Shopify ERP Explained: What It Is & Best ERP Systems to Use

Managing a Shopify store gets harder as your business grows. More orders, more products, more tools to keep track of. Some merchants decide to use a Shopify ERP system to run everything smoothly.

In this guide, you will learn about how Shopify ERP integration works, which systems are most popular, and how to choose one that fits your store well. So, if you are trying to find a way to save time, reduce errors, and stay on top of your operations, begin here!

Before we dive in, if you’re new and looking for a budget-friendly entry into eCommerce, consider starting with our full guide on how to launch a Shopify store.

1. Shopify ERP overview: Is Shopify an ERP?

Let’s begin with the basics. You will understand what Shopify ERP means and the different types available for your store.

1.1. What is Shopify ERP?

Shopify ERP means connecting your Shopify store to an enterprise resource planning system. It allows you to centralize essential functions like inventory, order tracking, customer records, and accounting.

Once the systems are connected, you can have direct access to real-time data, making it easier to grow and scale your Shopify business.

1.2. Types of ERP

There are three types of ERP systems to choose from, each with different strengths depending on your Shopify setup:

1.2.1. On-premise ERP

On-premise ERP is installed and runs directly on the internal company server, giving you full control over system setup, data storage, and custom workflows.

However, an IT team will be needed to update, support, and maintain the system. Installation takes a while to be done, and the scaling usually requires a lot of valuable resources.

If you have complex data control requirements from your Shopify store, then this setup will be just right for you. You can tweak it deeply, as cloud solutions will not be able to offer it.

1.2.2. Cloud ERP Integration

Cloud ERP is hosted online and through web browsers. It is all maintenance-free, including updates, security patches, and infrastructure, entirely by the ERP provider.

This setup is lightweight and extremely scalable. You can connect to Shopify through APIs or built-in integrations and keep the data aligned in real time.

For most growing Shopify stores, this is the preferred option. It’s flexible, easy to launch, and doesn’t come with the high upfront costs of traditional ERPs.

1.2.3. Two-tier ERP

A corporation applying a two-tier ERP approach builds a separate system for corporate and local needs. The outstanding support comes from a centralized ERP for core functions, sending lightweight tools to individual Shopify stores.

Typically, a strong ERP system handles core corporate functions across the business. Meanwhile, lightweight tools help local Shopify stores stay fast and flexible. Data flows between these two layers to keep everything aligned without slowing down local operations.

Thanks to this structure, businesses gain both global control and local flexibility, plus better conversion rates through seamless data synchronization.

‼️Attention: Don’t miss the Shopify 1 dollar 3 months offer. It’s fast, simple, and low-cost!

2. How Shopify ERP integration works

If you’re wondering how the connection works, this part will explain how your Shopify store and ERP system share data using APIs and syncing methods.

2.1. Understanding the ERP – Shopify integration process

When you’re integrating an ERP with Shopify, you’re linking the back end of your business to the selling front. Sales inventories, financials, and customers are all synchronized in this kind of integration.

This requires an ERP that fits your business, with a connector or API to control how data moves between systems.

2.2. APIs and data sync (orders, inventory, customer info, etc.)

APIs are the key tools that connect your Shopify store to your ERP system. They provide commands for passing vital information, such as order handling or customer requests, especially in online shopping environments. 

This is an actual way to keep your store always updated without wasting time with errors. Instead, it can keep consistency in every sales channel with healthy and up-to-date information.

2.3. One-way vs two-way integration

A one-way integration is where data travels in one direction only, usually from Shopify to your ERP. This is a very straightforward setup and will suffice if you only need to send orders for processing.

Two-way integration means your ERP and Shopify can send information to each other. Your ERP must be updated with product availability, while on Shopify, you can push back all new orders. Everything stays in sync without the hassle of additional manual steps.

2.4. Real-time vs. batch syncing

Real-time syncing gets immediate updates sent instantly. For example, if an order is placed or inventory changes, it becomes reflected in real-time on your ERP system and your Shopify store.

However, the batch is completely different. It groups updates and sends them at specific time intervals, such as every hour. That saves server load but sometimes causes minor delays for fast-paced setting stores.

3. Top ERP systems for seamless Shopify integration

If you’re not sure which ERP is the right fit for you, we’ll help cut down to the best ERP to integrate with Shopify:

3.1. Shopify’s ERP

Shopify teamed up with several ERP vendors to make the integration easier for merchants. These include:

• Microsoft Dynamics 365 Business Central: A complete automation and streamlining business management solution.
• Oracle NetSuite: A complete business management suite having ERP/Financials, CRM, and eCommerce.
• Infor: Industry-specific ERP solutions for various sectors.
• Acumatica: Cloud ERP solutions for small and mid-size businesses.
• Brightpearl: Retail-centric ERP offering focused on inventory and order management.

These ERP systems allow merchants to manage inventory, orders, and customer data more efficiently. As a result, they can reduce manual work and keep their Shopify store synced in real time.

3.2. Oracle NetSuite ERP

Oracle NetSuite is a cloud-based ERP platform designed to manage core business functions in one unified system. It’s widely used by growing and enterprise-level companies for its scalability and wide feature set.

