Amazon FBA integration for Business Central

Does your company sell via Amazon FBA, but still handle orders, inventory data, returns or reconciliation manually in Microsoft Dynamics 365 Business Central?

Then you are far from the only ones.

Amazon FBA can be a strong fulfilment solution for companies that want to sell via Amazon without handling picking, packing, shipping and parts of customer service themselves. But even though Amazon takes over a large part of the operational warehouse work, the need for control in the ERP system does not disappear.

On the contrary.

When Amazon FBA becomes part of the business, a new and often more complex data flow arises between Amazon Seller Central, Business Central, finance, inventory, reporting and any other sales channels.

That is why an Amazon FBA integration for Business Central is important if the company wants to avoid manual processes, errors in stock status, a lack of overview and time-consuming reconciliation.

What is Amazon FBA?

Amazon FBA stands for Fulfilment by Amazon.

It means that the company sends goods to Amazon’s fulfilment centres, after which Amazon handles large parts of the order process. When a customer buys the item on Amazon, Amazon typically takes care of picking, packing, shipping, tracking, customer service and returns handling.

For many companies FBA is attractive because it makes it easier to scale sales on Amazon without having to expand their own warehouse, packing area and logistics setup.

But FBA does not mean that Amazon replaces the company’s ERP system.

Business Central is still central to:

• Finance
• Inventory management
• Purchasing
• Item data
• Posting
• Reporting
• Reconciliation
• An overview of sales and contribution margin

That is why the need arises to get Amazon FBA and Business Central to work together.

Why integrate Amazon FBA with Business Central?

An Amazon FBA integration for Business Central is about automating the data flow between Amazon and the ERP system.

Without integration, employees often have to pull reports, export files, enter data manually, update stock status and compare figures across systems. That can work in a start-up phase, but it quickly becomes inefficient when sales grow.

With an integration, data can flow more automatically between Amazon and Business Central, so the company gets a more accurate and up-to-date basis for operations, finance and decisions.

An integration can, among other things, help to:

• Transfer Amazon orders to Business Central
• Update stock movements related to FBA
• Provide a better overview of FBA inventory
• Handle returns data and refunds
• Support the reconciliation of Amazon payouts
• Reduce manual data entry
• Improve reporting on Amazon sales
• Create coherence between Amazon and other sales channels

The most important thing is not just to “move data”. The most important thing is to ensure that data is translated correctly into the company’s processes in Business Central.

Read more: What is Dynamics 365 Business Central?

What challenges arise without integration?

Amazon FBA can seem simple on the surface, because Amazon handles fulfilment. But behind it lies a lot of data and movements that the company still has to keep control of.

Manual orders and reports

If Amazon orders are not automatically transferred to Business Central, the company often has to work with manual exports from Seller Central.

That creates extra administration and increases the risk of errors.

An unclear inventory overview

When goods are sent to Amazon’s fulfilment centres, they are physically moved away from the company’s own warehouse. But they are still part of the company’s stock and finances.

If FBA inventory is not handled correctly in Business Central, it can become difficult to see:

• How many goods are at Amazon
• How many goods have been sold
• How many goods are reserved
• Which goods need to be replenished
• Whether inventory data matches Amazon

Time-consuming reconciliation

Amazon sales are rarely as simple as one order and one payment.

There can be fees, commissions, returns, refunds, currency differences and payouts covering many transactions at once.

If the finance department has to reconcile this manually, it can become both time-consuming and error-prone.

A lack of overview of earnings

A product can sell well on Amazon but still have a low or negative margin if fees, freight, returns and inventory costs are not included correctly.

Without integration it can be difficult to link sales data from Amazon together with cost prices, item data and financial data in Business Central.

Returns create a mess

Amazon FBA often handles the returns process, but the company still has to be able to see how returns affect inventory, finance and reporting.

If returns data does not come into Business Central correctly, differences can arise between Amazon, inventory and posting.

Read more: Dynamics 365 Business Central Integration

Which data should be synchronised between Amazon FBA and Business Central?

A good Amazon FBA integration should be based on the specific processes the company needs to automate.

Typically it is about these data types.

1. Orders

Amazon orders should be able to be transferred to Business Central, so the company gets its sales data gathered in the ERP system.

That can for example include:

• Order number
• Order date
• Marketplace
• Item number/SKU
• Quantity
• Price
• Discounts
• Currency
• VAT data
• Delivery country
• Order status

Even though Amazon handles fulfilment, order data is still important for finance, reporting and inventory management.

2. Products and SKUs

For Amazon and Business Central to talk to each other, the relationship between item numbers, SKUs and product data has to be under control.

