ERP for E-Commerce- Top Features and Challenges You Should Know

In the dynamic eCommerce scenario in the UK, businesses need to seek ways to optimise operations and enhance customer experiences to remain competitive. Here, the implementation of ERP E-Commerce can work wonders by offering a robust business solution. It can simplify the complexities of online retail by streamlining various processes. A Best ERP for E-Commerce can ensure seamless data flow increasing efficiency and scalability.

In this post, we will discuss the relationship between eCommerce and ERP solutions. We will go through the top features of ERP for the eCommerce industry and implementation challenges. Let’s start with finding an answer to the question- what is ERP in eCommerce?

What is an E-Commerce ERP?

An eCommerce ERP system is a comprehensive suite of features to manage the core business processes of your online store. It pulls together various aspects of online businesses ranging from inventory management to order processing, and financial management to CRM (Customer Relationship Management).

Apart from offering centralised management, an ERP for eCommerce is useful for improving data synchronisation and enhancing operational efficiency. Online businesses can get quicker order fulfilment, reduce costs, and increase the customer satisfaction ratio. Here we mention the most popular types of ERP solutions.

Types of ERP for E-Commerce

These days, different types of ERP systems are available in the market. Here are four common types of ERP eCommerce to choose from-

Cloud-based ERP

This solution is hosted on the vendor’s servers and users can access it over the Internet. All you need to pay a monthly subscription fee that includes maintenance, updates, and security of the software. Cloud-based ERP solutions have lower upfront costs with higher scalability as compared to on-premise ERP solutions. However, these solutions have less control over data and system customisation.

On-Premise ERP

This solution is installed on the company’s servers and hardware. It offers greater control as compared to the cloud-based ERP for eCommerce solutions. However, it is pricey and requires to invest heavily in hardware, software maintenance, and updates. This type of solutions offer high customisation options to meet specific business requirements. But, eCommerce companies need to take care of maintenance themselves.

Hybrid ERP

This is a combination of both on-premise and cloud-based ERP solutions. Here, some functionalities work on-premise whereas others are available in the cloud. This type of ERP solution can give your business the best of both worlds. For example, you can get more customisation options like that of on-premise solutions with high scalability as that of cloud-based ERP.

Open-Source ERP

The source code of this ERP software is freely available and businesses can modify or customise this software as per their needs. This type of ERP offers reduced licensing costs with a high degree of customisation. However, it requires significant technical expertise and businesses have to handle its maintenance. Moreover, open-source ERP solutions can have hidden costs related to set up and modification.

SAP Business One for eCommerce is one of the most preferred ERP solutions in the UK and Europe. It is available as an on-premise solution and a cloud-based solution. A reputed ERP solution provider can assist you by explaining the scope and benefits of SAP Business One for the eCommerce sector.

Key ERP Features for E-commerce Businesses

An ERP solution for the eCommerce sector should have the following exclusive features for this sector-

Inventory Management

As one of the most beneficial features, inventory management offers tracking of stock levels across all sales channels as and when necessary. Businesses can get automated inventory updates to prevent overselling or stockouts.

Order Management

This feature offers automated order processing with accurate tracking and real-time status updates. E-Commerce companies can manage returns and refunds effectively with the help of this feature.

Customer Relationship Management

It has centralised customer data for offering personalised interactions. E-Commerce companies find it useful for maintaining long-term relationships and running marketing campaigns for target audiences.

Warehouse Management

This feature enables online store owners to monitor warehouse operations and movement of products. It also facilitates them to integrate the solution with shipping carriers for real-time location tracking.

Product Information Management (PIM)

It is useful for managing product data like descriptions, images, and pricing in a centralised manner. It ensures eCommerce companies to show product information across all sales channels consistently.

Reporting and Analytics

This feature is useful for generating detailed and real-time reports on sales, inventory, and customer behaviour. Several data analytics tools are useful for identifying trends for making informed decisions.

Moreover, an eCommerce ERP system should be capable of integrating with other business intelligence tools to offer real-time data synchronisation.

Tips to Choose the Right ERP E-Commerce Solution

Selecting the right ERP eCommerce system is a significant decision and therefore, it requires careful consideration of various aspects.

It is essential to identify pain points and determine specific features for your business. You can make a blueprint of an ERP solution based on future growth plans. Another crucial factor is integration capabilities. You need to ensure that the ERP solution you select should have capability to integrate seamlessly to the existing business system. You can also evaluate scalability and flexibility of the ERP solution. Cloud-based eCommerce ERP solution is a preferable option as it offers greater scalability.

Finally, an ERP solution should fulfill industry-specific requirements. For example, if you deal in perishable goods,a robust inventory management feature with expiry date tracking is necessary. You can evaluate vendor reputation and make sure that the vendor offers reliable customer support after implementation. You can also ask for demos and trials to know more about the functionality of ERP solutions.

Advanced ERP solutions like SAP Business One for eCommerce are highly advanced offering excellent data security and mobile accessibility. You can contact other eCommerce business owners who have already implemented ERP solutions for getting more details.

Challenges of Implementing an ERP for E-Commerce

An eCommerce environment is highly complex and competitive. Implementing an ERP solution within this environment is a real challenge. Let’s go through some major implementation hurdles-

Complexity of Data Migration

Transferring data from existing systems to the new ERP solution is a complex and complicated process. Data inaccuracies can disrupt operations and cause errors in inventory. Moreover, data breaches are also possible when migrating data improperly.

Change Management and Adoption

As ERP solution brings automation and streamlines processes, employees may create hurdles in its implementation. Therefore, change management is essential to establish for smooth adoption and quick execution.

Customisation and Integration

An eCommerce business depends on various interconnected systems including shipping providers, payment gateways, etc. It can be challenging to customise and integrate an ERP solution according to existing business processes.

Cost Considerations

Let’s face it. ERP implementation can be expensive as you need to consider costs including software licenses, hardware, training, and ongoing maintenance. Hidden costs can arise for migrating data and customisation of ERP solutions.

Scalability and Project Management

E-commerce businesses can grow rapidly. The ERP system should be capable of scale with the growth of your business. Furthermore, a lack of project goals and timelines can create hurdles in planning and lead to cost overruns.

A reputed ERP solution provider can assist you in addressing these challenges and complexities. It is fair to mention that you need to overcome these issues to leverage the benefits of an ERP system for your business.

Concluding Lines

E-commerce and ERP are indispensable for each other. A feature-rich eCommerce ERP system can offer more scalability and increase the efficiency of your business. However, it is necessary to select the right ERP system by considering various factors and consulting reputed vendors. Hope this guide will help you get the most suitable ERP solution to grow your online business in a thriving eCommerce sector.