Globally there are over 2.5 million active sellers at Amazon; making huge earnings through Amazon marketplace. Out of the 2.5 million, nearly 30,000 sellers are able to earn as much as $ 1million annually, whereas, another 250,000 sellers are able to earn up to $100,000 or more annually. These numbers while being staggering, are also revealing about the potential of the Amazon marketplace. If we go by these numbers only, it can be safely said that over 300,000 sellers across the world are able to manage a high-volume business with the Amazon marketplace and able to reach out to the target audience globally. Now, these sellers have to ensure consistent operations including keeping up with the operations from accounting to shipping and others, and with high-volume business, all these operations require ERP system from microsoft dynamics partner to be managed effectively.
Folio3 Amazon ERP Integration for SMEs, Businesses, and Enterprises
Folio3 offers SMEs, businesses, and enterprises with reliable, affordable, and completely integrated Amazon ERP integration services. Our expert Amazon ERP integration services are meant to enable Amazon sellers to automate their data entry needs, minimize the overhead costs, Business intelligence and streamline the fulfilment. Our dedicated Dynamics AX Amazon connector enables businesses to identify returning customers, as well as, comply with requirements of Fulfilment by Amazon (FBA) functionality. We also offer Shopify integrated connector.
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Do Sellers Need Amazon ERP System in 2020
Now, do you need an amazon ERP system or not? It’s a complicated question and various factors will influence the answer to this question. However, for the sake of clarity; the ERP systems aren’t just to drive sales. When we are talking about Amazon ERP system, we aren’t just talking about getting higher search result positioning, or high-quality product photography, rather the Amazon ERP system comes with various beneficial and high-utility purposes including:
Stop Losing Sales
“Amazon is the most customer obsessive company”, these words come from none other than the man Jeff Bezos himself, and this is precisely the legacy that has made Amazon what it is today. Before you start selling at the Amazon marketplace, it’s important to remember that the company is extremely (I mean it) strict when it comes to product listing; and that’s understandable. I mean, when you got millions of millions of products you need robust and rigid management for product listing. There may be tens or hundreds of informational requirements for each SKU or ASIN you want to list on the marketplace. And if you are to manage hundreds of products, you are certainly playing in the complex field and any errors would simply lead to the delisting of your product. With the Amazon ERP system, you get access to automated and robust product management functionality that not only help you to increase your product listing efficiency but also avoid errors during listing; thereby helping you to stay relevant and live in front of millions of Amazon Prime and occasional buyers from around the world.
Amazon GO ERP system is a prime example of how the company is concerned about its reputation when it comes to customer servicing. The Amazon GO ERP system is powering one of the first of its kind stores where customers are able to shop without having to deal with cashiers. And just like the Amazon GO ERP system, you would also need a reliable and robust ERP system to not lose credibility or even visibility at the Amazon marketplace.
Know If You Are Actually Making Money
Apart from keeping you from losing sales, the ERP system also helps Amazon sellers to quantify their profitability of the marketplace. It’s important for businesses to have a clear idea of their Gross and Net profit per product. Now, this may seem a task for accounting software; however most of the time the accounting systems lack the critical functionalities and tools to perform these complex calculations.
On the other hand, the advanced profitability determination features offered by ERP systems manage all costs, as well as, connect them to the sales; thereby enabling Amazon sellers to determine the Gross profit/product easily. Apart from Gross Profit, the ERP system can also help you manage other costs like wages, overheads, and others.
Execute Your Plans
Enterprise Resource Planning (ERP) is responsible for the collection of all relevant data of your store from the Amazon marketplace. The data collected by the ERP system can be used by sellers to strategize their sales by determining the right products to market in the future. The ERP system comes with advanced analytics tools that come of great utility to assist sellers in analyzing the market trends and plan a winning strategy for their stores.
Also, the automation tools offered by ERP systems can be used to increase the efficiency of the store operations like issuing purchase orders to vendors, projecting cash requirements, shipping plans, and others to ensure smooth and efficient operations.
What ERP System Does Amazon Use?
Amazon has been using SAP as its ERP system for its business processes. While the detailed SAP modules implemented by Amazon can’t be predicted, some of the modules that have been implemented by Amazon include;
- SAP Basis / NetWeaver Administration
- SAP Business Suite
- SAP BusinessObjects
- SAP HANA
- SAP Mobility
Advantages and Benefits of Amazon ERP System Integration
If implemented correctly, ERP systems can be the most precious asset for any Amazon seller. They not only help sellers manage their stores more efficiently but also enable them to manage high-volume complex operations effectively; while also assisting them to perform advanced analytics to scale their operations consistently.
Below are some of the benefits of integrating Amazon ERP system:
- Efficient management of product listing
- Better Visibility
- Enhanced Reporting and Planning
- Flexible Modularity
- Increased Efficiency
- Better Customer Service
- Integrated Inventory Management
- Compliance with Amazon fulfillment order (FBA)
So, do you need an ERP system for selling on Amazon?
Well, as we said earlier, the final decision will vary depending on various factors. Nonetheless, to keep it simple for you, if you are an Amazon seller with medium to a large range of products, you may need an ERP system to now lose opportunities and keep efficient operations. Also, with a robust Amazon ERP system, you may be eligible to qualify for Amazon’s FBA program and other premium memberships; significantly increasing your chances to get more out of your presence at the Amazon marketplace.
What type of ERP system does amazon use?
Does amazon use SAP for FBA?
Yes. Amazon uses SAP for Fulfilment by Amazon (FBA)