Retailers striving for omnichannel success can’t afford to rely on fragmented systems and outdated processes. Customers expect a smooth shopping experience, whether they buy online and pick up in-store, return items at a store, or receive same-day shipping from a nearby location. Behind the scenes, making all of this work requires carefully chosen retail systems that work together seamlessly. Without the right setup, omnichannel retailers face delays, fulfillment errors, inaccurate inventory, and frustrated customers.
Choosing the right retail systems is only half the battle. The real challenge lies in making them work together, syncing data across systems to enable real-time inventory updates, intelligent order routing, and efficient fulfillment and customer communication. Poor integration can lead to lost sales, manual workarounds, and increased operational costs, making omnichannel success nearly impossible.
This blog breaks down the core retail systems that act as the pillars of omnichannel retail. From inventory management to order fulfillment, each one plays an important role in creating a connected and scalable retail ecosystem.
Core Retail Systems for Omnichannel Retailers: A Technology Blueprint
Well-integrated retail systems power omnichannel success by synchronizing inventory, orders, and customer interactions across multiple channels.
Consider an order fulfillment scenario where multiple retail systems work together.
The eCommerce platform captures the order details and processes payment authorization.
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The Order Management System (OMS) downloads orders, verifies inventory availability and reserves the items.
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The OMS assigns the fulfillment location, triggering the warehouse or store fulfillment system.
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The OMS coordinates with the shipping solution to generate labels, update tracking details, and keep customers in the loop with order updates.
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The ERP system updates financial records, reflecting revenue, taxes, and cost allocations.
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Once the order is shipped, OMS also updates statuses across all integrated systems, and sends customers order update emails through marketing platforms.
Beyond order fulfillment, other retail functions like in-store inventory management, returns processing, and more also rely on synchronized data across various platforms. The following sections detail the key retail systems that enable omnichannel retailing.
1. eCommerce
Shopify is a popular eCommerce platform among omnichannel retailers, valued for its simplicity, scalability, and growth-oriented capabilities. While Shopify serves small and midsize retailers effectively, Shopify Plus caters to the demands of larger and enterprise-level retailers. Its ability to unify online and in-store operations makes it a top choice for modern retail.
Pros:
1. Provides robust eCommerce capabilities with a user-friendly interface.
2. Supports multiple integrations, including marketplaces like Amazon and eBay, marketing platforms like Klaviyo, and shipping providers like ShipStation, allowing retailers to connect and manage various aspects of their business from one platform.
3. Built-in payment processing simplifies transactions.
Cons:
1. Order and inventory management in Shopify can be tricky for omnichannel retailers with complex operations, so many rely on an Order Management System (OMS).
2. Lacks built-in support for product bundling (kits) and subscriptions, requiring third-party apps.
3. Advanced reporting and analytics are not included, requiring third-party tools for detailed insights.
2. Point of Sale (POS)
Shopify retailers use Shopify POS to sell in stores while keeping online and offline sales connected. It eliminates the need for complex and expensive integrations with Shopify eCommerce, offering a reliable and pre-integrated solution.
Pros:
1. Shopify POS automatically updates product, price, and customer details on Shopify eCommerce.
2. Updates inventory in real time to avoid overselling.
3. Store staff can check past orders, handle returns, and process exchanges easily.
4. Supports various payment options, including credit/debit cards (Visa, Mastercard, American Express, Discover), Apple Pay, Google Pay, gift cards, and third-party providers like PayPal, Afterpay, and Klarna. Works smoothly with Shopify Payments for secure and fast transactions.
5. Works with barcode scanners, receipt printers, and mobile checkout for faster service.
Cons:
1. Only Shopify POS Pro users have the ability to fulfill Ship From Store orders directly from Shopify POS, others require access to Shopify Admin for fulfillment.
2. Lacks advanced in-store inventory management features for inventory receiving, internal inventory transfers and cycle counts.
3. Customer Care
Gorgias and Kustomer retail systems help Shopify retailers manage customer support by bringing emails, live chat, and social media messages into one dashboard.
Pros:
1. Both Gorgias and Kustomer connect to Shopify, so support teams can see order details and handle customer requests without switching between apps.
2. Gorgias is known for its user-friendly interface, making it easy for support teams to manage customer interactions.
3. Gorgias is great for automation, handling tasks like tagging tickets and sending quick replies to save time.
4. Kustomer gives a full view of each customer’s order history and past conversations, making it easier to provide personalized support.
5. Kustomer offers advanced features like custom workflows, AI-driven chatbots, and a 360-degree customer timeline.
Cons:
1. Both Gorgias and Kustomer retail systems can be costly, especially for retailers with a high volume of support tickets. Gorgias charges based on the number of tickets per month, with additional fees for exceeding the limit, while Kustomer follows a per-agent pricing model with usage limits that may require upgrading to higher-tier plans.
4. Loyalty and Reviews
Yotpo helps Shopify retailers collect and display customer reviews, manage loyalty programs, and run SMS marketing campaigns—all in one platform.
Pros:
1. Yotpo integrates directly with Shopify, making it easy to gather and showcase reviews, ratings, and customer photos on product pages.
2. The loyalty and rewards program encourages repeat purchases by offering points, discounts, and special perks.
3. SMS marketing lets brands send targeted messages to customers, improving engagement and conversions.
4. Customizable widgets allow retailers to display reviews and ratings in a way that matches their store’s design.
Cons:
1. The free plan has limited features, and advanced tools like AI-powered review generation and SMS marketing require paid plans.
