Which Order Management Type is Perfect for My Business?

Managing orders might not be the most fulfilling part of running a business, but it’s the backbone of everything else. If you can’t efficiently track, fulfill, and update your orders, it doesn’t matter how good your marketing is or how great your products are. Customers expect fast, seamless service, and if you don’t deliver (literally), they’ll head straight to your competition.

So, what’s the best way to manage orders? That depends. A tiny handmade jewelry brand selling 20 orders a month doesn’t need the same system as a growing DTC brand scaling past 10,000 orders. As you expand, so do the demands on your back-end operations. And if you don’t keep up, it’s only a matter of time before things spiral into chaos—missed shipments, incorrect stock levels, frustrated customers, and a customer support inbox flooded with complaints.

In this article, I'm going to break down the five main types of order management systems (OMS), starting with the simplest and working our way up. Whether you’re just starting out or ready for a high-tech solution, there’s something here for you.

1. Manual Order Management

Ah, the good old days—pen and paper, spreadsheets, maybe a whiteboard with an ever-growing list of orders. If you’re still managing orders manually, you probably have a love-hate relationship with your system. On one hand, it’s familiar, straightforward, and costs basically nothing. On the other hand… it’s a total nightmare once you start scaling.

Think about it. Every order has to be manually recorded, checked, cross-checked, and updated. One small mistake—like misplacing a decimal or forgetting to mark something as “shipped”—and suddenly, you’ve got a customer asking where their order is. And you? You’re scrambling through spreadsheets trying to figure out what went wrong.

But here’s the real kicker: manual order management is a time sink. Every hour spent on tracking orders is an hour NOT spent on growing your business, marketing, or developing new products. Plus, the bigger your business gets, the more overwhelming it becomes. Once you start dealing with multiple suppliers, warehouses, or even sales channels, your trusty spreadsheet starts looking less like a helpful tool and more like an outdated relic that’s holding you back.

So, when is manual order management okay? Only if you’re running a micro-business with a low volume of orders—like a solopreneur handling a few custom commissions each month. Even then, I’d argue that investing in a simple digital system will save you a world of stress.

Are you fine with spending your nights double-checking spreadsheets and tracking shipments by hand? Or would you rather set up a system that does it for you while you focus on growing your business?

e-commerce-platform">2. Using an E-Commerce Platform

If you’re running an online business, you probably already use an e-commerce platform like Shopify, WooCommerce, or BigCommerce. And hey, these platforms do a solid job of keeping track of your orders—at least in the beginning.

When you’re just starting out, it’s tempting to rely entirely on your e-commerce platform as your order management system. After all, it automatically records every sale, tracks order statuses, and may even have some built-in inventory features. It’s simple, convenient, and—best of all—already integrated with your online store.

But here’s where things start to get tricky. An e-commerce platform works well if:

• You only sell through your own website (no marketplaces like Amazon or eBay).
• Your order volume is still relatively low.
• Your inventory and fulfillment are easy to manage (e.g., all orders ship from one location).
• Your customer service team has full access to your e-commerce platform.

If that’s you, great! You might be fine for now.

But what happens when you start selling on multiple platforms? Suddenly, your orders are coming in from Shopify, Amazon, and maybe even a brick-and-mortar location. How do you keep everything in sync?

And what if you want to scale? The moment you start introducing new warehouses, suppliers, or fulfillment methods (like dropshipping), your e-commerce platform starts to feel like a rigid, one-size-fits-all solution that… well, doesn’t actually fit.

This is where many businesses start running into major bottlenecks. Your e-commerce platform might tell you when an order was placed, but it doesn’t necessarily help you manage the logistics behind the scenes—especially when you’re juggling inventory, multiple sales channels, and fulfillment processes.

So, what’s the verdict? Using an e-commerce platform for order management is fine—until it’s not. The moment you start growing beyond a single sales channel, it’s time to start looking for a more sophisticated solution.

When an E-Commerce Platform is Enough:

• You only sell through your own website.
• Your warehouse is directly connected to your sales system.
• You don’t plan to expand beyond simple fulfillment.

When You Need More:

• Selling on multiple channels like Amazon, eBay, or social media.
• Managing complex logistics, like multiple warehouses or dropshipping.
• Scaling your business while maintaining a seamless customer experience.

