ECommerce short for electronic commerce or internet commerce, refers to the buying and selling of goods or services via the internet, and the transfer of money and data to execute these transactions.
Integration in this instance is short for data integration. Integration is the process of combining data residing in different sources and providing users with a single unified view of that data.
This guide will tell you everything you need to know:
- What is eCommerce integration?
- What are the benefits?
- What are the obstacles?
- Why do you need eCommerce integration?
- How do you integrate your eCommerce business?
What is eCommerce Integration?
ECommerce integration is the coordination between a business’ eCommerce website and their back-end systems, such as an ERP or CRM system.
Connecting an eCommerce application to an ERP allows wholesalers, manufacturers, and retailers to create bidirectional flows of information between the two systems, meaning they only need to enter data into a single system.
For example, a business might use an ERP to keep track of inventory levels for each of its products. After implementing a direct-to-consumer business model, that company has begun to sell products online using a new eCommerce platform. When they sell an item online, the inventory count within their back-end ERP system must be adjusted to maintain accurate product numbers.
Without eCommerce integration, that business must manually update the inventory count in their ERP system AND in their eCommerce application.
And therein lies the value of a well-executed eCommerce integration. This strategy eliminates the need to enter the same information into two or more systems.
Efficient eCommerce integration creates accurate sales data through automated, real-time inventory updates in separate systems.
5 Benefits of eCommerce Integration
The need for eCommerce integration has astronomically increased as more companies embrace online sales and as brick and mortar stores become less and less critical. Here are five benefits to eCommerce integration adoption:
- Elimination of manual order entry: An eCommerce integration platform allows companies to eliminate manual and duplicated data entries, as well as improve the speed of data exchange, by integrating Magento, Shopify, Amazon and other eCommerce applications, with their own ERP systems. Manual data entry is time consuming and inefficient. A modernized eCommerce platform strengthens this process, improving customer service efficiency and satisfaction.
- Accurate data and inventory levels: With eCommerce integration, the accuracy of data is never left to chance. Manual data entry means there is always going to be an opportunity for error, whether large or small. Inventory synchronization, real-time track updates, and pricing, all speed through the data exchange to make it more accurate than ever before.
- Automatic notifications for customers: With your eCommerce application and back-end applications working in sync, automatic notifications for customers become easy. Customers know when you have shipped an order and they can track the delivery of their product.
- Simplified pricing: Pricing changes and product information updates are fast and decisive with only one update required in a single system.
- Opportunity to grow your brand through new markets: ECommerce integration offers your business the adaptability to enter more online marketplaces, without losing operational efficiency. With each added sales channel, new customers become available. Diversified revenue streams, enhanced customer experience, and improved operating margins are cherries on top of the opportunity to grow your brand through eCommerce integration.
Business processes become more efficient through eCommerce integration. Integrated data provides the insight you need to make better, smarter decisions that align with the company’s strategy.
At the end of the day, an eCommerce integration platform makes it so businesses can handle increased demand without needing added resources.
Companies that have an eCommerce ERP integration strategy are the ones who have embraced modernized technology and recognize not only the potential ways they can eliminate errors and improve efficiency, but also improve the way they deliver exceptional customer service.
4 Obstacles to eCommerce Integration
The necessity for eCommerce integration prefaces the inherent problem in creating a bridge between the ERP and the eCommerce platform. Creating a functional pathway requires technological capabilities that are beyond that of a legacy solution. It requires modern integration.
Oftentimes, key stakeholders overlook the business need for integrating ERP systems with eCommerce applications because of cost, or the concern that altering existing processes will disrupt the business.
To create a well-run eCommerce ERP integration platform, there are a handful of obstacles companies must overcome. Here are four obstacles:
- Not Understanding Requirements
- Outdated and Legacy Systems
- Lack of Multichannel Management
- Lack of visibility
Not Understanding Requirements: A major issue that companies face happens before they have even begun to utilize a centralized integration platform. Companies often are not sure where to begin.
IT stakeholders are unclear on what the business requires of them to successfully manage trading partners, customers, and all the internal and external integrations that comprise their digital ecosystem.
The process can feel overwhelming. IT managers worry whether they have the IT staff to support and maintain an integration platform on top of their regular duties. There is also the concern that migrating data from one system to another will result in errors, security risks, or data loss.
