If you sell online, in shops or both, an ERP for e-commerce is the system that stops your web shop, marketplaces, warehouse and accounts from drifting apart. This page explains what a retail-ready ERP must do, which of the ERP solutions covered on this site fit which situation, and what to ask an integrator before you sign anything. We are a free matching service: we introduce you to a certified integrator, and the integrator carries out the project.
Why online sellers outgrow their shop platform
Shop platforms are excellent at displaying products and taking payments. They are less good at everything behind the checkout: purchasing, receiving stock, allocating it between channels, costing it, invoicing correctly and reconciling payments. The first symptoms are familiar to most UK merchants.
- Stock is updated by hand, so a bestseller is sold on one channel after it has run out on another.
- Orders from marketplaces are copied into spreadsheets before they reach the warehouse.
- Finance spends days at month end matching payouts, fees and refunds to orders.
- Nobody can say with confidence which products make money once carriage, returns and marketplace fees are deducted.
An ERP addresses these problems by holding one record of products, stock, orders, customers and accounts. For the wider picture, read what an ERP is and, if you are at an earlier stage, ERP for small business.
What an ERP must cover for e-commerce and retail
Every business is different, so we have set out the needs below the way an integrator would test them. For each, you will find what the ERP must do, which products fit and on what conditions, and the questions worth asking.
Online shop synchronisation
What it must do. Push products, prices and stock levels to the shop, and pull orders, customers and payment status back, without anyone re-keying. If you run Shopify, PrestaShop or another platform, the exchange should be automatic, monitored and recoverable when it fails.
Which ERP fits. Odoo has its own e-commerce module and also connects to external shops, which gives flexibility: you can use its built-in shop or keep your existing one. Oracle NetSuite has a long record with online sellers and offers commerce capabilities of its own. Microsoft Dynamics 365 Business Central generally relies on connectors and integration platforms for Shopify and similar shops. Sage and SAP Business One can work with online shops too, but expect more reliance on third-party connectors and integration work.
Conditions. Connectors differ in quality and in which data they carry. Product variants, bundles, multiple price lists and discount codes are where weak connectors fail.
Questions for the integrator.
- Which connector do you propose for my platform, and who supports it?
- How are failed synchronisations flagged and replayed?
- How are variants, bundles and promotional prices mapped?
If you are weighing the open-source route, our guide to open-source ERP sets out the trade-offs.
Marketplaces
What it must do. Receive marketplace orders, send stock and tracking information back, and capture the fees, commissions and payouts so that margin is calculated on the true figures. Each marketplace has its own rules for delivery promises and returns.
Which ERP fits. NetSuite and Odoo are both commonly paired with marketplace connectors. Business Central works well when a specialist connector or integration platform sits between it and the marketplaces. Sage and SAP Business One are viable for sellers with a modest number of marketplace listings, provided the integration is scoped carefully.
Conditions. The marketplace connector is often the most important purchase in the whole project. A cheap ERP with a poor connector costs more than a stronger ERP with a good one.
Questions for the integrator.
- Which marketplaces are covered out of the box, and which need custom work?
- How are marketplace fees and refunds posted to the accounts?
- What happens to stock if a listing is paused or a feed is delayed?
Real-time stock across channels
What it must do. Show available stock per location and per channel, reserve stock when an order is placed, and release it when an order is cancelled. It should handle safety stock, so that you never promise your last items to two customers at once.
Which ERP fits. All five ERP solutions covered here manage multi-location inventory. Differences appear in how quickly stock is pushed to channels, how reservations work and how well the warehouse functions (barcode scanning, picking, putaway) are integrated. Odoo and NetSuite are often praised for their warehouse flexibility; Business Central is solid and familiar to finance teams; SAP Business One suits firms that want a structured, controlled stock process.
Conditions. "Real time" is a promise that needs testing. Ask for a demonstration in which an order on one channel changes the available quantity on another.
Questions for the integrator.
