When ecommerce is small, order management feels simple: an order comes in, someone picks it, packs it, and hands it to a carrier.
Once you add multiple channels, warehouses, 3PLs, B2B contracts, approvals, and returns, that “simple” process turns into a web of spreadsheets, emails, and special cases. Overselling, split shipment drama, manual credits, and “where’s my order?” tickets become a daily sport.
This article is about getting back to something saner.
We’ll walk through what ecommerce order management actually is, how the process should flow end to end, what an order management system (OMS) does, and how to think about architecture and features when you’re evaluating software.
💡 Quick note: If your main headache is deciding which warehouse, store, or 3PL should fulfil each order profitably and on time, you’re already in order orchestration territory. This article will mention orchestration, but we unpack it properly in our dedicated guide on the topic.
Ecommerce order management is the end-to-end process of capturing, validating, allocating, fulfilling, and closing orders across all your channels and locations.
A modern OMS (order management system) coordinates that process: it sits between your sales channels and your fulfilment/financial systems, keeping orders, inventory, and status in sync.
The order management process typically flows through eight stages: capture → validate → reserve → allocate → fulfil → deliver → return/close → analyse.
An OMS is not the same as your ERP or WMS. ERP is your financial and master data backbone. WMS runs individual warehouses. OMS focuses on order lifecycle, status, and cross-channel coordination.
Key OMS capabilities to prioritise: lifecycle changes and exceptions, split and partial shipments, returns/RMAs, real-time inventory visibility, multi-warehouse support, strong integrations, and governance (roles + audit trails).
You can implement order management using suite tools, composable/best-of-breed OMS platforms, or ERP/WMS-led setups; the right choice depends more on your architecture strategy and cost of change than on brand names.
AI can meaningfully help with order management (suggested fulfilment options, anomaly detection, PO-to-order capture), but it should run under clear rules, approvals, and auditability rather than as a black box.
Before we get into processes, features, or software, it’s worth agreeing on what we actually mean by ecommerce order management. In this section, we’ll pin down a simple working definition, look at how it fits into your wider tech stack, and highlight how the shape of the problem shifts between B2C, B2B, and D2C.
At its core, ecommerce order management is how you handle everything that happens to an order from the moment a customer clicks “buy” (or sends a purchase order) until the money is collected, the goods are delivered or returned, and the books are reconciled.
It is:
Process: the steps you follow to capture, validate, fulfil, and close orders.
People: the teams involved—customer service, warehouse, finance, sales, IT.
Systems: ecommerce platform, marketplaces, ERP, WMS, OMS, CRM, and any integration/middleware in between.
Good order management gives you three things:
Control – you know where every order is, who owns the next step, and what happens when something goes wrong.
Consistency – customers get the same level of service regardless of channel.
Clarity – you can trust your data enough to make decisions about stock, channels, and capacity.
Scalability – the same core process and OMS can handle more orders, more nodes, and more channels without needing to be rebuilt every time you grow.
Room for new opportunities – with a solid OMS in place, it’s much easier to add new services, partners, or business models without putting day-to-day operations at risk, so the business feels far closer to “future-proof” than it does on spreadsheets and ad hoc integrations.
When those three are missing, you’ll see it in stockouts that shouldn’t happen, orders that fall through the cracks, and a customer service team that spends most of its day chasing status updates.
The basic idea of order management is the same everywhere, but the shape of the problem changes by business model.
B2C / D2C ecommerce – In consumer and direct-to-consumer models, the main pressure comes from scale and customer expectations around speed and convenience:
B2B ecommerce – In B2B, order management has to absorb far more rules, stakeholders, and edge cases than in consumer flows. Orders are typically higher-value, more structured, and tightly linked to contracts and processes—whether that means frequent replenishment orders or large periodic buys.
Common characteristics:
That last point is important. In B2B, partial fulfilment and staged delivery are often part of the promise, not a failure. Your order management process and systems need to understand that difference instead of treating every deviation from “one order → one shipment” as an error.
