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Key Takeaways

Dancing with Data: Integrate real-time analytics to optimize decision-making processes and enhance order management efficiency. This approach helps businesses quickly adapt to changing demands and maintain smooth operations.

Automation Adventures: Utilizing automation in order processing can significantly reduce human error and speed up workflows, allowing businesses to focus on strategic growth rather than repetitive tasks.

Customer-Centric Symphony: Place customer satisfaction at the heart of order management by ensuring timely and accurate deliveries, which fosters loyalty and encourages repeat business.

Supply Chain Harmony: Streamline supply chain operations to ensure resources are available and align with demand, minimizing bottlenecks and ensuring orders are fulfilled promptly.

Future-Proof Your Systems: Invest in scalable technology solutions that can adapt to growing demands, ensuring long-term success and preventing system overloads as your business expands.

Every order that hits your system triggers a chain of critical decisions. 

Speed up processing to meet customer expectations, but rush too fast and errors multiply. Automate to scale operations, but lose the human oversight that catches costly mistakes. Keep manual controls for accuracy, but watch your competition process orders 5x faster.

As ecommerce and retail professionals, this means wrestling with fundamental questions that shape your entire operation:

Do you prioritize speed over accuracy? Trust algorithms over human judgment? Protect current workflows or risk disruption for future gains?

The stakes are immediate and far-reaching. 

A mishandled order processing strategy doesn't just mean shipping delays or inventory mismatches—it can erode customer trust, demoralize your team, and gradually cede market share to more efficient competitors. 

But get it right, and you unlock operational efficiency that transforms your fulfillment from a bottleneck into a competitive advantage.

I've spent years studying ecommerce brands navigating this transformation, and I've learned that successful order processing isn't about choosing sides—it's about understanding how to leverage both human insight and technological efficiency. 

In this guide, I'll show you exactly how to build that balance, drawing from real examples where companies got it right—and sometimes painfully wrong.

What is Order Processing?

Order processing is the process of managing and fulfilling a customer's order for products or services.

But if you're running an ecommerce business, you already know order processing isn't just about getting packages out the door. 

It's that central hub of your operation that determines whether your Tuesday morning starts with checking growth metrics or dealing with a flood of “my order is missing” tickets.

It includes managing the flow of order information between your online storefront, payment systems, warehouse operations, and shipping carriers. 

In today’s context, order processing needs to handle a lot more than it did even a few years ago:

  • Orders flooding in from everywhere (your website, Amazon, TikTok Shop—you name it)
  • Inventory updates that need to happen faster than a customer can hit “buy now”
  • Smart routing decisions between multiple warehouses
  • Lightning-fast syncs with your customer service platform
  • Juggling carrier requirements across borders

Order management has dramatically improved since the early emergence of SaaS order aggregation and shipping management applications in the early 2010s.

We’ve moved from the days of exporting CSVs with orders, transcribing those to upload into shipping applications, creating labels, then downloading shipping registers, re-transcribing back into an order CSV to upload back into the order source (e.g., Amazon, Shopify, etc.).

 

What used to take hours daily is now completely automated with easy-to-use software.

 

These tools rapidly expanded to manage inventory, distribution across multiple warehouses, management of 3PLs, optimization of carrier services, and more.

 

This evolution allows business owners and operations executives to identify bottlenecks in demand capture while improving the efficiency of fulfillment operation

photo of Eric Youngstrom

The truth is, most ecommerce businesses have outgrown the basic order processing systems they started with. 

If you're still managing orders the same way you did when you launched your store, you're probably leaving money on the table—or worse, risking those five-star reviews you worked so hard to earn.

At least 40% of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies

John Chambers, Cisco

Steps in the Order Processing Workflow

Let's talk about what really happens after your customer hits “Buy Now” (because we both know it's not exactly magic, even if we wish it was).

Maven Cosmetics order processing infographic

I'll use Maven Cosmetics, a fictional D2C beauty brand, as an example to show how each step works in practice—the good, messy and everything in between. 

1. Order placement and validation 

When a Maven Cosmetics customer places an order, a chain reaction kicks into gear:

  • Payment and shipping details verified in seconds. The system ensures these details are in order before moving on.
  • Inventory scan fires up. Real-time check across warehouses to confirm stock levels.
  • Best warehouse picked. Orders route to the closest location with available inventory, to make sure your product can be delivered in a jiffy with minimum cost. 
  • Stock levels update everywhere. Changes reflect across all sales channels—website, marketplace, and basically everywhere you sell.