Before embarking on this integration modernization journey, companies must create internal alignment. They should determine what they are trying to achieve with integration, what challenges they must address, and what systems they plan on integrating.
Going a bit further, companies need to recognize what data should be synchronized between the systems, as well as what processes and workflows can and should be automated.
The right eCommerce integration project begins with the end in mind.
Outdated and Legacy Systems: While everything might appear to work as usual on the service, the fact remains that relying on legacy and outdated technology causes companies to drop and miss orders. Their technology does not provide end-to-end integration visibility for every single online order.
Compared with a modern integration platform, legacy systems are clunky and downright hard to work around.
Sometimes the tools and systems you have relied on for years work for your business and will continue to meet your daily business needs for the foreseeable future. But when you are ready to bring on new partners and services, migrate applications to the cloud, or support big data initiatives, legacy systems often do not provide the capabilities that the business requires to be successful.
If you are receiving charge backs from your trading partners, or you lack the technical ability to handle API integration requirements, it is likely time to consider modernizing your eCommerce solution.
Lack of Multichannel Management: Traditionally, an eCommerce platform provides companies with the technology that allows a merchant to sell to their customers on their very own website through a regular web browser. This fails to take in two important considerations:
Retailers also sell through many other channels, such as call centers, brick and mortar stores, mail order catalogs, online marketplaces, and other websites, to name a few.
Customers want to buy using their own devices, whether it’s an iPhone or their personal laptop, so there will be a constant challenge associated with getting master data that can sync up with the other systems connected to those customer touch points.
Lack of visibility: Companies who have yet to modernize their solution face a lack of visibility, which prohibits them from being able to make real-time decisions based on performance. By consolidating legacy integration systems to enhance business processes, companies can centralize the amount of control they have over a piece of data and gain end-to-end visibility.
Once companies have fully embraced a modernized integration platform, they can begin to gain complete visibility for every single online order. Think of the value gained from total omnichannel integration visibility. All your online, retail, and wholesale orders unified in a single view, with full EDI and API integration.
Why You Need an eCommerce Backend Integration Now
Regardless of the industry, organizations need to be able to connect their ERP.
It should not matter whether that’s Shopify or NetSuite as an eCommerce platform, companies need modern integration software that allows them to deliver everything faster to customers.
The reality in 2020 and beyond is that COVID-19 has changed retail forever. Because of the dramatic increase in online orders, eCommerce integration has never been more important.
Going forward, an eCommerce backend integration is fundamental to becoming an adaptable organization. Whether it is disruption in wholesale caused by disintermediation, or the explosion in eCommerce because of COVID-19, companies must recognize the importance of being agile and the need to grow their respective brands.
By installing an eCommerce integration platform, you are taking the important step in supporting your integrations across the entire supply chain, from logistics and transportation to manufacturing and wholesale and distribution.
Once you have fully modernized your eCommerce platform, the 2020 edition of Black Friday will be your most efficient and profitable one yet.
Top Marketplace Integration Tools Your eCommerce Business Needs
For sellers, these changes pose enormous opportunity. But all this “new” can be a lot to keep up with. How do you ensure you’re using the optimal tools and services for your unique business needs?
To help you answer that question, we’ve put together a list of five of the most useful eCommerce marketplace integration tools and services any seller can harness right now. These solutions make it easy to sell on multiple marketplaces at once, manage your resources and inventory, streamline your operations, and stay ahead of the competition.
1. Inventory management: SkuVault
No one likes sellouts. Inventory shortages frustrate customers (and would-be customers) and deprive sellers of the ability to sell at their fullest capacity. To succeed in multiple marketplaces and avoid overstocks and sellouts, you’ll need tools to keep an accurate count of current inventory. The best inventory management solutions also help you hone your competitive edge by providing detailed stock and sales data.
SkuVault goes above and beyond with a suite of options and controls designed to save time and frustration when locating items, ensuring accurate inventory levels, organizing purchase orders, performing quality control, and more. Features include real-time multi-channel synchronization, interactive wave picking, product kitting, and advanced inventory reporting.
Learn how to manage multi-channel inventory and sync across platforms
2. Hosted eCommerce: BigCommerce
The days when every eCommerce business needed its own website are over. Today, plenty of sellers can and do find success exclusively as third-party merchants on marketplaces such as Amazon, eBay, Walmart, Jet, and Etsy.
