Ecommerce is the future of shopping. Fact.

Ecommerce sales are expected to be worth $4,117 billion in 2024, accounting for just under 20% of all retail sales. By 2027, industry experts forecast this figure will soar to between $1.6 trillion and $1.720 trillion. That’s a massive compound annual growth rate (CAGR), meaning that online shopping activity could be responsible for as much as 47% of all global retail sales in just a few short years. 

In such a fast-paced and rapidly evolving environment, efficient supply chain management can make or break your business – especially when the ‘big boys’ of online retail (hey there, Amazon and eBay, we’re looking at you) already have comprehensive order management software in play to ensure smooth sailing. 

So, how do smaller players cut their teeth and make their mark in such a competitive landscape?

With online shopping becoming the norm, choosing the best order management system (OMS) is the most reliable way to streamline your operations, boost customer satisfaction and keep you in pace with (and hopefully, ahead of!) the competition. And the good news is there are some excellent, cost-effective solutions out there for smaller ecommerce sellers looking to make waves. 

In this guide to finding and utilizing the best order management software, we’ll walk you through everything you need to know, including:

• What is an order management system?
• Why you need an order management system
• The benefits of using order management software
• Key features of the best ecommerce order management software
• How to create a shortlist of suitable OMS options
• Selecting and implementing the best order management software for your business

Ready to get going? Then, let’s begin with the basics and move on from there. 

What is an order management system?

We know that learning about order management systems and finding the best ecommerce order management software for your growing online business can feel like a daunting task. After all, it’s a big step – and technology can be scary, we get that! But don’t sweat it! The base premise is more straightforward than most people think. 

An order management system is simply a digital tool that automates and streamlines your order fulfillment process, from order placement to delivery and returns. The best order management systems facilitate seamless integration across multiple sales channels, factoring in every process involved to ensure fast and accurate fulfillment and happy customers every time. Key functions of effective multi-channel order management include:

• Order routing
• Inventory synchronization
• Shipping and returns
• Data aggregation and reporting

Why you need an order management system: TL;DR

The best order management software systems are designed to eliminate one of the most basic yet most significant problems with ecommerce operations. 

What’s that, you ask? 

Put simply, it’s the fact that customers who have issues receiving their orders are less likely to order from you again. Plus, you’ll also miss out on those all-important recommendations and referrals that are integral to helping your business grow (fun fact – the return on investment from referrals is typically 3-5 times greater than that from non-referred customers). 

But knowing what to order, when to order, when to restock, where to keep stock and where your orders are. That can all get incredibly complex incredibly quickly. That’s where an order management system comes in. It makes your life easier — and helps you make more money.

The bottom line is that while some small businesses and hobbyists may still be able to limp along managing inventory and orders the old-fashioned way (with spreadsheets, Excel docs and the like. Eugh, the headaches!), it’s not a long-term solution for SMBs and larger 

businesses. 

So, if you’re serious about online selling, want to earn maximum revenue and even come close to competing on a level playing field, not having an OMS simply isn’t an option in today’s increasingly tech-driven business climate.  

Why you need an order management system: The longer version (with specific benefits)

Having established the necessity of an order management system, it’s time to look at some of the specific benefits of using one. Let’s dive straight in.

Improved efficiency

Efficiency isn’t just a buzzword. It’s your new best friend! An efficient OMS eliminates all of those mundane, boring tasks, giving you more time to focus on growing your business – and finally getting around to taking that extended lunch break! 

Save time and reduce errors – By automating routine tasks like order processing, inventory synchronization updates and shipping notifications, you save valuable time and reduce the risk of pesky human errors. This can also equate to significant cost savings. Sure, everyone makes mistakes and minor errors might not seem like a big deal. However, they can cause businesses to lose millions of dollars per year. 

Integrate with other business systems – Teamwork makes the dream work – and your OMS is the linchpin keeping it all together. As we’ve already highlighted, the best order management software integrates with all your other systems  – like ecommerce platforms, accounting software, ERP (enterprise resource planning) and CRM (customer relationship management) tools. Seamless integration ensures your business processes work harmoniously, further reducing manual input and increasing overall efficiency.

Enhanced customer experience

Customers today are all about instant gratification. And that’s fine, because the best ecommerce order management software is like a superhuman employee who never sleeps, allowing you to maintain 100% focus on your customers – even while you’re all tucked up for the night or busy with other things. 

Fast and accurate fulfillment – Order management systems never slack off, call in sick, or even take a toilet break! They’re on high alert 24/7 to ensure your orders are processed quickly and accurately. This reduces the likelihood of delays, leading to happy customers who are more likely to buy from you again.

Real-time tracking and updates – Modern consumers expect to know the status of their orders at all times. With advanced, real-time tracking and update features, the best order management systems allow you to keep customers in the loop by providing detailed and pinpoint-accurate shipping and delivery notifications. 

Scalability

With the right OMS in play growing pains become a thing of the past, because scalable solutions allow you to level up without breaking a sweat. Here’s how. 

Easily manage increased order volumes – Your business grows in line with your order volume. Most OMSs (but not all, hence why choosing the best order management software is imperative) are designed to handle increased demand, allowing you to scale your operations without sacrificing efficiency or accuracy. 

