All types of businesses use ERP Platforms to manage their activities and processes. ERP eCommerce software solutions are designed to manage day-to-day operations such as accounting, procurement, inventory, or other similar processes. We all know a lot about e-commerce. Many people shop online a lot.
E-commerce has revolutionized the way businesses communicate and operate with customers. Many brick-and-mortar shops have started their online stores to be able to sell and reduce expenses. Retailers should integrate ERP and eCommerce to reap the system's full benefits and ensure smooth operations.
Managers and business people are increasingly considering ERP eCommerce integration as the business world becomes more automated. How does this tie into your online business? Learn more about ERP eCommerce Integration and how it can help your business!
What is an ERP System?
ERP (also known as Enterprise Resource Planning) is an ERP software that allows you to manage your business and do all your daily tasks from one location. Your ERP can manage inventory, risk management, and other business operations. Shopify and Magento are becoming increasingly popular business platforms.
An eCommerce ERP system is no different than a standard ERP system. It has all of the features required to run an online business. It is also possible to integrate it with other eCommerce tools. This tool can help you take your business from novice to success and allow you to continue growing in the ever-changing internet environment. ERP systems can help you reduce administrative and operational expenses by around 22%.
Top ERP Modules & Features
Different ERP systems offer different features. It is critical to select the best ERP system for eCommerce. These features will make your eCommerce business flourish and should be included in your eCommerce ERP.
Accounting
Finances are the foundation of any for-profit company. You need a reliable financial management tool to keep track of your accounting processes. You should already be using accounting software, which can be integrated with the best eCommerce ERP software. You can keep your finger on the finances' pulse by tracking inventory, knowing when to order more, communicating with vendors, and ensuring that your customers pay you on time.
Inventory
It is important to keep track of your inventory to fulfill orders quickly. You can check your inventory in a brick-and-mortar store to see if you have a shortage and order more. When you shop online, you don't always see that you have enough of something. You won't be worried about running out of products or ordering more than you can sell with a top ERP system.
Shipping
The speed and quality of your shipping can determine your online business's success. An eCommerce ERP software will provide you with a comprehensive view of your company's shipping process.
Many companies outsource shipping, losing all control. ERP eCommerce integration can help you understand how shipping works. Understanding the shipping process will help you identify bottlenecks and fix them quickly.
CRM System
Your business's relationship with customers is crucial. Foot traffic, tourists, and one-time customers are all advantages of brick-and-mortar stores. Online shoppers are less likely to buy on the spur of the moment. Online shoppers are tech-savvy and will compare the options before making a final decision. It is important to focus on customer relations management.
Communication is another important aspect to remember. When you own a physical shop, communication is simple. Customers can visit the store to return products, try on items, or chat. An eCommerce business requires you to keep track of all customer reviews, respond to emails and messages promptly, and prioritize clients' needs. If the customer cannot physically contact you, it might prove more difficult than you thought.
eCommerce ERP: Advantages
Higher Productivity
An ERP system should make your life easier. To track your business, an eCommerce ERP system should not have ten tabs open.
Instead, it should provide one tab containing all the required information. When everything is in one place, your productivity will skyrocket. Instead of searching for information and putting it together, you can concentrate on activities that bring in profit, such as customer service and marketing.
Consolidation
Multi-channel selling is one of the best ways to promote brand awareness and sales. Multi-channel selling allows you to reach a larger audience online and increase your sales significantly. This model has its drawbacks. It cannot be easy to track all sales and use analytics effectively. By combining data from all sales channels, you can gain valuable insights into your business. With accurate statistics and analysis, you can plan for your company's future. Then, concentrate on the tools that will assist you in growing.
Visualization
It is important to visualize data when working with analytics and statistics. Without context, numbers and figures can be meaningless. You can motivate your employees and colleagues by presenting them visually. This will assist you in determining what is and is not working. This allows you to see your company's problems and challenges and helps you develop solutions. Seeing your numbers grow before your eyes can also be motivating.
Time & Money Savings
Although it may appear counterintuitive, the best eCommerce ERP system is a significant investment for some businesses. The long-term returns from the software are well worth it. You can save a lot of time by automating certain tasks in your business. This will allow you to spend more time on important tasks, leading to profits faster than you might think.
Improved Customer Service
As an optional feature, many eCommerce ERP software programmes include a CRM system. A CRM system can assist you in getting closer to your customers. You can use analytics data to communicate directly with customers. With all of the customer data at your disposal, you can personalize your marketing to customers. This will enable you to boost sales and customer loyalty. You can notify customers when their packages are about to arrive using tools like shipment tracking. This will aid in the development of trust between the brand and its customers.
What is an ERP Integrated Portal?
ERP software makes it easier to manage your e-commerce website and streamlines the order process. Here's an example. In the new age of purchasing, transparency is more important than ever. ERP ecommerce integration keeps your customer in the loop about the sales process. The software benefits your business because inventory data is accurate and well-organized throughout sales. Each step is also automated. An ERP solution allows your e-commerce company to seamlessly integrate multiple software programs and applications.
