When a customer places an order on an e-commerce site, the ERP (Enterprise Resource Planning) system can automatically update inventory levels, generate an invoice, and initiate the shipping process.
An ERP is a software application that helps businesses manage and integrate their core business processes, such as inventory management, order tracking, accounting, and customer relationship management, and it’s a powerful tool for eCommerce businesses.
In this article, we will discuss various aspects of eCommerce ERP and the best solution in the market. If you want to launch an eCommerce business, you can explore HostAdvice to discover the top website builders and eCommerce hosting that can help you create an online store.
Key Highlights
- Ecommerce ERP helps to automate the buying and selling of goods and services.
- Integrating ERP systems into e-commerce helps businesses to operate more efficiently and effectively, improving their ability to meet customer demands.
- One of the advantages of ERP e-commerce is that it allows businesses to control and manage their human resources.
- ERP systems can manage financial transactions, including payment processing and accounting.
- The essential eCommerce ERP features include finance, CRM, warehouse and inventory management.
What is Ecommerce ERP?
Ecommerce ERP (Enterprise Resource Planning) is a type of software that is specifically designed to help businesses that operate in the eCommerce space. It is an integrated system that combines all the different aspects of a business, such as finances, inventory management, customer relationships, and other important functions, into one platform.
The primary goal of an eCommerce ERP system is to help businesses manage their operations and resources in an efficient and effective manner. By integrating all the different aspects of the business, eCommerce ERP software allows for better decision-making and improved coordination between different departments. This, in turn, leads to increased productivity, improved customer satisfaction, and better overall business performance.
Essential ERP eCommerce Features for Businesses
When it comes to running a successful eCommerce business, having the right ERP system in place is essential. A well-designed eCommerce ERP system is a critical component of a successful eCommerce business. Here are some of the effective ERP eCommerce features you should look out for.
Efficient Finance
By using a cloud-based ERP system, you can gain real-time insights into your eCommerce operations and automate certain financial processes.
One of the benefits of using a cloud-based ERP system is that it can help you streamline the management of various financial components such as general ledger (GL), accounts payable (AP), and accounts receivable (AR). By centralizing these financial functions in one system, it becomes easier to track and manage financial transactions, reducing the likelihood of errors or oversights.
With real-time data on sales, inventory, and other key metrics, you can make informed decisions about pricing, marketing, and other aspects of your eCommerce operations. By leveraging this information, you can take proactive measures to optimize your eCommerce performance and stay ahead of the competition.
CRM Approved
If you’re running an eCommerce business, you need a CRM system to succeed. A CRM system is essential because it centralizes your customer data, making it easier for you to track and manage customer interactions across different touchpoints. By keeping all of your customer data up-to-date in one place, you can ensure that every step of the sales cycle is properly tracked, allowing you to provide personalized and consistent service to your customers.
To take your eCommerce business to the next level, you should integrate an eCommerce ERP and CRM system together. This integration creates a seamless omnichannel experience for your customers, and it allows you to accurately attribute all orders, regardless of purchase channel, to the right customer. By gaining a comprehensive view of how your past and current customers are interacting with your business, you can use that data to provide more personalized and targeted marketing and sales efforts.
In addition, integrating eCommerce ERP and hosting CRM systems can help you to:
- optimize your sales processes
- identify high-value customers
- prioritize your sales efforts
- provide personalized service to those customers
- reduce the workload on your sales teams
- handle customer interactions in an efficient and consistent manner
Inventory Management
Monitoring your stock can become more complex for your eCommerce business as you grow. It’s essential that you’re always aware of where your goods are situated and that your customers can easily find out if a product is in storage or not. This is where an eCommerce ERP system with inventory management capabilities can be incredibly valuable.
By integrating your inventory management with an ERP system, you can:
- Gain precise, up-to-date access to your present inventory levels, regardless of where it is located. This includes inventory that is placed in a storage facility, disaggregated between warehouses, or en route.
- Provide you with information on restock quantities and stock prices.
- Make informed decisions about when and how much inventory to reorder, helping you avoid stockouts and ensure that you always have enough inventory on hand.
Warehouse Management
If you are looking to improve your warehouse management processes, using a dedicated ecommerce ERP system can greatly benefit your business.
- Accurately and effectively manage your shipping, distribution, and warehousing requirements.
- Automate the multifaceted distribution process – This includes tasks such as wave and batch picking, packaging, PO receiving, putting away, transferring, and physical counting.
- Streamline the process and reduce errors, leading to increased efficiency and lower costs.
- Allows warehouse workers to use phones or tablets to complete their assignments. This mobile capability can greatly improve worker productivity.
