Order Management System Software: Streamline Ecommerce Operations
Customer expectations are higher, sales channels are more varied, and fulfilment requires tight coordination across warehouses, suppliers, and delivery partners. One area that makes or breaks this process is order management. Without a clear view of orders—where they originate, their status, and how they are fulfilled—businesses risk delays, lost revenue, and unhappy customers.
This is where order management system software becomes indispensable. More than just a tool to track purchases, modern OMS platforms connect ecommerce storefronts, warehouses, carriers, and back-office systems into a seamless network. By implementing the right solution, retailers can improve efficiency, cut costs, and deliver a smoother experience for customers.
This article explores what order management system software does, why it matters, and how ecommerce leaders can choose the right platform for their business needs.
What Is Order Management System Software?
At its simplest, order management system software (often shortened to OMS) is a platform designed to track and process sales orders from the moment they are placed until they are delivered and completed. It acts as a central hub that integrates information from:
- Online stores (Shopify, Magento, WooCommerce)
- Marketplaces (Amazon, eBay, Etsy)
- Physical retail systems (POS terminals)
- Logistics providers (couriers, fulfilment centres)
- Enterprise systems (ERP, CRM, accounting software)
An OMS provides real-time visibility into inventory levels, customer orders, shipping progress, and returns. Instead of manually reconciling spreadsheets or juggling emails between departments, teams can rely on one centralised platform.
Key Features of OMS Software
- Centralised order tracking – All orders, regardless of sales channel, are visible in one dashboard.
- Inventory synchronisation – Stock levels are updated across channels in real time, reducing the risk of overselling.
- Automated workflows – Repetitive tasks such as order confirmation, stock updates, and invoice creation can be automated.
- Returns and refunds management – A structured process for handling reverse logistics keeps customers informed and operations efficient.
- Analytics and reporting – Sales performance, fulfilment times, and error rates can be monitored to guide improvements.
Types of Order Management Systems
When evaluating an Order Management System (OMS), it is important to consider not only the features but also the deployment model. The way the software is delivered and managed has a direct impact on cost, flexibility, and scalability. Broadly, OMS solutions fall into three categories.
On-Premise OMS
An on-premise OMS is installed and managed on a company’s own servers.
Advantages
- Greater control over data, security, and system configuration.
- Customisable to very specific business requirements.
- Often integrated tightly with other in-house IT systems.
Limitations
- High upfront costs for hardware, licensing, and IT support.
- Ongoing maintenance requires dedicated technical staff.
- Slower to adapt to new features or integrations compared with cloud-based alternatives.
Why it’s declining
On-premise OMS solutions are becoming less common, particularly for SMEs. The cost and complexity of maintaining infrastructure, combined with the agility of cloud platforms, means most businesses now prefer more flexible models. Large enterprises with strict data security or compliance requirements may still choose on-premise, but the trend is moving away from this approach.
Cloud OMS
Cloud-based OMS solutions are hosted by the vendor and accessed via the internet.
Benefits for SMEs and fast-scaling retailers
- Lower upfront investment, with predictable subscription pricing.
- Automatic updates ensure the system remains current.
- Accessible from anywhere, supporting remote teams and multi-location operations.
- Scalable infrastructure makes it easier to manage peaks in demand, such as seasonal sales.
This model is especially attractive to SMEs that want enterprise-level tools without large capital expenditure. It also suits rapidly growing businesses that need technology capable of scaling with their operations.
Hybrid Approaches
Some businesses use hybrid solutions, often combining OMS modules within a larger Enterprise Resource Planning (ERP) system.
When it works
- Useful for large retailers or manufacturers who already rely on ERP for finance, HR, and supply chain management.
- OMS modules within ERP platforms (e.g., Microsoft Dynamics 365 or Oracle NetSuite) provide consistency across business functions.
- Offers more control than a purely cloud-based OMS but with some of the flexibility and integration benefits of modern platforms.
Hybrid approaches are often chosen by businesses that need OMS functionality as part of a wider suite rather than a stand-alone product, ensuring alignment between order management and other critical operations.
Why Ecommerce Businesses Need OMS Software
Ecommerce growth has been rapid, but with that comes complexity. Customers shop on multiple platforms, expect flexible delivery options, and demand transparency. Without structured systems in place, businesses can quickly become overwhelmed.
Here are some of the most pressing reasons ecommerce businesses invest in order management system software:
1. Rising Customer Expectations: Today’s customer expects next-day delivery, precise tracking updates, and hassle-free returns. Meeting these expectations manually is unsustainable, but an OMS automates updates and streamlines processes.
