Amazon Order Management System (2025 Guide): How It Works, Tools, Metrics & Automation Solutions

Order management is the backbone of every Amazon seller's success. The Amazon order management system (AOMS) is a powerful partner for processing orders, managing stock, and providing customer support. By the year 2025, a deep understanding of the Amazon order management system and its effective application will be a decisive factor for sellers in monitoring their positions in the highly dynamic e-commerce marketplace. The guide will not only cover the operations of the Amazon order management system but also discuss the available tools, key metrics, and the role of e-commerce automation in the scaling of your business.

If the right system is adopted, sellers can expect reduced mistakes, increased efficiencies in operation, and better customer relationships. Amazon's order management system takes care of every step from the placing of orders to their fulfillment, assuring that sellers will not only meet customers’ expectations but also keep the workflow under control. If you are a beginner or an experienced seller on Amazon, familiarizing yourself with the system’s intricacies is going to be very important for sustaining the business in 2025 and later.

In this guide, we will take a close look at how the Amazon order management system works, what tools are accessible to sellers, and the role of automation as a prerequisite for business scaling. Additionally, we will compare the features of Amazon’s in-house order management with the ones from third parties and thus equip you with the know-how in making judicious choices for your enterprise.

Key Takeaways:

What Is an Amazon Order Management System?

An Amazon order management system is the tool which empowers in making the whole Amazon order fulfillment process easy for sellers to manage from the time when the order is received until the product is shipped and any returns are processed. The system takes care of a bunch of tasks related to the handling of the orders; hence, the sellers will be able to concentrate on their business expansion and not be bothered by manual work. The Amazon order processing system gives a guarantee that all orders are delivered within the set time, and it has also been updating the sellers about the stock, shipping, and correspondences with the customers.

The main function of the Amazon order management system is to enable the sellers to process orders correctly and with minimum time. The moment a customer orders, the system first checks the payment, then confirms if the product is in stock and informs the seller. In the case of Fulfilled by Amazon (FBA) sellers, Amazon's system does the whole order picking, packing, and shipping. For the sellers using Fulfilled by Merchant (FBM) method, by the system, the seller gets notified and then takes care of the fulfillment process. The system also provides the customers with updates through tracking information and manages returns as per Amazon’s rules.

To the online sellers of today, it is necessary to follow a standardized order processing workflow in their Amazon operations. It is not easy to keep up with the high order volumes without sacrificing accuracy and customer satisfaction. The Amazon order management system has come to the rescue of sellers by engaging them with the usage of automated tools that make it easier to trace the order’s status, control the stock, and solve the issues the customers have, fast. The simpler the workflow the less likely it is that mistakes occur and the quicker the business becomes scalable.

How Automation Improves the Amazon Order Management System

The get order management system at Amazon makes heavy use of automation, drastically improving the efficiency of certain processes. By introducing automation into the picture, the sellers will no longer have to do the manual work that is required for the repeating tasks such as order routing, inventory management, customer communication, and multichannel workflows. With that, the sellers will no longer have routine tasks taking up their time and they can thus devote their time to business growth and customer engagement.

One of the most significant advantages of automation is that it synchronizes the inventory of different selling platforms with the help of the order management system. This is particularly helpful for sellers who sell on multiple marketplaces like eBay or Walmart as automation tools are taking care that the inventory is being updated in real-time on all the platforms, which is a really good thing since it prevents the seller from either selling too much or running out of stock. Furthermore, by processing orders automatically the system will be able to direct the orders either to FBA or FBM according to the available stock and will be able to efficiently manage the sales across the borders as well.

When the seller is using an Amazon seller management software, the automated features like order processing and customer notifications ensure that the orders are handled quick and that the customers get timely updates. Different kinds of customer communication like order confirmations, shipping notifications, and even tracking information can be sent automatically by the systems. In this way, the sellers not only cut down on the chances of errors happening but also enhance the customer's overall experience.

It is true that through automation the sellers can keep a better check on their inventory. The stock levels are updated automatically which gives the system a clear picture of what is on hand and it will, therefore, stop customers from placing orders for items that are already sold out. Besides that, automation can be a great help in the area of returns and exchanges which will very much lead to a smooth customer service experience.

