ERP in ecommerce:
value & development options

ERP in ecommerce: value & development options

September 5, 2023

Konstantin Pilkevich
by Konstantin Pilkevich, Head of Itransition's ERP Center of Excellence
Ecommerce ERP is a comprehensive ERP software solution equipped with modules and features that help ecommerce companies oversee, automate, and streamline day-to-day business operations.

Itransition develops ecommerce enterprise resource planning solutions designed to unify departments and data silos into a single back-office management center. We also provide end-to-end implementation services to integrate these tools into your ecommerce tech ecosystem, ensuring workflow visibility and complete control over your data.

About Itransition

10+  years of experience with custom and platform-based ERP solutions

50+ completed projects of different scales across various industries

Hands-on expertise in delivering out-of-the-box, custom, and hybrid ERP solutions

An Odoo Silver Partner

A NetSuite Solution Provider

Our ERP services for ecommerce

We provide advisory support for your ERP implementation and upgrade projects to ensure your ecommerce ERP solution is delivered within time and budget:

  • Analysis of business needs and technology environment
  • ERP strategy creation and roadmapping
  • ERP solution architecture design
  • ERP implementation support 
  • ERP software selection

We take on ERP implementation project end-to-end to deliver a scalable and future-proof ecommerce ERP solution:  

Key ecommerce ERP capabilities

Combining built-in ERP modules and integrations with additional software, our team will orchestrate a complex and multifunctional ERP solution, covering a wide range of business processes and functionality, ensuring solid control over your entire ecommerce ecosystem.

Key ecommerce ERP capabilities

We provide your ecommerce company with a system capable of tracking product availability so that you can maintain a balanced stock level. Such an ERP solution helps your company improve productivity while avoiding extra costs thanks to enhanced stock planning.

By syncing product information, status, and availability in a warehouse and automating associated workflows, an ERP for ecommerce can simplify order management, provide visibility, and ensure seamless and cost-efficient return operations.

Our team develops ERP solutions for facilitating warehouse control with the availability of real-time product status data as well as data on incoming and shipped products to eliminate stock shortages and overstocking, while consolidating data exchange between warehouses.

We can deliver a solution that helps unify all financial data, increase transaction visibility, and streamline report generation and accounting operations within departments for simplified monitoring of financial processes and solid accounting risk management.

Our team develops ERP solutions for ecommerce with built-in customer management tools to automate customer information collection and analytics, provide a foundation for personalized customer experiences based on customer data, and ensure higher customer retention and loyalty.

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Ecommerce ERP system integration options

Depending on your company's needs, business functions, and the number and types of systems already implemented, we will advise you on essential ERP ecommerce integrations to perform. ERP software flexibility manifests in the opportunity to connect it with other components of your ecommerce infrastructure:

Digital storefronts

Integrating an ecommerce ERP platform with online stores and ecommerce systems will consolidate data exchange between the storefronts and the back-office to collect information on leads, orders, and customers and provide a seamless operation of your ecommerce ecosystem.

PIM systems

Syncing your ERP software with a PIM system one ensures the ERP will operate using real-time product information and availability statuses to streamline the procurement, order management, and shipping workflows and feed the updates back into the PIM for the ultimate product data synchronization across channels.

The integration between ERP and customer relationship management software results in better front- and back-office synchronization, matching customers’ profiles with purchase and billing history to be used for service improvement, analytics, and more transparent cross-department collaboration.

We integrate ERP and ecommerce site’s analytics system to help you get valuable insights from your data and, therefore, identify the most profitable business opportunities, optimize your cross-selling and upselling strategies, and adjust your ecommerce platform’s product portfolio based on sales trends.

Inventory management software

This type of integration enables an ongoing flow of information between ERM and inventory management software, allowing real-time inventory levels tracking, accurate item cataloging, low-stock inventory reporting, automated inventory replenishment, and streamlined sales order management.

EDI software

Itransition combines your ERP with electronic data interchange software to share corporate data related to orders, invoices, or shipments with your business partners, suppliers, and distributors. This ensures faster communications and financial interactions, along with better order and inventory management.

