What is an Order Management System? A Pro's Guide to Features, Selection, and Real-World Implementation for E-Commerce

This page defines what an order management system is for e-commerce businesses.

An order management system is a software system that centralizes order processing, inventory management, shipment tracking, and customer data management for e-commerce businesses.

In online stores and e-commerce operations, order management is one of the challenges that inevitably arise as sales expand.

When the number of orders is small, manual processing or Excel may suffice, but as the business grows,

In such cases, an order management system is often considered.

However, when you start researching...

• What exactly is an order management system?
• What features does it have, and what makes it convenient?
• Is it really necessary for our business?

And so on, many questions and concerns come up one after another.

An order management system is an essential tool for streamlining the "order processing" aspect, which is particularly burdensome in online store operations. If you want to learn more about the basics of order management and ways to improve it, please refer to the article below.

What is an order management system?

An order management system is a business support tool that centralizes and manages order information generated on online stores and e-commerce sites, enabling the streamlining and automation of order processing.

When running an online store, various tasks arise every time an order is placed.

• Content confirmation
• Inventory allocation
• Shipping arrangements
• Payment confirmation
• Email communication
• Cancellations

These tasks can be handled manually when the order volume is low, but as the number of orders increases, the risk of human error and delays in processing grows.

To address these challenges, many e-commerce businesses are considering implementing an order management system.

So, what features does an order management system actually have, and what benefits does it offer?

For example, one of its key features is the ability to automatically aggregate and centrally manage order information from multiple sales channels, such as Rakuten, Amazon, Mercari Shops, and your own e-commerce site (e.g., Shopify, Makeshop).

Additionally, it can integrate with related tasks such as inventory management, shipping management, and customer email notifications, making the entire workflow smoother and significantly reducing the time spent on tasks.

In other words, an order management system is essential for supporting the "accuracy, speed, and efficiency" of operations, making it a key element in e-commerce management.

Features of an Order Management System

The features of an order management system are designed to streamline and automate order processing for e-commerce sites and online stores.

To ensure smooth handling of the entire process after receiving an order, many systems come equipped with the following basic features.

Centralized management of order information

Orders from multiple sales channels, such as Rakuten, Amazon, Mercari Shops, and your own e-commerce site (e.g., Shopify, Makeshop), are automatically imported and can be managed on a single screen.

This eliminates the need for manual checks on each platform, reducing errors such as missed confirmations or duplicate actions.

For example, our all-in-one online store management system, "SukeNeko," supports automatic integration with major malls and shopping carts, significantly streamlining daily order processing.

Automated email notification feature

Order confirmation emails, shipping completion emails, cancellation notifications, and other types of emails can be templated and automatically sent.

This not only helps prevent human errors but also improves the speed and accuracy of customer communication.

Integration with inventory management

By automatically handling inventory allocation and stock adjustments, it prevents overselling and inventory discrepancies.

This is especially crucial when selling on multiple platforms, as real-time inventory integration is an essential feature for stable business operations.

In "SukeNeko," order information is integrated with inventory data, helping to avoid missed sales opportunities and potential issues.

Collaboration with Shipment Management

The system offers robust features to support logistics operations, such as automatic generation of shipment instructions, output of shipping label data for delivery companies, and reflecting shipment status updates.

This facilitates smooth coordination with the warehouse and delivery departments.

Customer Management and Record of Support History

The system allows recording of support history for each customer, including cancellations, changes, and inquiries, making it easy to see who handled what and when at a glance.

This helps eliminate dependency on specific individuals and improves the quality of complaint handling.

Integration with External Services

There is an increasing number of order management systems that can integrate with external tools such as accounting software, WMS (Warehouse Management Systems), POS registers, and shipping label issuance systems for delivery companies.

This kind of scalability is an important factor in achieving overall automation and optimization of business operations.

At Sukeneko, we support the overall optimization of e-commerce operations through API integrations and CSV data exchanges with various systems.

Benefits of Implementing an Order Management System

The benefits of implementing an order management system go beyond simply making tasks "easier."

