ERP E-Commerce Integration: How It Works & Best Solutions for Brand Growth

What Is an ERP E-Commerce System?

An ERP e-commerce system is an enterprise resource planning system suited to e-commerce brands that sell direct-to-consumer. It features pre-built modules that connect operational data in one source of truth. From customer interactions and orders to inventory management and shipping.

Integrating e-commerce tools with ERP Software has several advantages. It improves real-time data synchronisation, optimises inventory to avoid overselling or stockouts, and automates time-consuming manual processes like customer service requests.

In terms of deliverables, the 45% of businesses that integrated their e-commerce functions with cloud-based ERP have:

• Maintained customer retention levels of 70%
• Doubled annual growth in B2B e-commerce revenue
• Reported 1.8x gains in customer satisfaction
• Boosted customer trust and confidence by 40%

Most crucially, ERP e-commerce systems deliver integration methods that allow businesses to integrate their existing e-commerce platform. Vendors provide native and pre-built connectors to ensure ERPs easily and seamlessly integrate with platforms like Shopify, BigCommerce, and Magento.

ERP e-commerce systems are favoured by a range of businesses, from SMBs tracking inventory and financial data on spreadsheets to larger operations using various, disconnected cloud-based tools for multiple business functions. With an integrated ERP system, the process becomes more agile and time efficient, like so:

Use our finder tool to easily select an ERP e-commerce system that integrates with your brand’s platform to connect customer, order, financial & inventory data.

How Does ERP E-Commerce Integration Work?

ERP e-commerce integrations connect your e-commerce platform and online store with your ERP system. This enables data to flow seamlessly between sales, inventory, finance, and fulfilment.

As an example, to integrate Shopify with Microsoft Dynamics 365 Business Central via a native integration, you would follow these six steps:

1. Install the Shopify connector app from within Dynamics 365 Business Central.
2. Configure the connection by entering your store credentials and setting permissions.
3. Map key data entities such as products, inventory levels, customers, and orders between the two systems.
4. Set up automatic synchronisation rules (e.g., sync inventory every hour, push new orders in real time).
5. Test the data flow by placing an order and confirming it appears in Business Central with accurate line items, tax, and customer details.
6. Review and adjust settings based on business logic, such as assigning warehouses, tax codes, or payment terms.

The example above is seamless due to the use of a native integration connector. Native integration means most of the heavy lifting – authentication, data mapping, and error handling – is built into the ERP system. This reduces the need for third-party tools or custom development.

What Are the Best ERP E-commerce Systems for Brand Growth?

ERP E-commerce Features That Impact Each Stage of Brand Operations

1. Procurement/Manufacturing

Automate purchase orders based on inventory thresholds and track supplier pricing and lead times. ERPs manage Bills of Materials for manufacturing and support production scheduling aligned with raw material availability. They also offer supplier performance analytics, which enables efficient procurement, accurate planning, and better supplier management.

2. Inventory Management

ERP systems provide real-time inventory data across warehouses, stores, and sales channels. They automate stock alerts and reordering, track items by batch, lot, or serial number, and generate reports on stock valuation and turnover.

3. Product and Catalogue Management

Centralised control of product data including descriptions, variants, and pricing. ERPs support multi-channel product syndication and store digital assets like images and spec sheets. Custom pricing can be set per channel or customer type.

4. E-commerce Platform Optimisation

ERP systems enable the real-time synchronisation of inventory, pricing, and orders with e-commerce platforms. They support omnichannel data visibility, automate the publishing of product updates to online stores, and integrate with CMS platforms, marketplaces, or point-of-sale systems.

5. Customer Acquisition

Support lead tracking and segmentation, linking campaign performance directly to order data. Enable personalised offers based on purchase history and provide abandoned cart insights when integrated with the eCommerce store.

6. Sales and Order Management

Automatically generate sales orders from your e-commerce platform and support multi-currency, multi-channel pricing. E-commerce ERPs provide tools for order tracking, holds, and approvals, manage discounts, coupon codes, bundle pricing, and handle credit limits and payment terms.

7. Order Fulfillment and Shipping (+ Returns)

ERP e-commerce systems manage pick, pack, and ship workflows. They integrate with carriers to provide real-time shipping rates and tracking. They automate the generation of shipping labels and documents, handle returns, and track key fulfilment KPIs such as time to ship, order accuracy, and delivery performance.