That is especially important if the company has:

• Several variants
• Bundles
• Different SKUs across systems
• Several marketplaces
• Products in both FBA and other sales channels

If the SKU structure is not clear, the integration can quickly become unstable.

3. Stock status

FBA inventory should be able to be reflected in Business Central, so the company can see how much stock is at Amazon.

It can be relevant to handle Amazon FBA as a separate stock location in Business Central. That way the company can distinguish between its own warehouse, Amazon stock and any 3PL warehouses.

4. Stock movements

When goods are sent to Amazon, sold, returned or adjusted, it should be visible as stock movements.

That provides better traceability and makes it easier to understand how the stock develops.

5. Returns and refunds

Returns data is important for inventory, finance and customer service alike.

An integration can help register:

• Returned items
• Refunds
• Reasons for returns
• Adjustments in stock status
• Financial impact

6. Fees and payouts

Amazon typically deducts fees and commissions before the company receives its payout.

That is why the integration should be thought through together with the financial processes in Business Central.

It can be relevant to work with:

• Sales amounts
• Amazon fees
• FBA fees
• Commissions
• Refunds
• Payouts
• Currency
• A basis for reconciliation

7. Shipping and fulfilment status

Even though Amazon handles the shipping, status data can still be relevant in Business Central or in reporting.

It can provide better insight into which orders have been completed, returned or are still being processed.

What an Amazon FBA flow can look like in Business Central

A typical data flow between Amazon FBA and Business Central can look like this:

1. The company creates or maintains items in Business Central, a PIM or another master data system
2. Goods are sent to the Amazon FBA warehouse
3. The stock transfer is registered in Business Central
4. The customer buys the item on Amazon
5. Amazon handles picking, packing and shipping
6. Order data is retrieved from Amazon
7. The order is created or registered in Business Central
8. Stock status is updated
9. Fees, refunds and payouts are retrieved for reconciliation
10. Data is used for posting, reporting and replenishment

It sounds simple, but in practice the flow depends on the company’s setup.

Some companies want a detailed order per Amazon sale in Business Central. Others want more aggregated posting based on reports and payouts. Some have one marketplace. Others sell across several countries.

That is why the integration should be designed on the basis of the specific business — not only on the basis of a standard connector.

Inventory management with Amazon FBA and Business Central

Inventory management is one of the most important areas in an Amazon FBA integration.

When goods are at Amazon, they are no longer physically in the company’s own warehouse. But they still have to be visible and manageable as part of the company’s stock.

That is why many companies choose to set up Amazon FBA as a separate stock location in Business Central.

It can for example look like this:

• Own warehouse
• Amazon FBA DE
• Amazon FBA SE
• Amazon FBA NL
• 3PL warehouse
• Webshop warehouse

This structure makes it easier to see where the goods are, and how they move between locations.

Replenishment of the Amazon FBA warehouse

One of the big challenges with FBA is ensuring that the Amazon warehouse is replenished in time.

If the stock runs out, the company loses sales. If too many goods are sent to Amazon, it can tie up capital unnecessarily and potentially cause extra inventory costs.

With better data in Business Central, the company can work more systematically with:

• Minimum stock
• Reorder points
• Sales history
• Forecast
• Purchasing
• Stock transfers
• Performance per marketplace

Integration makes it easier to make decisions based on current data rather than manual spreadsheets.

Orders, payments, fees and reconciliation

One of the areas where Amazon FBA often creates the most complexity is finance and reconciliation.

When a customer buys an item on Amazon, it looks at first glance like a sale. But the amount the company receives is affected by several elements.

That can include:

• Amazon referral fees
• FBA fulfilment fees
• Inventory costs
• Returns
• Refunds
• Campaigns
• Currency
• Marketplace-specific conditions
• Payout periods

That is why there is often a difference between the order amount and the amount that is actually paid out.

If the finance department has to reconcile this manually, it can quickly become a heavy task.

An Amazon FBA integration for Business Central can help create a better data basis, so the company can more easily reconcile sales, fees, returns and payments.

It can also make it easier to analyse the actual earnings on Amazon.

For many companies this is important, because high revenue on Amazon does not necessarily mean high profitability.

Returns and refunds from Amazon FBA

Returns handling is a natural part of Amazon FBA.

Amazon can handle parts of the returns process, but the company still has to understand how returns affect the business.

That applies in particular to:

• Stock status
• Refunds
• Sales reporting
• Posting
• Product performance
• Customer satisfaction
• Replenishment

If returns data is not integrated correctly, the company risks working with incorrect figures.

Example:

A product sells well on Amazon, but at the same time has a high return rate. If returns data is not linked together with sales data and finance in Business Central, the product can look more profitable than it actually is.

