If your business sells products online, processes large orders, and manages complex inventory while using multiple sales channels, integrating ERP with e-commerce platforms is advisable. Such integration becomes almost mandatory if you also deal with custom pricing structures. This integration helps your business reduce errors, save time, improve customer experience, and scale efficiently.

It can, for instance, automatically transfer order details from e-commerce to the ERP, instantly update customer data, allow customers to view up-to-date inventory levels, and more in an automated and scalable manner.

ERP E-Commerce Integration: The Steps to Take

Yet before searching for available integration solutions, let’s go through all the reasonable steps to take when integrating your ERP with E-Commerce Platforms one by one.

1. Engage Relevant Stakeholders Early

Involve all key stakeholders (e.g., IT, operations, marketing, customer service) from the start. This ensures a comprehensive understanding of pain points and aligns goals across teams before deciding on the integration solution to use. All the data relevant to stakeholders should be synchronized and kept up to date across all systems they use, as long as it’s technically possible to do so.

2. Identify Pain Points and Unique Workflows

Analyze the challenges your business faces based on the feedback from different teams (e.g., manual data entry errors, delays in processing) and the unique workflows that need support (e.g., multi-channel sales, custom pricing, etc.). For example, warehouse employees should have immediate access to new orders at the start of their shift, rather than experiencing delays of several hours. They should also be able to process orders within a single system, without needing to search across multiple platforms for different pieces of information.

3. Set Measurable Objectives

The aim of system integration is usually to make the exchange of data fully automatic; it means that any record for which data is to be obtained from another system should be updated fully automatically. Clear integration objectives could be:

• automate sync of inventory in real time to prevent overselling or stockouts;
• automatically sync recalculated prices as soon as these are changed;
• automatically sync orders from the e-commerce platform into the ERP for efficient fulfillment;
• automatically sync customer profiles and update purchase history to provide personalized experiences.

These will serve as benchmarks for success.

4. Focus on Key Performance Indicators (KPIs)

Determine KPIs to track progress and measure success. Usually, the most important KPIs are:

• Uptime/Availability: Measures the percentage of time the integrated systems are operational and accessible.
• Error Rate: Tracks the frequency of integration failures (e.g., API call errors, message delivery failures).
• Processing Time: Measures how long integration workflows take to complete.
• Scalability Metrics: Measures the system’s ability to handle increased load (e.g., number of API calls or transactions per second) without degradation.
• Satisfaction Score: Surveys or ratings from end-users or stakeholders about the integration's usability and reliability.
• Support Ticket Volume: Tracks the number of user-reported issues related to the integration.

5. Select the Right Integration Method

With ERP e-commerce integration there are several integration methods to choose from.

Integration Platforms

Software or frameworks designed for connecting disparate systems, whether on-premise or cloud-based, are known as integration platforms. These platforms enable different applications, databases, and services to communicate and work together. They facilitate data flow and automation.
Proprietary integration platforms are developed and maintained by companies that charge fees for their use. Such platforms usually offer advanced features, support, and scalability. The well-known proprietary integration platforms include MuleSoft and Microsoft Power Automate.
Open-source integration platforms, on the other hand, are available for free and come with open code that can be modified to meet specific needs. This allows developers to customize and adapt the platform to their unique requirements and brings more flexibility and transparency. AtroCore is a noteworthy example of an open-source integration platform.
AtroCore is a free and open-source data integration platform that provides seamless integration between ERP systems, e-commerce platforms, and virtually any other system. It primarily uses REST APIs for integration for real-time data exchange. For systems without API capabilities, AtroCore supports integration through database queries or file exchanges. AtroCore provides fully automated, bidirectional data synchronization between ERP and e-commerce platforms, which can run on a pre-configured schedule or be triggered by specific events. Typical use cases include syncing product data, prices, and inventory levels from ERP to e-commerce platforms, while customer data, order information, and delivery statuses can flow back to the ERP system. Being open-source, AtroCore allows for unlimited customization.

