ERP System and e-Commerce Integration

Large online marketplaces such as Amazon or eBay are hotspots for online retail. These platforms play a key role in e-commerce. Here you will find what is often searched for in vain in traditional brick-and-mortar retail. On the other hand, for many trading companies, these marketplaces are a valuable addition to their existing sales channels. Can online platforms also be integrated directly into an ERP system? Yes, as long as the following points are taken into account.

A common feature of various online marketplaces is the ability for sellers to quickly and professionally achieve a broader reach or target a larger number of potential customers. That is why many successful providers use this opportunity to complement their existing sales channels. Brick-and-mortar points of sale, their own online store, or other sales channels are supplemented by participation in e-commerce platforms. Appropriate concepts must take into account the specifics of individual channels and guarantee that the online marketplace will not take away the primacy of other sales channels. But there is one more obstacle to overcome: the plate-spinning problem.

You probably know circus performers who deftly juggle many balls or plates at the same time. This requires the utmost concentration and skill. If you want to master this feat, you have to focus on it completely. This phenomenon also occurs in a similar form in multi-channel distribution concepts. Known as the "plate-spinning problem", an online store, an online marketplace, etc. must be kept in motion constantly and, above all, evenly. If one channel is neglected, turnover drops. In practice, this means that all channels must be fed simultaneously with the same data (e.g. product descriptions, prices, inventory levels, etc.). The fact that this data is also interdependent further complicates its handling across different systems.

If juggling is too burdensome for you, you can resort to a simplified version. Instead of handling individual plates, a central system is used to coordinate all plates or channels. ERP systems are predestined for this. They connect all business areas via a unified database. However, today's multi-channel requirements set even higher demands. Alongside internal applications, an e-commerce connection in the form of an online marketplace and an online store is gaining in importance. Those who strive for perfect integration of their business processes and sales channels should already pay attention to the integration of all online and offline processes when evaluating a suitable ERP system. A seamless connection ensures a smooth exchange of data even across company boundaries.

A virtuous process layout In order to be able to sell via an online platform, you naturally need appropriate and, above all, up-to-date article data. This is usually already managed in the ERP system. Those who do not want to store data twice will look for a way to cover everything centrally using a single software. Therefore, an ERP system is needed with an integrated option to connect the online platform, online store, and ideally other areas such as pop-up stores, POS checkouts, etc. In this way, a virtual process layout can be designed that covers the following areas, especially in conjunction with an online platform:

• Central data storage and management (items, customers, orders, inventory, etc.)
• Providing the relevant data for the online marketplace and the online store
• Mapping and synchronizing order transactions
• Further processing of incoming orders in downstream processes (e.g. logistics, customer service, etc.)

The platform economy is on a growth curve. Social networks and online search engines also sense big business in online shopping. Merchants can join in and make their presence felt with little effort. An online store remains important, but it is no longer the only sales channel in e-commerce. Even if the competition in the online market is fierce and margins are low, it is worth being there. However, the business will only be profitable if processing costs do not eat up the profits. A broader mindset regarding e-commerce is key to long-term success. Selling products is important, but through additional offers and services, up- and cross-selling activities, etc., the business can really be strengthened. Here again, e-Commerce and ERP integration come into play. Whether it is for a targeted approach to the customer, promotions, services, and much more.