- How often is stock sent to each channel, and can it be triggered by each movement?
- How do you handle stock held in a third-party warehouse or at a fulfilment centre?
- How are stock counts and adjustments reconciled with the accounts?
Order management and fulfilment
What it must do. Turn an order into a pick list, a delivery note, a courier label and an invoice, with rules for split shipments, back orders, pre-orders and personalised goods. It should integrate with the carriers you use and give customers tracking information automatically.
Which ERP fits. Odoo, NetSuite and Business Central all provide solid order-to-cash flows. Sage is well established with UK finance teams and can suit businesses whose complexity sits more in accounting than in fulfilment. SAP Business One is a good match for firms that need rigorous processes and are comfortable with a more structured implementation.
Conditions. The quality of the carrier integration decides how much manual work remains in the dispatch area. Verify that your carriers are supported rather than assuming it.
Questions for the integrator.
- Which carriers are integrated today, and how are labels produced?
- How are split deliveries and partial refunds handled?
- Can the warehouse team work from handheld scanners?
Returns and refunds
What it must do. Link each return to its original order, decide where the goods go (back to stock, to inspection, to supplier or to write-off), and issue the credit note and refund. Fashion, electronics and home goods retailers in particular need a clear picture of return rates by product, because returns erode margin more quietly than any other cost.
Which ERP fits. Most of the ERP solutions can manage returns, but the depth varies. Odoo and NetSuite offer return flows that can be configured without heavy development. Business Central handles returns well within its sales and purchase processes. For Sage and SAP Business One, ask to see the return process end to end with your own scenarios, including marketplace returns.
Conditions. The accounting treatment matters: VAT adjustments, refunds to the original payment method and treatment of restocked goods should all be verified with your accountant.
Questions for the integrator.
- Can I record the reason for each return and report on it?
- How are refunds triggered and reconciled with the payment provider?
- How do you treat items that cannot be resold?
Point of sale and physical stores
What it must do. Give shop staff a till that sells from the same stock as the web, supports gift cards, loyalty schemes and click-and-collect, and carries on trading if the internet connection fails. Takings must flow into the accounts without re-keying.
Which ERP fits. Odoo includes a point-of-sale application that works with the rest of the system. NetSuite offers retail capabilities for businesses with stores. Business Central, Sage and SAP Business One commonly rely on a connected point-of-sale product, so the quality of that link is the thing to examine.
Conditions. If you run only a handful of shops, an integrated till is often simplest. If you run a large estate, you may need a dedicated retail system connected to the ERP, and the integrator should say so plainly.
Questions for the integrator.
- Does the till work offline, and how does it resynchronise?
- How is stock transferred between shops and the warehouse?
- How are returns made in store for goods bought online?
Finance, VAT and reporting
What it must do. Post sales, fees, refunds and payouts to the ledger automatically, apply the correct VAT treatment for domestic and overseas sales, and produce margin reports by product, channel and customer. If you sell abroad, the system must also deal with different tax rules and currencies, with GBP as your reporting currency.
Which ERP fits. Sage and Business Central are familiar to many UK accountants, which eases the handover to your finance team. NetSuite is strong for multi-entity and multi-currency groups. Odoo is flexible but depends on how the accounting localisation is configured. SAP Business One suits businesses that want controlled financial processes.
Conditions. Ask your accountant to take part in the selection. Compliance requirements change, and the ERP must be kept current; our guide to ERP and e-invoicing explains why this belongs on your checklist.
Questions for the integrator.
- How do you handle marketplace payouts that bundle many orders and fees?
- Who updates the tax configuration when rules change?
- Can I see profit by product after all costs?
