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ERP-integrated e-commerce: How it Works? Its Benefits and Features

What is ERP eCommerce integration?

When an organization’s eCommerce website is connected to an ERP system for a smooth and unified data flow, we call it an ERP integrated eCommerce website. This synchronizes information about customers, orders, items, and more across the two platforms. Automated data synchronization increases productivity and optimizes profits.

You likely utilize one of the major eCommerce platforms, such as Salesforce Commerce Cloud, Magento, Shopify, BigCommerce, or SAP Commerce Cloud (formerly SAP Hybris). On this platform, you store data such as orders, customer details, and more.

An enterprise resource planning (ERP) system can track internal data from areas such as accounting, supply chain management, inventory, human resources, and customer relationship management (CRM). SAP Business One, Microsoft Dynamics, Netsuite, Acumatica, Epicor P21, Eclipse, and Distribution One are common ERP vendors.

Data overlaps between ERP and eCommerce systems. Different information across platforms may result in obsolete inventory, missed orders, erroneous delivery details, erroneous pricing, and other issues.

These problems are fixed with a B2B ERP integrated eCommerce system. It improves your business processes by removing time-consuming manual data entry, streamlining your workflow, and synchronizing the data between the two platforms.

The Functionality of ERP Integrated eCommerce

B2B ERP integrated eCommerce functions by establishing a smooth connection between your e-commerce platform and an ERP system. This allows for centralized orders, inventory, and customer information management in addition to real-time data syncs.

Data Sources

Cloud-based 

The majority of e-commerce systems with ERP integrations are cloud-based and use the software as a service (SaaS) paradigm. These systems often have universal connectors that make implementation seamless.

On-premise

This includes employing the company’s own infrastructure for system management and hosting, which has more initial expenses and maintenance needs.

Hybrid 

Institutions with specific security requirements typically utilize this hybrid of the two systems.

Method

Point-to-Point 

This involves creating a direct link between the eCommerce platform and the ERP. Because each integration is developed independently, scalability with this approach can be difficult.

Enterprise Service Bus

A middleware solution is used in ESBs, serving as a central hub to connect several systems. 

IPaaS

IPaaS stands for integration platform as a service, a cloud-based system that offers pre-built connections to facilitate integration.

Third-party Integrator

They are consultants or external service providers with expertise in system integration. Folio3 makes it easier to link well-known ERPs with eCommerce platforms.

Frequency 

Real-time 

You can sync and process data between ERP and eCOmmerce systems immediately.

Batch

Data syncs and processing over at intervals periodically. 

Benefits of ERP Integrated eCommerce

It is essential that data be passed between your backend ERP and frontend eCommerce programs. It removes human mistakes, facilitates scalability, and offers a flawless user experience. The top benefits of ERP integration are:

Lower Operating Cost

Compared to having employees manually enter data from one platform to another, an integration is less expensive. Operations costs are decreased by automatically synchronizing product information, inventory levels, shipment details, and other data.

Minimize Human Error

Human mistakes are always the result of manual operations. An automated integration can fix a typo, a missed comma in a CSV file, or even a delay that causes information to become outdated.

Short Fulfillment Time

The most recent order information is instantly accessible thanks to integrated systems. This implies a quicker turnaround time from order processing to fulfillment and a reduction in the need for manual labor to advance the process.

Better Supply Chain Planning

You can view inventory levels in real time based on individual customer orders thanks to an integration. Planning for future needs is more accurate and present inventory management is made easier when you’re not operating off of out-of-date data.

Data Consistency 

No more contrasting two systems to determine which contains a customer’s most recent billing address. When there is an integration, data is consistently correct on all platforms. Every team will have access to the same client data, orders, payments, and shipping information.

Eliminate Data Silos 

Integration solves the issue of data being kept apart by departments in data silos. Operations may modify output in response to present sales demands, and sales can modify price in response to inventory.

Sync Operations 

Integrating your ERP and eCommerce platforms makes managing both online and offline shops simple. This system preserves accurate fulfillment and inventory data everywhere, at all times.

Scalability

Manual data alignment has resulted in a bottleneck that will limit future expansion. Thanks to integration, data will no longer slow down fulfillment during peak orders, busy seasons, or even an unforeseen surge in new clients.

More Sales

Better functionality and more current data for clients on your eCommerce platform are the results of integrated systems, which also increase customer pleasure. More sales and money result from a quicker and simpler purchasing procedure.

Customer Loyalty 

When you have linked systems, you can monitor client data, use more focused outreach and upsells, and satisfy customers by anticipating their needs. Having integrated systems increases the likelihood that long-term clients will appreciate doing business with you.

Customer Experience 

Integrating ERP software with your front-end eCommerce platform can improve user experiences. Clients can view the most recent order status, track shipments, and view current inventory and out-of-stock warnings.

Better Financial Reporting 

A portion of your financial data, including orders, prices, and customers, is stored on your eCommerce platform. Other components, such as providers, cash flow, and profit/loss, are stored in your ERP. You may simplify and increase transparency in company-wide financials by merging the two.

