The Top 7 Benefits of Using Automated Order Management Software

How Automated Order Management Boosts Efficiency and Cuts Costs

For e-commerce businesses, effective order management is crucial for growth. As companies scale and demand rises, managing orders manually becomes inefficient, costly, and error-prone. Automated order management software has been shown to increase operational efficiency by up to 85% and reduce order processing times by 60% or more. In a world where fast and accurate order fulfillment is expected, these statistics highlight the need for automation to stay competitive.

This guide will explore the top seven benefits of using automated order management software, breaking down the core reasons it has become essential for e-commerce success.

1. Enhanced Inventory Management and Visibility

Automated order management software allows businesses to maintain precise, real-time visibility into inventory levels, which is particularly helpful when managing stock across multiple channels or locations. It automatically updates inventory counts when orders are placed, canceled, or returned.

Example: Breakout, a mid-sized online retailer, saw a 30% reduction in inventory discrepancies within three months of implementing automated software, allowing for better decision-making around stock levels.

Why It Matters: With real-time inventory visibility, businesses avoid stockouts and overstocking, which both impact revenue and customer satisfaction.

2. Faster Order Processing and Fulfillment

Automated order management software streamlines the entire order process—from receiving an order to packing and shipping. The software assigns orders to warehouses based on stock availability, minimizing delays and ensuring prompt processing.

Example: A study found that businesses using automated order management software processed orders 35% faster than those relying on manual processes, giving them an edge in customer satisfaction.

Why It Matters: Speedy order processing is essential for meeting customer expectations, especially when competing with quick-shipping giants.

3. Improved Accuracy with Fewer Errors

Manual order management is prone to human error, especially during high-demand periods. Automated systems minimize errors by updating inventory in real-time, ensuring accurate stock counts, order assignments, and customer details.

Case Study: Outfitters, an online fashion brand, reduced order errors by 45% after implementing automated order management software, minimizing manual data entry and oversight.

Why It Matters: Reducing errors saves time, resources, and costs associated with handling returns and customer complaints, leading to a smoother customer experience.

4. Cost Savings in Labor and Operational Expenses

By automating repetitive tasks like data entry, inventory updates, and order routing, businesses save on labor costs and improve operational efficiency. Automation reduces the need for large teams to handle manual tasks, allowing businesses to scale efficiently without additional staffing costs.

Example: A study by eMarketer found that automated order management software can reduce labor costs by up to 25%, offering substantial savings for growing businesses.

Why It Matters: Cost savings in labor and operations free up resources that can be reinvested in other areas, such as marketing or new product development.

5. Better Customer Experience Through Order Tracking

With automated order management software, businesses can provide customers with real-time updates on order status, tracking numbers, and delivery estimates. This visibility greatly enhances the customer experience, allowing them to track their orders and plan accordingly.

Case Study: An e-commerce survey revealed that 80% of customers expect real-time order tracking. Companies offering these updates saw a 25% increase in repeat purchases, showing how tracking contributes to customer loyalty.

Why It Matters: Improved customer satisfaction and repeat business directly impact revenue and brand reputation, making order tracking a valuable feature of automation.

6. Effortless Multichannel Management

As businesses expand to multiple platforms like Amazon, Shopify, eBay, and their own websites, managing orders and inventory across these channels becomes complex. Automated order management software integrates with these platforms, enabling seamless tracking and inventory updates across all channels.

Example: Homage, selling on four platforms, used automated software to synchronize its inventory, reducing discrepancies and maintaining consistent order fulfillment, resulting in a 20% sales increase.

Why It Matters: Managing multiple sales channels from a single system improves efficiency, minimizes errors, and enables businesses to expand their reach without complexity.

7. Data-Driven Insights for Better Decision Making

Automated order management software provides analytics and reporting features that help businesses make data-driven decisions. With insights into order volume, customer preferences, and inventory levels, businesses can optimize operations, improve forecasting, and refine marketing strategies.

Case Study: A company specializing in sports equipment used order management software to analyze sales trends, helping adjust inventory ahead of seasonal demand spikes, leading to a 15% sales increase during the peak season.

Why It Matters: Access to real-time data and trends allows businesses to adjust strategies proactively, helping them stay competitive and responsive to market changes.

Harnessing the Power of Automation for E-Commerce Success

Automated order management software isn’t just about convenience—it’s a powerful tool that transforms operations, reduces costs, and boosts customer satisfaction. By implementing a solution that offers real-time visibility, error reduction, labor cost savings, and actionable insights, e-commerce businesses can stay competitive, manage peak season demands, and provide a superior customer experience.

Investing in an automated order management system now can set your business up for long-term success, scalability, and an edge in an increasingly competitive market.

Feel free to reach out to us if you have any questions.

Read the previous blog on Multichannel Selling Simplified A Beginner’s Guide to Inventory Tracking.