For any business leader, one of the primary goals is to maximize shareholder value by increasing profitability. With eCommerce now accounting for 16.1% of total retail sales in 2024, aligning online and in-store sales has never been more critical for retailers looking to drive sustainable growth.
Retailers are increasingly embracing omnichannel strategies, offering services like Ship From Store and Buy Online Pick Up In Store (BOPIS). However, many brands are still hesitant to invest in the technology needed to scale these programs effectively—or are unsure where to start.
This blog explores why is a Distributed Order Management System crucial for omnichannel retailers, by demonstrating its value in driving revenue, improving margins, and optimizing assets to increase profitability.
Driving Revenue Growth with Omnichannel Order Management
One of the clearest ways to justify investing in a Distributed Order Management System is its direct impact on top-line revenue. An enterprise Distributed Order Management System drives sales by increasing eCommerce conversions and boosting in-store purchases.
1. Increasing eCommerce Sales
While eCommerce contributes significantly to overall retail revenue, many brands still prioritize in-store sales and underinvest in digital growth. A key advantage of a Distributed Order Management System is its ability to unify inventory across all locations, ensuring maximum product availability for online shoppers.
Traditionally, retailers have kept eCommerce inventory separate from store stock, limiting product availability online. By implementing a Distributed Order Management System to create a single, centralized view of inventory, brands can make all stock accessible for online sales which can lead to higher conversion rates and increased revenue.
2. Boosting In-Store Sales
Distributed Order Management System doesn’t just improve online sales—it also drives in-store growth. Offering flexible fulfillment options like BOPIS and Ship From Store increases foot traffic, enhances the shopping experience, and encourages additional purchases.
Fast fulfillment is now a key competitive advantage. A recent study found that 61% of retailers consider faster delivery options essential to staying ahead in the market. For retailers that can’t offer free next-day shipping, BOPIS provides an attractive alternative, allowing customers to pick up orders quickly while also increasing store visits. When shoppers visit stores, they are more likely to make impulse purchases, strengthening overall sales.
Without an intelligent OMS to orchestrate inventory across channels, retailers struggle to leverage their stores effectively for online order fulfillment.
Improving Profit Margins Through Smarter Order Management
Revenue growth alone isn’t enough. Retailers must also protect their margins. A well-implemented Distributed Order Management System supports this by reducing markdowns and lowering fulfillment costs.
1. Reducing Markdowns and Maximizing Profitability
A Distributed Order Management System provides real-time inventory visibility across all sales channels, enabling retailers to optimize markdown strategies and minimize unnecessary discounts. By leveraging store stock for online orders, retailers can move products efficiently and maintain healthy margins.
For global brands, this visibility is even more critical. A centralized view of stock across multiple locations allows retailers to optimize inventory allocation, prevent overstocking, and make informed supply chain decisions that improve profitability.
2. Lowering Fulfillment Costs
As transportation costs continue to rise, retailers face the challenge of meeting customer expectations for fast, affordable shipping. A Distributed Order Management System helps cut costs by intelligently routing orders to the nearest store or fulfillment center, reducing shipping expenses and improving efficiency.
With the ability to optimize fulfillment based on real-time data, retailers can reduce their reliance on expensive distribution centers and instead leverage store networks to fulfill orders faster and at a lower cost.
Maximizing Return on Assets
Beyond increasing sales and profitability, investing in Distributed Order Management System helps retailers optimize their existing assets, from inventory to store locations, in order to maximize overall business efficiency.
1. Smarter Inventory Utilization
With more sales channels than ever, retailers need a way to allocate inventory effectively. A unified Distributed Order Management System provides a single view of stock across all locations, enabling retailers to balance supply and demand more effectively.
Returns management is another area where the Distributed Order Management System plays a crucial role. In 2024, the overall return rate for U.S. retail was 13.21%. By allowing in-store returns of online purchases and seamlessly reintegrating returned items into available stock, a Distributed Order Management System prevents inventory bottlenecks and improves cash flow.
2. Optimizing Store Operations
A Distributed Order Management System also enables retailers to get more value out of their brick-and-mortar locations. By turning stores into fulfillment hubs for Ship From Store and BOPIS, retailers can increase store utilization while keeping operations flexible.
Some retailers are even transforming select locations into "dark stores" dedicated to online order fulfillment, maximizing efficiency while maintaining a strong omnichannel presence. A cloud-based Distributed Order Management System provides the agility needed to adapt to these retail strategies.
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From driving revenue to improving margins and optimizing assets, Distributed Order Management System is a crucial investment for retailers looking to scale profitably. By unifying inventory, streamlining fulfillment, and enhancing the customer experience, an enterprise Distributed Order Management System helps retailers maximize shareholder value and stay ahead in this competitive market.
At HotWax Commerce, we help retailers optimize their inventory and fulfillment strategies through omnichannel solutions like BOPIS, Ship From Store, and Pre-Orders. If you’re looking to enhance your omnichannel capabilities, get in touch to see how we can help.
