Top 6 OMS Features for Peak Season Success

Managing peak season in e-commerce is all about efficiency, accuracy, and scalability. With up to 50% of annual revenue coming from Q4, using an Order Management System (OMS) is critical. The right OMS features can help you handle surges in order volume, prevent stockouts, and streamline fulfillment. Here’s a quick overview of the six key OMS features that drive success during busy shopping periods:

• Real-Time Inventory Tracking: Prevent overselling and stockouts with instant updates and automated inventory management.
• Multi-Channel Order Integration: Consolidate orders across platforms like Shopify, Amazon, and physical stores for smoother operations.
• Smart Order Routing: Use real-time data to find the most efficient fulfillment paths, cutting costs and delays.
• Automated Fulfillment and Shipping Coordination: Speed up processes with automated workflows, reducing errors and boosting capacity.
• Inventory Allocation and Demand Forecasting: Align stock with demand using AI-powered forecasting and safety stock thresholds.
• Returns Processing and Order Visibility: Simplify returns with self-service portals and real-time tracking to keep inventory accurate.

These features not only improve operational efficiency but also enhance the customer experience. By pairing an OMS with a reliable 3PL provider, businesses can scale effectively, reduce costs, and meet customer expectations during peak season.

1. Real-Time Inventory Tracking

Ability to Prevent Stockouts and Overselling

During high-demand events like Black Friday, transaction volumes can skyrocket - sometimes by 10 to 15 times - making the risk of overselling a real concern if inventory updates lag. To tackle this, Order Management Systems (OMS) leverage Available-to-Promise (ATP) logic, which reserves inventory the moment a customer adds an item to their cart rather than waiting until checkout. Take, for example, a European electronics retailer during Black Friday in November 2023. By implementing this strategy, they reduced cancellation rates from 8.2% to just 1.1%, increased processing capacity by 340%, and fulfilled 35% of online orders directly from stores. These results highlight how immediate inventory reservation not only prevents stockouts but also streamlines order management for smoother operations.

Efficiency in Handling High Order Volumes

Real-time inventory tracking doesn’t just protect stock levels - it also speeds up order processing, which is critical during peak shopping seasons. By automating inventory updates, OMS platforms eliminate the need for manual counts, even when order volumes surge to more than 2.5 times the usual levels. Automated systems evaluate orders using preset rules, enabling faster fulfillment and reducing labor costs. For instance, during the 2024 holiday peak season, Fluent Order Management customers maintained 100% uptime while managing an 85% year-over-year increase in orders. They processed billions of inventory updates and handled tens of billions of API calls without any performance issues. This level of reliability matters when inventory distortion costs retailers a massive $1.7 trillion annually.

Scalability for Peak Season Demands

Scalability is the backbone of handling extreme demand surges without compromising performance. Cloud-based OMS platforms are designed to expand automatically during high-traffic periods, ensuring systems don’t crash. For example, a UK-based fashion retailer with 180 stores used real-time inventory visibility during the final week before Christmas 2023 to meet last-minute demand. They fulfilled 42% of online orders directly from stores while maintaining an on-time delivery rate above 96%. Features like safety buffers - listing 90 units while holding 100 in stock - and dynamic fulfillment routing ensure these systems can handle rapid sales spikes. This adaptability not only meets customer expectations but also turns peak season challenges into opportunities for success.

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2. Multi-Channel Order Integration

Efficiency in Handling High Order Volumes

Managing orders across platforms like Shopify, Amazon, eBay, and physical stores can quickly become chaotic, especially since each platform uses its own order format. Multi-channel integration simplifies this by standardizing data from all platforms into a single rules engine. You only need to define your rules once, and they apply across all channels seamlessly.

A centralized dashboard gives you a complete view of every order stage - authorization, allocation, pick, pack, and dispatch - all in one place. This means your support team can address customer questions without jumping between systems. Some advanced systems even offer zero-touch processing, automating the entire order flow and only requiring human input for exceptions. This reduces labor costs and minimizes potential errors, which is a game changer when you're managing a flood of orders. With this setup, you also gain better control over stock across all your sales channels.

