A CTOs Guide: How to Build an Omnichannel Retail Technology Stack?

Omnichannel retailing is no longer a trend, it’s an expectation. As customers demand a unified experience across online and offline channels, retailers are turning to Shopify to bridge the gap. While Shopify was initially popular among small and mid-sized retailers, many enterprise brands are now migrating from platforms like Adobe Commerce (Magento) and Salesforce Commerce (Demandware) to take advantage of Shopify’s modern capabilities.

However, achieving true omnichannel success requires more than just an eCommerce platform. Enterprise retailers often face gaps in areas like order management, in-store inventory tracking, and returns processing. Additionally, with a vast number of apps available in the Shopify ecosystem, it can be overwhelming to identify the right combination of technologies needed to execute omnichannel strategies such as Buy Online Pick-Up In Store (BOPIS), same-day Ship From Store (SFS), and Buy Online Return In Store (BORIS).

This blog briefs about the architecture of a proven, scalable and seamless omnichannel retail technology stack, explaining how each component works together to help retailers achieve success in 2025 and beyond.

For a more in-depth exploration, including detailed architecture and implementation insights, don’t miss our ‘Omnichannel Retail Stack of the Decade’ whitepaper.

The Role of a CTO in Omnichannel Retail Technology

A Chief Technology Officer (CTO) plays an important role in orchestrating the retailer’s vision with the right technology investments. They are responsible for evaluating, integrating, and optimizing the retail technology stack to maintain smooth operations across all touchpoints, including eCommerce, physical stores, and warehouses.

Key responsibilities of a CTO in omnichannel retail include:

• Technology Alignment: Making sure that the retail technology stack supports the retailer’s broader business objectives, such as faster fulfillment, efficient returns processing, and enhanced customer engagement.

• System Integration: Overseeing the integration of various platforms such as eCommerce, POS, ERP, WMS, OMS and RMS to create a connected ecosystem.

• Scalability Planning: Selecting and deploying solutions that can handle high order volumes and expand alongside business growth.

• Data Security and Compliance: Implementing measures to protect customer data and maintain compliance with regulations across multiple channels.

What if a retailer doesn’t have a CTO?

Not having a dedicated CTO shouldn’t be a roadblock to omnichannel success. Many retailers rely on a VP of IT or operations teams to execute this blueprint effectively. With the right consulting partners and a well-defined retail technology stack, retailers can achieve the same level of efficiency and scalability without a dedicated CTO.

How to Build an Omnichannel Retail Technology Stack?

Retailers need a solid tech stack that connects all aspects of their business, from order capture to fulfillment and returns management. Based on years of experience with Shopify retailers, the recommended omnichannel retail technology stack includes:

A De Facto Tech Stack: Trusted by Leading Brands

Fig 1: De Facto Tech Stack

Fig 2: Ideal Tech Stack

This retail technology stack is:

• Proven: Trusted by many leading brands.

• Scalable: Handles thousands of orders per day without hiccups.

• Seamless: Comes with pre-built integrations that minimize data loss or leaks, with built-in auditing tools to quickly identify and resolve issues.

Leading retailers like Steve Madden and Gorjana (luxury jewelry brand) have leveraged a similar tech stack across 100+ stores, implementing BOPIS and SFS to achieve faster fulfillment, better inventory management, and increased revenue.

Connecting the Dots: The Role of Integration

Integration is the key to building a high-performing retail technology stack. Each system must share data fluidly to create a unified tech stack that drives efficiency and accuracy. Without proper integration, retailers risk data silos, delays in order processing, and poor customer experiences. HotWax Commerce plays an important role in this ecosystem by connecting all systems in the tech stack, making sure data flows accurately from one system to another.

Key Workflows for Omnichannel Retail Success

Let’s break down the core workflows enabled by this retail technology stack:

• Order Fulfillment: Delivering the Right Products at the Right Time

Order fulfillment is where the promise of omnichannel retail comes to life. It’s the process that converts a customer’s click into a delivered product, with multiple touchpoints working together to meet expectations. Whether shipping from stores, enabling in-store pickups, or fulfilling from warehouses, each model addresses different customer needs.

I. Ship From Store (SFS)

The SFS workflow enables retailers to leverage store inventory to meet online demand, reducing shipping times and optimizing stock utilization.

Fig 3: Ship from Store Workflow

(A) Order Capture and Download: Customers place orders on Shopify eCommerce, which are automatically downloaded into HotWax Commerce for processing.

(B) Order Validation and Routing: Downloaded orders are in Created status, HotWax Commerce validates them based on predefined criteria. Approved orders are placed in a Brokering Queue, where HotWax’s brokering engine intelligently selects the best fulfillment location, whether a store or warehouse, based on custom routing strategies.

(C) Fulfillment at the Store: Once assigned to a store, order details are reflected in HotWax’s Fulfillment App and store associates also receive the push notifications for the same.

(D) Shipping and Email Updates: HotWax Commerce integrates with carriers like UPS and FedEx to book shipments and generate shipping labels. Customers receive real-time email notifications through Klaviyo, keeping them informed at every step.