That said, there are numerous benefits to maintaining your own independent storefront: there are fewer fees to pay, you don’t have to share the space with competitors, your business isn’t constrained by the whims of the market, and you can completely control your customers’ shopping experience. For a seller with a strong brand and well-established product niche, an online store can generate serious sales.
Yet, many eCommerce businesses choose not to launch their own online shops, assuming there’s too much cost and complexity related to building and maintaining a website.
BigCommerce is here to prove these sellers wrong. The hosted storefront platform provides everything a seller needs to build an eCommerce site, drive traffic, and convert visitors into repeat customers. On top of all that, BigCommerce users can effortlessly connect their stores to major marketplaces and list their products on eBay, Amazon, Facebook, and even Instagram.
There’s a reason—dozens of reasons, in fact—that merchants on the platform experience year-after-year growth in excess of 25%.
3. Shipping and rate shopping: Desktop Shipper
Given that you’re reading this article on the Deliverr blog, you probably already use (or are considering using) one of the top eCommerce fulfillment solutions. If you’re expanding into a new channel in which you don’t have the choice to outsource fulfillment, however, you’ll need to determine the best approach to shipping and rate shopping.
See how much fulfillment would cost you with our cost calculator
It’s a simple fact that the more sales you make, the more packages you need to send out, and fulfilling each order takes time and money. Moreover, with consumers demanding faster and cheaper deliveries, as well as fierce competition from businesses offering next- or even same-day turnaround, multi-channel sellers need to provide their customers with the best possible delivery options.
This is why proficiency in shipping and rate shopping is so important for any eCommerce operation. Real-time rate shopping removes the guesswork from choosing the fastest, cheapest carrier and service every time. It also gives you the power to accurately price shipping and offer your customers greater flexibility during checkout.
As far as tools and services go, we recommend Desktop Shipper. This sophisticated—and affordable—cloud-based software lets you comparison-shop live between carrier rates for a variety of shipping companies, including USPS, UPS, DHL, and many more. You can instantly choose the cheapest option from all carriers, batch-print shipping labels, and automate time-consuming shipping research right from inside the app.
4. Accounting: QuickBooks and QuickBooks Online
Every eCommerce business needs an accounting solution, and for our money, there’s no better product on the market than QuickBooks. The number one accounting software remains popular for its flexibility, scalability, affordability, and ease of use. Regardless of the size of your business or the level of your accounting expertise, QuickBooks is almost always a great choice.
Whether you prefer QuickBooks’ Online or Desktop product, you can easily connect accounts and efficiently synchronize sales. Key features for multi-channel eCommerce operations include automatic synchronization of sales with accounting data, and the option to export or upload data in order to track sales and expenditures across multiple marketplaces.
5. Total multi-channel control: SellerActive
Yes, we’re including ourselves on this list—not as a mere act of self-promotion, but because our solution complements each of the tools above.
SellerActive’s repricing and channel management capabilities synchronize with your inventory, storefront, shipping, and bookkeeping software, so you can retain full operational control of your eCommerce sales everywhere you do business.
We currently offer more than two dozen integrations with services across the eCommerce lifecycle—from order management to fulfillment to accounting—and we’re continually working on adding more to meet our users’ changing needs. Everything related to your listings and orders is consolidated into a single platform. In the words of one of our customers, “it’s like having two extra employees whose full-time jobs are managing my inventory and pricing.”
One key SellerActive feature worth mentioning here is our algorithmic and rule-based repricing functionality, which taps directly into eCommerce channel APIs. With an automated always-on or conditional pricing strategy, you’ll capture more Buy Boxes and never miss an opportunity to outperform your competitors—without ever needing to lift a finger.
With these tools in place, any seller can set the most time-consuming, frustrating aspects of multi-channel eCommerce on autopilot and focus instead entirely on growing business. Rather than keeping up with trends, you’ll be setting them.
CONCLUSION
After you’ve installed your next-gen solution and launch a new ecommerce website, you’re more than halfway there to controlling your product data. Your second major hurdle is integrating your ecommerce site with Point of Sale (POS) systems. This article discusses how you can use the right tools to integrate your new website with the POS system currently being utilized by your store.