Before you think about platforms or architectures, it helps to have a clear picture of the ideal flow. Once you can sketch it on a whiteboard, you can decide which parts are missing, manual, or brittle in your current setup.
A typical ecommerce order management process spans eight main stages:
📍 This is where order management starts to blend into orchestration if you have many nodes.
You can visualise this as a simple flow:
Capture → Validate → Reserve → Allocate → Fulfil → Deliver → Return/Close → Analyse
This “happy path” gives us the backbone. Real-world order management is mostly about dealing with what happens when reality refuses to follow it neatly.
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Step
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What happens in practice (B2B nuance)
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1. Request / quote
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Buyer submits a request or RFQ; sales or the portal generates a formal quote.
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2. Quote review & approval
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Buyer reviews pricing and terms internally; managers may approve or adjust.
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3. Order placement
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Quote is converted to an order or a purchase order (PO) is submitted.
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4. Credit & terms check
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System or finance team validates credit limits, payment terms, and account status.
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5. Pricing & contract check
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OMS confirms contract pricing, discounts, and any special conditions per account.
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6. Inventory check & reservation
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Stock is verified across locations; quantities are reserved against the order.
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Order is split or grouped, then routed to warehouses, plants, or suppliers.
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8. Shipping & documentation
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Goods are picked, packed, shipped; invoices, packing lists, and customs docs issued.
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9. Delivery & status updates
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Buyer receives tracking, confirmations, and any exception notifications.
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10. Returns & after-sales
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Returns, replacements, and service requests are handled under agreed terms.
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11. Reconciliation & analytics
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Invoices are reconciled, payments applied, and data feeds into reporting/forecasting.
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If you map your current flow against that model, the weak spots tend to cluster around a few familiar points:
Out-of-sync inventory: Each channel believes a different reality about stock. Orders are accepted on the site even when the warehouse is already short. You oversell, then scramble.
Manual exceptions handled in inboxes and spreadsheets: Changes to addresses, items, or quantities are managed in email threads that never make it back to the system of record. People forget to update ERP or the ecommerce platform; data diverges.
No central view of order status: Customer service teams log into three or four systems for one answer, or send internal emails like “Has order 12345 actually shipped or not?”
Fragmented returns: Returns are processed separately by warehouse, store, or vendor. No single view of return reasons, volumes, or financial impact.
When those cracks become the norm rather than the exception, software alone doesn’t fix the situation. You need both a clearer process and the right system(s) to coordinate it, which is where an OMS comes in.
Before we look at features or vendors, it helps to be clear on the system at the centre of all this. In this section, we’ll define what an order management system ecommerce actually does, how it differs from ERP and WMS, what it looks like inside, and the main architectural approaches you can take.
An order management system (OMS) is the application that:
Holds the authoritative record for each order.
Tracks the order’s lifecycle from capture to closure.
Coordinates communication between sales channels and fulfilment/financial systems.
Provides a single place where teams can see status, history, and next steps.
Think of it as the traffic controller for orders. It doesn’t necessarily pick items off shelves or send invoices itself, but it tells those systems what to do and keeps track of what they have done.
Without some kind of OMS, order logic tends to splinter:
The ecommerce platform thinks it runs the show.
The ERP overrides some decisions based on finance rules.
The WMS pushes back when stock doesn’t match.
Marketplaces and 3PLs add their own timing and constraints.
An OMS brings that back into a coherent picture.
Because these systems overlap, it’s useful to be explicit about what each one is primarily optimised for.
In small or simple operations, you might get away with ERP + ecommerce platform and no dedicated OMS. As soon as you add more channels, more warehouses, or more complex B2B rules, trying to keep everything in ERP or in the ecommerce platform usually becomes painful:
Changes require heavy IT involvement.
Each new channel adds custom logic and one-off integrations.
Operations teams can’t get the views they need without help.
An OMS gives you a more flexible place to centralise order logic while letting ERP and WMS continue to do what they’re good at.
Although implementations vary, most OMS platforms think in terms of a few core objects:
Order – the top-level entity representing the customer’s request.