If your operations are getting more complex, you’ll need a more robust OMS that integrates with multiple systems.

3. Standalone Order Management Software

You've outgrown spreadsheets, and your e-commerce platform isn't cutting it anymore—now what? Enter standalone order management software—a dedicated tool that helps keep your orders, inventory, and fulfillment in check. Think of it as a more structured, efficient way to handle orders without going all-in on a massive, complex system.

Why Businesses Turn to Standalone OMS

Imagine you're running a booming e-commerce business. Orders are rolling in from your website, Amazon, and maybe even a few brick-and-mortar locations. Keeping track of everything manually is chaos, and your e-commerce platform's basic tracking features just don’t cut it anymore.

Standalone order management software (OMS) is designed to centralize all this data. Instead of scrambling between different systems, a standalone OMS lets you track every order from purchase to fulfillment in one place. You can see where an order is, whether it’s been packed, shipped, or delayed. Some of the better systems also integrate inventory and warehouse management, ensuring you never sell what you don’t have.

And let’s be honest—nothing is worse than telling a customer that their order isn’t coming because of a stock miscalculation. That’s the kind of thing that tanks your reputation fast. A standalone OMS helps prevent these issues by keeping your stock levels accurate and your order process streamlined.

It's also worth considering that many standalone order management systems come with bonus features like:

• Inventory tracking – Know exactly what’s in stock, what’s running low, and what’s collecting dust in your warehouse.
• Customer order history – See what customers have purchased before, so you can personalize your marketing efforts and offer better service.
• Automated order routing – Send orders to the right warehouse, supplier, or fulfillment center without lifting a finger.

Benefits of Standalone OMS:

• Centralized order tracking across multiple sales channels.
• Integration with e-commerce platforms, accounting tools, and shipping carriers.
• Enhanced inventory visibility and warehouse management.

The Downsides of Standalone OMS

Now, before you rush to buy one, let's talk about the limitations. A standalone OMS is just that—standalone. It might integrate with your accounting software, shipping carrier, and e-commerce platform, but it’s still another separate system. That means you might end up juggling multiple software solutions, each with its own quirks, glitches, and data silos.

Here’s a scenario: You need to process an order, but the OMS isn’t talking to your shipping platform. Now, you’re manually updating tracking numbers, which completely defeats the purpose of automation. Or maybe your OMS and accounting software don’t sync properly, leading to revenue discrepancies and hours of frustrating troubleshooting.

Scalability can also be an issue. What happens when you expand to international markets? What if you start using a third-party logistics provider (3PL)? A standalone OMS might not be flexible enough to grow with your business, leaving you looking for yet another system down the road.

In short, standalone OMS can be a fantastic step up from manual order management. It's a a solid choice for businesses looking to step up from spreadsheets and basic e-commerce tracking but aren’t quite ready for a massive enterprise solution. If you want to keep your business organized without overcomplicating things, this could be your best bet.

Take note that standalone OMS systems  might not be the perfect fit for every business. Especially when you're starting to think big—scaling up, adding new sales channels, or refining your fulfilment process—you might need something more integrated. Which brings us to…

4. Enterprise Retail Platform (ERP)

At some point, many businesses hit a wall. You’re managing orders, inventory, CRM, payroll, and logistics, and everything is scattered across five different systems. Nothing syncs perfectly, and your team spends more time fixing software issues than actually fulfilling orders. That’s when an ERP (Enterprise Retail Platform) starts sounding really tempting.

What an ERP Can Do for You

While standalone OMS is a major upgrade, ERP takes it much, much further.  It’s an all-in-one system that connects nearly every aspect of your business:

• Order management: Track, process, and update orders in real time.
• Inventory management: No more overselling or stockouts.
• Warehouse & logistics: Keep your fulfillment centers running smoothly.
• CRM (Customer Relationship Management): Maintain a detailed history of every customer.
• Accounting & payroll: Automate invoices, expenses, and payments.

With everything housed in one system, your business operations become seamless. No more data silos. No more switching between multiple platforms. Everyone—from your warehouse staff to your accounting team—works from the same, up-to-date information.

The Hidden Challenges of ERPs

But before you get too excited, let’s talk about the reality of implementing an ERP. Spoiler alert: It’s not as easy as flipping a switch.

