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.
Is SAP Business One and Amazon integration always complicated?
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:
- Months of setup time – Most companies providing Amazon integration services require anywhere from one to two months (and sometimes more) to complete the integration process. This stems from consulting work that is done for each customer to create a custom integration project.
- Expensive upfront costs and recurring fees – Initial setup costs for Amazon integration can quickly add up to thousands of dollars, in addition to annual licensing and transaction fees. For small and medium-sized businesses, these costs can make integration a non-option.
- Contracts – Many integration providers have clients sign a contract. This makes it difficult to end the relationship if the vendor is too costly or not delivering to your satisfaction.
Amazon integration can be simple
Fortunately, advances in integration technology have been made. Let’s take a closer look at the improved ways Amazon integration can be achieved:
- Integration in less than a week – With a tool such as Alluvia’s, you can use an automated mapping wizard and pre-built templates, which allows you to integrate SAP Business One and Amazon in hours and minutes rather than weeks and months.
- Affordable pricing – What good is rapid integration if you cannot afford it? Fortunately, you can integrate with Amazon for just a few hundred dollars.!
- Automatic Updates – Integration requirements can change at any time. With a cloud-based solution, you will get automatic updates to retailer templates.
- Reduced costs – A cloud-based integration tool removes the costs of hardware and IT maintenance that can drain your budget.
- Everything you need for Amazon integration – Be sure your provider is capable of handling all of your Amazon integration needs so your workflow runs smoothly. Integration must cover:
- Amazon MFN/FBM order information
- Amazon MFN/FBM order fulfillment
- Amazon FBA order
- Amazon FBA shipment
- Amazon inventory update
Is Amazon right for you?
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.