Tag Archive for: fully manged Shopify integration

How to Master Shopify Inventory Management: Expert Insights from EDI2XML

Even before Shopify arrived on the e-commerce scene in 2006, our company EDI2XML already had solid experience in e-commerce integration.

We have helped companies in a variety of industries improve inventory management and operational efficiency.

Since then, our experience includes many successful e-commerce integration projects, and our passion for e-commerce remains unwavering.

Today, we’ll delve into a topic that’s exceptionally relevant for all Shopify store owners: inventory management.

The Essential of All Shopify Stores: Inventory Management

At its core, Shopify Inventory is about managing stock levels, tracking SKUs, and ensuring seamless order fulfillment.

Your inventory is not a static object. It constantly changes with each order or new arrival of goods. In Shopify, you need to get real-time information about inventory levels. Guessing games or manual reconciliations have caused a lot of problems for many businesses who haven’t gotten their inventory management right.

That is why, effective inventory management is crucial for customer satisfaction, sales, and overall business success.

Stock and Inventory Organization ERP vs Shopify Practices

Shopify store owners employ various strategies to organize their inventory efficiently. Let’s explore how ERP (Enterprise Resource Planning) systems like Oracle NetSuite ERP, SAP Business One, Microsoft Dynamics 365, Sage Intacct etc. handle inventory organization and management, drawing parallels with Shopify practices:

Collections and Sub-Collections:

While Shopify uses collections and sub-collections to group related products, ERP systems often organize inventory using categories or product hierarchies.
ERP categories allow businesses to group items based on attributes such as product type, brand, or department.
Sub-collections in Shopify align with ERP subcategories or nested product hierarchies.

Product Management and Variants:

ERP systems provide robust tools for managing product details, including descriptions, images, and pricing.
Similar to Shopify variants, ERP systems handle product variations (e.g., different sizes, colors) within a single product record.
ERP variants allow specifying unique inventory quantities for each variation.

Barcode Scanning:

Both Shopify and ERP systems benefit from barcode scanning.
ERP solutions integrate with handheld scanners, mobile apps, or RFID tags to track inventory movements.
Barcode scanning streamlines stock intake, sales, and restocking processes.

Advanced Features in ERP:

ERP systems go beyond Shopify by offering additional features:
Demand Forecasting: ERP predicts future inventory needs based on historical data and market trends.
Multi-Warehouse Management: ERP handles inventory across multiple locations or warehouses.
Serial and Batch Tracking: ERP tracks individual items using serial numbers or batch codes.
Safety Stock Calculation: ERP sets optimal safety stock levels to prevent stockouts.

Integration with Other Business Processes:

ERP integrates inventory management with broader business functions such as finance, procurement, and manufacturing.
It ensures a holistic view of operations, from raw materials to finished goods.

Customization and Scalability:

ERP systems are highly customizable to fit specific business needs.
As companies grow, ERP scales seamlessly to accommodate increased inventory complexity.

What are Common Inventory Management Challenges for Shopify Owners?

Inventory management is crucial for e-commerce businesses to efficiently track, organize, and control their product stock. Based on our many years of experience working with various companies (both small startups that are just starting their business and large companies that have owned a Shopify store for many years), we’ve identified several key challenges associated with Shopify inventory management.

Manual Inventory Management

Some Shopify owners may rely on manual methods for inventory management, which are prone to errors and inefficiencies, especially as the business scales.

Overselling and Stockouts

Inaccurate inventory tracking or manual errors can lead to overselling (selling more products than available) or stockouts (running out of stock) which can result in frustrated customers and lost sales.

Inventory Synchronization

If you sell across multiple channels (e.g., Shopify, Amazon, e B ay), ensuring accurate inventory synchronization can be challenging. Discrepancies in stock levels across platforms can lead to fulfillment issues and customer dissatisfaction.

Complex Product Variants

Managing inventory for products with numerous variants (e.g., size, color, style) can be complex and time-consuming.

Inventory Storage and Fulfillment

Efficiently managing inventory storage and fulfillment processes, including picking, packing, and shipping orders, requires careful planning and optimization to minimize costs and streamline operations.

