Last updated on March 6th, 2025 at 10:45 am

With so many omnichannel shopping options today and ecommerce giants like Amazon setting the bar for rapid shipping, consumers now expect fast and seamless delivery. To keep up, retailers need a strategy that meets these demands—and one of the most effective ways to do this is through order routing.

By investing in order routing, retailers can streamline the fulfillment process, move inventory more efficiently, and delight customers with faster deliveries. Let’s dive into how order routing works and why it’s essential for retail success.

What Is Order Routing?

Order routing directs customer orders to the optimal fulfillment location based on criteria like inventory availability, proximity, delivery speed, and fulfillment cost.

More specifically, order routing makes decisions based on: 

• Available inventory: Sophisticated order routing systems include logic to minimize order splitting. When a customer orders multiple items, the system evaluates each fulfillment location to see if one has all or most of the items available.
• Inventory levels: The order routing system considers the stock levels of items ordered. If an item is popular or in high demand, selecting a location with higher stock reduces the risk of stockouts, ensuring the customer receives all their items as quickly as possible and without delay.
• Customer location: Order routing will direct orders to the closest fulfillment site to minimize delivery times and costs.
• Ranked fulfillment locations: Order routing systems can prioritize fulfillment locations based on a predetermined ranked order of locations, typically factoring in criteria like speed, cost, and efficiency.
• Delivery options and time frames: Order routing systems will also take into account the customer’s chosen delivery speed or fulfillment preference.

Benefits of Order Routing for Retail Brands

Order routing is essential for omnichannel retail brands, offering a range of benefits such as lower shipping costs, higher customer satisfaction, and faster delivery times. Below, we’ll dive into the key advantages of order routing.

Faster delivery 

Order routing gets orders to customers faster by choosing the closest or quickest fulfillment location. It also lets brands tap into ship-from-store options, meaning online orders can be filled from nearby stores instead of waiting on fulfillment centers.

Reduced shipping costs

By selecting locations that reduce travel distance and grouping items when possible, order routing helps bring down shipping costs. These savings can be passed down to customers who then enjoy quicker deliveries at a lower price.

More sustainable

Order routing supports sustainable practices by shipping from closer locations to reduce emissions. It also minimizes split shipments, which saves on packaging and transportation costs. Plus, brands can route orders from locations with excess inventory, helping to clear stock and reduce waste—great for eco-conscious customers and long-term savings.

Increased customer satisfaction

If orders can ship from the closest location to the customer, shoppers will experience faster shipping options at a lower cost. Customers who receive their purchases more quickly, and spend less or nothing at all on shipping fees, will have higher satisfaction.

Scalability and efficiency

By automating fulfillment decisions, order routing reduces manual work and helps maintain accuracy, ensuring customers get exactly what they ordered. It also helps prevent stock outs by directing orders to the store or warehouse with available inventory. 

Supports omnichannel fulfillment

Order routing makes it easy for customers to shop on their terms by supporting options like ship-from-store, curbside pickup, and in-store pickup. It gives customers flexibility in how they receive their orders, boosting convenience and satisfaction.

How a Flexible Order Management System Enables Order Routing

Many legacy order management systems (OMS) have made it complex for retailers to set up routing logic and prioritization rules. These outdated systems often lack the flexibility needed to adapt to customer demands and optimize order routing.

In contrast, modern technology solutions, such as a flexible order management system, allow retailers to utilize order routing. A flexible order management system tracks all inventory on one platform. It also displays all purchase data on a dashboard, making it a one-stop shop for up-to-date inventory information. This data then helps predict which items will need reordering and manages returns with more efficiency.

A flexible OMS also supports item-level order routing, which directs each product to the best fulfillment location based on factors like proximity, stock availability, and delivery speed. This not only reduces shipping costs but also shortens delivery times, ensuring customers get their orders faster. Plus, it offers the flexibility for customers to choose from various fulfillment options like shipping, buy online pickup in-store (BOPIS), or curbside pickup, depending on their preferences.

Order Routing Example for a Retail Store

Let’s walk through an order routing scenario for a clothing retailer with a customer order that includes five items:

The company has four locations—stores A, B, and C, plus a distribution center (D). All locations carry the five items the customer ordered, but store C is out of stock in one of the sizes ordered, so it’s ruled out as an option.

Stores A and B are both in the same city as the customer, while the distribution center is located in a different region. To keep shipping costs in check, the distribution center is excluded from the routing process.

The retailer’s order routing system is set up to prioritize the closest location to the customer to ensure the quickest, most cost-effective delivery. In this case, store A, which is closer to the customer than store B, is selected to fulfill the order.

However, if one of the items the customer ordered is particularly popular and store A has low stock, the system may choose store B instead. This helps reduce the risk of stockouts or the need for split shipments, ensuring the customer receives their complete order promptly.

How Vince Used Order Routing to Boost Efficiency and Sales

Vince, a luxury retailer, elevated its customer experience with the NewStore Unified Commerce Platform, specifically leveraging the order management system’s advanced order routing capabilities. Previously, Vince’s siloed systems led to inefficiencies, requiring associates to call other locations to confirm item availability for customers. Now, with the NewStore platform, Vince has real-time inventory visibility across all locations, enabling associates to effortlessly sell inventory from any location. This streamlined experience now contributes to 8% of Vince’s total sales.

