Omnichannel Order Management: A Catalyst for Retail Success

Consumers today don’t follow a linear path when making purchasing decisions. They might first hear about a product on social media, check reviews on a website, purchase through a mobile app, and finally pick it up in-store. This “shopping journey” is fragmented across multiple sales channels, and customers expect a seamless experience no matter where they interact with a brand. Here’s where omnichannel order management becomes an indispensable asset for retailers.

Omnichannel order management refers to the process of managing customer orders across all sales channels, such as online stores, physical locations, marketplaces, and social media, in a unified system. This ensures a unified view of inventory levels and customer data and provides a seamless shopping experience regardless of where customers place their orders. 

The need for adopting an omnichannel order management software is backed by research:

• 80% of consumers use multiple channels to complete purchases, and 73% engage with more than one channel during their buying journey.
• Omnichannel customers spend 30% more and have a 30% higher lifetime value than single-channel shoppers. They are also 1.7 times more likely to make repeat purchases and 46% more likely to recommend brands.
• Businesses with strong omnichannel strategies retain 89% of their customers, compared to just 33% for those without, and 87% of brands with strong omnichannel strategies report outperforming their competitors.

Forward-thinking retailers are already leveraging omnichannel order management to drive efficiency and growth. Take Debenhams, for example—a 243-year-old department store reimagined as a direct-to-consumer brand by Boohoo Group in 2021. With fabric’s omnichannel capabilities, Debenhams expanded its product catalog to 3 million SKUs across 11 brands and went live in just three weeks. This transformation enabled the retailer to manage thousands of collections seamlessly, improving online shopping experiences and streamlining operations.

Adopting omnichannel order management strategies clearly helps increase customer loyalty, repeat sales, and long-term competitive advantage. For retailers looking to remain competitive, omnichannel order management is no longer optional—it’s a necessity. Read on as we explore the benefits and strategies of effective omnichannel order management for your retail business.

The challenges of traditional order management

Traditional order management systems (OMS) were designed for single-channel retail, where inventory and orders were managed separately for each sales channel. However, in today’s retail landscape, customers expect seamless integration between online stores, offline channels, and marketplaces. Siloed OMS falls short of customer expectations with inaccurate inventory tracking and slow fulfillment processes. Let’s look at all these challenges in brief.

Lack of real-time inventory visibility

Many legacy systems rely on batch processing, where inventory updates occur at scheduled intervals rather than instantly. This delay means that an item might be listed as “available” online, but it has already been purchased in-store.

Inaccurate stock levels

A retailer using disconnected systems may have excess inventory in one warehouse while another location faces stockouts. Without a centralized system consolidating stock information across all sales channels, businesses risk overstocking in some areas while losing sales in others.

Increased risk of stockouts and overselling

If a retailer sells on multiple marketplaces like Amazon and Walmart but updates inventory manually, a surge in demand could result in more orders than available stock. This leads to canceled orders, refund processing delays, and potential penalties from marketplace partners.

Incomplete info for customers and customer service representatives

Customers today expect transparency—they want to know if an item is in stock, when it will arrive, and where to pick it up. However, with traditional systems, this information isn’t always accurate or easily accessible. If a customer contacts support to check product availability or modify an order, agents may struggle to retrieve real-time data, leading to longer resolution times and a poor customer experience.

Manual order processing

Many retailers still rely on manual order processing, where employees must input, verify, and route orders by hand. This slows down fulfillment times and increases the risk of human error. A miskeyed address, incorrect SKU entry, or misrouted order can result in delayed shipments or costly returns.

Slow order fulfillment times

A fashion retailer experiencing a sudden surge in demand during a holiday sale may struggle to fulfill orders quickly if its system cannot automatically allocate inventory to the nearest fulfillment center. At such times, customers are more likely to abandon future purchases when orders take longer than expected.

Increased shipping costs

Without an omnichannel system that optimizes fulfillment locations, an order might be shipped from a warehouse across the country rather than a store just a few miles away.

Limited order fulfillment options

Customers want to choose between home delivery, in-store pickup, curbside pickup, and same-day delivery. However, legacy systems often lack the integration needed to support these options efficiently. For instance, if a customer selects in-store pickup but the retailer’s system doesn’t sync with store inventory in real-time, they may arrive to find their order unavailable.

Limited customer visibility into orders or ability to change orders

Customers may receive a tracking number but lack real-time updates or the ability to modify their order after checkout. This lack of transparency leads to increased support inquiries, as customers contact service teams for status updates, cancellations, or modifications—placing additional strain on customer service operations.

The benefits of omnichannel order management

Implementing an omnichannel OMS is a game-changer for modern retailers. It enables seamless integration between digital and physical storefronts, and here’s how it drives business value.

