ERP Integration with E-Commerce: Benefits, Types & Best Practices

E-commerce is one of the fastest-growing industries, both currently and in the future. It refers to individuals or companies buying and selling services over the Internet, providing opportunities to multiple vendors to sell things on a larger scale and expand their business. It is considered a very disruptive technology. 

Retail commerce sales amounted to approximately 5.2 trillion US dollars worldwide and are forecasted to increase 52% over the following years, reaching around 8.1 trillion dollars by 2026. 

But are you owning an e-commerce store online and still holding back for a long time due to the late updation of data by manual updates, or are you not syncing it at all? It’s okay. These things can’t hold you anymore; ecommerce erp integration is the best method to improve productivity, speed up processes, and even increase revenue. Today, in this article, we’ll cover the importance of ERP in e-commerce, the best ways to set up the integration, how it works, and all the details you should know. 

Streamlining Operations and Boosting Productivity With ERP E-Commerce Integration

• Basics of ERP Systems

It is an extensive and integrated software system that smoother many business processes within an organization. To know it in simple language, it can be introduced as a centralized hub for information. At the same time, it streamlines multiple operations from sales& marketing to finance to project management to all supply-chain management and more. 

• ERP E-commerce Integration

ERP integration with E-commerce is like placing two pieces of puzzles perfectly together. Understand this: in this way, you have your own e-commerce online store and have to sell and manage products and keep the customers happy by providing them with constant on-time deliveries. ERP is an intelligent system that can handle everything from financial tracking to inventory management. 

Also Read : What Is ERP? Is It Right For Your Organization?

How Does ERP with E-Commerce Integration Work?

Integration of ERP in your e-commerce business involves several steps and technologies to make sure the smooth flow of data and processes between the e-commerce and ERP systems. Here is a detailed explanation of how it works. 

1. Data Mapping & Transformation 

In the beginning you have to make sure which data must be shared between the e-commerce platform and the ERP system. This data can include product details, inventory levels or order data and more. Each element of the data is defined in the both systems by data mapping. As the ERP and e-commerce both use distinct data structures it ensures data compatibility. 

2. Integration Method

Choose the integration method that best suits the needs of the platforms. Some of the major methods includes are:

• API based Integration 
• Middleware Solution 
• Custom Development 

Once the integration method is selected transfer your data transfer data mechanisms are set up. This includes the connection establishment or middleware configurations to allow data to flow between the two systems. 

3. Real-Time Batch Processing 

Data can be transferred in real-time of batch processing depending on the integration methods and the nature of the data. For example if we talk about customer data and inventory levels, they require real-time management and on the other hand the historical data is transferred directly in batches. 

4. Data Validation and Error Handling 

The data accuracy is ensured with the help of the validation rules that are set up which detect the mistakes and errors. This also includes confirming order details, customer information, and product SKUs. Mechanisms for handling errors are executed to deal with problems that might occur during data transfer. This can contain keeping track of mistakes, notifying administrators, and putting procedures in place for manual intervention when required.

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5. Business Process Automation 

Automation rules are set up to respond to specific system events by triggering particular actions. For example an automated procedure may update inventory levels and start the order fulfillment process when an order is placed on the e-commerce platform with the help of AI integration.

6. Testing and Quality Assurance 

Testing is important for any system to make sure the integration works properly. The steps include integration testing and end-to-end testing to verify that data and processes are functioning as expected. Once all the tests are done it is time for the deployment in the production environment. Moreover continuous monitoring is necessary to identify and resolve the issues that may arise over time such as changes in data structure or APIs. 

7. Scalability and Updates 

The integration should be flexible as per the company’s needs, as it grows the integration also has to modify itself. Regular updates and maintenance should be done to make sure that the integration is effective. 

Benefits of Integrating ERP with E-commerce Platforms

Ecommerce ERP integration has many advantages that enhance a business’s operations and overall performance. These benefits cover several critical areas of business management, which promotes efficiency and accuracy.