This improved order routing has benefited Vince in other ways too. Now, 38% of online orders ship directly from stores, getting items to customers faster and reducing shipping costs. Additionally, the brand’s ability to offer flexible fulfillment options, like buy online, pick up in-store (BOPIS), drives even more convenience. By combining order routing with intelligent inventory access, Vince not only meets customer expectations but also maximizes sales and boosts loyalty. Read our Vince case study to learn more about this partnership. 

Fulfillment for the Future

As retailers consider ways to enhance their omnichannel fulfillment options, investing in a flexible OMS with order routing should be a top priority. Not only will this help scale the business, but it will also provide a better customer experience. Retailers will benefit from greater inventory oversight and more sustainable shipping practices. Meanwhile, lower shipping fees and quick delivery options will increase customers’ loyalty in the long term.

Want to learn more about our flexible order management system? Reach out for a demo today.

Last updated on July 25th, 2024 at 07:12 am

Quick and accurate fulfillment is crucial in today’s retail environment. Efficient retail fulfillment enhances the customer experience, drives loyalty, optimizes operations, and reduces costs.

Implementing best practices in retail fulfillment helps brands create a seamless shipping process that meets modern consumer demands, reduces costs, and improves sustainability.

This post covers:

• What Is Retail Fulfillment?
• Key Components of Effective Retail Fulfillment
• The Retail Fulfillment Process 
• Challenges in Retail Fulfillment

What Is Retail Fulfillment?

Retail fulfillment is the comprehensive process of receiving, processing, and delivering orders to customers. It encompasses a series of activities aimed at ensuring that products move from the point of sale to the customer’s doorstep efficiently and accurately. 

The ultimate goal of retail fulfillment is to meet customer expectations for timely and accurate delivery, while managing inventory effectively and reducing shipping times and costs.

Key Components of Effective Retail Fulfillment

Below are the key components that contribute to a successful retail fulfillment process.

Inventory management

Inventory management is the backbone of retail fulfillment. It involves tracking and managing stock levels to ensure that products are available when customers place orders.

Key practices include:

• Real-time inventory tracking: Utilize software to obtain real-time updates on stock levels to prevent overselling and stockouts.
• Endless aisle: Have a view of inventory at all locations to limit instances where you have to tell a customer no.
• Demand forecasting: Analyze historical sales data to predict future demand and adjust inventory levels accordingly.
• Reorder point optimization: Set optimal reorder points to ensure timely replenishment without overstocking.
• Cycle counting: Regularly counting portions of inventory to maintain accuracy without disrupting operations.

Order management system

An order management system (OMS) is essential for handling the lifecycle of customer orders from placement to fulfillment.

Key features include:

• Order processing: Automate the order processing workflow to ensure quick and accurate handling of orders.
• Inventory visibility: Provide visibility into inventory across all sales channels to prevent overselling.
• Customer updates: Keep customers informed with order status updates, from confirmation to delivery.

Logistics and transportation

Delivering products to customers involves effectively managing logistics and transportation.

Key components include:

• Carrier selection: Choose reliable carriers based on cost, speed, and reliability.
• Fulfillment options: Give customers a choice in how they receive their orders, whether it’s delivered to their home or picked up in store.
• Shipping speeds: Offering multiple shipping options, including standard, expedited, and same-day delivery.
• Route optimization: Develop intelligent algorithms or rules to route orders to the most appropriate fulfillment location based on factors such as inventory availability, proximity to the customer, and cost-effectiveness. 
• Tracking and transparency: Providing customers with tracking information to monitor their shipments in real-time.

Customer service and communication

Excellent customer service and communication are vital for resolving issues quickly and maintaining customer trust. 

Key practices include:

• Multi-channel support: Offer support through various channels such as phone, email, live chat, and social media.
• Proactive communication: Keep customers informed about their order status, any delays, or issues proactively.
• Return management: Simplify the returns process by providing clear instructions to enhance customer satisfaction and offering customers choice in how they return their order.
• Feedback mechanisms: Collect and analyze customer feedback to continuously improve the fulfillment process.

The Retail Fulfillment Process 

The retail fulfillment process includes several key steps. Adhering to this process ensures orders are handled efficiently from purchase to delivery and customers are provided with choices.

1. Order placement

The process begins when a customer places an order through an online store, mobile app, or at a physical retail location.

The order details, including product selection, quantity, and shipping information, are captured and sent to the retailer’s order management system (OMS). 

Omnichannel inventory management systems are key for successful retail fulfillment, as they centralize inventory data to ensure real-time visibility into stock levels across physical stores, online platforms, and other distribution channels. 

2. Order processing

The OMS verifies the order, confirming that the payment is successful and the requested items are available in stock. Accurate inventory management prevents stockouts and overstock situations, ensuring optimal inventory levels.

Once verified, the system updates the inventory levels to reflect the new order. Packing slips and shipping labels are generated at this stage. 

