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Understanding Order Management for eCommerce Businesses

September 7, 2021

6 min read

When it comes to eCommerce, your order processing indeed decides the fate of your delivery. If the order processing takes a long, the delivery will be delayed, and the overall experience will be unsatisfactory. However, if the order management and order processing is organized and done on time, it can significantly reduce the shipping time and improve the delivery experience by many folds.

Order management may seem like a small aspect of the entire supply chain, but it plays a critical role. If there is no check in the incoming orders, it can lead to a missed processing and eventual cancellation of the order. Thus, order management is the joining link between inventory management and shipping, and it must be taken seriously if you want to achieve 100% order accuracy. 

Let’s dive deeper and look at what order management is and how it can be transformational for your e-commerce business. 

What is Order Management?

Order management refers to the process of receiving, tracking and fulfilling all incoming orders.

Order management starts when you receive an order and includes all the processes till the product is finally delivered.

It is essential to automate this process not to be confused or overwhelmed by the number of orders coming in.

What is an Order Management System?

An auto management system is one view where you can manage all your orders. It is like a software design to sync up with the inventory and warehouse management systems to pass the correct information to your website and customers. 

It helps you stay on track with the order processing and enables you to track the incoming orders.

For example, if you start your business and receive only ten orders a day, it might not be essential to have an order management system in place to track these orders. However, when you expand your business and start receiving up to 500 orders in a day, it can get difficult to see which orders have been processed and shipped and which have not. Therefore, an order management system will update this information and give it to you in a single view so that you do not have to scout all boxes and inventory to check the same. 

Why is Effective Order Management Essential?

Effective order management can make and break your system. Let’s have a look at why it is essential for your business – 

Avoid Stockouts 

If you have effectively managed all your incoming orders, there is a lesser chance that you will face synchronized your inventory and order management systems are appropriately synchronized. The inventory will automatically get updated once you process an order and ship it. This will prompt the inventory management system to reorder stocks that are going out of an account, and you will be able to replenish stock sooner. 

Eliminate Accumulation of Dead Stock

On the contrary, if the order management system does not sync with the inventory, it can also accumulate debt stock. This means that you will never have an idea of the unutilized talk, and you might re-order it too. Stocking and getting rid of dead stock can be much more time-consuming and resource-draining for your business.

Lesser Delays

A prompt order management system can help you reduce the order to ship time by giving you the correct information at the right time. This ensures fewer delays in order processing, and order accuracy is maintained across all fronts. This also pushes you further towards a positive delivery experience for the buyer. 

Reduced Errors

With an automated system in place, you can streamline operations, reduce manual intervention and eventually reduce any errors that come in with the same. When you have several orders coming in from different channels, it can get difficult to process each one of them correctly. With an auto management system in place, you can keep track, record, and process all orders conveniently. 

Faster Fulfillment

With the help of reliable information and a faster order to ship time, an order management system can help you fulfill all incoming orders faster and save you time and energy for other operations.

SR Fullfilment

Steps Involved in Order Management and Order Processing

Order Receiving

The first step involved in order management and order processing his order receiving. In this step, all the orders placed by your customer on the website or social media channel or updated, and the order management system marks them as incoming orders. 


After an order is received, the next step is picking the order from the designated aisle and rack in the fulfillment center. This is done by picking executives with the help of HTT machines that scan barcodes and synchronize between the order management and inventory management system. 


After picking, the order is packaged and labeled with all the necessary information. 


After packaging, the product is shipped with the courier companies, and they pick up the order from the fulfillment center or warehouse. 


If the product is undelivered for any reason or returned by the customer, it is also part of the order management system. 

How Can You Improve Order Management With Shiprocket Fulfillment?

Shiprocket Fulfillment has eight fulfillment centers located across the country. All these fulfillment centers are equipped with the latest tech stack required for order processing.

This enables you to deliver orders 3X faster as you store them closer to your customers. You have a skilled team that processes all incoming orders for you. You can reduce the order to ship time and meet all your website and marketplace requirements without having to lift a finger. 

Shiprocket Fulfillment gives you an end-to-end solution that can help you streamline your e-commerce fulfillment operations, reduce dependency on dynamic factors, and enables you to improve your customer’s delivery experience. 


Order management can help you improve your e-commerce fulfillment supply chain. Make sure you optimize your order processing and auto management operations to ensure seamless fulfillment for your business. 

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Danish Khan

Content Writer @ Shiprocket

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