Integrating Shopify and ERP: How to manage your shop via the backend

Shopify ERP

Shopify is one of the most successful shop platforms in the German e-commerce sector. According to an analysis by uptain, it is the most widely used shop system amongst small and medium-sized online shops in Germany. On the front end, the platform offers a wide range of features: product management, checkout, payment processing and marketing.

However, Shopify is not an ERP system. The platform only partially covers inventory management, logistics, accounts and customer service. This is precisely where collana diva now an: a cloud-based ERP system based on Microsoft Dynamics 365 Business Central, which connects to your Shopify shop via a web API and brings all business processes together in a single system, from ordering to bookkeeping.

Where Shopify reaches its limits

Shopify is designed as a shop system, an online sales platform. As soon as order volumes increase, typical gaps begin to emerge in the backend:

  • You can manage stock levels manually or via individual apps that do not exchange data with one another.
  • Orders from multiple channels (online shop, marketplaces, high-street shops) are processed in separate systems.
  • The accounts department uses exports and Excel spreadsheets rather than real-time data.
  • Every manual transfer carries the risk of errors: oversales, duplicate entries, incorrect stock levels.

 

An ERP system fills these gaps. It handles the back-end, leaving Shopify to do what it does best: sell.

What the integration with collana diva now actually offers

collana diva now connects your Shopify shop directly to the ERP. All relevant data flows automatically between the shop and the system, with no format issues, no Excel and no need for duplicate data entry.

A centralised, real-time overview of all key performance indicators. Orders, stock levels, customer data and sales figures are all available centrally. You can see at any time what has been sold, what is in stock and how your business is performing.

Seamless communication between the shop and the ERP system. The system automatically synchronises orders, customer data, payments and status changes between Shopify and collana diva now. Changes made in the shop are reflected immediately in logistics, accounts and customer service.

A single, consolidated view of orders across all channels. Collana Diva Now now consolidates sales from the Shopify shop, marketplaces and other channels. You work within a single system, regardless of where the order was placed.

Merchandise management and logistics in a single software package

diva-now shop

collana diva now combines classic ERP functions with e-commerce-specific processes. The system manages the flow of goods entirely digitally:

  • Real-time stock levels across all channels
  • Automatic stock entries for orders and returns
  • Picking lists, dispatch documents and tracking
  • Support for multiple warehouses and sites
  • Minimum stock levels, demand planning and replenishment planning

 

This is particularly beneficial for fashion retailers with high return rates. Read the article to find out how an ERP system caters to the specific needs of the industry ERP for the fashion industry.

Open interfaces for your system landscape

collana diva now integrates seamlessly into your existing system landscape and can be flexibly expanded. Possible integrations include, amongst others:

  • Shopify as a shop front-end (via Web API)
  • Marketplaces
  • Shipping and logistics service providers
  • Payment service providers, for example via Collana Pay (multi-PSP hub)
  • Other third-party systems via interfaces

 

The interfaces operate bidirectionally. You enter the data once, and the processes start automatically.

Reduce costs, increase productivity

An ERP integration has a direct impact on your cost structure in four areas:

Effect

How it is formed

Less manual work

Automated processes save time in day-to-day operations

Fewer mistakes

Consistent data prevents overselling and double bookings

Less IT workload

No need for your own server infrastructure, automatic updates

Greater transparency

All key figures in a single system

Cloud ERP, on-premises or stock management system?

Depending on the organisation’s size, IT infrastructure and growth targets, there are three possible models:

Criterion

Cloud ERP

On-premises ERP

Specialised stock management system

Description of the

Cloud-based solution, no need for your own server, quick integration with Shopify

Runs on your own servers, highly customisable, requires a lot of maintenance

Focus on stock, dispatch and orders; weaker in CRM and accounts

Advantages

No maintenance, automatic updates, scalability

A high degree of customisation, full control over data

Easy to use

Suitable for

Start-ups, SMEs, high-growth companies

Companies with their own IT department

Small shops with standard processes

If you want to scale your business professionally with Shopify, a cloud-based ERP system is usually the best option. It can be integrated quickly, scales alongside your online business and doesn’t require its own IT infrastructure.

Scalability: for retailers looking to grow

Competition in e-commerce is fierce. As well as turnover and conversion rates, efficient processes are key to long-term success. collana diva now is based on a cloud platform and supports you as your business grows:

  • The system can handle more products, more orders and more channels without the need for any modifications.
  • You can add marketplaces, payment providers and logistics systems on a modular basis.
  • All teams work using a standardised database.
  • The Microsoft technology underpinning the system ensures updates and further development.

 

Implementation takes between 8 and 12 weeks, depending on the project: consultation with a live demo, onboarding with data migration, and a supported go-live. Our comparisons with [...], show which other systems are suitable for small and medium-sized enterprises. Xentral, weclapp, Odoo and SAP Business One.

Frequently asked questions about Shopify and ERP

What is Shopify, and what are its limitations?

Shopify is a cloud-based e-commerce platform. It allows you to create and run your own online shop without any programming knowledge, including product management, payment processing, mobile-optimised themes, SEO and marketing features, as well as thousands of apps in the Shopify App Store. However, Shopify is not an ERP system. The platform only partially covers complex backend processes such as inventory management, planning and financial accounting.

Why should I connect Shopify to an ERP?

An ERP system eliminates the need for duplicate data entry between the shop, the warehouse and the accounts department. Orders, stock levels and payments are automatically consolidated within a single system. This reduces errors, saves time in day-to-day operations and makes your processes scalable.

What tasks does collana diva now handle for my Shopify shop?

collana diva now handles the backend: stock management, warehousing and dispatch, returns processing, purchasing and planning, accounts and reporting. The Shopify shop remains the frontend, with the Web API synchronising data in both directions.

At what point does an ERP system such as collana diva now become worthwhile?

An ERP system is worthwhile as soon as manual processes start to hold back your growth. Typical signs include rising order volumes, multiple sales channels, growing stock levels, or an increasing number of errors in stock records and bookkeeping. During the consultation, we’ll work with you to assess whether implementing the system is already cost-effective given your current volume.

Which ERP system powers collana diva now?

collana diva now is based on Microsoft Dynamics 365 Business Central. It provides you with a well-established core ERP system featuring e-commerce extensions, full integration with Microsoft 365 and analytics via Power BI.

Which ERP system does Shopify use?

None. Shopify is an e-commerce platform and does not come with a built-in ERP system. For stock management, logistics and accounts, retailers integrate an external ERP system such as collana diva now.

Is Collana Diva Now also suitable as an accounting solution for Shopify?

Yes, financial accounting is part of the system. Payments, credit notes and receipts from the Shopify shop are automatically fed into the accounts, without the need for manual exports.

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Shopify at the forefront, collana diva now in the backend

Shopify is a powerful front-end shop system. The back-end is now handled by collana diva: no duplicate data entry, real-time stock levels to prevent overselling, automated bookkeeping and structured processes to support further growth.

Would you like to find out more? Book a free live demo and get in touch with us to discuss your Shopify shop.