3. Order routing 

With accurate inventory management, brands can route orders to the most appropriate fulfillment location based on factors such as inventory availability, proximity to the customer, and cost-effectiveness. This will get shipments to customers faster, while reducing costs and promoting sustainability. 

4. Inventory storage 

Products stored in warehouses or stores should be organized for efficient picking and packing.

5. Picking items and packing orders

Items are selected from their storage location(s) based on the pick list Then, once picked, items are taken to the packing area, where they are securely packed for shipment. Packing also includes adding any necessary documentation, such as invoices or return labels, and ensuring that the items are protected during transit.

6. Shipping and delivery

Packed orders are labeled with the appropriate shipping information and handed over to shipping carriers. Retailers often work with multiple carriers to offer various shipping options, such as standard, expedited, or same-day delivery.

Timely and accurate delivery is crucial for customer satisfaction. Customers should receive tracking information to monitor the progress of their shipment.

Additionally, customers should be offered multiple fulfillment options, including the ability to buy online, pick up in-store (BOPIS), utilize curbside pick up, or have the items delivered to their doorstep.

8. Returns management

A seamless retail fulfillment process also includes a straightforward returns process.

Customers should be able to return products easily, with clear instructions and pre-paid return labels if applicable. They should also be able to return items to the store, whether purchased online or at a brick-and-mortar location.

Returned items are processed back into inventory or designated for refurbishment or disposal.

Challenges in Retail Fulfillment

Retail fulfillment can be challenging for many brands. To do it well requires managing inventory accurately, offering customers choice and transparency, and coordinating logistics to ensure timely deliveries. Below, we cover these challenges in more detail.

Inventory management 

Accurate demand forecasting is crucial to any retail fulfillment, but it’s challenging due to fluctuating consumer behavior and market trends. It also requires a robust inventory management system.

Additionally, coordinating a global supply chain adds complexity, with potential delays, tariffs, and regulatory issues impacting the process.

Fast delivery 

Another critical challenge is meeting the high expectations for delivery speed, particularly in the context of last-mile delivery, which is often the most expensive and complex part of the fulfillment process. Customers now expect fast and often free delivery, driven by the standards set by e-commerce giants.

Order accuracy

Errors in picking, packing, and shipping can lead to customer dissatisfaction and increased return rates. Ensuring order accuracy is essential to maintaining customer trust and minimizing costs associated with returns and corrections.

Technology integration 

Many retailers rely on outdated systems that struggle to integrate with modern fulfillment technologies. Replacing legacy systems can require significant investment but is necessary for improving efficiency and meeting customer expectations.

Sustainability

​​Implementing sustainable practices in packaging, transportation, and overall operations is increasingly important but can be costly. Consumers are becoming more environmentally conscious, and brands need to balance sustainability with cost-effectiveness.

Omnichannel fulfillment 

Providing a seamless experience across online and offline channels is challenging and requires replacing legacy systems and processes.

Optimize Retail Fulfillment With NewStore

By optimizing your retail fulfillment processes to ensure quick, accurate, and cost-effective delivery, you can significantly enhance customer satisfaction and loyalty.

NewStore offers a unified commerce platform that empowers brands to achieve seamless and efficient retail fulfillment. Contact us today to discover how we can support your omnichannel fulfillment needs and help you deliver exceptional customer experiences.

Last updated on April 16th, 2026 at 10:48 am

As retail brands strive to differentiate themselves from growing competition, the importance of offering memorable in-store shopping experiences continues to rise. While some consumers may prefer to complete all of their shopping on digital channels, brands should still aim to connect with in-store shoppers by offering them personalized experiences they would not receive elsewhere. One method of achieving this involves leveraging an omnichannel point-of-sale (POS).

In this article, we cover the omnichannel POS features that are fueling more interactive shopping experiences.

Table of contents:

• What Is an Omnichannel POS?
• Traditional POS vs. Omnichannel POS
• 6 Benefits of an Omnichannel POS
• How an Omnichannel POS Fuels Sales for Footwear Brands
• Omnichannel POS: A Retail Staple for the Future

What Is an Omnichannel POS?

An omnichannel POS is a modern retail solution with features and functionality that support various sales channels, including brick-and-mortar stores, online stores, mobile apps, and any other touchpoints where customers interact with a business. This system allows brands to manage sales, inventory, and customer data across all channels seamlessly, providing a unified experience for both customers and employees.

Traditional POS vs. Omnichannel POS

A traditional POS is not built to support omnichannel brands. They are typically disconnected from other systems, hard to customize, and make it challenging to integrate new features. Furthermore, they don’t allow brands to capture and utilize real-time data. Today, customers expect highly personalized, convenient experiences, and a traditional POS makes this difficult to deliver. 

On the other hand, an omnichannel POS is built for integrations, unlike its traditional counterpart, and it allows brands to tap into real-time, game-changing data. It’s a complete solution that provides in-store associates with an immeasurable amount of ways to give white-glove service and brands the ability to deliver an overall top-notch experience.

6 Benefits of an Omnichannel POS

An omnichannel POS offers flexibility and convenience, integrating seamlessly with other channels and allowing brands to provide a consistent experience. Below, we discuss the key benefits of the solution.