It is an important investment that leads to improved overall productivity in e-commerce operations, enhanced customer satisfaction, and sustainable growth for the organization.

Here, we will introduce the key benefits gained from implementation, from a practical perspective.

Significant Reduction in Work Hours and Improvement in Operational Efficiency

By automating and centralizing tasks that were traditionally done manually, such as order information verification, processing, email responses, and shipment arrangements, the time required for daily order processing can be drastically reduced.

For example, companies that have implemented "Sukeneko" have reported significant reductions in the time spent on order processing, allowing them to allocate the saved time towards product planning and promotional activities.

Prevention of Human Errors

When tasks are dependent on specific individuals or involve frequent manual input and verification, errors such as:

• Shipping mistakes
• Double shipments
• Inventory discrepancies

are more likely to occur.

One of the key benefits of implementing an order management system is the improvement in accuracy through automation.

Standardized processes eliminate inconsistencies in handling by different staff members, reducing the effort required for complaints or reprocessing.

Faster Customer Response and Increased Satisfaction

By automating the sending of order confirmation emails and shipping notification emails, communication with customers becomes timely and accurate.

As a result, this leads to positive feedback such as "fast response" and "a sense of reliability," which can have a favorable impact on repeat purchase rates and reviews.

Centralized Management of Multiple Marketplaces and Stores

When orders from different e-commerce platforms or company websites are managed separately, operations can become complicated.

One of the key benefits of implementing an order management system is the ability to centralize orders from all channels.

With "Sukeneko," you can manage multiple sales channels, such as Mercari Shops, Amazon, Rakuten, and your own e-commerce site (Shopify, Makeshop), all in one place, ensuring data consistency and enabling more efficient operations.

Improved Inventory Management Accuracy

With automatic inventory allocation at the time of order, the risk of double allocation or stockouts is minimized.

Additionally, some systems feature:

• Real-time inventory updates
• Inventory alert functions

These features help prevent lost sales opportunities due to stockouts.

Optimization of Overall Operations Through Scalability and Integration

An order management system does not function in isolation; it can optimize overall operations by integrating with inventory management, shipping management, accounting software, WMS, and other systems.

The flexibility to expand as the business grows is also a major advantage of implementing such a system.

Disadvantages of Implementing an Order Management System

While an order management system is an attractive tool for many e-commerce businesses, implementing it does not necessarily solve all challenges.

In fact, there are cases where businesses may regret the decision after implementation, thinking, "This isn’t what I expected..."

By understanding the potential disadvantages of implementing an order management system, we hope to help you make a well-informed decision and avoid any regrets during the selection and implementation process.

Initial costs and running costs are incurred.

Many order management systems are provided as paid cloud-based or on-premise solutions. It is common for there to be initial setup fees and system development costs during implementation.

Additionally, ongoing running costs such as monthly usage fees and maintenance expenses cannot be overlooked.

For small-scale e-commerce sites, it is important to carefully assess the cost-effectiveness.

Changes to Internal Workflow May Be Required

Implementing an order management system may require a review of existing manual workflows and custom processing procedures.

There could be resistance from staff to changing familiar work styles, and temporary confusion may arise during the transition.

In particular, if staff have low IT literacy, there may be challenges during the initial stages of implementation, making it important to establish adequate training and support systems in advance.

The System's Features May Not Fit Your Business

"More features = easier to use" is not always the case. Sometimes, having too many features can make the system complex to operate, or the features may not align with your business needs.

There may also be cases where essential features are not included as standard and require additional costs for options.

Before implementing the system, it is crucial to simulate the actual user interface and operational scenarios to ensure the system is compatible with your business processes.

Challenges with Integration with Other Systems

Integration with existing cart systems, inventory management tools, accounting software, and other platforms is essential to maximize the performance of an order management system.

However, there are many cases where systems lack compatibility or API integrations do not function smoothly.

It is important to anticipate potential issues such as unexpected additional development costs or the risk of operational disruptions caused by integration errors.

Immediate Results Are Not Guaranteed After Implementation

It is easy to expect that operational efficiency will improve immediately after implementing the system, but in reality, it often takes time for the system to become fully established.