2. Order picking

This is where the digital becomes physical. At Maven's warehouse:

  • Picking lists roll out. System generates lists based on order priority and warehouse layout.
  • Picking strategy is set up: 
    • Single-pick mode activates. One order, one picker—ideal for custom or complex orders.
    • Batch picking kicks in. Multiple orders picked simultaneously for max efficiency.
    • Zone picking deployed. Dedicated pickers stick to their zones, keeping things flowing.

3. Packing and labeling

Here's where shipping costs and customer experience intersect.

As Teddy Smith notes:

Considering the packaging, the most important thing is that the product arrives safely before considering the aesthetic. 

But the aesthetics are important depending on the product that you sell. The size of the packaging can also have a big impact on the cost of the shipping.

Maven's packing process includes:

  • Box matchmaking. Finding that perfect fit—because nobody wants to pay to ship air.
  • Bubble wrap ballet. Adding protection where needed, without going full bubble-wrap-everything mode (although, I do love myself some extra bubble wrap)
  • Brand magic sprinkled. Adding those little touches like thank you cards or free samples make opening the box feel like unwrapping a gift. Oh, and personally, I love tiny notes about the product or the makers. 
  • Labels locked and loaded. Tracking info that'll keep everyone in the loop.

If you’re an ecommerce owner, and while reading this step, you’re questioning whether you need custom packaging or not (to build your aesthetic), we found this lovely advice from a Reddit user. 

reddit comment screenshot
A Reddit comment on the importance of custom packaging.

4. Shipping and tracking

This step has become a major differentiator in customer experience. Key elements include:

  • Carrier speed dating. Matching each package with its perfect shipping partner.
  • Tracking goes live. Because “where's my stuff?” deserves a real answer.
  • Updates flow like Twitter. Every scan, every stop, every step of the journey shared.
  • Early warning system. Catching delays before they become that customer service call.

We helped one merchant integrate their tracking solution with their WMS.

 

The warehouse gave estimates back to our system, so we would know when the order would be shipped.

 

Instead of consumers calling and asking, ‘Where is my order?’ they could go to the website and see, ‘The order will be packed in six hours.’ This reduced WISMO (Where is my order?) queries from 37% to 4%.

Anders Ekman COO – Berenika Teter
Anders EkmanOpens new window

co-founder & COO at Ingrid

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5. Delivery and returns (if applicable) 

The final mile (and sometimes the journey back) includes: 

  • Mission accomplished. Package lands safely at its new home.
  • Return portal ready. Easy returns, because sometimes it's just not meant to be.
  • Returns processed fast. Items inspected and inventory updated promptly.
  • Refunds handled. Money back in customer accounts without the wait.

While you might instinctively know that returns are an integral part of the order fulfillment journey, these stats put them into perspective. 

Fifty-four percent of respondents actively avoid online retailers that charge for returns, while 49% are less loyal to brands that charge for returns. Additionally, 72% of shoppers say that when a retailer offers free returns, it increases their loyalty to that retailer.

If this is the scenario, then as an ecommerce store owner, what could you do better, apart from setting up processes and systems?

We found a quick idea from an employee in Reebok! 

reddit comment on how to handle returns screenshot
A Reddit comment on how to handle returns better 

💡Your instinct might tell you cancellations are better than returns. But this is not true at all. 

They can be just as resource-intensive. Many brands focus on optimizing their return process while overlooking the impact of cancellations. 

Here's why this matters:

When a customer cancels an order, you might think, “at least it hasn't shipped yet.” But in reality:

  • Orders are often picked and packed within minutes of placement
  • Products may need to be unpacked and re-shelved
  • Some items might already be in transit and need rerouting
  • Each cancellation creates multiple touchpoints for your warehouse team

What is the solution? 

  • Build in a short “processing buffer” during high-impulse sales periods (like flash sales or livestreams)
  • Create clear visibility of cancellation cut-off times for customers
  • Set up automated inventory re-allocation systems for cancelled items
  • Track cancellation patterns to identify and address root causes

Each step in this workflow needs to flow smoothly into the next, with clear accountability and tracking at every stage.

The most successful ecommerce operations, after all, have eliminated the small bottlenecks and data gaps between each step.

Why Efficient Order Processing Matters

To understand the real impact of order processing, let's continue the fictional story of Maven Cosmetics that reflects challenges common to many growing ecommerce brands.