1. More time with customers

Brands that equip their sales associates with omnichannel POS devices can ensure they spend more time connecting with customers on the sales floor. Having the ability to check inventory on the spot – or facilitate a checkout experience without leaving the shopper’s side – ensures that associates maximize their time with customers. 

Additionally, leveraging omnichannel solutions with inventory visibility helps sales associates find consumers’ requested products at a much faster rate. This translates into shoppers spending less time waiting for their associate to return from the back room and more time engaging with them – and potentially receiving great recommendations for other items to try on.

2. Inventory visibility

Sales associates can tap their omnichannel POS devices to find any size and styling information they need to assist customers without leaving their side. 

Additionally, this capability is especially useful for brands trying to maximize their real estate in stores. Brands with smaller brick-and-mortar locations may want to display only one type of shoe on the sales floor and stow additional styles and colors in the back room. Omnichannel POS solutions can then help associates easily sort through the inventory to find the exact product their shopper is looking for. 

3. Endless aisle transactions

Another benefit of an omnichannel POS and having superior inventory visibility is being able to unlock endless aisle technology. Endless aisle enables staff to access and sell all available products from any warehouse or retail location. In addition to boasting inventory visibility – which lets sales associates view real-time product availability from anywhere in the enterprise – endless aisle also offers customers a slew of order fulfillment options. 

For example, if a shopper visits a brick-and-mortar store and realizes that their preferred shoe style and color is unavailable in their size, a sales associate can leverage endless aisle technology to find another location with that product in stock. The associate can then offer to ship the product directly to the customer’s home or to a nearby store location.

Endless aisle also drives more cross-sell and upsell opportunities, which can increase consumers’ average basket size. By giving sales associates access to the full product catalog at their fingertips, they can browse for complementary items to recommend to shoppers. If a customer is looking to purchase new fashion sneakers, for instance, the associate can use endless aisle technology to see if the store also carries socks in a matching color.

4. Mobile checkout

With this solution, brands can offer mobile checkout. The entire check out process, from scanning products to processing payments, is all completed on a mobile device, which creates a faster, more seamless checkout experience.

Additionally, there’s an aesthetic appeal to using an omnichannel POS for mobile checkout. Rather than having customers see a clunky checkout counter, an omnichannel POS device adds a clean, modern vibe to the checkout and store experience.

5. Personalized analytics

As consumers grow more comfortable sharing personal data, such as their height and weight, in exchange for receiving personalized product recommendations and experiences, brands can adjust their omnichannel offerings accordingly. With personalized data, brands can take their customer service and clienteling efforts to the next level, cultivating loyalty over the long-term.

6. Convenience of modern technology

In contrast to a traditional POS system, an omnichannel POS facilitates regular software and feature updates, promoting agility. Further, deploying an omnichannel POS incurs lower upfront costs, as it only requires a mobile device, eliminating the need for bulky hardware units. All software resides on the mobile device, streamlining operations and avoiding potential hardware removal down the line.

How an Omnichannel POS Fuels Sales for Footwear Brands 

In-store shopping still maintains its allure, especially for apparel and footwear products, where the personalized nature of trying on products is still important. In particular, footwear brands are finding omnichannel POS solutions helpful when it comes to equipping sales associates with important customer data and information to find best-fitting products. 

From giving associates mobile devices to facilitate easy checkout experiences on the sales floor to deploying technology that scans shoppers’ feet to identify the best style of shoe for their needs, the opportunities for driving customer loyalty – and sales – are vast with an omnichannel POS.

For instance, innovative scanning technology can now analyze shoppers’ feet with precision, identifying not only the correct size but also the ideal style and fit based on individual preferences and biomechanics. This not only enhances the customer experience by ensuring a perfect fit but also minimizes the risk of returns, thus optimizing operational efficiency and reducing costs.

Additionally, because of the depth of inventory in footwear – there are so many size, width, and color combinations – it’s critical for brands to be able to access and sell inventory from all locations. This is true for buying online and fulfilling in-store as well as buying in-store and fulfilling from another store through endless aisle. Without an omnichannel POS, brands wouldn’t have this flexibility or the ability to maximize sell-through rates.

When store associates are armed with invaluable customer insights and inventory information, they can offer personalized recommendations and assistance, effectively turning each interaction into an opportunity to deepen customer relationships and drive sales.

Omnichannel POS: A Retail Staple for the Future

As the retail marketplace grows more crowded – and brands attempt to reach more global audiences – leveraging an omnichannel POS solution will be critical to success. The ability to tap into features like inventory visibility, endless aisle, and store fulfillment options will enable brands to create more personalized shopping experiences while increasing the likelihood of driving sales. 

Ultimately, consumers dictate the direction of the marketplace – and they increasingly want more experiences with a blurred line between digital and physical shopping channels. To meet the needs of their digitally savvy shoppers, retail brands should invest in a holistic platform that can seamlessly manage inventory, customer data, order fulfillment, product information, and more – and that’s an omnichannel POS solution.

Brands with an omnichannel presence enjoy a higher compound annual growth rate (CAGR) in market share, as discussed in our Guide to Creating an Omnichannel Strategy. 