8. Finance and Reporting

Real-time profit and loss statements, cash flow insights, and balance sheets. Systems automate invoice generation from e-commerce orders, reconcile payments and fees from providers like Stripe or PayPal, ensure tax compliance across VAT and cross-border rules, and offer custom dashboards by product, sales channel, or region.

9. Customer Service

Centralise customer records, including orders, returns, and communications. Systems support self-service through customer portals, manage support cases or tickets, and track return statuses in real time. Integrate with loyalty programmes to enhance customer engagement and post-purchase experiences.

How Brands Benefit From Integrating Platforms With ERP E-commerce Systems

Real-Time Visibility From Cart to Cash

63% of businesses consider real-time data access the most critical benefit of ERP e-commerce integration. By syncing order, inventory, customer, and financial data, brands eliminate data silos and make faster, more informed decisions. Before ERP integration, an e-commerce operation looks like this:

1. Orders in Shopify
2. Inventory in spreadsheets or WMS
3. Financials in QuickBooks
4. Procurement tracked in emails

Instead, ERP e-commerce integration brings all this together for one source of truth.

Workflow Automation That Scales With Your Store

Manual tasks drain time and increase the risk of human error. For brands, ERP systems automate:

• Order routing and fulfilment
• Stock level triggers and replenishment
• Customer communications like dispatch notifications
• Invoice and payment reconciliation

This results in fewer order errors, faster shipping, and reduced operational overhead.

Unified Fulfilment for All Sales Channels

An integrated ERP system allows brands to process retail, wholesale, B2B, and dropship orders from a single platform. It also improves delivery accuracy with real-time order tracking and estimated delivery dates, simplifying post-purchase experiences.

Enhanced Customer Experience and Retention

Customer data across orders, returns, and support is unified, making it easier to:

• Handle service requests efficiently
• Track orders and returns
• Personalise offers and communications

This leads to higher conversion rates, more returning customers, and better overall satisfaction.

Drive Growth and Scalability

Ultimately, the use of ERP e-commerce systems enables brands to operate smarter, not harder. Integrated systems help scale with increasing order volumes while reducing manual effort, boosting sales and revenue, and supporting stock optimisation and demand forecasting.

Implementation Risks E-commerce Brands Need to Know

While integrating an ERP e-commerce system can deliver huge operational gains, it comes with notable risks that brands must manage carefully.

• Integration complexity: especially if your ERP lacks a native connector for platforms like Shopify or Magento. Without a ready-made integration (and native connector), brands face costly and time-consuming custom builds involving APIs, middleware, or third-party tools.
• Data migration: E-commerce businesses manage vast volumes of product, customer, and transaction data across multiple systems. Migrating this data into an ERP can lead to errors, data loss, or incorrect mapping, which can disrupt operations and customer experience. Ensure to review and clean your data before implementation.
• Compatibility issues: Legacy ERP systems and modern cloud-based e-commerce platforms can create bottlenecks, particularly around synchronised pricing, inventory, and fulfilment data.
• Data and customer security: The recent Marks & Spencer (M&S) data breach, where personal data was inadvertently exposed during a system integration, highlights the consequence of poorly managed data handling during ERP rollouts.

ERP E-Commerce FAQs

What Are the Types of ERP E-commerce Integration Methods?

• Point-to-point: A direct link between systems, suitable for small-scale setups.
• Pre-built connectors: Ready-made apps that sync popular platforms like Shopify with ERPs such as NetSuite or Dynamics 365.
• Add-ons: ERP extensions designed for e-commerce use cases.
• Middleware/iPaaS (e.g. Celigo, Patchworks): Centralised platforms that manage data between multiple systems.
• Custom-built integrations: Tailored solutions using APIs or scripts.
• Native integrations: Built-in features provided by the ERP or e-commerce platform.

What Brands and Industries Best Suit ERP E-commerce Integration?

ERP e-commerce integration is best suited for brands with complex operations, multi-channel sales, and high-volume order processing. This makes it essential for:

• Brands selling D2C
• Brands selling on multiple channels (D2C, Amazon, eBay, etc.)
• Wholesalers and B2B distributors
• Dropshipping marketers
• Manufacturers selling D2C
• Brands selling internationally