Challenges of ERP Integration with eCommerce

You’ll encounter many problems with ERP integrated eCommerce. Some of them are because of the human aspect, while others are associated with your integration software.

Scaling 

Before starting, make sure your current ERP and eCommerce system can manage the data flow requirements of the integration. The majority of contemporary solutions shouldn’t encounter any problems, but you want to make sure you don’t find bottlenecks or delays in business activities.

Budgeting 

Although it’s common for integration projects to exceed their budget, planning is usually the key to success. Create a detailed plan in advance to ensure a seamless integration and avoid unforeseen issues.

Custom Integrations 

An integration project can easily go over budget, but planning is usually the first step in solving the problem. Create a clear plan in advance to avoid unforeseen issues and ensure a seamless integration.

Old Software 

Integrating legacy on-premise solutions or outdated software can be difficult. If you’re thinking about switching to a cloud platform, this could significantly impact how fast and simple you can begin your integration.

Multiple Data Types

The system will become more complex as you integrate more data types. Try to keep things simple whenever possible. Streamlining your data flows now will make implementing a clever integration even easier.

eCommerce Systems that Can Work with ERP

You have choices when it comes to choosing ERP for ERP integrated eCommerce. 

Connectors

Pre-made modules or plugins for integration to link your eCommerce site to a certain ERP.

Add-ons

Also referred to as extensions or modules, these are extra features that businesses can choose to incorporate into an existing eCommerce system to increase its functionality.

Middleware

These platforms are intermediaries between the ERP system and the eCommerce storefront.

Custom-built Integrations

A custom-built integration is created to satisfy particular needs for companies with special needs or intricate business standards.

Native Integration 

This eCommerce solution is integrated into your ERP and uses your ERP’s logic to populate and update your online store in real-time using data from your ERP.

Features of ERP Integrated eCommerce

Many companies have discovered that they can save time and enhance not only the customer journey but also their connections with customers by integrating eCommerce-ERP. The particular tasks that ERP software may help with vary depending on the kind of business you run and the other programs you link with.

Automating the following features through ERP integration may improve the efficiency of your online business. This lowers the possibility that a consumer may order the incorrect item and lessens the time your team(s) must resolve these issues or respond to straightforward inquiries, thus freeing up time to promote organizational growth.

Order Placement 

By automatically initiating the subsequent actions, including computing the shipping charges or generating a shipping label, ERP software can help with the order placing process.

Customer Updates

Automated messages are sent to your customers when your e-commerce platform is coupled with ERP software. These messages cover the moment an order is received, an item is dispatched, or a shipment is delayed.

Simplify Changes

While many companies find internet sales labor-intensive, ERP software can help with price adjustments within product categories.

Inventory Details

An ERP system can automatically update the product details or inventory count when an item is bought or modified. As a result, customers are informed, and orders for out-of-stock items are avoided.

Why Folio3 NetSuite for ERP Integration with eCommerce Systems is the best option?

Folio3 is the best option for B2B ERP integrated eCommerce system because it is a certified NetSuite partner and has experience across multiple platforms including Shopify, Magento, and WooCommerce. Folio3 offers customization, end-to-end integration solutions that synchronize product catalog orders, customer data, and financials without errors. With personlaized solutions for businesses and scalable integration, Folio3 enables data syncing in real-time.

Folio3 excels in automoating manual processes like order fulfillment, invoicing, and shipping, to increase productivity levels and reduce errors. Folio3 is commited to offer reliable, scalable, and efficient ERP-eCommerce solutions that improve the performance of businesses.

FAQs

Q1. Why should I integrate my eCommerce store with ERP?

eCommerce with ERP automoates order management, inventory tracking, financial processes, and syncs online sales and backend systems to improve order fulfillment. 

Q2. How CRM integration helps improve customer relationship for?

CRM integration centralize the data, track sales and interaction, and manage leads. This helps in customer retention, sales forecasting, and builds relationship with clients. 

Q3. How CRM ERP integration helps with pricing?

ERP integration handles complex pricing structure that includes bulk discounts, specific pricing for a customer, tiered pricing and applies it consistently across all the sales channel. This helps store owners with applying correct pricing and reduce the risk of error. 

Q4. How inventory management is improved with eCommerce integration?

ERP-eCommerce integration gives real-time visibility into stock levels for different locations. This helps manage inventory with the accurate count for stock. It also offers the feature to check stock availability to improve the customer communication.

Q5. Challenges store owners may face when integrating eCommerce with ERP?

Store owners may face challenges in data consistency, complex workflows, and in aligning the functionalities across all platforms. They should plan in detail to define the integration goals and choose the integration partner wisely. Folio3 is the best NetSuite Alliance Partner for your integration needs. 

Conclusion

The benefits of having a B2B ERP integrated eCommerce system cannot be overlooked. Data synchronization is the big step to grow your eCommerce business. With Folio3 NetSuite integration, you can start syncing data between your current system and eCommerce store. We also have pre-built connectors for popular eCommerce platforms.
If you are looking for the best eCommerce ERP integration? Connect with us at Folio3.

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