ERP ecommerce Integration: Which ERP Systems are Compatible?
Many businesses are hesitant to incorporate such software into their daily processes and procedures due to the risk of business interruption. Most ERP software systems can be integrated with existing software to simplify the transition and minimize downtime.
What are the Key Features of ERP-Integrated ecommerce?
If your ERP can integrate with an ecommerce solution, choosing that solution is the next step. Choosing the right ERP can be overwhelming with so many choices. These are some key points to keep in mind as you do your research.
- Get Rid of the Middleware to Get Real-time and Accurate Data to Your Web Shop: Your system should enable you to upload products directly to the ERP and then instantly and automatically push them to your store instantly and automatically. Eliminating the middleware means that maintenance is done in one system, requiring fewer IT resources and costs. This can dramatically reduce your total cost of ownership (TCO).
- Scale With Ease and Increase Revenue Opportunities: Your ERP e-commerce system should be able to meet any challenge quickly. Your tooling should be able to facilitate future-proof strategies, whether you're adding new brands or expanding into new markets.
- Customer Experiences that Are Meaningful and Seamless Through Omnichannel: Customers who know they can access their account information 24/7 and make purchases anytime and that everything is up-to-date and accurate are more likely to use your online sales channel. E-commerce integrated with ERP is not a good option. It can make the customer journey more complicated.
ERP-Integrated ecommerce Delivers Better Customer Experience
E-commerce has seen a rise in customer expectations due to both a global pandemic and wider e commerce adoption. Even for businesses, building a web store is now more about customer experience (CX). Many businesses find that ERP-integrated E-Commerce can help them save time and improve their customer experience. The business type and software you integrate with will determine the specific functions ERP software can help with. Most ERP software can optimize:
Order Placing: ERP software can assist with order placement by automatically setting up the next steps, such as creating shipping labels or calculating shipping costs.
Customer Updates: Automatic communications to your customer are made possible by integrating ERP software into your ecommerce platform. This includes when an order has been received, the item has been shipped, or if there has been a delay in shipping.
Simplify the Changes: While online sales can be labor-intensive, ERP software can help to manage prices across product categories.
Inventory Details: An ERP system can automatically change product information or inventory counts when an item is bought or altered. This keeps customers in the loop and prevents them from placing orders on out-of-stock items.
Your online business will run more smoothly if these systems are automated through ERP integration. This reduces the possibility that customers will order the wrong product. It also decreases the time your team (or any other) spends fixing errors or answering simple questions. This allows you to focus on driving growth within your company.
Why Should You Integrate an eCommerce Website with ERP?
Businesses don't usually consider integrating their eCommerce website with ERP because they fear it will cause disruption to their business and add expense. The cost of integrating customer experience and business operations is well worth it. Integrating E-commerce and ERP can help increase efficiency and productivity in your company.
All important data, such as inventory management, customers, orders, shipping, and order information, can be linked to different systems. Without integration, you would need to enter sales orders into the ERP system manually. This would be time-consuming and cumbersome. Once your e-commerce site has been integrated with the ERP system, all information and data are automatically shared between the systems.
This gives you more time to be productive. Manual adjustments to your inventory system, such as reducing inventory after a sale, can also lead to mistakes like overselling. This means that you have not reduced your inventory properly and have taken more orders than your inventory. The likelihood of making mistakes when processes aren't automated is high.
Let's look at the most common errors when information is separated in different systems.
- Stock levels that are not correct
- Incorrect or incomplete shipping address
- Information about products that is inaccurate, incomplete, or missing
In a nutshell: Without an eCommerce ERP integration, your customers could be dissatisfied and inefficient processes could lead to a loss of reputation.
Read More: Ecommerce ERP: What Is It?
The Basics of ERP and E-Commerce Integration
There are many options for integrating your ecommerce site with your ERP software. These are the factors to consider before deciding on a plugin or vendor to integrate your systems. All actions on your ecommerce website are reflected within your ERP solution as the bidirectional information flows. This will ensure that your orders and inventory are always up-to-date.
This information could include the following details:
- To ensure that your order is shipped without any errors, you can provide details on the web, such as the items and quantities. The relevant inventory adjustment will also be made.
- Update existing customer information and enter contact details.
- You will need payment information to ensure money is deposited in your bank.
- Provide a detailed shipping address to ensure the product arrives at the right address.
You can ensure that all information is updated in your ERP system and any gaps are filled. This will allow you to reflect the changes on your ecommerce site.
- Update details on new and discontinued products so your e-commerce site shows only the currently available products.
- You can update product and item data so your customers and employees always see the correct product information.
- Your e-commerce store automatically updates inventory information to display the correct amount of products. Customers will not be disappointed by stock-out notices or your selling products you don't have in stock. These updates might be necessary due to sales in your physical store or vendor issues.
- Both your systems immediately reflect any changes in the prices of products. This occurs when the exchange rate or supplier price changes. This helps you manage promotions, prices, and sales across your company.