Ability to Prevent Stockouts and Overselling

Handling high order volumes comes with its own set of risks, like overselling or showing inventory that doesn’t actually exist. This is where real-time inventory reservation steps in. The moment a customer adds an item to their cart, the system reserves it from the total Available-to-Promise (ATP) inventory across all channels simultaneously.

Take Psycho Bunny, for example. After implementing an omnichannel fulfillment network with Deposco, they increased their available inventory by 20% and shaved three days off their order processing time. Similarly, Feature, a sneaker boutique in Las Vegas, improved order accuracy by 125% and avoided overselling and chargebacks in May 2024 using advanced order management. These systems consolidate inventory from warehouses, distribution centers, and retail stores into a single pool, ensuring accurate stock counts across all platforms. Beyond just inventory accuracy, this integration also helps streamline your fulfillment process.

Optimization of Fulfillment Processes

Multi-channel integration isn’t just about tracking orders - it’s about making fulfillment smarter. For example, dynamic load balancing ensures that high-demand items are shipped from warehouses, while promotional items might be routed from retail stores to avoid overloading distribution centers. The system automatically picks the best fulfillment location based on factors like proximity to the customer’s delivery address, carrier cutoff times, and capacity.

Allbirds is a great example of how this optimization works. Before integrating their channels, they wasted time and money packing up slow-moving or out-of-season items and shipping them back to their warehouse. As Micah Nelson, their Director of Product Management, put it:

"At the end of each season, we would regularly pack up any slow-moving or out-of-season merchandise and ship it back to our warehouse, which was an inefficient use of time and money".

After unifying their system, Allbirds introduced ship-from-store capabilities, letting online shoppers view real-time local store inventory and eliminating unnecessary transfers.

Scalability for Peak Season Demands

Scalability is critical, especially during peak seasons when 30% to 40% of annual revenue can come in just a few weeks. In 2024, retailers with peak-ready order management systems handled billions of inventory updates and tens of billions of API calls without any performance hiccups. One retailer even managed an 85% year-over-year spike in order volume during peak season while maintaining 100% system uptime.

This approach transforms retail locations into micro-fulfillment centers, helping absorb demand that might otherwise overwhelm warehouses. It ensures your system can handle even extreme order surges without crashing or disappointing customers.

3. Smart Order Routing and Processing

Efficiency in Handling High Order Volumes

Smart order routing uses real-time data to determine the best way to fulfill orders. Instead of sticking to rigid rules - like always shipping from one specific warehouse - this method evaluates multiple factors: inventory levels, customer proximity, shipping costs, labor availability, and service agreements, all at the same time. The result? Each order follows the most efficient path through your fulfillment network.

Automation plays a big role here. By automating early stages of the process, you can avoid manual interventions and reduce errors, especially during busy periods. Tools like daily capacity limits and auto-reject timers help reroute orders quickly if delays arise, ensuring no single location becomes overwhelmed. This data-driven approach not only keeps operations running smoothly but also cuts costs.

Optimization of Fulfillment Processes

Smart routing doesn’t just streamline operations - it also saves money and boosts flexibility. Retailers using unified inventory systems and advanced routing have reported up to 15% better inventory utilization. Shipping costs can drop by 12%–18%, while prioritizing single-facility fulfillment for multi-item orders can slash shipping expenses by 30%–40%.

Another perk? Smart routing can prioritize locations with older or out-of-season inventory. This helps clear out stock that might otherwise sit unsold, a big win in an industry where dead inventory costs U.S. retailers around $50 billion annually.

Scalability for Peak Season Demands

Smart routing also shines during peak periods, offering scalability that adapts to disruptions. Unlike basic systems, it dynamically adjusts order paths if certain fulfillment centers face delays or failures. As Emily Pfeiffer, a Forrester analyst, explains:

"The future of OMS is modular - platforms that evolve with your business, not slow it down".

Real-world examples highlight these benefits. One apparel company improved its omnichannel fulfillment by automating order routing and enhancing inventory visibility. This cut three days off its average processing time and increased inventory availability by 20%. Another retailer, managing high-demand product launches, saw order accuracy jump by 125%, while overselling and chargebacks significantly dropped.

