Order Management System: Features and Software (2026)

An order management system (OMS) helps retailers centralize orders, inventory, fulfillment, and returns across sales channels and locations. It can give commerce brands one place to track orders from purchase through delivery.

The global multichannel order management market was valued at $4.18 billion in 2025 and is projected to reach $11.34 billion by 2034, according to Fortune Business Insights. As retailers add channels, warehouses, stores, and fulfillment partners, they have more inventory, routing, shipping, and returns data to coordinate. 

An OMS helps businesses bring those moving parts together as retail operations become more complex. This guide explains how an OMS works, where they can improve operations, and how to compare options for different business needs.

What is an order management system?

An order management system (OMS) is software that centralizes order processing across sales channels. It coordinates five stages of the order lifecycle:

1. Order placement: A customer submits an order.
2. Inventory allocation: Available stock is reserved.
3. Fulfillment: Staff pick and pack the items.
4. Shipping: A carrier transports the order.
5. Returns: If returned, items are processed and restocked.

An order management platform coordinates these flows with inventory and fulfillment data. Businesses can bring order activity into one place rather than managing each stage separately.

Shopify includes OMS software within its commerce platform. Brands can process orders from connected sales channels, then manage payments, fulfillment, returns, and refunds from the Shopify admin. Learn more about managing orders in Shopify.

Order management system features

An OMS can play a central role in logistics management. It can be used to coordinate fulfillment from order entry through delivery.

Distributed order management (DOM) extends that coordination across warehouses, stores, and third-party logistics services (3PLs). It routes each order based on inventory and fulfillment rules.

OMS features include:

• Order management dashboard: Lets teams view, search, filter, tag, and prioritize orders by destination, SKU, fulfillment status, or delivery status. Flags failed or delayed deliveries.
• Smart order routing: Sends orders to a warehouse, store, or 3PL based on inventory and fulfillment criteria.
• Fulfillment automation: Allows retailers to automate order-related workflows. For example, Shopify retailers can automate fulfillment, inventory, and returns tasks with Shopify Flow to reduce manual work and errors.
• Bulk operations: Create and print shipping labels, packing slips, and forms. Process fulfillments, requests, and cancellations in bulk.
• Order editing: Modify orders before shipment to correct errors or accommodate customer requests.
• Draft orders: Create orders and invoices, then send them to customers for payment online or in person.
• Unified inventory control: Syncs stock across locations and sales channels to prevent overselling, overstocking, or shortages.
• Real-time order analytics: Monitor placed, open, fulfilled, delivered, and returned orders. 
• 3PL integration: Connects the OMS to third-party logistics providers through prebuilt apps and integrations.
• Enterprise resource planning (ERP) integration: Links order data with back-office finance and operations systems.
• API integration: Connects the OMS to custom workflows and systems through fulfillment APIs.

How an OMS supports cost-cutting in retail

Retailers can use an OMS to cut retail costs across shipping, labor, and returns.

Shipping cost levers

Retail shipping costs are on the rise. In AlixPartners’ “2026 Home Delivery Survey,” 83% of executives said their per-package costs had increased year over year.

An OMS can help reduce shipping expenses through:

• Smart order-routing: Sends orders to the closest suitable store, warehouse, or 3PL, which can shorten delivery distances and reduce carrier costs.
• Order consolidation: Routes items so one location can fulfill more of the basket. Reducing split shipments can reduce packaging and carrier fees.
• Shipping rate comparison: Compares carrier rates in real time and selects the best eligible rate.

Labor cost levers

An OMS centralizes order data and eliminates manual spreadsheets. Automation also reduces repetitive fulfillment work:

• Order automation: Uses workflow automation to route orders, update statuses, and prioritize orders based on set rules, reducing the need for staff to manage these tasks manually.
• Bulk actions: Prints labels and packing slips or sends notifications for multiple orders at once, reducing repetitive administrative work.
• Exception handling: Flags stalled orders, inventory problems, and carrier delays for staff review.

Returns and fraud cost levers

In a 2025 report, the NRF determined that 9% of returns were fraudulent. They also found that 45% of shoppers considered it acceptable to bend return rules. 

