by
12/03/2024
For ecommerce businesses, enterprise resource planning (ERP) platforms have become essential tools, streamlining a wide range of operational needs. These systems are now used by companies of all sizes, from small and mid-sized businesses to large enterprises.
An effective ERP system can significantly enhance the operational efficiency and profitability of an ecommerce platform, ultimately allowing companies to achieve more with fewer resources.
As ERP adoption continues to expand, the global ERP software market will rise from $81.15 billion in 2024 to $238.79 billion by 2032. With this rapid growth, decision-makers need to understand what ERPs can do for their businesses.
What is an ERP platform?
Brands with an ecommerce store are likely intimately familiar with enterprise resource planning (ERP) platforms. ERPs have become ubiquitous in the ecommerce sphere, with SMBs joining enterprise companies at the table.
Ecommerce ERPs support a variety of business management needs, from procurement to logistics to financial reporting. They enable businesses to automate processes, pull insights, and streamline workflows.
A strong ERP software enables ecommerce sites to operate more efficiently and deliver more for less.
How ERPs can benefit ecommerce businesses
For existing stores, the best ERP ecommerce integration can streamline business functions to create better processes and experiences for customers. Businesses can leverage platforms to automate some processes or to perfect others. Integrated well, an ERP optimizes an ecommerce solution from top to bottom.
Improved inventory management.
Ecommerce ERPs significantly enhance inventory and warehouse management by providing real-time tracking, offering businesses visibility into stock levels to prevent stockouts and overstock. With powerful analytics, ERPs help with demand forecasting based on sales trends, allowing businesses to maintain optimal inventory. Many ERP systems also feature automatic reordering, which triggers replenishment when stock dips below set levels, reducing manual work and ensuring products are always available to meet customer needs.
Enhanced customer experience.
ERPs boost shopper satisfaction by ensuring smooth order processing and real-time updates, so customers always know the status of their purchases. They also consolidate product information, customer data, enabling personalized communication that strengthens connections. Plus, ERPs simplify returns, making the process hassle-free for both customers and businesses — an essential touch that fosters loyalty and repeat business.
Efficient financial management.
ERPs streamline financial management by automating invoicing, billing, and payment processing — reducing errors and saving finance teams valuable time. With real-time insights into cash flow, ERPs empower businesses to monitor their finances closely, making it easier to manage expenses and ensure steady operations.
Beyond basic accounting, ERPs simplify tax compliance by automatically applying the correct tax rules and generating accurate, detailed financial reports. This level of automation helps businesses stay compliant while gaining a clear, organized view of their financial health, which supports smarter, data-driven decision-making.
Simplified order processing and fulfillment.
ERPs simplify order management by gathering orders from all sales channels — whether on the website, social media, or online marketplaces — into one central system. This unified view lets businesses easily track and manage orders without switching between platforms, making the process smoother and more efficient.
ERPs also streamline shipping, automating tasks to ensure fast and accurate fulfillment. By reducing manual work, they help minimize errors and speed up order processing, allowing businesses to meet customer expectations for quick and reliable delivery every time.
Better decision-making with real-time data.
ERPs offer built-in business intelligence tools that help brands analyze performance and spot trends — all while providing a single source of truth with accurate, consolidated data for informed decisions. As companies expand, ERPs scale seamlessly to support increased transactions and a broader product range, providing the infrastructure needed to manage complexity efficiently.
Enhanced supply chain and vendor management.
ERPs improve vendor and supply chain management by creating a seamless communication channel with suppliers and distributors, which fosters better collaboration and alignment. With omnichannel insights, ERPs provide visibility into every stage of the supply chain, enabling businesses to quickly identify and address bottlenecks or inefficiencies, ensuring a smoother flow of goods from supplier to customer.
Additionally, ERPs support cost-effective purchasing by providing data-driven insights into vendor performance, pricing, and inventory needs. This level of visibility allows businesses to make informed purchasing decisions and build stronger, more strategic vendor relationships that benefit both parties.
Types of ERP systems to consider
ERPs typically fall into one of three system models. The differences come in use and integration type. Most major ecommerce ERP providers and APIs such as Acumatica, SAP, Dynamics 365, Epicor, and Oracle NetSuite can handle any kind of integration.
