How is ERP: how to integrate ERP into an ecommerce

Managing an e-commerce business is a complex process that requires effective management of multiple interconnected components. This includes various activities such as resource planning and allocation, inventory management, internal communications, etc.

What makes e-commerce operations even more challenging is that each area often operates within separate systems, with a unique set of processes. For this reason, as a business owner, it is crucial to ensure that all components work together seamlessly to achieve overall efficiency and success.

This is where enterprise resource planning (ERP) tools come into play. These sophisticated systems are designed to synthesise the management of critical resources, such as supplies, personnel data, financial data, and so on, into a single, comprehensive platform. ERP integrations for e-commerce allow you to take your business's operational efficiency to a whole new level by simplifying planning processes and alleviating the challenges of managing multiple systems.

Integration not only streamlines business operations, but also improves your ability to make data-driven decisions, ultimately contributing to the success of your e-commerce business.

This article will help you understand everything about e-commerce ERP integration and the many benefits it can bring to your business. In addition, we will help you examine the characteristics of effective ERP software.

So let's start by delving into the details of ERP integration with eCommerce systems.

What is eCommerce ERP integration?

eCommerce ERP integration is a systematic process that facilitates communication and data exchange between the eCommerce platform and its enterprise resource planning (ERP) system. This eliminates the need to manually transfer data and makes way for the automatic synchronisation of critical business information.

It also allows businesses to access, manage and analyse their data within a single interface, without having to constantly switch between software applications.

In terms of practical application, an eCommerce platform such as Cuborio primarily handles customer-centric functions, including order processing, payment collection and inventory management. On the other hand, an ERP system manages broader aspects of a business, such as financial operations, supply chain management, human resources, and other core functions. By integrating these two essential systems, an organisation can achieve greater operational efficiency and productivity.

Integration between e-commerce and the ERP system allows it to serve as a centralised repository through data aggregation. This streamlined approach not only simplifies day-to-day business operations, but also has the potential to automate various processes, significantly improving overall productivity and data accuracy.

In short, e-commerce ERP integration provides a comprehensive view of all business applications, providing instant insight into overall performance and data quality. It allows companies to harmonise legacy systems into a single platform with a unified data source.

How does e-commerce ERP integration work?

E-commerce platforms such as Cuborio, Magento, Shopify, and Cs-Cart Italia are tools that allow you to sell products through web and mobile interfaces while providing basic back-end functionality. However, these platforms differ from e-commerce ERP solutions that bridge the gap between front-end and back-end processes.

Integrating an ERP with your e-commerce platform plays a key role in consolidating data and streamlining various processes efficiently.

It is essential to understand that ERP integration for e-commerce platforms is simple and quick. To connect your e-commerce platform with a retail ERP, consider the following key points:

Type of ERP system

Determine whether your ERP system should be cloud-based and offered through Software-as-a-Service (SaaS). For these systems, you can consult the ERP software development company you have hired to obtain precise instructions on integration.

Integration methods

Using a point-to-point method, you can establish a direct connection between your ERP modules and your e-commerce platform. However, this approach often results in limited scalability and fewer customisation options for your existing ERP modules.

Integration platforms

You can use an integration platform as a service or engage the services of a third-party integrator to facilitate the connection between ERP and e-commerce platforms.

Advantages of ERP and e-commerce integration

Integrating your e-commerce platform with the right ERP configuration offers significant advantages for your business. Below are the advantages of integrating ERP with e-commerce in detail:

Increased productivity

One of the best advantages of ERP in eCommerce is increased productivity. By consolidating data from all corners of the business, you eliminate time wasted searching for information. ERPs create a unified, centralised data system that helps harmonise departments and workflows. In addition, ERPs automate certain tasks, allowing employees to focus on other vital responsibilities.

For example, Amazon leverages ERP systems to optimise logistics and inventory operations. With the help of data consolidation and task automation, the e-commerce giant increases productivity and ensures efficient order processing and on-time deliveries. This integration allows Amazon employees to focus on strategic initiatives rather than manual data management.

Improved customer service and experience

In addition to increasing overall productivity, integrating your e-commerce site with your ERP system allows you to improve the customer experience. The ability to offer better customer relationship management (CRM) capabilities, combined with automated payment and tracking processes, helps create a smoother, faster, and higher-quality experience for your customers.