2. Multi-Channel Selling: Selling across your own ecommerce site, marketplaces, and social platforms introduces challenges. Without synchronised systems, businesses risk overselling or understocking. OMS software ensures inventory and order fulfilment data flows consistently across all channels.
3. Operational Efficiency: Manual order handling is prone to errors. An OMS automates order routing, stock allocation, and shipping label generation—freeing staff to focus on higher-value tasks.
4. Data-Driven Insights: Without visibility, it’s hard to know where delays or bottlenecks occur. OMS reporting provides clarity on fulfilment performance, customer behaviour, and product demand.
5. Scalability: A small retailer may handle 20 orders daily with spreadsheets, but scaling to 2,000 orders per day requires automation. OMS software grows alongside the business. It prevents errors that can occur when order volumes increase suddenly, such as during peak seasons. By streamlining processes, it ensures the business can expand without sacrificing accuracy or customer satisfaction.
Cloud-Based Order Management System Software
In the past, businesses would install OMS solutions on-premises, requiring dedicated servers and IT teams. Today, cloud based order management system software dominates, offering scalability, lower upfront costs, and easier integration.
Advantages of Cloud-Based OMS
The key advantages are outlined below.
Accessibility
Cloud-based OMS platforms can be accessed from anywhere with an internet connection. This supports remote working, enables teams across different locations to collaborate seamlessly, and simplifies management of multi-warehouse operations.
Automatic updates
Software vendors typically manage updates, patches, and system improvements in the background. This ensures businesses are always using the latest version of the software without downtime, manual intervention, or added IT costs.
Integration flexibility
Most cloud platforms are designed with integration in mind. They often include APIs and pre-built connectors for popular e-commerce platforms, payment gateways, and logistics providers, helping retailers streamline operations and improve customer service.
Lower total cost of ownership
Cloud-based systems remove the need for expensive servers, in-house IT teams, or dedicated maintenance resources. Businesses pay a subscription fee, which usually covers hosting, security, and support, resulting in predictable costs and lower long-term expenditure.
Scalability
Cloud services are highly scalable and can adapt to fluctuating order volumes. During busy periods such as Black Friday or Christmas, the system can handle increased demand without performance issues, then scale back down afterwards to reduce costs.
Agility for SMEs
For smaller e-commerce businesses, a cloud-based OMS provides agility and flexibility without requiring large upfront capital investment. This allows SMEs to compete more effectively with larger retailers by offering efficient, reliable order management that can grow in line with customer demand.
Benefits of Order Management System Software for Different Business Sizes
The advantages of an OMS also vary depending on the size and complexity of the business. What a small online shop needs is very different from the requirements of a retailer operating multiple warehouses or a global enterprise managing compliance across borders. By looking at the benefits by business size, decision-makers can better understand how an OMS supports growth at every stage.
Integration of OMS with Other Business Systems
An Order Management System (OMS) rarely operates in isolation. To deliver a seamless experience for both customers and staff, it must integrate effectively with other key business systems. The most common and valuable integrations are with ERP, CRM, and WMS platforms.
OMS and ERP
An Enterprise Resource Planning (ERP) system manages core business functions such as finance, procurement, supply chain, and HR. While an OMS focuses on the customer-facing order journey, ERP provides the wider operational backbone.
- Complementary strengths: The OMS ensures orders are captured, tracked, and fulfilled accurately, while ERP handles the financial accounting and supply chain logistics behind the scenes.
- Business benefit: Together, they give full visibility from customer order through to financial reporting, enabling better forecasting, resource planning, and profitability analysis.
OMS and CRM
Customer Relationship Management (CRM) systems record customer interactions, preferences, and support history. Integrating OMS with CRM ensures that fulfilment is closely tied to customer experience.
- Connected data: Customer service teams can see order status in real time, reducing the need to contact the warehouse or logistics providers.
- Personalisation: Retailers can tailor offers, loyalty schemes, or marketing campaigns based on purchase and delivery patterns.
- Business benefit: Customers enjoy smoother communication and a consistent brand experience, increasing satisfaction and loyalty.
OMS and WMS
A Warehouse Management System (WMS) governs operations inside the warehouse, from picking and packing to inventory tracking and workforce management. It differs from an OMS, which manages the order lifecycle across sales channels.
- Key differences: The OMS decides what needs to be fulfilled and where from, while the WMS dictates how it is fulfilled within the warehouse.
- Why both matter: Without integration, orders may be captured but fulfilled inefficiently. Linking OMS and WMS ensures that stock levels are accurate, picking is optimised, and customers receive their deliveries on time.
- Business benefit: Greater operational efficiency, reduced errors, and a fulfilment process that can scale smoothly as order volumes rise.
