What is ERP Ecommerce? - IntexSoft
December 27, 2023 • by Margarita

What is ERP Ecommerce?

Business
E-commerce development
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This article comprehensively explores the integration between Enterprise Resource Planning (ERP) systems and ecommerce platforms. You will discover the benefits of this combination for your online stores and learn about the best ERP solutions available today. For more personalized information, feel free to contact our experts anytime.

Reading time: 23 min.

ERP ecommerce platforms are a familiar topic for you as an ecommerce business owner.

 

Ecommerce ERPs play a versatile role, from monitoring procurement to logistics and financial management. These systems automate tasks, offer insights, and refine workflows.

 

A robust ERP software uplifts ecommerce efficiency, allowing websites to achieve more while utilizing fewer resources.

 

On a global scale, the ERP market is poised to hit $100 billion by 2025, boasting an array of significant players. To make informed decisions about integrating a new system, decision-makers must grasp ERPs’ full potential and limitations.

 

In this post, IntexSoft will explore the advantages of integrating ERP with online companies. We’ll also discuss the important features to consider, how to make it work, and how to choose the right solution for your needs.

 

Understanding ERP ecommerce: explanation, key features, and benefits

 

What is ERP in ecommerce? 

 

ERP, short for Enterprise Resource Planning, is an all-in-one toolbox for businesses. It serves as a multifaceted instrument that enhances various company operations. Visualize it as a superhero for streamlining business processes. Its capabilities encompass tasks such as monitoring customers and ensuring their satisfaction (known as Customer Relationship Management or CRM), issuing invoices, sales customer order management, procuring the appropriate materials for production, closely managing supply chain operations, project management, risk management and compliance, overseeing financial transactions and allocation (accounting), business intelligence, and much more. 

 

ERP solutions have a secure and centralized data repository. So everyone in the organization right from the executives, managers and employees of different departments, clients and other stakeholders are able to access the same, updated and error-free ERP data.

 

This image illustrates the components of ERP solutions.
This image illustrates the components of ERP solutions.

 

Now, envision this superhero tool seamlessly integrating with your online store – this synergy is termed ERP ecommerce integration. This integration amplifies the potency of your ecommerce enterprise by synergizing your in-store and online sales under one big strategy.

Features of ERP for ecommerce

 

In the table below, you will discover ERP features for ecommerce that can enhance your company in the long run.

 

 

Feature of ecommerce ERPBenefits for online businesses
Customer Relationship ManagementCRM software helps retain customers by nurturing leads and offering personalized experiences. Retaining existing customers is more cost-effective than acquiring new ones. Factors like efficient shipping notifications, personalized ads, and accessible customer service contribute to customer loyalty.
Shipping and distributionPersonalized communication and finely tuned promotions. Just amalgamate customer information (every order is meticulously recorded) with sources like in-store visits.

Once an order undergoes processing in your ERP system, its status is promptly reflected in the customer’s account on the website, empowering them to monitor their order’s progression.
Smart inventory management and replenishmentSeamless inventory synchronization due to linking your ERP with your website facilitates. As a customer places an online order, the ERP system dynamically updates inventory figures.

This real-time display provides you an immediate overview of product availability for each item. Conversely, when stock levels are restored, both the ERP system and your ecommerce platform are simultaneously updated.
Managing inventory levelsElevating the overall customer experience. This synchronized inventory management approach mitigates customer disappointment arising from out-of-stock products.
PaymentsFollowing order verification and payment processing, the billing particulars are seamlessly transmitted to the ERP platform for handling by your accounting department. Frequently, the ERP system autonomously manages payment reminders.

Benefits of successful ERP e-commerce integration

 

Integrating an ERP system can offer numerous advantages to ecommerce websites. Due to their fast-paced operations and high transaction volumes, adopting a dedicated solution equipped with automation features and links to financial data can lead to significant benefits. Here, we’ll explore some of the distinctive advantages that ecommerce businesses can experience when integrating their ecommerce platforms with ERP systems.

