https://www.xstak.com/guides/boost-your-ecommerce-business-with-order-automation

1. Boost Y
our Ecommerce
Business with Order
Automation

2. Boost Y
our Ecommerce Business
with Order Automation
The eCommerce market is booming and it’s flourishing at a rapid
rate. There are around 12 million to 24 million eCommerce
websites on the internet whereas the number of online buyers is
about 2.14 billion.
The global eCommerce revenue is expected to reach US$4.23
trillion in 2022. And it’s growing with a CAGR of 11.58% which
means if you aren’t selling online, you are missing out big time.
But the biggest problem that eCommerce businesses are facing
is during the order management process.
Most online retailers don’t know how to integrate multiple sales
channels (online/offline and websites/marketplaces) and
smooth out their order management operations. But this is
something that can easily be accomplished through order
automation.

3. What is an automated order
process?
Order processing automation refers to the system or technology
employed to make order processing more efficient. With
automation, businesses can lessen manual workload and
improve their operational efficiencies by reducing human errors.
The order automation process streamlines the workflow of your
whole retail operation. Thus, it speeds up the procedure from
order receiving to fulfillment and delivery. It involves integrating
an order management system so that your business can thrive
and run at its full capacity.
In this guide, we have described 8 essential steps of order
processing. We have pointed out the benefits of automating
these steps and how you can avoid the pitfalls of manual
processes.

4. Order placement is the first step in the order management
process. On most eCommerce platforms, an order is created
once the customer clears payment at the checkout page. This
happens in an automatic manner but the procedure may vary
depending on the platform you are using for eCommerce.
That’s because Magento, Shopify, eBay, Amazon, and
BigCommerce follow different processes. Still, there is plenty
of room for improvement in terms of order automation on
each platform.
Order Placement
01
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5. Automation Possibilities
You can connect multiple marketplaces but by automating the order creation
process, you can manage them on one dashboard. This means you don’t have to log-
in to each sales channel to download or process your orders. Instead, all your orders
will be managed and displayed on one screen.
Order creation automation will not only improve visibility but also reduce risk
factors. For example, you can keep track of your inventory levels in real-time. You
can view how much stock is left on each platform on a single central screen.
www.xstak.com
Automation Drawbacks
Automating the order creation process can increase efficiency but it also has its
drawbacks. There are chances of wrong placement or missing out on orders when
sales channels are interconnected. Nothing is more woeful for a retail business than
wrong orders. It can ruin your finances and reputation which is why you should keep
an eye on the process.
You can reduce the negative impacts of automation on order creation by investing in
an effective order management system. An omnichannel OMS can help you keep the
process in order and notify you about orders which are missed or haven’t been
processed yet.

6. It’s crucial for retail businesses to verify payments before
shipping orders. This is easy for small businesses but
cumbersome for large enterprises. Especially, keeping track of
payment status is more difficult in cases of deposits and pre-
orders. That’s where you’ll need an order management system
to verify payments in real-time.
Payment V
erification
02
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7. www.xstak.com
Automation Possibilities
Almost all systems have a payment status field to identify payment status. It is
updated automatically from pending to paid and thus helps in kickstarting the order
fulfillment process.
You can also automate the payment verification by implementing automated
authorization on checkout. In fact, customers prefer this process to ensure that their
payments have been accepted.
Automation Drawbacks
The main risk involved in automating the payment verification process is identifying
mistakes. If there’s a glitch, there are chances that you may not notice it soon.
Therefore, it’s essential that you keep checking your transitions and frequently
compare it with your accounts. It’s an easy way to ensure that payments are being
transferred regularly.

8. The biggest challenge in the order management process is
perhaps managing your inventory. Once the customer has
placed an order, make certain the items attached to it are
mentioned properly in your inventory. Only an effective order
management system can help you keep track of and update
your inventory in real-time.
Inventory Reservation
03
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Automation Possibilities
An all-in-one order management system can integrate your ERP, POS, and inventory
management tools. Through automation, you can quickly update inventory status
and ensure that all online/offline sales channels show correct inventory levels.
You can automatically manage inventory for orders received through Shopify,
Magento, or Amazon. Also, you can set automation rules for manual orders placed
over the phone, in person, or wholesale. You can set up specific rules to manage
inventory for the right sales channels.
Automation Drawbacks
Automating inventory requires training to ensure your team understands what rules
you have set for inventory reservation. Otherwise, your team may end up holding an
unnecessary stock or pushing false stock. Such mistakes may lead to overselling and
inventory depletion or dead stock.

