Shopify ERP Integration: How to Streamline Your Operations

ERP is the secret sauce behind the success of most successful ecommerce brands. Also known as Enterprise resource planning, it helps to connect all business processes in one system - supply chain, manufacturing, procurement, sales, and others. 

A Basic Understanding of Shopify ERP Integration 

ERP integration is the process of integrating your Shopify platform with an ERP system so that data can be transferred between them easily. All systems will receive consistent, real-time updates from this linkage, ensuring that critical company data—like inventory counts, order details, customer information, and financial records—is updated consistently.

This integration reduces the amount of manual data entry, reduces the possibility of mistakes, and increases the overall accuracy of corporate operations.

When it comes to achieving this integration, businesses can explore three primary methods, each with its unique advantages:

Custom integrations involve developing a tailored solution for connecting Shopify with an ERP system. This approach requires programmers to align the ERP system’s API with Shopify's, ensuring a precise fit. While this method offers high flexibility, it demands significant technical expertise and time investment.

Vendor-built or native integrations are ready-made solutions designed to connect specific applications with ease. For instance, many Shopify-compatible tools offer direct integrations to streamline processes. These solutions cater to commonly required functionalities, often with no additional subscription fees, making them a cost-effective choice for many businesses.

Integration Platform as a Service (iPaaS) provides a cloud-based alternative for building and deploying integrations. This method allows businesses to establish workflows that link cloud-based applications without the need for managing hardware. iPaaS is especially useful for creating scalable, automated connections between multiple systems.

Also read: How to choose the best Shopify plus agency. 

Top 5 Benefits of Shopify ERP Integration

The integration of Shopify with ERP can completely change how businesses manage their operations, leading to significant increases in productivity and profitability.

Let us go through each of these benefits one by one. 

#1 Better inventory control

The primary benefit that comes with the integration of ERP with your Shopify platform is the correct maintenance of inventory levels. This alignment guarantees that supply is continuously matched with consumer demand thus reducing the possibility of stockouts and excess inventory.

Maintaining an accurate inventory level enables companies to minimize overstocking thus saving up on storage costs. In addition, it also helps them to reduce the possibility of missed sales due to unavailable commodities. 

To put simply, companies can optimize stock levels and boost operational effectiveness by making informed decisions about inventory acquisitions and transfers with real-time data updates.

#2 Smooth order processing

Integrating ERP with Shopify optimizes the order processing workflow since it reduces the need for human input, automates activities, and increases overall productivity.

Purchases made on Shopify immediately sync with the ERP system, eliminating the need for extra data entry and starting the appropriate processes for packaging, shipping, and selecting.

In addition, automation expedites the fulfilment process through quick deliveries. It thus helps to enhance customer satisfaction. Since prompt and dependable service is essential to keeping clients, businesses can reward consumers with increased loyalty and repeat business.

#3 Accuracy in maintaining data

Making wise business decisions depends on accurate data, and you can say that ERP integration is essential to this since it keeps data consistent across platforms.

By aligning data from online and offline channels and removing disparities between systems, automatic synchronisation offers a clear picture of revenue.

In inventory management, real-time updates between warehouses help to avoid stockouts and overstocking. In financial systems, synchronisation between data allows for accurate reporting and analysis. Additionally, CRM systems benefit from centralized client data through personalized marketing and services.  By combining logistical and supplier data, supply chain systems also benefit from streamlined operations.

#4 Enhanced CRM (Customer Relationship Management)

Businesses can improve their CRM efforts by gaining a comprehensive understanding of client interactions and purchase history by integrating Shopify's customer data into an ERP system. 

With a better understanding of consumer behaviour, firms can generate ads that are more tailored and catered to the tastes of certain consumers.

Brands can gain a better understanding of their customers' interests by examining browsing patterns and engagement indicators such as email open rates and time spent on the website. 

To put in simple words, brands can improve their marketing strategies by tracking responses to various offers and tracking purchase history. It offers useful insights into purchasing habits thus helping to improve product recommendations and promotions.