 

  • Improved sales insights: ERP integration provides ecommerce systems with a unified view of sales data from various sources, ensuring a seamless omnichannel experience for customers.

 

  • Boosting operational efficiency: ERP software automates tasks and streamlines workflows, increasing productivity, reducing manual errors, and enabling e commerce businesses to achieve more in less time.

 

  • Amplified revenue: ERP’s multifaceted benefits, encompassing increased productivity, streamlined business processes, and accurate enterprise resource planning, contribute to revenue growth.

 

  • Fostering сustomer loyalty: ERP’s CRM capabilities enable personalized engagement, leveraging customer data for tailored interactions that nurture lasting relationships.

 

  • Empowering operational clarity: ERP’s interactive dashboards enhance visibility into processes and projects, facilitating agile decision-making and operational refinement. They provide real-time insights, enabling stakeholders to monitor operations and performance metrics at a glance. This enhanced visibility allows ecommerce businesses to swiftly adapt strategies based on changing conditions.

 

Approaches for implementing ERP in e commerce

 

When companies integrate ERP and ecommerce, they should understand key approaches. Choosing the right deployment for your ecommerce ERP software depends on specific needs. While the cloud often fuels innovation, it may not always be the best fit for critical business functions. The level of customization and flexibility can vary significantly.

 

There are three ways to implement ERP ecommerce system: 

 

  • On-premise: Under this model, ERP systems are hosted on servers owned and operated by your company. This is a prevalent choice in industries with strict regulations like healthcare or finance, prioritizing data security and compliance.

 

  • Cloud: Your systems reside on third-party cloud servers like Amazon Web Services, Microsoft Azure, or Google Cloud Services. Cloud-based ERPs are known for their ease of setup and launch, although concerns about long-term costs are rising. This option is trendy due to its user-friendly nature.

 

  • Hybrid: Hybrid models bring together the best. Sensitive data, such as financial records, can remain on-premise, while other core business functions leverage the agility of the cloud. This hybrid approach appeals to ecommerce businesses with significant legacy components, offering a balanced solution.

 

Examples of ERP software 

 

When selecting an ERP software, businesses should consider factors such as their industry, size, scalability, customization options, integration capabilities, and overall business goals. ERP software plays a crucial role in modern businesses by providing a holistic approach to managing operations and fostering growth in an increasingly competitive market.

 

Here are some notable examples of ERP e commerce systems that cater to various business needs and industries:

 

  • Microsoft Dynamics GP: Renowned for its comprehensive financial management capabilities, Microsoft Dynamics GP is favored by organizations seeking robust financial and accounting tools.

 

  • Odoo: With a modular approach, Odoo offers customizable ERP solutions that can be tailored to specific business needs, making it a versatile choice.

 

  • SAP: A global leader, SAP offers a wide range of ecommerce ERP software solutions tailored to different industries, making it a go-to choice for online stores with diverse needs.

 

  • Sage: Sage ecommerce ERP systems are respected for their flexibility and scalability, making them suitable for medium sized ecommerce businesses and larger enterprises.

 

  • Epicor: Epicor’s enterprise resource planning systems are industry specific business software designed for manufacturing, distribution, and retail, providing tools for efficient supply chain and inventory management.

 

  • Oracle NetSuite: A cloud ERP, NetSuite is known for its versatility, providing end-to-end business management, including finance, customer relationship management, and e-commerce capabilities.

 

  • Intuit QuickBooks: Widely recognized for its user-friendly interface, QuickBooks offers retail accounting and financial management solutions that cater to small and medium-sized businesses.

 

  • Blueprint OneWorld: This solution focuses on legal and financial management, which is especially beneficial for commerce solutions dealing with compliance and regulatory requirements.

 

  • Bitrix24: Bitrix24 stands out as an all-in-one platform combining ERP and collaboration tools, making it a favorite for businesses seeking integrated communication and management.