1. Streamlined Operations

With the integration of the ERP in the system, the exchange of data and information between the ERP system and online becomes a smooth process. However that helps the system to fetch the details on its own and avoid the unnecessary manual data entry work in the case of inventory and financial management. This also helps in reducing errors which results in better business operation and overall work. 

2. Real-time Data Sharing

This integration also takes care of the real-time data, making sure about everything.  For example, when an order is placed online, with the help of ERP, it will be updated at the same time on the system. This helps the system to get all the real data, making it better for the users as well as for the admin side. 

3. Enhanced Customer Experience

The integration of ERP in your e-commerce store helps the users to get better transparency and engagement. They can easily track their order status, receive accurate delivery estimates, and access their purchase history. This, moreover, helps them to get a better experience. 

4. Efficient Inventory Management

ERP integration provides a  view of inventory levels and sales trends. This data enables businesses to make better decisions about stock, preventing stockouts, and reducing excess inventory. With accurate inventory data, businesses can optimize their supply chain and reduce carrying costs.

5. Accelerated Order Processing

Orders placed on the E-commerce platform are seamlessly transferred to the ERP system, automating the order processing workflow. This automation reduces processing time, minimizes errors, and enhances the speed of customer order fulfillment. Customers receive their orders faster and with greater accuracy.

6. Accurate Financial Tracking

Integrated systems ensure consistent financial data across different platforms. This unified financial data helps in the accurate tracking of sales, expenses, and revenue, simplifying financial reporting and reducing discrepancies in financial records.

7. Data-driven Insights

E-commerce ERP integration allows the aggregation and analysis of data from both systems. This provides valuable insights into customer behavior and operational performance. With these insights businesses can make data-driven decisions to refine their strategies, improve customer engagement, and optimize their operations.

8. Cost and Time Savings

The integration also automates the various tasks and reduces the need for manual work. This results in lower labor costs and frees up employees to focus on higher-value tasks, such as customer service or strategic planning. Along with this, the efficiency gains from integration lead to faster order processing and reduced lead times, which save both time and money.

9. Scalability and Growth

The integrated systems are fully equipped to handle all the issues, whether it is increased order volumes or business growth. This helps the system to remain effective even at the time of demand growth without compromising operational effectiveness. 

10. Centralized Customer Data

Centralized customer data allows businesses to offer better experiences and custom marketing campaigns based on customer history and preferences. Businesses can create targeted marketing strategies and build stronger customer relationships with a better view of customer information.

Types of ERP Modules and Their Features for E-commerce Business

ERP systems offer a variety of modules that can be integrated with e-commerce platforms to enhance processes and overall productivity. Let’s look at some of the major ERP modules and their features while integrating them in e-commerce.

1. Finance Module

One of the most important modules of the ERP system is a financial module that helps the e-commerce business manage their financial data efficiently. Using this module, the platform can ensure that all expenses and sales provide a clear financial view and are tracked properly.  It also automates tasks like cash management and vendor payments, ensuring timely and accurate transactions.  

2. Procurement Module

Procuring products for suppliers is essential in ecommerce businesses. This module helps businesses to manage vendor relationships and automate purchasing processes. The inventory levels are optimized by ensuring that purchase orders are generated independently when new stock is needed. 

3. Inventory Management Module

Effective inventory control is important for the success of e-commerce businesses. Businesses can track stock levels, SKU information, and incoming inventory using ERP’s inventory module. Real-time inventory updates are ensured by integration with e-commerce platforms, avoiding stockouts and delaying delivery of orders.

4. Order Management Module

Order processing and fulfillment is one e-commerce heavily relies on. With the help of the order management module, one can do this process. Thus, integration ensures that all the online orders are transferred smoothly to the ERP system, reducing the time of order fulfillment and also reducing errors. 

Also Read: Efficient E-Commerce Order Management: How to Choose Best OMS Software?

