Whether you’re a small business owner or a seasoned eCommerce veteran, effectively managing your orders is essential for success and customer satisfaction. When it comes to managing Amazon orders, this game seems more challenging.
Here, we will provide valuable insights and practical tips to optimize your Amazon order management and ensure a smooth and efficient operation.
This guide from eMarspro will empower you to improve your order fulfillment rate, reduce errors, and deliver an exceptional customer experience on Amazon Marketplace.
If you’re looking for an immediate response to optimize your existing order management system on Amazon or starting from scratch, contact us now or call +1-682-472-4939 to discuss your business goals with one of our Amazon consulting experts.
What is Order Management on Amazon?
On Amazon, order management is all about handling the entire process of customer orders from the moment they click “buy” to the final delivery. It’s a complex dance with multiple moving parts, but mastering it is key to customer satisfaction, operational efficiency, and business success.
Here’s a breakdown of the key steps involved:
Order Placement: Customers browse Amazon’s website or app, select products they wish to purchase, and proceed to checkout. Once the order is confirmed, it enters the order management system.
Order Processing: After an order is placed, it is transmitted to the seller’s Amazon Seller Central account. Sellers receive notifications of new orders and begin processing them. This includes tasks such as verifying inventory availability, preparing products for shipment, and generating shipping labels.
Fulfillment: Sellers have the option to fulfill orders using Fulfillment by Amazon (FBA) or Seller Fulfilled Prime (SFP). With FBA, Amazon handles storage, packing, and shipping of products from their fulfillment centers. With SFP, sellers fulfill orders themselves while meeting Amazon’s Prime delivery standards.
Shipping and Delivery: Once orders are prepared for shipment, they are handed over to the chosen carrier for delivery. Amazon provides tracking information to customers so they can monitor the status of their orders until they are delivered.
Customer Service and Returns: Throughout the order management process, sellers are responsible for providing excellent customer service. This includes addressing customer inquiries, handling returns or exchanges, and resolving any issues that may arise post-purchase.
Order Completion: Orders are considered complete once they are successfully delivered to customers and any necessary follow-up actions, such as feedback requests or return processing, are completed.
How Does Amazon Order Management Work?
Amazon order management works differently depending on the type of seller you are.
If you’re a brand using Fulfillment By Amazon (FBA), you mainly estimate how much stock to send to Amazon’s warehouses and ensure it arrives on time.
For Seller-Fulfilled Prime merchants, it’s more complex. They must follow strict criteria to keep their Prime status, like sticking to Amazon’s returns and order cancellation policies and shipping almost all orders on the same day.
All Amazon sellers, regardless of type, must maintain specific standards. For instance, they must keep their Order Defect Rate (ODR) below 1%, meaning they need to minimize negative feedback. Also, late shipments can affect a seller’s chances of winning the Buy Box, which is crucial for sales.
To meet these standards, sellers can use tools within their Amazon account and have staff monitor orders continuously. Alternatively, they can use Amazon order management software to automate and simplify the process.
Order management Amazon involves:
- Keeping track of orders including returns and refunds.
- Ensuring fast and accurate fulfillment.
- Meeting Amazon’s standards to provide a great shopping experience for customers.
Amazon Order Management Tools for Sellers
Amazon offers a variety of tools designed to aid sellers in effectively managing their orders and optimizing their selling performance. Let’s delve into these tools and how they can be utilized:
Manage Orders Tool
Accessible through the Amazon Seller account, the Manage Orders tool provides sellers with a comprehensive overview of their current orders. Within this tool, sellers can perform various tasks such as updating order details, confirming shipments, issuing refunds, and printing packing slips. Selling must regularly update order statuses to maintain good performance metrics and ensure timely payment. To access this tool, sellers must log in to their Amazon Seller Central account, navigate the Orders section, and click on Manage Orders.
Order Reports Tool
The Order Reports tool enables sellers to access a consolidated report containing fulfillment information for all their orders. This single report offers a holistic view of order details, facilitating efficient tracking and management of the order fulfillment process. To access this tool, sellers can log in to their Amazon Seller Central account, navigate to the Orders section, and find the Order Reports option.
Amazon’s Selling Partner API
The Selling Partner API grants sellers programmatic access to their Amazon Seller Central account. This powerful API allows you to synchronize information from your Amazon account with your internal IT systems. You can leverage this API to create custom applications tailored to their specific needs, enabling them to build their own Amazon order management system. Additionally, third-party developers can utilize this API to build reliable tools that directly integrate with sellers’ Amazon accounts, enhancing their order management capabilities.
By utilizing these tools effectively, you can track orders, update statuses, and synchronize order data, delivering exceptional customer service and optimizing their selling performance on Amazon.
Third-party Order Management Software for Amazon Sellers
TopShelf by Scout
TopShelf is an advanced inventory management system designed to streamline the tracking and fulfillment of Amazon orders.
It offers:
- comprehensive features tailored for warehouse operations, facilitating efficient picking, packing, and shipping processes.
- Real-time visibility into order status ensures smooth order management from initiation to completion.
Skubana
Skubana offers a unified platform that seamlessly integrates products, fulfillment centers, and sales channels. This integration allows sellers to cater to customer needs across various channels from a single interface.
The platform provides:
- Robust automation for purchasing order generation.
- Inventory forecasting.
- Shipping deal identification.
- Cost-cutting opportunities.
