Have you ever wondered how to simplify the complexity of ecommerce business operations? From extending the breadth and depth of planning to connect the dots of technical as well as non-technical procedures, some cohesive solution must be present, isn’t it? This is the case when ERP for ecommerce business comes into action!
E-commerce ERP software helps merchants automate, balances, and manages meaningful e-commerce operations, avoiding human errors. No doubt, it is best for preventing human mistakes and making operational processes more efficient and accurate. Back in the 1960s, the idea of ERP came into notice by Gartner. His idea was first implemented in inventory management and manufacturing process control. In the 1970s, the e-commerce ERP system was enhanced to Material Requirements Planning (MRP) with the additional features of production process scheduling. Later MRP-II was introduced with further advancements in manufacturing data capture. It further grew by enclosing more elements of operations, including Customer Relationship Management (CRM) and accounting.
It expanded even more as more operational features, such as accounting and customer relationship management (CRM), were added. And now, in today’s time, we are already diversified and packed with so tight schedules, and we need some enterprise resource planning solutions to make our process much easier. This is why an ecommerce or a large-scale business can never ignore the benefits of ERP software!
So what exactly does ERP do?
E-commerce ERP software connects the various pieces of essential e-commerce operations. It enables the communication between different operations and automates processes for merchant convenience. ERP not only assists the business owner in streamlining operational tasks but also frees up time so that the business owner can sit down with a cup of coffee and develop newer strategies.
Automating processes, such as manufacturing data processing, sales, accounts, reporting, etc., is made possible with ERP. ERP channels all activities and allows the modules to keep communicating and updating as necessary, providing effective processes for efficient business operations whether the business owner has a physical location or an online store. These eventually connect to managing inventory, orders, and other related tasks.
Similarly, a retail merchant can also enable automated customer responses through ERP solutions for e-commerce which also contributes to staff reduction. The best e-commerce ERP is a single point of contact for merchant needs when tying retail with an online e-commerce store. The ERP solutions let your business enjoy the flexibility and allow you as a manager or owner to focus on other value-added business growth activities.
Why You Must Have an ERP Solution for E-commerce?
Although there are many reasons why ERP is essential for your ecommerce business, some of the major ones are listed below.
- It helps in leveraging product, sales, customers, and inventory as well as shipping data.
- It enhances sales demand visibility to minimize inventory costs.
- You can easily streamline your complete ecommerce sale processes, from website to delivery.
- It helps in augmenting internal productivity and reduces operating costs.
- It helps reduce data redundancy and minimize human-made errors due to less human involvement.
- Ease in financial planning and generating financial reports for better accountancy with the help of the best accounting software forecommerce.
- Increases customer satisfaction, letting them handle some processes at their ends, such as order tracking or inventory availability.
- It helps you in getting better control of your ecommerce business, proffering you a competitive advantage.
With so many added advantages, it can be said that if you are not integrating an ERP solution in your ecommerce business, you will be putting your business at stake.
Benefits of ERP in e-commerce business
With the successful implementation of e-commerce ERP software, ecommerce businesses can gain various advantages. Due to the speed and volume of their operations, ecommerce companies can significantly benefit from a specialized solution with automation features and connections to financial data. Here are a few distinct advantages that online retailers should watch out for when integrating their platform with an ERP system.
Consolidation of sales
Centralizing sales data from various areas is one of the main advantages of ERP integration with ecommerce that operate online. Omni-channel functionality is essential when searching for a solution, primarily if your company conducts sales in various locations. Not only do these solutions help in improving your sales and marketing, but also help in better management of all the data and processes involved in an ecommerce business.
The ability of ecommerce ERP software to boost operational productivity by integrating various workflows and automating the exchange of data cannot be ignored. Some ecommerce ERP software can automate processes like bank reconciliation and sending shipping notifications, and that makes a way for higher productivity. Businesses can perform more tasks simultaneously and produce more work by enhancing their productivity levels. Additionally, ERP automation tools can make workflows more efficient, saving time on document spot checks and human error correction.