On-premises ERP.
An on-premises ERP system is installed directly on an organization’s servers and computer equipment, keeping the software and data securely within the company’s physical location. This setup offers several unique benefits and drawbacks that businesses should consider.
Advantages
One of the primary benefits of on-premises ERP is the lower cost over time since it avoids the recurring subscription fees associated with cloud-based ERPs. Businesses can fully customize the system to meet their needs during initial implementation and at any point afterward, giving them complete control over how the ERP functions.
From a security standpoint, on-premises ERP systems keep all company data on-site, making data as secure as the organization’s physical premises. Additionally, with software and hardware on-site, companies don’t rely on external vendors for system maintenance. A skilled IT team can handle ERP issues and upgrades internally, giving businesses greater autonomy and control over their ERP environment.
Disadvantages
On-premises ERP systems can require a significant initial investment, covering the cost of hardware, software, and future replacements. Additionally, software upgrades are necessary to maintain security and performance, and these updates can be costly, depending on frequency and complexity.
Maintaining data backups and performing upgrades in-house can also be risky, as mistakes in these processes can lead to corrupted files and potentially compromise data integrity. Businesses should weigh these additional costs and risks carefully against the benefits of a fully self-managed ERP system.
Cloud-based ERP.
External providers host a cloud-based ERP system in data centers, making it accessible over the internet. These ERPs can be deployed as either a hosted model or as software-as-a-service (SaaS), making them accessible to users on both desktop and mobile devices.
Advantages
Cloud-based ERPs reduce silos by centralizing data, providing all teams with easy access to critical information. One of the main advantages of a cloud-based ERP is its lower initial investment. Unlike on-premises ERPs, there’s no need to invest heavily in hardware, extensive IT staffing, or specialized maintenance as the provider manages these systems. Cloud ERPs often include automatic updates to stay current with the latest features and security patches. Customization is also relatively flexible, with many providers offering modular add-ons and integrations to allow businesses to adapt the ERP to their changing needs.
Although relying on an external provider for data storage can be a concern, reputable cloud ERP providers invest in robust security measures, such as data encryption and strict compliance protocols, to protect sensitive information. Cloud-based ERPs also offer built-in backup and recovery options, minimizing the risk of data loss from hardware failures, natural disasters, or security breaches, providing peace of mind for ecommerce businesses.
Disadvantages
Over time, subscription fees for cloud-based ERPs can add up, sometimes leading to a higher total cost than on-premises options as the business scales. Additional charges may also apply for advanced features or integrations, which can affect budgeting.
While cloud ERPs offer some customization, they are often more limited than on-premises systems. Companies may need to work closely with the ERP vendor for highly specialized functionality, which can add time and expense. Additionally, storing data on the cloud introduces privacy concerns, as data hosted off-site may be more vulnerable to unauthorized access in the event of a provider breach. For businesses in highly regulated industries, it’s crucial to verify that the ERP provider meets all necessary compliance standards, as failing to comply could result in legal or operational challenges.
Hybrid ERP.
Hybrid ERPs allow businesses to choose specific modules for on-premises or cloud use, adapting to unique needs. This approach provides flexibility and scalability, blending elements of control with cloud convenience.
Advantages
Hybrid ERPs offer flexible cost allocation, as businesses can keep critical functions on-premises while leveraging cloud components for other needs, helping to reduce initial expenses compared to fully on-premises setups. This flexibility is ideal for companies looking to control costs while scaling gradually.
Hybrid ERPs also provide extensive customization options, enabling tailored solutions for unique business needs and allowing for controlled upgrades. Security control is enhanced, as sensitive information can remain on-premises, reducing cloud-related data risks. Additionally, with data stored across both environments, hybrid systems improve data redundancy and recovery capabilities, offering robust protection in case of data loss.
Disadvantages
Maintaining both cloud and on-premises infrastructure in a hybrid ERP setup can lead to higher long-term costs due to the dual-system requirements. The cost structure can be complex, with the potential for unforeseen expenses as businesses integrate and manage both environments.
Maintaining a hybrid ERP system also requires considerable IT resources, as both on-premises and cloud components must be updated and synchronized regularly. The cloud side may have limited customization options, meaning some functionalities might not be as adaptable as those on-premises, leading to potential functionality gaps.