10. The quality assurance step varies from industry to industry
and business to business. Some prefer to review each order
while others are just happy to pass orders to their
warehouses. The review of product quality is associated with
the chances of fraud, the number of orders or the value of an
order.
Review of Product Quality
04
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11. Automation Possibilities
Automating your quality assurance process seems like a great idea but it requires
vetting. You cannot solely rely on it as you may have to test the process frequently.
To avoid problematic orders, you’ll have to keep reviewing and updating your
checkpoints.
Automation Drawbacks
Through automation, your business can set distinctive criteria to ensure product
quality. You can set rules after deciding which order should be reviewed manually
and which should go straight for shipping. This will improve work efficiency while
reducing order process time.
By setting rules, you can also identify key points for which reviews are mandatory.
Thus, your team will no longer have to review each placed order but only those
which you have flagged in your management system.
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12. After shipment approval, comes the dispatch process which is
another complex procedure in itself. The complexity may vary
depending on whether you have a single or multiple
warehouses. Then you may have to manage your own delivery
fleet or deal with third-party logistics (3PLs).
Dispatch Order for Fulfillment
05
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13. Automation Possibilities
Automating order fulfillment can reduce the order processing time but it certainly
has its limitations. You may end up sending the wrong order or shipment through
the wrong route if your inventory data is inconclusive. However, this is a situation
which you can overcome by using business intelligence (BI) technology.
The next big risk is managing large and multiple orders and that too through 3PLs.
That’s why you should invest in an order management tool which can work with
third-party delivery systems. You can mitigate issues through integration to ensure
orders are dispatched on time.
Automation Drawbacks
Routing orders is far more complex and tiresome if you are a multi-location
business. Not only you’ll have to pick the right, and nearest warehouse but also the
most suitable route for order delivery. This is where an omnichannel order
management system can help you. You can automate order fulfilling and route
orders by pre-selecting the optimal warehouse for selected areas.
www.xstak.com

14. Tracking your orders is crucial to ensure customers get them
on time. It improves the customer satisfaction level while you
remain assured that orders are on their way. Businesses
usually update order status once they are dispatched from
the warehouses.
Order T
racking
06
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15. Automation Possibilities
Automation requires rules and if you have any gaps, your order status may become
a mess. You must regularly check and evaluate whether your order status feature
is working properly. Otherwise, you may end up confusing your customers that
their orders have been shipped while they are still on their way.
Automation Drawbacks
Through automation, your business can set distinctive criteria to ensure product
quality. You can set rules after deciding which order should be reviewed manually
and which should go straight for shipping. This will improve work efficiency while
reducing order process time.
By setting rules, you can also identify key points for which reviews are mandatory.
Thus, your team will no longer have to review each placed order but only those
which you have flagged in your management system.
www.xstak.com

16. The next step is fulfilling and packing which requires manual
work. This is where orders are often misplaced and packed or
labeled wrong. The high volume of orders, workload and
seasonal sales often make things worse.
Order Shipment
07
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17. Automation Possibilities
Automating the order shipment process can reduce stress and let you manage
orders effectively. For example, by letting your order management system do
labeling, you can avoid mistakes. You can print out addresses automatically which
will then further help you pick suitable carriers or 3PLs
Automation Drawbacks
Routing orders is far more complex and tiresome if you are a multi-location
business. Not only you’ll have to pick the right, and nearest warehouse but also the
most suitable route for order delivery. This is where an omnichannel order
management system can help you. You can automate order fulfilling and route
orders by pre-selecting the optimal warehouse for selected areas.
www.xstak.com

18. Tracking your orders is crucial to ensure customers get them
on time. It improves the customer satisfaction level while you
remain assured that orders are on their way. Businesses
usually update order status once they are dispatched from
the warehouses.
Order Delivery & Returns
Management
08
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19. Automation Possibilities
Automation requires rules and if you have any gaps, your order status may become
a mess. You must regularly check and evaluate whether your order status feature
is working properly. Otherwise, you may end up confusing your customers that
their orders have been shipped while they are still on their way.
Automation Drawbacks
Through automation, your business can set distinctive criteria to ensure product
quality. You can set rules after deciding which order should be reviewed manually
and which should go straight for shipping. This will improve work efficiency while
reducing order process time.
By setting rules, you can also identify key points for which reviews are mandatory.
Thus, your team will no longer have to review each placed order but only those
which you have flagged in your management system.
www.xstak.com

20. W
ant to maximize your
operational efficiencies with
order automations?
BOOK A DEMO
XStak OMS helps you automate the whole order fulfillment process from the
moment a customer places an order on any of your sales channels till its
fulfillment by 3PL logistics partner or your managed fleet.
XStak OMS enables retailers to automate their multi-location order management
while synchronizing real-time inventory data from offline and online channels.
Reduce the cost while speeding up your order management process by up to 25%
with XStak’s OMS