- This results in faster and more accurate order fulfillment, which in turn leads to higher customer satisfaction.
Product Information Management
An ecommerce ERP solution with Product Information Management (PIM) is essential for consolidating your product information If you are offering products to customers through a variety of methods.
- Centralize your product data - including details about your vendors, product costs, client-specialized prices, and product features, all in one place. By having all this data in one location, you can better manage it and distribute it across various platforms.
- Consistent product information across all of your sales channels - For example, if you offer your products through your eCommerce website, Amazon, and other marketplaces, it can be challenging to ensure that your product information is consistent and up to date on all platforms.
- Robust data management and analysis capabilities - track product performance, inventory levels, and other important metrics. By analyzing this data, you can identify trends and make informed decisions about your product offerings, pricing, and marketing strategies.
Advantages of ERP Ecommerce
So, let’s review some of the advantages of Integrating ERP systems with your eCommerce business.
Automation
- Streamline your routine business activities – such as payroll, ordering, and invoicing.
- Reduces the need to manually input data – giving you more time to focus on the essential aspects of running your business.
- Removes potential errors that may arise from human miscalculations.
Open Data with Restricted Access
- Makes it possible for all users to access the data that is entered
- Permissions can be set up to allow certain users access to designated information
- Ensures that only the right people can access sensitive data, while still allowing everyone to view the information they need
Integration Of Third-Party API
- Creating a seamless omnichannel experience
- Accurately attribute orders to the right customer, regardless of purchase channel
- Provides a comprehensive view of how customers are interacting with the business
Easy Reporting
- Collate data relevant to business operations and key decision-makers
- Identify issues, improve processes and make informed decision
- Reports are often enhanced with visualizations including diagrams, graphs and dashboards
- Allows businesses to better discern patterns or trends in order to refine their services and optimize their profits
Data Analysis
Data analysis is an important part of any eCommerce ERP system. It allows businesses to
- Gain insights into operations and customer behavior, allowing them to make informed decisions.
- Used to identify trends, uncover opportunities, and optimize processes.
- With the right data analysis tools, businesses can track sales performance, customer segmentation, inventory levels, and more.
Business Accounting
- Track finances, manage accounts receivable and payable, and generate financial reports
- Accounting features can help businesses stay on top of their cash flow, budgeting, and other financial activities
- Accounting features can be used to automate processes such as invoicing and payments
- Ensures finances are in order and compliance with applicable laws and regulations
Tracking and Visibility
- ERP systems provide near real-time insights into your business data, enabling you to make data-driven decisions.
- Compiling reports and examining various facets of your business can provide valuable insight and aid in formulating strategies to take action.
Supply Chain Management
- Enables businesses to track and manage their supply chain from end-to-end, from the initial purchase order to the delivery of goods.
- SCM tools allow businesses to monitor inventory levels, optimize production processes, and ensure the timely delivery of products.
- SCM can help businesses reduce costs by streamlining processes and improving efficiency.
Human Resources
- Enables businesses to manage their workforce and ensure compliance with applicable laws and regulations.
- HR features can help businesses track employee information, manage payroll, and create performance reviews.
- HR tools can be used to automate processes such as onboarding and training. With the right HR tools, businesses can ensure that their employees are managed effectively and efficiently.
Best ERP Solutions for Ecommerce
If you are looking to take advantage of the benefits of integrating ERP systems into your eCommerce business, below are some of the top ERP ecommerce solutions.
Magento
Magento is an eCommerce platform that functions as an ERP (Enterprise Resource Planning) software program. It is free and open-source, which means it is easily accessible and can be customized according to the needs of a business. Magento is often compared to other eCommerce solutions like Prestashop and WordPress, but it is widely considered to be the most comprehensive and powerful of the three.
- Create highly customizable eCommerce websites with a broad range of features.
- Designed for medium to large businesses and can handle large volumes of traffic and transactions.
- Highly scalable and flexible, allowing businesses to expand and grow as needed.
- Provides a comprehensive set of reporting and analytics tools that help businesses make data-driven decisions.
Unlike other eCommerce platforms like Wix and Shopify, configuring and customizing a Magento website is complex and requires some level of technical expertise. This is due to the platform’s powerful functionality and highly customizable nature, which allows businesses to create highly unique and tailored eCommerce experiences.
Features
Magento ERP solution includes:
- Coupon management, with the ability to set up promo codes for offline customers
- Customer segmentation, based on geographic or demographic criteria
- Display recently viewed or complementary products on your product pages
- Saved shopping cart
- Emailing
- A wide range of SEO tools to manage your content
- Fine-tuned management of access and permissions.
