Generally, eCommerce platforms/stores and ERP software are two separate business solutions. Retailers can not survive today without online eCommerce ERP integration. Inventory management systems and ERP are commonly in use by enterprises with extensive technological processes. So what do these systems have in common and why you keep hearing more about eCommerce and ERP integration?
Think what happens as your business starts to grow. When you have multiple products/services in multiple areas. When, say, you start running your online store plus various marketplaces… How do you manage it all? How do you deal with lots of orders and tons of information? You begin inquiring about some centralized system, right? For the same reason many companies are initiating ERP integration, while some still remain skeptical. And mostly due to the cost, of course. But market is rather adopting and there are ways to invest less to gain more.
Any business has customer in mind, predominantly and permanently. And what do customers in 2017 want first of all? Check your products on your eCommerce store (web site), see item prices and availability in stock in real-time. Access to information 24/7, in other words. Whether you sell on your own web shop, on Shopify or Etsy, Facebook or Amazon. Omnichannel eCommerce is another trend of our days, meaning you have to sell everywhere. And then most probably comes the headache.
Different platforms demand much time and effort to keep them updated all the time. Enter ERP. The beauty of it is eCommerce integration options, besides customer data, inventory, shipping, sales orders fulfillment. ERP systems can act as back-office operations, also as back-end store to online retail stores. You are free to choose among dozens of ERPs around. While integrating it with your web store may easily drive up the sales.
In this article we would like to focus on eCommerce ERP integration cost and the benefits it brings. First of all, we are going to highlight the advantages of linking multiple platforms into one system. We are also going to present you the interactive calculator for your exact operational costs and requirements. So you will be able to calculate how much would you save exactly with eCommerce integration. And also elaborate on ERP cost in the end. Let’s begin with benefits of ERP and eCommerce as one.
Integrating your e-shop with ERP means:one database to maintain, one source of truth, one campaign.Click To Tweet
Benefits of eCommerce & ERP integration
To keep it short, it’s no manual entry and accurate inventory data. Two biggest pros and reasons to connect your online stores to ERP back-end system. Though such integration can also lead to happy customers. How so? These are the benefits:
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Manual entry and error reduction
Web stores may generate hundreds (if not thousands) of customer orders, invoices, inventory updates and so on. It is a highly time-consuming job that demands much effort. Multiply it on the number of eCommerce platforms you run. With ERP integration you reduce errors and cut down time due to single point of control. You enter data in your ERP and all the stores are updated automatically and in real-time.
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Accurate product information
Through one system you’d be able to synchronize everything, from inventory levels, tracking, shipping. Thus, maintaining consistent product data across all sales channels. Lots of lost sales happen because of redundant product info, be it availability in stock or relevant pricing. Uniting multiple stores under one roof of an ERP also tackles this issue.
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Keeping customers happy
Do you remember that 82% of online shoppers value product availability the most? More than half of them are annoyed when a price displayed is actually different from a real one. Ease, transparent product information, inventory details, order tracking is what keeps people coming back to your store. In addition, with some resource planning systems you can automatically notify customers about products on hand, orders and delivery details.
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Better management
Also, inventory management is easier within eCommerce and ERP integration. You can work flexibly with numerous online stores and marketplaces, handling higher demands in case of sales expansion. With such integrated system all employees/departments see the correct data. This speeds things up, as information is updating in real-time. Besides, ERPs offer various sales and financial reports, so company owners can control overall business better.
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Full customer data
Basic personal information of buyers is stored in your ERP, including name, gender, address, etc. Especially in systems that incorporate CRM modules (customer relationship management). In some instances there may also be data on orders, favorite items, feedback/reviews. And even beside such customer engagement data, you get shopping history: money spent, invoices, returns, service requests, etc.
Ways to connect two systems
Before discussing how much does eCommerce ERP integration cost, let’s review how one can do it. As this matter is not clearly defined yet, and case-to-case-specific, we can only put general info together. Though we’ll try to do it with practical examples. So, there are four major options for eCommerce ERP integration as of 2017.
- Point-to-point connectors
When an eCommerce channel (store or marketplace) is linked to an ERP to sync the sales data. One has to choose which of two systems to manage data in. One would also have re-configure the connection when adding new stores.
Examples: eBridge, Mothercloud, iConnect.
- Custom integration
Custom case-specific eCommerce channel integration utilizing application program interfaces (API) of two applications. It can be complicated and usually suits large companies with enough resources. One would have to consider data flow specifications, server-client setup, database queries, etc.
Providers: Clarity Ventures, Magic42 (for Magento), Williams Commerce.
- Middleware
A third system between your online store and ERP, that acts like a bridge between them. Such applications translate and optimize different data formats, work with multiple APIs, input and export data. Once you’ve deployed it, you only have to map data when adding new connections.
Examples: Zapier, Automate, IFTTT.