Cahoot
Cahoot operates a peer-to-peer fulfillment network, connecting sellers with excess capacity to fulfill orders for other sellers. Leveraging this network enables sellers to maximize their fulfillment capacity at lower costs than traditional providers. Carefully selected high-quality warehouses ensure fast and reliable fulfillment, contributing to efficient order processing and timely deliveries.
QuickBooks Online
QuickBooks offers seamless integration between Amazon order management and accounting systems, automating order tracking and ensuring accurate financial records.
By connecting Amazon seller accounts with QuickBooks, sellers can efficiently manage Amazon FBA and seller-fulfilled fees, gaining a comprehensive view of their financial performance on Amazon.
ChannelSight’s Digital Shelf Tool
ChannelSight’s software enables sellers to monitor inventory in real-time across multiple channels, improving Amazon search rankings and increasing conversions. The tool provides comprehensive reporting, allowing sellers to identify and address frequently out-of-stock products. It also assists in monitoring pricing, feedback, search placements, and content compliance across all sales channels.
How to Make the Amazon Order Management Process Simple?
The flawless Amazon order management process needs a structured approach. You can optimize your operations and achieve a more efficient workflow by implementing the following steps.
Choosing the Right Order Management Software
The first step in your order management process is selecting the right software. With numerous options available, choosing a solution that aligns with your business needs and integrates seamlessly with Amazon’s platform is essential.
When evaluating order management software, consider features such as inventory tracking, order processing automation, and real-time reporting. Additionally, ensure the software can handle high order volumes and effectively manage returns and refunds.
Integrating Your Order Management System with Amazon
Once you’ve chosen the right order management software, the next step is to integrate it with Amazon’s platform. This integration allows for seamless data exchange between your order management system and Amazon, eliminating manual data entry and reducing the risk of errors.
Most order management software providers offer integration options with Amazon, allowing you to sync inventory levels, track orders, and update product listings effortlessly.
Automating Order Processing and Fulfillment
Automating order processing and fulfillment is one of the most effective ways to streamline your Amazon order management process. Manual order processing is time-consuming and prone to errors, while automation can significantly improve efficiency and accuracy.
You can automate order import, inventory updating, and shipping label generation tasks with order management software.
Inventory Management and Forecasting
Stockouts and overstocking can lead to missed sales opportunities and increased costs, making it essential to optimize your inventory levels. You can accurately predict demand and adjust your inventory levels by analyzing historical sales data and utilizing forecasting techniques.
This proactive approach helps prevent stockouts and overstocking, allowing for smoother order processing and improved customer satisfaction.
Optimizing Customer Communication and Support
Managing orders on Amazon goes beyond automation and efficient operations. It also involves providing exceptional customer communication and support.
Implementing a customer support system that allows for timely responses to inquiries and efficient handling of returns and refunds is crucial. Utilizing Amazon’s messaging system or integrating a customer relationship management (CRM) tool can centralize customer communication and ensure prompt and accurate responses.
Additionally, leveraging Amazon’s tools and services, such as Fulfillment by Amazon (FBA) and Amazon Prime, can enhance your customer experience. These services offer fast and reliable shipping options, increasing customer satisfaction and loyalty.
Importance of Well-Managed Order Processing on Amazon
Well-managed order processing on Amazon is essential for ensuring customer satisfaction and maximizing sales. According to a study, 71% of online shoppers consider order tracking a crucial factor in buying decisions. This means that providing accurate and timely order tracking information can significantly influence customers to make a purchase.
Slow shipping speeds can lead to lost sales, with 53% of customers abandoning their purchases due to this reason. Efficient order management plays a crucial role in addressing this issue by optimizing shipping processes, reducing delivery times, and ultimately improving the overall customer experience.
Moreover, effective order processing isn’t just beneficial for customers—it can also lead to substantial cost savings for sellers. According to the Supply Chain Management Review (2023), well-managed order processing can reduce fulfillment costs by up to 20%. Sellers can achieve greater efficiency and profitability by streamlining operations, minimizing errors, and optimizing inventory management.
In short, managing orders on Amazon strategically is vital to meeting customer expectations, reducing cart abandonment rates, and optimizing costs, ultimately contributing to the success of an eCommerce business on the platform.
Common Challenges Face by Sellers in Amazon Order Management
Understanding the challenges can help you proactively address them and ensure a smoother operation.
One of the most significant challenges in Amazon order management is dealing with high order volumes. As your business grows, the number of orders you receive will increase, making it more challenging to process and fulfill each order manually. This can lead to delays, errors, and ultimately, dissatisfied customers.
Another challenge is managing returns and refunds. Unhappy customers may request returns or refunds, and handling these requests well is vital to maintaining a positive reputation. With a streamlined process, managing returns can become more convenient and manageable, affecting your bottom line.
Furthermore, managing customer inquiries and providing timely support can be overwhelming, especially if you receive a high volume of inquiries. Failing to respond promptly or resolve customer issues can result in negative feedback and a damaged brand image.
Let eMarspro Manage Your Orders on Amazon Efficiently
Say goodbye to the hassle of manual order handling and hello to seamless, efficient operations.
Our team of eCommerce management experts will optimize your Amazon account, ensuring every order is processed swiftly and accurately, leaving your customers delighted with their shopping experience.
From inventory management to order tracking, fulfillment, and beyond, eMarspro has you covered every step.
Partner with eMarspro today and experience the difference firsthand!
