Ecommerce API Integrations [Complete Guide]

1) A Brief Explanation of Ecommerce API Integrations

The ecommerce industry has been taking off like a rocket over the past decade, with over 2 billion people making their purchases primarily online. A little-known fact is that ecommerce API integrations are what make this industry flourish.

So, in this article, we’ll be taking a quick peek at what ecommerce API integrations have brought to the game. 

An API (Application Programming Interface) is a programming tool that connects different systems together in order to perform specific tasks. E-commerce API integrations can be seen in all major facets of online shopping, from viewing platforms like YouTube to information dispensaries like Weather Apps.

Even chatting platforms make use of API integrations to function, as these programs act as repositories of information for various systems.

Based on their programming, they can send messages, initiate actions, collect knowledge, analyze data, and carry out a myriad of other functions.  

These APIs have also made their way into the online retail and logistics industries, playing a vital role in both basic and complex operations.

In fact, brands using WhatsApp Business to quickly answer customer queries and share updates fully rely on API communications.

Carriers, customers, storefronts, and enterprises all make use of API-based ecommerce platforms for communication and dispersal of information in an accurate and timely manner.  

2) How Do Ecommerce API Integrations Work?

Optimizing your supply chain is all about creating a well-connected web of information, and this is precisely how an e-commerce API integration works. ​​

This program enables the operating system of an online business to instantaneously connect with a multitude of other support systems. These systems include but are not limited to multi-carrier API integrations, storefront APIs, shipping APIs, and communication gateways.

The most common use of ecommerce API integrations has typically been in order tracking. When a carrier updates the status of an order, an API automatically updates that data on order tracking portals. This helps both businesses and customers track their orders in real time. 

3) What are the Difficulties of Using Ecommerce API Integrations?

Ecommerce API integrations have a wide range of benefits that have cascading impacts on supply chains. We’ll go into those in greater detail shortly.

However, despite these positive attributes, many businesses find themselves struggling to properly use API integrations in eCommerce.

This is because, as with all good things, there are numerous drawbacks to the usage of ecommerce API Integrations.  

3.1) Minimal Standardization

There is one major area where standardization becomes important with the use of ecommerce API integrations. And that’s with respect to the API standard in question, which differs from system to system.

Some use SOAP, others use REST, and many also make use of Graphql. This can interrupt the flow of data between the systems connected through your ecommerce API platform. 

3.2) Tech Limitations of 3PLs 

Shipping APIs and other API integrations used by various third party logistics (3PL) companies differ greatly. In many cases, the API integrations used by these logistics providers may be less advanced or supported by systems with limited capacities.

Perhaps the most important thing to remember is all APIs may not be compatible with the current tech stack your business uses. Therefore, it's always a good idea to check with a 3PL before partnering with them.

3.3) Lack of Synchronization

This is another problem caused by a lack of standardization with respect to the APIs themselves. In terms of the functions they perform and how they operate, the APIs developed by different tech teams for different services can be fundamentally different. This affects the synchronization of information and functionality across different systems. 

3.4) Fast-Paced Regulatory Changes 

Getting ecommerce API integrations up and running can take anywhere between a few days to a few weeks. So, by the time an API integration is set up, the legal framework for tech and data transfer can change rapidly.

In fact, this has been a common occurrence when it comes to integration with ecommerce API since regulations are constantly in flux. 

3.5) Regular Maintenance Requirements

When it comes to ecommerce API integrations, just setting them up is never quite enough. Like with every complex system that functions mechanically, it also requires regular maintenance.

So, a tech team or a service provider with tech expertise would be required to ensure the API integration is fully operational at all times. This also comes in handy when it comes to upgrading and updating ecommerce API integrations.   

4) What are the Benefits of Ecommerce API Integrations?

So, if there are so many problems that arise when making use of ecommerce API integrations, then why do brands still keep turning to them? The answer is rather obvious. It’s because the benefits heavily outweigh the challenges.

Especially since the challenges are easily solvable if you make use of a multi-carrier integration software or a logistics intelligence solution. Let’s take a look at some of the positive outcomes of using ecommerce API integrations. 

4.1) Reduce Duplication of Efforts

In the process of ecommerce shipping, there are numerous tasks that need to be carried out. Many of these require the same activities to be performed over and over again.

For example, when an order is placed by a customer, the order details must be entered manually into the carrier’s system to create the order. These same details again have to be inputted to create the shipping label.

Using an API, this same task can be carried out both times with greater accuracy and little to no manual effort.

4.2) Maximize Automation

Automation is the way of the future. From unmanned assembly lines to self-driving cars, automation is being used in most industries, and, of course, logistics is no exception.

The use of API integrations in ecommerce essentially creates a chain reaction of functionality. An order being placed triggers automated order creation with the carrier, which then triggers automated shipping label creation.

Various ecommerce API integrations can be carefully set up like dominoes to make things run smoother. 

4.3) Accuracy in Administrative Work 

There’s a lot of information involved in ecommerce fulfillment, so administration is a big part of the job. From customer data to order details, then to carrier and order tracking updates, plus payment info - keeping track of all this information is absolutely vital.

When this information has to be manually entered and stored, there are high chances of inaccuracy and delays in updates. Ecommerce API integrations ease the process by automating the data collection and storage, thereby reducing inaccuracies in the process.  

4.4) Fast Order Tracking

Order tracking is the best way to every customer's heart, and APIs play a huge role in ideal order tracking. Pull APIs are the most common ecommerce API integrations used for order tracking as they pull status updates immediately from carrier systems.

More advanced systems, like the one provided by ClickPost, make use of Push APIs as well. These push carriers to provide updates within a designated period of time. The two together ensure real-time tracking updates can be automatically notified to customers.  

4.5) Lower Logistics Costs

Ecommerce API integrations offer one major advantage and that is efficiency. By automating a variety of functions, including data collection, relay, and checking, the entirety of your operations are able to run more smoothly.

Each individual action can be broken down into various components and improved in such a manner that regular challenges can be overcome. These actions together result in a guaranteed reduction of overall logistics costs. 

5) Conclusion

With services like omnichannel fulfillment quickly making their way to the forefront, intelligent use of tech is truly the name of the game right now. This is precisely why understanding API integrations is absolutely essential when it comes to gaining a competitive edge in the online market.

If you use e-commerce API integrations the right way, you could not only optimize your operations but also keep costs low and customers happy. And that’s the trifecta of profit-making.

6) FAQs about Ecommerce API Integrations

6.1) Why are API integrations crucial for ecommerce businesses?

Ecommerce API integrations are a must for every online store owner because they facilitate the transfer of order data between carrier and business systems at a rapid pace. This enables real-time order tracking and strengthens business-client relationships.

6.2) What are the most common ecommerce API integrations?

Some of the most common ecommerce API integrations aid in shipping and logistics (tracking API, EDD API, label generation API, return API), payment gateways, shipping carriers, inventory management systems, CRMs and more.