- See more at: http://blogtimenow.com/blogging/automatically-redirect-blogger-blog-another-blog-website/#sthash.CjzeOUZw.dpuf On-Demand eCommerce Blog | Dynamic Merchandising by OrderDynamics: August 2009

An Integrated Order Management System (OMS) Key to Avoiding Lost Revenue When Payment Brands Go Down (Paypal, Authorize.NET recently)

With 2 major payment providers having issues in the past 4 weeks to the day (Authorize.NET July 3rd 2009 and PayPal August 3rd 2009), many online retailers and merchants that rely on these systems were effectively out of business, unable to take orders, and losing revenue.

Although failures like this are considered unacceptable to businesses and executives, there are ways retailers can avoid being impacted by these types of failures. The solution rests in the capabilities of the eCommerce platform and its Order Management System (OMS).

Order Management Systems (OMS) provide software to facilitate the capturing and processing of eCommerce orders. When this system is part of your overall eCommerce platform (same eCommerce vendor platform driving the frontend presentation and backend OMS) you get a very robust and flexible foundation to power almost all online retailing needs. For example, eMail Marketing, Customer Relationship Management (CRM), Fulfillment and Inventory Control, and Advanced Merchandising Rules. This type of "end-to-end" solution helps retailers drive more value from their eCommerce investment by reducing complexities, manual tasks, and less systems / vendors to manage. Obviously, we believe an on-demand or SaaS eCommerce platform is the way of the future for most retailers vs. purchasing and customizing software.

In addition, most platform providers (with an integrated backend OMS) will automatically capture order information prior to posting to the payment provider. This allows for steps to occur before fulfillment like address validation and correction, fraud detection, pre-authorization, etc. This also takes care of two critical problems if payment providers fail. 1. The user is oblivious and can place their order on your website 2. Retailers can quickly and easily resume order processing once the gateway has returned to normal.

As is the case with PayPal and Google Checkout, the shopper has to leave the merchant's website in order to complete their purchase - something not required for other alternative payment brands or traditional gateways like Authorize.NET. However, the eCommerce platform should fully capture the order first and provide logic that informs the user of a payment gateway problem then invite them to use an alternative method or be notified once the gateway has returned.

OrderDynamics takes this a step further and automatically creates a Customer Service Case (ticket) for all abandoned PayPal or Google Checkout orders so retailers can proactively follow-up with these shoppers and convert the sale. This process can be tailored to include an email back to the shopper after X hours inviting them to come back and complete their purchase with a coupon or other incentives.

So when you're evaluating a new eCommerce platform provider it is important to look deeper than the frontend design or "flashy websites" and get into the details of how the platform technology itself will enable a robust, scalable, and cost effective environment for years to come.

See related post: Authorize.NET Outage Does Gateway Downtime Equal eCommerce Disaster?
Learn more about: OrderDynamics On-Demand eCommerce Platform