Internal training, manual preparation, and trial-and-error processes are often necessary before the system reaches stable operation.

Rather than focusing on short-term results, it is important to plan for long-term operation with a mid-to-long-term perspective.

Key Points to Consider When Choosing an Order Management System

There are various types of order management systems available.

For those considering implementation for the first time, it’s common to feel unsure about which one to choose.

Here, from the perspective of those who have provided on-site support, we’ll introduce the key points to consider when selecting an order management system to ensure you make the right choice.

Compatibility with Your Sales Channels

The first thing to check is whether the system supports the marketplaces and shopping carts you use.

If you operate across multiple channels, such as Rakuten, Amazon, Mercari Shops, and your own e-commerce site (Shopify, Makeshop), it is essential that the system can handle all of them for centralized management.

"Sukeneko" supports major marketplaces and shopping carts, providing an environment where you can smoothly manage operations across multiple stores from a single interface.

Scope of Automation in Operations

"How much can be automated?" is a crucial point that directly impacts the operational burden.

The wider the range of tasks that can be automated—such as order import, inventory allocation, email sending, and label creation—the more you can reduce manual labor.

Before implementation, it’s important to confirm:

• Can this task be automated?
• What tasks will still require manual intervention?

This will help ensure a smooth transition and peace of mind.

Support System and Usability

No matter how feature-rich a system is, if it is "difficult to use" or if "responses to inquiries are slow," it will not be widely adopted in the workplace.

Since this system will be used daily, the ease of use and the quality of support are extremely important.

"sukeneko" offers comprehensive support, including phone and email assistance, as well as detailed help with initial setup and operational training, ensuring that even beginners can start using the system with confidence.

Integration with Other Systems

In addition to order management, it is also important to consider whether the system can integrate with other aspects of your operations, such as inventory management, shipping management, accounting software, and warehouse management systems.

If system integrations are smooth, it reduces the need for duplicate data management and manual data entry, leading to overall operational efficiency.

Cost and Future Scalability

Focusing solely on cost can lead to regrets later, such as realizing that "the system lacks certain features" or "support is insufficient."

It’s important to consider not just the present, but also whether the system can continue to meet your needs as sales and order volumes grow in the future. Ensure that the system has the flexibility to accommodate long-term growth.

"Sukeneko" offers a subscription-based model, allowing for a small-scale start without a minimum contract period. This makes it easy to smoothly scale from small to medium-sized e-commerce operations or multi-store management.

Characteristics of Companies That Should Implement an Order Management System

Many companies may feel, "Order processing is becoming more difficult, but maybe we’re not yet at the point where we need a system..."

However, there are clear common traits among companies that should implement an order management system.

At "Sukeneko," we’ve seen numerous e-commerce businesses facing similar challenges and situations before implementing a system.

Here, we’ll introduce the typical characteristics of companies that should consider implementing an order management system.

When the Number of Orders Increases and Manual Processing Is Near Its Limit

The most obvious sign is "employee exhaustion due to increased workload."

• Processing dozens to hundreds of orders manually every day
• An increase in mistakes or overlooked tasks
• Being overwhelmed with tasks, leaving little time for focus on promotions or product development

These situations indicate it's time to consider implementing an order management system.

Selling on Multiple Marketplaces and Stores

For companies selling across multiple channels such as Rakuten, Mercari Shops, Amazon, and their own e-commerce site (Shopify, Makeshop), the priority for implementing an order management system is higher.

When order processing is handled separately for each marketplace, tasks tend to overlap, increasing the risk of issues like missed checks or inventory discrepancies.

By implementing an order management system, you can centralize all orders, enabling business integration and improving efficiency.

The work is becoming increasingly personalized by staff members.

"It’s only Mr. ○○ who can do this task."
"If Mr. ○○ takes a day off, the operations won’t run smoothly."

For companies in such a situation, the personalization of work might have led to the order management process becoming a black box.

By implementing an order management system, it is possible to visualize and standardize workflows, ensuring that tasks can be handled with the same quality regardless of who performs them.