Improved customer experience

A robust omnichannel OMS accelerates order fulfillment by dynamically allocating inventory across warehouses, stores, and third-party logistics providers. This ensures faster deliveries and minimizes out-of-stock scenarios. Automated order processing enhances accuracy, reducing fulfillment errors that lead to costly returns. Additionally, flexible fulfillment options—such as buy online, pick up in-store (BOPIS), ship-from-store, and same-day delivery—allow retailers to meet customer expectations with unparalleled convenience. Real-time order tracking and automated notifications boost customer trust and satisfaction, fostering long-term loyalty.

Increased operational efficiency

By centralizing inventory and order data across all sales channels, an omnichannel OMS reduces processing costs and eliminates inefficiencies caused by siloed systems. Real-time inventory visibility prevents stock imbalances, ensuring accurate demand forecasting and smarter replenishment. Advanced order routing logic selects the most optimal fulfillment location, balancing speed and cost-effectiveness. Additionally, automation streamlines customer service operations by providing instant access to order history, shipment status, and return eligibility—allowing support teams to resolve issues faster with fewer resources.

Enhanced revenue growth

A seamless omnichannel experience directly impacts conversion rates. Customers with access to accurate stock availability and convenient fulfillment options are less likely to abandon their carts. Optimized fulfillment strategies also reduce last-mile delivery costs, making operations more profitable. By consistently delivering fast, reliable, and flexible shopping experiences, retailers increase customer satisfaction and drive higher lifetime value and repeat purchases.

Retailers who rely on fabric OMS for omnichannel fulfillment experience tangible results, including a 30% increase in conversion rates, a 30% reduction in total cost of ownership (TCO), and a 3% decrease in split shipments—all backed by a 99.99% uptime for uninterrupted operations.

Building a robust omnichannel order management system

To fully capitalize on the benefits of an omnichannel strategy, retailers must implement a scalable and intelligent OMS. This requires seamless inventory, fulfillment, and customer experience coordination through cutting-edge technology and data-driven processes.

Centralized inventory management

A robust omnichannel OMS functions as a unified, enterprise-wide inventory hub, aggregating inventory data across warehouses, brick-and-mortar locations, third-party suppliers, and fulfillment centers. By maintaining a single source of truth, retailers can effectively manage inventory, prevent discrepancies, eliminate overselling, and enable real-time demand forecasting. Advanced AI-driven stock replenishment mechanisms adjust inventory levels dynamically, reducing holding costs while ensuring product availability in high-demand regions.

Order routing and fulfillment optimization

Intelligent order orchestration is at the core of a high-performing OMS. The system dynamically evaluates order fulfillment pathways based on predefined business rules, factoring in real-time inventory availability, shipping costs, warehouse proximity, and last-mile logistics efficiency. By implementing distributed order management (DOM), retailers can optimize fulfillment flows through ship-from-store, designated online fulfillment centers (or “dark stores”), micro-fulfillment centers, or traditional warehouses, ensuring cost-effective, expedited delivery. Machine learning algorithms continuously refine routing logic, improving fulfillment efficiency over time and reducing split shipments, directly lowering logistics expenses.

Customer-centric order management

A modern omnichannel OMS must deliver a frictionless, hyper-personalized customer experience. By offering flexible fulfillment options—such as BOPIS, curbside pickup, same-day delivery, and expedited shipping—retailers can empower consumers to choose the most convenient fulfillment method. Additionally, proactive order tracking powered by real-time logistics data ensures customers receive timely, accurate purchase updates. AI-driven customer support automation enables instant order modifications, seamless returns management, and personalized post-purchase engagement, further strengthening brand loyalty.

Leverage fabric for a superior omnichannel strategy

As consumer expectations for seamless, integrated shopping experiences continue to rise, retailers must adopt modern solutions to stay ahead. Implementing a robust omnichannel OMS enhances operational efficiency, strengthens customer relationships, and drives long-term revenue growth.

fabric OMS is designed to help businesses achieve omnichannel excellence. With a centralized inventory management platform, retailers gain real-time visibility and control over stock across all sales channels, eliminating overselling and stockouts. Intelligent order routing ensures the most efficient and cost-effective fulfillment, optimizing delivery speed and reducing logistics expenses. Additionally, fabric’s AI-powered system enhances the customer experience with seamless order tracking, flexible fulfillment options, and automated customer support. This means the system uses artificial intelligence, like machine learning, to automate tasks, personalize experiences, and make decisions to improve efficiency and customer satisfaction.

fabric reimagines order management with cutting-edge AI-driven capabilities, empowering retailers to meet the demands of modern consumers while maintaining operational agility. Don’t let outdated systems hold your business back—schedule a demo today to learn how fabric can unlock the full potential of omnichannel order management for your brand.

---