Order line – each product or service on the order.
Shipment – one or more physical fulfilments linked to an order (partial, split, backorder).
Inventory reservation/allocation – the link between the order and specific stock at a location.
Return/RMA – the structure for items coming back, inspection results, and disposition.
Financial artefacts – links to invoices, payments, credits, and adjustments.
Understanding how your candidate OMS models these objects—and how easily they can be extended—is a good early test of whether it will cope with your edge cases.
There isn’t a single correct way to implement order management. In practice, most organisations follow one of three patterns:
Suite OMS: In a suite model, order management lives inside a broader commerce or ERP platform. You get pre-integrated modules and a single vendor relationship. It’s tidy and centralised, but changes move at the suite’s pace, and there’s less flexibility to plug in specialist components if your needs outgrow the box.
Composable / best-of-breed OMS: Here, the OMS stands alone between channels and back-office systems, exposing orders, inventory, and events through APIs. You gain freedom to choose the OMS that fits your complexity, swap or extend components, and support a mixed system estate—provided you invest in integration strategy and architectural discipline.
Back-office-first (ERP/WMS-led): In this model, order logic is pushed into ERP, WMS, or the integration layer, effectively turning them into the OMS. This keeps moving parts low and aligns with finance and warehouse processes, but changes are slower and often more expensive, leaving business teams reliant on IT for adjustments.
In all three approaches, inventory is the pressure point. If systems cannot agree on “what’s available where and when,” order management will always feel fragile, no matter how polished the UI is.
In a composable setup, you separate order lifecycle logic from storefronts and back-office systems, exposing it through APIs so different channels and fulfilment nodes can plug into the same core process. This OMS layer coordinates capture, validation, lifecycle changes, and handoff to systems like ERP, WMS, and 3PLs, without being tied to a single front end.
⚡ As an example, Virto Commerce’s OMS capabilities include order capture and quote-to-order, approval workflows, invoicing and returns, plus inventory and warehouse/fulfilment management as part of the overall order lifecycle.
In the next sections, we move from “what an OMS is” to a practical checklist of capabilities, current trends, and a structured way to evaluate order management software—but this gives us a solid foundation to build on.
Once you’re clear on the process and the role of an OMS, the next step is to identify which capabilities truly matter for your business. The list below is intentionally practical—you can almost use it as a requirements sheet for discovery workshops.
You can group the most important requirements into six areas:
Start by checking whether the OMS can handle the full life of an order, including awkward changes and edge cases:
Look at how clearly the system understands stock and what’s actually available to sell:
Check whether the OMS can sensibly use your network of warehouses, stores, and partners:
Returns and adjustments should be first-class citizens:
Test how cleanly the OMS exchanges data and reacts to events:
Understand who can do what, under which rules, and how changes are tracked:
⚡ A composable OMS like Virto Commerce exposes orders, inventory, and fulfilment through APIs, supports multi-warehouse setups, and uses role-based access and audit logs. The goal isn’t to tick every box on day one, but to ensure the platform can grow into the ones you care about.
Once you’re clear on the process and the role of an OMS, the next step is choosing which capabilities really matter for your business. The list below is intentionally practical—you can almost use it as a requirements sheet for discovery workshops.
Very few organisations are truly single-channel anymore. You might sell through:
Customers don’t care which channel they used—they just want coherent promises and status updates. That pushes order management to become:
💡 You can see this shift clearly in the numbers: McKinsey’s 2024 B2B Pulse found that market leaders are doubling down on omnichannel, with winners “experimenting, investing, and committing to omnichannel sales” as their primary growth lever, and around 70% of B2B decision makers now comfortable placing high-value orders digitally.
Monolithic suites made sense when digital commerce was relatively static. Today, the pressure is to:
The real cost in that world is the cost of change: how expensive, slow, and risky is each new integration, rule, or workflow? That’s why many teams are moving towards composable architectures where:
💡 Gartner predicts that organisations adopting composable application architecture will outpace competitors by 80% in the speed of new feature delivery, explicitly tying modular, independently deployable components to innovation velocity.