OMS features can help reduce the associated returns management costs:

• Return-fraud prevention: Checks receipts, SKUs, and purchase prices against order history, then flags suspicious returns for review.
• Inventory availability: Updates inventory after inspection so approved merchandise can be resold sooner.
• Return-routing: Sends items to a store, warehouse, or returns center based on condition and location. Can be used with buy online, return in-store (BORIS) workflows to eliminate return shipping costs for customers and retailers.

Shopify unifies point-of-sale (POS) and ecommerce data in one platform. Customers can buy online and return in-store through the same order system.

What does an OMS do?

An OMS helps coordinate orders from purchase through delivery and returns. It synchronizes inventory, fulfillment, customer, and financial data across sales channels. It connects the workflows that move an order through each stage of that lifecycle.

Track inventory levels by channel

An OMS can exchange stock data with an inventory management system (IMS). Omnichannel inventory management keeps quantities aligned across online and physical channels, including stores, marketplaces, mobile apps, social platforms, and fulfillment workflows like buy online, pick up in-store (BOPIS).

With marketplace integration, an OMS can keep stock counts synchronized across channels and fulfillment locations. Retailers can update or transfer stock, set low-stock alerts, and compare SKU performance by region or channel.

Automate the order fulfillment process

During the order fulfillment process, an OMS can send work to warehouses, retail locations, 3PLs, or dropshipping suppliers based on inventory and delivery rules.

Automated order fulfillment applies routing rules after an order is confirmed. Global sellers can configure separate global fulfillment rules. The OMS can route an order to an international warehouse near the customer.

Handle reverse logistics

An OMS can coordinate ecommerce returns from the initial request through inspection and restocking. It creates labels, routes packages, and tracks refund status. Customers and service teams see the same return updates.

Manage customer information

An OMS stores customer information tied to each order. Records can include contact details, purchase history, location, and order value.

A unified customer profile gives service and marketing teams a centralized view of customer data for segmentation and personalization. Brands can group customers by region, average order value (AOV), or purchase frequency.

Merge order and financial data

An OMS can connect order and inventory records with ecommerce accounting or ERP software. 

Integrating these systems can reduce manual data entry, automate invoice and purchase order processing, and bring sales data together with accounts payable and receivable. This combined data can also provide insight into profitability.

The order management process in seven steps

The capabilities above come together across the order lifecycle. In a typical fulfillment process, an OMS coordinates seven core steps: 

1. Order capture: The moment a customer places an order through your website, app, retail store, or marketplace, the OMS captures the data.
2. Order-routing: The OMS decides the best fulfillment method. Should it ship from the warehouse (to cut labor cost) or a local store (to reduce shipping cost)?
3. Fulfillment request: The OMS sends order details to the chosen location. If it’s a warehouse, the order flows into the warehouse management system (WMS). If it’s a retail location, the request pops up on the store’s POS system.
4. Order fulfillment: The OMS prints a packing teams use to pick the order. 
5. Carrier selection and shipping-label generation: The OMS (or integrated shipping tool) compares carrier rates in real time to find the cheapest service that will still meet the promised delivery date. 
6. Exceptions: If anything goes wrong—for example, a store associate finds the last item is damaged or a package is lost—the OMS flags the order for your team to investigate.
7. Shipping confirmation: Once the carrier scans the package, the OMS sends your customer a "Your order is on the way!" email with an order-tracking link.

After delivery, the OMS can also support returns and reverse logistics, as described above. 

OMS vs. ERP vs. WMS vs. TMS: What each system owns

Order management systems are just one platform used by retailers. Here’s how an OMS compares to other tools: 

The best order management software

Order management needs vary by sales model, fulfillment network, and order volume. These four platforms cover native commerce, multichannel operations, inventory, and enterprise orchestration. 

Shopify

Shopify’s built-in order management tools are included in every plan. Stores can manage orders, inventory, fulfillment, and returns across online and in-person channels from one admin.

Shopify order routing automatically assigns orders to fulfillment locations using rules set by the business. The platform supports up to 1,000 locations and provides local delivery, pickup, exchanges, and shipping discounts of up to 88%.