5. Warehouse Management Module

This module improves warehouse operations for companies who own warehouses, from picking to packing and shipment. Order picking and shipping procedures are made more efficient through integration, which speeds up delivery and raises customer satisfaction.

6. Supply Chain Management Module

Often e-commerce businesses deal with complex supply chains involving multiple distributors and suppliers. This module provides a clear view of these operations, ensuring that all supply chain activities are synchronized, improving efficiency, and reducing lead times. 

7. Customer Relationship Management (CRM) Module

In e-commerce, keeping strong relationships with customers is essential. Purchase history, communication history, and customer information are all stored in the CRM module. Businesses can improve customer service, target promotions more efficiently, and provide personalized experiences with the help of integration.

8. Ecommerce Module

Certain ERP providers provide specialized e-commerce modules for managing and creating e-commerce websites. Integrating ensures that customer, inventory, and online sales data flow easily into the ERP system, enabling comprehensive management.

9. Marketing Automation Module:

For e-commerce companies to successfully reach their target audience, marketing automation is important. Through the integration of a marketing automation module, marketing campaigns can be managed centrally, which provides a company the ability to monitor results and make data-driven marketing decisions.

10. Professional Services Automation (PSA) Module

For project planning and resource management the PSA modules assist service-based e-commerce businesses. Integration of ERP ensures that the expenses, billing, and project-related data are synchronized with the ERP system. 

11. Management Module

The workforce management module makes payroll and hourly employee management easier. In order to ensure precise and effective payroll processing, integration helps track employee hours, attendance, and payroll data.

12. Resources Management (HRM) Module

Benefits, paid time off, and employee data are managed with the help of HRM modules. Integration guarantees that HR data is current throughout the company and removes data redundancy.

Impactful Ways to Implement ERP in The E-Commerce Business

Integrating an ERP system with an e-commerce business is a very strategic move that can help operations to work smoothly, enhance efficiency, and provide a better customer experience. Let’s dive into the steps to integrate an ERP with an e-commerce platform.

1. Understand Your Business Requirement

Understand the specific needs of your e-commerce business. Along with that, it also identifies the areas where an ERP can add value, such as inventory management, order processing, customer data management, accounting, and more. This can guide you and tell you what type of ERP system is better for the integration of your business. 

2. Choose the Right ERP System

Now, and select an ERP system that fulfills the requirements of your e-commerce business. To choose from the many present in the market, go for different factors such as scalability, compatibility with your existing systems, customization options, and customer support.

3. Data Migration and Integration

Ensure a smooth data transfer between your e-commerce platform and the ERP system. These data can be migrating product information, customer details, inventory data, pricing, and order history. You can also use APIs, middleware, or integration platforms to facilitate this data transfer.

4. Automate Order Processing

The integration of the ERP system into your e-commerce store can help with multiple tasks, and one of them is the order fulfillment process. When an order is placed on a website, it will be reflected on the ERP with all the order statuses. Which, moreover, results in better management of the order shipping and processing.

5. Streamline Customer Information

Also, make sure that the customer data is synchronized between the e-commerce site and the ERP. This includes order history, contact information, preferences, and any interactions. This helps personalize customer service and targeted marketing.

6. Financial Integration

You can connect your e-commerce financial operations, such as payments, invoicing, and accounting, with the ERP. Then helps the business to get up-to-date and accurate financial data throughout all platforms. 

7. Continuous Monitoring and Optimization

Keep an eye on the integration’s performance, examine the data flow, and get input on a regular basis. Optimize the system to increase effectiveness, fix any problems, and adjust to evolving business requirements.

Successfully integrating ERP and an e-commerce platform requires a list of things to be taken care of, such as planning, experts, and ongoing support that ensure the smooth functioning of both systems. 

Challenges Faced at The Time of Integration of ERP in E-Commerce  

Knowing about the benefits of ERP integration into ecommerce is substantial, but it is crucial to have the knowledge and address the challenges that often accompany this transformation. Let’s get the ball rolling at some of the major ERP integration challenges. 

