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April 19, 2024

How Accurate Inventory Data & Analytics with an ERP can Boost Sales for a Shopify Businesses ?

Integrating an ERP system into your Shopify platform can revolutionize your e-commerce operations, particularly in terms of inventory management. Accurate inventory data and insightful analytics are the twin engines that drive sales growth and customer satisfaction in today’s competitive market.

The Power of Real-Time Shopify Inventory Visibility with an ERP Solution

Accurate, up-to-date inventory visibility is the foundation of e-commerce success. Without real-time tracking of exact product availability and location, online retailers face profit-draining stockouts, overselling, returns, and fulfillment delays.

Integrating Shopify with Rubust ERP systems like Versa Cloud ERP provides the live inventory transparency modern omnichannel retailers need. This prevents issues and powers data-driven strategies for maximizing sales.

The True Cost of Inaccurate Inventory Data

Lost Sales from Stockouts: Customers reach checkout with items that are out-of-stock. This forces purchase abandonment and damages retailer credibility. Accurate availability prevents this.
Backorders Damage Customer Experience: Allowing overselling leads to painful backorder processes and broken delivery promises. The result? Increased returns, cancellations, and destroyed trust.
Excess Stock Ties Up Capital: With inconsistent data, demand forecasting relies on guesswork. Carrying slow sellers while underestimating top performers means more lost sales. Excess stock also wastes working capital and storage space.
Delayed Order Fulfillment: Staff scramble to source sold products missing from expected locations. Customers receive orders later than quoted, risking chargebacks and reputation loss.
The High Cost of Inventory Inaccuracy: Overall, a 5% inventory inaccuracy rate conservatively costs $100,000 in lost sales annually for a $10 million retailer. For a $50M business, that escalates to $500,000!

Accurate Real-Time Shopify Inventory Tracking with an ERP Solution

Modern ERP solutions like Versa Cloud ERP, built for Shopify eliminate these issues by synchronizing inventory data in real-time:

Livestock-level updates across all sales and fulfillment channels
Complete visibility of available inventory across multiple locations
Intelligent order routing based on item availability
Automated workflows to prevent overselling
Historical data for analytics-driven forecasting

Strategies to Optimize Shopify Inventory for More Sales with an ERP

Ship-From-Store: Reserve inventory and fulfill orders from the nearest store location using real-time visibility. This local shipment means faster delivery and happier customers.
Dynamic Order Routing: Route orders to the optimal warehouse based on product availability across all locations. This prevents overselling limited stock in one warehouse while excess sits in another.
Safety Stock Optimization: Balance the sales risk of stockouts with the capital costs of excess inventory. Analyze historical sales volatility at the SKU level to determine optimal safety stock parameters.
Identify Fast/Slow Movers: Use historical turnover rate reporting to double down on proven top sellers with authentic consumer demand. Markdown stagnant items just taking up shelf space.
Seasonal & Trend Analysis: With unified inventory history in the ERP, unveil sales correlations related to seasonal events, marketing campaigns, and emerging trends. Plan inventory and promotions to align with peak demand.
Automated Dropshipping: Supplier APIs automatically list available products for sale without needing to hold or manage any vendor inventory. Customer orders initiate direct fulfillment from suppliers’ warehouses.

Technical Capabilities to Enable Optimization

These strategies rely on ERP systems with advanced Shopify integration features like:

Granular Tracking: Monitor inventory quantities in real-time down to the SKU, warehouse zone, storage bin, and batch/serial number.
Wireless Mobile Scanning: Leverage mobile devices and wireless barcode scanners to rapidly conduct cycle counts, handle receiving, and manage warehouse workflows.
Multi-Warehouse Visibility: Get unified visibility and reporting across multiple warehouses, retail stores, and third-party logistics providers from a central ERP.
Intelligent Order Routing: Configure rules to automatically route orders to the optimal fulfillment location based on product availability, proximity to customers, cost, etc.
Automated Syncing: Smart connectors instantly update critical inventory data like quantities, availability, orders, and customers between the ERP and Shopify instead of manual exports.
Pre-Built Supplier Integrations: Dropship directly from vendor warehouses by connecting their inventory APIs to automatically list quantities available for sale in Shopify.

Omnichannel Inventory Centralization

A single view of inventory across all channels (online stores, retail stores, warehouses) enables universal visibility and movement of stock to meet customer demand at the optimal location.

Inventory and Order Analytics: Built-in reporting provides insights into inventory performance, turnover, exceptions, and omnichannel order patterns for data-backed planning.
Custom Workflow Support: Tailor workflows like allocation logic, wave planning, pick/pack processes, and inventory reservations to match advanced operational needs.
Endless Extensibility & Customization: Expand capabilities by building custom Shopify apps and ERP extensions, integrating sensor data for environmental monitoring, connecting automated material handlers, and more. The sky’s the limit!

Key Benefits of Tight Shopify-ERP Integration

Prevent Lost Sales: Ensure products show in stock only if available to sell across all locations. Meet authentic consumer demand.
Increase Order Velocity: Fast shop-from-store and intelligent order routing means quicker delivery times to customers.
Improve Forecasting: Synchronized historical data provides analytical insight into sales trends and true product demand.
Greater Efficiency: Inventory optimization means increased turns, less expired/obsolete stock, and lower storage costs, and capital requirements.
Boost Customer Loyalty: Accurate commitments for in-stock goods delivered promptly cultivate customer trust and retention.
Streamlined Omnichannel: Unified inventory, order, and customer data centralizes management while enabling flexibility across all channels.

Leverage Versa Cloud ERP & Shopify True Integration

By consolidating inventory, synchronizing availability, and optimizing fulfillment across the retail supply chain, Versa Cloud ERP helps retailers delight customers, eliminate costs, and maximize profits. We encourage you to schedule a free customized demo tailored to your unique business needs and omnichannel operations. Our retail experts will showcase how Versa Cloud ERP seamlessly integrates with your Shopify store to provide the real-time inventory visibility, analytics, and automation needed to capture every possible sale while accelerating delivery times. Learn first-hand how leading retailers leverage Versa Cloud ERP in conjunction with Shopify to lift sales, expand margins, and future-proof omnichannel success.

Effectively manage your financials, accounting, inventory, production, warehouse management, Shopify Store, and order fulfillment workflows with our award-winning ERP.

Let Versa Cloud Erp’s do the heavy lifting for you.

Empower your business with the knowledge to navigate the realm of an Integrated ERP solution. Gain insights, streamline processes, and propel your accounting management to new heights with this comprehensive guide.