Blog

ERP Software to Transform eCommerce Businesses

What is ERP Software?

ERP software, also known as Enterprise Resource Planning software, is a powerful software solution that businesses can implement to make their organization more efficient and employees more productive. The primary way that eCommerce ERP solutions helps businesses become more efficient is by collecting data from various sources in the organization and compiling that data into a single, central database.

From there, the centralized data can be analyzed and transformed in useful ways that enable company management to make quicker, more intelligent strategic business decisions.

What is an e-commerce business?

eCommerce, or commerce taking place on the Internet, is becoming the leading method for purchasing goods and services, both by consumers and businesses.

eCommerce takes place in several forms, including:

*Online auctions: where the eCommerce business operates a platform for sellers to list products for sale, and for buyers to find and bid on those products.
*Affiliate marketing: where the eCommerce business generates sales for another company in return for a commission

Compared to traditional retail businesses, where expensive real estate must be leased and built out, eCommerce businesses can often operate with significantly reduced costs.

Businesses avoid the cost of leasing and building out expensive storefront space

Rather, eCommerce businesses are able to fulfill customer orders out of comparatively inexpensive warehouse space.

For example, in affiliate marketing, eCommerce businesses do not even have responsibility for delivery of products to the customer. Rather, the eCommerce business generates the sale, and the logistics of delivery are handled by a third-party company.

Traditional retail businesses have limited geographical reach, restricted by where the business has physical presence.

eCommerce businesses, on the other hand, are restricted only by where their logistics and shipping partners deliver to.

Businesses are able to have a vast geographic market

Businesses are able to sell a larger variety of products

As another benefit of not having to maintain a physical storefront, with limited amount of space to stock inventory: eCommerce businesses are able to sell to customers a larger variety of products than is possible for traditional retailers.

In fact, by incorporating affiliate marketing into their operations, eCommerce businesses are able to sell products that they do not actually stock, but can be delivered by a third-party company.

how does erp software play a role in e-commerce businesses?

Because of the fast rate at which transactions take place in eCommerce businesses, it is important for eCommerce businesses to always be operating at the highest level of efficiency.

eCommerce businesses that understand the crucial need for efficient operations implement and use ERP software. There are several reasons that businesses should incorporate eCommerce ERP solutions .

1. Optimally manage inventory

ERP software enables eCommerce businesses to monitor inventory levels in real time. Real-time monitoring of inventory ensures that there is always enough stock on hand, while ensuring that inventory does not become overstocked and needlessly take up valuable warehouse space.

2. Simplify order tracking

ERP software centralizes all of the data produced by different departments, thus customer orders can more easily be tracked from the moment they are placed, to the moment the order is delivered.

Consequently, eCommerce businesses have higher assurance that customer orders are correctly filled and delivered on time.

3. Automate accounting tasks

As previously mentioned, transactions occur at a far greater rate than they do in non-eCommerce businesses. As such, accounting tasks need to be completed as scheduled to prevent a backlog from building up.

ERP software saves accounting departments time by automating many tasks, such as determining the value of on-hand inventory and creating accurate budgets.

4. Better handle increases in demand

By collectively processing all of the data produced by a business, ERP software can be used to precisely forecast increases in demand. eCommerce businesses can use these forecasts to make sure enough resources, both in terms of labor and inventory, are available to meet increases in customer demand.

How your e-commerce business can benefit from erp software

The best way to get started with ERP software is to work with trained professionals experienced at developing ERP solutions for eCommerce businesses.

If your eCommerce business is ready to implement ERP software, DSD Business Systems is ready to guide you through the process.

DSD Business Systems was founded in 1984 in San Diego, California, and has since then opened locations across the country to help clients with their ERP needs. The DSD Business Systems team, composed entirely of ERP industry professionals, takes great pride in developing the best ERP solutions possible. Once a proper ERP solution has been developed, DSD makes sure the client knows how to extract the most value out of the solution.

To learn more about ERP software and how it can be used to grow your eCommerce business, speak with a DSD Business Systems professional today.

Category:
DSD Business Systems
Tag:
Post