eCommerce

An ERP System For eCommerce: Enhance Your Business with Enterprise Resource Planning

Published  |  7 min read
Key Takeaways
  • An Enterprise Resource Planning (ERP) system is a software program that manages different resources within a business or organization.
  • ERP software combines information from multiple departments and functions into one centralized database so that all aspects of the operation can be integrated.
  • ERP software supports accounting, finance, manufacturing, sales, and marketing operations as well as human resources functions such as managing payroll and tracking employee performance.
  • ERP solutions also automate everyday tasks such as inventory management and customer order fulfillment.

Building a successful two-sided marketplace requires careful consideration and evaluation of various factors. When selecting an eCommerce ERP provider, it is important to consider the company's reputation, financial stability, and track record to ensure trustworthiness and reliability.

The features you need will go a long way to determining which ERP software you're most interested in, as well as its ability to connect to other ERP systems for eCommerce for shipping, currency conversion, and more. Sometimes even the industry you serve will be a deciding factor.

How does this all work with eCommerce, and how are your selling opportunities enhanced by using enterprise resource planning? That's what we'll tackle in today's blog.

ECommerce software helps online businesses make the most of their software tools.

What Is an ERP for Online Business?

ERP solutions for online business is a software program that streamlines and automates administrative tasks associated with running an eCommerce business. This includes functions such as inventory and order management, customer relationship management, accounting and financials, analytics, and reporting.

ERP systems enable businesses to manage their processes more efficiently in order to maximize profits while minimizing costs. The use of an ERP system helps create efficiencies in the workflow, allowing businesses to focus on growing their customer base and providing the best possible service to customers.

ERP systems are often combined with customer relationship management software by integration experts. Via API connectors, it can also be integrated with shipping companies, payment hubs, and even other companies' supply chain management software.

ERP solutions can improve customer satisfaction through better business management.

ERP Systems and Their Role in eCommerce

ERP systems are essential tools for successful businesses in the eCommerce industry. They automate many of the processes involved in running an online store, from inventory management to customer relationship management, making them invaluable to a business’s success. In this blog, we will discuss what ERP systems are and how they can help your eCommerce business.

ERP and eCommerce integration can take your business to the next level.

Where to Keep Your ERP Solution

Different needs can determine the location of an ERP platform. Although Cloud solutions are often seen as innovative, they may not always be suitable for core business operations due to their rigidity or customizable nature. Working with the right integration software developers will help.

On-Premises

In this model—sometimes referred to as on-premise—the ERP is hosted on servers owned and operated by the business. This is typically found in highly regulated industries such as healthcare and financial institutions where data storage and protection are of utmost importance. For instance, a hospital group may want to host their information, and even their HIPAA-compliant website data, on-premises.

An e-commerce platform can include ERP software and improve business intelligence.

In the Cloud

The system can also be located on third-party cloud servers, including Amazon Web Services, Microsoft Azure, or Google Cloud Services. These options are easier to set up and can come at a lower cost than other solutions. They are also the best option when a company needs to scale. As it provides convenience, this has become a popular choice for businesses.

Cloud ERP software allows businesses to scale with ease.

A Hybrid of the Two

Hybrid models combine the two approaches for maximum flexibility and control over sensitive information. Financial records may be stored on-site while other core functions take advantage of the added benefits of cloud usage. Legacy modules may also benefit from this structure, allowing companies to make the most out of their resources.

A hybrid EPR platform and for your e-commerce businesses could be the solution you need.

The Key Features ERP Software Should Have

What do your business processes need your enterprise resource planning ERP software to do? While there may be add-ons you'll need later, here's the most basic list you should look for in an ERP solution.

Customer Relationship Management (CRM)

CRM systems backed by ERP solutions provide greater opportunities for companies to manage customer relationships in a streamlined way. Companies can use CRM software to gain a better understanding of their customers, as well as set up tools such as automated email and marketing campaigns. This not only helps save time and money, but also strengthens the connection between a company and its customers.

Customer management can be vastly improved by the best ERP solutions.

Financial Management

ERPs provide the power to drive digital transformation, allowing businesses to benefit from automation and AI technologies. By taking over tedious tasks, such as mundane responsibilities and duties, they free up time to focus on more meaningful objectives.

ECommerce companies can take advantage of real-time reporting when it comes to their ERP system. Having a platform that can monitor orders, accounts payable, and accounts receivable in real time allows them to gain valuable insight into how their online store is faring. Dedicated accounting software with a user-friendly dashboard often makes this process easier, proving the worth of the investment itself.

The best ERP eCommerce integration can improve accounting management.

Product Information Management (PIM)

PIM solutions make selling across multiple channels much easier. Instead of having to manually create and update listings on every platform, a PIM lets companies set up a single product information source which can be quickly edited to update all listings with the same changes. This eliminates tedious, time-consuming manual work and ensures that shoppers receive the most accurate product details.

Your eCommerce ERP software can become the source of truth on your eCommerce platform.

Inventory Control

With integrated inventory management, companies can easily keep track of their stock levels in real-time no matter where it's located. This eliminates guesswork and headaches associated with managing the supply chain and inventory levels, enabling businesses to better plan their orders and shipments and stay ahead of stockouts.

eCommerce ERP software can significatly improve inventory management.

Warehouse Management and Shipping

An ERP system simplifies logistics and order management, taking away much of the complexity involved. Automated processes such as label creation and shipping cost calculations save time for businesses. Meanwhile, providing customers with updates on their orders helps create a better overall experience.

An eCommerce ERP system can improve your shipping options.

Benefits of Implementing an ERP System

ERPs are powerful tools to help online businesses unlock the potential of digital transformation. By streamlining administrative tasks, they allow teams to focus on areas that have a higher impact and greater profitability. Many ERP systems come with automation and Artificial Intelligence capabilities built in, enabling companies to further optimize their operations for greater efficiency.

