Advantages of ERP for Ecommerce

Ecommerce is the modern way of doing business at a relatively lower cost. It has changed the way companies do business and communicate with customers.

For almost every type of retailer, business, and enterprise moving onto an online store has become a need. Having an online business has various benefits for the retailers as well as the customers.

However, running an online store can sometimes be quite stressful for the retailer if not integrated with the right ERP solution.

ERP refers to the integrated management of the main business processes with the help of software and technology.

The integration of your e-commerce business with the ERP systems enables you to function even more competently as a business.

The following are the benefits of ERP for e-commerce:

1.    Reduces errors

With the integration of ERP solutions in e-commerce, there is a smooth and continuous flow of data. The data related to the payment & shipping information, web orders, and web customer details are integrated into the ERP system directly for the website.

 In a similar way, it helps to upload the details of items and inventory from ERP to the e-commerce portal. This helps eliminate the requirement of manually re-entering the data. This, in turn, helps to reduce data redundancy, human involvement, and error.

2.    Reduces cost

The real-time data, which is available from the ERP system on an e-commerce website, enables consumers to view the latest order status, available inventory, as well as track shipments with tracking numbers.

 Automated data inputs help to reduce errors, re-works, and order backfires. All of these benefits help to reduce various types of costs.

It also helps to automate most of the processes which help to save administrative time which can be focused on more important tasks.

3.    Increases productivity

Implementation of ERP systems plays a vital role in streamlining several business processes.

This helps to reduce the involvement of human resources in the processes. Most of the processes are automated which helps to reduce errors and saves time.

4.    Reduces inventory cost

ERP systems help to give you the data of the products sold, pending delivery, unsold stock, etc.

 All the information about web sales and deliveries appears in your ERP system promptly. Based on the data provided, the ERP item inventory will also get updated.

Thus, with up to date information about inventory and web sales, you can plan the purchase in a proper way, thus reducing inventory costs.

5.    Increase customer satisfaction

With the help of e-commerce ERP systems the customers get up to date product information, order tracking details, and inventory availability detail.

With the right type of information and effective communication, it helps increase the satisfaction level of a consumer.

6.    Report generation

Performance reports are very important for monitoring and reviewing the performance of the various departments.

Financial reports, sales reports, marketing reports, etc, are generated by e-commerce applications. These reports help you do a  comparative study and implement changes if required.

By integrating e-commerce with ERP, it helps you to produce trial balance, balance sheet, cash flow, and P/L Statement, which gives the required clarity in financial information.

7.    Better control

By integrating e-commerce with ERP, all the business processes and data are centralized at once place.

 You can get access to all the data with the click of one button. This helps business owners to get better control of their business, thus giving competitive gains.