These advanced capabilities make it easier to handle disruptions, like warehouse closures due to weather or labor shortages, by automatically rerouting orders to keep things moving.

[Peak Feature] Why Your 2025 Peak Will be Better with Strategic Integrations

4. Automated Fulfillment and Shipping Coordination

Automated fulfillment and shipping coordination take the efficiency of smart routing to the next level, ensuring smoother operations during peak seasons.

Efficiency in Handling High Order Volumes

During high-demand periods, automated fulfillment systems eliminate common bottlenecks. These systems evaluate orders instantly using predefined business rules - checking payment statuses, allocating inventory, and creating shipping labels. This speeds up the entire process from the warehouse to the customer's doorstep, allowing teams to focus on resolving exceptions instead of routine tasks.

Automation also simplifies managing large order volumes by grouping orders based on factors like priority, location, or shipping deadlines. For instance, orders headed to the West Coast with two-day shipping can be batched together for more efficient picking and packing. One Logiwa client saw impressive results after implementing smart workflow automation and assistive picking tools: single-item order picking became 31% faster, shipments increased by 60%, and daily shipping capacity scaled by 400%.

Optimization of Fulfillment Processes

Automation doesn’t just speed things up; it makes the entire fulfillment process smarter. Shipping tools automatically select the best carriers and generate labels based on live rates, package dimensions, and customer locations - removing the need for manual rate comparisons. For split orders, these systems coordinate shipments from multiple locations while providing customers with a unified tracking experience.

"Automation should run as early as possible... Early automation prevents rework and reduces the chance that someone overrides a decision before the system applies the rule".

Todd Greenbaum from ShipStation highlights the importance of early automation to avoid costly errors and rework. One retailer using an order management system (OMS) during peak seasons reduced cancellation rates dramatically - from 8.2% to just 1.1%.

Scalability for Peak Season Demands

Automation not only enhances efficiency but also ensures businesses can scale effectively during peak seasons. For example, OneStock reported a 340% boost in order processing capacity during Black Friday 2023. These systems use distributed load management to handle volume surges of 10–15 times the usual levels without slowing down.

The benefits extend to cost savings as well. Logiwa users report cutting labor costs by an average of 40% during peak periods, thanks to automation's ability to process more orders with fewer resources. Despite these advantages, only 42% of businesses feel confident in their systems’ ability to manage peak season demands. This highlights the need for more widespread adoption of reliable automation tools.

5. Inventory Allocation and Demand Forecasting

Advanced inventory allocation and demand forecasting take the benefits of real-time tracking and smart routing to the next level by ensuring stock aligns with anticipated demand. These tools allow businesses to place products where they're needed most, well before demand surges, helping to avoid costly issues like stockouts and overselling.

Ability to Prevent Stockouts and Overselling

Real-time inventory reservation plays a crucial role in avoiding overselling, especially during high-demand periods. Order Management Systems (OMS) reserve items from available-to-promise (ATP) inventory as soon as a customer adds them to their cart. This seamless integration across channels ensures that overselling is prevented, no matter how many platforms you’re selling on.

For example, Feature, a Las Vegas-based sneaker and clothing boutique, saw a 125% improvement in order accuracy by using unified allocation strategies. This approach reduced overselling and chargebacks, while also turning "out of stock" items at one location into sellable inventory sourced from another, thanks to a centralized view of stock across stores, warehouses, and distribution centers.

Another safeguard is safety stock thresholds, which automatically stop order allocation when inventory levels drop below a preset limit. This is especially critical when you consider that global retailers lose nearly $1 trillion annually due to stockouts and overstocking. These strategies not only address immediate challenges but also lay the groundwork for proactive demand planning.

Scalability for Peak Season Demands

AI-driven forecasting complements automated order management by scaling inventory to match fluctuating demand. These systems analyze historical sales data, seasonal patterns, and promotional schedules to predict not just peak days but even the busiest hours. This level of precision allows businesses to prepare labor, warehouse space, and shipping resources ahead of time.

Take the case of a Saudi Arabian retailer during Ramadan 2024. Facing a 30% spike in demand, they relied on AI-powered forecasting and real-time inventory synchronization. The result? A 25% sales increase, 40% faster order fulfillment, and zero stockouts. Automatic reordering of fast-moving items ensured they stayed ahead of unexpected surges.