Common Challenges Without OMS Software
Operating without an Order Management System (OMS) often creates inefficiencies and risks that directly affect both business performance and customer satisfaction. These challenges become more visible as order volumes grow or when businesses expand into multiple sales channels.
Overselling and Stock Inaccuracy
Without synchronised stock data, businesses risk selling items that are no longer available. This leads to cancelled orders, disappointed customers, and negative reviews. For retailers managing multiple channels such as a website, marketplaces, and physical shops, the lack of centralised inventory control quickly becomes unmanageable.
Poor Customer Communication
When tracking information is late, inconsistent, or inaccurate, customers lose confidence in the business. Without OMS software to connect with carriers and provide real-time updates, “Where is my order?” queries increase, putting pressure on support teams and damaging the customer experience.
Manual Errors in Processing
Relying on spreadsheets or manual data entry leaves room for mistakes in addresses, product codes, or quantities. These errors result in mis-picks, delayed deliveries, and unnecessary returns—all of which add cost and undermine customer trust.
Difficulty Scaling During Peak Seasons
Seasonal spikes such as Christmas or Black Friday can overwhelm businesses without automation. Manual systems that work at low volumes collapse under pressure, leading to bottlenecks, delays, and dissatisfied customers. An OMS provides the scalability and automation required to keep orders flowing smoothly during these high-demand periods.
Comparison of Order Management System Software
With so many OMS options available, decision-makers often struggle to select the best solution. Let’s compare software across a few important dimensions:
How to Implement an OMS Successfully
Choosing an Order Management System (OMS) is only the first step. Successful implementation requires careful planning, collaboration across teams, and a clear focus on outcomes. By approaching the process methodically, businesses can avoid disruption and realise the benefits more quickly.
Assess Current Workflows
Before introducing new software, it is vital to understand how orders are currently managed. Mapping existing processes highlights bottlenecks, duplication, and inefficiencies. This baseline allows businesses to identify the areas where an OMS will deliver the greatest improvements.
Map Integration Needs
An OMS rarely stands alone—it must connect seamlessly with e-commerce platforms, accounting systems, customer service tools, and carriers. Early mapping of integration requirements ensures that the system chosen can work smoothly with existing infrastructure and avoids costly fixes later.
Address Data Migration Challenges
Migrating order histories, customer records, and stock data into a new OMS can be complex. Cleaning and standardising data beforehand reduces errors and ensures accuracy once the system is live. A phased migration approach, starting with a limited set of data or a pilot channel, often minimises risk.
Focus on Staff Training and Adoption
Even the most sophisticated OMS will fail if staff are not confident using it. Training sessions, clear documentation, and ongoing support encourage adoption across fulfilment, customer service, and finance teams. Involving staff in the implementation process also helps build ownership and reduces resistance to change.
Measure Success with KPIs
Clear performance indicators should be set from the outset. Metrics such as order accuracy, fulfilment speed, returns rate, and customer satisfaction provide evidence of improvement. Regular reviews against these KPIs ensure that the OMS continues to deliver value and highlight areas where further optimisation is needed.
Trends in Order Management Systems
Order Management Systems (OMS) continue to evolve as retail becomes more complex and customer expectations rise. Beyond handling orders efficiently, modern OMS platforms are increasingly shaped by new technologies and broader business priorities. Several key trends stand out.
AI-Driven Order Routing
Artificial intelligence is playing a greater role in determining how orders are fulfilled. By analysing factors such as customer location, stock availability, carrier performance, and delivery cost, AI-driven routing assigns each order to the most efficient fulfilment centre or warehouse. This reduces delivery times, minimises costs, and improves the overall customer experience.
Real-Time Inventory Forecasting
Accurate forecasting is essential for avoiding both overstocking and stock-outs. OMS platforms are incorporating predictive analytics that monitor sales velocity, seasonality, and external data to anticipate demand. This allows businesses to maintain optimal stock levels across multiple locations, reducing waste and lost sales.
Sustainability and Efficiency
As sustainability becomes a higher priority for retailers, OMS software is being used to reduce environmental impact. By consolidating shipments, optimising delivery routes, and avoiding unnecessary returns, OMS platforms help cut emissions and improve efficiency. This trend is particularly important for businesses aiming to align with corporate sustainability goals or customer demand for greener practices.
Mobile-First Dashboards
With teams often working across warehouses, shops, and offices, mobile access is increasingly vital. OMS vendors are developing mobile-first dashboards that allow managers and staff to track orders, update stock, and resolve issues on the go. This flexibility supports faster decision-making and keeps operations moving smoothly.
How Bezos Combines OMS Software with Fulfilment Services
When evaluating order management system software, it helps to look at providers that go beyond the software itself and offer an end-to-end fulfilment network. Bezos is one example of how OMS technology can be integrated with physical logistics infrastructure to create a complete solution for ecommerce businesses.