 

  • Dynamics by Microsoft: This ERP suite from Microsoft covers various aspects, including finance, sales, and customer service, appealing to businesses looking for a well-rounded solution.

 

 

Let’s learn more about some of the most popular options today.

 

Microsoft Dynamics GP

 

 

 

Microsoft Dynamics goes beyond traditional ecommerce software – it’s a suite of powerful business tools crafted by Microsoft. Its goal is to help businesses of all sizes embrace digital transformation across various areas like sales, marketing, customer service, operations, and HR. Importantly, Microsoft Dynamics serves as both an advanced customer relationship management and ERP ecommerce software.

 

This image shows what Microsoft Dynamics is composed of.
This image shows what Microsoft Dynamics is composed of.

 

Some standout features of Microsoft Dynamics include:

 

  • Customer management.

 

  • Easy searching, filtering, and organizing data based on multiple criteria.

 

  • Seeing a history of interactions to make informed decisions.

 

  • Leveraging AI for intelligent business decisions.

 

  • Running email campaigns with a dedicated marketing module.

 

  • Automating email communications.

 

  • Creating quotes and invoices accurately.

 

  • Handling customer service and support tickets effectively to improve customer satisfaction.

 

  • Offering real-time customer chat for instant interactions.

 

Pricing 

 

It’s important to note that Microsoft Dynamics isn’t free, but you can explore its capabilities with a 30-day trial. This trial period gives the chance to explore how Microsoft Dynamics can benefit ecommerce businesses before owners decide to invest financially.

 

Odoo

 

 

Odoo emerges as a transformative force. With a global footprint encompassing 120 countries, this powerhouse offers a suite of applications to span a broad spectrum of ecommerce operations.

 

Odoo’s modules include CRM (customer relations), accounting, invoicing, inventory and workforce management, website creation, HR management, and project management.

 

You can empower ecommerce business with Odoo:

 

  • Seamlessly launch and manage your website.

 

  • Navigate intricate HR management landscapes with ease.

 

  • Achieve precision in inventory and stock management.

 

  • Elevate marketing endeavors through dedicated modules.

 

A pivotal aspect of Odoo’s appeal lies in its swift and streamlined invoicing mechanism. Invoices can be efficiently dispatched to customers via email, complemented by user-friendly options for online payments through renowned platforms like PayPal, Authorize.net, Stripe, and others.

 

Odoo presents the strategic advantage of consolidating essential tools for ecommerce company management under a unified umbrella. However, this convenience comes with costs that scale as you expand your toolkit.

 

Following a pay-per-use model, Odoo’s pricing structure hinges on two pivotal factors:

 

  • The user count.

 

  • The nature and quantity of chosen applications.

 

Pricing 

 

The pricing structure for this ecommerce ERP system is designed to accommodate different needs and budgets. Generally, the cost falls within $12 to $36 per user per month, depending on the specific modules you choose. 

 

SAP

 

SAP stands out as a powerhouse among cloud ERP software, holding a top spot among the most influential business software companies globally.

 

This ecommerce ERP offers a wide range of solutions designed to cater to businesses of all sizes – from small and medium-sized enterprises to large ecommerce companies. 

This image illustrates how SAP operates within ecommerce companies.
This image illustrates how SAP operates within ecommerce companies.

 

SAP’s ERP ecommerce integration brings together a variety of functions, including:

 

  • Smooth management of commercial tasks like estimates, invoices, and customer orders.

 

  • Simplified handling of customer purchases and relationships with suppliers (supply chain management).

 

  • Streamlined inventory management for enhanced efficiency.

 

  • Warehouse management and optimized logistics operations for smooth execution.

 

  • Strengthened business capabilities with robust CRM (customer relationship management) features.

 

Pricing 

 

The cost of SAP cloud ERP ecommerce software depends on various factors, including:

 

  • The number of users for each module.

