Table of Contents
- Introduction
- The Importance of Multichannel Order Management System
- Multichannel vs. Omnichannel: What’s the Difference?
- When to Invest in a Multichannel OMS
- Key Features to Look for in a Multichannel OMS
- OMS vs. IMS vs. CMS
- OMS vs. ERP: What Do You Need?
- Top Tips for Implementing Your OMS
- Conclusion
- FAQ
Introduction
Are you considering taking your business to the international stage? Imagine the thrill of reaching customers far beyond your local market, exponentially growing your brand's visibility and revenue. With globalization in full swing, expanding internationally is no longer a luxury—it’s a strategic move for businesses aiming for substantial growth. This was the case for Spreetail, which experienced a monumental 6X growth in Europe by leveraging efficient strategies and partnerships.
But international expansion is fraught with challenges—logistics, regulatory compliance, and market research, to name a few. The purpose of this blog post is to guide you through the critical components of international expansion. By the end of this article, you'll know what it takes to successfully enter and thrive in international markets. We’ll cover why multichannel order management is pivotal, the differences between multichannel and omnichannel strategies, and provide actionable tips to set you on the path to global success.
Ready to explore how to take your business beyond borders? Let’s dive in.
The Importance of Multichannel Order Management System
What is a Multichannel Order Management System?
A multichannel order management system (OMS) is a unified platform to manage orders across different sales channels. If you’re serious about scaling your ecommerce business, a multichannel OMS is essential. Imagine trying to juggle orders from a brick-and-mortar store, your website, Amazon, Etsy, and eBay, all while manually updating a spreadsheet. It’s a recipe for chaos.
A robust OMS brings all order details into one workspace, making it easier to manage inventory, process orders, and offer a seamless customer experience. Consider JAF Comics, a business that saw a 10x increase in growth by switching from spreadsheets to an automated OMS.
Why Multichannel Management is Crucial
Relying on one sales channel limits your market potential. By tapping into multiple channels, you not only increase your market reach but also borrow credibility from well-known platforms. For example, you may have a stellar product, but without the reputation and reach of an established marketplace like Amazon, potential customers may remain unaware of your brand.
However, managing orders across multiple channels can quickly become complicated. Without an OMS, you risk over-selling or running out of stock, causing customer dissatisfaction and lost sales. The right OMS allows you to manage orders effortlessly and provides integrated reporting, making it easier to gauge your business’s health in real-time.
Multichannel vs. Omnichannel: What’s the Difference?
Multichannel: Diverse but Separate Channels
In multichannel selling, you manage different sales avenues separately. This means you might sell on your website, Amazon, and through a physical store, but each channel operates in isolation. You advertise and sell through multiple platforms—each aimed at expanding your market reach.
Omnichannel: Integrated Customer Experience
An omnichannel strategy takes multichannel selling a step further by providing a seamless shopping experience across all channels. This approach allows customers to interact with your brand through various touchpoints in a unified manner. For example, a customer should be able to buy an item online and return it in-store. Although omnichannel strategies are more complex to implement, they significantly enhance customer loyalty and satisfaction.
For most growing businesses, starting with multichannel management is advisable. Once you’ve mastered it, transitioning to an omnichannel approach can be your next step towards providing an unmatched customer experience.
When to Invest in a Multichannel OMS
Knowing when to invest in a multichannel OMS can save you time, money, and stress. Here are some indicators that it’s time to make the leap:
- Increasing Sales Volume: If your sales are rapidly increasing and you can't keep up with orders, it’s time for an OMS.
- Expanding Sales Channels: Selling through more than one platform incapacitates manual management systems.
- Customer Complaints: If you are getting complaints about delays, wrong shipments, or out-of-stock items, an OMS can resolve these issues.
- Operational Inefficiencies: An OMS can streamline processes, reducing the need for manual intervention, thus freeing up time and resources.
If any of these resonate with you, investing in a multichannel OMS is a strategic move worth considering.
Key Features to Look for in a Multichannel OMS
Integrated Reporting
Understanding the overall performance of your business requires consolidated data from all sales channels. Look for an OMS that integrates reports across channels, giving you a comprehensive view of your sales, revenue, and inventory.
Shipping Management Integration
Efficiency in order processing and shipping can significantly boost customer satisfaction. An OMS that integrates with your shipping management system allows you to process orders quickly and select the most cost-effective shipping options.
Automation Capabilities
Automation is the backbone of an effective OMS. Here's what you should look for:
- Inventory Sync: Automatically updates inventory across all channels.
- Order Routing: Directs orders to the appropriate fulfillment center.
- Customer Notifications: Sends automated updates to customers about their orders.
These features minimize errors and free up your team to focus on more critical tasks.
OMS vs. IMS vs. CMS
Understanding the nuances between different management systems can be perplexing, so here’s a quick breakdown:
- Order Management Software (OMS): Manages orders, customer information, and order history.
- Inventory Management Software (IMS): Tracks stock levels to prevent overstocking or stockouts.
- Channel Management Software (CMS): Manages and optimizes product listings and pricing across various sales channels.
The good news is that comprehensive platforms like Linnworks often include features from all three categories, offering a one-stop solution.
OMS vs. ERP: What Do You Need?
An ERP system offers an all-encompassing solution that integrates finance, HR, CRM, and supply chain functions. However, for small to medium-sized businesses, an ERP can be overkill. An OMS is simpler to implement and focuses solely on order management, making it a more practical choice for smaller operations.
Top Tips for Implementing Your OMS
Clean Up Your Spreadsheets
Ensure your data is accurate and up-to-date before transitioning to an OMS. Standardize formats, remove duplicate records, and ensure that every data entry is consistent.
Implement Gradually
Switching systems can be overwhelming. Gradually implement your OMS by initially using it to manage orders for just a few products or sales channels. This phased approach allows you to test the system and resolve any issues before a full-scale rollout.
Train Your Team
Your team’s effectiveness with the new system hinges on good training. Create simple guides or tutorial videos to help them understand the new process.
Leverage Integration Opportunities
Maximize the value of your OMS by integrating it with other vital business tools—ecommerce platforms, CRMs, accounting software, and shipping systems.
Automate Where Possible
Always seek opportunities for automation. Whether it’s updating stock levels or sending customer notifications, automating repetitive tasks can save both time and resources.
Conclusion
Embarking on international expansion can be daunting. However, with a strategic approach and the right tools, your business can achieve scalability and efficiency. A robust multichannel order management system not only streamlines processes but also positions your business for sustainable growth.
Ready to take your business international? Equip yourself with a multichannel OMS and set the stage for long-term success. Your future self—and your bottom line—will thank you.
FAQ
Q1: Why is a multichannel OMS important for international expansion?
A multichannel OMS consolidates orders from various channels into a single platform, making it easier to manage inventory, process orders, and offer a seamless customer experience, which is crucial for international markets.
Q2: What’s the difference between multichannel and omnichannel?
Multichannel involves separate management of different sales channels, while omnichannel offers a unified, seamless customer experience across all channels.
Q3: How do I know when to invest in a multichannel OMS?
If you are experiencing rapid sales growth, expanding sales channels, increasing customer complaints, or operational inefficiencies, it’s time to consider a multichannel OMS.
Q4: What features should I look for in a multichannel OMS?
Key features include integrated reporting, shipping management integration, and automation capabilities.
Q5: Do I need an OMS or an ERP?
For small to medium-sized businesses, an OMS is usually sufficient and focuses on order management, while an ERP is more complex, integrating various business functions.
Equip your business with the right tools and strategies, and you’ll be well on your way to conquering new markets and achieving global success.