Customised ERP software can also streamline and automate customer onboarding by centralising data, simplifying documentation and automating workflows. This results in a faster and more efficient process. ERP solutions can also provide real-time visibility into the status of onboarding, improving overall communication with customers and reducing errors.

Better data accessibility

ERP integration not only centralises your organisation's data, but also provides real-time access to customer data. This comprehensive data accessibility allows you to make smarter and faster decisions. Integration eliminates data silos across multiple areas and ensures that all necessary information is readily available, making tasks such as tax management easier.

For example, Shopify, a leading e-commerce platform, offers its users ERP integration options that allow them to seamlessly integrate e-commerce operations with robust enterprise resource planning systems. This integration enables real-time access to crucial customer and sales data. It allows businesses to make informed decisions, simplify tax management, and gain a comprehensive overview of their operations.

Greater visibility and process optimisation

E-commerce ERP integration is a powerful tool that simplifies and automates various processes, making them easier to manage. ERPs play a key role in this automation, simplifying accounting and order tracking tasks. By automating repetitive tasks, ERPs reduce the likelihood of errors and increase overall business efficiency. This leads to shorter processing times, increased conversions, and greater customer satisfaction.

For example, Alibaba, a global e-commerce giant, relies on ERP systems to manage its complex supply chain and digital commerce operations. Thanks to ERP integration, the organisation is able to optimise accounting and order tracking processes, resulting in fewer errors and increased efficiency.

Cost reduction

A well-implemented ERP system can easily identify inefficiencies within your business and help you resolve them altogether. Furthermore, eCommerce ERP integration enables real-time inventory management, facilitating timely inventory practices that avoid excess stock. This further helps to save on business costs.

Key ERP features for eCommerce businesses

Several key features of ERP promote efficient eCommerce operations, improved customer experience, and sustained business growth. Let's examine them in detail below:

Automated finance

Enables efficient management of current accounts and receivables by automating financial processes, reducing manual tasks, and ensuring real-time updates.

Inventory management

This feature allows businesses to gain complete control over inventory and track quantities, locations, and costs to avoid overstocking and simplify order fulfilment for different products and warehouses.

Consolidated CRM

It paves the way for better customer relationship management by standardising practices across the organisation, simplifying omni-channel reporting and facilitating better outreach to improve services and retention rates.

Shipping and distribution

This software enables businesses to streamline shipping and distribution activities with automation, including label generation, order tracking, manual error reduction, and efficiency improvement. This is particularly beneficial for high-volume sellers and businesses with multiple warehouses.

Multi-channel integration

This feature allows you to seamlessly integrate your e-commerce platform with different sales channels, such as online marketplaces, shops, and social media, to manage sales, inventory, and customer data across all channels.

Real-time analytics

It allows businesses to access real-time analytics and reporting tools that provide insights into sales trends, customer behaviour, and inventory performance, helping them make informed decisions and adapt their strategies accordingly.

Returns and refunds processing

Makes room for simplified returns and refunds with automated workflows, enabling efficient management of customer returns, exchanges and refunds while maintaining transparency and compliance.

Security and compliance

It is essential to prioritise data security and compliance with industry standards and regulations in order to safeguard sensitive customer information and ensure business continuity.

The most common ERPs for e-commerce

E-commerce companies typically rely on ERP solutions that allow for seamless integration of different software applications. The most commonly used ERPs in the B2B sector include:

Microsoft Dynamics

Combines CRM, ERP, productivity applications and artificial intelligence tools to improve business processes and customer relationships.

SAP

A modular cloud-based ERP with real-time capabilities and AI and analytics power. It offers process automation and personalised insights.

Oracle

Oracle offers a comprehensive suite of integrated applications for finance, supply chain, human resources, and CRM automation.

E2 Shop System

Designed for machine- and job-based manufacturing workshops, it offers estimation, accounting, resource planning, customer management, and analytics services.

Workday

A cloud-based ERP system for global companies, specialising in human resources, finance, onboarding, and accounting.

Odoo

Odoo is ideal for large enterprises as it effectively manages customer databases, HR activities, accounting, and communication.
To achieve seamless B2B eCommerce ERP integration solutions, it is essential to follow a few key steps that can help you develop your integration strategy. In addition, partnering with a company dedicated to enterprise software development for expert guidance can help pave the way for efficient and seamless eCommerce ERP integration that optimises your operations and maximises your business potential.

Cloud ERP eCommerce integration process

Identifying eCommerce applications and platforms

During this phase, you determine which eCommerce platforms you want to integrate with your ERP. Whether it's a single platform or multiple applications, it's essential to have a clear idea.

