Multichannel Order Management Market Analysis

Multichannel Order Management Market Overview

The multichannel order management market is projected to register a CAGR of 10.12% during the forecast, 2024–2032.

Multichannel Order Management (MOM) solutions are business-to-business (B2B) software designed for businesses or brands with a primary focus on online commerce.MOM provides a widely used manual ordering interface that can be used to place orders, handle refunds, and execute exchanges, as well as a variety of other order-related operations. Companies can also access product inventory data such as quantity available, committed, on order, backorder, in-transit, work-in-progress, and available to promise. 

Retailers can enhance operational profitability and accelerate fulfillment by leveraging enterprise visibility. It enables retailers to process returns, complete exchanges, and manage credit and disposition processes smoothly, regardless of where the goods were initially purchased. When goods are returned, inventory counts are automatically updated, and sellable items are placed back into available to promise inventory.

A MOM system is a business-to-business software designed for various dealers to promote their goods and focus on internet commerce. Multichannel requests the executive's arrangements are often designed to assist aggregate orders from multiple channels into a comparable list and publish the most recent costs across all business diverts during cost adjustments. The multichannel order management market size is projected to grow from USD 2.07 billion in 2020 to USD 4 Billion by 2030, at a Compound Annual Growth Rate (CAGR) of 10.12% during the forecast period. The major factors driving the growth of the multichannel order management market are the growing number of internet users and growth in multichannel selling. However, security and privacy concernsare likely to hinder the multichannel order management market growth. Moreover, the emerging potential for boosting online sales is providing opportunities in the multichannel order managementmarket.

COVID-19 Analysis

As the current COVID-19 epidemic spreads the world and strongly influences society, governments and companies are resorting to creative applications of advanced technology to restrict spread and preserve economic opportunities. As the novel coronavirus continues to decimate the world, the World Health Organization and other health officials are consistently working to limit the spread of the virus. As employees from several companies begin working from home, it is crucial to ensure that they are not working in the office. The multichannel order management market is substantially affected due to the increasing pandemic situation of COVID-19 across the world. 

The global economy is facing unprecedented challenges from the COVID-19 crisis affecting millions with severe impacts on health, family, and poor financial conditions. For instance, in March 2020, the World Health Organization (WHO) announced the COVID-19 as a global pandemic resulting in several countries being under lockdown. The outbreak of the COVID-19 pandemic has resulted in the minimized businesses activities since the governments have enforced the lockdown till the next notification. Due to this, dependency on online businesses has growing significantly to provide necessary services to consumers. COVID-19 will have a long-term impact on the warehouse. As the virus propagated over the globe, it created a cascading effect. An infection or transit delay in one part of the world has a global influence, resulting in shutdowns owing to warehouse closures or missing or delayed supplies. 

As the virus spread, the global supply chain strained to keep up. The warehouse should manage different delivery choices as it transitions from choosing large cases for retail outlets to picking individual goods for end customers. Users are indeed demanding, but with the COVID-19 increasing eCommerce demand, the multichannel distribution trend will continue for a longer period. As a result, warehouses and distribution centers are searching for improved procedures, technology, and software to support multichannel distribution. Henceforth, increased demand for multichannel order management as it provides security and robustness to the data.

Market Dynamics

The major factors driving the growth of the multichannel order management market are the growing number of Internet users and growth in multichannel sales. However, the lack of technical expertise is expected to hinder the global market growth. Never the less, the emerging potential for online sales is likely to present lucrative growth opportunities for the vendors operating in the multi channel order management market.

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  Drivers

  
  

Growth in Multichannel Sales

The development of the multi-channel sales strategy implies that managers must seek convergence, or at the very least some degree of consistency, between the many channels. This technique may be used to promote the successful integration of worldwide channels into a single, dependable distribution system. The multichannel approach entails shifting the emphasis in the channel and shifting the emphasis from direct sales to professionals to direct sales to the end user. 

The multi-channel evolution appears to have enabled customers to shift from a sales function to a role as a source of individualized assistance in the domains of company growth, team management, salon promotions, and merchandising. The expansion of the multi-channel sales strategy implies that managers must seek convergence, or at the very least some degree of consistency, between the many channels. This technique may be used to promote the successful integration of worldwide channels into a single, dependable distribution system that eliminates all types of substitute products.

