Order Management Guide for Online Businesses

an order of pink glasses and an orange bag

To build a profitable, sustainable, and scalable eCommerce business, you need to understand everything about management, be it the order, product, customer, or staff.

There are many things to think about when it comes to ordering management. Notably, a minimal mistake would possibly cost you a fortune. That’s why a workable approach is important to run your store.

What is eCommerce order management?

Order management entails keeping track of all orders that come to your business and managing the processes you need to fulfill them. It covers everything from order placement to delivery. It also includes after-sales experience and dealing with any issue on returning the products.

Steps of eCommerce order management process

An order management process can be explained by the product lifecycle. Above all, its essence is to satisfy the customers’ needs and generate sales.  


The process begins before the customer decides to place an order. The management system should allow for real-time inventory changes when a customer places an item in the shopping cart. Once the item is included or abandoned, the system will send a notification so that your staff knows what is going on. 

Order placement

Once the customer decides to buy the product, the platform communicates with the back-office system to ascertain credit card payment before processing it. Once the order is approved, the next step is to fulfill the order.

Order fulfillment 

Here, depending on the details of the order, the system will optimize warehouse selection. Furthermore, it will automatically calculate the shipping costs and propose available shipping carriers your customer can choose from.

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Warehouse Management 

Once a particular product is out of stock, the order management system can communicate with your suppliers and vendors to send the item. However, you can avoid issues like out-of-stock orders when your system is automatically configured.


Once the warehouse picks, packs, and ships the item, the system will send a message to the customer, notifying them their order has been shipped. Furthermore, the information will include the order details and shipping address.

Returns and refunds

Peradventure a customer isn’t satisfied with a particular item, he can return it and get the money back. The order management system now communicates the refund request to the back-off system to begin the process. Additionally, it connects to the provider to ensure every data corresponds with the customers’ information before processing the request.

Improve management with automation

Order management is a complicated process. It is not easy to keep track of multiple orders all at once. Therefore, businesses are implementing automation platforms to help them deal with this issue. 

One typical application of the automation app in managing orders is to send an internal and external notification as soon as the order status is changed. This way, both retailers and customers are aware of the changes without further verbal communication. 

ergo workflow automation to send notifications when order status changes

Key features of effective order management

To increase eCommerce businesses, brands are looking for management systems that support their previous infrastructure. However, the number of platforms available might be confusing for anyone.

Here are a few features of an order management system.

  • It eradicates the manual system of doing things
  • It provides a global system
  • Reports and predict stocks needs
  • Works on all channel
  • Integrates on all company system
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