Expert verified Choosing the best ERP for eCommerce business can feel overwhelming with so many options promising the world.
Here’s how you know which one actually delivers as we guide you through the must have features. We also break down the top ecommerce ERP software that make your business smoother.
Why Do Ecommerce Businesses Need an ERP?
Streamlining Operations and Reducing Costs
Automates key operations (order processing, inventory, accounting, customer service), cutting errors, saving time, and lowering costs crucial for India’s price-sensitive market.
Centralized Data and Real-Time Insights
Centralizes data from all sales channels, providing real-time sync for accurate, unified views. This enables faster, informed decisions and prevents stock issues.
Enhanced Customer Experience
ERP integration enables faster order processing, accurate tracking, and personalized service using centralized customer data, boosting satisfaction and loyalty vital in a competitive ecommerce space.
Scalability and Omnichannel Capabilities
ERP systems are scalable and support omnichannel strategies, ensuring consistent product availability, pricing, and customer experience across all touchpoints. Features like “buy online, pick up in-store” (BOPIS) are enabled through seamless ERP integration.
Compliance and Financial Management
They automate compliance (GST, e-invoicing), streamline accounting, and provide audit trails, reducing risks and ensuring smooth operations.
Must-Have ERP Features for Ecommerce Businesses
Order & Inventory Management
- Multi-channel order sync (Amazon, Flipkart, Meesho, Shopify, WooCommerce, etc.)
- Real-time stock updates to prevent overselling
- Automated purchase orders for restocking
- Warehouse & fulfillment center management
GST & Tax Compliance
- Automated GST calculations (CGST, SGST, IGST)
- GST invoice generation with HSN/SAC codes
- E-way bill generation for logistics
- Tax filing & reporting for seamless compliance
Multi-Location & Warehouse Management
- Centralized inventory tracking across warehouses
- Location-based stock transfers
- Barcode/QR scanning for efficient picking & packing
Payment Gateway & Reconciliation
- Integration with Razorpay, Paytm, PhonePe, UPI, etc.
- Automatic payment reconciliation (matching orders with payments)
- COD (Cash on Delivery) management with fraud detection
Shipping & Logistics Automation
- Courier integrations (Delhivery, Shiprocket, Ecom Express, etc.)
- Automated shipping label generation
- Tracking sync & notifications for customers
Customer & Vendor Management
- Customer database with purchase history
- Vendor & supplier management (purchase orders, payments)
- Loyalty & referral program tracking
Analytics & Reporting
- Sales performance dashboards
- Profit & loss reports (including marketplace fees)
- Inventory turnover & demand forecasting
Returns & Refunds Processing
- Automated return requests & RTO (Return to Origin) handling
- Refund processing linked to payment gateways
Mobile & Cloud Accessibility
- Mobile app for order & inventory management
- Cloud-based ERP for remote access
Top 5 ERP Solutions for Ecommerce Businesses in India
ERPNext
ERPNext is a free, open-source ERP made by Indian developers and popular among startups, SMEs, and developers.
✅ MAIN FEATURES:
- Inventory and warehouse management (batch tracking, barcoding)
- Multi-currency, GST, and tax compliance
- CRM, sales, accounting, and payroll modules
- Integrates with Shopify, WooCommerce, and Amazon via APIs
- Customizable dashboards and workflows
- Self-hosted or cloud-hosted options
❌ LIMITATIONS:
- Needs technical knowledge to install and customize
- Limited third-party integrations compared to paid ERPs
- Support depends on community/paid plans
Best Suited For: Startups & mid-sized e-commerce sellers needing a low-cost, customizable ERP and businesses with in-house tech teams (for self-hosting).
Zoho ERP
An affordable, easy to set up, cloud-based, modular ERP solution with an all-in-one business suite.
✅ MAIN FEATURES:
- Multi-marketplace sync (Flipkart, Amazon, Meesho, Shopify)
- Real-time order and stock sync
- Built-in GST invoicing and Indian tax reporting
- Integrated CRM, Finance, HR, and marketing apps
- Easy-to-use dashboards and mobile app
- Shipping automation (Shiprocket, Delhivery, FedEx)
❌ LIMITATIONS:
- Advanced features require higher-tier plans
- Not ideal for large enterprises
- Custom workflows require some learning
Best Suited For: Small to mid-sized e-commerce sellers who want ease of use. Also good for D2C brands & marketplace sellers needing shipping and tax automation.
