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Compared to fixed virtual window algorithm (FVWA), the dynamic virtual window algorithm (DVWA) determines the length of each virtual container according to the sizes of goods of each order, which saves space of virtual containers and improves the picking efficiency. However, the interval of consecutive goods caused by dispensers on conveyor can not be eliminated by DVWA, which limits a further improvement of picking efficiency. In order to solve this problem, a compressible virtual window algorithm (CVWA) is presented. It not only inherits the merit of DVWA but also compresses the length of virtual containers without congestion of order accumulation by advancing the beginning time of order picking and reasonably coordinating the pace of order accumulation. The simulation result proves that the picking efficiency of automated sorting system is greatly improved by CVWA.