Identify critical data

Identify the most crucial data for integration, such as orders, customer information, or financial data, which can help you ensure accuracy and prioritisation. Simplifying this process can provide the efficiency and accuracy needed when it comes to ERP integration for e-commerce.

Identify manual processes

During this phase of cloud ERP integration for e-commerce, repetitive tasks such as invoice management or manual inventory control are performed. Identifying these manual workflows is critical to effectively streamlining and automating business processes.

Choose the right ERP

Now is the time to choose the ERP system that best suits your needs. It is essential to decide whether it should be installed on-premises or in the cloud, considering data volume and security requirements.
Companies can also choose to build a customised ERP solution from scratch based on their business needs. This gives them the ability to customise every aspect of the ERP system, ensuring a perfect alignment with their unique workflows.

Determine the integration method

Establish how to integrate your e-commerce platform with the ERP. Organisations have several options available, such as using the platform's APIs, the ERP's native integration features, or employing third-party solutions with pre-built integration processes. Partnering with a company dedicated to enterprise software development can help you manage these options effectively.

Best practices for e-commerce ERP integration

To ensure a smooth integration process and avoid the common challenges associated with this process, it is essential to follow these best practices:
Choose the right integration solution

It is advisable to avoid manual data transfer or the use of complex codes. You need to choose an integration tool that is in line with the specific needs of eCommerce and ERP.

Communicate with all stakeholders

Keep all members of the organisation informed about the impact of the integration. Be sure to explain to the team how ERP integration will affect sales channels, department productivity, and overall business operations. Before proceeding, you must ensure that you have the consent of all stakeholders.

Ensure optimal data security

Choose an integration solution that meets your data security requirements. It is advisable to make an informed decision for the eCommerce ERP integration process. Never assume that on-premise solutions offer better security. Cloud-based iPaaS applications have stronger security protocols and compliance measures.

Partner with a suitable ERP development company

Although integrations typically run smoothly, even minor issues can disrupt business processes. Choose to partner with a dedicated ERP development company that can offer access to a 24/7 support team to ensure uninterrupted operations.

Get cutting-edge, customised ERP services

How can Cuborio help you get started with a robust eCommerce ERP integration?

ERP and eCommerce integration is essential for both complex and simple IT systems, thanks to their ability to enhance current services and ensure readiness for future platform advancements. For eCommerce businesses, ERP implementation brings significant benefits to employees, customers, and overall profitability.

Cuborio is an ERP software development services company specialising in eCommerce ERP integration for businesses of all sizes. We have a deep understanding of the complexities of ERP integration and offer tailor-made solutions that align with your specific needs and IT ecosystem.

We recently developed a customised ERP solution for IKEA, the world's largest furniture retailer, revolutionising their customer onboarding and marketing process. The solution is now deployed on kiosks in over seven IKEA stores in the United Arab Emirates. The furniture retailer considers the solution to be their primary source of ROI measurement.
Our team of experts ensures you choose the right integration solution that communicates effectively with all stakeholders and prioritises data security at the appropriate level.
Get in touch with our ERP and eCommerce software development experts to future-proof your IT ecosystem, one step at a time.

Frequently asked questions about ERP and eCommerce

Q. What is ERP in eCommerce?

A. ERP integration in eCommerce is a systematic process that optimises communication and data exchange between an organisation's eCommerce platform and its ERP system. The role of ERP in eCommerce is to eliminate manual data transfer and enable automatic synchronisation of critical business information.

Q. How to integrate ERP and e-commerce?

A. Here are the various steps to follow to integrate ERP with your e-commerce platform:
Identify the e-commerce platforms and critical data to be integrated. Assess your ERP requirements and choose the right solution based on those requirements. You can simply choose between cloud-based and on-premise integration, depending on your needs. Now it's time to define the integration method. Businesses can choose between API, native integration or third-party solutions.
Partner with a company that is experienced in enterprise software development, such as Cuborio, to get expert guidance and assistance throughout the e-commerce to ERP integration process.

Q. What are the benefits of integrating e-commerce with ERP?

A. Integrating ERP and e-commerce brings numerous benefits to businesses, such as increased productivity, improved customer experience, greater data accessibility, streamlined processes, cost savings, and better decision-making capabilities. Integrating e-commerce with ERP optimises business operations, benefiting employees and customers while providing valuable insights for growth and efficiency.