As of 2021, there are about 1.9 million active sellers on Amazon that are generating huge revenue on Amazon.
Though out of these 1.9 million sellers, fewer than one in ten Amazon sellers generate significant revenue of about $100,000 per year, and only 1 percent of all the sellers on Amazon have been able to generate revenue as much as $1 million per year.
These figures reveal how tough competition is on the Amazon global marketplace. This makes people wonder how these sellers manage their Amazon seller accounts and generate such skyrocketing revenue.
Well, the answer lies in Enterprise Resource Planning (ERP) software.
Enterprise Resource Planning (ERP) software are business enterprise solutions that help manage and organize your day-to-day business activities, for example, financial management, supply chain management, accounting, and many more.
You can purchase and implement these Amazon ERP software or application solutions to help you streamline your Amazon business.
Using an ERP software solution is vital for an Amazon seller as it helps you manage and automate many business management and processes, for example, it streamlines your reports management, financial management, customer service management, inventory management, and many more.
Regarding business processes and activities, an ERP software solution can automate data entry and generate insightful reports regarding your Amazon sales analytics.
Do You Need Amazon ERP?
Before looking for ERP software solutions for your Amazon seller account, you first have to determine whether or not your Amazon business needs an ERP software solution.
For this, you have to ask yourself some questions and answer them.
Through this checklist, you will be able to know if you need ERP software. It is also important to know which modules of an ERP software solution you will be needing because picking the wrong module can be a huge waste of your money.
- Process Efficiency
Managing your Amazon business requires executing multiple business processes at the same time. Though, if you are losing track of all your business operations and processes, you should consider purchasing an Amazon ERP software solution.
Inefficiency at handling business processes is a common challenge that Amazon sellers face, and only the most successful sellers know how to handle such a situation: by buying an Amazon ERP solution.
With an Amazon ERP software solution, your business processes will be automated and handled seamlessly by the ERP software.
Moreover, Amazon ERP will combine all the operations and processes into a single centralized workspace. Thus, you will not have to worry about organizing your processes as well.
- Struggling to Meet Customer Demands
Managing and keeping your customers satisfied on Amazon is one of the most important tasks if you have an Amazon seller account.
The last thing you will need is to fail at meeting your customer’s expectations. The common problem in this area is difficulty in managing and tracking your product inventory, producing comprehensive reports for your customers, and retrieving financial-related customer information.
If you find yourself relatable in these situations, an Amazon ERP software solution is a must-have for you.
- Your Existing ERP Solution Is Not Working Best for You
You may already be using an ERP solution with your Amazon seller account, but you must be sure that its features meet your business enterprise’s requirements.
If you feel that you are not getting enough out of the ERP module you have purchased and implemented, you should consider either switching to another ERP software solution or changing the module of the existing ERP solution.
Benefits of Amazon ERP
Integrating ERP software solutions with your Amazon seller account has countless benefits. With the amazing features that an ERP software solution will bring, you will be able to generate more revenue on the Amazon global marketplace than before.
- Data Accuracy
Handling your business on Amazon requires handling a lot of data, mostly regarding your products, sales, and customers.
Handling them manually can be very exhausting and can result in human errors. With an Amazon ERP software solution, all the data will be automated and dealt with by the software, preserving data accuracy during the processes.
- Increased Workflow
Manually entering, analyzing, and transferring data into the system can take days, if not weeks, to finish. Integrating an Amazon ERP solution will help you manage and process all your data automatically.
Furthermore, all the analyzed and transferred data will be gathered in one place for you to view.
- Increased Sales
With faster data management, it will be very easy for you to find and grasp leading ideas for your Amazon business. Amazon ERP will allow you to view trends and fluctuations in the marketplace quicker than other sellers.
Therefore, you will be able to seize opportunities when they arrive and increase your conversion rates, resulting in more sales and increased revenue.
What ERP Software Solution Does Amazon Use?
While choosing the best Amazon ERP software solution for your Amazon seller account, it can be beneficial to know which ERP software solution Amazon uses.
This can give you an idea about which ERP software solutions integrate and work best with Amazon seller accounts.
Amazon started using the SAP Software Suite in 2008 after it concluded that it could not meet its long-term goals with the ERP software solution it was using then. It has been using SAP Software Suite for nearly all its business operations.
While it is not known which specific SAP Software Suite modules Amazon use, it is known that some of the modules that Amazon uses are SAP Mobility, SAP HANA, SAP Basis, SAP NetWeaver Administration, and SAP BusinessObjects. Amazon also uses SAP Software Suite for Fulfillment by Amazon (FBA).
There are many ERP software solutions that you can integrate with your Amazon seller account. Amazon itself recommends some ERP software solutions to its Amazon sellers in the marketplace.
These ERP software solutions are the ones that Amazon thinks would work best with Amazon online stores. Ultimately, your decision would depend on the type of services your business requires.