You're likely familiar with ERP platforms if you run an ecommerce business. SMBs and enterprise companies are now using ERPs in e-commerce. Ecommerce ERPs can be used to manage a wide range of needs in business, including procurement, logistics, and financial reporting. Businesses can automate workflows, gain insights and streamline processes with ecommerce ERPs.
ERP software can help ecommerce websites operate more efficiently and provide more for less.
The global ERP market will reach $100 billion in 2025. This is a large market with many big players. Before implementing a new ERP, decision-makers must understand the capabilities and limitations of this system.
Accelerating Growth With Ecommerce Erp
Retailers realize that they need to innovate in eCommerce solutions and integrations as they prepare for the future. They want to exceed customer expectations. Customers must not feel any seams in the services that retailers offer. These expectations can be made a reality with an eCommerce ERP.
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Raising Customer Expectations
According to a report, companies must "make sure that their customer-facing applications are deeply embedded with the systems of records so that they can be resilient, digitally enabled, and agile enough for future commerce trends" to remain competitive.
If your customers make an online purchase, they should be able to return that item at any physical location. Imagine that they already have an account. Your customer will expect to be able to access their order history and contact details, regardless of which channel they choose to interact with you.
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Prepare for the Future
Even after the lockdowns were lifted and ended, online shopping continued to grow. Before 2020, consumers' desires for omnichannel (online, by phone, or in-person) sales were very high. But they grew exponentially after that.
Labor shortages, site issues, and delayed deliveries have affected retailers' performance. analysts have determined that to support retail growth, it is essential to offer omnichannel service, which can be enabled by integrating both technologies.
- Retail ERP solutions: store, manage, sync, and distribute information across all departments, acting as the single source of fact for an entire company and providing the business with the insights they need for smart decision-making.
- eCommerce Platform: The customer-facing app and cloud-based ERP software act as a system of records that integrates the company's financial, purchasing, inventory, and customer service needs.
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Retail Software Integration of eCommerce
By tightly integrating eCommerce with Sales, CRM, and Financials applications, retailers can improve the omnichannel experience for their customers, automate order fulfillment and sales processes and ensure continuity of operation. The native, thorough integrations of the eCommerce system create an automated, omnichannel experience that is optimal for merchants and customers.
The business is natively linked with some BigCommerce-like eCommerce platforms. as "a single package solution." BigCommerce Web Stores are "integrated with Financials, Inventory, Operations, and Reports running on this seamless integration," according to the statement.
Benefits include reduced stockouts and backorders, quicker order processing, exchanges, and returns, integration of websites and POS, and a seamless omnichannel customer experience. Retailers can also access data from anywhere and anytime using any device. It is easy to control the following retail functions from a single dashboard.
- Accountancy
- Customer support
- Inventory
- Shipping, picking, and packing
Keep your competitive edge by exceeding expectations
Integrated solutions offer retailers and consumers a collaborative approach to help them achieve their goals. You'll also be able to anticipate and accommodate your customers' needs by offering them an omnichannel service. The magic formula for accelerating growth is a CRM integrated with inventory and financial management.
How Can Ecommerce Functionality Be Integrated With Erp Software?
Vendors of enterprise software offer many applications and features relevant to eCommerce. If you want to purchase an eCommerce platform separately, the functionality is limited until it's integrated with your ERP.
Review which ERP eCommerce features you should prioritize.
1. CRM
CRM platforms give eCommerce retailers complete visibility over their entire sales cycle. They can provide better customer service by providing more personalized and targeted support. This will improve retention and satisfaction rates.
An eCommerce CRM gives companies insight into their customers' behaviors, interests, and preferences. The system provides an in-depth view of customers' buying patterns, searches, and other information.
Our latest report includes CRM features that are directly applicable to online retailers. Download our report to learn more.
2. Financial Services
Financial Services for enterprise decision-making, accurate and up-to-date financial data are essential. Most ERP systems include financial management tools and accounting software as core features.
Retailers need financial insight to centralize processes and create effective forecasting. They can plan for important reorders and estimate delivery times. They can also access financial information to help them decide which vendors to work with or which clients still have a balance in their accounts.
Many retailers use accounting software to manage their finances. It's a good idea to incorporate this feature into an ERP platform if this is true. The information will be easily shared between departments.
3. Inventory Management
Inventory issues remain a major concern for retailers as they grapple with the reality of the post-pandemic economic climate. Inventory levels often exceed the sales of even top-name companies in this industry.
Online companies are particularly vulnerable since eCommerce companies often sell more products and have higher sales volumes. It's easy to make errors when you have such a fast-paced operation.
Therefore, order management and inventory control are the two most crucial functions from an eCommerce perspective. The eCommerce owner must be able to process orders immediately after a customer purchases a product from the website. For them to achieve this, full inventory visibility is required.
Speed is the key to success in this competitive market. The companies that are most efficient in their processes and can ship orders quickly will be favored.