In tight markets, the ability to promise accurately matters as much as raw speed. That means:
This is where a strong OMS coupled with solid inventory capabilities earns its keep. Without that backbone, promises become guesses.
💡 Consultancies are increasingly framing inventory precision as a strategic lever, not just an operations concern: EY argues that retailers need end-to-end inventory strategies and shows how improving inventory precision boosts margins by reducing markdowns and stockouts while better matching supply to demand.
As automation and AI creep into order management, governance stops being a “nice to have.” Businesses need:
An OMS that treats governance as a first-class concern—rather than an afterthought—will age better than one that simply pushes more volume.
💡 On the governance side, large vendors are warning that AI-driven automation without controls is a liability, especially in regulated sectors: SAP advises highly regulated industries to implement explicit AI guardrails, tying AI use to existing and emerging regulations and stressing the need for explainability and traceable decisions.
AI is already showing up in order management, but it’s best used as a supporting actor rather than as an invisible mastermind.
These are areas where AI can add value with relatively low risk:
PO-to-order capture: Automatically extracting line items and details from emailed purchase orders or PDFs and turning them into structured orders for review.
Suggested fulfilment options for CSRs: When a customer calls, AI can surface likely fulfilment options based on inventory, past behaviour, and shipping rules, so the CSR doesn’t start from zero.
Anomaly detection: Flagging orders that look unusual (e.g. suspicious quantities, odd combinations, risky addresses) so they can be reviewed.
Ticket classification and summarisation: Grouping support tickets by issue type and summarising order history so agents can respond faster.
Knowledge assistant for internal teams: A chatbot that can answer “Where is this order in the process?” or “What happens if I change X?” based on documentation and system data.
⚡ In Virto’s ecosystem, for example, AI shows up in features like Smart PO-to-Order Capture —which uses AI-powered document processing to turn purchase orders into quotes or orders—and Virto Oz, an AI assistant embedded into storefronts, portals, and admin tools to deliver context-aware answers alongside existing workflows.
Some scenarios are attractive, but demand tighter controls:
Automated reprioritisation of orders during constraints (capacity, inventory).
Proactive delay management, where AI forecasts likely delays and suggests partial shipments or customer incentives.
Adaptive routing rules where thresholds and preferences are updated based on performance data.
These are powerful, but you don’t want a model silently changing commitments or policies. Humans should still approve rule changes and have visibility into what changed.
At today’s maturity, a few things are usually better left to deterministic logic:
AI should augment the clear rules and workflows in your OMS, not replace them wholesale.
If you’re starting to apply AI in order management, a few simple rules go a long way:
If an OMS or related tool offers AI features, it should also offer these guardrails. Otherwise, you’re trading short-term convenience for long-term risk.
Every business benefits from better order management, but some sectors feel the complexity more than others.
You can think about complexity in terms of catalog size, fulfilment constraints, compliance, and customer expectations:
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Industry
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Why OMS complexity is high
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Configurable products, multi-stage fulfilment, approvals, contract pricing, heavy after-sales
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Multi-warehouse networks, contract pricing, partials/backorders, large B2B accounts
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Massive catalogs, fitment rules, returns, cross-border shipping, multi-brand/multi-region setups
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Lot/batch and expiry tracking, strict documentation, regulated returns and recalls
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Retail, omnichannel, custom apparel |
Store + DC networks, BOPIS, ship-from-store, frequent promotions, high return rates
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Multiple sellers, split shipments, differing SLAs and contracts, operator vs vendor responsibilities
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Real-world examples from Virto’s customers bring this to life:
Some supply chain patterns add extra layers of complexity on top of industry factors:
The more of these patterns you combine, the more important it is that order management logic lives in a system designed to coordinate them—not scattered across spreadsheets and email threads.
It’s easy to think of an OMS as infrastructure, but the effects are very measurable if you pick KPIs carefully.
