eCommerce ERP Integration & The Questions Around It…

In this blog you will read about the following topics:
- Latest stats on eCommerce ERP integration
- Why you should integrate your eCommerce with an ERP software in the first place?
- How to know if your eCommerce business is ready for an ERP integration with your e-store?
- What are the benefits of eCommerce ERP integration?
- What features should you look for in an ERP Software?
- What are the drawbacks of manual processes?
- Are There Specific Improvements that one should always look for while getting an eCommerce ERP integration?
- What is the Next Evolution in Terms of Feature Improvements That Will facilitate Better eCommerce and ERP Integration?
- What Are the Obstacles to B2B eCommerce Integration?
- What to expect from eCommerce ERP Integration from an integration service provider?
ERP or Enterprise Resource Planning is software that acts as a powerful catalyst for an e-commerce business of a start-up, small and medium businesses or larger organizations. It is a centralized and integrated system that helps a business across complex functionalities of their selling journey — from inventory management to management, distribution and customer experience.
We believe in only the things we can measure, here are some of the statistics from reputed organizations across the globe on the benefits of integrating an ERP software with an e-commerce store or website.
- Customer satisfaction with their chosen and implemented ERP software increased to 68% this year. (Panorama Consulting 2018 ERP report)
- 95% of businesses experienced an improvement in their processes after implementing an ERP system. (Panorama Consulting 2018 ERP report)
- Among the popular reasons for implementing ERP are to improve business performance (64%), to position the company for growth (57%), and to reduce working capital (57%). (Panorama Consulting 2018 ERP report)
- The top three benefits gained from ERP are reduced process times, increased collaboration, and centralized enterprise-wide data. (TEC ERP Software Facts & Stats 2018)
- Lack of ERP software can lead to redundant data (35%), unaligned business systems (33%), and the inability to track business processes in real-time (28%) (The Aberdeen Group)
In this blog, we will talk answer the frequently asked questions that will throw light upon building an ideal eCommerce infrastructure by integrating ERP software with an eCommerce website.
Why you should integrate your eCommerce with an ERP software in the first place?

Regardless of the e-commerce front-end platform that you use– Magento, Shopify, or WooCommerce there is always a need to pass information from the frontend to the backend and vice versa. A bidirectional ERP software can help with the same an also provide a seamless user experience allowing a free-flow of information between both the front-end and the back-end.
To be precise, after an online order is received, tasks that follow like manually entering sales orders and customer information into the database are prone to errors. With ERP software, you can not only minimize but completely mitigate such manual errors.
This Integrating also introduces a whole lot of automated tasks and scheduled data sharing. It allows you to leverage your data to the maximum. Also, as your business grows and the demand for sales increases you have no option but to have smart and automated software.
How to know if your eCommerce business is ready for an ERP integration with your e-store?
#1. You sense a lack of sync
When it comes to an e-commerce business you have to manage a lot of separate departments simultaneously for a sale to happen. The more separate components you have in your business, the more you have to work to keep everything in sync.
This might not seem like a big issue during the initial days of your business when there are many independent systems and they are not overly large yet. However, once things your business grows you will need a more synchronous set of systems working for you, a kind an ERP software might facilitate.
#2. Data is not used to its full potential
Having a huge clutter of data is not enough to run an eCommerce business. When it comes to selling things online you need to understand the customer behavior across their buying journey through the breadcrumbs they leave behind. Also, marketing decisions must be made at a rapid pace to keep up with the changing tides of the marketplace, and you can’t wait to find the particular data you’re after.
ERP integration will speed up the whole process by streamlining your data under one comprehensive system.
#3. Mobility for your team
Not just speedy data, you need mobility as well.
Your employees should be able to shift fluidly between different silos of your company in real-time as they are dealing with customers. ERP integration allows employees with greater mobility by letting them track the various systems under a single umbrella while providing smoother access so they don’t stumble while moving from department to another.
#4. Lack of a holistic management
ERP integration with your eCommerce website allows for more speedy and mobile data access. Furthermore, the management of your business’s vital systems becomes much easier and effective.
For example, you can apply proposal generation to the creation of orders without having to shift between CRM and ERP because of the reduced time constraints. Not only this with integrated systems, but your inventory, quote, and other management needs will also vastly improve.
#5. Too much manual labor
There is no doubt to the fact that data entry can become tedious. The trouble also begins when you have the ERP and other systems like customer relationship management (CRM) as two different systems that force you to enter the same data multiple times.
#6. You can’t afford the overheads
ERP integration can help you cut down your overheads. With one overall system, there will be no need to spend extra time and money for specialized training and maintenance on individual and separated components that you would have to spend without an integrated system.
#7. Lack of understanding of consumer behavior
This is in continuation of point no 2, an ERP helps to understand how the needs of customers use the data to engage them in relevant products and services. It is no wonder that the potency of your marketing strategy depends on how well do you recognize your customer’s behavior. Data integration tools help ensure that you have a 360-degree vision of customer data by combining all the separate focus areas into one overall layout.