4. Shipment And Distribution
Drop shipping is a popular business model for many online businesses. This means the retailer sells an item online first. They then order the product from a vendor, who will be responsible for shipping it to the customer.
In recent years, it has been a popular option to the traditional inventory management method. This allows retailers to provide a wider variety of products to their clients without having a bigger warehouse.
Integrating ERP with eCommerce can improve this process. ERP provides retailers with visibility of current inventory and allows them to track shipments to provide prompt customer service.
Read More: Boost your Business Efficiency with Arion ERP eCommerce Integration
What to Look for When Selecting an eCommerce System
When meeting with vendors, you should ask them about the following topics: If you have an existing ERP but would like to add eCommerce features to enhance its functionality, you can do so by asking specific questions.
- Scalability
Our ERP consulting services are focused on software scalability when working with clients during the selection phase. This is because the software solution should grow with your company. The same is true for eCommerce solutions.
For precisely this reason, many retailers choose software-as-a-service (SaaS) eCommerce solutions. You can start with a basic plan on subscription-based platforms and upgrade as necessary.
Your customers should be able to check the status of their order's shipping. This functionality can be easily added to a scalable eCommerce platform.
The provider will take care of all hardware and infrastructure. It lowers the costs of running your own business so that you can concentrate on expanding your company.
- Accessibility And User-Friendliness
Your eCommerce website will be accessed by customers using a wide range of devices. The user interface on each device should be consistent and easy to use.
It is best to test the UI for yourself. It is possible to download a trial version of the software and test it on different devices. This will ensure that all features work as expected.
- Payments
Most eCommerce systems do not process customer payments at the checkout. Payment gateways are often included with many eCommerce systems. These connect the system to major credit card companies.
Although most systems offer this functionality, not all do. You can ask each vendor for information on payment gateways. It's more costly to create your payment connectors for every option you accept, even if they are a bit higher priced.
- Multi-Channel Capability
Does eCommerce represent only a small part of a larger retail strategy? You need an eCommerce system that is flexible enough to handle your brick-and-mortar store and social media sales.
You should ask about the multi-channel functionality of any system you are considering, particularly if you plan to integrate the software with ERP. You should be able to search inventory, recall orders, and modify capabilities on all channels.
Find Out More About Erp And Ecommerce
Retailers can improve visibility and optimize operations by combining ERP with eCommerce.
Retailers have all the tools to process orders, sell products, and accept payments. ERP systems give retailers administrative tools that eCommerce does not have, such as cross-departmental communication, inventory control, supply chain management, and more.
Contact our ERP consultants to discuss your goals and strategy before selecting software.
What Types of RPAs Should You Consider?
ERPs are typically classified into three main system models. Differences in integration and use are the main differences. Arion ERP and other major ERPs and APIs can integrate any data type.
- Generalist
They are designed to be used commonly across industries. The focus areas of financial management and procurement are similar, regardless of the industry. Although they may be rigid and lack customization, these programs are usually good for the intended purpose.
- Modular
Modular systems, as their name suggests, implement components according to the need. Modular ERPs can provide you with only a part of the solution. They're typically designed for specific business requirements and cases.
- Software for ERP
ERP suites combine several add-ons and ecommerce applications into a single, integrated application. They are used by complex companies looking for a solution with a wide range of functionality.
How ERP Implementation Can Be Impactful
Where an ERP platform lives will depend on the needs of each company, but cloud-based innovation is common. Still, it may not be the best place for your core business operations. The degree to which a solution can be customized or rigid varies.
- On-premise
This model places ERPs on servers owned by and managed by businesses. They are often used in industries with strict regulations, such as healthcare and finance. Data storage and security are of particular importance.
- Cloud
The systems are hosted on third-party cloud servers such as Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Services. Although cloud ERPs can be easier to set up and start, costs are becoming more of a concern. This is the most popular choice for ease of use.
- Hybrid
Hybrid models are a combination of the two. Cloud computing can store more sensitive data, such as financial records. This option may be attractive to companies with legacy modules.
When Is The Best Time To Implement Erps?
It's easy to say "now," but that isn't always the best answer. Before launching an ecommerce solution, these are the factors you should consider and solve.
- Communication Issues
This will become a problem if you are operating in silos. ERPs can have a large impact on the organization. Any change could affect everyone. It is important to communicate clearly what an ERP system does, what it can do for employees and customers, and its benefits. Proactively engage stakeholders and ensure their support before launching.
- Messy Manual Work
Integrations can be difficult. They can sometimes work perfectly and seamlessly integrate into your technology stack. They can sometimes fail.
Engineers often have to perform additional manual work to achieve an efficient integration. ERPs are usually a long-term investment, but there can be some pain in the short term.
- No Overview
ERPs don't just appear and disappear. It's important to manage them properly so that they work correctly, and their connected systems also do. After ERPs are launched, companies should have resources and experts available to help support them.
The Key Features Of Erp For Ecommerce Success
ERPs can handle the unique requirements that e-commerce businesses have.