What happens when order processing fails

Sarah, the operations manager at Maven Cosmetics infographic

Meet Sarah, the operations manager at Maven Cosmetics, a cosmetic brand experiencing rapid growth.

Their manual order processing system, which worked smoothly during their early days, started showing concerning signs of strain as their order volume multiplied.

The daily scene at their warehouse tells the story:

  • Customer service representatives spent their entire day responding to “Where's my order?” emails 
  • Warehouse staff race against time, staying late most evenings just to clear the day's backlog
  • The inventory system shows products in stock that can't be found on shelves, while other shelves hold products marked as “out of stock” in the system.

The breaking point came during their highly anticipated holiday sale. 

What should have been their biggest success became a cascade of challenges: Orders piling up faster than they could be processed. 

The inventory system was unable to keep pace with rapid sales, leading to customers ordering products that were actually sold out. 

The shipping department scrambled to expedite deliveries, while costs mounted and customer satisfaction plummeted.

The impact rippled through every part of their operation:

  • Glowing reviews turned sour. Customers became increasingly frustrated and took it out on their reputation.
  • Returns piled up like snow. The backlog grew while new orders kept flooding in.
  • Express shipping ate profits. Last-minute rescues turned manageable costs into margin killers.
  • Team spirit crumbled. Long hours and constant complaints left the warehouse crew burned out.
  • Dream sale became a nightmare. What should've been their biggest win became an all-hands crisis.

Turning chaos into opportunity

But here's where the story takes a turn. After implementing an efficient order processing system, the operation transformed. 

The new automated system brought order to chaos:

Every morning now starts with a clear, organized plan. 

Orders flow smoothly from their website and social shops into a unified system. The warehouse team follows optimized picking routes, guided by real-time inventory data. 

Customer service spends more time building relationships than apologizing for delays. Most importantly, the team has shifted from constantly fighting fires to proactively improving operations.

The transformation touched every aspect of their business:

  • Order processing became a smooth, predictable operation
  • Same-day shipping became the norm rather than the exception
  • Customer feedback focused on product experience rather than delivery issues
  • The returns process became quick and painless
  • Inventory stayed accurately tracked across all channels
  • Sales events turned into opportunities rather than challenges

While Maven Cosmetic’s journey is fictional, the operational transformation we've explored represents very real problems and opportunities in modern ecommerce. 

Basically, you can have the most beautiful product photos, the catchiest marketing campaigns, and the most competitive prices, but if your order processing is shaky, everything built on top of it becomes vulnerable.

Automated vs manual order processing

For Maven Cosmetics to get rid of printout orders and Excel sheets, they need a modern automated system. 

Here's a side-by-side look at how their old dusty process compares with their new modern one:

Process areaBefore: Manual processingNow: Automated processing
Order captureManually entered data that often led to errorsOrders flow in real-time from every sales channel
Inventory updatesBatch updates caused delays and mismatchesInstant, accurate sync across all channels
Picking processPaper pick lists with lots of room for mistakesMobile scanners guide staff for faster, accurate picks
Error rateErrors in 2-5% of ordersPractically eliminated—less than 0.5%
Processing speedEach order took 15-30 minutes to completeOrders are processed in just 2-5 minutes
ScalabilityAdding staff was the only way to keep upCan handle spikes in orders without extra hands
Customer updatesSending emails and making calls manuallyAutomated notifications keep customers in the loop
Cost per order$5-15 per order due to inefficiency$1-3 per order with streamlined operations

The reality? Most growing ecommerce businesses operate somewhere in between these two extremes. 

The key isn't to automate everything overnight – it's about identifying which processes are causing the most bottlenecks and targeting those first.

For example, one mid-sized fashion retailer I worked with, was still manually entering orders from their marketplace channels into their warehouse management system. 

By just automating this single step, they cut processing time by 60% and virtually eliminated data entry errors.

💡The goal of automation isn't to replace your team—it's to let them focus on tasks that actually need human judgment and creativity.

Marc Andreessen explains this well in his article Why AI Will Save the World:

The core mistake the automation-kills-jobs doomers keep making is called the Lump Of Labor Fallacy. 

This fallacy is the incorrect notion that there is a fixed amount of labor to be done in the economy at any given time, and either machines do it or people do it— and if machines do it, there will be no work for people to do.

When technology is applied to production, we get productivity growth—an increase in output generated by a reduction in inputs. 