Fast and Simple Onboarding
Bezos is designed for speed. Sellers can connect their ecommerce store or marketplace in under a week, with integrations available for more than 30 platforms, including Shopify, WooCommerce, Amazon, and eBay.
Once stock is delivered to a Bezos fulfilment centre, it is typically booked into the system within 48 hours, meaning retailers can begin fulfilling customer orders almost immediately.
Multi-Country Fulfilment Network
One of the challenges ecommerce businesses face is managing stock and delivery across regions. Bezos operates warehouses and fulfilment centres across the UK, Germany, the Netherlands, and the US, giving retailers the ability to serve customers internationally without setting up their own logistics operations.
By linking this network with OMS software, sellers gain real-time visibility of inventory levels across multiple countries and can expand into new markets more easily.
Transparency and Control
Through the Bezos seller portal, businesses can track inventory, orders, and shipping progress in real time. This transparency not only reduces the number of support tickets customers raise but also helps retailers make quicker decisions on stock replenishment and order routing. A dedicated account manager and support team ensure issues are resolved quickly, with a two-hour average response time.
Scalable Operations
For small and mid-sized businesses, scaling fulfilment can be one of the biggest hurdles to growth. By outsourcing logistics to Bezos while relying on its OMS-driven platform, sellers can scale from handling a few dozen orders per week to thousands per day without changing their internal processes. The software automatically manages order allocation, labelling, and courier selection, while the fulfilment network handles storage, packing, and delivery.
Why it matters: By combining OMS functionality with physical fulfilment, Bezos allows retailers to focus on growth and customer relationships rather than day-to-day operational challenges. It highlights how OMS software isn’t just about technology—it’s about enabling scalability, accuracy, and international reach.
Ready to Simplify Your Order Management?
If you’re looking for a solution that combines the power of order management system software with a proven fulfilment network, Bezos can help. With fast onboarding, real-time visibility, and international reach, you can scale your ecommerce operations without the complexity of managing logistics in-house.
Get a quote today and see how smarter order management can accelerate your growth.
Conclusion
Order management system software is no longer a luxury for ecommerce—it’s a necessity. From handling multi-channel orders to ensuring smooth fulfilment and returns, OMS platforms provide the structure and automation that growing businesses need.
Whether you’re an independent retailer or a large-scale ecommerce operator, choosing the right OMS can transform operations. Cloud-based solutions bring flexibility, while affordable platforms give smaller businesses access to enterprise-style tools. By understanding your requirements, comparing features, and prioritising scalability, you can implement a system that supports smarter, faster, and more reliable fulfilment.
FAQs
What software is used for order management?
Order management is handled through dedicated order management system (OMS) software, which centralises and automates the process of capturing, tracking, and fulfilling customer orders. Popular options include Microsoft Dynamics 365 Intelligent Order Management, Oracle NetSuite, Zoho Inventory, Cin7, and Brightpearl. Many ecommerce platforms such as Shopify or Magento also offer built-in order management tools, though they are often less advanced than standalone OMS software. Some businesses integrate OMS functionality within ERP or fulfilment systems. The best choice depends on company size, sales channels, and complexity of operations.
What is OMS software?
OMS software, short for Order Management System software, is a platform that tracks and manages customer orders from purchase through to fulfilment and returns. It acts as a central hub connecting ecommerce storefronts, marketplaces, warehouses, shipping carriers, and back-office systems. Core functions include real-time inventory synchronisation, order routing, shipping updates, and returns management. By consolidating this data, OMS software reduces errors, improves efficiency, and creates a smoother customer experience. It is widely used in ecommerce, retail, wholesale, and manufacturing.
Is OMS a CRM system?
No, an OMS is not the same as a CRM. A Customer Relationship Management (CRM) system focuses on managing customer interactions, sales pipelines, and marketing communications. In contrast, an Order Management System (OMS) focuses on operational fulfilment—tracking stock, processing orders, managing shipments, and handling returns. While they serve different purposes, OMS and CRM systems often integrate so businesses can connect customer insights with order history. This integration helps provide a more complete view of the customer journey.
Is SAP an OMS?
SAP is primarily known as an ERP (Enterprise Resource Planning) system, but it includes modules that cover order management functions. This means SAP can act as an OMS, particularly for enterprises that need integrated processes spanning finance, procurement, inventory, and logistics. However, it is broader than a dedicated OMS and may be more complex and costly than smaller retailers require. Businesses often choose SAP when they need a unified system for large-scale operations rather than just order management. For SMEs, a specialised OMS may be more practical and affordable.