Interested in finding out how your brand can use an omnichannel POS to transform the customer experience? Speak with one of our experts today.

Last updated on July 30th, 2024 at 01:31 pm

For some retail brands, undergoing an omnichannel transformation may seem daunting. This is especially true for brands that haven’t yet blurred their physical and digital shopping channels. While omnichannel transformations encompass many elements, one remains critical to achieving success: omnichannel inventory management. 

Today’s consumers toggle between many shopping channels, and mixed-cart transactions continue to rise in popularity. Therefore, it’s more important than ever for brands to invest in and optimize omnichannel inventory management.

Read below to learn how omnichannel inventory management helps brands drive full-scale omnichannel transformations.

We cover:

• What Is Omnichannel Inventory Management?
• Benefits of Omnichannel Inventory Management
• Challenges to Omnichannel Inventory Management 
• How to Optimize Omnichannel Inventory Management
• Omnichannel Inventory Management Helps Brands Win

What Is Omnichannel Inventory Management?

Omnichannel inventory management is a strategic approach to overseeing and controlling inventory across multiple sales channels seamlessly. It involves centralizing inventory data to ensure real-time visibility into stock levels across physical stores, online platforms, and other distribution channels. 

By synchronizing inventory levels and optimizing order routing and fulfillment processes, retail brands can provide customers with a consistent shopping experience regardless of the channel they choose. This approach also facilitates offering various fulfillment options such as ship-from-store and in-store pickup to enhance flexibility and convenience for customers. 

Benefits of Omnichannel Inventory Management

Investing in omnichannel inventory management offers several key benefits for retail brands.

Providing better inventory accuracy

Inventory accuracy, which measures inconsistencies between recorded and physical inventory, is key to providing seamless omnichannel shopping experiences. Consumers expect to see real-time product availability across all retail channels. 

They also want the option of ordering products through various channels. As a result, inventory accuracy leads to more order fulfillment and better customer satisfaction. It also helps with loss prevention by ensuring it accounts for each product.

Optimizing sales associates’ efficiency

Putting more data into the hands of sales associates better equips them to do their jobs. Staff that has access to inventory management tools can guide in-store shoppers directly to their preferred products. 

Sales associates can also cross-sell and upsell other pieces of available stock. The clienteling data that inventory management yields helps associates better anticipate customers’ demands, especially for top-selling items.

Lowering amounts of excess stock

With strong inventory management platforms, brands can lower amounts of excess stock. They can also only order the exact amounts of items they need from the manufacturer. 

If a product isn’t selling well, the platform will flag that information. Staff members can then adjust their purchasing accordingly. Stores can also transfer inventory between locations to achieve more optimal stock levels.

Enhancing the sell-through rate of full-price products

Sell-through rate calculates the amount of inventory a retailer sells as it relates to the number of items purchased from the manufacturer. Brands frequently examine their sell-through rates to ensure they hit their sales goals. 

Brands that invest in inventory management platforms can calculate more accurate sell-through rates. This helps them identify which products are selling well and which are not meeting sales goals. Sell-through rates can also help forecast trends if a particular item is exceeding expectations.

Minimizing costs and shrinkage

Brands that deploy inventory management tools can gain a more holistic understanding of their ordering strategies. The tools can help uncover inventory shrinkage, find opportunities for tax write-offs, and more effectively manage inventory turnover. This enables brands to maintain better liquidity.

Elevating the customer experience

Not only does inventory accuracy enhance in-store experiences for customers, but it also improves the post-shopping experience. When stores can track and allocate orders in real time, they can then fulfill the orders promptly and send them to customers more quickly. Inventory accuracy also reduces the potential for errors in labeling and shipping orders.

And even more importantly, it gives shoppers more control over how they would like to receive their orders. If a nearby store or warehouse has the purchased items in stock, customers can use buy online, pickup in store or reserve online, pickup in store options to retrieve them at their leisure.

Challenges to Omnichannel Inventory Management 

While omnichannel inventory management offers numerous benefits, it also presents several challenges that brands must navigate effectively.

Maintaining accurate inventory visibility 

Maintaining accurate and real-time visibility of inventory across multiple channels can be challenging, particularly without the right technology. Discrepancies in inventory data between different systems or locations can lead to stockouts, overselling, and customer dissatisfaction.

Fulfillment and returns complexity

Fulfilling orders from multiple channels while optimizing inventory allocation and fulfillment routes adds complexity to logistics operations. Balancing inventory levels across warehouses, distribution centers, and stores requires sophisticated algorithms and efficient processes.

Likewise, managing returns across multiple channels poses challenges in terms of processing, restocking, and reconciling inventory. Different return policies and procedures for online and offline channels add complexity to reverse logistics operations.

Integration of systems and technologies

Integrating diverse systems and technologies, such as inventory management software, POS systems, and ecommerce platforms, requires seamless data exchange and interoperability. Compatibility issues and data silos can hinder operational efficiency and data accuracy.

Inventory storage costs

Maintaining inventory across multiple channels incurs additional holding costs, including storage, insurance, and depreciation expenses. Optimizing inventory levels to minimize holding costs while ensuring product availability is a delicate balance.