Security management is also more complex in a hybrid setup, as businesses need to secure data across both environments, requiring more advanced protocols and monitoring. Additionally, without careful data integration, companies may face consistency issues or potential breaches, as synchronization across both environments can pose unique challenges.
How to choose the best ERP for your online business
Choosing the right ERP solution is crucial for supporting and scaling an ecommerce business. A well-suited ERP can streamline operations, enhance the customer experience, and ultimately drive growth, making it a valuable asset as brands evolve in a competitive market.
The right ERP will optimize workflows, from inventory management to customer service, and provide the flexibility needed to adapt as demands change. However, with so many options available, finding the best fit can take time and effort. Below are key criteria to guide brands in selecting an ERP that aligns with their unique needs and business goals.
Scalability.
When selecting an ERP, choosing a system that can grow alongside a business is essential. As an ecommerce store expands, so will transaction volumes, inventory, and customer data. A scalable ERP should be able to handle these increases seamlessly without compromising performance or requiring a costly overhaul. Look for an ERP solution that can support current needs and future growth, with the ability to add features, users, and integrations as the business evolves.
Ecommerce integrations.
Compatibility with an ecommerce platform and essential third-party tools is key when selecting an ERP for an online business. A strong ERP should seamlessly integrate with commerce platforms like BigCommerce, Shopify, Magento, and other major ecommerce systems to ensure smooth data flow and unified management.
Additionally, look for an ERP that supports connections with third-party tools such as payment gateways, CRM systems, and shipping providers. These integrations allow businesses to operate more efficiently by centralizing workflows and minimizing manual data entry, ensuring that the ERP enhances rather than complicates ecommerce operations.
Customization and flexibility.
Every ecommerce business has unique workflows and processes, so it’s essential to choose an ERP that offers robust customization options. A flexible ERP allows brands to tailor features and functions to match specific business needs, from inventory tracking to customer service workflows.
Businesses should look for a system that can adapt to preferred processes rather than forcing them into rigid, pre-set configurations. Customizable ERPs can grow with a brand, enabling them to refine and expand capabilities as their business evolves, ensuring a seamless fit at every stage.
Cost-effectiveness.
Cost is a crucial factor when selecting an ERP, as it should provide value without straining a brand’s budget. Consider both the upfront costs, such as implementation and setup, and ongoing expenses, like subscription fees or maintenance costs.
While cloud-based ERPs often have lower initial costs, on-premises options may offer long-term savings. Evaluate how each ERP’s cost aligns with budgets and expected return on investment to ensure it’s a sustainable choice that meets the business’s financial needs as it grows.
Best ERP software solutions for ecommerce growth
With a wide array of ERP solutions available, finding the right fit can be overwhelming. The best ERP system will depend on a brand’s specific needs, industry, and growth goals. For example, ERPs, like Microsoft Dynamics, offer robust human resources management capabilities for ecommerce companies.
Certain ERP platforms stand out for their popularity and performance among BigCommerce clients across diverse industries. Below are some of the top choices that ecommerce businesses rely on to streamline operations, enhance scalability, and support growth.
Acumatica.
Acumatica is a robust ERP that natively integrates with BigCommerce. This tool allows businesses to handle back-office tasks directly from the ERP, with automatic data sync to BigCommerce for a unified front and back end.
The system is flexible and user-friendly, so businesses can easily adjust workflows without needing a developer. For companies with multiple warehouses, Acumatica’s inventory management allows them to monitor stock across various locations.
Built for B2C, B2B, and DTC sellers, Acumatica offers out-of-the-box support for customer-specific pricing, promotions, and more. It synchronizes products, customers, sales orders, and financial data between BigCommerce and Acumatica, ensuring accurate and up-to-date information across all channels, making it a powerful choice for ecommerce growth.
Oracle Netsuite.
Oracle NetSuite is another popular ERP solution that seamlessly integrates with BigCommerce to streamline operations. With the NetSuite Connector, businesses can manage orders, inventory, and finances from a unified platform.
NetSuite’s real-time inventory management helps prevent stock issues across multiple locations, making it ideal for companies with complex logistics. With automated accounts receivable processes, NetSuite provides clear visibility into cash flow.