Using ERP solutions helps businesses improve efficiency by automating many of their daily processes. The main areas where it provides benefits include:

Omnichannel Improvement

ERP software can improve an omnichannel experience by providing a single source of truth for customer data. This allows businesses to gain a comprehensive view of customers across all channels, and tailor product recommendations, promotions, and other services accordingly.

It also helps companies create a unified purchasing journey by syncing inventory, orders, and payment details across all channels. The platform can enable marketing automation for personalized content that takes into account past purchases and preferences.

Inventory Management

An ERP solution improves inventory management by providing real-time data that helps businesses accurately forecast customer demand. This allows them to plan and execute timely replenishment of stock, ensuring that customers are never out of their desired items.

Also, the automated inventory tracking capabilities reduce manual administrative work by supply chain management and warehouse staff, freeing up resources for more important tasks.

ERP eCommerce integration can help with inventory management at every stage.

Creates the "Source of Truth"

An ERP solution for eCommerce creates a centralized, integrated data hub by unifying all of the departments within a business, allowing them to access and share data seamlessly. It's the single place that holds the most accurate information against which all other data can be judged.

This eliminates manual processes for each department, streamlining communication and improving decision-making. This centralization also amplifies business insights from multiple sources, helping businesses make better decisions that improve efficiency and profitability.

Better Productivity

An ERP for eCommerce improves operational efficiency and productivity by automating time-consuming manual tasks and streamlining core processes. This helps free up resources to allocate toward enhancing customer service, developing new products, and exploring new markets.

Automation also reduces manual errors, resulting in fewer delays and increased accuracy when completing orders and transactions. The platform can also be integrated with multiple third-party software systems, which increases efficiency by eliminating the need to manually switch between applications.

The best ERP solutions can plat a big part in increasing your e-commerce platforms productionity.

Automated Reports

An eCommerce ERP generates reports automatically which saves time and money by eliminating manual labor needed to generate these reports manually or with other programs like spreadsheets or databases. These automated reports also provide insights that may not have been obvious without them helping you make more informed decisions about the future of your eCommerce business growth strategies.

Better Reporting and Forecasting

An eCommerce ERP improves reporting and forecasting by providing comprehensive analytics tools to help businesses gain an in-depth understanding of their customers, products, and operations. These tools offer real-time insights into the performance of campaigns, orders, sales trends, and more. The data can be used to create accurate forecasts and predictions, guiding businesses toward better decisions that ultimately lead to increased profitability.

An ERP platform should give you all the information you need to make the right decision.

Improved User Experience

An eCommerce ERP helps improve the user experience by automating processes such as order processing, shipping cost calculations, and label creation. This reduces the burden on businesses and ensures that customers are provided with timely updates on their orders. ERPs often include features such as loyalty programs and broadcasting capabilities, providing customers with engaging experiences.

Pricing Management

An ERP for eCommerce improves pricing management by providing automated price intelligence tools to help businesses stay on top of market conditions. These tools offer insights into competitor prices, allowing businesses to react quickly and adjust their own prices in order to remain competitive.

Additionally, the tools provide the ability to optimize pricing models, helping businesses increase margins while minimizing shopping cart abandonment rates.

The best ERP solutions can give you insight into your pricing management.
 

ERP System Integration You Can Trust

ERP systems are essential tools for successful businesses in the eCommerce industry, automating many of the processes involved in running an online store. They help streamline inventory management, customer relationship management, and so much more.

Clarity Ventures recognizes the importance of a smooth integration to your business processes. Our integration software, Clarity Connect, can take any ERP system and connect it to your chosen eCommerce platform. We value the data you keep, so get in touch with us today when you need an ERP commerce solution.

Clarity Ventures can help your eCommerce business make the most of its ERP integration.

FAQ

 

ERP Commerce is a branch of Enterprise Resource Planning (ERP) systems that are specifically designed for eCommerce. ERP Commerce provides businesses with tools to manage the entire eCommerce process, from customer communication and order tracking to inventory management and shipping.

ERP Commerce also helps businesses automate processes like product recommendations, discounts, promotions, loyalty programs, payments, and analytics.

 

ERP and CRM are both management systems designed to help businesses streamline their operations, but they serve different purposes.

ERP is used to manage back-end processes like accounting and inventory, while CRM (Customer Relationship Management) is designed to manage customer relations and marketing activities.

ERP systems typically cover more areas than CRM systems, including finance, inventory, operations, and logistics. In contrast, CRM platforms usually focus on tracking customer data, creating sales reports, and automating marketing activities through email campaigns and social media outreach.

 

APIs (Application Programming Interfaces) and ERP systems can be integrated together to streamline the workflow between different applications. By integrating APIs and ERPs, businesses can exchange data in real time, allowing for timely updates in both the ERP system and external applications.

For example, order information can be sent from an ERP system to an eCommerce website's API to automatically update inventory levels in the online store. APIs also allow for automated communication between different platforms within an organization, such as customer service systems, payment gateways, financial management systems, and more.

 

There is no single “best” ERP for eCommerce. The best ERP for a particular business often depends on the specific needs of the company, such as budget, number of users, the complexity of processes, scalability requirements, and more. Some popular ERP solutions for eCommerce businesses include Oracle NetSuite, Salesforce Commerce Cloud, SAP Business One, and Microsoft Dynamics 365 Business Central.

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Stephen Beer is a Content Writer at Clarity Ventures and has written about various tech industries for nearly a decade. He is determined to demystify HIPAA, integration, enterpise SEO, and eCommerce with easy-to-read, easy-to-understand articles to help businesses make the best decisions.