The result is lower prices for goods and services. As prices for goods and services fall, we pay less for them, meaning that we now have extra spending power with which to buy other things. 

The result is a larger economy with higher material prosperity, more industries, more products, and more jobs.

Common Challenges in Order Processing (& How to Solve Them)

Now that we understand what efficiency in order processing looks like, let’s look at a couple of challenges that you need to keep in mind when running your ecommerce store: 

1. The inventory accuracy nightmare 

Let's talk about that pit in your stomach when you discover you've oversold a product during a flash sale, or that moment when your best-selling item is collecting dust because your system shows it's out of stock (spoiler: it isn't).

Inventory headaches typically show up in three flavors:

  • Stockouts. When your hottest items suddenly show “sold out” and you're leaving money on the table
  • Overstocking. When your warehouse is packed with inventory that's eating up capital and shelf space
  • Ghost inventory. When your system shows 100 units, but your warehouse team can only find 85. 

Here's what actually works:

  • Real-time syncing. Connect your OMS to warehouse scanners for instant inventory updates. When items are received or picked, your system updates immediately – no more making decisions on outdated numbers.
  • Smart thresholds. Set dynamic reorder points based on sales velocity and seasonality. Let your system alert you before stock gets critical, and automatically adjust thresholds based on historical patterns.
  • Channel management. Create separate inventory buffers for each sales channel. Whether it's your website, Amazon, or retail stores, maintain different stock levels based on each channel's unique patterns and promotion schedules.

Let's put this in perspective.

Imagine tracking 840 million garments across 6,000+ stores in 80+ countries—and knowing exactly where each piece is at any moment. That's exactly what Zara does, and here's how they make it happen.

Before any piece leaves their central warehouse, it gets tagged with an RFID chip. 

What this means in practice:

  • Store staff can find any item instantly—no more "let me check the back"
  • Stock counts are 80% faster than traditional methods
  • Each store gets precisely what it needs, twice-weekly
  • They know exactly what's selling where, in real time

So if there is one thing that you must learn from this 17.8 billion US dollar brand is this—manage your inventory well :)

With tons of ecommerce expertise in stock management, we've picked the top 10 inventory management software. Thank us later.

Amazon inventory hack

Okay, so after you get your inventory in order, we have this REALLY COOL hack that you could apply with your inventory management. 

Spencer outlines this really well in his LinkedIn post, where he demarcates that not just inventory count but where you stock your products could also affect your ranking in marketplaces.

Read the whole post below (and thank us when your Amazon search rankings go up) ⬇️

how to rank higher on amazon screenshot
How to rank higher on Amazon? Expert tip by Spencer Jacobs, Founder of Neato

2. The human error problem 

Look, we're all human—which means mistakes happen, especially with repetitive tasks like order processing. A misread SKU here, a wrong quantity there, and suddenly you're dealing with costly returns or unhappy customers.

The fix: strategic automation

Let robots handle what robots do best (repetitive tasks), while keeping humans focused on what they do best (complex decision-making).

Focus your automation on high-risk areas like order entry and validation, inventory counts, pick and pack verification or even shipping label generation. 

Amazon cracked this code by letting robots handle the heavy lifting—literally. 

Rather than having workers walk miles to find products or risk mistakes with manual inventory tracking, they've created a hybrid system. 

Here mobile robots bring entire storage pods directly to pick stations. Workers, guided by precise lighting systems, pick items and place them in tracked totes, while AI-powered robotic arms with force-feedback sensors handle the delicate task of organizing storage bins. 

This combination—where robots handle repetitive, physically demanding tasks and humans focus on quality control and complex decision-making works extremely well.

This has drastically reduced errors, achieving up to 99% accuracy in standard item handling, while making the process more efficient and less physically demanding for workers. 

Siddhartha Srinivasa, director of Amazon Robotics AI says, 

Surgically inserting automation into existing buildings is very challenging, but we're enacting a future in which robots and humans can actually work side by side without us having to dramatically change the human working environment.

💡Pro tip:

💡Pro tip:

Start with your most error-prone processes. Track where mistakes happen most often, then target those areas first for automation.

 

You don’t need to automate everything at once—even small improvements add up.

You could even schedule a trip to Amazon fulfillment centers if you’d like to see how they operate, just like Binnyker and his 9-year-old son!

amazon fulfillment center tour linkedin post
A LinkedIn post describing the Amazon Fulfillment Center tour

3. Seasonal demand fluctuations 

Predicting demand in ecommerce is like forecasting weather—one unexpected trend can throw your whole inventory plan off track. 

