ERP e‑commerce integration: How it works, benefits, and more

What is ERP e-commerce integration?

ERP e-commerce integration refers to the process of connecting an e-commerce platform with an ERP (enterprise resource planning) system. This allows for a better flow of data and synchronization between the two systems, improving accuracy and minimizing siloes in the process.
 

How does ERP-integrated e-commerce work?

ERP-integrated e-commerce works by seamlessly connecting an ERP system with your e-commerce platform, enabling real-time data syncs, as well as a centralized management of orders, inventory, and customer data.

ERP-integrated e-commerce works by connecting an Enterprise Resource Planning (ERP) system with the e-commerce platform, enabling seamless data exchange and streamlined processes. Here's how it typically operates:

1. Data Integration:
   The ERP system and e-commerce platform are linked through an integration interface. This allows for the bidirectional exchange of data, ensuring that information such as product details, inventory levels, customer data, and order information is automatically synchronized between both systems.

2. Product Catalog Management:
   When new products are added or existing ones are updated in the ERP system, the changes are reflected in the e-commerce platform. This ensures that customers see the most accurate and up-to-date product information when browsing the online store.

3. Order Processing:
   When customers place orders on the e-commerce website, the ERP system captures the details and updates the inventory levels in real-time. It also initiates the order fulfillment process, managing tasks like order picking, packing, and shipping.

4. Inventory Management:
   The ERP system maintains a centralized view of inventory levels across all sales channels, including the e-commerce platform. As orders are processed, the ERP system automatically deducts the sold items from the available stock, preventing overselling and stockouts.

5. Customer Data Sync:
   Customer information, such as contact details, purchase history, and preferences, is shared between the ERP and e-commerce systems. This helps businesses provide personalized experiences and targeted marketing efforts.

6. Financial Integration:
   ERP integration ensures that financial data, including sales revenue, tax details, and payment information, is accurately recorded and reconciled between the e-commerce platform and the ERP system.

7. Reporting and Analytics:
   Data collected from both the e-commerce platform and the ERP system can be consolidated and used for comprehensive reporting and analytics. This enables businesses to gain insights into sales performance, inventory turnover, customer behavior, and more.

8. Automation and Efficiency:
   By automating various processes and eliminating manual data entry, ERP-integrated e-commerce systems reduce errors and save time, allowing businesses to focus on growth strategies and improving customer experiences.

Overall, ERP-integrated e-commerce systems provide businesses with a centralized and efficient approach to managing their operations, enabling them to scale and thrive in the competitive digital marketplace.

What are the benefits of ERP e-commerce integration?

With ERP e-commerce integration, you benefit from a single, unified hub that eliminates system silos and provides your online buyers with accurate and reliable data, 24/7.

The impact ERP e-commerce integration can have on an organization is profound. According to our research, organizations that implement ERP-integrated e-commerce experience, on average:

• 21% increase in conversion rates
• 11% increase in returning customers
• 16% drop in order errors
• 67% increase in revenue

Statistics aside, here is how ERP-integrated e-commerce can benefit your online business:

• Save company time

The automation ERP provides eliminates time-wastage in certain key activities: customer service requests, hand-keying stock and looking up unique price arrangements, to name a few. With ERP integrated e-commerce, customers can access all this information in one place, leaving your staff able to focus on higher-level problem solving.

• Simplify order tracking

At a time when many buyers and supplies are still weary of the supply chain crisis, customers want to know where their orders are, and when they can be expected. An ERP solution updates order tracking and automatically alerts customers on the whereabouts of their orders as needed.

• Automate accounting tasks

Automated accounting work leaves less space for human error and more room for data consolation. An ERP solution that assists with accounting can ensure your business turns-in accurate numbers to the Internal Revenue Service (IRS) each year, reducing the likelihood of tax errors.

• Handle increases in demand

If your business has a sufficient ERP solution, you won’t have to worry about increased sales or e-commerce traffic. ERP software an continue to automate services for you, without the need for additional staff. Being visible online also enables you to capture more prospects, creating a more substantial pipeline for your sales staff to work on.


 

Features of ERP-integrated e-commerce

With ecommerce ERP integration, many businesses find they can save time and improve not only the customer journey, but the relationships they have with their customers as well. The specific functions ERP software can assist with depends on the type of business you own, and the software you integrate with.

However, most ERP software can optimize:

• Order placement: ERP software can assist in the order placement process by automatically setting into motion the next steps, such as calculating the shipping costs or creating a shipping label.
• Customer updates: With ERP software integrated into your e-commerce platform, automatic communications are sent to your customer. That includes when an order is received, an item has been shipped, or an item has been delayed in the shipping.
• Simplify changes: An online sale can be labor-intensive for many businesses, but ERP software can assist in changing prices within product categories.
• Inventory details: When an item is purchased or altered, an ERP system can automatically change the inventory count or product information. This keeps customers in the loop, and prevents orders placed on items that are out of stock.

By automating these systems through ERP integration, your online business runs more smoothly. This prevents the chance that a customer will order the wrong product and decreases the amount of time your team(s) need to spend fixing these errors or answering simple questions — ultimately freeing up time to drive growth in your organization.