iPaaS (Integration Platform as a Service)

Unlike traditional integration platforms that can be both cloud-based and on-premise and require more technical expertise and infrastructure, iPaaS are cloud-native platforms designed for seamless integration with pre-built connectors and low-code tools. These are cloud-based integration platforms that offer moderate to high customization and flexibility combined with low or no-code features. Many iPaaS platforms (e.g., MuleSoft, Dell Boomi, Celigo) provide visual interfaces with drag-and-drop tools and pre-built connectors. These features allow users to set up integrations without writing code. For most scenarios, especially when integrating well-known ERPs and e-commerce platforms, iPaaS platforms are sufficient. However, they are not the perfect choice for highly customized workflows, the scenarios of legacy systems, or tight budgets.

Middleware Solutions

Acts as an intermediary layer that enables complex integrations and data transformations, and offers moderate to high customization (e.g., IBM Integration Bus). Traditional middleware software is enterprise-grade and provides centralized platforms to manage and monitor all integrations at scale. This software might be suitable for complex ERP e-commerce integrations when legacy systems without API are involved. But for more common scenarios where both ERP and e-commerce platforms have API, middleware software is an overkill in terms of both complexity and pricing.

Native Integrations (Platform-Specific)

Native provided by software vendors (Shopify Plus with NetSuite, SAP Commerce Cloud with SAP S/4HANA, Magento with Adobe Experience Manager, Oracle Commerce Cloud with Oracle ERP Cloud, and WooCommerce with Jetpack) are pre-configured solutions designed to connect specific ERP and e-commerce systems. These integrations are typically easy to set up, as they are optimized for compatibility between the vendor's platforms or commonly paired systems. They typically provide basic data synchronization, such as inventory updates, order processing, and customer data exchange, with limited customization options. Native integrations are convenient and cost-effective and would be a good fit for businesses with straightforward integration needs. However, they are usually not enough for businesses requiring more flexibility and having complex workflows, specialized data transformations, or multi-system integrations. In such cases, it’s worth exploring third-party integration tools. The approach you choose for integration will influence how much manual effort is required for further steps like data mapping, testing, training, and optimization.

Custom Integrations

You might be considering building a unique solution tailored to your business needs. It may sound appealing due to the promised flexibility, but this is usually way beyond reasonable expenses and takes too much time to implement and maintain. Most businesses are using some of the popular ERPs like SAP Business One, Microsoft Dynamics 365, NetSuite, or Odoo, and eCommerce platforms like Shopify, Magento, BigCommerce, or WooCommerce. These well-known ERP and eCommerce platforms either have pre-built integrations provided by third-party integration platforms or offer integration tools directly from the ERP or eCommerce vendors themselves.

Solution overview

Best Practices for ERP E-Commerce Integration

1. Define relevant data

Before the integration of e-commerce systems with ERP, define data relevant for system integration for seamless communication between the ERP and eCommerce systems. To do that businesses should conduct a data audit in the ERP and e-commerce systems and identify inconsistencies in naming conventions, data types, formats, etc.

Once data is normalized, map corresponding fields between the ERP and e-commerce systems. For instance, align the "Price" field in the ERP with the "Cost" field in the e-commerce platform, ensuring synchronized data flow. The mapping defines relationships between fields without altering the normalized data.

2. Define data sync flows

After establishing connections between ERP and e-commerce systems, it is important to automate separate data sync flows like orders inventory updates, customers, product master data, product specification, product images, product prices, order status notifications, etc. A significant part of such workflow automation is enabling near-real-time updates between the systems. This way the systems are configured to trigger workflows instantly, ensuring data is updated in real time. These are inevitable and critical steps in any ERP e-commerce integration that ensure seamless, real-time operations, reduce manual intervention and enhance scalability.