Customer expectations

Customers expect consistent and seamless experiences across all channels, including product availability, fulfillment options, and returns processes. Failing to meet these expectations can result in lost sales, negative reviews, and damaged brand reputation.

How to Optimize Omnichannel Inventory Management

Consolidating inventory data into a single platform will help you achieve a competitive advantage. By investing in omnichannel inventory management, you can significantly improve the shopping experience, while also minimizing costs. 

Implement inventory synchronization

Inventory management platforms maintain accurate records of all goods across all channels. This allows retail brands to leverage cycle counting to pinpoint any discrepancies and ensure stores display all available products. Brands can also ensure they are making necessary adjustments for missing or damaged items.

Utilize demand forecasting

Use historical sales data, market trends, and other relevant factors to forecast demand accurately. This helps in optimizing inventory levels and reducing the risk of overstocking or understocking. With accurate forecasting, retail brands can strategically transfer products between locations to match varying supply and demand. 

Optimize order routing

Having an accurate view of inventory will allow brands to develop intelligent algorithms or rules to route orders to the most appropriate fulfillment location based on factors such as inventory availability, proximity to the customer, and cost-effectiveness. This will get shipments to customers faster, while reducing costs and promoting sustainability. 

Offer multiple fulfillment and return options 

Provide customers with various fulfillment options such as ship-from-store, in-store pickup, and curbside pickup to optimize inventory utilization and enhance the customer experience.

It’s almost important to develop a standardized returns process that allows customers to return items purchased online to physical stores and vice versa. This ensures a consistent and hassle-free experience for customers across all channels.

Leverage a mobile point of sale

A mobile point of sale (mPOS) is crucial for omnichannel inventory management success. With a mPOS brands can fulfill orders more efficiently and provide a superior customer experience. Additionally, leveraging POS data for inventory management enables retail brands to gain valuable insights into sales trends, customer behavior, and inventory performance, empowering them to make data-driven decisions.

Monitor and analyze performance metrics 

To be successful, it’s critical to regularly monitor key performance indicators (KPIs) such as inventory turnover rate, sell-through rate, and order fulfillment time. By analyzing these metrics to identify areas for improvement, brands can optimize inventory management strategies accordingly.

Omnichannel Inventory Management Helps Brands Win

Faherty Brand’s Global Operations Lead Mark Engebretson recently discussed the symbiotic relationship between inventory management and omnichannel success in an interview for the Endless Aisle podcast. 

According to Mark, strong inventory management helps brands meet customers however – and wherever – they prefer to shop. It also mitigates any potential supply chain challenges, which impacts brands’ ability to serve customers worldwide. Mark also emphasized how inventory management tools enable brands to keep track of serialized inventory. Most importantly, he discussed the tool’s ability to save sales associates time, so they can spend more time assisting customers.

Ultimately, by investing in omnichannel inventory management, brands can take a big step forward into their omnichannel transformation journeys.

To learn more about how a single inventory management solution can fuel your brand’s omnichannel transformation, check out NewStore’s Inventory Management fact sheet and speak with one of our experts today.

Last updated on July 25th, 2024 at 04:57 pm

In today’s competitive marketplace, retail brands must battle for consumers’ attention and wallet share. This is especially challenging among ecommerce giants that offer a plethora of products and convenient shopping options. As a result, many brands may opt to increase their inventory to attract more consumers. However, to keep turning a profit, brands must ensure they maintain a favorable sell-through rate. 

Below, we cover how maximizing sell-through rate can help brands benefit from better inventory accuracy and a more efficient supply chain.

In this article, we cover:

• What Is Sell-Through Rate?
• How To Calculate Sell-Through Rate
• Why Sell-Through Rate Matters
• How Inventory Visibility Impacts Sell-Through Rates
• Why Sell-Through Rate Is an Important Metric

What Is Sell-Through Rate?

Sell-through rate refers to the amount of inventory a brand sells relative to the number of products bought from the manufacturer. 

Brands with favorable sell-through rates can treat those as indication that their sales performance is strong. Those with lower rates may want to review their marketing tactics and inventory management to understand where they can make changes.

The ranges for sell-through rates can fluctuate based on market trends and seasonal products. For instance, if customer demand for a certain type of item is extremely high due to a specific trend, or shoppers clamor to buy particular products during the holiday season, those factors can drive up the brand’s sell-through rate.

How To Calculate Sell-Through Rate

To calculate sell-through rate, you divide the number of products sold by the number of products purchased from the manufacturer. Then, multiply that number by one hundred. That percentage is the sell-through rate.

Many brands calculate sell-through rates on a monthly basis to ensure they stay on track to hit sales goals. This then provides companies with multiple benchmarks to review at the end of the year, which they can use to determine whether sell-through rates fluctuate at certain times.

Retail brands seeking a strong sell-through rate should aim for 80% or above. However, according to a study conducted by Coresight Research, non-grocery retailers typically hover around a 60% sell-through rate for full-price products. 

Why Sell-Through Rate Matters

Sell-through rates help brands balance supply and demand. If you purchase too many products from manufacturers, you will have lots of leftover stock. This will then eat into profit margins and increase storage fees. 