With integration, returns data can become part of the overall decision basis.

FBA, FBM or both?

Many companies do not work with just one fulfilment model.

Some products are sold via FBA, while others are handled as FBM — that is, Fulfilled by Merchant, where the company itself handles inventory and delivery.

It can be relevant to use both models if:

• Some products are better suited to Amazon’s warehouse
• Other products are too large, heavy or expensive to handle via FBA
• The company wants more control over certain orders
• Products are sold across several channels
• The company uses its own warehouse or 3PL partners in parallel

But the combination of FBA and FBM makes the integration more complex.

With FBA, the integration typically has to focus on Amazon inventory, order data, fees, returns and reconciliation.

With FBM, the integration often also has to handle picking, packing, WMS, shipping labels, tracking and stock updates from the company’s own warehouse.

That is why the integration should be designed so it can support both models, if the company needs that.

What should you consider before an Amazon FBA integration?

Before the company starts an Amazon FBA integration for Business Central, a thorough scoping of data, processes and systems should be carried out.

Here are some of the most important questions.

Read more: 14 mistakes you should avoid when selling on Amazon

1. What should Business Central be master for?

Business Central can be master for, for example:

• Items
• Item numbers
• Inventory
• Purchasing
• Finance
• Cost prices
• Posting

But some product data may sit in a PIM system, while Amazon Seller Central has its own listings.

It is important to define which system owns which data.

2. How do SKUs match between Amazon and Business Central?

SKU matching is one of the most important prerequisites for a stable integration.

If the same product has different item numbers in Amazon and Business Central, a clear mapping has to be established.

That applies in particular to:

• Variants
• Bundles
• Multipacks
• Country-specific SKUs
• Historical item numbers
• Products on several marketplaces

3. Should orders be created individually or in aggregate?

Some companies want all Amazon orders created individually in Business Central.

Others want to post Amazon sales more in aggregate, for example based on settlement periods.

There is no single right answer. It depends on the need for detail, reporting, posting and performance.

4. How should FBA inventory be shown in Business Central?

Should Amazon FBA be one stock location? Or should the stock be split per country or marketplace?

That depends on the company’s setup and reporting needs.

5. How are fees and refunds handled?

Fees and refunds should be thought in from the start.

Otherwise the integration risks solving the order flow but leaving the finance department with a large manual task.

6. Should the integration also support other sales channels?

Many companies do not sell only via Amazon.

They may also have:

• Their own webshop
• A B2B customer portal
• Sales representatives
• Distributors
• Other marketplaces
• 3PL partners

If that is the case, the Amazon integration should be thought of as part of an overall integration architecture.

A standard connector or a custom Amazon FBA integration?

There are various standard connectors that can link Amazon and Business Central. For some companies that can be a fine solution.

But a standard connector does not always fit the company’s processes.

That applies in particular if the company has:

• Several marketplaces
• Both FBA and FBM
• Particular stock locations
• Complex SKU structures
• Its own rules for posting
• Several sales channels
• Particular requirements for reconciliation
• PIM, WMS or 3PL as part of the flow

In those cases a more flexible integration can be a better solution.

A custom or configurable integration can be adapted to the company’s actual work processes, instead of the company having to change its processes to fit into a standard connector.

That is often where Connectify can create value.

How Connectify can help with Amazon FBA integration for Business Central

At Connectify we help B2B companies get their systems to work together.

An Amazon FBA integration is not just about connecting two systems. It is about creating a stable data flow between Amazon, Business Central and the rest of the business.

We can help design and build integrations that support your specific setup.

That can for example be an integration between:

• Amazon Seller Central
• Amazon FBA
• Microsoft Dynamics 365 Business Central
• Webshop
• B2B customer portal
• PIM
• WMS
• Shipping solutions
• 3PL partners
• BI or reporting solutions

Typical integration flows can be:

• Amazon orders to Business Central
• FBA stock status to Business Central
• Stock transfers from Business Central to the Amazon flow
• Returns data from Amazon to the ERP
• Fee and reconciliation data to finance
• Product and SKU mapping between systems
• Data for reporting and a performance overview

Our approach is to start with your processes.

How do you sell on Amazon? How do you use Business Central? Where does manual work arise today? Which data are you missing in order to manage the business better?

Once that is clarified, the integration can be built so it fits reality — not only the systems’ standard fields.

Example: From manual Amazon handling to an automated FBA flow

Imagine a B2B company that sells products via Amazon in several European markets.