Ecommerce ERP integration methods

After assessing your pre-existing ecommerce software ecosystem and framing your corporate requirements, we identify ERP integration models and techniques best fitting your digital environment.

Integration models

Custom integrations

Integrations between ERP and other types of software created in-house via their APIs.

Native integrations

A model based on pre-configured integrations built by the software vendor.

iPaaS

Integrations relying on cloud-based online platforms licensed and centrally hosted by a service provider.

Integration techniques

Point-to-point integration

A one-to-one integration technique used to link single business management apps to your ERP, easy to set up, and recommended for companies requiring a limited number of interconnected software solutions.

Middleware integration

A more complex architecture involving multiple integrations across several ecommerce applications and mediated through a centralized software connector acting as a network hub.

Custom vs off-the-shelf ERPs for ecommerce

The choice between tailored ERP built from the ground up and packaged ERP software solution depends on the needs, requirements, and goals of your business.

Out-of-the-box ERP

Costs

Out-of-the-box ERP

Higher upfront costs to finance the development process.

Higher long-term cost of ownership due to vendor license fees.

Timeframe

Out-of-the-box ERP

Extensive development times may delay the adoption.

Faster adoption since out-of-the-box ERPs are ready for deployment.

Feature set

Out-of-the-box ERP

Fully personalized ERP modules and features to meet your needs.

A fixed range of predefined features that allows for minor adjustments.

Support

Out-of-the-box ERP

Maintenance is mostly handled in-house by your IT department.

The vendor provides ongoing support based on your subscription.

Best ERP platforms for ecommerce

Odoo is an open-source ERP for small and mid-market ecommerce companies looking to automate sales, accounting, marketing, and other associated operations.
Core ecommerce features
  • Drag-and-drop web store configuration
  • Built-in marketing tools
  • Pricing lists automation
  • Human resources management
  • Checkout process automation
  • Warehouse and delivery management
  • BI and reporting
Deployment models
  • Odoo Online SaaS
  • Odoo.sh PaaS
  • On-premises deployment
A dedicated SuiteCommerce ecommerce solution by Netsuite is a feature-rich platform suitable for B2B and B2C merchants of all sizes.
Core ecommerce features
  • Pre-built themes for storefront design
  • Billing automation and financial management
  • Customer and business account management
  • Streamlined checkout process
  • KPI monitoring and reporting
Deployment models
  • SaaS
A leading provider of ERP solutions, Acumatica offers a cloud Retail Commerce edition geared towards online retail businesses.
Core ecommerce features
  • Inventory management
  • Sales order processing and management
  • Warehouse management
  • Reporting and dashboards
  • In-built connectors for other ecommerce software
  • Customer self-service
Deployment models
  • SaaS
  • Private cloud

Epicor

Epicor’s ERP includes features that can help ecommerce retailers create an integrated ecommerce environment and grow their online business.
Core ecommerce features
  • Sales management
  • Cash flow analysis
  • Inventory and resource management
  • Invoice management and accounting
  • Logistics management
  • Online customer support
  • Analytics and reporting
Deployment models
  • Public cloud
  • Private cloud

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What ERP deployment model to choose?

If you are unsure about what deployment model to pick, our ERP development experts will suggest the best option and help orchestrate the robust foundation for hosting your solution.

Itransition's team deploys ERP solutions in a variety of cloud environments, including private, public, or multi-cloud.

    Pros:

    • Faster implementation process
    • Scalable data storage
    • Seamless remote system access

    Cons:

    • Less control over data security
    • Potentially restrictive licensing options

    On-premise ERP

    We can follow an on-premise deployment model by hosting the ERP locally on the company’s own hardware and servers.

      Pros:

      • Complete control over the system
      • Extensive customization options
      • Highly protected data access and solid security

      Cons:

      • Limited scalability
      • Higher upfront costs

      Hybrid ERP

      You may opt for a hybrid model encompassing both on-premises and private or public cloud environments.