On the flip side, brands that purchase too few products will not meet shoppers’ demands and may end up losing them to a competitor. Retail brands that effectively monitor their sell-through rates will stand a much better chance at ensuring their longevity. 

A strong sell-through rate help brands:

• Reduce markdown losses: Brands typically mark down items that are not selling well. If you order the right amount of inventory from the get-go, you won’t need to sell as many products at a price reduction.
• Cut storage costs: Maintaining stock in brick-and-mortar locations is expensive, and brands do not want excess inventory collecting space where new products can live. By achieving a favorable sell-through rate, brands can ensure they use their physical retail space efficiently.
• Manage inventory: Inventory management is critical for any brand, particularly those with omnichannel shopping options. Examining the sell-through rate helps brands determine which products are selling well and which aren’t. The findings will help inform stocking needs and may also forecast future trends.
• Develop metrics for success: Brands can aim to surpass their sales targets by measuring their sell-through rate. To achieve a strong rate, you will need to identify opportunities to operate in a more strategic manner. This could mean swapping manufacturers or tweaking inventory to strive for a better rate.

How to Improve Sell-Through Rate

Improving sell-through rate involves a combination of strategic planning, efficient operations, and effective marketing tactics. Here are several strategies you can consider:

Understand your customer

Understanding your target audience, their preferences, behaviors, and purchasing patterns can help improve your sell-through rate. Use tools to gather data on customer demographics, shopping habits, and product preferences. This insight will help you tailor your inventory and marketing strategies accordingly.

Clienteling, a modern customer service technique that allows brands to build long-lasting relationships with customers, can help you gain next-level customer data. By understanding individual customer preferences, purchase history, and needs, brands can engage customers on a more personal level and drive sales.

Enhance product presentation and store layout

For your online store, invest in high-quality product photography and compelling product descriptions to showcase your offerings effectively. Provide detailed information about features, benefits, and usage instructions. Optimize product listings for search engines and e-commerce platforms to improve visibility and attract more potential customers.

In-store, it’s important to place high-demand or featured products in prominent locations to immediately capture customer attention. You’ll also want to implement a logical and intuitive store layout that facilitates easy navigation and minimizes congestion, allowing customers to browse comfortably and efficiently. Regularly update product displays and arrangements to showcase new arrivals, seasonal promotions, and complementary items, keeping the store fresh and engaging for repeat visitors.

Enable endless aisle shopping

Endless aisle technology lets store associates access and sell inventory from a variety of distribution centers and locations. It also offers insight into real-time inventory so they can view the full product catalog across the enterprise.

With endless aisle, store associates can help customers make purchases if their desired items aren’t available in a particular location. For instance, if a shopper wants to buy a shirt not available at their nearest store, an associate can leverage endless aisle technology to check if a nearby distribution center or store location carries the item. If the item is available in another location, the store associate can complete the sale on the spot and ship the item directly to the customer. This allows brands to fulfill orders from a variety of locations, while saving sales. 

Leverage store fulfillment options

Brands seeking to move inventory from brick-and-mortar stores can offer customers a variety of store fulfillment options. Store fulfillment allows brands to complete and ship orders from their physical locations. Customers can then retrieve their orders by choosing from buy online pickup in-store (BOPIS), curbside pickup, or ship-from-store options. This clears more space for new inventory. Additionally, shoppers who come in to pick up their order may make a purchase, further increasing the sell-through rate.

Offer retail promotions

Brands can also achieve a better sell-through rate by effectively leveraging retail promotions. Certain types of tactics, like percentage discounts, enable them to move inventory that’s not selling well by advertising a percentage off a certain item or an order threshold. Percentage discounts may also fuel sales from inactive shoppers, motivating them to make impromptu purchases due to the limited-time deal.

Brands with excess inventory that need to sell more units can use tactics such as tiered promotions, buy one get one (BOGO) deals, and other bundling opportunities. These all encourage shoppers to purchase more products in one transaction and are especially useful for selling complementary products – such as socks and shoes – or items with expiration dates or shorter shelf lives.

How Inventory Visibility Impacts Sell-Through Rates

Brands must maintain up-to-date supply chain information so they can attain a favorable sell-through rate. Inventory visibility refers to the practice of tracking the movement of inventory throughout the sales cycle in real time.

This gives retailers important data on sales, stock levels, and product demand. The data then enables them to make more informed choices related to inventory management. Some of these decisions may include forecasting demand for certain items and avoiding overselling or underselling inventory.

Additionally, inventory visibility can empower store associates to cross-sell or upsell various products. Store associates can also leverage the visibility to drive purchases of current inventory before the retailer buys additional items from manufacturers.

To improve their sell-through rates, brands can invest in solutions like omnichannel order management systems and RFID technology. 

An omnichannel order management system captures all customer, inventory, and order data in one platform. It also lets retailers engage in more efficient operations by managing all inventory across the enterprise. They can enable item-level order routing based on availability, location, and fulfillment capacity.

Meanwhile, RFID technology allows brands to track inventory from initial shipment to point of purchase via wireless communication. This ensures a high level of inventory accuracy and supply chain visibility, as they can access real-time data on sales and stock levels at any time and from any location.

