Order Management Systems and E-Commerce Integration: How It Works
Before we delve into how integrations impact e-commerce performance, let’s look at how these integrations work.
Essentially, an order management system is the “hub” where data from each critical aspect of the business—the online storefront, the shopping cart, the inventory system and the payment- and shipment-processing platforms—flows in and out of. The order management system is aided by integrations with services and functions in each of those critical areas.
This graphic illustrates the relationship between the order management system and its possible integrations—and how those integrations interact with one another.
First, the order management platform integrates with the users’ sales channels, such as Amazon or eBay. Orders from these channels are automatically entered into the order management platform. The system’s integration with shopping carts then sends customers’ data back to the platform, allowing the user to see what people are putting in their carts, what types of orders are abandoned (more on this later in the report) and so forth.
After an order is processed, the inventory is automatically updated in the order management system, and payments are automatically processed by the system’s accounting software. Finally, shipping labels with the customer’s information are automatically created, or the order is automatically sent to the fulfillment center (whichever is applicable).
(Note that there is a lot of overlap between many order management platforms and the e-commerce services they integrate with. Different platforms may feature built-in inventory management, accounting or shopping cart functionality, for example.)