When you're trying to stock just right for thousands of products across multiple stores and seasons, even small miscalculations can mean empty shelves or overflowing warehouses.

The fix: smart prediction systems 

Modern AI systems do what spreadsheets and gut feelings can't—they spot patterns across all your sales channels, crunch real-time data (from weather to social trends), and automatically adjust inventory levels before problems hit.

Let’s look at Walmart.

Instead of running separate systems for their grocery and main shopping apps (which created its own headaches), 

Walmart unified their data to give their AI a complete view of customer behavior. Now their system predicts not just what customers will buy, but how they'll want to get it. 

They use big data, IoT and social media analytics to predict demand.

Social Media Analytics is all about mining retail-related insights from social channels, a perilous and personally exciting task to us.

 

When our team spent the 22nd of November feverishly following the social retail pulse on Black Friday, we knew the world wasn’t preparing for an apocalypse.

Challenges and solutions: A quick reference table 

That was a lot, so here are the main learnings to take away.

ChallengeSolutionBrand exampleReal-world result
Stockouts and overstocksRFID tagging, inventory management softwareZaraOptimized stock levels, reduced inventory costs, and ensured items are always where they need to be.
Human errorRobotics, barcode scanning, automationAmazonAchieved 99% accuracy in picking/packing, reduced returns, and lightened the physical load on employees.
Seasonality and demand fluctuationsPredictive analytics, unified data systemsWalmartAnticipated trends with accuracy, reduced overstock waste, and ensured inventory matched seasonal demand.

How to Optimize Order Processing

So you've seen the challenges. You understand the stakes. 

Now, it's time to transform your order processing from a potential nightmare into a well-oiled ecommerce machine that delights customers and keeps your team sane. Just like Sarah, from Maven Cosmetics, did. 

Ready to watch her solve problems? Let's gooooo! 

1. Streamline workflows with a centralized order management system

When your orders are coming in from six different places, but you're managing them in twelve different ways, it's time for a centralized order management system. 

Modern OMS platforms automatically route orders to the right fulfillment center, keep your inventory synced across all channels, and flag issues before they become problems.

Implementation is straightforward: start by connecting your busiest sales channels, set up automated routing rules based on factors like inventory location and shipping speed, and ensure real-time inventory updates across all platforms. 

Most brands see the biggest impact in reduced processing time and fewer overselling incidents within the first month.

Pro Tip:

Pro Tip:

Don’t try to integrate everything at once. Connect your highest-volume channels first, get those running smoothly, then expand order management across sales channels.


If you’re convinced, and you’re looking for the perfect fit for your ecommerce business, we found the best order management software on the market so you can focus on scaling.

How Maven Cosmetics did it

“Remember when we managed six channels in twelve different ways?” laughs Sarah, Maven's ops manager. “Now our OMS handles everything—from that random TikTok shop order to our biggest retail partners.”

  • Was: Spreadsheet chaos across channels
  • Now: One system, 60% faster processing

2. Enhance the picking and packing process for efficiency

Your warehouse team might be working hard, but are they working smart?

Calculate the picking rate of your operations with this simple formula: 

Picking Rate = Total Picks ÷ Total Time Spent

Here's a calculation based on Maven Cosmetics with their bestselling Rose Lipstick:

Picking stats:

  • 1,200 units picked
  • 4 pickers
  • 6-hour shift
  • Multiple warehouse zones

Calculation:

Picking Rate = 1,200 picks ÷ (4 pickers × 6 hours) 

Picking Rate = 1,200 ÷ 24 hours 

Picking Rate = 50 picks per labor hour

Today's pick and pack solutions combine mobile scanning, optimized routing, and intelligent batching to dramatically reduce fulfillment time without sacrificing accuracy.

Start with your warehouse layout—organize products based on picking frequency and create dedicated zones for different product types. 

Then layer in technology—mobile scanners to validate picks, batch picking for similar orders, and zone picking for larger operations.

The goal is to minimize walking time and maximize picking accuracy.

Pro Tip:

Pro Tip:

Map your pickers’ walking patterns for a day. You’ll be surprised how much time is spent just moving between locations. Use this data to reorganize your most-picked items closer together.

With so many different pick and pack software solutions available, figuring out which is right for you is tough. Hence, if you need to figure out which tool is best. I've got you! 