"Peak season success doesn't happen by chance. It comes from planning, testing, and aligning your people, processes, and technology." - Carlee Berrington, Fluent Commerce

Inventory segmentation further optimizes stock allocation by reserving portions for high-demand channels like Amazon or TikTok. This ensures availability where it matters most while protecting inventory for other platforms. For instance, Psycho Bunny saw a 20% boost in available inventory and cut three days off order processing times after implementing their OMS just two weeks before Black Friday in November 2023.

AI-powered forecasting doesn’t just improve peak performance - it also reduces overall inventory levels by 20%-30%, all while maintaining uptime and reliability, even during billions of API calls.

6. Returns Processing and Order Visibility

The holiday rush doesn’t end in December - January sees a surge in returns, with 18% of holiday merchandise, valued at $158 billion, being sent back. Managing this influx effectively can transform returns into a strategic advantage, especially when e-commerce return rates spike to 30% during peak periods. Let’s dive into how efficient returns processing and real-time order visibility can elevate performance during these critical times.

Efficiency in Handling High Order Volumes

Self-service portals play a huge role in easing the workload on customer service teams. By allowing customers to initiate returns themselves, these portals streamline the process. The OMS automatically generates Return Merchandise Authorization (RMA) numbers and shipping labels, cutting down on manual tasks. In fact, a robust OMS can handle approximately 98% of orders and returns without human involvement, automating email updates and status notifications.

Why does this matter? Because 92% of shoppers are more likely to return if the process is simple, and 68% say the returns experience shapes their overall view of a retailer. Beyond customer satisfaction, the system directs returned items to the appropriate destination - whether it’s repair, restock, or recycling. Just like real-time order routing prevents overselling during peak demand, efficient returns processing ensures returned items are quickly re-entered into inventory.

Preventing Stockouts and Overselling

Accurate returns tracking is essential for keeping inventory in check. Real-time visibility during returns eliminates the issue of "phantom availability." For example, when a customer ships an item back, the OMS tracks it in transit and updates inventory as soon as it passes inspection. This ensures the item is marked as available across all sales channels - whether it’s Amazon, your website, or physical stores - within seconds. Without this synchronization, you risk overselling items that are still sitting in a returns bin.

A UK fashion retailer highlighted the power of this approach during Christmas 2023. They fulfilled 42% of online orders from their 180 stores in the final week of the season. By leveraging their OMS to maintain a unified inventory view, they achieved an on-time delivery rate above 96% and boosted customer satisfaction scores by 18% year-over-year. This seamless coordination, even with items in the returns pipeline, was key to their success.

Streamlining Fulfillment with BORIS

Buy Online, Return In-Store (BORIS) capabilities provide an edge by speeding up the returns process. When customers return items at physical locations, the OMS can immediately restock them locally or send them to warehouses with higher demand. This approach avoids unnecessary delays caused by routing everything to a central hub. In many cases, it reduces turnaround times from days to hours and can even turn a return into an exchange or a new sale.

On the financial side, automated systems simplify refunds, store credits, and restocking fees by integrating directly with financial platforms. Some retailers take advantage of this to offer instant store credits, keeping the transaction within their ecosystem. With automated returns processing, updates happen in milliseconds rather than minutes, making the entire operation more efficient. These features highlight how returns processing ties into the broader strategy of optimizing an OMS for peak season success.

How 3PL Integration Improves OMS Performance

Managing high order volumes during peak seasons requires precision, and integrating a 3PL provider with your Order Management System (OMS) can make all the difference. By connecting these systems, you can speed up order processing by up to 50% and cut operational costs by 15–25% during busy periods. This kind of efficiency isn't just a bonus - it’s essential for keeping up with customer expectations when demand surges. The real magic happens when both systems work together seamlessly, enabling real-time, error-free operations.