#5 Financial management

By increasing the precision and productivity of accounting duties, integrating Shopify with an ERP system streamlines financial operations.

Errors are minimized since there is less need for human entry when sales and spending data are transferred automatically. Additionally, this connectivity offers real-time financial information that lets companies track income, costs, and profitability carefully. This allows for more efficient financial planning and administration.

Also read: A guide to pricing split testing. 

#6 Opportunities to scale

As businesses expand, managing higher sales volumes and growing operations can become increasingly complex. Integrating ERP with Shopify offers the flexibility needed to handle this growth effectively. 

The system supports business expansion by accommodating increased transactions and new sales channels without compromising efficiency. 

It also streamlines operations by automating key tasks, allowing teams to focus on growth rather than operational challenges. Automation enhances the flow of information across departments, improving communication and reducing delays.

A Step-by-Step Guide to Integrating ERP with Your Shopify Store

In the world of ecommerce, integration plays a vital role in optimizing operations. Essentially, integration allows two systems—such as Shopify and an ERP system—to exchange data effortlessly.

This process is often achieved through APIs (Application Program Interfaces), which act as bridges for data transfer. When people talk about integrations, they often mean prebuilt connectors. On Shopify, these are commonly referred to as “apps.”

A modern and efficient approach to integration is Integration Platform as a Service (iPaaS). This cloud-based method simplifies the process of syncing applications, such as ERP systems with SaaS platforms, without the need for complex coding. 

iPaaS platforms host prebuilt connectors that are partially designed for specific integrations, requiring only minimal adjustments from a developer or integration specialist to ensure compatibility.

Here’s how you can integrate an ERP system with your Shopify operations using an iPaaS:

Generate API Tokens
Start by configuring API tokens for both your ERP system and other connected applications. These tokens enable secure data exchange between platforms.

Define Workflow Interactions
Set up the flow of interactions between your ERP and Shopify. This involves determining how data like inventory, orders, and customer details will transfer and how CRUD (Create, Read, Update, Delete) operations will function.

Establish Connections
Configure the pipelines for communication between the ERP and other systems. These connections ensure data flows seamlessly.

Map and Modify Data
Customize mappings to fit your business processes. For instance, you can assign a “New Customer” label in your ERP to sync with your CRM, automatically triggering a welcome email campaign through your marketing software.

Schedule Synchronizations
Decide how frequently data should be synchronized. For real-time updates, set the systems to exchange information continuously.

Shopify’s iPaaS partners make this process even smoother. These platforms often provide built-in maps and transformation tools to expedite the development of data flows and simplify business rule configurations.

Some leading ERP systems that integrate with Shopify include:

• NetSuite
• Acumatica
• Brightpearl
• Microsoft Dynamics

For example, the NetSuite ERP Shopify app enables data transfer between Shopify and NetSuite. After installation, you can further customize the integration with help from a certified NetSuite partner, ensuring a solution tailored to your business.

Also read: The role of Shopify headless commerce. 

Frequently Asked Questions

Can Shopify integrate with ERP?

Yes, Shopify integrates with ERP systems through its Global ERP Program, connecting platforms like Microsoft Dynamics, Oracle NetSuite, and others. This ensures smooth data flow, real-time updates, and efficient automation for streamlined business operations.

Does Shopify integrate with SAP?

Yes, Shopify can integrate with SAP through third-party apps or custom solutions. This integration enables easy data flow between Shopify and SAP, improving inventory management, order processing, and financial reporting for better business efficiency.

What is a Shopify integration?

A Shopify integration connects your Shopify store with third-party applications or systems, such as ERPs, CRMs, and marketing tools, to streamline operations, automate workflows, and enhance functionality, improving efficiency and overall business performance.

Author

Rutvik Boghara

Rutvik, the head of our Shopify department, is your go-to Shopify aficionado, turning complex ideas into smooth-running, scalable stores. With a passion for writing, he blends storytelling with tech to amp up your ecommerce game. When he’s not optimizing or creating content, he’s probably lost in a tech rabbit hole.