As the world’s largest online retailer, Amazon generated close to $136 billion in 2016 net sales, with third-party seller revenues representing the second-largest revenue segment. This makes integrating SAP Business One (or another ERP system you’re using) with Amazon very important. While in the past this has been a difficult endeavor, new advances have made Amazon integration much easier. In this article, we discuss the most efficient and cost-effective way to achieve successful SAP Business One and Amazon integration.
There are many stories about the difficulties of integrating SAP Business One (or any ERP, really) with Amazon. The reason being that traditionally, Amazon integration involves a rather lengthy process and a hefty bill. Here are just some of the issues that often arise when integrating Amazon and SAP Business One:
Fortunately, advances in integration technology have been made. Let’s take a closer look at the improved ways Amazon integration can be achieved:
With third-party seller-service revenue of $22.99 billion in 2016 and 50% of paid units being sold by third-party sellers, Amazon integration can surely help your ecommerce business thrive. There are over 2 million third-party sellers on the platform, enabling it to offer a vast selection to customers in terms of price, variety, and selection.
Unique to Amazon is its FBA (Fulfillment by Amazon) service, which many sellers are using. The FBA service makes sellers’ products eligible for Amazon Prime and Super Saver Shipping, allows sellers to receive a higher percentage of sales when competing against non-FBA sellers, and Amazon handles the fulfillment side of the order. The seller supplies the item and leverages the lower cost of Amazon’s network for customer service, shipping, and even returns. This is a big draw and is one of the reasons Amazon continues to dominate the marketplace.
But there are considerations to keep in mind, such as the costs associated with Amazon integration. Most ecommerce and marketplace sites will charge fees, including a final value fee, a closing fee, and even a listing fee. Amazon is no exception. These additional costs can eat into your profit margin, so companies should always compare fees up front to determine which platforms offer the best opportunities for them.
In recent news, Amazon began discounting products from some third-party sellers in an effort to compete with low-priced retailers such as Walmart. While Amazon still pays the sellers the full asking price, some sellers are concerned this move devalues their products. These types of issues must be weighed against the sheer popularity of Amazon among buyers when deciding whether integration is right for your business.
If you decide to integrate SAP Business One with Amazon, know that Alluvia is committed to providing you with the resources you need for a successful Amazon integration. Learning about common roadblocks upfront can save you time, money, and aggravation as you move forward with integration.
Smart solutions start with simplicity. Let us show you how quickly you can connect your ERP to ecommerce and marketplace systems using a simple drag-and-drop mapping interface powered by flexible integration architecture. Alluvia is a plug-and-play solution at a cost you can control.