(E) Fulfillment Updates: Once shipped, orders are Completed in HotWax. Fulfillment updates are synced to Shopify, marking the order as Fulfilled. HotWax also syncs the fulfillment data to NetSuite to create and mark Item Fulfillment records as Shipped, generate invoices, and record payments for financial accuracy.

(F) Delivery Confirmation: HotWax also triggers a final email confirmation when the order is delivered, providing full visibility and a smooth post-purchase experience.

II. Buy Online Pick-Up In Store (BOPIS)

BOPIS combines the convenience of online shopping with the immediacy of in-store pickup, offering customers greater flexibility while increasing foot traffic to stores. Here’s how it works:

Fig 4: Buy Online Pickup In-store Workflow

(A) Inventory Availability Check: As customers browse products on Shopify, HotWax Commerce checks real-time inventory availability at nearby stores and displays eligible pick-up locations on the Product Detail Page (PDP).

(B) Order Capture and Download: Customers select their preferred store and place an order. HotWax Commerce downloads orders from Shopify, approves them and syncs them to the chosen store for fulfillment.

(C) Store Notification and Order Preparation: HotWax’s BOPIS push notifications alert store associates when new orders are received. This helps achieve fast fulfillment for pick-up orders. Store associates prepare orders for customer pickup and mark orders as Ready-for-Pickup in the BOPIS App once packed.

(D) Customer Communication: Once the order is ready, HotWax triggers an email to the customer through Klaviyo. This provides customers details about pick-up times and instructions.

(E) Pick-Up and Completion: Customers collect their orders, and orders are marked as Completed in HotWax. Fulfillment details are synced to Shopify, marking orders as fulfilled. HotWax also syncs the fulfillment data to NetSuite to create and mark Item Fulfillment records as Shipped, generate invoices, and record payments for financial accuracy.

III. Warehouse Fulfillment

Warehouses are the primary fulfillment locations for online orders. Warehouse fulfillment helps process high-volume orders and bulk shipments. Here’s how it works:

Fig 5: Warehouse Fulfillment Workflow

(A) Order Capture and Download: Similar to the SFS workflow, customers place orders on Shopify, and HotWax Commerce downloads them for processing.

(B) Order Validation and Routing: Downloaded orders are in Created status, HotWax Commerce validates them based on the predefined criteria. Approved orders are routed to optimal fulfillment locations. In the event where orders are routed to warehouses, HotWax syncs order details to NetSuite, where warehouse operations take over fulfillment.

(C) Pick, Pack, and Ship: Warehouse staff manage picking, packing, and shipping using NetSuite's fulfillment tools. Once items are ready, shipping labels are generated, and orders are prepared for dispatch.

(D) Order Fulfillment Updates: Once the order is shipped, Item Fulfillment records are marked as Shipped and NetSuite syncs fulfillment updates to HotWax, marking orders as Completed. HotWax then updates Shopify, marking the order as Fulfilled and triggering a shipping confirmation email to the customer.

(E) Delivery Confirmation: Once the carrier confirms that the order has been delivered, HotWax Commerce sends an order-delivered email through Klaviyo, completing the fulfillment cycle.

• Inventory Management: Accurate Stock, Always

Accurate inventory management prevents stockouts and overstocking, both of which can hurt profitability and customer trust.

I. Purchase Orders (POs)

Retailers create POs in NetSuite to replenish inventory at warehouses or stores. New POs are synced to HotWax Commerce and automatically displayed in the Receiving App. Store associates can use the app to scan and receive the incoming shipments. HotWax increases the stock levels based on the quantities received and also updates the inventory levels in Shopify and NetSuite.

Fig 6: Purchase Order Workflow

(A) Inventory Receipt: Once stock arrives at the store, store associates use HotWax’s Receiving App to scan and log items, updating inventory records in HotWax.

(B) Inventory Update: HotWax syncs inventory updates to Shopify, this helps make sure that the latest stock count is accurately reflected in Shopify. Result? No risk of underselling. HotWax also syncs updated inventory levels from new item receipts to NetSuite.

II. Transfer Orders (TOs)

TOs play an important role in balancing inventory across a retailer’s network, making products available where they are needed most. Whether stock needs to be moved between stores, from warehouses to stores, or from stores to warehouses, TOs help retailers optimize stock distribution and maintain ideal inventory levels.

Fig 7: Store to Warehouse Transfer Workflow

(A) TO Creation: When a store experiences low stock levels for a high-demand product, a TO is created in NetSuite to initiate the movement of inventory from a warehouse or another store. Once items are shipped from warehouses, Item Fulfillment records are created in NetSuite.

(B) TO Sync: Once created, HotWax Commerce syncs the Item Fulfillment and automatically creates inbound shipments at the destination store location.

(C) Receiving and Inventory Updates: Store associates use HotWax’s Receiving App to scan and receive the items. HotWax automatically updates inventory levels and syncs the updated inventory to Shopify and NetSuite, reflecting accurate stock counts across all locations.

In case of Store to Store and Store to Warehouse TOs, store associates use HotWax’s Fulfillment App to fulfill the TO items in store. Learn more about TOs workflow.