How the Amazon Order Management System Works

The Amazon order management system is designed with a precise and expeditious workflow, which guarantees the proper and timely execution of orders, thus, the following is a step-by-step illustration of how the system operates:

• Order Placement: As soon as a customer puts an order on the Amazon website, the process initiates. The order can be for any item sold on Amazon’s marketplace.
• Amazon Verification: The moment an order is placed, Amazon checks the details. Payment confirmation, shipping address validation, and inventory availability checking are all part of the verification process. The system proceeds to the next step if everything is fine.
• Seller Notification: Upon verification, the seller gets notified through the Amazon seller dashboard or Amazon seller management software. Product ordered, customer shipping address, and any particular instructions are among the details included in this notification.
• Picking: If the seller uses FBA, Amazon's fulfillment center picks the product automatically from its warehouse. The picking of the item from the seller's own stock is the responsibility of the seller for FBM sellers.
• Packing: After picking, the item is packed and ready for shipment. If the seller uses FBA, Amazon does the packing and makes sure the product is safely prepared for delivery. The seller does the packing for an FBM seller, but it is still logged in the system for uniformity.
• Shipping: The product is shipped to the customer after packing. If the seller uses FBA, Amazon takes care of the shipping. The seller is responsible for shipping the product and keeping the tracking information updated in the case of FBM sellers.
• Delivery: The customer receives the product. The system monitors the delivery status, verifying that the product is delivered at the right time. The seller can solve any problems through the system in case they arise.
• Return Handling: If the customer decides to return the product, the Amazon order management system provides a framework for handling returns. Returns are processed according to Amazon's policies, and the seller is notified when a return is initiated. The system helps manage the return process, ensuring that the seller can quickly process refunds or exchanges.

Featured Article: For ins and outs of Amazon read the article to stay ahead of the game: The Complete Guide to Amazon Business Models (2026): Types, Pros, Cons & Which One Is Best For You

Key Amazon Order Management Metrics Every Seller Must Track

Tracking the right KPIs is essential for Amazon sellers. It allows them to know how effective their Amazon order management systems are. These metrics are like a compass for sellers that can point out the problems in their system, measure their success, and assist in making data-based decisions. There are several metrics that are very important to keep an eye on, like:

• Order Defect Rate (ODR): This measuring point shows how many orders have problems represented in a percentage, such as negative feedback, A-to-Z claims or chargebacks. A small ODR is associated with great seller performance and high customer satisfaction.
• Late Shipment Rate: This rate shows the percentage of the total that were delivered later than the expected date. It is important for both customer satisfaction and avoiding Amazon penalties to have low late shipment rates.
• Return Rate: This percentage indicates how many orders were returned by customers. A high return rate might be a signal for product quality problems, errors in the description or misalignment of customer expectations and product attributes.
• Cancellation Rate: This measures the percentage of orders that are canceled prior to shipment. It is crucial to keep this rate very low as this might otherwise give a negative image of your store on Amazon.
• Valid Tracking Rate: The valid tracking rate shows how many orders have valid tracking numbers in percentages. It is thus the main pointer of shipping reliability and customer satisfaction.
• Buyer Messages: The number of messages from customers can signal issues with the order process. Monitoring this metric helps identify areas where customer communication can be improved.
• Processing Time: This is the total time from when an order has been received to when it has been shipped. Fast processing times lead to better customer reviews and lower chances of order cancellation.

Amazon Order Management System vs Third-Party Seller Management Software

A lot of Amazon sellers are in doubt if they should stick to Amazon’s native order management system or use a third-party software to handle their orders. Each option has its benefits and drawbacks and the decision really depends on the seller's requirements. Here’s a comparison of Amazon's system and other tools based on several key factors:

Feature	Amazon Order Management System	Third-Party Seller Management Software
Cost	Free (for basic functionality)	Varies (typically monthly subscription)
Features	Basic order management, inventory tracking, returns handling	Advanced features, including multichannel selling, detailed reporting, automation
Integrations	Limited integrations with third-party platforms	Extensive integrations with various marketplaces and tools
Automation	Basic automation (shipping updates, tracking info)	Advanced automation (order routing, inventory sync, multichannel support)
Scalability	Suitable for small to mid-sized businesses	Highly scalable for large businesses and multichannel sellers
Marketplace Order Management	Primarily Amazon-focused	Supports multiple marketplaces (eBay, Walmart, Shopify, etc.)

Choosing the Right Amazon Order Management System for Your Business Model

The very first thing, when picking up the proper Amazon order management system for the business, is to look at the business needs that are pretty much unique. There are different systems on the market, which are catering to different kinds of sellers. No matter if you are a novice just starting up on Amazon or a seller whose operations are growing and has to manage multiple sales channels, the right system choice is vital for thus far efficiency and scalability.

Here is a model to assist you in finding the perfect Amazon order management system according to your particular business type:

For Beginners

The order management system of Amazon made available to all new sellers with a small catalog and lowest volume of sales is a great help to the sellers. It is a free native system which is easy to use and has all the necessary tools for processing orders, keeping track of inventory, and communicating with customers, that is, basic tools of order management. In this phase, there might not be any need for automation tools as your business can probably be operated without extensive software.