The system syncs data between BigCommerce and NetSuite, keeping products, orders, customer records, and financials up-to-date and alleviating back-office tasks.
Brightpearl.
Brightpearl is an ERP tailored for retail and ecommerce, offering seamless integration with BigCommerce to simplify order, inventory, and customer management. Known for its powerful automation, Brightpearl streamlines order processing, inventory updates, and financial reporting, reducing manual work and improving accuracy — especially during high-demand periods.
With real-time inventory tracking across multiple channels, Brightpearl helps businesses avoid stockouts and overstock. Its centralized data on customers, orders, and financials provides valuable insights for smarter decision-making.
Success stories with Bigcommerce and ERP integrations
Countless brands take advantage of BigCommerce’s ability to seamlessly integrate an ERP. Discover how the platform’s freedom and flexibility enable these companies to improve the back end and customer experiences.
Van Cafe.
Van Cafe manufactures and sells OEM Vanagon parts and accessories to a variety of clients ranging from van companies to van enthusiasts. After experiencing challenges integrating Acumatica into their ecommerce software, Volusion, the brand knew they needed to find a new platform.
Van Cafe launched on BigCommerce in January 2022, and having the BigCommerce Acumatica ERP connector installed made it possible for the company’s customer data, inventory, products, and third-party apps to integrate into BigCommerce seamlessly.
"Finding an ecommerce platform that could integrate with our ERP system drove our decision for who we were going to use as our next provider. Volusion didn’t have the capabilities we needed, but BigCommerce did,” explained Ingrid Getzan, Director of Sales and Marketing at Van Cafe.
Toolsaver.
Toolstop began as a small hardware store in the UK, but after launching its first ecommerce site in 2007, the company quickly grew across the UK and overseas. With growing demand for wholesale, Toolstop soon launched a new brand, Toolsaver, to support its B2B operations. With B2B orders processed manually, Neil Bruce, Toolsaver’s ecommerce manager, knew they could streamline operations with a B2B online store.
This led them to host both Toolsafer and Toolstop on BigCommerce. Since launching, they’ve been able to seamlessly integrate their ERP, Sage 200. Now, when customers place orders through either the Toolstop or Toolsaver website, those orders feed into the ERP and are sent to handheld scanners on the warehouse floor.
“One of the big factors was that BigCommerce had such an open API architecture. It allowed us to bring people in-house that would be able to develop systems that would integrate seamlessly with the BigCommerce platform,” said Neil Bruce, Ecommerce Manager at Toolsaver.
GourmetFuel.
Since 2014, GourmetFuel has made creating and delivering delicious, healthy cuisine its business. After experiencing challenges hosting on different ecommerce platforms, the brand migrated to BigCommerce.
The software’s freedom and flexibility have enabled GourmetFuel to configure its ERP tool, Odoo, to complement the BigCommerce front-end and the brand's subscription management software.
“I was pleasantly surprised how easy it was to get the APIs and the scripts produced between the two systems. The real beauty was being able to feed order information back into our ERP system to create accurate and efficient production plans, increasing quality control and reducing waste,” explained Rob Buckley, Managing Director of GourmetFuel.
Home Outlet.
Since 1885, E.C. Barton has supplied shoppers with quality building materials. Over the years, additional brands have launched under E.C. Barton, such as Home Outlet, which offers everything from bathroom to kitchen home improvement products. After experiencing several challenges with their ecommerce platform, including issues integrating their ERP, Home Outlet decided to migrate to BigCommerce.
With the help of their agency partner, Mira Commerce, Home Outlet seamlessly integrated their ERP — streamlining business operations.
“Mira Commerce was instrumental in connecting our ERP system and making sure that everything talks and communicates,” said Shannon Russell, Ecommerce Manager at Home Outlet.
The final word
ERPs have become essential for ecommerce businesses looking to streamline operations, enhance customer satisfaction, and support growth. With various ERP options, businesses have the flexibility to choose a system that best fits their needs and scales with them over time.
As ERP adoption grows and the technology advances, the impact on ecommerce will continue to expand, providing more powerful tools for businesses of all sizes. Whether a brand is small business or a large enterprise, choosing the right ERP can be a transformative step toward long-term success in today’s competitive ecommerce landscape.