An ERP eCommerce integration is a must if you don't already have one. Companies that manually update data or do not sync are wasting money. Automation can boost productivity, speed up processes, and even increase revenue.
ERP e-commerce integration is becoming increasingly popular among B2B companies looking to establish an online sales channel. For most B2B businesses, functional ERPs enable different business management systems to collaborate. It enables smooth back-office functions such as product management, catalog management, information technology (IT), and warehouse/stock management.
- ERP stands for enterprise resource planning. ERP stands for enterprise resource planning. It is software that assists in various business tasks.
- ERP software is always more effective with complete, accurate data from various sources.
- ERPs are a great option for Ecommerce businesses. They can be used to manage inventory, customer experience, and accounting. ERP and Ecommerce integration allows you to combine these services.
- Businesses get the most out of ERP and Ecommerce integration by including as many data sources as possible.
- Arion ERP is an Ecommerce-focused cloud-based data integration solution ideal for maximizing your ERP software.
Effective ERP and Ecommerce integration means ensuring your online retail business takes advantage of every aspect of your enterprise resource planning (ERP) tools. Your ERP collects digital information about your company, including financial and inventory management. These data can provide insight that could help boost sales and drive marketing campaigns.
ERP Explained in a Brief
An ERP system is a piece of enterprise software that performs key business tasks, usually by achieving the synchronization or integration of various sources of business data.
Some organizations may use ERP software to manage accounting and other financial information. They might also collect sales data, wages, and costs. Reports, forecasts, and budgets may be created from the resulting data.
Other ERP tools may be needed to link with logistics partners. This is very useful for Ecommerce businesses that need to monitor inventory levels closely or get real-time updates from warehouse management solutions. Ecommerce and ERP integration is about integrating as much business information as possible into your ERP. This will make it more efficient.
ERP platforms are increasingly common across a variety of industries. Current research indicates that the ERP market will exceed $49.5 billion by 2027. This is due to the following:
- The desire to have more simplified enterprise processes
- To combat rising costs elsewhere, improvements in operation efficiency
- Additional digital transformation and adoption of new technologies
- Increased business engagement through mobile devices and apps
- A rise in the number and types of businesses that use PaaS and SaaS
Digital platforms are not just for large corporations. With the rise in cloud-based software as a service (SaaS) available for many budgets, even small and medium businesses can use ERP software.
Arion ERP, for example, is a SaaS that empowers businesses to integrate and manage their data more effectively without installing additional software on their in-house machines or servers. This allows businesses to manage their budgets and resources better. ERP integrations and workflows are created based on business needs, industry type, and the requirement for more fully integrated and complete data.
What is ERP eCommerce Integration?
An ERP eCommerce integration links an organization's frontend eCommerce website with its ERP software. This allows data to be synchronized across both platforms, including orders, products, customers, and other information. Automated data synchronization increases productivity and maximizes revenue.
You probably use an eCommerce platform like Magento, Shopify, or BigCommerce. This platform stores data such as orders and customer information. You can record internal information such as inventory, accounting, and supply chain management during this time.
These two systems can have different data. Different information can cause missed orders, incorrect shipping information, pricing errors, and obsolete inventory. An ERP eCommerce integration can solve these issues. It syncs data between these two platforms. This streamlines your workflow and eliminates manual data entry.
ERP and Ecommerce Integration: Why It's Vital
ERP software is often at the core of a business's data. Your ERP solution might handle finances, as we saw above. Your ERP may be unable to access all information about money flowing into and out of your company, which could lead to inaccurate or misleading reports. This is especially true if your Ecommerce venture includes multiple websites, stores, or works across multiple marketplaces like Amazon and eBay.
For example, if you fail to connect to your third-party logistics provider (3PL), it could mean that your financial statements are missing details about refunds that are driving your overall profits lower than you realize. This makes your reports inaccurate and takes away the opportunity to fix what is driving these refunds and returns.
You can fine-tune and integrate your ERP and Ecommerce with all your Ecommerce data to improve your business processes and functionality of your online store or catalogs. It also allows you to ensure that pricing is up-to-date following market fluctuations.
What are the Key Features of ERP-Integrated E-Commerce?
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 webshop. 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.
- Omnichannel functionality to deliver meaningful customer experiences. Customers who know they can access their account information 24/7 and make purchases, as well as all the details and accuracy, 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 E-commerce Improves Customer Experience
E-commerce has seen a rise in customer expectations due to both a global pandemic and wider e commerce adoption. Building a web store is now more about customer experience (CX), even for E-Commerce businesses.
Many businesses find that ERP-integrated E-Commerce can help them save time and improve their customer experience. It all depends on what type of business decisions you have and which software program you integrate with. Most ERP software can optimize:
- Order Placement: 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: Your e-commerce platform integrates ERP software so automatic communications can be sent to your customers. This includes when an order has been received, the item has been shipped, or if there has been a delay in shipping.
