

Companies can ensure products are delivered to customers on time and in good condition. The OMS can also provide real-time visibility into the status of each order, so businesses can respond quickly to any issues during the delivery process.

Inventory management

Most order management systems integrate with an ecommerce business’s inventory management system to ensure that orders are fulfilled only if the required products are in stock.

(Or, in the case of Linnworks, order management systems may have inventory control features built in as part of a comprehensive platform. 

This helps to prevent oversells and stockouts, which can lead to dissatisfied customers and lost sales. The OMS also provides real-time updates on inventory levels, so companies can make informed decisions about when to restock products.)

Order entry and processing

If you’ve ever attempted managing orders manually, you know how challenging it is without software.

An OMS automates various steps in the order fulfillment process, including payment authorization, shipping label generation and order tracking.

This enables businesses to process orders quicker and more accurately, reducing the risk of errors and improving customer satisfaction.

The order management system of choice should also provide a centralized view of all orders, making it easier for businesses to manage and fulfill orders from multiple sales channels.

Customer service support

An OMS can also help customer service teams manage customer inquiries and returns, providing them with the information they need to resolve customer issues quickly.

This includes access to order history, shipping information and product information, which can help customer service teams to resolve customer issues more efficiently.

By improving the customer service experience, an OMS can help your ecommerce business build stronger relationships with your customers and increase customer loyalty.

Choosing the right OMS for your business

With so many options available, choosing the right OMS for your business can be a daunting task. Here are some key factors to consider when evaluating different OMS options:

Consider your business goals

Before choosing an OMS, it’s important to assess your business needs and goals. What key challenges is your business facing in the areas of logistics, managing orders and fulfillment operations?

What features and capabilities are you looking for in an OMS? Having a clear understanding of your business needs and goals will help you to narrow down your options and find an OMS that meets your specific requirements.

Evaluate each software feature against your goals

When evaluating different OMS options, it’s important to consider the features and integrations offered by each option.

An OMS that integrates with your existing ecommerce platform and other sales channels, such as marketplaces and brick-and-mortar stores, can help to streamline your operations and reduce errors.

You should also consider the specific features offered by each OMS, such as real-time inventory management or order tracking, to ensure that it meets your business needs.

Consider the cost and scalability of the OMS software

Cost is also an obvious consideration when choosing an OMS. Some OMS solutions are offered as a subscription service, while others require a one-time purchase. It’s important to evaluate the cost of each option and determine whether it is within your budget.

Additionally, you should consider the scalability of the OMS, as companies grow and change over time. An OMS that is flexible and scalable will be able to meet the changing needs of your business.

Try a free trial or see a demo of the software before buying

Many OMS providers offer free trials or demo versions of their software, so be sure to take advantage of these opportunities to ensure that you invest in the right OMS that can both meet your business needs and grow with your business. 

FAQs about OMS (order management systems)

What are the benefits of using OMS software?

OMS software can significantly improve the efficiency and accuracy of an ecommerce business’s order management operations.

This, in turn, can lead to improved customer satisfaction and increased sales, as customers are more likely to return to a business that provides a smooth and reliable ordering experience.

How does an order management system integrate with an ecommerce website and other sales channels?

An OMS integrates with an ecommerce website and other sales channels, such as marketplaces and brick-and-mortar stores, to streamline the order management process.

The OMS captures customer orders from these various sales channels and integrates with the inventory management system to ensure that orders are fulfilled only if the required products are in stock.

OMS software like Linnworks also integrates with over 100 other mission-critical ecommerce platforms, including popular marketplaces like Amazon, eBay and Walmart, as well as shopping carts such as Shopify and Magento.

How is OMS software different from inventory control software?

Order management system software and inventory management software are related but distinct systems that serve different purposes in an ecommerce operation.

Inventory management software is primarily focused on managing and tracking a business’s stock levels, setting reorder points and generating purchase orders. The goal of inventory management software is to ensure that a business always has enough stock on hand to meet customer demand.

On the other hand, OMS software is designed to manage the entire order fulfillment process, from the moment a customer places an order to the moment the order is delivered to the customer.

In addition to inventory management, an OMS includes features such as order capture, payment processing, shipping and tax calculation and customer service support.

Thankfully, Linnworks accomplishes everything you need in an OMS as well as an inventory control system.

This means that with Linnworks, ecommerce businesses can manage their entire order fulfillment process, from order capture to customer service, while also keeping track of their inventory levels, reorder points and purchase orders.

By combining these two essential functions into one platform, Linnworks streamlines ecommerce operations and saves companies time and resources.