2. Pricing can be high, especially for retailers needing multiple features like loyalty, reviews, and SMS.
5. Payment Auditing
Shopify retailers use Blue Onion to reconcile financial data by connecting order systems, payment processors, and banks in one place.
Pros:
1. Blue Onion automates financial record-keeping, reducing manual work and helping retailers close their accounts faster.
2. Every transaction is checked for accuracy before reconciling payments, refunds, and orders, minimizing errors.
3. Many retailers have reported significant time savings, with some reducing their month-end closing process from five days to just two.
Cons:
1. Setting up Blue Onion takes time as retailers need to integrate it with their financial systems.
2. Smaller retailers with simpler financial operations may not need all its features.
3. Even though it automates many tasks, regular monitoring is still needed to maintain accuracy.
6. Enterprise Resource Planning (ERP), Warehouse Management System (WMS) and Accounting
Most Shopify retailers use NetSuite as their ERP solution, paired with its warehouse management module, managing Purchase Orders (POs), Transfer Orders (TOs), warehouse fulfillment of online orders.
NetSuite cloud accounting software also simplifies the process of recording transactions, managing payables and receivables, and closing the books.
Pros:
1. NetSuite helps retailers plan resources and distribute inventory across multiple locations, manage purchase orders and transfer orders.
2. Offers a warehouse fulfillment suite to fulfill orders in bulk.
3. General Ledger (GL) posting automatically records financial transactions such as sales, refunds, inventory adjustments, and tax calculations.
Cons:
1. NetSuite is designed for warehouse operations, making in-store inventory management challenging for store associates who need more user-friendly tools.
2. The setup process can be complex and time-consuming, often requiring expert configuration and technical expertise.
3. The pricing structure may not be suitable for small retailers with limited budgets.
7. Return Management System (RMS)
Shopify retailers turn to Loop Returns for managing online returns and exchanges. Loop integrates directly with Shopify, providing the returns portal for customers.
Most Shopify retailers use the Shopify POS App to accept in-store returns and exchanges.
Pros:
1. Loop Returns automates return approvals, label generation, and refund processing, reducing manual effort for retailers handling high return volumes.
2. It allows customers to choose between refunds, exchanges, or store credit, encouraging retention.
3. Shopify POS lets retailers check all of their store's orders in a single view, whether they were placed online or in person, review its details, and perform a refund or exchange.
4. Both solutions ensure accurate stock updates after a return is processed.
Cons:
1. Loop Returns require additional integrations to sync returns data to ERP and financial systems.
2. Shopify POS provides retailers with predefined return reasons, and if retailers want custom reasons, they have to add it under the 'Other' predefined option.
8. Marketing Platforms
Shopify retailers use marketing platforms like Klaviyo, Iterable to run targeted marketing campaigns, automate customer communication, and drive sales.
Pros:
1. Klaviyo integrates well with Shopify, making it easy to use customer data for automated email and SMS campaigns. Iterable, on the other hand, supports multi-channel marketing, including push notifications and direct mail, giving omnichannel retailers more ways to reach customers.
2. Both retail systems offer advanced segmentation, allowing retailers to send personalized offers, abandoned cart reminders, and post-purchase messages based on customer behavior. This helps increase conversion rates and repeat purchases.
Cons:
1. However, Klaviyo’s pricing is based on the number of contacts, which can become expensive as a retailer's customer base grows. Iterable also has a steep learning curve, requiring time to set up workflows and optimize campaigns effectively.
9. Shipping
Shopify retailers use a combination of shipping providers such UPS and FedEx for regular deliveries and services like Shipt for same-day or next-day delivery. Aggregators like ShipHawk, EasyPost, and ShipStation simplify managing multiple shipping carriers in a single platform.
Pros:
1. Shipping aggregators compare rates from multiple carriers, helping retailers find cost-effective and timely delivery options.
2. Direct shipping providers like UPS, FedEx, and USPS integrate with fulfillment systems for real-time label generation and tracking updates.
Cons:
1. Aggregators may charge extra fees or mark up rates compared to direct carrier accounts.
2. Direct shipping providers require retailers to negotiate rates individually, which can be time-consuming.
10. Order Management System (OMS)
HotWax Commerce has a ready integration with Shopify, Shopify POS, NetSuite, Loop Returns, and other key platforms.
Pros:
1. Provides ATP inventory calculation, configurable order routing, Ship From Store, BOPIS and in-store inventory management, reporting module and more.
2. HotWax’s integrated iPaaS solution performs data synchronization between Shopify, NetSuite, and Loop Returns.
3. Shopify retailers can go live in 60 days with HotWax’s pre-built integrations.
Cons:
1. Requires 3 months to build integrations for other eCommerce platforms like Bigcommerce and Magento.
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Build a Smarter Omnichannel Retail Strategy
With the right retail systems stack, omnichannel retailers can move beyond trial and error to build a strategy that drives efficiency and growth. This blog covered the top retail systems that enable omnichannel success, from order fulfillment to customer engagement.
Download our whitepaper ‘Omnichannel Retail Stack of the Decade’ to understand how these retail systems work together to implement omnichannel strategies that maximizes profitability and customer satisfaction.
The whitepaper provides detailed workflows, including Ship From Store, BOPIS, warehouse fulfillment, in-store inventory management and online and in-returns processing.