Before the integration, the company works like this:

• Amazon orders are retrieved manually
• Stock status is checked in Seller Central
• Finance exports reports to Excel
• Fees are reconciled manually
• Returns are registered with a delay
• Business Central does not always show the actual Amazon stock
• Management lacks an overview of the margin per product

After an Amazon FBA integration for Business Central, the flow can instead look like this:

• Amazon orders are retrieved automatically
• Sales data is registered in Business Central
• FBA inventory is updated as a separate stock location
• Returns data and refunds are loaded on an ongoing basis
• Fees are included in the reconciliation basis
• Finance gets a better data basis
• Management can analyse sales and earnings more precisely

The result is not just less manual work.

It is better control.

Amazon FBA integration as a foundation for scaling

Amazon FBA can be a strong sales channel, but without integration growth can quickly create complexity.

The more orders, products, markets and stock movements the company has, the harder it becomes to manage manually.

An integration with Business Central makes it easier to scale Amazon sales, because the company gets better coherence between operations, inventory and finance.

That means, among other things:

• Less dependence on manual spreadsheets
• Fewer errors in data
• Faster access to sales and inventory information
• Better financial control
• A better decision basis
• More efficient internal administration

For B2B companies, wholesalers, manufacturers and distributors, Amazon FBA can therefore become a more controllable part of the overall sales strategy.

Read more: Amazon integration

Amazon FBA requires more than fulfilment

Amazon FBA can solve an important part of the fulfilment task. But it does not automatically solve the company’s need for ERP control, an inventory overview, financial reconciliation and reporting.

That is why an Amazon FBA integration for Business Central is important for companies that want to work professionally with Amazon as a sales channel.

With the right integration, the company can get better control of orders, inventory, returns, fees, payouts and data flow.

That means less manual work, fewer errors and a better foundation for scaling Amazon sales.

At Connectify we help companies create coherence between Amazon FBA, Business Central and the rest of the system landscape — so data flows correctly, and the business can grow on a more stable foundation.

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FAQ about Amazon FBA integration for Business Central

What is an Amazon FBA integration for Business Central?

An Amazon FBA integration for Business Central connects Amazon Seller Central and Microsoft Dynamics 365 Business Central, so data about orders, inventory, returns, fees and payouts can be exchanged more automatically between the systems.

Why should Amazon FBA be integrated with Business Central?

Because Amazon FBA still affects the company’s ERP data. Even though Amazon handles fulfilment, the company still has to keep control of inventory, sales, finance, reconciliation and reporting in Business Central.

Can Amazon FBA inventory be shown in Business Central?

Yes. Many companies choose to handle Amazon FBA as a separate stock location in Business Central. That makes it easier to distinguish between their own warehouse, Amazon stock and any other stock locations.

Which data can be synchronised between Amazon FBA and Business Central?

That can include orders, SKUs, stock status, stock movements, returns, refunds, fees, payouts and sales data. The exact setup depends on the company’s processes and needs.

Is a standard connector enough for Amazon FBA and Business Central?

For some companies a standard connector can be enough. But if the company has several marketplaces, both FBA and FBM, complex SKUs, particular requirements for posting or several systems in the flow, a more flexible integration may be necessary.

Can Connectify help with both FBA and FBM?

Yes. Connectify can help with integration flows for both Amazon FBA and Amazon FBM. FBA typically requires a focus on inventory, orders, returns data and reconciliation, while FBM often also requires integration with your own warehouse, WMS, shipping and tracking.

What is an Amazon FBA integration for Business Central?

An Amazon FBA integration for Business Central connects Amazon Seller Central and Microsoft Dynamics 365 Business Central, so data about orders, inventory, returns, fees and payouts can be exchanged more automatically between the systems.

Why should Amazon FBA be integrated with Business Central?

Because Amazon FBA still affects the company’s ERP data. Even though Amazon handles fulfilment, the company still has to keep control of inventory, sales, finance, reconciliation and reporting in Business Central.

Can Amazon FBA inventory be shown in Business Central?

Yes. Many companies choose to handle Amazon FBA as a separate stock location in Business Central. That makes it easier to distinguish between their own warehouse, Amazon stock and any other stock locations.

Which data can be synchronised between Amazon FBA and Business Central?

That can include orders, SKUs, stock status, stock movements, returns, refunds, fees, payouts and sales data. The exact setup depends on the company’s processes and needs.

Is a standard connector enough for Amazon FBA and Business Central?

For some companies a standard connector can be enough. But if the company has several marketplaces, both FBA and FBM, complex SKUs, particular requirements for posting or several systems in the flow, a more flexible integration may be necessary.

Can Connectify help with both FBA and FBM?

Yes. Connectify can help with integration flows for both Amazon FBA and Amazon FBM. FBA typically requires a focus on inventory, orders, returns data and reconciliation, while FBM often also requires integration with your own warehouse, WMS, shipping and tracking.