- Multi-channel management applications
Probably the best eCommerce ERP integration option when you sell on multiple store fronts. This is cloud-based technology as a rule, acting as a hub between your ERP and eCommerce platform. It uses pre-built and arranged connectors for popular systems, which is of great benefit. So, you can simply add as many channels as you like. And this, by the way, is the approach of EasyERP.
Examples: Webgility, EasyERP, Skubana.
With EasyERP, for instance, you can seamlessly integrate stores built on Shopify, Magento, Etsy, WooCommerce. And we are currently working on adding more integration channels.
Points of integration
It is crucial to understand how two systems retain proper connection while being separate entities. Talking about eCommerce ERP integration cost we need not forget the differences in nature. E-commerce platforms are primarily web-based sales tools, while ERPs are operational and reporting systems. Typical areas of integration would be:
- Product information
- Pricing
- Customer information
- Sales/orders
- Order status, fulfillment, shipping
- Shipment tracking
- Invoices
- Payments
- Order history
Data migration type and amount of data would impact the cost of eCommerce ERP integration the most. You have to overview how data would be extracted, transformed and uploaded into the system. Middleware connectors by Oracle of Microsoft could be very costly in this regard, be aware of that. Consequently, below is the chart of eCommerce integration points EasyERP covers.
Cost savings under eCommerce integration
Now, as we are getting closer to the eCommerce ERP integration cost, let’s also demonstrate HOW a business would benefit. Cost and time saving is one of the top benefits of ERP integration, as covered above. In the following table you can enter your own numbers on orders and their cost, time per order to process. Then you are able to see how much can you save daily, monthly or yearly.
Cost of savings
| Daily | Monthly | Yearly | |
|---|---|---|---|
| Orders, day | |||
| Average order ($) | |||
| Total value of orders |
| Manual order entry | Daily | Monthly | Yearly |
|---|---|---|---|
| Minutes per order | |||
| Hourly cost ($) | |||
| Total sales order entry cost | |||
| Manual fulfill and delivery (update inventory and synch delivery) | |||
| Minutes per order | |||
| Hourly cost ($) | |||
| Total sales order entry cost | |||
| Manual payment info | Daily | Monthly | Yearly |
|---|---|---|---|
| Minutes per order | |||
| Hourly cost ($) | |||
| Total sales order entry cost | |||
| Manual product and price info | |||
| Minutes per order | |||
| Hourly cost ($) | |||
| Total sales order entry cost | |||
| Total | |||
In addition, let’s give an example. Say, your company gets 600 customer orders a month, total cost of which is $30.000. With manual data entry (order info, payment info, price, delivery) you would spend about $1.600 to process those orders. And this is exactly what you can save with ERP. In yearly terms it amounts to over $19.000. Enter your figures and see for yourself. While we move on to the main issue.
Calculator of eCommerce ERP integration cost
As you decide to couple your online store(s) with an inventory system or ERP, the biggest issue comes – the cost. Incidentally, selection can be tricky, and setting up the integration can be costly. Though, future cost savings and growth opportunities are worth a look. The trouble usually lies in determining an accurate cost for the inventory and accounting system. So, we are going to simplify the issue of eCommerce ERP integration cost and be as transparent as possible.
Below you will find the interactive calculator with core areas where you can input your business data. As a rule, 3 factors drive the cost: the number of users, data migration, the level of customization. Furthermore, unlike other large vendors, EasyERP does not charge any license fees. By and large, you should also consider things like the cost of transactions, inventory details, third party software, maintenance, etc.
We should also note that the calculator displays data of how EasyERP works with eCommerce platforms integration. For other solutions, you should check elsewhere. So, let’s see how much does eCommerce and ERP integration cost.
How much does ecommerce ERP integration cost
| Base | User/Month | Users | Costs | ||
|---|---|---|---|---|---|
| 1 | Amount of employees | $50 | $15 | ||
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As you see, EasyERP standard pricing includes $15 per user per month and base $50 installation fee. So the bare minimum of ERP use of 1 employee would cost $230 yearly. The average cost of eCommerce channel integration appears to be around $1.500.
Conclusion
With modern plurality of online marketplaces the future for retailers lies in integrating their stores with a central ERP system. This means conducting business competently and, above all, streamlining every process. Ecommerce ERP integration guarantees 100% correct data and processing orders on time. Everything from order data and prices to inventory and delivery tracking is taken care of in one system.
If you and your business are looking to:
- Reduce the sales transactions cost
- Run accurate inventory management
- Provide faster sales orders shipment
- Eliminate manual data entry
- Obtain happy and returning customers
marrying your web store with an ERP system is the way to go.
From inventory and accounting to shipping, automatic omnichannel sales updates, eCommerce and ERP integration ultimately saves time and money. Finally, we hope the information and tools in this article can help you pinpoint crucial issues for better eCommerce efforts.
As a matter of fact, at EasyERP we offer smooth integrations with platforms like Magento, Shopify, Etsy. Meanwhile we are always ready to help you out.
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