- Financial Services
Real-time Ecommerce is a reality. ERPs that can show real-time data on orders, payables, and receivables provide deep insight into the performance of an ecommerce platform. Accounting software that has a simple dashboard can often pay for itself.
- Customer Relationship Management (CRM)
Returning customers makes new customers even more valuable. Ecommerce sites and apps can increase sales by managing that relationship through a CRM. A robust list of contacts will result in better customer service, more touchpoints, and greater opportunities to spread your message.
- Inventory Management
Inventory management integrated keeps stock levels current in real-time, no matter where merchandise is stored. You'll always be able to see where your entire inventory is located and whether it is on the move or in storage. Supply chain management is simplified.
- Shipment, Warehouse, And Distribution Management
A good ERP will help you to manage your order and logistics more efficiently. An ERP automates everything, from calculating shipping charges to creating labels and processing orders. It reduces the company's workload and improves customer service.
Product Information Management (PIM)
PIM simplifies multi-channel selling and allows companies to sell across multiple platforms. A PIM can replace the need to create and maintain listings across multiple sites. It allows a single, updated information source to be accessible on all platforms.
Read More: Tips To Select The Best ERP Solution For Your Business
Online Businesses Benefit from Integrating ERP
ERPs harness the power of digital transformation, empowering online businesses to take full advantage of modern technologies such as automation and AI. These tools help businesses manage routine tasks efficiently, allowing them to concentrate on their more important work.
- Better User Experience
Customers want a simple, easy-to-use purchase process that is quick and easy. Each step can be improved to provide a customer-driven experience.
- Price Management
It is important to have easy control over pricing, especially when working in an environment with omnichannel. It is time- and money-saving to quickly adjust prices in all channels. Automating prices under market conditions can maximize revenue for some ecommerce businesses.
- Create An Integrated, Centralized Data Hub
A properly implemented ERP integration breaks down silos of data and allows data to be used across an enterprise. A single data source can provide insights into what is working and not in your company.
- Reporting And Forecasting Improved
With a centralized view, you can compare factors such as sales orders with finance, logistics, and procurement information and see the relationships among them. When historical and real-time information is combined, demand forecasting becomes more accurate and complete.
- Productivity And Efficiency Can Be Improved
An automated ERP system can help you with your logistics and operations. By sharing data and eliminating manual inputs, you can streamline processes to get more done faster.
- Tighten Inventory Control
To avoid stockouts and maintain a robust supply, real-time inventory visibility is essential. Better sales forecasting and improved supply chain efficiency optimize inventory costs.
- Optimize Your Omnichannel Experiences
It isn't easy to manage omnichannel sales, as one product may be offered across dozens of platforms. For a good customer experience, providing a coherent and consistent experience with accurate product descriptions is important.
Future Trends For Erp & Ecommerce Integration
ERP & eCommerce Integrations have become a part of the business to improve efficiency. There are many emerging ecommerce erp trends likely to influence the future of ERP integration and eCommerce:
Cloud Computing Solutions:
Cloud-based eCommerce and ERP solutions are increasingly in demand and popular. These solutions are popular because they offer flexibility, cost-effectiveness, and scalability. Cloud computing is becoming a popular option for many businesses. Cloud-based ERP and eCommerce are not an exception, as they offer more flexibility, scalability, and accessibility. These systems are also more easily integrated.
Machine Learning & AI for Greater Automation:
Artificial intelligence and machine-learning techniques are advancing and will be a major part of future solutions. In the same way, we can also expect to see increased automation of ERP and eCommerce Integration. It may include automated order processing, data entry, and inventory management.
Advanced Analytics:
Data generated by eCommerce transactions are larger. Data analytics is becoming more important as businesses increasingly rely on the data generated by integrated ERP and eCommerce systems. It will allow businesses to make better decisions and gain insights. Data analytics is more important than ever to accurately analyze trends in sales, growth opportunities, and other metrics. In this respect, integration plays an important role by providing data from different sources in real-time to the ERP.
Personalization Improved:
The availability of data on the customer's behavior and preferences allows for a more personalized experience. It is now possible to personalize marketing campaigns and pricing and make product recommendations. Customer engagement increases with increased revenue.
Integrating Emerging Technologies With:
Emerging technologies like virtual reality and blockchain will enhance integration solutions. They may offer and introduce new capabilities, methods of interaction with customers, and experiences.
Social Media Integration:
As a channel for marketing, social media is increasingly used by businesses. ERP and eCommerce Integrations Systems enable connecting to social media platforms to connect with customers and increase sales.
Businesses use technology to personalize, streamline, and create seamless customer experiences. Overall, the future for ERP and eCommerce integration is bright and flourishing.
Last Word
As a company grows, its operations become more complex. ERP integrations optimized for ecommerce allow businesses to grow and scale by improving processes and finding efficiencies.
Enhancements can be made to both customer-facing workflows and the back office -- all of which result in improved business.