For starters, ERP systems are notoriously complex to set up. They require a huge investment of time, money, and technical expertise. Gartner estimates that 50% to 75% of ERP projects fail to meet expectations. Why? Because ERPs are massive, rigid systems that demand a total overhaul of your operations.

Let’s say you’re a fast-growing retail brand. You want an ERP to bring everything under one roof, but that means integrating it with your existing software, training your staff, and potentially hiring ERP specialists just to keep it running. That’s months—sometimes years—of implementation before you see any real benefits.

And then there’s the issue of customization. ERPs are built to be one-size-fits-all solutions. That means they come loaded with features you might never use (but still have to pay for), while the specific functionalities you need may require expensive custom development.

So, is an ERP the holy grail of order management? Maybe—but only if you’re prepared for the commitment. For smaller and mid-sized businesses, it often ends up being too much system for too little return.

5. A Digital Operations Platform (DOP)

Now, if you've read through the previous sections, you might be thinking, "Okay, so every system has its flaws… is there actually a perfect solution?"

Well, while no system is 100% flawless, there is one that comes pretty darn close—especially if you're serious about scaling your business, managing orders efficiently, and maintaining a seamless customer experience.

Enter the Digital Operations Platform (DOP). 

This is the big leagues of order management. A DOP isn’t just another piece of software—it’s a fully integrated, flexible, and intelligent system that unifies every part of your retail operations. It takes everything from inventory management to shipping logistics, customer relations to forecasting, and wraps it all up in one centralized, easy-to-use solution.

So, what makes a DOP different from, say, an ERP system?

Glad you asked.

While ERP software is designed to manage multiple business functions, it’s often rigid, overly complex, and not tailored for the fast-paced, ever-evolving world of modern retail. DOPs, on the other hand, are built specifically for retail brands, meaning they offer far more agility and adaptability when it comes to things like multichannel selling, rapid fulfillment, and dynamic inventory management.

With a Digital Operations Platform, you can:

1. Centralize and automate order management across multiple sales channels (your website, marketplaces like Amazon, brick-and-mortar locations—you name it).
2. Gain real-time visibility into inventory, reducing stockouts and overselling nightmares.
3. Seamlessly integrate with third-party logistics (3PLs), warehouses, and fulfillment partners.
4. Enhance customer experience by ensuring orders are processed quickly, accurately, and efficiently.
5. Scale with ease—whether you're adding new product lines, expanding to international markets, or shifting business models (wholesale, DTC, subscription-based, etc.).

But perhaps the biggest advantage? Flexibility.

Unlike ERPs, which are often bloated with features you don’t need (and painfully difficult to customize), DOPs are modular and adaptable. That means you can tailor the platform to fit your business like a glove, without wasting money on unnecessary bells and whistles.

Simply put, if you're looking for a system that actually grows with you, a Digital Operations Platform is the way to go.

Which OMS is Right for You?

At this point, you might be wondering, “Which system is right for me?”

And the truth is, it depends on your business size, complexity, and growth ambitions.

• Just starting out? If you're a tiny operation just getting started, manual order management might work for you (but only for a short while). A simple e-commerce platform may be enough—for now.
• If you’re selling exclusively through your website, using an e-commerce platform might be just enough.
• Scaling up? If you need more functionality, standalone order management software could be a solid middle ground.
• If you’re running a large, multi-faceted enterprise, an ERP could help unify your business operations.
• Serious about retail success? If you want the best solution for modern, growing, and ambitious retail brands—a Digital Operations Platform is your best bet. A Digital Operations Platform offers the best flexibility, scalability, and automation.

Conclusion

Your orders are growing—make sure your business is ready to handle them with ease. You have to choose the order management system that's right for the current way you run your business. But don't be stuck looking at your current situation either.

The key is to think long-term. Where do you see your business in five years? Do you want to remain a small shop, or are you aiming for explosive growth? If scalability, efficiency, and customer satisfaction are top priorities, investing in the right system now will save you a world of pain (and money) down the road.

If you’re serious about optimizing your order management, scaling your brand, and keeping your customers happy, now is the time to act. Don’t wait until your current system breaks under pressure—because by then, it’s already too late.

Whether you choose to go the e-commerce platform, OMS, ERP, or even DOP route, the goal should always be to streamline your operations, reduce errors, and not limit yourself to a system that will be unable to adapt as your business grows and changes.