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  Restraints

  
  

Security and Privacy Concerns

Businesses have made a significant effort to earn customer trust in the usage of personal data. Data is a consumer currency. It may eventually cost a person significantly if their identity is stolen, not just in monetary terms but also in time spent having the issue straightened out and repairing any harm to their credit rating. Perhaps businesses should develop an information-saving plan that respects the value of consumer data to customers and the risk that consumers take by entrusting them with their data. Multichannel order management requires enterprises to address security and privacy concerns. 

They manage sensitive information that must be kept secure to avoid data breaches and theft, which may affect an organization's image. Unauthorized persons can compromise and access enterprise data through the internet. It is becoming a growing cause of concern for corporations. As a result, concerns about security and privacy are rising among businesses, and the multichannel order management industry is expected to decline throughout the projection period.

Value Chain Analysis

The global multichannel order management market has witnessed significant growth in the past decade due to technological changes and is expected to grow at a steady rate in the upcoming years. The value chain analysis of the multichannel order management market comprises four major levels: hardware/software providers, cloud vendors/service providers, system integrators, and end users.

Market Segmentation

The multichannel order management market has been classified based on component, deployment mode, organization size, vertical, and region.

Based on the component, the multichannel order management market has been segmented into solution, software, and service. The service segment is further classified into professional services, consulting services, integration & deployment services, training & support services, and managed services.

Based on the deployment mode, the multichannel order management market has been segmented into cloud and on-premises.

Based on the organization size, the multichannel order management market has been segmented into small and medium-sized enterprises (SMEs) and large enterprises.

Based on the vertical, the multichannel order management market has been segmented into retail, e-commerce, and wholesale, manufacturing, healthcare and life sciences, food and beverages, other verticals. The other segment is further divided into automotive and pharmaceuticals.

Based on regions, multichannel order management market has been segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

Global Multichannel Order Management Market, 2018–2027 (USD Billion)

Source: MRFR Analysis

Regional Analysis

Geographically, the multichannel order management market has been categorized into North America, Europe, the Asia-Pacific, the Middle East & Africa, and South America. North America is likely to be the dominant regional market due to the faster adoption of advanced technologies in developed countries in the region—the US, Canada, and Mexico.

This is mainly due to the region being one of the most technologically advanced regions with the presence of a large number of market players such as IBM Corporation (US), Oracle Corporation (US), Salesforce.com, inc. (US) and Brightpearl (US). Asia-Pacific is expected to advance at the highest CAGR during the forecast period due to the growing utilization of technologies. The growth of the regional market is expected to be influenced by the growing adoption of modern technologies and the increasing number of SMEs. The increasing technological adoption, focus on innovations obtained from R&D and technology, more IT organizations, and ongoing projects will boost the Asia-Pacific market.

Competitive Landscape

The global multichannel order management market has witnessed significant growth over the forecast period due to the growing demand for growing investment in advanced technologies, such as AI and ML, by the retail, e-commerce, and manufacturing sectors. There are several domestic, regional, and global players operating in the multichannel order management market who continuously strive to gain a significant share of the overall market. The key market participants are investing in research & development activities to drive organic growth and increase their market shares. In addition, these players are engaging in new touch point type development to expand and strengthen their existing touch point type portfolios and acquire new consumers

• IBM


• Oracle


• SAP


• Salesforce


• HCL Technologies


• Zoho


• Brightpearl


• Stitch Labs


• Selro


• Linnworks


• Vinculum


• Freestyle Solutions


• Aptean


• Etail Solutions


• SellerActive

IBM Corporation primarily follows an inorganic growth strategy. The company is increasing its productivity and output by building partnerships with tech giants and expanding into untapped markets. It also focuses on research and innovation and believes in continuous re-invention and transformation of its products and services. It provides solutions that are specific, customizable, and ensure customer satisfaction. It focuses on cognitive solutions, and its software solutions, which are also simultaneously being made available for cloud applications to provide new levels of innovation, are expected to bring in more revenue in the coming years.