What are the benefits of E-commerce ERP integration?

Now that you know what when does your business need an ERP integration, here are the benefits you can enjoy with after integrating your eCommerce website to an ERP software:
Top-notch Customer experience
Top-notch customer service requires integration. In today’s world when purchases are made at the comfort of one’s home in just two clicks, B2B companies face more demanding buyers online than they ever have. Today’s tech-savvy customers expect conveniences such as the ability to access their full account histories and past invoices along with product research, reviews and ratings by others, information about the product warranty, etc.
No anxiety for the delivery date
The integration of your eCommerce website with ERP software enables customers to perform dozens of operations online and also allows them with information such as getting accurate inventory figures in real-time. Furthermore, buyers can be automatically informed when the product is shipped along with the entire route their product makes before getting delivered to them.
More Control to the Customers
Buyers can choose from several shipping options based on lower costs, faster deliveries, delivering to a nearby pick-up spot, special handling, etc. From complex split shipping to importing products to the process of shipping to multiple addresses integration avails a customer with all.
Transparent Pricing
Customers will be able to see the price breakdown clearly, there will be no anxiety regarding the correct price of any product. Those to whom for lower pricing tiers apply will receive the correct prices when they meet the requirements. Customers will also be able to apply coupon codes and special pricing upon request. An integrated system can also offer more payment methods to fast track invoice payments.
Automated Features
An integrated system also enables automated features that B2B customers need and love such as onsite currency conversions, tax calculations from multiple tax jurisdictions, and custom catalogs based on their ordering habits.
Streamlined Operations
Integration makes data accessible to all the departments in real-time to reduce delays, it also gives out ordering alerts and reduces labor costs. Furthermore, paperwork is minimized as information is stored securely in company databases where everyone who needs the data can get the intelligence instantly in different formats.
Fast Actions
Customer records are updated quickly, and if there is cancellation from either the buyer or seller’s side, the inventory figures reflect the change immediately. ERP integration removes the need to wait on confirmation paperwork.
Better Inventory Management
An Integrated system compiles information from all online sales channels and brick-and-mortar stores to fast track the arrangement of products and supplies, update inventory levels and also predict seasonal adjustments and track inventory in real-time to predict sales.
Business Growth
There are two ways to make increase the net revenue, and they are simply — reduce costs and increase sales. Fortunately enough the benefits of ERP integration cover both of them. Great customer service is best for CRO. A good purchasing experience can also retain the customer. COGs and revenue are both directly, positively affected by a well ERP eCommerce integration.
What features should you look for in an ERP Software?

Even though the decision to move to an integrated ERP system is not rocket science but it is nonetheless a big step, so it is of importance to itemize the main things you are looking for when choosing an ERP software. The select ERP software of your choice should not only help you manage your business processes with ease, but also should offer specific functionalities to be able to support the company well into the future with business needs, customer demands and technological advances.
Based on industry research and our own experience as an ERP integration provider, here are the top ten things we think you should look for while selecting a new ERP system.
1. Suitability
This is an obvious point but nonetheless a kind that should not be missed. There should be good sync between the ERP software’s functionality and the needs of your business. Most of the times it so happens that businesses select a system based on its popularity rather than its utility. Organizations must be seen whether the fit and functionality of the software is actually needed for them, including industry-specific features and functions.
2. Versatility
This point also goes in line with cost-effectiveness. How versatile is your ERP software? Would you need to buy a number of point solutions alongside the ERP to meet all the functionality needs of your business? An ideal ERP software should be a one-stop solution for most of your e-commerce business management functions. So invest in a single software system that is versatile as it will be more cost-effective and will require less money spent on development and interfacing between different silos.
3. Reporting and Analytics
The modern world is data-driven and thus thrives on analytics. An ERP with inbuilt BI, analytics, and reporting helps companies to stay on top of business trends, performance, KPIs, and KBIs. There is no reason to spend more on a separate and disconnected reporting system while you can purchase an ERP with all the same built-in functionalities you need.
4. Integration
Integration is key for business as it reduces duplication of data due to manual entry and to maintain easy communication throughout the company. Many software packages promise full integration but do not deliver the same.
5. UI and CX
While talking about an integrated solution that manages all aspects of a business, customer experience cannot be in exclusion. An ideal User Interface (UI) should be consistent, this means that the software should look and feel the same throughout the system and in every module. This will help you to not learn everything again each time you use a different part of the software.
6. The Price
The price of ERP software should also be a point to consider. Ask yourself: if the cost is a one-time payment or a recurring one? Will you require extensive customization to meet your business needs with the software? The total cost of an ERP system includes not only the software but also the implementation services. Thus while selecting a new ERP system, it is important to take into consideration not only how much the software will cost upfront, but how much you will be paying for customization, support and subscription fees.
