WMS Ecommerce: Five Reasons Businesses Rely on WMS Software

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Technology has always been a game changer in the retail industry. The rise of e-commerce has changed the way consumers shop. In 2021 research, more than 2.14 billion people prefer to purchase products and services online. That number is nearly 30% of the global population. As the number of online shoppers increases, so does the competition. That is why entrepreneurs strive to find new ways to stay ahead of the curve. Adapting the warehouse management system (WMS) into their daily operation is one of their best moves.

What is WMS?

WMS is software that helps businesses to manage and optimize their daily operations. It covers different aspects of the company, including inventory management, order fulfillment, and shipping. This is especially useful for the ecommerce industry as it has a large inventory to manage.

Study shows that the WMS market size is predicted to expand from USD$2.39 billion in 2021 to USD$2.74 billion in 2022 with a 14.77% compound annual growth rate (CAGR). This data will reach up to USD$4.83 billion during the forecast period at a CAGR of 15.55%. Moreover, this growing demand is not surprising as this software plays a vital role in any business.

Reasons Businesses Rely on WMS Software

To give you insights, here are five reasons why ecommerce businesses rely on WMS software:

1. Better Inventory Management

It is a common challenge for ecommerce businesses to keep track of their inventory. You need to ensure that you have enough stock to meet customer demand. However, at the same time, you do not want to overstock as it could lead to high storage costs. Poor vendor communication, failure to monitor inventory, and buying in bulk are some factors that can contribute to inventory problems.

The right WMS software can help solve these issues. It provides real-time data on inventory levels and stock movement. For example, the system can alert the purchasing team if you have a low stock level for a particular product. This way, you can take action immediately and avoid running out of stock. In other words, the WMS ecommerce solution assists you in making sound decisions about inventory management.

2. Fast Order Processing

Fast and efficient order fulfillment is crucial to your ecommerce business success. in a report, 40% of online buyers are willing to wait two days for their orders to arrive. Meanwhile, 18% are eligible to pay an extra charge for one-day delivery. If you cannot process and ship orders on time, customers will likely go to your competitors.

Implementing WMS technology can speed up your ordering processing time by automating various tasks. For instance, the system can generate pick tickets and route them to the right team. Moreover, you can monitor product status and location in real time, whether in transit or delivered to the customer. With WMS, you can achieve your goal — to process and ship orders on time. As a result, you can improve customer satisfaction and loyalty.

3. Reduce operating costs

The cost of running a business can be high, especially for ecommerce businesses. Many factors must be considered, such as facility, staff, inventory, and shipping. All of these aspects can have significant impacts on your bottom line.

Fortunately, the design of WMS software helps businesses cut down their operational costs. This innovative solution can optimize warehouse space and improve resource utilization. For example, the system can help you find the most efficient way to store products in your facility. You can then use the space more effectively and minimize storage costs. At the same time, you can reduce your reliance on manual labor, as this technology automates several tasks.


4. Boost Customer Satisfaction

The primary goal of every business is to provide the best possible shopping experience for its customers. A warehouse management system can greatly assist in achieving your objective by improving customer experience.

As mentioned, WMS software provides real-time data on product availability. You can use this information to avoid overcommitting and underdelivering to clients. You can also provide accurate delivery estimates and keep your customers in the loop. This approach can reduce the number of customer service calls and emails, resulting in satisfied customers. They may also leave positive reviews and recommend your business to other people. All these factors can generate more leads and sales for your ecommerce business.

5. Improve business scalability

scalability is one of the most important aspects of a successful business. As your business grows, so do your customer base and inventory levels. If unprepared for this growth, it may lead to many problems, such as stockouts, longer lead times, and unhappy customers.

WMS solution is intended to grow with your business. This software can be customized and configured to meet your changing needs. You can add more features and functionalities to the system, such as return management, stock-keeping units (SKUs), new users, locations, and more. As a result, you ensure that your ecommerce business keeps up with the demand without any problems.


A warehouse management system (WMS) is a valuable asset for ecommerce businesses. Now it is your turn to take advantage of this technology. It is a long-term investment that helps your business reach new heights.

the post WMS Ecommerce: Five Reasons Businesses Rely on WMS Software appeared first on Home Business Magazine.

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