Oracle Corporation follows both organic and inorganic growth approaches and focuses on enhancing its application, platform, and infrastructure segments. It considers partnerships and collaborations as crucial elements of its corporate strategy to enable innovation, increase customer base, and deploy products and services. Hence, the company is focused on delivering highly secure, automated, software-defined, intelligent platforms to its customers. Its strategic priorities include increasing the value of the network, accelerating the pace of innovation, and transforming its business model

The global multichannel order management market is characterized by the presence of several regional and local providers. Some of the key players in the multichannel order management market are IBM (US), Oracle (US), SAP (Germany), Salesforce (US), HCL Technologies (India), Zoho (India), Brightpearl (US), Stitch Labs (US), Freestyle Solutions (US), Aptean (US), Etail Solutions (US), SellerActive (US), Delhivery (India), Cloud Commerce Pro (England), QuickBooks Commerce (India), Unicommerce (India), SalesWarp (US), Contalog (India), Browntape (India), Selro (England), Linnworks (England), Vinculum (India), Multiorders (England), ManageEcom (India), Evanik (India), GeekSeller (US), SkuSuite (US), Newfold Digital (US), and EMERGE App (Singapore).

Recent Developments

In April 2023, a lot of customers in the supply chain planning space are going to be excited about the new features that Oracle has brought out in the Oracle Fusion Cloud Applications Suite, which it believes will enable them to speed up supply chain planning, increase operational efficiency and enhance financial accuracy. These updates included some improvements for planning, pricing as per usage and rebate management functionality for Oracle Fusion Cloud Supply Chain & Manufacturing (SCM), as well as enhancements in quote-to-cash processes in Oracle Fusion Applications.

Freestyle Software released Multichannel Order Manager (M.O.M.) Version 12 in April 2023. This latest version includes significant security enhancements and is among the first applications to receive certification under the more stringent PCI-S3 requirements.

Oracle unveiled new capabilities in its cloud application suite known as Oracle Fusion Cloud Application Suite in April 2023, aimed at helping customers with faster supply chain planning, better operational efficiency, and improved financial accuracy. Such changes have been reflected by new planning features, usage-based pricing rebate management for Oracle Fusion cloud SCM, and enhancements for quote-to-cash flow through Oracle Fusion Applications.

Ecom Express launched Warehouse Management Solutions (WMS) and Order Management Solutions (OMS), Ecom Magnum, as a service offering for sellers in February 2023. The new SaaS offering is ideal for online sellers looking for order and warehouse management solutions integrated with e-marketplaces.

April 2023: ChannelGrabber released a brand update of their multichannel order management software following their renaming. Through this rebranding, ChannelGrabber emphasizes its ongoing commitment to deliver next-generation e-commerce inventory software and multichannel order management systems to its customers.

February 2023: Ecom Express launched Ecom Magnum as a service offering comprising Warehouse Management Solutions (WMS) and Order Management Solutions (OMS), targeting sellers’ needs. The new SaaS offering is suitable for online sellers looking for order and warehouse management solutions integrated with e-marketplaces.

In February 2021, SAP changed the shopping experience into a fantastic one for its customers such that Virgin Megastore and Sundiro Honda were incorporated with the company’s SAP Commerce Cloud solution meant to improve clients’ e-commerce encounters.

This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2027. For this analysis, MRFR segmented the global multichannel order management market on components, deployment mode, organization size, vertical, and region.

Based on Component:

• Solution


• Software


• Services
  
  
  
  • Professional Services
  
  
  • Consulting Services
  
  
  • Integration & Deployment Services
  
  
  • Training & Support Services
  
  
  • Managed Services
  
  
  
  

Based on the Deployment Mode:

• Cloud


• On-Premises

Based on Organization Size:

• Large Enterprises


• Small and Medium-Sized Enterprises (SMEs)


• Based on Vertical:


• Retail, e-commerce, and Wholesale


• Manufacturing


• Healthcare & Life Sciences


• Food & Beverages


• Other Verticals (Automotive and Pharmaceuticals)

By Region

• North America


• Europe


• Asia-Pacific


• Middle East & Africa


• South America