- Simplify: Online sales can be labor-intensive for many companies. However, ERP software can help change product prices within a product category.
- Product Information: 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 your team's time fixing errors or answering simple questions. This allows you to focus on driving growth within your company.
Benefits of ERP and Ecommerce Integration
Aside from the possibility of improving customer experience and honing internal processes, ERP and Ecommerce integration has several key advantages. One of the primary advantages is the elimination of data silos.
Data silos are inaccessible areas because they are locked away in systems, databases, or apps that the ERP cannot access. This could be because the ERP software lacks the technical capability to connect to that data source.
Reduces the Need for Manual Data Entry
Another reason to invest in ERP or Ecommerce integration is that it greatly reduces the need to enter information manually. It is not just time-savings that make automating data inputs such as customer and address details possible. This reduces the chance of human error, such as incorrect addresses or misspelled names.
Customers may feel upset if their name is incorrectly spelled on invoices. Having incorrect addresses can cause failed orders. This will lead to poor customer satisfaction. Your company must also correct the issue and replace any missing orders.
Consistent Data for Every Member of the Team
Full integration with Ecommerce apps is necessary for businesses that use their ERP to manage their business data. This ensures that everyone has access to the same information and is error-free. This is especially important if your business has multiple offices or remote workers requiring business-critical information access.
ERPs that provide consistent information to employees are more efficient than those that require team members to log in to dozens of different systems to access the information they need. Ecommerce information and ERP reduce time and improve efficiency for everyone working in your company.
Collaborate and Cooperate
This leads to better communication among partners, departments, and team members. Marketing executives can quickly assess the results of campaigns and communicate with their content creators to discuss relevant updates for the blog or other social media platforms.
Logistics managers can communicate with warehousing experts about stock shortages and purchase extra stock when there is high demand. Better team collaboration means finding solutions faster and expanding your Ecommerce business in real-time data.
ERP and Ecommerce integration allows you to face customer pain points head-on. By drawing data from all your Ecommerce apps, SaaS, and various communication systems, you can discover one of the most important aspects of business: What is it that your customers don't want?
This could mean skipping unnecessary or too cumbersome steps in your customer journey. You might think that conversion takes too much time for your business. But it could be that customers feel the same.
Do you send too many template-based emails but not enough direct contact? Are you calling leads at the wrong times of the day? All your data can be accessed in one place, which will help you to eliminate any kinks and smoother your customer journey. This will ultimately improve your bottom line.
BigCommerce claims that high shipping costs are the main reason for shopping cart abandonment. Using your ERP and Ecommerce integration of all your data can help you stay abreast of what customers are prepared to pay, what's cost-effective for your business, and increases and decreases in your cart abandonment figures.
It is important to take care of unhappy customers and nurture happy customers. B2B businesses know that customers unhappy with their service won't stay loyal. Your company's data can create clear communication channels between sales representatives, the marketing team, partners, customers, and clients.
Data integration platforms can gather information from your existing CRM and other sources of customer engagement to aid in the optimization of customer satisfaction.
Effective Analysis
Data integration also empowers businesses to achieve real-time analysis, particularly when leveraging automation for a steady stream of relevant business data. How important is timely and effective analysis of business data? The faster you can access and analyze your data, the more you can get the deep insights that will drive your business strategy.
Read More: An Ecommerce ERP Is A Great Option
How It Works
Let's now get into the details of creating an ERP eCommerce integration that works.
Data Sources
You must first understand what data sources you will use. This is important because it will help you choose the best type of integration.
Cloud-Based: Most of today's ERP and eCommerce platforms are cloud-based and use a software-as-a-service (SaaS) model. These connectors are universal and can be integrated with other platforms.
On-Premise: This back-office ERP platform is powered by local hardware. Although you can integrate this system, legacy software is often more difficult.
Hybrid: Some businesses combine a mix of tools, such as a cloud-based eCommerce website and an on-premise ERP system.
Methods
There are three ways to set up an ERP integration.
Point to Point: These integrations connect one application with another via a custom connector. They are fragile and must be rewritten if the application is modified. They expand exponentially: two applications only need two connectors; three require six, four require 12, and so on.
Enterprise Service Bus: This layer allows data to be moved between applications. Although it is more efficient than a point-to-point system, it has limitations regarding the data it can process and can cause bottlenecks.
Third-Party Integrator: This integration tool connects your ERP and eCommerce platforms seamlessly. It handles the integration all by itself. It makes it easy to integrate your ERP and eCommerce platforms. This type of tool is known as an integration platform-as-a-service (iPaaS).
Frequency
Real-Time: Data is synced as soon as available using this automation frequency. This is more convenient but requires more infrastructure and can be more difficult.
Batch: All data in this model is updated at regular intervals. Although data is not always up-to-date, this system integrates well with many platforms and is generally simpler.
Types Of Data to be Transferred
Before beginning an eCommerce integration, you must determine what data will be transferred and in which direction. You may only want order data to flow from your website to your ERP system.
