Order Management in E-commerce

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In E-commerce, order management is an important part to maintain and develop a business. Orders can be received from lots of sources such as business or consumers, with different offers, prices, catalogues and inventories. Beside order fulfillment, order management helps store owner to control the sale flows of their business via orders.

Some blogs also define order management as the same with order fulfillment. However, I think order management is not just a process involved successful delivery to customers. An order management system could be a software-based platform that facilitates and manages the order execution of securities, according to Wiki.

Typically, if you consider order management to be the same with order fulfillment, the process can be these 4 steps:

1. Receive the order

In an online store, the customer browses what you have to offer. Even before a sale takes place, your OMS (Order Management System) is working by displaying correct inventory to the customer, and ensuring your inventory numbers are updated and correct. The OMS can even notify you when a customer places an item in a shopping cart. This can have a great benefit to your business – if a customer ultimately does not make a purchase, you might be able to pinpoint why, or send them an incentive to come back and complete their order.

2. Process the order

When your customer places an order online, in person, or on the phone, your inventory numbers are updated. Most of OMS will begin the tracking process, generating a unique tracking number for your customer that’s linked to their order in your system. Then your order management system will update your projected sales information with this order.

3. Process the checkout

Your customer pays for their items, and your order management system updates your accounting system and generates an invoice or receipt for the customer. Payment information is verified within your OMS.

4. Begin shipping

If your customer is shopping online, they have the option to get their order delivered or picked up in-store. In this case, your OMS will send the customer’s delivery information to your preferred shipping outlet. The order tracking process is updated within the OMS, all the way up to successful delivery.

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