How is ERP: how to integrate ERP into an ecommerce

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

What makes eCommerce operations even more challenging is that each area often operates within separate systems, with a unique set of processes. Therefore, 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 in. 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-business take a company's operational efficiency to a whole new level, simplifying planning processes and alleviating the challenges of managing multiple systems.

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

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

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

What is ERP eCommerce integration?

ERP eCommerce 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 room for automatic synchronisation of critical business information.

In addition, it allows companies to access, manage and analyse their data within a single interface, without having to constantly switch from one software application to another.

In terms of practical application, an eCommerce platform such as Cuborio mainly 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 ecommerce and the ERP system allows it to act 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.

Simply put, eCommerce ERP integration offers a complete view of all business applications, providing instant information on overall performance and data quality. It allows companies to harmonise legacy systems into a single platform with a unified data source.

How does ERP integration of eCommerce work?

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

The integration of an ERP with the eCommerce platform plays a key role in consolidating data and streamlining various processes efficiently.

it is crucial to understand that ERP integration for eCommerce platforms is quick and easy. To connect your eCommerce 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 via Software-as-a-Service (SaaS). For these systems, you can consult the ERP software development company you have hired for precise integration instructions.

Integration methods

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

Integration platforms

an integration platform can be used as a service or the services of a third-party integrator can be used to facilitate the connection between ERP and eCommerce platforms.

Benefits of ERP and eCommerce integration

Integrating the eCommerce platform with the right ERP configuration offers extensive benefits to your company. Let's take a detailed look at the benefits of integrating ERP with eCommerce below:

Increased productivity

One of the best benefits of ERP in eCommerce is increased productivity. By consolidating data from all corners of the business, time wasted searching for information is eliminated. 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 instead of manual data management.

Improved customer reception and experience

In addition to increasing overall productivity, the integration of the e-commerce site with the ERP system improves 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 related 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.

Improved data accessibility

ERP integration not only centralises the organisation's data, but also provides real-time access to customer data. This complete accessibility to data enables smarter and faster decision-making. Integration eliminates the separation of data between 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 e-commerce operations to be seamlessly integrated with robust enterprise resource planning systems. This integration provides real-time access to crucial customer and sales data. It enables companies to make informed decisions, simplify tax management and gain a complete overview of their business.

Greater visibility and process optimisation

ERP integration for e-commerce 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 activities. By automating repetitive tasks, ERPs reduce the likelihood of errors and increase overall business efficiency. This leads to shorter processing times, increased conversions and higher customer satisfaction.

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

Cost reduction

A well-implemented ERP system can easily identify inefficiencies within your company and help you solve them altogether. In addition, eCommerce ERP integration enables real-time inventory management, facilitating timely inventory practices that avoid overstocking. This further helps the company save costs.

Key features of ERP for eCommerce companies

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

Automated Finances

Efficiently manage accounts payable and receivables by automating financial processes, reducing manual tasks and ensuring real-time updates.

Inventory Management

This function allows companies to gain complete control over inventory and track quantities, positions and costs to avoid overstocking and simplify order fulfilment for different products and warehouses.

Consolidated CRM

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

Shipping and Distribution

This software enables companies to streamline shipping and distribution activities with automation, including label generation, order tracking, reducing manual errors and improving efficiency. This is especially beneficial for high-volume sellers and companies with multiple warehouses.

Multi-channel integration

This feature enables seamless integration of the 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

Allows companies to access real-time analysis and reporting tools that provide information on sales trends, customer behaviour and inventory performance, helping them to make informed decisions and adapt strategies accordingly.

Processing returns and refunds

Makes room for streamlined 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 crucial 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 usually rely on ERP solutions that enable seamless integration of different software applications. The most commonly used ERPs in the B2B sector include:

Microsoft Dynamics

It combines CRM, ERP, productivity applications and artificial intelligence tools to improve business processes and customer relations.

SAP

A modular cloud-based ERP with real-time functionality and the power of AI and analytics. It offers process automation and customised 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 order-based production shops, it offers estimating, accounting, resource planning, customer management and analytics.

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 implement seamless B2B eCommerce ERP integration solutions, it is crucial to follow some key steps that can help you develop your integration strategy. In addition, working with a dedicated business software development company for expert guidance can help you pave the way for an efficient and seamless ERP eCommerce integration that optimises your operations and maximises your company's potential.

Cloud ERP eCommerce integration process

Identifying eCommerce applications and platforms

During this phase, you determine the eCommerce platforms you want to integrate with your ERP. Whether it is a single platform or multiple applications, it is essential to be clear in your mind.

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 priority. Simplifying this process can provide the efficiency and accuracy needed when it comes to ERP integration for e-commerce.

Identifying 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 crucial to effectively streamline and automate business processes.

Choosing the right ERP

now is the time to choose the right ERP system for your needs. it is crucial 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 according to their business needs. This gives them the opportunity to customise every aspect of the ERP system, ensuring perfect alignment with their unique workflows.

Determine the integration method

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

ERP eCommerce integration best practices

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

Avoid manual data transfer or the use of complex codes. you should choose an integration tool that is in line with the specific needs of eCommerce and ERP.

Communicate with all stakeholders

Keep everyone in the organisation informed about the impact of the integration. Be sure to explain to the team how the ERP integration will affect sales channels, departmental productivity and overall business operations. Before proceeding, you must ensure that you obtain the consent of the 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 ERP eCommerce integration process. Never assume that on-premise solutions offer better security. Cloud-based iPaaS applications have more robust security protocols and compliance measures.

Collaborate with a suitable ERP development company

Although integrations generally run smoothly, even small problems 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 state-of-the-art 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 because of their ability to enhance current services and ensure readiness for future platform advancements. For eCommerce companies, 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 companies of all sizes. We thoroughly understand 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 the customer onboarding and marketing process. The solution is now deployed on the kiosks of more than 7 IKEA shops in the UAE. The furniture retail shop considers the solution as the main 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.

ERP and eCommerce Frequently Asked Questions

Q. What is ERP in eCommerce?

R. ERP integration in eCommerce is a systematic process that optimises communication and data exchange between an organisation's ecommerce platform and the 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 eCommerce?

R. Here are the various steps to follow to integrate ERP with your eCommerce platform:
Identify the eCommerce platforms and critical data to be integrated. Assess the requirements of the ERP 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 is time to define the integration method. Companies can choose between APIs, native integration or third-party solutions.
Work with an experienced business software development company, such as Cuborio, for expert guidance and assistance throughout the process of integrating e-commerce with ERP.

Q. What are the benefits of integrating eCommerce with ERP?

R. The integration of ERP and eCommerce brings many benefits to businesses, such as increased productivity, better customer experience, increased accessibility to data, streamlined processes, cost savings and improved decision-making capabilities. Integrating eCommerce with ERP streamlines business operations, benefiting employees and customers while providing valuable information for growth and efficiency.