        Pros:

        • Wider feature selection
        • Cloud-based ERP's superior scalability
        • On-premises ERP’s control over sensitive data

        Cons:

        • More complex data integration architecture
        • Potential compatibility issues

        Top-down vs bottom-up ERP adoption

        When it comes to implementing ERP software in an ecommerce business, an essential aspect of this process concerns the key players driving its adoption.

        Top-down

        A more hierarchical, centralized approach in which business leaders set up an ERP implementation plan based on overall corporate goals and needs.

        Bottom-up

        An approach driven by employees' inputs and ideas and focusing on their day-to-day activities to enhance the corporate workflow with a suitable ERP.
        Benefits

        Top-down

        Bottom-up

        Holistic planning based on the "bigger picture" Clear guidelines defined by the management Faster implementation due to minimal negotiation

        More attention to feedback and discussion Promotes staff motivation and engagement Faster user adoption once the ERP is ready

        Best for

        Top-down

        Bottom-up

        Larger, mature organizations with established workflows and operating in heavily regulated industries.

        Start-ups or SMBs aiming to promote staff autonomy, problem-solving, and innovation.

        Cautions

        Top-down

        Bottom-up

        Risk to disregard user feedback Need for respected, recognized leadership

        Potential lack of a unified vision Absence of centralized guidance may be disorienting

        Benefits of ERP in ecommerce

        Our approach to ecommerce enterprise resource planning development and integration ensures you get a system adjusted to your workflows and seamlessly functioning along with the other ecommerce environment components in place.

        Process automation

        • Data entry and processing automation
        • Cross-departmental visibility
        • Reporting automation
        • Error-free workflows
        • Higher productivity through lower manual effort

        Unified data management

        • A centralized data hub
        • Transparent data governance
        • Streamlined data access
        • Dedicated data security resources
        • A backup of corporate data in one place

        Data-driven decision making

        • Data collection for BI querying
        • Business performance tracking
        • Budgeting and financial forecasting
        • Superior process visibility
        • Customer analytics and sales planning

        More productive cross-team collaboration

        • Seamless interaction across departments
        • Remote cooperation enablement
        • Real-time information exchange
        • Synchronized staff management
        • Better overall productivity

        Omnichannel commerce enablement

        • Cohesive touchpoints
        • Customer journey visibility
        • Real-time customer data tracking
        • Streamlined management of customer-facing operations
        • Seamless customer experience

        Ensured fiscal compliance

        • Accounts payable and receivable calculation
        • Accurate financial statements
        • General ledger reporting
        • Streamlined payroll management
        • Safe multi-currency payments
        • Transaction processing supervision
        • Compliance with applicable legal and tax requirements

        Ecommerce ERP FAQs

        Are my corporate & customer data safe?

        We craft fully compliant enterprise resource planning systems equipped with a full spectrum of advanced cybersecurity measures, making sure that your data assets are safe and handled in accordance with all major data management standards and applicable regulations, including GDPR and PCI DSS.

        How much will it cost?

        Here’s the range of parameters affecting the final ERP for ecommerce costs:

        • Complexity of integrations
        • Availability of in-house technicians
        • Deployment model
        • Choice between custom and off-the-shelf ERP
        • Set of features, modules, and add-ons
        • Size of your company

        Speaking of broad estimates, implementation of a platform-based ERP solution  for a mid-sized company starts from $50,000, while a custom one will cost from $1mln and higher.

        ERP, CRM, or both?

        Your ultimate goal should be combining the potential of CRM in promoting sales and customer relations with the operations management features of an ERP. However, smaller companies may start with CRM to expand their customer base, while established corporations should opt for an ERP for complex supply chain management.

        How to sync ERP & ecommerce software?

        Since sharing your data assets among multiple integrated software requires greater storage capacity, the data synchronization between your ERP and other solutions should focus on relevant data types and involve a reasonable data exchange rate (real-time data syncing for essential information and lower frequency for less critical data).
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