 

  • Your preference for hosting, whether on-premise or in the cloud.

 

  • Additional services like implementation, support, and training. 

Sage

 

 

Sage offers a very well-developed platform designed to streamline ecommerce business management. Its focus revolves around an entirely online tool for managing accounting and invoices. Sage’s ERP ecommerce software proves valuable for a diverse range of users, including self-employed individuals, professionals, and small to medium-sized enterprises, benefitting from its adaptable capabilities.

 

Sage’s ERP ecommerce integration encompasses the following:

 

  • Real-time reporting for timely insights

 

  • Synchronization of online and offline sales customer data

 

  • Tools to fine-tune and optimize the ecommerce platform

 

  • Integration of SEO tools for improved online visibility

 

  • Customer-centric shipping solutions for an enhanced shopping experience

 

  • Accurate tax calculations for streamlined financial processes

 

  • Robust data security measures to protect sensitive information

 

Pricing

 

Sage’s ERP ecommerce offers a generous 3-month free trial period, allowing ample time for exploration. Transitioning to the paid plan starts at an affordable rate of $12 per user per month. 

Epicor

 

Epicor Software stands as a global leader in offering specialized enterprise software solutions. With over 45 years of experience, the Epicor ERP platform provides flexible business software designed specifically for manufacturing businesses.

 

With a deep understanding of various industries, Epicor ERP software can help your online business perform better, increase profitability, and facilitate smoother growth.

 

Epicor ERP offers a wide array of features, including:

 

  • Efficient logistics (supply chain management).

 

  • Accurate inventory management and stocktaking.

 

  • Detailed customer order statistics.

 

  • Streamlined project management.

 

  • Effective resource management.

 

  • Improved graphics management.

 

  • Robust database management.

 

  • Comprehensive training management.

 

  • Seamless human resources management.

 

  • Dynamic commercial management.

 

  • Efficient invoice management.

 

  • Comprehensive sales management.

 

  • Online customer assistance (Forums, Tutorials, etc.).

 

  • Responsive technical support (Phone, Email, Chat, etc.).

 

Epicor ERP is designed to cater to the needs of today’s users, providing flexibility, choice, and agility to drive growth and opportunities for your online business.

 

Pricing

 

Epicor presents an attractive deal with a $175 per user per month pricing model with a wide range of features that can genuinely uplift your ecommerce endeavors. The best part? This cost-effective pricing means you can fully leverage Epicor’s capabilities without putting a strain on your budget.

 

Oracle NetSuite

 

Oracle NetSuite offers unique advantages that go beyond the capabilities of traditional spreadsheets and standalone software.

 

Key benefits:

 

  • By centralizing operations, this cloud ERP software helps reduce operational costs.

 

  • Integration and automation within NetSuite lead to improved productivity.

 

  • Users can personalize dashboards to monitor progress and essential metrics.

 

  • The ecommerce ERP software operates in the cloud, ensuring data accessibility from anywhere and on any device.

 

Pricing

 

NetSuite SuiteSuccess packages are available in two editions: Standard and Premium, each offering distinct sets of features. The pricing for these editions also varies, with the Standard edition starting at $1,299 per month and the Premium edition going up to $9,999 monthly. This flexible pricing approach empowers ecommerce businesses to select the edition that aligns with their specific needs and budget, providing them with a tailored and cost-effective solution.

 

Final words: E commerce ERP system to improve business management

 

As an ecommerce business grows, its operations become more complex. This is when an ERP solution becomes valuable. The strength of successful ERP ecommerce integration lies in its ability to support scalability and expansion. By identifying ways to work more efficiently and improving procedures, these integrations are crucial for businesses of all sizes – whether they’re startups, medium-sized ecommerce ventures, or established industry leaders.

 

These ERP ecommerce integrations influence customer interactions and internal processes, creating a more robust business structure. The result is a business well-equipped for enhanced performance and adaptability.

