Dropshipping is one of the easiest and most profitable businesses in the online world. However, at the core of every successful dropshipping business is a competent Enterprise Resource Planning or ERP system. 

In this article, the aim is to tell you just how and why having a good ERP system like JDE Software is the best thing that could happen for your business.

Dropshipping: A Recap

First things first, if you’ve been reading my articles for some time already, you probably know what dropshipping is. But for the sake of first-time visitors, dropshipping is a simple business model that enables online entrepreneurs to be the bridge between a product and a business owner, without having to handle the items themselves. In other words, it pretty much removes the risk of over or undersupply because the product never becomes your inventory. Instead, once an order is placed, a dropshipper simply sends a message to the supplier who will be the one to ship the products off.

When it comes to eCommerce businesses, you’ll have a plethora of products that you’ll need to keep track of. If not from the moment you start, then definitely when you start to grow your online store.  For businesses managing logistics, utilizing digital freight forwarding software can further streamline the process of handling shipments and tracking goods across the supply chain.

In this setup, it’s easy to think that most of the work is marketing the product. Well, to be honest, it is. But one important factor is being able to efficiently delegate orders and connect with customers. And that’s why a successful dropshipping business doesn’t just rely on effective marketing but also a good ERP system.

ERP System: The Basics

So how can ERP software help your dropshipping business? To understand this, you might want to know a little bit more about the system. Enterprise Resource Planning Systems basically combines all pertinent business processes from order management, human resources, customer relations, and many more.

With such an amazing integration of tools, here are just some of the benefits you’d get out of investing in an ERP system for your dropshipping business:

• Cuts overhead costs by using just one main business process software instead of multiple tools.

Admit it, various business software is pretty pricey. And if you need to use separate tools to operate your dropshipping business, then you’re losing money! 

ERP systems eliminate the need to use different software for accounting, CRM, and sales so that you can stay on top of your game without incurring too many overhead costs.

• Allows a unified database to be viewed by different members of the team.

This integration between all important business processes is the sweet spot of any ERP system. Not only will it allow you to save money by purchasing only one tool, but it also helps you have just one database that can be referenced by every member of your team.

I am pretty aware that you might not need this yet, but it’s a good thing to keep in mind when you’re planning to expand your horizons in the future.

• Automates orders and prevents shipping delays or disasters.

With an ERP system, you will have peace of mind regarding your customers’ orders. The automatic process from order to shipment will definitely come in handy, especially on hectic days like the holidays or during your promo periods.

This access to a solid database will also grant you the best chances of working from home smoothly. No need for regular meetings with your team and going out of your way to talk to a supplier for every single transaction. And with this pandemic forcing businesses to shift towards more digital processes, the ERP system also helps you become future-proof.

• Keeps your customers satisfied.

The no-fuss way an ERP system works for you will definitely translate to better customer feedback, which of course will benefit your entire operation. In fact, investing in an ERP system is one way to invest in your customers, which in turn, leads to sustainable success.

Plus, the fact that your processes are all in one software, in the event of an unlikely hitch, it’s pretty easy to find out what’s going on. For example, if your customer contacts you for a possible lost shipment, you can calmly tell him that the shipment is indeed on its way on a specific date.

No matter how competent your ERP system is, the success of your dropshipping business will still depend on the quality of items you are going to sell and how you communicate this to your potential and returning customers.