How Shopify Dynamics 365 Integration Benefits Your Business?

Shopify Dynamics 365 Integration

Once you have successfully set up the Shopify store and start to receive orders, you need to implement an ERP solution to streamline the store’s backend operations and keep up with the growing operational intricacies. When it comes to ERP solutions to manage business operations, Dynamics 365 is a forerunner with its robust features, powerful tools, and comprehensive support services, among all other ERP solutions available in the market. The integration enables Shopify storeowners to integrate different business functions to achieve operational efficiency, improve business agility, and enhance ROIs.

Here in this blog, we will exclusively be looking for the benefits of Shopify Dynamics 365 integration and see how the integration can help you achieve higher performance metrics and enhance overall productivity for your eCommerce store.

Why Shopify Store needs ERP Integration?

Shopify is one of the most popular and widely used eCommerce web development that brings interactive interface and inbuilt features to simplify the entire process of developing an eCommerce store. The platform also offers pretty robust features and functionalities for online merchants to improve their business efficiency by automating various processes like accepting orders, inventory management, managing compliance documents, processing returns, managing taxation, processing returns, managing order fulfillment, confirming payment receipts, and much more. 

Business process automation lies at the center to maintain the sustainability and growth of eCommerce stores. Also, by automating the backend processes, online merchants are able to better focus on core business issues and work towards business growth; rather than get carried away in managing the clerical workload. All relevant business functions are synchronized with the ERP integration, ensuring seamless data flow between business functions like sales, marketing, inventory management, and others. This subsequently enables online merchants to stay aware of business performance and take necessary measures to further optimize business operations. To add even more value, ERP integration also enables Shopify storeowners to manage all third-party apps (essential to add functionality to eCommerce stores) under one unified platform. 

What issues can be solved with Shopify Dynamics 365 Integration?

Managing growing operational processes is one of the most persistent challenges faced by Shopify store owners. Shopify’s in-built management features are manual, which are great to handle few daily orders. However, as the business grows and a certain threshold is reached, it becomes challenging for store owners to manage backend operations through manual processes. For instance, inventory management, shipping charges, payment authentication, order tracking, order fulfillment, and other operations may become too complex to be handled through manual processes.

That’s where Dynamics 365 Shopify integration comes to the rescue. The integration enables store owners to automate and streamline all backend processes while keeping up with compliance and taxation regulations. Also, cross-department synchronization ensures seamless data flow between various essential business functions to minimize data errors and improve business processes’ efficiency.

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Benefits of Dynamics 365 Shopify Integration

Now that we understand the need for Dynamics 365 Shopify integration, let’s quickly move on to see some of the benefits businesses can reap from the integration;

– Optimize Inventory Lead Time

Inventory management is undoubtedly one of the most challenging tasks for growing eCommerce stores. It becomes even more challenging for stores with multi-location inventory. However, with dynamics 365 integration, Shopify store owners are able to keep track of inventory stock at all times. The ERP solution tracks the historical inventory consumption rates to make intelligent sales forecasts, which enable store owners to keep up with the strategic buffer stock. The Dynamics 365 ERP solution also allows store owners to optimize lead time calculations, reduce inventory carrying costs, and optimize the warehouse space.

Without the integrated solution, Shopify store owners will either risk inventory shortage even with a good demand or overstock inventory items. Also, the old inventory stock may keep piling up without an integrated ERP solution while the staff keeps shipping the new stock. The platform will also use historical sales data to predict future sales and estimate EOQs (economic order quantity). Also, online merchants will be able to identify low-selling products to be discarded and make space for high demand and more profitable items.

– Order Processing Automation

Dynamics 365 Shopify integration also enables store owners to automate order-processing activities, including displaying essential order information, including stock availability, payment confirmation, shipping charges, invoicing, and estimated delivery time. Automating order-processing activities is a crucial business management function to cope with the radical increase in orders efficiently. Also, the feature enables Shopify storeowners to conveniently upscale or downscale the operations with virtually zero cost.

– Data Synchronization

With Dynamics 365 Shopify integration, online merchants are able to have a centralized data repository that automatically records all sensitive business information from various business functions. This lowers the data entry errors like records duplications while also improving the efficiency of data flow between business functions. The bi-directional data synchronization offered by Dynamics 365 also provides gated access to the data, which enables store owners to maintain data fidelity.

Overall, the data synchronization feature helps Shopify storeowners optimize business processes without compromising data security or operational accuracy. This subsequently results in a massive improvement in overall business efficiency, leading to more business sales and revenue.

– Enhanced Customer Satisfaction

In today’s eCommerce industry, customer experience remains the top concern for all online businesses. With the massive competition, it’s of utmost importance for store owners to offer their customers a more interactive user experience and better rates and infrastructure. For instance, with Dynamics 365 Shopify integration, you can provide customers with better and more affordable shipping options, real-time order tracking, and real-time sync. The ERP solution also enables store owners to offer customers targeted marketing offers, including personalized discounts, bundled deals, and other promotions to reengage and improve conversion rates.

The Dynamics 365 ERP solution also enables businesses to implement automated replacement and refund features. Thus further improving customer satisfaction leads to enhanced brand loyalty, more conversion, and increased revenues for businesses.

Shopify-Dynamics 365 Connector from Folio3

Folio3 is a certified Dynamics 365 implementation partner with hundreds of successful integration jobs. Our pre-built Dynamics 365 Shopify connector helps businesses effortlessly integrate the front-end and back-end operations of the stores with minimum business disruptions. Some of the features of our pre-built connector include;

  • Pre-built automated workflows
  • Advance security features
  • Fast implementation cycle
  • Cloud and on-premise deployment
  • SDK support
  • Third-party app integration support

Summing Up

Microsoft Dynamics 365 is an advanced ERP solution that brings in the complete suite of business automation solutions for eCommerce businesses. The Shopify Dynamics 365 integration opens up endless opportunities for online merchants to streamline the backend store operations necessary to keep up with the business growth. However, to be able to achieve the full benefit of the integration, you need the right dynamics 365 Shopify integration partner with the right expertise and experience to deliver an innovative and custom integration solution. At Folio3, we offer our clients proven integration solutions fully customized to meet and exceed their current and future requirements.


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Wallace Valdez

Wallace Valdez

My name is Wallace Valdez. I am currently working as a "Digital Marketing Manager" for a company that is a certified gold microsoft dynamics partner.

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