The E-commerce platform is a boon for those who wish to buy/sell products or services online. Many E-commerce companies have taken the help of ERP systems to improve their business performances. Still, there are many remains which haven’t yet integrated an ERP with their existing system. That’s why this article focuses on the critical reasons why an E-commerce business needs ERP integration.

Why is E-commerce ERP Integration Essential?

An E-commerce company has to deal with an enormous amount of information compared to any other types of businesses. That data includes product & customer database, shipping, changing market & prices, and much more.

An ERP integration helps to:

  • Reduce inventory management costs.
  • Cut the error ratio in various business functions.
  • Offer a better buying experience to customers.
  • Improve employee productivity.
  • Get accurate analytics & reporting of production, sale, and more.

So, the Enterprise Resource Planning (ERP) software is considered as a vital part of any E-commerce business.

Reasons Why Your E-Commerce Business Needs ERP Integration

  1. Too much volume to manage

    You may need to deal with a vast amount of data to record, track, and process various business information. That data includes products, employees, customers, and other details. However, separately working front-end and back-end systems create havoc on the process of the company. As a result, your inventory management, customer experience, and sales data suffer a lot. ERP software integrates different business systems like inventory, account, sales, and more. It helps you to make better decisions and to contribute to growing your business at a faster pace.

  2. Maintenance cost increases for multiple resources

    It’s challenging to manage multi-store E-commerce business. You have to keep track of in-store & in-warehouse stock and have to maintain the quantity as per the demands. Manual management of such tasks can increase operational and maintenance costs. An ERP system provides accurate and real-time information of the products. Moreover, it helps to control the costings for various resources when the business expands. Such resources include labor, machinery, materials, and more.

  3. The customer wants a seamless shopping

    80% of buyers today want their products to be shipped within a day. Moreover, the company with robust Omnichannel strategies retains over 90% of consumers.

    Customers want brands to put more efforts in delivering seamless buying experiences. They wish for the revamping of the traditional E-commerce purchasing approaches. An ERP integration with your back-office system streamlines everything. It provides a reliable, unified, and end-to-end personalized user experience.

  4. IT management is complicated and tedious

    It becomes challenging for E-commerce businesses to manage multiple IT management systems. Many companies are still using accounting software only. They maintain other business components on their own. Such an approach makes the process tedious and disintegrated. Quality ERP software helps you to optimize everything from sales to finance and marketing. It allows you to run your business, and IT functions smoothly without creating chaos.


All the signs explained here are enough to let us realize the importance of ERP incorporation into an E-commerce platform. However, it is vital to pick up the right software integration to get optimal output. A combination of Magento platform with an ERP system will give you the power of meeting the next-gen customer demands. A Magento integration with ERP software is ideal for any E-commerce business. It helps you to offer enhanced customer experience. Along with that, to identify & address the problems regarding functionality, productivity, and management.

Author's Bio: 

Kaushal Shah manages digital marketing communications for the enterprise technology services provided by Rishabh Software. This article is written with an emphasis on top signals that shows that an ERP Ecommerce integration is needed.