One of the biggest advantages is how your OMS syncs directly with a 3PL's Warehouse Management System (WMS). This real-time communication eliminates the need for manual data entry and inventory reconciliation. For example, JIT Transportation uses ERP integrations with platforms like NetSuite and SAP to ensure product catalogs, purchase orders, and fulfillment statuses are always aligned. This creates a single, reliable source of truth for inventory across all sales channels, minimizing errors and streamlining processes.

Another game-changer is intelligent order routing.

"When directly integrated with a WMS, the OMS can intelligently route orders to the warehouse geographically closest to the delivery address, ensuring the fastest delivery at the lowest cost." – Extensiv

The benefits don’t stop there. Integration improves specialized services that are critical during peak seasons. For instance, pick & pack operations become faster and more accurate when the OMS optimizes picking queues and validates orders via mobile scanning. Similarly, kitting & assembly services - like those offered by JIT Transportation - run smoothly as the OMS handles bundle logic and splits line items as needed. These improvements can reduce errors by 30–40% compared to manual processes.

The financial perks are just as compelling. Without integration, 3PLs often spend over 16 hours each month on billing reconciliation. Automated systems eliminate these inefficiencies, ensuring fulfillment data ties directly to revenue recognition. High-performing warehouses that use integrated systems achieve inventory accuracy rates above 95%, which can boost customer satisfaction by as much as 30% during peak sales periods. These operational and financial gains make 3PL integration a must-have for maintaining performance when it matters most.

Conclusion

Managing peak season effectively comes down to having the right tools and strategies in place. The six key OMS features highlighted in this article work together to create a system that can handle high order volumes without breaking a sweat. For example, cloud-based platforms can easily manage traffic surges up to 2.5 times the usual levels, while real-time tracking helps avoid the staggering $1.7 trillion in annual losses caused by inventory distortion.

Brands that utilize these features often see a noticeable drop in "Where is my order?" support calls. That’s crucial when 80% of customers are willing to pay extra for better service, yet 75% would leave a brand after just one bad experience. These improvements don’t just enhance customer satisfaction - they also protect your revenue and reputation.

That said, technology alone isn’t enough. To get the most out of your OMS, you need solid logistical support. A 3PL partner like JIT Transportation can bridge the gap between digital tools and real-world results. With ERP integrations, strategically placed warehouses nationwide, and scalable infrastructure that adapts to demand spikes, you can fully leverage your OMS’s capabilities. This combination leads to faster processing, lower shipping costs, and meets the expectations of 90% of shoppers who value reliable service.

Preparation is key. Start planning 3–6 months before peak season by running end-to-end system tests, diversifying carrier options, and automating reorder points for fast-moving products. The brands that thrive during Q4 are the ones that plan ahead, build resilient systems, and align their OMS features with strong logistical partnerships. With these elements in place, peak season can shift from being a challenge to an opportunity for growth.

FAQs

Which OMS features matter most for peak season?

To thrive during peak season, your Order Management System (OMS) needs to deliver on several fronts. Here are the standout features that can make all the difference:

• Automated order fulfillment: Streamlining the process ensures orders are processed quickly and accurately, keeping delays to a minimum.
• Real-time inventory management: This helps you keep track of stock levels as they change, preventing overselling and disappointing customers.
• Automatic order routing: Orders are directed to the best fulfillment center or store, cutting down on delivery times and costs.
• Scalable systems: The ability to handle surges in order volume and fluctuating demand ensures your operations run smoothly, even during the busiest times.

These features work together to maintain efficiency and meet customer expectations when it matters most.

How does an OMS stop overselling in real time?

An Order Management System (OMS) helps prevent overselling by keeping inventory synced across all your sales channels. It provides up-to-date stock visibility and automatically stops purchases once inventory is depleted. This ensures real-time accuracy, reducing the risk of stockouts, especially during busy or high-demand periods.

What should I do first to prep my OMS for Q4?

The holiday season often brings a surge in order volume and added complexity to fulfillment processes. To stay ahead, start by closely reviewing your Order Management System (OMS) settings. Take the time to evaluate priorities, adjust workflows, and fine-tune the logic to align with the demands of this busy period.

Make short-term adjustments where necessary, and proactively identify potential bottlenecks that could slow down operations. By addressing these issues early, you can ensure your system is running smoothly and ready to handle peak demand without hiccups.

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