7. Hosting
There are many points to consider along with the decision to host on-site or in the cloud-like the size of the company, the internet speed, number of users, etc.
8. Customizable
It is important to buy an ERP software that is customizable in each of its modules so as to make it in accordance with your business needs.
9. Social Media
A key aspect of next-generation ERP systems is integration with social media. The ability to share social media sites is important to organizations that are wanting to stay connected to other members of the industry, their customers and also with the latest trends.
What are the drawbacks of manual processes?
Here are some of the major drawbacks of not having your e-commerce business automated:
- Shipping addresses could be entered wrong, resulting in the failure in shipments.
- Overselling can happen due to Incorrect inventory levels
- Product information could be wrong or misleading.
All in all, when two-way ERP and e-commerce integration is not in place, your entire end-to-end business is at stake.
Are There Specific Improvements that one should always look for while getting an eCommerce ERP integration?
Yes and no. Yes because there are going to be specific improvements and no because these specific improvements are going to be different for different department heads in the company.
There are different important benefits that are relevant to explain each role within a company. If we are speaking to a CEO or a president, they will be more interested in reducing company overheads, minimizing errors, and increasing the profitability for the business as a whole. If we are talking to a CTO, they will be more keen on optimizing the processes and removing the requirement for the grunt work associated with manual integration. And lastly, If we are talking to are a marketing director then late shipments, returns, and customer shipments are going to be the aspects of the business they would be interested in.
In conclusion, find a versatile software that meets the needs of your entire business.
What is the Next Evolution in Terms of Feature Improvements That Will facilitate Better E-Commerce and ERP Integration?
Well, there is one area pertaining to financial management that businesses have come across repetitively, is when an e-commerce site uses a payment gateway that is not supported by the ERP software. This tends to cause issues especially for B2B companies that are doing credit cards on file or vaulting for their wholesalers. A good ERP integration should try to make sure that the client uses the same payment gateway, on both the ERP and e-commerce systems. This way the integration becomes seamless and the tokens related to the payment can be moved back and forth or charge the credit card on file.
In cases where it is not possible to use the same payment gateway on both systems, an integration shall allow us to do the reverse. For instance, if a client is using a payment gateway on their website that is not supported in the ERP system, then a custom integration to the ERP should be facilitated to that payment gateway to allow B2B credit card-on-file transactions.
That is the one area businesses run into frequently. And, by frequently, we mean a few times a year.
What Are the Obstacles to B2B eCommerce Integration?
Most of the times companies overlook their need to integrate ERP systems with eCommerce is often because of cost or the business disruption the integration may possess by having to change existing systems.
And this is understandable, as this is not a minor thing.
We know that.
What we also know is, after integrating e-commerce websites with an ERP software hundred of times for B2B customers in dozens of different industry sectors all over the world, that the cost quickly becomes worthwhile when the benefits are seen.
Benefits namely:
1. Your customer’s end to end experience and
2. Enriching your operations both short-term and long-term.
What to expect from an eCommerce ERP Integration vendor?
If you want your eCommerce business to thrive successfully online and be able to keep up with increased demand for online purchasing, your eCommerce strategy should be able to include integration to your ERP, accounting and inventory software, meeting your business needs completely.
An ideal integration vendor should provide easy solutions to complex eCommerce problems, allow ERP integration, which in turn allows you to easily account for new orders and satiate them, regardless of when or where the sale is made. The solutions should also allow you to provide customers with access to their live account information and promoting further efficiencies through customer self-service as well.
Your customers along with being able to access their accounts online around-the-clock should also be able to view their account information. They should also be able to see their order history, real-time price, their invoices, and the real-time stock available to them can all online.
Getting your eCommerce website integrated with an ERP software from a good vendor will allow you top-notch benefits, allowing your business to thrive in today’s cut-throat competition. Hereunder are the benefits an ideal vendor can provide you with:
Here are the other benefits of getting eCommerce ERP Implementation Service from a reputed vendor:
- Save time by reducing manual entry.
- Increase efficiency while reducing errors, when entering an order, inventory, item, customer and shipping data.
- Streamline operations with inventory synchronization, tracking updates, and providing accurate inventory levels to customers automatically.
- Automatic notifications for customers to track shipments
- Easily manage price and product changes to the inventory.
- Have the flexibility in adding multiple online (web-stores and marketplaces) and offline (brick & mortar) sales channels, without needing to lose operational efficiency.
- No need to invest in extra resources when demands increase.
Even though everyone in the eCommerce business is getting integration with ERP and that the integration is knowledge to everyone, it is still necessary to understand your business and customers’ needs, whether the ERP software will satiate those needs and also find a vendor that provides seamless integration experience. We can say that ERP and eCommerce integration is a must when we are trying to bring home the bacon with our online website.
