NetSuite buys order management vendor OrderMotion

OrderMotion’s team will join the e-commerce software provider.

May 8, 2013 —- NetSuite Inc., which sells Internet-based e-commerce and business operations software, has bought OrderMotion Inc. NetSuite will use the acquired company’s staff and technology to beef up the order management services it provides retailers through its SuiteCommerce e-commerce platform.

NetSuite did not disclose the terms of the deal, which it says closed last Friday.

OrderMotion’s order management technology is used by three e-retailers ranked in the 2013 edition of Internet Retailer’s Top 500 Guide: CPO Commerce Inc. (No. 248), (No. 430) and (No. 473). Four e-retailers listed in the 2012 Second 500 Guide also report using OrderMotion.

OrderMotion has integrated its software with the e-commerce platforms operated by eBay Inc.’s Magento unit and Demandware Inc., NetSuite competitors. Andy Lloyd, NetSuite’s general manager of commerce products, says retailers on those platforms will be able to continue to use the OrderMotion product without having to move to NetSuite’s e-commerce platform. “We are perfectly happy to provide [the OrderMotion product] to Magento and Demandware retailers on an ongoing basis,” he says. “But if they have broader functional needs, we believe NetSuite will be the best.”

Lloyd says the acquisition will help bring focus to NetSuite’s order management capabilities. OrderMotion spends “24/7 thinking about order management. That’s a huge asset to us going forward,” he says. Robert Cohen, OrderMotion’s director of alliances, will now be in charge of NetSuite’s order management services within the retail division, Lloyd says.

The acquisition will help NetSuite plug gaps in NetSuite’s order management services, specifically in being able to work with and modify recurring orders. For example, while current NetSuite clients have been able to manage recurring orders on the NetSuite platform, it required customization work. The OrderMotion technology has such capabilities built in, Lloyd says.

The combined services could make NetSuite a stronger e-commerce contender, says Kerry Martin, senior consultant at ecommerce consultancy, FitForCommerce. “NetSuite, being a pioneer in the software-as-a-service marketplace and focused on the enterprise resource planning side of the business, together with OrderMotion, a leader in direct-to-consumer order management, could bring a solid solution that extends both companies’ footprint in the industry, if they can integrate their solution offerings,” she says.

NetSuite will move OrderMotion staff to work in NetSuite’s Boston office, which is moving to a new location. NetSuite declined to say how many staff it will employ. OrderMotion’s own offices were based just outside Boston.

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