The Marketplace Tax & ERP Tax: The Hidden Costs of Inventory Management

TL;DR

The Marketplace Tax & ERP Tax force businesses to pay multiple times for the same marketplace access—once for listing, again for API access, and a third time for ERP integration. These unnecessary costs leave many companies stuck with workarounds like spreadsheets instead of true automation. ERP.Aero eliminates these fees, providing seamless marketplace integration at no extra cost while centralizing inventory management in a full-fledged ERP. 💡 Stop overpaying—start optimizing!

The Cost of Doing Business – Or Is It?

In the aviation parts distribution industry, listing inventory on marketplaces like ILS , Partsbase , and Locatory is an operational necessity. These platforms connect suppliers with buyers worldwide, increasing visibility and market reach. But what many businesses fail to realize is that they are being charged multiple times for a single function and you wouldn't believe who's doing it.

This unnecessary cost structure is what we call the Marketplace Tax and ERP Tax. If you’ve ever wondered why managing your inventory is so expensive, the answer lies in the layers of fees imposed at different stages of marketplace integration.

Breaking Down the Marketplace Tax

Aviation suppliers willingly pay Marketplace Fees to list their inventory. That’s a fair exchange for visibility. However, the real issue begins when companies are required to pay additional fees for API access and ERP integration—all for the same marketplace listing.

The Three Layers of Marketplace Tax

1. Marketplace Fees – Suppliers pay to list inventory on platforms like ILS, PartsBase, and Locatory.

2. API Access Fees – Additional costs for web services and API access to integrate.

3. ERP Integration Fees – Many ERP providers charge extra just to connect your system to these marketplaces.

This means that companies are effectively paying multiple times just to manage their inventory across external platforms—a redundant and costly burden that should not exist. And the reality is ERPs are very well aware of your dependence on the marketplaces so they impose these taxes and you're expected to pay.

The ERP Tax: Paying for Basic Functionality

Beyond marketplace taxation, businesses face another hidden cost: the ERP Tax. This is the cost associated with using an ERP system that should already offer seamless integration but instead charges additional fees for essential functions.

Common ERP-Related Costs:

• Integration Fees – Extra costs to connect with marketplaces you already pay for.

• Workflow Inefficiencies – Many ERPs don’t centralize inventory from supplier catalogs, consignment stock, and push lists, forcing businesses to maintain disconnected spreadsheets.

• RFQ Aggregation Costs – Some suppliers even pay for third-party services to gather RFQs because their ERP fails to do so.

These costs add up and impact the bottom line. The ERP Tax is not just a financial drain—it’s a barrier to operational efficiency.

The Spreadsheet Dilemma: The Hidden Cost of Workarounds

Many companies turn to spreadsheets to bridge gaps left by their ERP systems. Supplier catalogs, consignment stock, and push lists are often managed in multiple disconnected files, leading to inefficiencies, errors, and an increased administrative burden.

If your ERP is supposed to handle inventory management, why are you still using spreadsheets? This fragmentation is a direct result of the Marketplace and ERP Tax—forcing businesses to pay more yet still rely on manual processes.

Eliminating the Tax: A Smarter Approach to ERP & Marketplace Integration

How ERP.Aero Eliminates the Hidden Costs

ERP.Aero is challenging the status quo by eliminating the Marketplace and ERP Tax. Here’s how:

1. Zero Integration Fees – Full marketplace connectivity at no extra cost (included)

2. RFQ Management – Centralized RFQ aggregation, automated tracking, and seamless integration (included)

3. Comprehensive Inventory Management – Manage on-hand stock, supplier catalogs, consignment stock, and push lists in one system (included)

4. Real-Time Updates – Seamless synchronization of inventory changes across all connected marketplaces (included)

5. Automated Workflows – Eliminate spreadsheet dependence with built-in supplier catalog imports and consignment tracking (included)

The Future of Marketplace Integration

The industry must move away from paying multiple times for a single function. The true cost of inventory management is not just about marketplace fees—it’s about the hidden ERP Tax that many companies don’t even realize they’re paying.

Take Control of Your Inventory Costs

If you’re tired of being triple-charged, it’s time to challenge the status quo. ERP.Aero offers a cost-effective, technology-first solution that eliminates unnecessary integration fees while providing full marketplace connectivity.

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