For Growing Sellers

With the increase in your sales, order volume and in the same manner the necessity to an advanced Amazon seller management software is required. Third-party systems come with superior automation, offering more reporting, and integration with other sales channels. Not only do these tools simplify multiple channel workflows, but they also help in inventory optimization and enhancing customer service.

For Private-Label Brands

Private-label brands generally have a lot more control over their products and thus need strong systems to assist them in managing inventory, customer orders, and also managing returns. For such sellers it is a great advantage to integrate sophisticated Amazon order management system with their marketing, product research, and pricing aspects of business management. Third-party software that allows selling on multiple channels and provides extensive reporting can support private-label brands to grow their operations.

For High-Volume Sellers

Order management systems that are capable of dealing with high volumes of orders and intricate workflows are a necessity for high-volume sellers. It is imperative that these systems integrate with FBA, supply automated inventory updates, and offer multichannel management. For these sellers, utilizing a third-party Amazon order management system featuring highly automated processes and scalability will allow them to satisfymakers without giving up quality or efficiency.

For Multi-Channel Sellers

Marketplace trappers need an order management system that not only routes orders, synchronizes inventory and provides reporting but also does all these tasks across different platforms in an imperceptible way. The nature of systems designed for multichannel selling, such as those that support Amazon, eBay, Walmart, and Shopify automation, is that they are perfect. A third-party seller management software that connects with all these platforms and offers automation tools for order processing, inventory updates, and shipping will surely boost the efficiency of your operations.

Your business's complexity, volume, and available resources are the key factors in making the right choice of system. At first, it might be enough to start with Amazon's native order management system but as your business grows, switching to a more sophisticated third-party system will be the key to scaling effectively and efficiently.

Final Thoughts

The order management system of Amazon is the most essential part of an Amazon business that is successful at all. It gives the sellers the power to handle orders in an efficient way, oversee inventory and keep the whole operation running smoothly. In 2025, the process of automation and incorporation of third-party software have become crucial for a company to be able to satisfy the increasing demands of the e-commerce market.

It does not matter if you are a novice or a seasoned seller still, it is very important to know the working of the Amazon order management system and the usage of automation as a tool which will put you on top of the competition. You can eliminate the complexities in your operations, give more pleasure to your customers and thereby increase your profits by keeping track of vital measures, making routine tasks automatic and selecting suitable tools for your business.

While looking at your choices, do not forget that every business is different and the most suitable system for you will be determined by your business model, the number of orders, and the goals for growth. If you keep on cutting down the order management processes, you can position your company for a long time on amazon’s success.

FAQs

Can I make $1000 a month selling on Amazon?

Absolutely, the scenario of making $1000 per month through Amazon selling is possible, but it all depends on the products you sell and your sales strategy. It is very likely that a good system will allow you to manage your orders and operations better and will open up paths to your success.

What is Amazon order management?

The term Amazon order management is used for the whole process of processing an order right from placement to delivery. It covers different areas such as inventory management, order processing, shipping, and returns handling. The Amazon order management system takes care of all these functions through automation and simplification.

How does Amazon order management work?

Amazon order management works by taking over the steps involved in an order's placement, verification, fulfillment, and delivery. It monitors each order from its beginning to its end, thereby making sure that the customers get their products in the promised time and that the inventory levels are adjusted accordingly.

How to manage Amazon orders?

Amazon orders can be managed using the Amazon order management system. This system provides you with the ability to monitor orders, modify stock levels, chat with customers, and take care of returns. Additionally, third-party software can be a big help in achieving automation and selling through multiple channels..

How much does it cost to buy an Amazon route?

The amount of money needed to acquire an Amazon route is usually based on the model and the specific arrangements involved. Primarily, it means purchasing routes for the last-mile delivery of independent contractors working under Amazon's delivery network. Hence, the price might differ a lot, depending on the location and the size of the route.

How do I manage my orders on Amazon?

Management of orders on Amazon can be done through the seller dashboard or the software intended for Amazon seller management. These tools facilitate tracking of order statuses, updating of the inventory, handling of customer inquiries, and processing of returns.

What tools are used for Amazon order management?

The main tool used in Amazon order management is the Amazon order management system. Besides, there are various third-party Amazon seller management software that provide additional capabilities such as automation, multichannel support, and advanced reporting.

What is the difference between FBA and FBM order management?

FBA (Fulfilled by Amazon) and FBM (Fulfilled by Merchant) differ in the method of order fulfillment. Under FBA, Amazon is responsible for everything--from storing the product in their warehouse to packing and shipping it. On the other hand, the seller is in charge of the whole process with FBM. However, both can be tracked through the Amazon order management system.

Can Amazon orders be managed automatically?

Yes, Amazon order management can be fully automated if one has the right software. For example, with the use of Amazon seller management software, there can be automatic order routing, inventory syncing, customer communication, and return handling, all of which will save time and minimize errors.