3. Prioritize Scalability

Design the integration to handle increased transaction volumes during peak periods (e.g., holidays). Cloud-based ERP or eCommerce platforms are more suitable for easy scaling. They are designed to scale resources (e.g., servers, storage, bandwidth) on demand. This allows them to accommodate spikes in traffic or transactions without affecting performance.

4. Secure Data Exchange

Use encrypted connections like HTTPS (the secure version of web browsing) and SSL/TLS (protocols for secure communication) to protect sensitive data. Encryption makes your data unreadable to anyone trying to intercept it while it’s being transmitted. For example, when customers enter their credit card details on your e-commerce site, encryption ensures only your systems can decode the information. Ensure that the user/credentials used for data synchronization have read and write permissions for all data relevant to synchronization, regardless of role-based access control (RBAC) rules configured in the related systems. In the best case, this user/these credentials should be used only for integration purposes and not by a real person.

5. Test Thoroughly Before Deployment

Perform extensive testing for all integration points, including stress tests for high-traffic scenarios. This means checking how data moves between your e-commerce platform and your ERP system (e.g., orders, inventory updates, pricing changes). In addition, test error-handling mechanisms to make sure that the system can respond to issues (like inventory being out of stock or a payment failure) smoothly, without causing major disruptions.

6. Set Appropriate Timing for Data Sync

Use webhooks or event-driven architectures for instant updates to minimize delays in syncing inventory, order statuses, and customer information. Webhooks (a combination of code and network communication setup) act like notifications that immediately alert the system when something important happens (e.g., a new order is placed, or stock levels change).

Event-driven architecture allows the system to respond to specific events (e.g., when an order is paid, the inventory is updated right away). This setup ensures that updates happen instantly, without waiting for a scheduled sync, which means you get real-time data flow.

7. Maintain detailed logs

Ensure all synchronization processes are logged to enable error analysis and troubleshooting. Detailed logs should capture information about successful syncs, failed updates, and any anomalies. This helps to identify and resolve issues quickly. Logs are essential for maintaining system reliability and improving integration performance over time.

8. Maintain Comprehensive Documentation

Document detail all implemented integration scenarios and troubleshooting steps: Documenting integration scenarios makes it much easier for anyone, whether a new team member or an external consultant, to understand how things are set up. Include links to official API documentation where appropriate. Troubleshooting documentation is useful for both IT teams and non-technical users, helping the latter to handle simpler problems or identify when to escalate an issue to the technical team. For example, when an order fails to sync, this documentation outlines the problem and potential solutions like re-triggering the sync process. Make sure your documentation includes clear explanations for both IT workers and non-technical team members. For example, your customer service team might need to know how to check if an order is synced correctly, while your IT team needs to know how to address errors.

9. Monitor Data Synchronization

Monitor integration for errors and performance issues post-deployment. This means that once the integration is live, regularly check for issues like missing data, failed updates, or slow syncing. For example, if an order isn’t appearing in the ERP, monitoring tools or logs can help identify why (e.g., connection problems or incorrect data formats). It’s also important to set up a notification system for errors, such as email alerts or other methods, to ensure that the administrator responsible for synchronization reacts promptly to issues. Relying on manual checks, where the administrator must log in to monitor for errors, leads to inconsistencies if these checks are not performed regularly.

10. Regularly update your integration

Regularly check if the implemented integration is to be updated in response to updates of APIs of the connected systems. Over time, e-commerce or ERP platforms may release updates that change how their APIs work, therefore it is crucial to keep these components updated.

Key Takeaways

Integrating ERP with e-commerce platforms is vital for businesses handling online sales, complex inventory, and custom pricing. This integration reduces manual errors, automates workflows, and scales operations efficiently. It ensures real-time data synchronization, improves customer experience, and handles peak transaction volumes seamlessly. Businesses can choose from various integration methods, including open-source platforms, cloud-based solutions (iPaaS), and pre-built native tools. Maintaining data security, testing thoroughly, and monitoring the post-deployment system are critical to ensuring long-term success.