SAP B1
A lightweight ERP from SAP, tailored for small and mid-sized businesses offering deep inventory control and compliance.
✅ MAIN FEATURES:
- Robust inventory and warehouse modules
- Real-time accounting, purchasing, and sales tracking
- GST, e-invoicing, and e-way bill compliance
- Integration with Shopify, Magento, and custom stores
- Can be cloud-hosted or on-premise
- End-to-end order-to-cash process
- Customizable dashboards & reports
❌ LIMITATIONS:
- Costly setup and licensing
- Steep learning curve
- Best used with ERP experts
Best Suited For: Omnichannel retailers with complex supply chains and scaling businesses.
TallyPrime
One of India’s most popular accounting and ERP software tools, used by over 2 million businesses. While originally accounting-focused, it now has basic inventory and eCommerce modules.
✅ MAIN FEATURES:
- GST-compliant billing and invoicing
- Inventory management with batch and expiry tracking
- E-way bill generation and barcode support
- Tally connectors available for Shopify, WooCommerce, etc.
- Offline and online access options
- Seamless GST compliance (GSTR-1, 3B, e-invoicing)
❌ LIMITATIONS:
- Limited built-in eCommerce integration
- Limited cloud/mobile access
- Mostly desktop-based
- Weak CRM & marketing tools
Best Suited For: Traditional e-commerce sellers prioritizing accounting & GST and single-brand stores with simple inventory needs.
Oracle NetSuite
A global, cloud-based ERP solution offering comprehensive functionalities tailored to businesses of all sizes.
✅ MAIN FEATURES:
- Enterprise-level inventory, order, and warehouse management
- Full accounting, CRM, and supply chain automation
- Multi-location, multi-currency, multi-language support
- Powerful real-time dashboards and forecasting tools
- Advanced integrations for Magento, Shopify, Amazon, and more
- AI-powered demand forecasting
- GST & global tax compliance
❌ LIMITATIONS:
- Very expensive
- Long implementation time
- Requires IT or partner support to manage
Best Suited For: High-growth e-commerce brands and enterprises needing advanced automation & scalability.
Other Notable ERP Solutions for E-commerce:
- Odoo ERP: Open-source and modular, ideal for businesses that need customizable workflows. Offers e-commerce integrations but requires tech expertise for advanced setups.
- Microsoft Dynamics 365: A scalable cloud ERP with AI-driven insights, best for mid-large enterprises. Seamless integration with Azure, but costly for SMEs.
- Marg ERP: Popular among Indian SMEs for GST compliance and inventory management. Lacks advanced automation compared to global ERPs.
- Deskera ERP: All-in-one cloud ERP with strong accounting and inventory features. Affordable for startups but limited third-party integrations.
- Sage X3: Suitable for larger e-commerce businesses with complex operations, offering strong capabilities in supply chain management and global operations.
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Frequently Asked Questions
1. What is the best ERP for small eCommerce businesses in India?
The best option can vary with your needs. However, Zoho ERP and TallyPrime are considered the top choices for small eCommerce businesses.
2. Is ERP necessary for an online store in India?
Yes. An ERP system automates your inventory, billing, orders, taxes, and customer data. Without it, managing multiple platforms like Amazon, Flipkart, and Shopify manually becomes complex as your sales grow.\
3. Which ERP software is free or affordable for Indian sellers?
ERPNext is free and open-source, great if you have tech support. Other budget friendly options are Vyapar and Marg ERP that are built for Indian small businesses.
4. How much does ERP software cost in India?
It depends on a number of factors including business size, volume of transactions, inventory, etc. While there are free options like ERPNext, paid ones range from INR 599/year (Vyapar) to INR 50,000/month or more (Oracle NetSuite).
5. Can I integrate ERP with my Shopify or WooCommerce store?
Yes. ERPs like Zoho, Odoo, SAP B1, and Deskera integrate easily with Shopify, WooCommerce, and Magento. Some use built-in connectors, others require API or third-party apps.