1. Customization Complexity 

ERP systems are highly customizable and suit all types of businesses. However, the challenge comes with maintaining the right balance between customization and functionalities. Maintenance effort and complexity can be increased by over-customization. It can cause challenges in integrating new solutions or implementing updates without disrupting operations. 

2. Budget and Cost 

One of the major concerns of ERP integration in e-commerce is the integration cost and budget concerns. There are multiple costs involved in the process, along with the software and licensing costs, such as infrastructure updates, training, and operational costs. 

3. Data Compatibility Issues 

The system requires the data flow across the modules and departments to be seamless. However, transforming from an ERP system that is driven by outdated technology that is no longer used can cause data compatibility issues due to the difference in the data formats, structures, or naming conventions. 

4. Management and Employee Adoption 

one of the common challenges faced by most businesses is adapting to new processes, which can be quite resistant for the employees; adapting new processes and workflows is a difficult part. To explain it further, for instance, the company that is implementing an ERP system will automate the manual work; thus, decreasing the manual processes can give insecurity to the employees, which is one of the biggest reasons for resistance to new technology.

How to Choose The Right Platform for Integrating ERP in Online Solutions 

Any organization, from startups to established enterprises, can profit from ERP software. Businesses that have to handle a variety of business operations, such as accounting and financial management, inventory management and supply chain management, order management, human resources, project management, and others, will find ERP systems to be extremely beneficial. Some ERP solutions, such as those used in healthcare or manufacturing, may also include industry-specific functionality.

1. Implementation Time

It is essential to pick an ERP deployment with a reasonable timetable when choosing an e-commerce ERP. It is ideal for your e-commerce business to start benefiting from your ERP system as soon as possible.

A more straightforward (but still functional) ERP solution is usually a better option, for instance, if you plan to manage the installation process yourself. Choose an e-commerce ERP that is more sophisticated and complex if your business has used ERPs before or if you are collaborating with an implementation partner.

This is crucial since delays in both time and money frequently occur during the ERP deployment phase. 

2. Features

Choosing an e-commerce ERP with the right features and functionalities is essential. The following features of an e-commerce ERP are something to look for:

• Remote work choices and interoperability with mobile devices
• Help with the relevant departments and functions (accounting, HR, supply chain, sales, marketing, etc.)
• Simpleness and usability
• a hybrid or cloud-based computing approach
• Automation of processes and tasks
• Reporting and analytics using data

There are five factors that you can consider when selecting an e-commerce ERP:

• The flexibility and scalability of the ERP solution as your company expands.
• The duration of the ERP project’s implementation
• The pricing and cost structure for the ERP application.
• What features and functionalities are available in the ERP system?
• What is the degree of integration between your ERP software and the rest of your IT infrastructure?

Planning your IT infrastructure doesn’t end with selecting the best e-commerce platform, like Shopify or Magento. Your e-commerce business can benefit from ERP (enterprise resource planning) software by having your business workflow streamlined, automated, and optimized.

3. Integrations

It’s possible that the e-commerce ERP you’re searching for won’t be the initial part of your IT ecosystem. Your ERP needs to integrate seamlessly with other external apps and systems in your IT environment in addition to your e-commerce solution.

For instance, a lot of users wish to combine their customer relationship management (CRM) program with their ERP system.

A CRM is a platform that keeps track of every interaction a business has ever had with its clients and prospective clients via phone conversations, website visits, email newsletters, social media posts, and other channels.

When choosing an e-commerce ERP, CRM and e-commerce software should be integrated with accounting software, automation platforms, data warehouses, business intelligence and analytics tools, project management systems, and other features.

Make sure the e-commerce ERP you select includes all the integrations and connectivity you’ll need, both now and in the future.

4. Pricing

Cost is a crucial factor to take into account when choosing an e-commerce ERP. There is an e-commerce ERP solution to suit almost every company’s demands and budget, from little e-commerce startups to big companies. 

