Magento is a top-rated eCommerce platform designed to facilitate and streamline the online sales process. Online stores generate tons of customer data that merchants need to process and organize. They also require enterprise resource planning (ERP) software to perform other business functions not achievable on their e-commerce sites.
ERP systems enable businesses to manage and track their enterprise resources like customer details, inventory, production and manufacturing details, etc. You can automate many processes by integrating your Magento store with a reliable ERP system.
If your online business runs on Magento, here’s why you should integrate it with your ERP.
Data Synchronization in Real-Time
When you integrate your Magento eCommerce site with an ERP system, critical data gets synced automatically between the two systems. For instance, orders placed on your online store update on your ERP instantaneously. Similarly, product updates on your ERP will reflect on your Magento store in real-time.
This rapid and seamless process brings about better visibility into your customers, products, orders, stock, prices, and other critical data. It enables you to achieve voluminous stock, price, and order updates every day with little effort.
According to Google, 34 percent of eCommerce retail purchases take place via mobile devices. For this reason, your online store should feature a responsive design, like Magento sites.
Responsive web design (RWD) creates websites that provide a seamless experience across devices with different screen sizes and resolutions. A mobile user should view the same content as a desktop user without hassles like scrolling and zooming.
Most likely, your ERP is responsive. Integrate it with your Magento eCommerce site to access your store and business data on any of your devices. It will enable you to monitor and update your store at the office and on the go.
Robust and Scalable Business Solutions
Magento can accommodate all your online business needs and support any number of orders. It can handle 500,000 products and at least 80,000 orders per hour. The only restriction to expanding your catalog would be your server capacity.
Apart from smoothening online business, it allows you to exploit immeasurable transactional data. Undoubtedly, ERP is the ideal tool to collect valuable business data from your eCommerce website. Magento integration with ERP facilitates seamless data transfer between the two platforms.
A fantastic thing about Magento is its compatibility with virtually all ERPs. So, you don’t have to worry about importing your business data if you have to migrate to another ERP.
Also, Magento grows with your business. If your store has a few products and a handful of daily transactions, the platform will accommodate your needs when your business grows.
Less Room for Errors
Human error is inevitable even if you invest in the most advanced business systems. Unfortunately, even an honest mistake can have devastating impacts on your business. For instance, a slight overpricing error or some order discrepancy can chase customers away and ruin your business reputation.
Magento integration with your ERP reduces the chance of making mistakes in your online business processes. Your eCommerce site pulls information from your ERP system in its original state.
If the system detects an error, it sends an email alert to the administrator. Every data update reflects on the two platforms, ensuring no data loss.
Time Saving on Data Transfer
ERP and Magento integration eliminates the need to enter the same data into two systems or transferring from one to the other. Data flow is autonomous and bidirectional, and it follows specific rules.
An ERP imports customer information and details on orders and payments from Magento. At the same time, it sends data regarding pricing, inventory levels, order status, and returned items to your eCommerce application.
Enhanced Revenue Management
Another reason to integrate Magento with your ERP is to gain better financial transparency and revenue management. Using your eCommerce platform, merchants can track their earnings effortlessly using detailed transaction data and accurate feeds. You can also produce comprehensive financial reports on sales.
Magento-ERP integration does more than that. You can generate real-time financial reports like cash flow statements, trial balances, balance sheets, and profit and loss statements. All the data you need to make informed decisions is easily accessible, enabling you to adapt and set long-term business goals.
Reduced Inventory Costs
We’ve already mentioned that integration updates sales information on your ERP and Magento in real-time. An added benefit is that it enables users to maintain optimum inventory levels.
Since all online transactions reflect in the ERP automatically, merchants can monitor their stock round the clock and know when to replenish. This ensures no shortage or overstock, reducing inventory management costs. Your eCommerce site becomes more resourceful by having accurate sales and inventory data.
Magento utilizes Hypertext Transfer Protocol Secure (HTTPS) and Secure Sockets Layer (SSL) to ensure secure data transfer. HTTPS establishes secure connections over computer networks, while SSL encrypts communication between websites and web browsers.
With the two security measures, you can rest assured that data synchronization between Magento and your ERP is secure and anonymous. It’s hard for third parties to access or intercept data.
Quicker Accounting Processes
Integrating a Magento eCommerce site with an ERP system can hasten the accounting process for the cost of goods and tax. From the ERP, you can simplify purchases by setting specific policies and rates for your online store. These automated operations not only reduce the probability of human error but also save you time and money.
Furthermore, all vital tax information resides in one place, so you don’t need to transfer data across systems manually. You can even link it with an IRS-compliant accounting tool like Xero for quicker tax preparation.
You achieve simplified tax compliance by synchronizing your tax rates per region or customer. Therefore, you can calculate the correct tax amounts your various customers need to pay. This minimizes errors that would lead to noncompliance with local tax regulations and benefits customers eligible for a VAT refund.
Rich Customer Experience
Incorporating your Magento-based online store with your ERP can enhance the shopping experience on your digital store. Since can’t respond to all customer queries via the phone, ERP-Magento integration gives more control to customers.
With real-time data synchronization, you can quickly add data to the storefront. Customers can check whether the items they want are available, search by categories, compare prices, and add products to their carts. They can also receive updates about their purchases, including order processing, shipping information, delivery dates, and more.
If you integrate Magento with your ERP, your customers will less likely have to face unforeseen stock-outs and delivery disappointments. Complete inventory control, prompt procurement, and timely order shipment boost online shopping experience, fostering customer loyalty.
Demand Fluctuations Control
Another benefit of staying on top of sales and inventory is that you can handle demand fluctuations more effectively. With real-time data from Magento and your ERP, you can prevent potential losses from expired products by offering discounts on the overstayed stock.
While high demand is desirable in business, it sometimes brings interesting challenges in eCommerce. For instance, you can oversell your products and run out of stock if you can’t monitor your inventory in real-time. Besides driving customers to your competitors, some marketplaces like eBay and Amazon can suspend your store if you keep running out of stock.
Merchants gain more inventory visibility by integrating their Magento stores with ERPs. Sync your stock and orders on your online store and various market places and adjust stock levels accordingly after each sale.
Timely Customer Support
Through integration, ERP systems supply Magento with updated information about customer orders. As a result, your support team can closely track orders and keep updating customers about delivery.
Customers can monitor their shipments from their store accounts. If they face a problem, they can expect prompt customer support because information about their orders is readily available in a centralized system.
Organizational Data Management
Integrating Magento with ERP enhances data sharing and reduces silos in business processes. Every user accesses the data they need without meddling with multiple data platforms.
By gathering eCommerce data in one repository, searching becomes stress-free. Retailers can monitor various aspects of their digital stores remotely within a single hub. You can view orders and update stock levels at any time.
Additionally, more data access through ERP and Magento integration facilitates analytics and reporting. You can analyze customer behavior and draw insights that can inform your stocking decisions.
Self-Service for Customers
Your ERP system draws customer data from your Magento eCommerce store, from contact details to order history. This enables your customers to retrieve their historical data, generate reports, and even place quick orders based on past transactions.
By empowering customers with self-service features, your sales and marketing team gets more time to contact and nurture new leads.
Magento Website Integration Services
No eCommerce development platform beats Magento’s power and flexibility. It’s a free, open-source platform with at least 150,000 innovators to keep up with the ever-changing face of online business. You can install unlimited eCommerce best-practice extensions to enhance customer buying journeys.
Do you need help amplifying your online store performance? MageMontreal is a certified Magento agency offering superior website development and customization to maximize your e-commerce performance.
Contact us today for all your website integration requirements.