The most popular types of data that can be transferred are:
- Information about the product
- Customer data
- Pricing
- Shipping
- Stock levels
- Order/invoice information
- Taxes
- Returns
The Process of Setting Up An ERP Integration
Now, look at what you need to know to integrate ERP eCommerce successfully.
- Set Clear Goals: Frontend and backend parties must understand what they want from the integration.
- Describe The Business Processes to be Integrated: Make certain that both ERP and eCommerce systems can perform the required tasks.
- Map out the Data Flows: This will ensure data is transferred between systems correctly and efficiently.
- Before going Live: Perform several tests to verify the data integration process. This will ensure that the systems work together correctly without errors.
- Support and Maintenance Plan for Post-Integration: Systems are bound to go down from time to time, so be sure to have someone there to help you troubleshoot and get them back up and running as soon as possible.
However, deciding to integrate ERP and eCommerce systems is just the beginning. To overcome common problems and identify best practices, you'll need to be able to recognize them.
Challenges
When integrating ERP and eCommerce systems, there are many challenges. Some are human, some are software-related, and others depend on your existing software.
These are the most popular.
Scaling
Check that your ERP system and eCommerce system can handle the integration's data flow requirements before you start integrating. Modern solutions should not have any problems, but it is important to ensure you don't find bottlenecks and slow down your business operations.
Budgeting
Although it is easy for integration projects to go over budget without planning, the key to success is usually in planning. You can avoid unexpected problems by creating a clear plan in advance so your integration goes smoothly.
Custom Integrations
Many ERP systems and online shops offer bespoke features tailored to meet business requirements. Because these features are not as intuitive as standard software, integration can be more difficult. This also means that custom features can make updates and modifications difficult.
Software Older Than 5.0
It can be difficult to integrate outdated apps or legacy solutions from on-premises. This can make a huge difference in the speed and ease of integrating your cloud platform.
Multiple Data Types
The more data types you need to integrate, the more complicated the system will become. Try to simplify as much as possible. Implementing a smart integrated solution will be easier if you make the right choices now.
Integration of Your ERP
ERP and Ecommerce Integration: How is it done? How exactly do you ensure that your ERP can connect to all your Ecommerce business data and maximize the effectiveness of your enterprise software? You can use various data integration techniques, some more trying than others, depending on the situation.
Understanding Your Ecommerce Data Sources
From your Ecommerce sites to your social media accounts, understanding what and where your data sources are is the first step in ERP and Ecommerce integration. You must look beyond the data from your Ecommerce website, though this data is essential.
It's important to consult with your team members, marketing specialists, and social media managers to ensure you're fully aware of the apps and services to which your Ecommerce business is linked.
A company could miss data from one social media network if they don't know that their social media manager added it in the past few months. Transparency can help you understand the variety of data sources.
Keep a list of all possible sources of Ecommerce business data and update it as soon as you connect with any new partners, B2B buyers, SaaS providers, PaaS providers, and particularly cloud-based services. The first step towards complete ERP and Ecommerce integration is determining where your data needs to come from.
Find Data Integration Solutions
Some ERP platforms and tools may include connectors for the most popular Ecommerce tools. These may include your online store builder or Ecommerce platforms such as Shopify or BigCommerce, and may primarily focus on financial aspects that support business accounting solutions. As you can see, there are many data sources that you need to connect to.
Connect to your Data in a Different Way
ETL is a popular data integration technique. It stands for Extract, Transform, and Load. ETL is a process that creates separate data pipelines for each data source. These pipelines can be automated to pull data at a set time or when changes occur. Data is converted into one format and sent to a data lake or warehouse like Amazon Redshift. This data can then be used for business intelligence (BI) analysis.
You might be able to have each pipeline coded by your in-house data experts if you are fortunate enough. Manual processes are time-consuming, taking your data engineers away from other, perhaps more high-priority tasks.
Using a dedicated data integration platform enables multiple users to create, manage, and monitor data pipelines without worrying about what's going on in the system's backend.
ELT is an alternative to ETL. This allows data to be brought directly into your data lakes without any transformations. This is great for unstructured data in large numbers. Research suggests that by 2025, the unstructured data volume will exceed 175 billion terabytes.
APIs can connect to individual tables within databases or bespoke systems and apps that fall outside the connection options within the ERP system.
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Conclusion
Whatever your online business specializes in, the primary goal of ERP and Ecommerce integration is to break down data silos and gain access to all data that can be stored. lead to extremely useful insights.
An effective data integration tool can help streamline the flow of business data into your data warehouse solution, providing useful information that you can feed back into your customer relationship management (CRM) platform or business intelligence (BI) tools.
Integrating your ERP and eCommerce solutions is an excellent way to reap the most benefits. Data synchronization is critical for scaling your eCommerce business.
Numerous automation options also improve system efficiencies by eliminating the need to perform a full capture of historical data each time it updates. This will prevent your data warehouse or connected systems from becoming slow and unresponsive.
