5 Benefits of Integrating an ERP Solution with your e-commerce platform

So What is E-Commerce and How does it work?

Essentially electronic commerce or E-commerce, is where you have the ability to buy and sell goods/services, send/receive funds/data over a network which is primarily run through the internet.


How do you define E-Commerce?

As said above, but honestly e-commerce has a broad definition as it is a huge platform on the internet. Most of the transactions taken on such platforms happen either as B2B (Business To Business), B2C (Business To Consumer), C2C (Consumer To Consumer), and finally C2B (Consumer To Business).


E-Commerce
Image by Pickawood

How does E-commerce work?

I’m sure you would’ve definitely have had some sort of an interaction with an e-commerce platform. The most popular type of e-commerce platform you would be familiar with is on retail websites, who are routinely powered by SaaS (software as a service) providing sellers the ability to rent these online store infrastructures.

Ok, you can now define e-commerce but it goes a little bit deeper than that, as the whole process is quite fascinating. It would be much easier to understand from B2C (Business To Consumer) perspective, let me help you through the following technical steps that are taken, so you get your order in time; so:

Step 1: You have placed an order on the site, your web browser communicates with the server hosting the website

Step 2: This data from the order goes through a central computer known as the order manager

Step 3: This data is then forwarded to databases that manage inventory levels (where an ERP system can come in) where a merchant system that takes care of your payment information and a banking computer

Step 4: This data is now circled back to the order manager mentioned in Step 2, just to make sure you have funds and the store’s inventory can provide you with what you have purchased

Step 5: The Order has now been successfully processed! And you usually get an email confirmation or notification on the site itself

Step 6: The order manager from Step 2 will send your order to the warehouse so your product/service can be dispatched and shipped to you


E-Commerce
Image by Headway

B2B Applications

Ok, now you know how an e-commerce platform works through a transaction, and helps you get your purchases on time.

Lets get into what B2B means in an e-commerce setting.

Business to Business (B2B) is where the electronic exchange of products, service and/or information is specifically between businesses rather than consumers. 

A good example of this would be our eCommerce module which supports business to business (B2B), web shop as well as a business to consumer (B2C) interface. This means that you can optionally sell direct to the public, with the purchaser not requiring a debtor account with you.

However, E-Commerce is an incredible market for your business to tap into here are a few incredible statistics that prove it to be so

  • In the span of a decade (2014-2024) just from a retail perspective, sales are expected to grow from USD$1.3-$6.39 Trillion (Statista 2021)
  • By 2024 e-commerce will take 21.8% of Total Global Retail Sales (Statista 2021)
  • Australia is the 11th largest e-commerce market globally, and is predicted to make USD$32.3 billion in the next 3 years (Trade 2020)

Yes, not only is e-commerce an incredible financial opportunity it can also give your business a competitive advantage in a rapidly adaptive global market, provided you are able to manage customer satisfaction and product inventory seamlessly. This is where integrating an ERP system into your e-commerce platform comes in.

Having the whole picture through ERP integration with solutions such as the Triumph e-commerce module ensures you as a business owner, is guaranteed more transparency.


The 5 Benefits of Integrating an ERP Solution with your e-commerce platform

E-Commerce
Image by Petrebels

1. Inventory Management

With most companies on an e-commerce platform, inventory happens to be a primary item within the e-commerce ecosystem that is built for the company.

With the integration of an ERP solution such as Triumph, you have the ability to automate fulfillment, keep prices updated and ensure availability of stock for the product/service sold with real time tracking. This gives your management team an optimal and intuitive automated process that is quite optimized for effectiveness and efficiency.


E-Commerce
Image by Clay Banks

2. Customer & Supplier Management

An ERP solution such as Triumph, ensures that the integration with your chosen e-commerce platform is well optimized. As with the help of real-time integration, you are able to have better and closer relationships with customers and suppliers, ensuring the optimal management of your database.

Moreover, due to automation of tasks and processes, you can just as easily collect your customer’s data, ship and collect products they have ordered effectively and efficiently.


3. Automating Financial Processes

Primarily, looking at financial processes such as accounting and invoicing for your company, the addition of an ERP solution provides your business with a balance sheet, profit/loss statement and trial balance etc. An ERP integration with your e-commerce platform will ensure when an order is placed, the system generates a delivery note, as invoice and accounting is all done automatically.

Moreover, an ERP integration ensures errors and delays are minimized as the financial processes are much more efficient and less prone to human error as they are automated.


E-Commerce
Image by Josh Appel

4. Reduce operational costs

Two primary ways an integrated ERP solution is able to reduce time and costs is through:

  • Eliminating the duplicate entry of data, now your company’s order is being fulfilled faster with much less of an error margin. With the integration of ERP software, data such as customer details, their payment and shipping orders is automatically uploaded from your ERP solution to your e-commerce platform, ensuring you do not need to re-enter data (which is considered a very error prone process if done manually)
  • Automating most management processes you save huge on operational costs and also importantly increase productivity due to automation of input of data such as inventory levels

Image by Isaac Smith

5. Scale company growth

Essentially an ERP integration enables your business to have one whole picture of your total sales output, this is primarily achieved through the unification of business processes offered by an ERP system. Helping you scale your company’s growth, as there is less room for error as the e-commerce platforms seamlessly connects you with inventory, manufacturing, CRM, financials etc.


So…

Instead of having snippets of your sales, having the whole picture through ERP integration with solutions such as the Triumph e-commerce module ensures you as a business owner, is guaranteed more transparency.

Providing you with the ability to manage business processes more effectively due to a unified ecosystem (such as Inventory, Financials, Manufacturing, CRM etc.)

I hope this has helped you better understand how beneficial an ERP system can be when building your e-commerce store, if you would like to see how such an integration works a free demo is available.

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