The following elements may influence ERP software costs:

• The price of training and education
• How many people utilize it
• The price of upkeep and assistance
• The deployment model (on-premises or in the cloud)
• The degree of personalization and functionality
• The implementation cost

These are some factors that can help your business choose the right ERP to integrate and compete with others with the same potential in the market. 

Top 5 E-commerce ERP Software You Need To Know 

There are multiple ERP solutions in the market to integrate your e-commerce business process effectively. Let’s have a look at some of the leading ones. 

1. Oracle Netsuite 

The software is used in more than 200+ countries and has many customers. The Oracle NetSuite ERP allows users to consolidate in real time. It also provides automated intercompany eliminations and translations into foreign currencies. It is a web-based program that works with several different web browsers. With its data center and integrated security procedures, the organization guarantees complete safety.

2. Sage 

The Sage ERP is enjoyed in three different products:

• X3 for enterprises
• 100 for small and mid-sized manufacturers
• Sage 300 for small and mid-sized businesses with multiple locations 

Core distribution, manufacturing, accounting, business analytics, customer relationship management, and human resources are among the areas in which Sage 100 provides modules. X3 is primarily a mobile-only application that is entirely web-based. Additionally, you can set it up to meet the unique needs, preferences, and user roles of your business.

3. Microsoft Dynamics 

It provides ERP solutions to all sizes of companies with its Dynamic 365 platform. There are six separate products present on this platform- Microsoft GP, AX, SL, NAV, CRM, and RMS. It is one of the major suppliers of ERP solutions worldwide. For small and medium enterprises, Dynamic NAV, GP, and SL are there, and for larger companies, Dynamic AX is best suited. 

4. SYSPRO

This ERP solution is designed for manufacturers and distributors, and it can be used in the cloud, hybrid, or on-premise models. SYSPRO is available for licensing on a perpetual or subscription basis. Order management, planning and scheduling, supply chain management, accounting, inventory management, warehouse management, production, and much more are all included in its fully integrated business solution. It also focuses on the integration of technologies such as ML, IoT, AI, Cloud, and consumer-grade user experience into your e-commerce ERP system.

5. Batchmaster 

It presents users with process manufacturing software solutions involving the chemical, nutraceutical, food, and pharmaceutical industries. You can run the manufacturing application using QuickBooks, Sage 100 & 300, Microsoft Dynamics GP, and SAP Business One financials. You can also choose to upgrade to an end-to-end enterprise resource planning (ERP) solution that supports financials, supply chain process manufacturing, CRM, and more.

Some of its impressive supported process manufacturing capabilities include R&D, recipe and formula management, packaging BOM management, scheduling, warehousing, analytics, reporting, etc. With the optional mobile application, you can perform production and warehousing tasks using smart devices.

Why Should You Employ Emizen Tech for ERP E-Commerce Integration? 

Emizen Tech is one of the Best E-Commerce Development Companies in the market. We provide smooth integration of ERP systems in your existing ecommerce business or can Develop Custom ERP Solutions as per the requirements and needs of your platform. Our experts are well-versed in the latest technology and keep upgrading as per the trend. This helps our clients to get better and upgraded services.  Whether you are starting your business or already have an existing one, we can help you with the ERP integration services. Along with this, we also provide e-commerce development solutions for Best e-commerce platforms such as Shopify, Adobe Commerce(Magento), and Shopware. 

We have completed multiple e-commerce projects, and many are ongoing. You can contact us today and talk to our experts to get all the doubts cleared and discuss your project.

Conclusion 

ERP integration can be a difficult part of the e-commerce business; thus, maintaining some steps, such as choosing the ERP platform carefully in the budget with a team of experts to help in the process, can definitely help you achieve a good position in the market. 
Still confused about choosing the best ERP platform to integrate with your e-commerce business? Don’t Worry! As an E-Commerce Development Company, our team includes expert business and system analysts helping you to understand how to integrate eCommerce ERP and how better to implement it.