Order Management

What Is Order Management?

Every ecommerce order goes through a series of steps before it reaches the customer. This process is called order management, and it includes locating the products in inventory, packing them, shipping them, and updating the customer with the order status.

Instead of handling each order manually, you can save time and reduce errors by using an order management system (OMS). An OMS treats every order as part of your larger supply chain, keeping your business organized and scalable.

The Order Management Process

Order management typically follows four main stages:

1. Receiving the order
2. Processing the payment
3. Fulfilling the order
4. Handling after-sales processes

Let’s explore each stage in more detail.

Step 1. Receiving the Order

The process begins as soon as the customer places an order and completes payment. At this stage, all order information enters your system — customer details, items purchased, and delivery preferences.

Step 2. Payment Processing

Once the payment is confirmed, the customer should receive an automated confirmation email. This message reassures them their order is secure, provides an estimated delivery date, and includes your company’s contact details in case changes are needed.

For smooth operations:

• Invest in secure payment processing to protect customer data.

• Offer multiple payment options (credit cards, PayPal, Apple Pay, etc.) for convenience.

• Sync payments with your inventory management system. Once payment is processed, the system should automatically deduct items from available stock.

👉 If you sell across multiple channels, an OMS like Multiorders ensures real-time inventory updates to avoid overselling.

Step 3. Order Fulfillment

After the payment clears, the order details are sent to your warehouse team for fulfillment. This stage has three sub-steps: picking, packing, and shipping.

Picking

The warehouse manager creates a picklist containing item SKUs, quantities, and locations. This makes collecting products from storage faster and reduces errors. Once all items are picked, they move to the packing station.

Packing

At the packing station, staff make sure items are securely packaged. If the order includes multiple products, they’re bundled together before shipping. Correct packaging reduces damage and improves the customer experience.

Shipping

Finally, shipping documents are prepared — labels, invoices, and customs forms (for international orders). Some documents, like labels and customs forms, are attached to the parcel, while invoices usually go inside.

👉 To learn more about fulfillment strategies, see our Beginner’s Guide to Ecommerce Shipping.

Step 4. Returns and Refunds

Once shipped, customers should receive tracking details and an estimated delivery date.

If the customer returns the product, it flows back into your inventory after inspection. To provide better service:

• Follow up after delivery to confirm satisfaction.

• Make returns and refunds simple to keep customers in your sales funnel.

• Provide clear contact methods so customers can reach you easily.