There has been an increase in operational mistakes and complaints.

Shipping errors or incorrect shipments
Failure to contact customers
Over-selling of inventory

For companies experiencing an increase in such human errors, implementing a system can significantly reduce the risk of mistakes.

Looking ahead to future sales growth and multi-store expansion

"We're managing for now, but we want to further increase sales in the future."
"We're considering expanding into new marketplaces and international sales."

For companies in a growth phase like this, setting up a solid operational foundation early on ensures smooth adaptation to future expansion.

An order management system supports stable operations even as processing volume increases in line with sales growth.

The process of implementing an order management system:

Order management systems are gaining attention as a foundation to streamline order processes, reduce human errors, and support business growth.

However, there are not a few challenges associated with implementation, such as:

• We chose the wrong system.
• The system didn’t take hold within the company.

In this section, we will explain the process of implementing an order management system and provide useful tips to avoid failure, presented in easy-to-follow steps.

If you're considering implementation, be sure to refer to this guide.

Identify current challenges

First, let's clarify the challenges and inefficiencies in your company's order management process.

• The process takes too much time
• There are frequent human errors
• Managing different marketplaces or carts is cumbersome
• Customer support is becoming personalized

By listening to the voices of the frontline staff who are directly handling the tasks, you will gain a clearer understanding of the real challenges.

Clarify the necessary features

Based on the identified challenges, list the required features for your order management system.

• Bulk management of multiple marketplaces
• Real-time integration with inventory
• Automated email notifications and report generation
• Automation of shipping and delivery management

The key point here is to clearly separate features that are "nice to have" from those that are "absolutely necessary."

This phase is crucial to prevent mismatches after implementation.

Compare and select a system

There are various order management systems available on the market. Compare factors such as pricing structure, functionality, ease of use, user interface, and support system to choose the best tool for your needs.

For example, systems like "Sukeneko," which covers unified management of multiple marketplaces, as well as shipping and inventory management, are particularly well-regarded for their strong support and customer service. These systems are especially popular among first-time adopters and small to medium-sized businesses.

While checking initial costs and contract terms, trying out a trial or demo version is the best way to avoid mistakes.

Internal agreement and decision to implement

Implementing a system involves costs and changes to business workflows, so gaining internal consensus is essential.

• Explain the benefits and cost-effectiveness to the management team
• Share the convenience and changes for the staff on the ground
• To ensure smooth adoption, choose a tool with intuitive usability so that staff members don’t feel anxious

Systems like "Sukeneko," which focus on clear and user-friendly interfaces, help reduce stress for the frontline staff.

System setup and data migration

Once the contract is complete, the implementation phase begins.

The main tasks include:

• Migrating product, customer, and order data
• Setting up warehouse configurations and shipping rules
• Configuring integrations with other systems (marketplaces, inventory management, accounting software, etc.)

At this stage, the support provided by the vendor is crucial.

Systems like "Sukeneko," which offer free online consultations and robust initial support, ensure a smooth experience even for first-time implementations.

Internal training and system operation launch

Training and the creation of manuals are essential until staff become familiar with the system.

• Create custom operation manuals
• Conduct training sessions and briefings for each department
• Strengthen helpdesk support during the initial phase of operation

It can be difficult to master a system right after implementation, but by choosing a system with simple operations and fast support responses, smooth adoption can be expected.

Conclusion: Order management systems are your ally for growth. Take the next step!

An order management system is not just a tool to streamline tasks.

"It's a solution to make order processing smoother."
"I need a system that works even with a shortage of staff."

It’s the ally that supports your business and answers these challenges.

Recently, there has been an increase in systems that are easy to use for beginners and offer solid support.

For example, the "Sukeneko Order Management System" is widely chosen by both beginners and experienced e-commerce operators due to its user-friendly interface and reliable initial support.

"Make it easier," "Make it more accurate," "Increase sales" — the Sukeneko Order Management System can turn these aspirations into reality.

Isn’t it time to take your shop to the next stage with a strong ally like an order management system?