Some of these problems can be solved by using Shopify’s built-in features and public applications, but in our experience, using custom third-party integrations greatly improves efficiency and accuracy, especially for growing and ever-changing businesses.

Shopify Inventory Management Options: Built-in Tools vs. Integrating with ERP

When it comes to Shopify inventory management, choosing between built-in tools and integration with your ERP (Enterprise Resource Planning) system is a crucial decision.

The choice depends on your business model, scalability, and existing infrastructure.

New businesses embarking on their e-commerce journey often face the decision of how to manage inventory effectively. Often they start with Shopify’s native tools, but as they evolve, ERP integrations become more appealing.

For companies that already have an ERP system in place, integrating with a Shopify store provides many benefits. Again, here companies with an existing ERP system can choose from two main approaches: use ready-made public app or use the services of a third-party integration provider for custom integration completed just for you.

Let’s explore the Shopify build-in inventory tool, as well as the Integration with ERP via public app and custom integrations with third-party providers.

USEFUL READING: Secrets and rules of Shopify integration with your ERP or CRM

Shopify’s Built-In Inventory Tracking

Shopify’s native inventory tracking system is reliable for most new, small businesses. It provides real-time updates on stock levels, preventing overselling and stockouts.

Advantages:

Ease of Use: It’s straightforward to set up and manage within the Shopify admin.

Cost-Effective: No additional fees for using Shopify’s built-in tracking.

Centralized Solution: Integrated seamlessly with other Shopify features.

Limitations:

Scalability: As your business grows, these tools might become less robust. Moreover, for medium-size and large enterprises or complex multi-channel operations, Shopify’s native system may lack advanced features.

Customization: Limited customization options for specific business needs.

Standard Features: Built-in tools may not cover all advanced inventory management needs.

Customization: Limited flexibility for unique requirements.

Shopify Ready-Made Public Apps vs Custom Integration with Third-Party Integration Provider

Here’s a comparison of using a public app for integration versus opting for custom integration with third-party providers:

Customization and Tailored Solutions:

Public App: Public apps offer standardized solutions with predefined features and functionalities. While they provide convenience and quick setup, they may lack the ability to fully customize the integration to fit specific business needs.

Custom Integration with Third-Party Provider: Custom integrations with third-party providers allow for tailor-made solutions that can be precisely customized to meet the unique requirements of the business.

This level of customization ensures that the integration aligns closely with the business’s workflows, processes, and objectives, potentially leading to more efficient and profitable outcomes.

Scalability and Flexibility:

Public App: Public apps are designed to be scalable and accessible to businesses of all sizes. However, they may have limitations in terms of scalability and flexibility, particularly as the business grows or requires more advanced features.

Custom Integration with Third-Party Provider: Custom integrations offer greater scalability and flexibility, allowing businesses to adapt and evolve the integration as their needs change over time. This scalability ensures that the integration remains effective and efficient, supporting the business’s growth and expansion while maximizing profitability.

Cost-Effectiveness and ROI:

Public App: Public apps generally offer affordable pricing plans, including free options with basic features and premium plans with advanced functionalities. While they provide value for businesses with limited budgets, the return on investment (ROI) may vary depending on the specific needs and requirements of the business.

Custom Integration with Third-Party Provider: Custom integrations may involve higher upfront costs due to development expenses. However, the potential for a higher ROI exists as the integration can be tailored to deliver specific business outcomes, such as increased efficiency, productivity, and profitability. By investing in a custom integration with a third-party provider, businesses can potentially achieve greater long-term value and competitive advantage.

Competitive Advantage and Differentiation:

Public App: Public apps offer standardized solutions that are accessible to all businesses using the same platform. While they provide essential functionalities, they may not offer unique features or capabilities.

Custom Integration with Third-Party Provider: Custom integrations enable businesses to differentiate themselves from competitors by implementing unique features, workflows, and capabilities that are tailored to their specific needs and objectives. This competitive advantage can help businesses stand out in the market, attract more customers, and ultimately drive profitability.