How Maven Cosmetics did it

“We mapped our pickers' routes and realized they were basically getting their daily steps in,” Sarah jokes. “Turns out, walking halfway across the warehouse for every lipstick isn't great for efficiency.”

  • Was: 3-hour fulfillment marathons
  • Now: 45-minute sprints with optimized routes

3. Implement quality checks to ensure order accuracy

You know that sinking feeling when a customer emails about receiving the wrong item? Or worse, finding out they got someone else's order entirely?

Basically, checking every single order sounds great until you're dealing with hundreds of shipments daily. 

Smart quality control means being thorough where it matters most: high-value items, complex orders, and products with high return rates.

Steps to follow for a solid quality check: 

  • Build verification into your normal workflow. Use barcode scanning at key points, weight-based checks for packaged orders, and photo documentation for premium products. 
  • Use data to identify your “problem areas”. Map and track what is going wrong, whether that's specific products, times of day, or types of orders. Focus your QC efforts there first. You might find that 80% of your mistakes come from just 20% of your processes.

How Maven Cosmetics did it

“Getting those 'wrong order' emails used to ruin my morning coffee,” Sarah admits. “Now, with barcode scanning and weight checks, they're rare enough to be shocking.”

  • Was: 5% error rate (yikes)
  • Now: 0.5% errors (much better)

4. Set up automated notifications for better customer communication

Nobody likes those generic “Your order has been shipped” emails anymore. 

Modern order tracking needs to tell customers exactly what's happening with their purchase, when they'll get it, and what to do if there's an issue—all without flooding their inbox.

Set up targeted notifications that trigger based on real events: order confirmation right after purchase, processing updates when status changes, and delivery notifications with actual time windows. 

The key is balancing information with restraint.

Your customers want to know their order is on track, but they don't need an update every time their package moves to a new sorting facility.

💡Watch your WISMO (Where Is My Order) tickets.

If you're getting lots of questions about a particular stage in your order fulfillment process, that's where you need to add more proactive communication.


To streamline the order tracking process, if you need to figure out which order tracking software is best. I've got you!

How Maven Cosmetics did it

'Your order has shipped' was our love language,” Sarah grins. “Now customers know exactly when their package will be ready—before they even think to ask.”

  • Was: 50+ daily "where's my stuff?" tickets
  • Now: 5 max, usually just special requests

5. Manage shipping labels efficiently to save time

Those tiny shipping labels might seem like a small part of your operation, but inefficient label management can create major bottlenecks in your fulfillment process. 

Modern label management can help in automating carrier selection, validating addresses before printing, and integrating with your order system to eliminate double entry.

The real efficiency comes from batch processing and system integration. 

Connect your label generation directly to your order management system, automatically validate addresses, and print in batches based on shipping priorities. 

For international orders, auto-populate customs forms and carrier documentation to save even more time.

How Maven Cosmetics did it

“Our afternoon label rush was like a daily fire drill,” Sarah recalls. “Now it's more like a smooth pit stop.”

  • Was: 2-hour label bottleneck
  • Now: 15 minutes and done

6.  Leverage EDI to streamline supply chain operations

EDI (Electronic Data Interchange) doesn't have to be that complicated technical headache everyone makes it out to be. 

At its core, it's about making your systems talk directly to your trading partners' systems—no manual data entry, no mismatched formats, no crossed wires.

Getting it right means focusing on the connections that matter most: order processing, shipping notifications, and invoicing. 

Start with your highest-volume trading partners, standardize your document formats, and automate the data flow. Most businesses see ROI within months just from reduced manual entry and fewer errors.

When setting up EDI, focus on your top 20% of trading partners who generate 80% of your transactions. Get those running smoothly before expanding to smaller partners.

How Maven Cosmetics did it

“Trading partner orders were basically a full-time data entry job,” Sarah says. “Auto-sync changed everything.”

  • Was: 4 hours of manual entry daily
  • Now: Zero touch for major partners

7.  Lock down customer feedback and returns management

A strategic returns process is one of your most powerful, yet often overlooked, tools for building customer loyalty. 

In fact, 92% of customers say they'll buy again if the returns process is easy.

Set up an online returns portal where customers can initiate returns, print labels, and track refunds. 

But don't stop there— use return data to spot product issues, identify confusing product descriptions, or flag items that might need better photos on your site. 

Your return policy should be clear enough that customer service rarely needs to explain it.

💡Track return reasons religiously.

💡Track return reasons religiously.

