How to Choose the Right Warehouse Management System (WMS) for E-Commerce

Running a business often requires managing multiple systems simultaneously, including inventory, orders, customer service, shipping, and returns, among others. However, there’s one tool that can help you stay on top of all these factors: a robust warehouse management system (WMS).

A WMS is the behind-the-scenes MVP of many e-commerce operations. The system can help keep your warehouse running smoothly, ensuring you know what you have in stock, where it is, and how quickly it’s moving. 

However, not all WMS platforms are created equal, especially when it comes to the unique demands of e-commerce. So, how does a business owner choose the right one for their operations? Here’s a guide that can help you find a WMS that fits your business needs and goals. 

Step 1: Map Out Your Needs First

Before diving into WMS, consider what would benefit your business. Take time to answer questions like:

• How much inventory do you typically manage?
  
• Do you have one warehouse or multiple fulfillment locations?
  
• Are you shipping domestically, internationally, or both?
  
• How many orders are you processing daily?
  
• Do you work with third-party logistics (3PLs)?
  
• What marketplaces do you sell through? 

Another way to help you answer these questions is to create a quick checklist of your must-haves for your growing business. Do you need better stocking management or opportunities for scaling? This roadmap may help you avoid falling for WMS features you don’t actually need.

Step 2: What Features Should You Look For?

Now that you’ve got a handle on your needs, it’s time to shop smart. Here are some critical features that matter most for e-commerce businesses:

• Inventory Tracking: A WMS can provide a real-time view of what’s in stock, what’s selling quickly, and what needs restocking. This is crucial for preventing stockouts and ensuring customer satisfaction.

• Order Routing: If you handle a high volume of shipping, consider systems that automatically route orders to the correct warehouse or fulfillment partner based on location, inventory levels, or delivery timelines. This can help you save money and speed up delivery.

• Shopping Cart Integration: For e-commerce, ensure your WMS integrates seamlessly with your online platforms (such as Shopify, WooCommerce, Amazon, etc.) to facilitate smooth order flow into your system without manual input.

• Barcode Scanning & Mobile Access: Barcode scanning helps speed up picking and reduce errors. If you have a large team, a mobile-friendly system allows your employees to move freely around the warehouse without being tied to a desk.

• Returns Management: Returns are an integral part of the e-commerce landscape. Your WMS can help facilitate the easy retrieval, inspection, restocking, and disposal of returned items.

• Analytics & Reporting: The more data you have, the wiser your decisions can be. A strong WMS will help you spot trends and make informed forecasting calls.

• Scalability: You may want a system that can grow with your operations, whether that means handling more orders or managing and supporting a second warehouse location.

Deeper Dive: What Are Popular WMS Components? 

Let’s start with the basics. A primary purpose of a WMS is to enable you to track your inventory in real-time. But in the world of e-commerce, where products can fly off shelves surprisingly fast, you may need a tracking system with instantaneous updates. 

A good WMS for inventory tracking will:

• Track inventory across multiple locations or bins
  
• Update stock levels instantly as orders are placed and items are shipped.
  
• Help prevent overselling (nothing’s worse than telling a customer their order is out of stock)
  
• Provide low-stock alerts so you can reorder before it’s too late 

If your warehouse still relies on spreadsheets or manual counts, you’ll be amazed at how much time and stress automated inventory tracking can save you.

Smart Order Routing

In e-commerce, speed matters. Nowadays, customers expect their orders to ship expeditiously. That’s where smart order routing comes in.

With the right WMS, your system can automatically:

• Choose the most efficient warehouse or fulfillment center to ship from
  
• Optimize picking paths to minimize walking time for warehouse staff
  
• Prioritize orders based on service level (think: overnight vs. standard shipping) 

This not only speeds up fulfillment but also helps you save on shipping costs and reduce human errors. A WMS with smart order routing can create happier, loyal customers and a smoother workflow.

Integration with Shopping Carts

You’ve got orders coming in from Shopify, Amazon, eBay, and maybe even your own website. Manually entering those orders into your system can get complicated. 

That’s why integration is a must-have feature in a WMS for an e-commerce business. Try looking for a system that works with your:

• Online shopping carts (Shopify, WooCommerce, BigCommerce, etc.)
  
• Marketplaces (Amazon, Etsy, Walmart, etc.)
  
• Shipping tools (ShipStation, EasyPost, FedEx, UPS) 

The more connected your systems are, the less manual work you’ll have to do, which ultimately leads to fewer mishaps along the way. 

Intuitive Use 

Let’s face it: even the fanciest WMS is useless if your team can’t figure out how to use it. Ensuring that a system is intuitive and user-friendly can help you and your employees manage your operations as intended.

A few questions to ask:

• Is the interface clean and easy to navigate?
  
• How steep is the learning curve?
  
• Do they offer training or onboarding?
  
• Is customer support responsive? 

Try a demo, watch a few tutorials, or speak with current users if possible. A smooth learning experience will save you a significant amount of time and stress in the long run.

Final Thoughts on WMS

Choosing the right WMS for your e-commerce business is a big decision, but it doesn’t have to be overwhelming. Focus on the features that truly matter to you and your business; whether it’s real-time inventory tracking, smart order routing, seamless integration, or intuitiveness, knowing what you need to grow your business is imperative for success. 

Take your time, do a few demos, and don’t be afraid to ask questions. By using this guide, you may be able to find the perfect WMS that aligns with your business goals.