Benefits of Custom ERP integration with Shopify

Custom integrations require technical expertise and development time, but the benefits far outweigh the initial investment. Let’s explore why this integration is crucial:

Streamlined Business Processes:

Custom integrations between ERP and Shopify allow you to tailor the connection to match your specific workflows.
Automate processes such as order management, inventory control, and fulfillment.
Minimize manual data input and enhance workflow efficiency throughout your entire business.

Increased Data Accuracy:

Real-time synchronization ensures that data remains consistent between systems.
Eliminate discrepancies caused by manual transfers.
A better decision can be made with accurate inventory information, pricing, and product information.

Better Inventory Management:

ERP integration provides real /or near real-time inventory counts across your stores and warehouses.
Continually updated inventory levels prevent stockouts and overselling.

Improved Customer Experience:

Real-time access to order status, inventory levels, and delivery information.
Customers receive accurate information promptly.

Enhanced Efficiency and Productivity:

Automation reduces manual tasks, allowing your team to focus on strategic activities.
Increased efficiency translates to higher productivity and cost savings.

Advanced Reporting and Insights:

Combined data from ERP and Shopify enables comprehensive reporting.
Analyze sales trends, inventory velocity, and financial performance.
Make informed decisions based on data-driven insights.

Conclusion: How to Master Shopify Inventory Management

Eventually, the decision between built-in Shopify applications or integrations with ERP depends on your specific business requirements, and long-term goals. For simple inventory management needs and smaller businesses, built-in Shopify applications may suffice.

However, if you want better inventory management, investing in a custom integration may be the better option for long-term scalability and competitiveness.

Collaboration with experienced integration provider like EDI2XML to build a robust connection between your ERP and Shopify.

We at EDI2XML are committed to helping companies improve their e-commerce businesses.

Our experts are ready to help. Book a free consultation to discuss your goals, challenges, and vision for your e-commerce business. Feel free to schedule a convenient time with us through our calendar or reach out via the contact form below. We look forward to helping you succeed in your e-commerce journey!

April 2, 2024/0 Comments

Secrets and rules of Shopify integration with your ERP or CRM

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This post was updated to reflect current trends and information.

As you know, an online store or eCommerce site, always becomes an additional source of revenue for a company, and sometimes even it might become the main source of sales and revenues.

Great design, information blocks and a clear structure are just some of the many good advantages if you decide to create an online store using an e-commerce platform based on Shopify.

Understand what Shopify integration is

First, your Shopify store needs an inventory management strategy. Keeping track of your inventory should be a top priority. This means that you need real-time automation for all your stock, as manual stock inventory can be an overwhelming task.

Thus, the integration of the online store with the company’s internal business system allows you to synchronize the inventory in your Shopify store with the inventory status of your ERP database system, based on pre-defined schedule.

Automatic updates of Shopify variants, inventory quantities and prices will be useful for online stores that have a considerable range of products, especially when inventory status of those products/items is constantly fluctuating…

With Shopify integration, there is no need to monitor and adjust, manually the stock of your products on the eCommerce site or store; you sell only what is available, and all new products are automatically fed to the site.

Thus, your visitors have the most complete and reliable information on a product or service. At the same time, you can significantly reduce the cost of processing the price lists and catalogs of your products.

Why do you need to exchange data?

Automatic integration between a Shopify store and the business management system (ERP, CRM, accounting, etc.) helps to solve several issues:

– Get rid of problems related to human factor.

– Reduce the number of possible errors during data exchange.

– Reduce the workload of employees and focus their activity on sales and customer service.

– Ensure the relevance of the information for both: store visitors and company sellers. Especially relevant for large turnover.

Useful reading: Challenges of selling on Shopify

The main stages of data exchange

The process of implementing data exchange between Shopify and a company’s business software system, consists of three main phases:

1. Project analysis and initiation.

2. Configuration of the data Upload from ERP/CRM to the eCommerce site.

3. Configuration of the data Download from the eCommerce site to ERP/CRM.

The first phase is a step that happens only once during the lifecycle of the integration project. During this phase, our team at EDI2XML will work with the client and identify the business rules, the entities to synchronize between the ERP/CRM and their Shopify Stores, the frequency and other aspects.

