The Importance of Order Management in E-commerce: Tips for a Streamlined Process

Once a customer places an order, the order management process begins. The process from ordering to delivery is called the order management process. When the customer receives their order, it means for them that the order is complete and for the company “profit” and a “satisfied customer.

Despite our simple thinking, order management is a complicated process. In fact, from the moment a customer places an order, there will be a succession of processes to get the package to the customer.

What is order management?

Order management includes the entire process from an order to the delivery of a product to the customer. This involves a variety of operational processes, systems, people and collaborations.

Just think about that pair of shoes you ordered. Once you place the order, this pair of shoes will have to be packed in a warehouse, then packaged and shipped.

There is more to it than meets the eye, which is why it is essential for companies to have their order management system in place. If not, this can lead to dissatisfied customers wondering where their order is.

Why is an order management system important within e-commerce?

A structured order management system is indispensable for companies within e-commerce. Since customers order something online and you prefer to have it delivered the next day, the order management process will have to run smoothly.

When the order management system is out of order, it can lead to customer dissatisfaction. After all, consumers are not eager to wait days for their packages.

After all, a satisfied customer is someone who will most likely come back. Therefore, the goal is to always meet the delivery promise by having an order management system in place.

What does the order management process look like?

We’ve already explained a little bit about what the order management process looks like, but we’d like to go into a little more detail. Below we explain step by step how this process works in practice:

Step 1: Receiving your order

From the moment a customer places an order, the ball starts rolling. You accept the order once the payment is completed and enter into a “commitment” with the customer, so to speak. It is now up to the company to deliver the order on the agreed date.

Step 2: Order preparation

The second phase of the order management process relates to order preparation. We can divide this section into 3 parts:

Component 1: Order picking

The customer’s order is forwarded to the warehouse, where warehouse workers gather the goods together.

This is perhaps the most important step of preparing an order, as it is essential to pick the right goods.

Then the order pickers will move the items to the appropriate department where the order will be handled further.

Component 2: Packaging

After the appropriate items are collected, it is time for the appropriate department to carefully pack the order to prepare the package for shipment.

The packing station employees are responsible for using proper packing materials to ensure that the goods arrive at the customer in good condition.

Component 3: Shipping

Now that the order has been picked and properly packed, it’s the turn of the warehouse workers at the shipping point. They are responsible for attaching the proper shipping information and forms for the customer.

In addition, they must indicate in all their systems that the package has been shipped to the customer. In doing so, they immediately send a confirmation email to the customer along with tracking information to track their order.

Step 3: Aftersale service

Once the order is delivered to the customer, we are not quite finished with the order management process. After this, in fact, comes the after-sale process.

Contacting the customer for follow-up or feedback is essential for a seller to know if the customer is satisfied with their order. With this, you gather insight into customer satisfaction.

Should the customer not be satisfied, there is a need to process returns and refunds. With every order placed, this entire process will start again from scratch.

How can I set up a structured order management system?

A structured order management system will make the difference between a satisfied customer coming back and a customer going to a competitor. For online stores, it is essential to have the system in order for this reason.

We’d like to offer some tips to give you a head start in setting up a careful order management system.

Tune everything together

Since you are dealing with different processes, systems, departments and possible collaborations during the order management process, it is essential to align all these components.

For example, provide automated systems in the warehouse that allow orders to go directly to the right people to be handled. To do so, appoint responsible persons for each department to oversee the process.

There will also need to be good communication between departments to avoid confusion. This can be automated through appropriate communication systems.

Making clear agreements with external parties

Do you work with outside parties, for example, to deliver the order? Then it is important to make clear agreements about this.

In the case of a courier service, a number of things are important. For example, agreeing on fixed pickup points for packages and creating a link between both parties’ systems.

This eliminates the need to argue back and forth about pickup times and possible errors with orders. After all, you both have insight into each other’s work and progress.

Make use of order management system software

To keep the entire order management process running smoothly, it is necessary to use order management software. Such platforms make it possible to automate all or parts of the process.

Good order management systems allow everyone involved to have access to the necessary information regarding an order at all times. In fact, order management software today can do much more than just process an order.

Order management system software from e-tailize

Do you want to fully automate product and inventory management in addition to the order management process? Then e-tailize is the platform you are looking for.

In addition to automating various processes, it is even possible to manage all your sales channels from a single dashboard.

With more than 100 integrations for marketplaces, e-fulfillment services and more, centralize and automate all your channels from one place.

In addition, our advertize and analyze modules allow you to create and manage ads for all channels from within the platform. You then receive useful data after which you can adjust ads as needed.

Curious about all the features of e-tailize’s platform. Then schedule a demo with one of our employees right away. Together we look at how e-tailize can boost your business!