This means that when eCommerce and ERP software are integrated, both software solutions can be found on one page.
Why Do B2B Companies Prefer ERP-Integrated ecommerce?
ERP solutions can be expensive. They often require communication between channels and entities. This includes accounts, data management, product and customer service departments, and thorough communication. This is why enterprise operations have tended to choose such solutions in the past - high sales velocity and automated processes between these functions make it easy.
In the last two years, there has been a shift in how companies choose to invest their resources. B2B companies that deal with large inventory quantities and depend on customer loyalty need a new approach to grow. ERP integrated ecommerce can help you ensure your customers can place orders whenever they want and offer innovative ways to improve and retain your sales.
ERP-integrated ecommerce is a great solution for B2B businesses with difficulty navigating unique pricing arrangements, thousands upon thousands of product SKUs, and workforce management.
ERP Integration Advantages with an E-Commerce Storefront
Integration has many benefits, but the most important benefit is that information is not siloed or inconsistent. No matter what system you use, your details will remain consistent. Let's take a look at the benefits in more detail.
1. Data Redundancy, Human Intervention, and the Possibility of Errors Are Minimized
Integrating your online store with an ERP solution gives the ERP system access to all online orders, payment information, shipping information, customer details, etc. Like the above, you can update your e-commerce store's inventory levels and products by entering the details into your ERP system's inventory management module. This will allow you to avoid human effort and manual data entry and minimize errors and redundant data.
2. Lowers Operating costs
Customers can view real-time ERP software information on their website. This allows them to see the status of their orders and track their shipments using tracking numbers. Automatic data updates ensure no errors, re-works, or orders go wrong (ex., overselling). These factors all help to reduce the cost of business operations.
3. Increases Efficiency and Productivity
The integration of the systems will result in even more efficient business processes. This will reduce the need for human intervention in these processes. Orders placed online are immediately sent to the ERP. ERP users in the back office can track orders quickly and easily and then process them further. The integrated eCommerce ERP software can help reduce time to market or accelerate the fulfillment of orders.
4. Inventory Costs are Reduced
Your ERP system updates all information online about sales immediately. This means that your inventory also gets updated. The ERP can project sales for the following month or quarter based on the current sales. This provides the inventory department with current and up-to-date information about inventory levels and what might be required to meet customer demand in the immediate future. This information will allow them to plan more efficiently and decrease inventory costs.
5. Get More Shipping Options
You can improve your shipping service by integrating your online shop with your ERP. Customers can choose their preferred shipping method regardless of the delivery time, charges, handling requirements, etc. The integration allows for the smooth and efficient shipping of orders to different addresses worldwide.
6. Increased Customer Satisfaction
Customers can track their orders and find out the availability of certain products on the e-commerce website if they have the most current product information. They feel great satisfaction. You are also better positioned to offer exceptional customer service because all your information is up-to-date, and you have more customer options. This greatly improves customer satisfaction and increases loyalty to your business.
7. Increased Trust and Credibility
Attracting new customers is easy. However, it isn't easy to keep them returning for more. You must build trust with your customers and demonstrate your trustworthiness to retain them. It is important to keep your promises. Without that, your reputation will be damaged, and your business may fail.
Suppose there is greater transparency in the purchasing process, and customers are provided with accurate and reliable information about the transaction. In that case, they will be more inclined to purchase from you again.
This also allows you to free up your resources to attend to minor customer inquiries and allows them to concentrate on finding new areas of improvement and growth.
8. ERP, Generates Financial Reports
The ERP system generates a variety of financial reports. The eCommerce site generates sales reports. By integrating ERP with your online portal, you can quickly generate financial documents such as cash flow, trial balance, and profit and loss statements. These statements will help you understand your financial information.
9. Better Business Management
Integrating your ERP system and your online shopfront will allow you to have greater control over your business, enabling you to grow your business.
ERP-Integrated E-Commerce: Growth for the Future
Your online business can thrive if you feel ready to implement an ERP solution. An integrated ERP solution will allow you to increase your online sales without increasing the workload of your employees.
Future-proof growth requires future-proof solutions. ERP-integrated eCommerce is the solution. Your customers and prospects will feel more confident in their online shopping experience, which will help them build or strengthen their relationships with you.
Moving Forward
ERP eCommerce integration will continue to be an important part of the future. This question has a clear answer: yes. The total market share for online retail sales was higher than general merchandise in a study by the United States Commerce Department. This likely means that people are shopping online more often than ever before. While some purchases may need to be made in person, others can be made online. However, as technology improves, it is easier for users to make larger purchases online.
Last words
Whether you are selling products or services, ERP software for eCommerce can help no matter what your eCommerce business model is. The best solution will simplify your work by giving you a clear overview of all processes, analyzing and gathering important data, and keeping everything in one place. Do not hesitate to improve your business toolset by integrating ERP and eCommerce.
You have now seen the tremendous benefits of integrating your eCommerce website with your ERP. It is time for your company to reap these benefits. This integration will allow you to see the results of your customer service and business operations.