Why Sell-Through Rate Is an Important Metric

Ultimately, setting – and then exceeding – sales goals is key to any retailer’s success. Sell-through rates help brands identify their supply chain’s effectiveness. They also assist brands with standing out in a competitive marketplace. 

A favorable sell-through rate indicates that a brand is accurately purchasing top-selling products from manufacturers. A low sell-through rate demonstrates that brands may need to dig into why their inventory is moving slowly.

The good news is that lower sell-through rates are fixable – if retailers are willing to invest in solutions like inventory visibility and omnichannel order management. These solutions will support faster inventory turnover, which will subsequently enhance retailers’ bottom lines.

Interested in learning how your business can improve its sell-through rate? Speak with one of our experts today.

Last updated on March 24th, 2026 at 01:49 pm

Your business might have invested in a heavy-duty order management system within the last decade or few years. But in today’s digital-first retail environment, these legacy systems often don’t have the flexibility to perform under pressure.

For ecommerce—and particularly apparel sales—it’s never been more important for brands to take a more innovative approach to order management. Although worldwide retail sales are projected to top $26 billion in 2022, it’s no secret that the pandemic introduced new challenges to retail.

Legacy order management systems (OMS) simply aren’t a fit for the post-pandemic world. Retailers now have to be flexible and agile as well as implement technology that allows them to operate as lean as possible. 

That’s why a flexible order management system is crucial. This post discusses the capabilities of a flexible OMS and how one can take your retail business to the next level.

What Can a Flexible Order Management System Do?

An order management system is an essential piece of retail technology. It allows you to track all inventory and orders in one place, bringing point of sale and ecommerce data into one intuitive dashboard.

But not all OMS’ are the same. Retailers need to invest in a flexible OMS to stay at the forefront of modern retail and deliver an exceptional customer experience.

Below, we highlight the capabilities of a flexible order management system.

Enable Inventory Visibility Like Never Before

Where is your inventory right now? Are you at risk of stock-outs? Flexible order management systems allow you to see all of your inventory in real-time. See what’s in transit as well as what you have in-stock at each store and warehouse location. The system will even help predict when it’s time to reorder, so you keep the right amount of product stocked across locations at all times. 

An unprecedented view into inventory also makes it possible for you to manage returned inventory more efficiently. A flexible OMS gives your team a defined flow to integrate these products back into inventory.

A flexible order management system also allows brands to alter inventory levels and product assortments on a dime depending on where customer demand is. This was crucial during the pandemic when many customers flocked away from cities and into the suburbs or even resort communities. It’s crucial to be prepared for the possibility that a low volume store may quickly become high volume.

Save In-Store Sales

With enhanced inventory visibility also comes the ability for store associates to check on stock levels for items in-store without ever having to leave the customer’s side. Offering this experience, opposed to walking away from the customer to check in the back of the store, can be the difference between losing a customer and saving a sale. 

If an item is out-of-stock, a store associate can look up inventory levels at nearby store locations on their mobile device and offer that item to the customer. With this endless aisle technology, you can ensure the customer is still able to walk out of the store having purchased what they are shopping for.

Get Products to Customers Faster and How They Want

A flexible OMS allows for item-level order routing, which is crucial as customers demand cheaper, faster shipping. In fact, 66% of shoppers expect free shipping on every ecommerce order, which means your brand is likely footing the bill for shipping. Flexible order management allows you to optimize how orders are fulfilled. Ship items from warehouses or stores that are near the customer to reduce transit time and costs. 

You can also offer customers more choices for how they receive their items. For example, customers may want to buy online and pick up in-store (BOPIS) or utilize curbside pickup. Instead of giving shoppers just one option, your OMS can give shoppers the omnichannel fulfillment options they expect. 

Build Deeper Customer Relationships

According to research from Microsoft, 58% of shoppers will stop buying from your brand if they experience poor customer service. Since over 13% of retail purchases happen online, it’s critical for retailers to give shoppers a great experience not only in-store but also online. 

A flexible OMS allows you to deliver top-notch customer service by giving store associates or customer service staff immediate access to pertinent shopper information, such as transaction history across channels. When you can view online orders and in-store sales in the same place, you make the transition between the two channels seamless. This also allows you to easily make order modifications and streamline the return and exchange process. 

Further, having a clear window into your customers’ history allows store associates to more thoroughly and personally cater to their specific needs as well as discover patterns among shoppers. By identifying these trends, you’ll be able to shift your strategy and adapt more quickly to unexpected scenarios. It’s the kind of durability and preparedness that’s necessary, especially after COVID-19. 

Choose a Flexible Order Management System

Omnichannel retail is already here, and in the shadow of the pandemic, it’s the standard shoppers expect. The buyer experience is far from fluid, and that can make for a lot of chaos without the right system in place. 

Switch to omnichannel order management solutions that allow your team to pivot quickly while better managing expenses. With real-time data, your OMS gives you a single source of truth across all channels. 

If you want your brand to compete in the modern world of retail, go with a flexible order management system. Sign up for a free demo of our cloud-based order management.