In a Shopify case study, Snarky Tea reported saving $25,000 per month on shipping and more than 360 staff hours per year after consolidating fulfillment in Shopify.

Cin7 Core

Cin7 Core synchronizes orders, inventory, and product data across warehouses and sales channels. It also manages purchasing, forecasting, manufacturing, and B2B sales.

The Standard plan starts at $349 per month. It includes five users, two app integrations, and 6,000 sales orders per year. Add-ons cost extra.

Linnworks

Linnworks centralizes order and inventory management for omnichannel retailers. It connects with more than 100 platforms and covers channel listings, fulfillment, forecasting, and order routing.

The Shopify app is free to install. Linnworks provides service pricing by quote.

Manhattan Active Order Management

Manhattan Active Order Management is an enterprise OMS for inventory visibility, order promising, fulfillment coordination, and cross-channel returns.

Its Shopify integration syncs inventory, orders, payments, and refunds between the platforms. Manhattan offers three editions and provides pricing by quote.

The benefits of a good OMS

Research from Deloitte shows that a single, interconnected platform coordinates inventory and order management, reducing the risk of stockouts and inconsistent customer experiences. 

An OMS centralizes these operations to support benefits such as:

• Order accuracy: Automated processing reduces the manual data entry that causes shipping mistakes.
• Fulfillment speed: Identifying the best fulfillment center with available inventory gets products to shoppers faster.
• Channel centralization: Consolidating orders from all sales channels into one dashboard prevents missed or duplicate orders.
• Customer transparency: Built-in tracking pages give shoppers real-time updates on their deliveries.
• Inventory forecasting: Comprehensive data on sales trends helps retailers predict demand and avoid overstocking.

Challenges of an OMS

Despite all of its advantages, an order management system can also introduce challenges. 

Here are three common problems stores face:

• Integration: Complex integration with legacy systems can lead to unsynchronized data and shipping delays. 
• Scalability: Basic systems may not support business growth, requiring systems that can handle increased order volumes and international transactions.
• Customization: Adapting to specific business processes can be difficult, especially when workflows require extensive customization. For example, bespoke furniture manufacturers may struggle with a centralized system ill-equipped for complex custom orders.

One way to reduce integration complexity is to use a platform that unifies POS and ecommerce in the same infrastructure. Shopify brings these systems together, which can reduce reliance on middleware and custom integrations that increase total cost of ownership (TCO). 

“The biggest money and time-saver here is the back-and-forth we used to have with the customer support team based on orders that didn't sync with [our previous solution],” says Simon Paquin, director of digital marketing at Pilgrim. 

“It created a lot of friction, meaning delaying the work to get done, and therefore shipping fewer orders every day. With Shopify, we're making more money per hour with less friction.”

How to choose an OMS

Evaluate each OMS against your operational needs, growth plans, and support requirements. Use three steps to compare platforms consistently.

1. Define your objectives and priorities

Document the problems the OMS needs to solve. Ask stakeholders to separate required capabilities from optional ones.

Record your current order volume, sales channels, fulfillment locations, expected growth, and any integration requirements with existing systems. Prioritize capabilities that reduce manual work or improve inventory and fulfillment accuracy.

2. Draft a request for proposal (RFP)

An RFP gives each vendor the same operational and technical requirements. Use a free ecommerce RFP template to organize your requirements and migration questions.

• Current and projected order volumes
• Number of SKUs
• Sales channels and locations
• Existing software and hardware
• Required integrations
• Implementation timeline
• Training and support needs

3. Evaluate your options

Shortlist four to six vendors. Test each platform through demos or trials using your actual workflows.

Compare:

• Order, purchasing, and returns automation
• Multichannel and multicurrency management
• Multi-location inventory updates
• Reporting and forecasting
• APIs and integration options
• Accounting, warehouse management, fulfillment, and 3PL connections
• Implementation and training
• Support and product roadmap
• Total cost and contract terms

Score every vendor with the same weighted criteria. Select the platform that meets your highest-priority requirements while also fitting your implementation, support, and cost requirements.