This initiation phase is crucial to initiating a continuous automatic process that will have one single mission: run indefinitely and do what it is configured to do.

The automation process will be executing the upload of data from ERP/CRM to Shopify and the download of data from Shopify to the ERP/CRM system, when needed, without any human intervention.

Which information is usually sent from ERP to the online store?

The following is a list of information and data objects that can be extracted from a company’s management system, and uploaded / synchronized to the Shopify store:

Update Variant Inventory/Price
Customer Information, Bill To, Ship To
Update Shopify Customer (Customer Information, Bill To, Ship To)
Update Shopify Orders (Complete, Cancel)
Create Shopify Order Fulfillment
Update/Cancel Shopify Order Fulfillment
Create Shopify Product(s)
Update Shopify Product(s)
Delete Shopify Product(s)
Create Shopify Product Image
Modify Shopify Product Image
Delete Shopify Product Image
Create Shopify Variant(s)
Update Shopify Variant(s)
Delete Shopify Variant(s)

Which information is sent the online store to ERP?

The following is a list of information and data objects that can be extracted from a Shopify store and downloaded / synchronized to the company’s management system:

Shopify Orders (Ship To, Bill to and Order details) Update
Shopify Customers (Customer Information, Bill To, Ship To)
Shopify Orders Fulfillment
Abandoned Checkouts
Inventory Level by Location

Integrate Shopify with Leading ERP Systems

As mentioned above, Shopify integration with your internal system makes it easy to manage your sales, inventory, and reports. We at EDI2XML eliminate the need for manual data entry using the Magic xpi Integration Platform, we automate the most important business processes, ensuring data exchange between Shopify and leading ERP and accounting systems.

Following is a list of the most commonly used ERP systems to integrate to Shopify:

What to consider when organizing the integration of Shopify.

Prior to kicking off a Shopify integration project between your company’s business system and the eCommerce store, it is necessary to define the business flow. Think through all the stages of working with customers, this help determine what information you need to transfer and in which direction.

What points are important to consider for integration:

1. What data should be uploaded to each side;

2. How often will the exchange take place;

3. Prepare your data for Integration based on the appropriate data format (i.e. csv, xml, json ….).

4. For the integration to be efficient and smooth, it’s important that you sanitize and clean your data; Clean all duplicate fields and customers, correct incomplete or contravening data, Product/SKU IDs on your online store, must match the Product/SKU IDs used to represent items in your accounting/ERP system. ..

5. Anticipate possible issues: lack of the right product, the possibility of doubling data and other difficulties.

The technical complexities of your integration project depend on how to decide to integrate with your software business system (i.e. accounting software, ERP or CRM system); Connecting directly with certified connectors to branded systems such as SAP, Oracle, Salesforce, is possible, but will need additional time and effort to build, test and deploy. Still integration using messages of type XML, Json or CSV are the most standard and efficient to date, and do not require any additional fees or efforts.

Shopify Integration Experts

Need an efficient Shopify ERP integration solution that automates orders and inventory between your Shopify store and your ERP system? We can help you! The e-commerce integration with ERP, CRM and EDI is our specialty and one of the strongest offerings. We setup fast and efficient synchronization bridge that works very efficiently to add value to your business.

We specialize in integrating Shopify with ERP, CRM, and other third-party systems and applications. It doesn’t matter if you are a Shopify user or just want to open a new store, or switch to Shopify from another eCom platform, we have experts who can solve all your integration challenges.

Contact our Shopify integration experts today for a free consultation!

The following is a list of additional helpful information:

Must-Have Integration between E-Commerce and Business Systems

9 Major E-Commerce Trends That Will Help Grow Your Online Business

The main reasons why you need Microsoft Dynamics Integration with your Business Systems

Shopify and Microsoft Dynamics Nav Integration: Things you should know

Free Shopify Integration Whitepaper

February 18, 2020/0 Comments

Fully Managed Shopify Integration with EDI2XML