How the five ERP solutions compare for retail
The table below is a starting point, not a verdict. Fit depends on your channels, your team and your budget, and the integrator can only confirm it after seeing your processes.
| ERP | Typical strength for online and retail | Point to check |
|---|---|---|
| Odoo | Built-in shop, point of sale and warehouse in a single system; flexible | Quality of the accounting set-up and of the add-ons chosen |
| Microsoft Dynamics 365 Business Central | Familiar to finance teams, strong fit with Microsoft tools | Reliance on connectors for shops and marketplaces |
| Sage | Well known to UK accountants, solid financial core | Depth of channel and warehouse integration |
| Oracle NetSuite | Cloud ERP with commerce and multi-entity capabilities | Licensing structure and implementation scope |
| SAP Business One | Structured processes for growing businesses | Connectors for online channels and point of sale |
For head-to-head views, see Odoo vs Business Central and NetSuite vs Business Central.
Cloud or on-premise for a retailer
Most online sellers favour cloud ERP because the shop, marketplaces and couriers are all online and need to be reached around the clock. A hosted system also removes the burden of servers and upgrades. Retailers with stores should still ask how tills behave if the connection drops. Our guide to cloud versus on-premise ERP goes through the decision.
Preparing your project
The best results come from preparation before you speak to an integrator.
- Map your channels. List every place you sell and every system that holds stock or orders today.
- Describe your peak. Seasonal peaks such as the run-up to Christmas and sale events reveal the weak points of any system.
- Write down your rules. Delivery promises, return policies, pricing rules and bundles should be documented before configuration starts.
- Clean your product data. Poor product and stock data is the most common cause of a difficult go-live.
- Decide what success means. Fewer oversells, faster dispatch, faster month end, better margin visibility: pick a few and measure them.
A written brief makes a real difference; use our ERP requirements template. To understand how budgets are built, read about ERP cost, and to avoid the usual traps, ERP project mistakes.
Choosing an integrator who knows retail
The ERP product matters, but the integrator decides whether your shop synchronisation works on launch day. Look for evidence of projects with similar channels, a clear plan for testing peak volumes, and a support arrangement for after go-live. Our guide on choosing an ERP integrator lists the questions to ask, and how the matching works explains what happens after you submit your request.
If your business also distributes to trade customers, our page on wholesale and distribution ERP covers the extra needs of business-to-business selling. Growing firms handling their own fulfilment may also want to read about logistics ERP.
Next step
Tell us about your channels, your stock set-up and your timetable. We will introduce you to a certified integrator suited to your project, free of charge and without obligation. The integrator then runs a discovery session, tests your real order flow and proposes a plan.
Frequently asked questions
What is the best ERP for an e-commerce business in the UK?
There is no single best choice; it depends on your sales channels, product range, warehouse set-up and growth plans. Odoo and Oracle NetSuite are often shortlisted for channel-heavy online sellers, while Microsoft Dynamics 365 Business Central suits firms already in the Microsoft ecosystem. A certified integrator can test your real order flow against each option before you commit.
Can an ERP connect to Shopify or PrestaShop?
Yes, in most cases through a connector, an integration platform or custom work by the integrator. What matters is which data flows each way: orders, stock levels, prices, customers, shipments and refunds. Ask the integrator who maintains the connector, how errors are reported and what happens when the shop platform changes its interface.
Do I need an ERP, or is my shop platform enough?
A shop platform is enough while stock sits in a single place, you sell through one channel and your accountant can work from exports. An ERP becomes worthwhile when stock is shared between channels, when manual re-keying causes overselling or errors, or when you need reliable margin and VAT reporting. The signal is usually time lost to spreadsheets.
How does an ERP handle returns and refunds?
A good ERP links the return to the original order, books the goods back into the right stock location or into quarantine, and triggers the credit note and refund in the accounts. It should also record the reason for the return so you can analyse it by product and supplier. Check how it handles returns from marketplaces, which follow their own rules.
Can the same ERP run my online shop and my physical stores?
It can, provided the point-of-sale function is part of the product or is connected cleanly. Look at whether tills keep working when the connection drops, how stock is shared between stores and the web shop, and how loyalty, gift cards and click-and-collect are managed. Ask the integrator for a demonstration with your own product data.
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