The evolving modern e-commerce businesses have changed the way businesses are operated. Robust technologies digitally transform the landscape, enabling e-commerce businesses to expand beyond geographical barriers and time zones. However, with great possibilities come serious scaling challenges that require a careful and strategic approach to ensure a flourishing business.
This blog will explore e-commerce scaling challenges and how an ERP (Enterprise Resource Planning) can help you handle them. Before we dive into these challenges, we’ll briefly understand the e-commerce landscape and the role of ERP.
Table of Contents
Understanding E-commerce Landscape
E-commerce, or electronic commerce, is buying or selling products and services on an electronic platform that operates on the Internet. The global e-commerce market size is expected to reach USD 83.26 trillion by 2030. The technological developments and increasing customer demand for convenience are the major reasons for achieving this exponential number.
The online platforms may include:
- Online retail
- Digital marketplaces
- E-payments
- Supporting logistics
What is an ERP system?
An ERP (Enterprise Resource Planning) system is an integrated software solution that provides multiple business applications or modules, including inventory, procurement, order management, sales, marketing, warehouse management, finance, supply chain management, and CRM. The system automates and streamlines all core business processes across multiple functional departments.
The system stores data from these modules within a central database. Integrating data into a single database ensures real-time, accurate information. This eliminates data silos, data entry, and inconsistencies between systems. Any process initiated automatically updates the data across the related module.
A confirmed sales order automatically updates your inventory, finances, and customer purchase details. This real-time data updation streamlines workflows, fosters uniform business rules, improves cross-functional coordination, and enhances operational transparency.
Top 7 E-commerce Scaling Challenges in 2026
Global e-commerce sales are expected to reach $6.88 trillion by 2026. With rising global e-commerce sales, tackling scaling challenges in 2026 is crucial.The top 7 e-commerce scaling challenges and their solutions are
1. Inventory mismanagement
Challenge
Without real-time visibility, e-commerce businesses often rely on manual stock counting or delayed updates between the systems. Increased order volume can lead to overselling (selling products that are unavailable in stock) or excessive safety stock, tying up finances. This increases the chances of stockouts, inventory carrying costs, and lost sales due to inaccurate available-to-promise data.
Solution
ERP systems provide real-time inventory updates across all sales channels and multiple warehouses, ensuring you don’t oversell. Placing an online order automatically updates inventory and data across all the marketplaces, increasing data accuracy and reducing both stockouts and overstocking.
2. Data fragmentation
Challenge
Using disconnected e-commerce systems maintains data (orders, stock, customer records) separately, which is manually updated in each system, creating siloed data. Inaccurate data makes decision-making difficult and leads to the circulation of outdated information across teams. This data fragmentation can cause serious problems when sales volume and channels increase. This results in mismatched inventory counts between sales channels. It also restricts your sales representatives from seeing customer order history and tracking customer issues in real-time.
Solution
An integrated ERP system offers a centralized database, providing a single source of truth. A centralized database eliminates data silos, ensuring that all departments have access to the same information. It unifies data from inventory, orders, and customer interactions across channels, assuring accurate reporting and rightful operational execution.
3. Higher error rates
Challenge
E-commerce businesses perform manual data entry and reconciliations. This may include copying orders from the storefront into accounting software, manually updating inventory, or reconciling sales figures with shipping data from one system to another. They are slow processes that are prone to errors and become problematic with growing order volumes. These inefficiencies in the processes result in incorrect orders and deliveries, accounting data errors, and wasted time on routine or nonstrategic tasks.
Solution
The enterprise resource planning platform automates workflows, from order capturing through fulfillment to finance management. Integrated and automated order-to-cash processes reduce manual steps, minimize human error, and accelerate operational execution across departments.
4. Poor customer experience
Challenge
Customers and support teams suffer when the data is scattered. Your customer representatives do not have quick access to data, such as order status, inventory availability, or payment history. This results in poor issue resolution, inconsistent communication, delayed responses to customer inquiries, increased support costs due to repetitive tasks, and reduced customer satisfaction and retention rates.
Solution
Integrating an ERP system with CRM (Customer Relationship Management) offers a 360-degree view of sales, support, and fulfillment data. This enables businesses to provide personalized service, quickly resolve issues, and unify customer account histories.
5. Financial reporting delays
Challenge
Disconnected systems or manual reconciliation can slow the process. Sales data may not be updated on the accounting system on time, as the sales management system and accounting systems are disconnected. Sales forecasting becomes guesswork due to scattered and inaccurate data from various departments. This leads to delayed or inaccurate financial statements and poor budget forecasting. It also weakens cost control and margin analysis.
6. Limited scalability
Challenge
As your e-commerce stores expand to multiple storefronts, marketplaces, or geographies, you struggle to keep up with the demand. Using disconnected systems does not perform well under high-volume data flow. This can increase operational complexity and make it difficult to support multiple currencies, warehouses, or sales rules.
Solution
The ERP systems can consolidate financial data into centralized ledgers and reporting platforms. It provides real-time financial visibility, improving accuracy, and reconciling revenue with actual operations promptly.
7. Fulfillment disruptions
Challenge
The data is not updated in real-time on disconnected systems, which delays order fulfillment, resulting in slow order processing and delivery errors, and increasing fulfillment lead times. Inability to deliver the right order on time can lead to higher churn rates and customer dissatisfaction.
Solution
The ERP systems are developed keeping scaling in mind. They support multiple channels, locations, and even legal entities. These systems also enable businesses to maintain consistent governance and control, reducing complexity and increasing capacity for growth.
Bottom-line
In 2026, e-commerce growth is quickly evolving, which demands integrated operations and real-time operational visibility across all business processes. Without an Enterprise Resource Planning (ERP) system, scaling e-commerce can expose businesses to various operational, financial, and customer experience flaws that ultimately limit growth. ERP systems are the operational backbone of e-commerce businesses, enabling sustainable scaling, data consistency, and cross-functional agility without significantly increasing the costs.