ERP solutions can help ecommerce businesses make more money in various ways, including explicit cash-in-hand benefits and implicit revenue advantages related to increased productivity, automation, etc. For example, time spent by employees on specific business functions can be used for other tasks. According to some research studies, a business can benefit by an average of $7.23 for every dollar invested in an ERP system.
In India, more than lakhs per year are invested every year in an ERP system which allows e-commerce companies to generate more than crores of revenue. A successful ERP ecommerce integration can therefore result in revenue gains that greatly outweigh the initial implementation costs.
Customer relationships are improved
CRM functionality is a common feature of ERP systems, either built-in or as an add-on feature. These functions allow e-commerce businesses to use a centralized customer database, allowing your processes to handle sales leads based on historical sales, demographics, etc.
Some features which the customers love are that the ERP software automates the process of monitoring delivery and notifying users when a delivery has arrived at its destination. Your business can make a better first impression on customers by streamlining these processes and increasing customer retention.
Process Management and Visibility
Visualizing processes and projects becomes very easy when comparing various ERP ecommerce options. These systems frequently offer customizable dashboards with data on finances, project status, and project allocation. Users can quickly identify the loopholes in any processes and make efficient business decisions to streamline operations easily. In ERP software, theprocess insights are more visible and presented in an understandable graphical format, which lets you analyze and take a managerial decision.
Important Elements of ERP Solutions
Vendors of ERP software provide a wide range of features. However, some parts are more crucial than others for e-commerce companies to have in their ERP solutions. Here are a few features of ERP that ecommerce businesses can significantly benefit from having.
Customer relationship management is crucial for any company. And guess what? ERP software can help your company’s CRM effectively, without any hassle. From generating leads and retaining visitors to your website, there are much more benefits that CRM offers. According to a recent study, acquiring new customers is five times more expensive than keeping the ones you already have. And, with an ERP for ecommerce business, you can acquire as well as cost-effectively retain your customers.
For effective business management, you need real-time and accurate financial data. With ecommerce ERP system, you can meet all the requirements of your company’s financial management. ERP can act ase-commerce accounting software for your business, and look over company finances efficiently.The financial data managed by ERP can also be used to keep the track of essential calculations and finances.The importance of financial management in ERP solutions for any business cannot be overstated, and the tighter your profit margins are, the more you gain from it.
Inventory Control and Management
Inventory management features are one of the most crucial components of ERP ecommerce platforms. The number of sales and the variety of products offered by online businesses are two things thatecommerce businesses must keep a track of. And with a best ecommerce ERP, inventory control becomes very simple and easy for ecommerce businesses. Businesses can simply keep a track of inventories and do efficient stock management.
Collaboration between Marketing and Sales
Marketing and sales are two different contexts of a business, especially an online store. You will need to look over both marketing and sales efficiently to maintain your augmented graph of high revenues. With ERP software for ecommerce business, a link is maintained between specific marketing efforts as well as closed sales of the online store. Improved communication between various enterprise divisions can be done with ERP, which helps in meeting corporate goals.
If you are planning to fuse ecommerce and ERP systems, then no doubt, it’s a great decision because doors to numerous opportunities and business revenue growth will be opened. If you want to comprehend the mentioned benefits of using ERP for ecommerce business, then in no time you can achieve great success for your business. From improving the in-store experience to automating online sales orders, ERP software can meet the needs of your multi-channel online selling business. Wondering where to get the best ecommerce ERP solution?
VasyERP is here, proffering you its one-stop enterprise solutions. With years of expertise, Vasy ERP has been providing smart retail solutions for ecommerce businesses, augmenting the graph of user satisfaction as well as business growth. Vasy ERP, the best ERP for ecommerce India, usesreal-time analytics, hardware integration, and industrial internet of things (IIoT) to boost production efficiencies and growth options. At Vasy ERP, experts work on forging your ecommerce business much more efficiently and profit-generating, making all your enterprise plans succeed.
Still any Queries? Visit VasyERP Solutions and get a free consultation now.