Explore new sales channels and marketplaces – Expanding to new sales channels and marketplaces is essential for growth. Advanced OMSs can manage orders spanning hundreds of platforms, ensuring your operations remain streamlined and efficient across multiple channels. 

Cost savings

Why pay for additional man-hours when a machine can do it faster, better and cheaper? Smart inventory management tools mean less waste and more profit, making the investment a total no-brainer. 

Reduced labor costs – Automating and optimizing order management processes reduces the amount you spend on manual labor (and their associated errors!), leading to significant cost savings over time. 

Reduced overheads – The best order management system can slash virtually all your overheads by managing inventory more effectively. For example:

• Reduced storage costs – No more paying for warehouse space you don’t need.
• Lower shipping expenses – Automatically find the best rates and routes.
• No more stockouts and overstocking – Keep your inventory just right, Goldilocks-style.

Key features of the best order management software: a checklist

Shopping around for the best OMS can be confusing – especially for entrepreneurs from a non-tech background. So, here’s a quick checklist of the essential features to look for: 

• A user-friendly interface with centralized data.
• Multi-channel order management.
• Warehouse management system (WMS) integration.
• Real-time inventory management and tracking.
• Automated order processing and fulfillment.
• Customizable workflows to fit your specific business needs.
• Real-time analytics and reporting (covering sales trends, inventory performance, customer behaviors, etc.).
• Advanced data security and compliance. 
• Comprehensive onboarding, training and ongoing support.

Top tip for OMS shopping 

No, we’re not going to go all cheesy on you with the whole ‘buy cheap, buy twice’ false economy mantra. Although, in fairness, there is some merit to that when looking for the most cost-effective solutions.

You see, the primary factor to bear in mind is that the decision you make right now isn’t just about having an order management system per se. It’s about picking the best ecommerce order management software that will also support your future goals with minimum disruption. So, spending a little extra in the short term may be worth it to avoid repeating the process down the line when you outgrow your starter software.  

How to shortlist the best order management systems for your business

Not sure where to begin on creating a shortlist of options and narrowing them down? Here’s a step-by-step guide to walking through the maze of options and finding the right solution based on the unique needs of your business.  

1. Assess your business needs

• Identify your current order management challenges.
• Determine the features that are most important for your operations.

2. Research and compare options

• Look for reputable providers with a proven track record.
• Compare features, pricing and customer reviews.

3. Consider integration capabilities

• Ensure the OMS can integrate with your existing systems (ERP, accounting software, CRM tools, etc).
• Check for API availability and integrations for customizable workflows.

4. Evaluate ease of use

• Look for an intuitive, user-friendly interface.
• Carefully consider the learning curve for your team.

5. Focus on scalable solutions

• Ensure all of your shortlisted options can grow with your business.
• Look for flexible pricing plans that accommodate your growth.

The best order management software for ecommerce operators

Yep, you guessed it, it’s time for a bit of shameless self-promotion! Well, you didn’t really think we’d give you all the basic info and not tell you more about all the ways we can help, did you?  But stick with us. We promise not to cheese it up too much! 

At Linnworks, order management is our jam and we’ve been helping businesses grow and refine their selling strategies for years. In 2022, Linnworks and SkuVault merged, bringing together a shared vision, a wealth of experience, comprehensive industry insights and a host of innovative solutions that extended our capabilities to help businesses with more complex warehousing operations. 

So, what makes Linnworks and SkuVault Core the best order management software options on the market? Together, we strive towards that same goal: making ecommerce operations easier, more efficient and accessible for everyone. 

1. Linnworks

Linnworks order management software allows growing businesses to save time and money with advanced order management automation that works across over 100 integrations with leading platforms. Our OMS enables users to create specific workflows around repetitive tasks and essential business processes. Key features include:

• Automated order processing and assignment to the appropriate fulfillment center.
• Automated inventory replenishment to ensure optimal stock levels. 
• Automatically generated invoices and purchase orders to simplify admin.
• Access to powerful reporting that provides meaningful business insights
• Exemplary onboarding, training and client support, 24/7. 

2. SkuVault Core

SkuVault Core takes the guesswork out of outdated manual practices with it’s combined inventory and warehouse management system, allowing sellers to create simplified workflows and automate manual tasks to facilitate faster order fulfillment with better accuracy. Key features include:

• Simplified pick, pack and ship processes, including barcode scanning functionality.
• Real-time analytics and reporting on inventory levels across multiple locations.
• Automated quantity syncing to each of your marketplaces.
• In-depth reporting and analytics for data-driven decision-making. 
• Full customer support and client portal resources, 24/7. 

Implementation

When you partner with Linnworks, we’ll assign you a dedicated project team to develop a well-structured implementation plan that aligns with your business goals. Your plan will include:

• A detailed implementation timeline.
• A thorough breakdown of resource allocation.
• Risk mitigation analysis, factoring in potential operational disruptions, data security and compliance with industry regulations.
• Comprehensive staff training.
• Continuously optimized workflows for enhanced efficiency.
• Performance metrics to ensure we’re meeting your needs.
• Ongoing support and resources.

Ready to learn more? Request a demo today to see our world-class OMS in action, or fill out a quick contact form to speak to one of our experts and see how we can help your business grow.