Introduction: Navigating the Competitive Landscape of Multichannel Order Management
The Multichannel Order Management Market is undergoing a change of competition unprecedented in its history. The leading players, including IT system integrators, OEMs and pioneering AI companies, are battling for leadership using cutting-edge technology, such as AI-based analytics, automation and IoT integration. These differentiators are not only enhancing the operational efficiency of the company, but also enhancing the customer experience. They are enabling the vendors to capture a larger share of the market. As regulations are changing and green issues are becoming more important, companies are increasingly adopting greener infrastructure solutions to meet the compliance and demand of consumers. In the short term, the omni-channel and supply chain trends are more prominent in Asia-Pacific and North America. However, in the long run, in 2024–2025, it will be necessary for the companies to respond to these changes in order to maintain their competitive advantage.
Competitive Positioning
Full-Suite Integrators
These vendors offer comprehensive solutions that integrate multiple functionalities for multichannel order management.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Salesforce |
Robust CRM integration capabilities |
Customer relationship management and order management |
Global |
| SAP |
Enterprise-grade scalability and integration |
Enterprise resource planning and order management |
Global |
| Oracle |
Comprehensive cloud solutions |
Cloud applications and order management |
Global |
| Zoho |
Affordable and customizable solutions |
Business management and order management |
Global |
Specialized Technology Vendors
These vendors focus on niche solutions tailored for specific aspects of multichannel order management.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| ChannelAdvisor |
Marketplace optimization expertise |
E-commerce and marketplace management |
North America, Europe |
| SPS Commerce |
Strong supply chain collaboration tools |
Supply chain management and order fulfillment |
North America |
| Skubana |
All-in-one operations platform |
E-commerce operations and order management |
North America |
| Brightpearl |
Retail-focused operational efficiency |
Retail management and order processing |
North America, Europe |
E-commerce Platforms
These vendors provide platforms that facilitate online sales and integrate order management functionalities.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Magento |
Highly customizable e-commerce solutions |
E-commerce platform and order management |
Global |
| Shopify |
User-friendly interface for small businesses |
E-commerce platform and order management |
Global |
| Linnworks |
Multi-channel selling capabilities |
E-commerce and order management |
Global |
| Orderhive |
Affordable inventory management solutions |
Inventory and order management |
Global |
Infrastructure & Equipment Providers
These vendors supply the underlying technology and infrastructure necessary for effective order management.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| IBM |
Advanced analytics and AI capabilities |
Cloud and AI solutions for order management |
Global |
| Cimpress |
Mass customization and print solutions |
Print and order management solutions |
Global |
| Saas Optics |
Subscription management expertise |
Subscription and revenue management |
North America |
Emerging Players & Regional Champions
- ChannelAdvisor, United States: Multi-channel e-commerce platform integrating inventory management, order processing, and analytics. It recently teamed up with several mid-sized retailers to enhance their e-commerce capabilities. Its inventory and analytics features rival those of more established platforms like Shopify.
- The Skubana, Inc. (USA) is a company specializing in order management and fulfillment for e-commerce companies, with a focus on automation and integration with various sales channels. The company has recently implemented solutions for a growing number of direct-to-consumer brands and is positioning itself as a challenger to larger companies such as Oracle NetSuite, with its focus on smaller companies.
- Brightpearl (UK): Provides a retail management platform including order management, inventory management, and financial management. Brightpearl has recently landed several large European retailers as customers, complementing the established players with a more agile solution aimed at smaller and medium-sized companies.
- In the UK, Linnworks focuses on automating the order management process for e-commerce businesses, integrating with multiple sales channels. It has been expanding its presence in Europe, challenging the market leaders with its competitively priced solution and a simple, easy-to-use platform.
- Orderhive (India) is a cloud-based order and inventory management solution for small and medium-sized businesses. In recent years, it has been gaining traction in the Asian market, complementing the established players with cost-effective, localized solutions.
Regional Trends: North America and Europe will be the first to adopt multi-channel order management systems in 2023, prompted by the growing demand for a seamless e-commerce experience. The focus of companies will be on technology specialization, especially automation and integration capabilities. The APAC region will see the most growth, as new vendors cater to local needs and offer competitive prices that challenge established vendors.
Collaborations & M&A Movements
- Shopify and ShipStation entered into a partnership to streamline shipping processes for e-commerce businesses, enhancing their competitive positioning in the multichannel order management space.
- Oracle acquired NetSuite in a strategic move to integrate advanced order management capabilities into its cloud offerings, significantly increasing its market share in the multichannel sector.
- Zebra Technologies and 3M collaborated to develop innovative labeling solutions aimed at improving inventory accuracy and order fulfillment efficiency for retailers.
Competitive Summary Table
| Capability | Leading Players | Remarks |
|---|
| Inventory Management |
Oracle, SAP, IBM |
Oracle's NetSuite offers real-time inventory tracking, enabling businesses to optimize stock levels. SAP's S/4HANA provides advanced analytics for inventory forecasting, while IBM's Sterling OMS integrates AI for smarter inventory decisions. |
| Order Fulfillment |
Shopify, Salesforce, Manhattan Associates |
The Shopify platform allows you to integrate your shop with a wide variety of sales channels for the efficient processing of orders. The Salesforce Order Management System enhances the customer experience through a range of bespoke delivery options. The robust capabilities of Manhattan are ideally suited to complex supply chains. |
| Customer Experience Management |
Zendesk, Adobe, Salesforce |
This is a complete customer service solution, which can be integrated with order management systems to enhance service. The Experience Cloud provides tools for individualized marketing, which help to increase customer engagement. The Salesforce CRM system allows for a tailored customer relationship throughout the order-to-cash cycle. |
| Returns Management |
Returnly, Happy Returns, Loop Returns |
Returnly makes it easy to return products and by offering instant credit, makes it easy to build customer satisfaction. Happy Returns offers a network of return locations, making it easy for consumers to return products. Returns in the loop optimizes the return experience in order to increase repeat purchases. |
| Integration with E-commerce Platforms |
BigCommerce, Magento, WooCommerce |
The e-commerce platform BigCommerce has built-in integrations with the main marketplaces, which makes it easy to manage orders. The flexibility of Magento allows for custom integrations to meet different business needs. The extensive plugins for WooCommerce allow easy integration with order management systems. |
Conclusion: Navigating the Multichannel Order Management Landscape
The Multi-Channel Order Management Market in 2023 is characterized by a high degree of competition and significant fragmentation. The players, both established and newcomers, are competing for market share. The localization of solutions is expected to increase as vendors adapt to different customer behavior and preferences. The established players are taking advantage of their existing IT systems and integrating new capabilities such as artificial intelligence and automation to optimize their operations. While newcomers are focusing on flexibility and sustainability to attract an increasingly eco-conscious customer base. As the market develops, the ability to use artificial intelligence for predictive analysis, to automate processes and to offer sustainable solutions will determine the leaders. Strategically aligning the vendor’s offerings to these capabilities will be essential to ensure that they remain competitive in a fast-changing landscape.