- Ability to Import and export CSV format.
- Integration with Google Analytics
- Newsletters, etc.
Shopify Plus
Shopify Plus is a cloud-based ecommerce ERP solution that is designed to help large businesses streamline their operations, automate processes, and grow their businesses. It is a comprehensive platform that provides everything from inventory and order management to customer service and marketing tools.
The platform is fully hosted, which means that businesses don’t have to worry about setting up servers or maintaining infrastructure.
Features
Shopify plus ERP solution includes:
- Multi-channel selling, allowing you to sell across multiple channels such as online stores, physical stores, and marketplaces.
- Advanced analytics and reporting tools to track sales performance and customer behavior.
- Flexible payment options, including support for major credit cards, PayPal, Apple Pay, and more.
- Robust security features, including PCI compliance and fraud prevention.
- Integration with third-party apps and services, such as accounting software, shipping carriers, and more.
- Automated fulfillment to streamline order processing.
- Inventory management tools to track stock levels and ensure accurate orders.
BigCommerce
BigCommerce is a powerful ecommerce ERP solution designed for larger businesses. It provides an all-in-one platform to manage your entire business, from inventory and order management to customer service and marketing.
BigCommerce also offers advanced features such as multi-channel selling, automated fulfillment, and enterprise-level security. Additionally, BigCommerce integrates with third-party apps and services to help businesses streamline their operations.
Features
BigCommerce ERP solution includes:
- Multi-channel selling, allowing you to sell across multiple channels such as online stores, physical stores, and marketplaces.
- Advanced analytics and reporting tools to track sales performance and customer behavior.
- Flexible payment options, including support for major credit cards, PayPal, Apple Pay, and more.
- Robust security features
WooCommerce
Woocommerce is a powerful ecommerce ERP solution designed for small to medium-sized businesses. It provides an all-in-one platform to manage your entire business, from inventory and order management to customer service and marketing.
WooCommerce also offers advanced features such as multi-channel selling, automated fulfillment, and enterprise-level security. Additionally, WooCommerce integrates with third-party apps and services to help businesses streamline their operations.
Features
WooCommerce ERP solution includes:
- Multi-channel selling, allowing you to sell across multiple channels such as online stores, physical stores, and marketplaces.
- Advanced analytics and reporting tools to track sales performance and customer behavior.
- Flexible payment options, including support for major credit cards, PayPal, Apple Pay, and more.
- Robust security features, including PCI compliance and fraud prevention.
- Integration with third-party apps and services, such as accounting software, shipping carriers, and more.
- Automated fulfillment to streamline order processing.
- Inventory management tools to track stock levels and ensure accurate orders.
Acumatica
Acumatica Cloud ERP is a comprehensive suite of financial, customer, distribution, e-commerce and manufacturing tools designed for mid-sized businesses. This software can be customized to suit different business needs. This ERP solution is accessible from any device and all popular browsers, allowing users to monitor their operations remotely. The cloud-based system provides reporting capabilities, personalized dashboards and queries, offering up-to-date information in a user-friendly format.
Features
Acumatica Cloud ERP includes:
- Online assistance
- Technical support
- APIs
- CRM
- Consumption-based licensing
- Mobile Access
- Purchases and receipts
- Alerts/Notifications
- Real-time analysis
- Financial Analysis
- Customer order management
Aptean
Aptean ERP is a cloud-based software solution that’s specifically designed for small to mid-sized businesses. It is a comprehensive enterprise resource planning (ERP) software solution that is designed to help businesses streamline their processes, gain visibility into their operations, and make data-driven decisions. Aptean ERP provides a range of tools and functionalities to support financial management, inventory management, supply chain management, production management, and more.
Features
Aptean ERP software includes:
- ERP Accounting
- Business Intelligence
- Customer Relationship Management
- Human Resources Management
- Inventory Management
- Manufacturing
- Supply Chain Management
- Purchasing Management
- Business Tax Management
- Detailed Statistics
- Customer order statistics
Conclusion
In summary, ERP stands for Enterprise Resource Planning, which refers to software solutions designed to help businesses manage and automate their day-to-day operations.
The advantages of ERP include:
- increased efficiency
- better data management
- improved decision-making
- streamlined processes
The key features of ERP eCommerce typically include
- inventory management
- order management
- customer management
- accounting
- and reporting
The most popular ERP eCommerce solution is Shopify plus, as it is the preferred choice of larger enterprises. Others like BigCommerce, Aptean, Acumatica, and Magento also offer a range of features and capabilities for ecommerce businesses.
ERP solutions are critical for modern businesses looking to manage their operations and grow their ecommerce presence.
Next Steps: What now?
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