Managing Complex B2B Pricing with Sage ERP and eCommerce Integration

3 min read ● Silk Team

Sage ERP to eCommerce Integration for Complex B2B Pricing Models

There are many reasons B2B pricing is rarely a simple matter of just offering one price. Unlike when you sell directly to consumers, in B2B, manufacturers and distributors have a lot of different variables they have to deal with; negotiated contracts, volume discounts, customer specific price lists and a variety of other factors that can make each account unique. As a result, when the pricing rules are only stored in the ERP (Enterprise Resource Planning) software, it can be difficult if not impossible to allow an account to buy from your company through an e-commerce channel.

That’s why Sage ERP to eCommerce integration is so vital for companies who operate in a B2B pricing model and need to be able to take their pricing rules and apply those same pricing rules to an e-commerce website without losing either the accuracy of the pricing or losing control over how much they charge for a product.

Why Does B2B Pricing Fail If There Is No Integration?

In many cases, B2B manufacturers try to use a manual upload or some form of simplified rule to layer e-commerce onto the pricing rules they established within their Enterprise Resource Planning (ERP) software. Most of the time this strategy does not last very long.

Some of the common problems that occur when trying to create a B2B pricing model using a manual upload or simple pricing rules include:

• Prices being displayed incorrectly to a customer
• Sales teams overriding online orders because they do not agree with the price that was displayed on-line
• Margin loss caused by incorrect pricing
• More work for the customer service department

When a manufacturer uses Sage ERP, pricing has already been defined and validated in the ERP software. Therefore, the key benefit of integrating Sage ERP with an eCommerce website is that the pricing logic will remain the single source of truth for pricing and therefore ensure the correct price is displayed at the point of sale.

Common B2B Pricing Models Used Within Sage ERP

Before considering an integration strategy, it is helpful to know what type of pricing models are commonly managed within Sage ERP:

• Customer Specific Pricing – A negotiated price agreed upon by both parties that is related to the individual account and is tied to that account.
• Tiered Pricing – Discounts given based on volume of purchases, with larger volumes receiving lower prices per unit.
• Contract Pricing – A fixed price for a specified period of time.
• Pricing Lists by Customer Group – Prices charged to customers in groups such as distributors, resellers or geographic regions.
• Conditional Promotions and Discounts – Rules based on products or the value of the order that are applied conditionally.

The main problem with creating these rules is accurately displaying them on an e-commerce website.

How Integration Allows For Accurate On-Line Pricing

Through proper integration of Sage ERP and an eCommerce platform, the pricing information flows automatically from one system to the other.

Some of the key features of the integration include:

• Automatic Real-Time Price Lookups During Checkout
• After logging into the eCommerce site, display of the customer specific catalog that contains the prices they have negotiated.
• Enforce Minimum Order Quantities and Pack Sizes
• Ensure consistent pricing across all sales representatives, portals and eCommerce sites.

This way, customers will always see the price they negotiated and not a generic placeholder.

The Role of Pricing Ownership and Data Flow

One of the key decisions when implementing a B2B integration strategy is determining pricing ownership. In most successful B2B integrations, the ERP system is the System of Record for pricing and the eCommerce platform simply consumes the pricing logic rather than recreate it. This method prevents duplication and makes maintaining the pricing logic easier in the long run. Any changes made to the pricing logic in the ERP (for example, updating contracts or adjusting discounts) will then automatically flow to the eCommerce platform.

Performance And Scalability Considerations

Complex pricing calculations can be resource intensive, particularly for customers with large product catalogs. The integration strategy must consider:

• Caching Frequently Used Pricing Data
• Supporting High-Volume Customer Logins
• Maintaining Fast Page Load Times

If this planning is not completed, accurate pricing may lead to a poor user experience.

Best Practices for Manufacturers

To successfully implement a complex B2B pricing model online, manufacturers should:

• Create a map of all pricing scenarios prior to starting the integration process
• Prioritize using the ERP driven pricing logic
• Test pricing against real customer accounts
• Plan for future pricing complexities as the business expands

Integration should not complicate pricing logic but instead should simplify the process of managing pricing.

Conclusion

Sage ERP to eCommerce integration provides the connection needed to enable complex B2B pricing models to function properly in a digital sales environment. By extending the ERP-driven pricing logic to the storefront, manufacturers can preserve profit margins, increase customer confidence, and expand digital sales without creating operational chaos.

For B2B manufacturers, having an accurate pricing model is mandatory; it is fundamental to the success of an organization.