A mature OMS and process typically show up as improvements in:
In one distributor example, Royal Brass & Hose—a B2B mobile equipment supplier working with Virto Commerce—moving to a modern ecommerce portal with stronger order management not only enabled 24/7 self-service ordering, but also freed customer service teams to spend less time on basic status checks and more on higher-value work.
Beyond operations, better order management affects:
As mentioned earlier, Royal Brass & Hose (which standardised orders through a Virto Commerce–powered portal) launched in around 10 months, saw an 11% uplift in online sales, and moved to rolling out new capabilities via monthly sprints instead of multi-month projects.
With the concepts in place, the last step is turning this into a practical buying framework.
Do we need a suite, a composable OMS, or an ERP-led approach?
How many systems will we realistically need to integrate?
Are APIs comprehensive and well-documented?
Can we react to events in real time?
How easy will it be to connect to ERP, WMS, 3PLs, marketplaces, and CRM?
Can the system handle multiple locations, types of stock, and reservation logic?
Does it give a coherent picture of availability across nodes?
Can we model our own approval flows, holds, and exceptions?
Is there a visual or low-code way to adapt processes, or does everything require code changes?
Are roles and permissions granular enough?
Are audit logs complete and accessible?
Can we prove who did what in regulated scenarios?
Has the platform proven itself at our expected volumes and catalogue sizes?
Are there references or case studies for similar complexity?
What does it actually take to add a new channel, warehouse, or partner?
How does the vendor handle updates and customizations?
Is there a partner ecosystem or will we be on our own?
How close is the relationship with the vendor’s product and engineering teams?
It’s tempting to shortlist tools purely on features or brand recognition. A more durable approach is:
For example, if you expect to add channels and fulfilment partners regularly, composable or best-of-breed options will usually serve you better than hard-wired logic in a monolith. If your business is relatively simple and unlikely to change much, a suite or ERP-led approach may be sufficient and lower-touch.
You run complex B2B or hybrid B2B/B2C models with contract pricing, account hierarchies, and approvals.
You have or plan to have multiple warehouses, DCs, or fulfilment partners, and want a central coordination layer.
You want an API-first platform, with REST and GraphQL APIs and the option to use Azure Logic Apps or similar middleware for sync/async integrations, so orders, inventory, and fulfilment can be accessed by your own or partners’ applications.
You care about governance—role-based access control and audit logs for order changes and automation, so you can see who did what and when.
You’re a very small merchant with a single location and straightforward B2C flows.
You’re looking for an all-in-one out-of-the-box storefront for simple D2C without plans to grow complexity.
The key is to match your current and anticipated complexity to the platform’s strengths, not just to pick something that looks impressive in a demo.
Even with a solid OMS, there comes a point where the hardest question isn’t “what stage is this order in?” but “who should fulfil it, and how?”
That’s where order orchestration enters the picture.
In simple setups, basic logic (e.g. “always fulfil from DC A unless out of stock”) inside the OMS might be enough. As complexity grows, you start to see signs that you need a more deliberate orchestration layer:
Order orchestration focuses on decisioning and coordination across nodes: where to route, when to split, when to hold, and how to keep promises under pressure.
If that sounds familiar, it’s worth treating orchestration as a separate design problem. We’ll unpack it in detail—definitions, process flows, architecture patterns, and selection criteria—in the companion article on order orchestration.
Strong order management in ecommerce isn’t just about getting today’s orders out of the door. It’s the foundation for adding new channels, partners, and fulfilment options without breaking your promises to customers. If you understand your process, know what to expect from an OMS, and choose an architecture you can live with for years, you’re already ahead of most teams still patching spreadsheets and custom scripts.
If you’re evaluating an ecommerce order management solution and want to see what a composable, API-first approach looks like in practice, it’s worth exploring Virto Commerce. The platform’s feature set covers OMS capabilities alongside inventory, warehouse and fulfilment, with governance features like RBAC and audit logs to keep automation under control. From there, you can dive into specific OMS features and case studies, or continue with the next article in this series, where we unpack order orchestration and how it builds on the foundations you’ve just put in place.