III. Cycle Counts

Accurate inventory management requires regular audits to verify stock levels, identify discrepancies, and maintain consistency between physical stock and systemic data.

HotWax’s Cycle Count App offers an intuitive interface for both admins and store associates. Admins can create, assign and review counts in the app, while store associates can use the same app to scan and submit the cycle counts results.

Fig 8: Cycle Counting Workflow

(A) Direct Cycle Count: Admins create and assign cycle counts to stores using HotWax’s Cycle Count App.

(B) Scanning and Counting: Store associates use HotWax’s Cycle Count App to scan item barcodes and verify stock quantities against systemic records.

(C) Approval Flow: Admins review the submitted cycle count results, they may accept, reject or ask for recount, if required.

(D) Inventory Updates: Approved counts automatically update inventory in HotWax Commerce. HotWax also syncs adjustments to NetSuite and Shopify, making sure inventory levels are accurately reflected across all systems.

• Returns Management: Making Returns Hassle-Free

Returns, when handled well, can strengthen customer trust. This retail technology stack supports both online and in-store returns.

I. Online Returns with Loop

Customers can initiate online returns for purchases made through various channels, such as eCommerce, in-store purchases, or endless aisle orders delivered to their homes.

Fig 9: Online Returns With Loop Workflow

(A) Online Return Initiation: Customers initiate a return for their order in Shopify and are redirected to Loop’s returns interface, where they can select the items to return, specify the reason, and choose a refund, exchange, or store credit.

(B) Return Record Creation: Once the return request is submitted, Loop creates a return record in Shopify, updating the original order with a Return-in-Progress status.

(C) Returns Data Download: HotWax Commerce’s Integration Platform retrieves return data from Loop using webhook and processes it for further handling.

(D) RMA Creation in NetSuite: The Integration Platform syncs return data to NetSuite, where an RMA is created and linked to the original sales order. This provides the warehouse with visibility on expected returns.

(E) Item Receipt and Restocking: When the returned items are received, NetSuite generates an Item Receipt, and inventory is restocked accordingly. The RMA status is updated to Pending Refund.

(F) Refund Processing: HotWax’s Integration Platform syncs return receipt data to Loop, allowing the return status to change from Open to Closed, triggering the refund process from Shopify.

(G) Customer Refund and Order Closure: Shopify processes the refund to the original payment method, updates return as Completed and syncs the details to Loop. HotWax Commerce syncs refund details to NetSuite, triggering the creation of Credit Memos and Customer Refund records for financial reconciliation.

(H) Download Completed Returns: HotWax Commerce downloads Completed returns from Shopify.

(H) Inventory Restocking in HotWax Commerce: Updated inventory levels from the return restocking is synced to HotWax during its periodic inventory sync from NetSuite.

II. In-Store Returns with Shopify POS

Customers can return their online orders or in-store purchases to their preferred stores. Using Shopify POS, store associates can process returns quickly without switching systems. The returned items are immediately added back to inventory, providing real-time updates.

Fig 10: In-store Returns With Shopify POS Workflow

(A) In-Store Return Initiation: Customers visit a store and provide their order details to a store associate, who looks up the order in Shopify POS and selects the items for return.

(B) Refund Processing: Once items are selected and a return reason is provided, the associate processes the refund to the original payment method or offers store credit.

(C) Returns Data Sync: HotWax Commerce downloads completed returns from Shopify, marking payments as Refunded and restocking the inventory.

(D) Return Data Transformation: HotWax’s Integration Platform processes the return data and syncs it to NetSuite for financial tracking and inventory updates.

(E) Refund Processing in NetSuite: Depending on the return type, different refund actions are triggered:

1. For returning in-store purchases in store, a cash refund is linked to the original cash sale, and inventory is restocked at the store.

2. For returning online orders in store, the same process followed for online returns is applied, including: Creation of an RMA linked to the original sales order, generation of an Item Receipt to restock inventory at the receiving store location and creation of Credit Memo and Customer Refund records to finalize the transaction.

3. Financial traceability links every fulfillment action to corresponding financial records, helping retailers track revenue, manage cash flow, and simplify audits.

Why Is This Tech Stack the Future of Omnichannel Retail?

The omnichannel retail technology stack outlined here is more than just a collection of systems, it’s a strategic framework for modern retail success.

Whether a retailer has a dedicated CTO or relies on a VP of IT, this tech stack serves as a valuable guide. A CTO aligns a company’s vision with its technology, but even without one, retailers can achieve omnichannel success by adopting this blueprint. By leveraging pre-built integrations, complex order and inventory workflows can be simplified, operational inefficiencies reduced, and a consistent experience maintained across channels.

HotWax Commerce’s consulting team can help identify and fill strategic gaps, aligning this retail technology stack with a retailer’s operational goals. This framework is designed to streamline processes and set the stage for sustainable growth in an omnichannel environment.

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Take the Next Step

Want to learn how leading brands are leveraging this tech stack to achieve omnichannel excellence? Download our ‘Omnichannel Retail Stack of the Decade’ whitepaper and discover practical insights to future-proof your business.