3.2.1. Pricing

NetSuite pricing is not available for public access. Here, we provide data collected from some genuine ERP consulting and evaluation sites:

3.2.2. Features

• Financial management: Provide accounting capabilities with invoicing and financial reporting.
• Inventory management: Track inventory levels in real time with automation.
• Order management: Allow smooth order processing from placement to fulfillment.
• eCommerce integration: Simple integration with online sales channels like Shopify.

3.2.3. Pros & Cons

3.2.4. Suitable for / not suitable for

This solution is well-suited for medium to large companies that need an all-in-one ERP system with strong scalability. It’s also ideal for companies requiring robust financial and inventory management capabilities.

On the other hand, it may not be suitable for smaller businesses with limited budgets or simpler operational needs that don’t require a full-scale ERP platform.

3.3. Microsoft Dynamics 365 ERP

Built on the Microsoft ecosystem, Dynamics 365 combines ERP and CRM in a single platform. It’s a strong match for companies that value deep integration with tools like Office 365, Power BI, and Teams.

3.3.1. Pricing

3.3.2. Features

• Sales and customer services: Enable customer engagement and sales processes.
• Finance and operations: Integrate financial management and operational insight.
• Supply chain management: Optimize inventory and logistics.
• AI and analytics: Support data-driven decision-making.

3.3.3. Pros & Cons

3.3.4. Suitable for / not suitable for

Microsoft Dynamics 365 is suitable for businesses already using Microsoft products and looking for seamless integration across their ecosystem. It also works well for organizations that need a flexible and customizable ERP to support specific business processes.

However, it may not be the best fit for small businesses that find the platform too complex or costly to implement and maintain effectively.

3.4. Odoo ERP

Odoo stands out as an open-source ERP with a modular approach. Businesses can start small and expand as needed, choosing from a wide library of apps to match their workflow without overcommitting upfront.

3.4.1. Pricing

3.4.2. Features

• Sales management: Manage quotations, orders, and customer contracts.
• Inventory management: Track real-time and automate stock replenishment.
• Accounting: Integrated financial management with invoicing and reporting.
• Marketing automation: Design and implement marketing campaigns.

3.4.3. Pros & Cons

3.4.4. Suitable for / not suitable for

Odoo is suitable for businesses that want a customizable and modular ERP without high upfront costs. It’s a great fit for companies that prefer open-source flexibility and have the technical resources to manage it.

However, it may not be suitable for teams that need a system with built-in features and ready-to-use support, unless they’re willing to invest in paid plans or have in-house experts.

💡If you’re looking for a shortcut, you can also explore a pre-built Shopify dropshipping store to get started faster with minimal setup.

4. How to choose the right ERP system for your Shopify store

Picking out the right ERP highly depends on your store’s size, needs, and goals. In this section, you’ll be helped on what to look for before making that stern decision.

4.1. Consider your store size and complexity

While smaller stores may merely need basic inventory and order tracking, bigger ones require full-scale automation and visibility across multiple channels. Don’t pay for features you aren’t going to use.

If your operations involve multiple warehouses, currencies, or sales channels, make sure to choose an ERP that can handle that level of complexity. Your system should support your growth now and continue to scale as your business expands.

4.2. Industry-specific needs

Some ERPs are made specifically for niches, such as manufacturing, retail, and wholesale. These usually come with workflows tailored to your industry.

For example, apparel merchants need strong inventory matrix attributes built into the ERP. Thus, picking a solution that speaks to your industry can save months of setup.

4.3. Budget and pricing model

ERP prices vary from free, open-source tools to enterprise solutions. That’s why you should set a clear monthly or yearly budget before comparing options.

Besides, you should pay attention to pricing scales; some platforms charge by user, module, or data usage. Avoid surprises as your team or traffic grows.

4.4. Integration capabilities with Shopify

You should find out whether the ERP integrates natively with Shopify or relies on third-party middleware. Native integrations generally imply quick implementation and fewer bugs.

Also, note the nature of the data integration, which is either real-time, batch, or customized. The fewer roadblocks to data integration, the better.

4.5. Vendor support and scalability

A dependable ERP vendor puts more than application capabilities: they provide you with support, updates, and help during onboarding. Make sure they are available when you need them the most.

Alongside support, scalability matters too. As your Shopify store expands, your ERP should have the capacity to handle increasing amounts of SKUs, user accounts, and order volume.

4.6. Trial or demo availability

The demo or free trial allows you to validate how the ERP corresponds with your store’s workflows, from the UX to data flows and customization options.

If they don’t offer a trial, it’s in your best interest to inquire why. You should also be able to try before you buy; this is more than warranted. After all, the system will touch all aspects of your business.

💡If you need help setting up your Shopify store before choosing an ERP, our Shopify store setup service can handle everything from day one.

5. Conclusion

Choosing the right ERP system for your Shopify store can completely transform how you manage operations, from inventory and finance to fulfillment and customer data. Whether you’re scaling up or just looking to streamline your workflow, integrating a suitable ERP makes a huge difference

The best way to know if Shopify integration with ERP fits your store is to review how you currently handle inventory, orders, and customer data. When manual work or disconnected tools slow you down, it’s likely time to consider a more integrated solution.

When you’re ready to take your store to the next level, eComStart has everything you need to get started strong!

6. FAQs