Why businesses should consider integrating Magento with their ERP system?

By January 17, 2020 No Comments

Limitless Possibilities.  Endless Integrations.


At the end of 2019, US Consumers will have spent close to $580 billion online, which is expected to reach $668 billion by 2020.

Forrester Research predicted, by 2020, the B2B eCommerce market will reach $6.7 trillion, which is two times larger than B2C with $3.2 trillion. Compared to a 3% average conversion rate in retail sites, B2B eCommerce sites see a 7.3% conversion. B2B eCommerce is evolving and the buyers are moving away from “Pick up the phone to order” and moving more to order online.

Retail ecommerce sales

Why Magento is the right platform for your B2B and B2C business?

B2B businesses are looking for some key features, which will eventually help them choose the right eCommerce platform. Some of the interesting features are:

    • Account onboarding
    • Customer group allocation
    • Customized product blocks
    • ERP integration
    • Payment
    • Shipping
    • Quick order
    • Sample product ordering
    • Multiple pricing
    • Request for quote
    • Negotiated pricing terms
    • My Account page
    • Order tracking without login

So, before choosing the right eCommerce platform, you will need to keep in mind the features that cater to consumers (B2C) and the features that cater to companies (B2B).

Considering this, Magento has always been an excellent choice for B2B businesses. Many Fortune 500 brands such as Ford, Nike, P&G, 3M, and CISCO are all running on Magento.

Unlike other eCommerce platforms, Magento has a global ecosystem of implementation partners, best in class marketplace extensions, with rich and out-of-the-box features that help you create unique and engaging B2B shopping experiences.

magic quadrant for digital commerce

Magento Features

Gartner named Magento Commerce Cloud (Adobe) a Leader in 2019 Magic Quadrant for Digital Commerce. Download the report here.

The Magento Commerce comes with the below features sets:

    • Page Builder
    • Customer Segmentation and Personalization
    • Content Staging and Preview
    • Instant Purchase
    • Dynamic Rule-Based Product Relations
    • Visual Merchandising
    • Elastic Search, and more.

Download the full feature list here.

The Magento Commerce Cloud comes with some interesting features:

    • New ECE-Tools package to manage and deploy stores
    • Seamless production deployment and configuration workflow
    • Increased speed of production deployments
    • Simplified build/deploy process management
    • Performance boost
    • Local development template to ease cloud deployments
    • 100% increase in available memory
    • Enhanced security through fastly web application firewall
    • Page speed improvements (20%+) through fast image optimization
    • Keeping up with PCI compliance

While Magento is the front end of your business, the Enterprise Resource Planning (ERP) system is the foundation (backend) for any business. Now that you’re here, you’ve been wanting to know – Why and How? Read on.

Why do you really need a Magento ERP Integration?

Simple – To save your time and cut down on costs. 🙂

For a business to create greater visibility for the customers is by automating the data workflows between your Magento and ERP system. With minimal human input, your systems can now interact with each other by simply integrating your ERP system with Magento. The eCommerce ERP integration can help you perform certain tasks in one system and the other applications can catch up automatically.

ERP is meant to be flexible in its core. A tailor-made customized ERP solution is what every company wants. When you combine that with one of the best B2B customizable eCommerce platforms, Magento, this makes your work even tougher. You end up having a customized solution for your front-end and back-end but having the burden of not automating the flows. Integrating both systems means building a bridge between your applications by having one hybrid cloud integration platform to manage both the applications in one place.

Integration Touchpoints:

Before you kick start your integration – make sure you understand and have a solid plan based on your business. Let’s say, in B2B the touchpoints can be customer records, pricing, terms, invoices, etc, and is fairly a complicated integration process. Whereas for a B2C the whole integration process is really simple with just sales orders, inventory, tracking number, etc. as the touchpoints.

Benefits of Magento ERP Integration:

  • Better Inventory Management:

Up until now, inventory management has been more of a manual process. By integrating your Magento with the ERP system, this enables you to instantaneously update the ERP whenever a sale is made on your Magento store. This helps your purchase/finance team to keep track of everything and plan everything ahead.

  • Real-Time Data:

Connecting the Magento store and ERP application ensures real-time synchronization between the two systems. By means of activating data communication between the systems in real-time, you basically ensure whatever new data (orders, customers, sales, inventory) that are created or modified in one application is instantaneously reflected in the other one. This implies that different teams don’t have to wait for data to work on, as it will be available on their screens right away.

  • Eliminate Bottlenecks:

Disconnected systems would require human resources to transfer data manually from one system to another – Magento to ERP, in this case. However careful a human is, mistakes are bound to happen. Data may get duplicated, incorrect data may be entered, or some data might be lost in the process. Integrating Magento with the backend ERP application makes sure that there is data consistency. Not only that, the technology will eliminate all bottlenecks that arise with manual data transfer such as speed, accuracy & consistency.

  • Transparent Processes:

When eCommerce and ERP are synchronized, any sales that are happening in Magento will be reflected in ERP or the stock availability of any product in ERP will immediately update in Magento. thereby ensuring all teams have the necessary data that’s required to work with. Moreover, up-to-date information such as the total sales for the day and the number of products sold will make it easier for the finance team to prepare accurate balance sheets, ledgers and revenue documents. This also ensures better transparency.

  • Enhanced Customer Satisfaction:

Customer is the king of any business and a satisfied customer brings in repeat business, or also becomes at a point of time, a product evangelist. A customer is only happy with a seamless eCommerce experience. To be more specific, a customer needs to easily access all product categories, its up-to-date inventory levels, order and shipping information, etc. Integrating the Magento store with the ERP platform ensures real-time synchronization of all the above data points, ensuring the customer is empowered in the purchase process, without having to contact merchant support frequently.

Hybrid Integration Solution for Magento ERP Integration:

With regards to Magento, you might have either Magento Commerce on-premise or Magento Commerce Cloud (part of Adobe Commerce Cloud), on the front-end. With regards to backend ERP systems, you might be hosting on-premise or on the cloud. Most businesses are skeptical about connecting two systems, one on-premise and another on the cloud. This is mainly because they maintain all business-sensitive data on applications on-premise and don’t want to move out of it due to security reasons. But a truly Hybrid integration platform can help to solve all your current integration challenges. A Hybrid Integration platform like CLORAS connects applications in different environments, such as on-premise, cloud, hybrid or embedded. Transferring data between business systems in different environments happens through the Hybrid Integration Platform in a completely secure manner, eliminating the long-time fear of companies to kickstart integration.

To Sum Up: 

Magento is a full-fledged eCommerce platform that caters to all your expanding eCommerce requirements and customizations. But, is that all that’s needed to transform your eCommerce business? I hope you learned from this blog, that cannot happen if you keep your Magento storefront and backend applications, especially ERP, in SILOs. Having taken insights from this blog, I hope you will plan your Integration between your Magento platform & ERP and scale up your online revenue.


Shiva Kumaar

Shiva Kumaar

Shiva is the Strategy Manager leading the strategy and business efforts for DCKAP Digital Products. He is passionate about eCommerce and SaaS products, he loves tech startups. Regardless of the role, his blogs are unbiased. An avid gadget lover and a mobile enthusiast.