If you’re seeing lots of “not as described” returns, your product pages probably need work. If size issues dominate, maybe it’s time for better sizing guides.


Want to learn more about fair return strategy, hear this brilliant podcast by Zoe Kahn, Sr. Associate of Customer Experience, Chomps who speaks about her comprehensive framework for doing just this. 

After listening to this conversation, you will be able to: 

  • Understand how to collect/take action on returns feedback
  • How to measure LTV of customers who return
  • Understanding the future of returns 

How Maven Cosmetics did it

“Returns used to be where customer love went to die,” Sarah laughs. “Our new portal makes it painless.”

  • Was: Week-long return limbo
  • Now: Next-day processing

8. Track key metrics to measure and improve performance

Forget vanity metrics—you need numbers that tell you exactly where your operation stands and where it's headed.

Don’t obsess over data as a tool, obsess about the future

Jeff Beaver, CPO of Zazzle

 But tracking everything is as useless as tracking nothing. Focus on metrics that directly impact your bottom line and customer satisfaction.

Zero in on the big four: 

  • Order accuracy rate. Aim for 99%+.
  • Processing time per order. Benchmark against your industry.
  • Perfect order percentage. Orders shipped complete, on time, and damage-free.
  • Return rate. Categorized by the reason for return.

Add inventory turnover and carrying costs if you're managing your own warehouse. These numbers should drive your daily decisions and improvement efforts.

Pro tip:

Pro tip:

Create a simple daily dashboard for your team, showing just 3-4 key metrics. When everyone knows what success looks like, they’ll work smarter to achieve it.

How Maven Cosmetics did it

“Monthly reports were like reading ancient history,” Sarah notes. “Daily dashboards let us fix issues before they become problems.”

  • Was: Reactive problem-solving
  • Now: Proactive improvementsat it makes you happy. We have no limits to our world. We’re only limited by our imagination."


Signed, Sealed & Delivered: Your Processing Playbook

We've covered everything from manual Excel sheets to AI-powered warehouses. One thing's crystal clear: smart order processing is how you survive and thrive in modern ecommerce.

Basically, find the sweet spot between speed and accuracy, automation and human touch. And remember these golden rules:

  1. Your order processing is only as good as your weakest link
  2. Automation should help your team, not replace them
  3. Data drives decisions, but people drive success
  4. Small improvements compound into major wins

In the end, none of this works without the right tools. It can be your competitive edge in a market where customers expect Amazon-level efficiency from every online store.

So whether you're handling 50 orders or 5000, start small, think big, and keep optimizing your ecommerce management. 

The world of ecommerce moves fast—and so do you. Subscribe to our newsletter with the latest insights for ecommerce managers from leading experts in ecomm.

Order Processing FAQs

Oh, you still have questions? Well, look at this, we guessed what they might be and answered them for you.

How does order processing fit into the overall ecommerce supply chain?

Order processing is the central nervous system of your ecommerce supply chain, connecting inventory management, payment processing, and shipping operations. It ensures information flows smoothly between your customer’s purchase and final delivery, coordinating all steps in between.

How does order processing differ from order fulfillment?

Order processing handles the digital side of transactions, including payment verification and inventory updates. Order fulfillment manages the physical aspects, like picking, packing, and shipping products to customers.

Can I use my existing ecommerce platform to handle order processing?

Most ecommerce platforms include basic order processing features like order capture and payment processing. Advanced needs like multichannel management or complex routing usually require additional specialized tools.

What’s the best way to handle seasonal spikes in order volumes?

Successful seasonal management requires preparation through demand forecasting and temporary staff training before the spike. During peak periods, use batch processing and automated routing to maintain efficiency.

What emerging technologies are expected to transform order processing?

Artificial intelligence and automation are leading the transformation of order processing through predictive analytics and robotic systems. IoT devices enable real-time tracking and smart inventory management across operations.

How can sustainable practices be incorporated into order processing?

Sustainable order processing focuses on using right-sized recyclable packaging and optimizing delivery routes. Digital documentation and local fulfillment centers help reduce environmental impact while maintaining efficiency.

Kriti Dugar

Kriti Dugar is a freelance content writer with expertise in B2B SaaS and ecommerce. Having worked with multiple brands, agencies, and solopreneurs, she focuses on valuable, in-depth insights (via expert quotes, statistics, and real world examples) to bring out a brand's voice. A simple motto—write for humans, optimize for bots :)