 

Contact us to learn more and take the first step. Let’s establish a successful ERP ecommerce integration for you company.

 

Frequently Asking Questions 

 

What is ERP ecommerce?

 

ERP (Enterprise Resource Planning) for e-commerce is a software that streamlines and centralizes various business operations. It manages inventory, orders, customer relationships, and finances, providing a unified view and automating processes. Think of it as your business’s smart assistant, keeping things organized and efficient, so you can focus on growth.

 

What are the benefits of using ERP software for ecommerce?

 

Using ERP software for e-commerce brings numerous benefits to businesses of all sizes:

 

  • Streamlines processes, reducing manual work and improving productivity.

 

  • Integrates various functions like inventory, orders, and finances into a unified e commerce platform.

 

  • Minimizes errors by automating data entry and ensuring consistent information.

 

  • Optimizes stock levels, preventing overstock or shortages.

 

  • Enhances customer experience by providing a comprehensive view of interactions.

 

  • Enables informed decision-making with up-to-date insights.

 

  • Scales with your business, accommodating growth and expansion.

 

  • Reduces operational costs through process efficiency and resource optimization.

 

  • Provides in-depth reports for strategic analysis and forecasting.

 

  • Enhances agility, responsiveness, and customer satisfaction, setting you apart in the market.

 

Which ERP software is best for ecommerce?

 

There are a few best ERP software options for ecommerce that are often considered suitable for ecommerce businesses based on their features and capabilities:

 

  • NetSuite (cloud based ERP software with modules for inventory, orders, finance, and CRM).

 

  • SAP Commerce Cloud (comprehensive solution integrating ecommerce, catalog, and order management).

 

  • Magento Commerce (ecommerce platform that can integrate with ERP for backend processes).

 

  • Microsoft Dynamics 365 Commerce (ERP system with ecommerce capabilities, managing sales and inventory).

 

  • Shopify Plus with ERP integration (enterprise ecommerce platform that can integrate with various ERP systems.

 

  • Epicor Commerce Connect (ERP solution for managing online sales, customers, and inventory).

 

What key features should an ERP platform have for ecommerce?

 

When searching for an ERP platform suitable for ecommerce, it’s crucial to identify essential features that can optimize your online business operations. Here are some vital aspects to consider:

 

  • Real-time inventory management.

 

  • Automated order processing.

 

  • Seamless integration.

 

  • Multi-channel support.

 

  • Centralized customer management.

 

  • Financial tools.

 

  • Analytics.

 

  • CRM integration.

 

  • Mobile access.

 

  • Scalability.

 

  • Security.

 

  • Customization.

 

  • User-friendly interface.

 

  • Third-party integration.

 

  • Supplier management.

 

  • Returns processing.

 

  • Data synchronization.

 

  • Reliable support and training.

 

How can ERP software help with ecommerce inventory management?

 

Ecommerce ERP software enhances ecommerce inventory management by offering real-time monitoring of stock levels, automating order processing, and integrating inventory data from various channels. It helps maintain optimal stock levels to avoid shortages or excess, and supports effective collaboration with suppliers for timely restocking. Furthermore, many ERP systems improve returns handling, enable batch and lot tracking for quality control, provide valuable insights through analytics, and seamlessly integrate with shipping for precise order fulfillment. They also ensure accurate financial records by representing inventory values.

 

What role does ERP play in ecommerce businesses?

 

ERP software is like the command center for ecommerce businesses. It brings together different parts of the business, making things run smoothly. It helps manage stuff like keeping track of how much stuff you have, processing orders so customers get their things on time, and using data to figure out what’s working and what’s not. ERP also keeps all the customer info in one place so you can give better service. It takes care of money matters like sending invoices and calculating taxes. If you run out of things, it helps you work with suppliers to get more. As your business grows, ERP software grows with you and connects all the different parts so they work well together. 

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Margarita

Industry Expert

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