eCommerce integration and data centralization

Data is the lifeline of eCommerce businesses today. From customer data to other data related to products, inventory, financial transactions, customer support interactions, etc, an eCommerce site handles vast types and amounts of data. While the flow of various kinds of data may not be apparent and visible while navigating an eCommerce store, data usage is intricately woven into every facet of eCommerce operations. Today, how effectively an eCommerce business handles data can single-handedly determine the success or failure of an eCommerce business.

Since data is such a crucial component of eCommerce operations, it requires careful management. During the earlier stages of eCommerce evolution, data management involved significant challenges. eCommerce businesses had to grapple with the arduous task of manual data handling. This process was fraught with inefficiencies, inaccuracies, errors, and operational bottlenecks. It not only cost them growth, but also left them vulnerable to costly errors, poor user experience, and missed opportunities.

With constant technological advancements and changing consumer demands, eCommerce data management saw a paradigm shift. Modern eCommerce platforms brought a radical transformation in data management through seamless integration capabilities and centralization of all the data, consolidating disparate data sources into a unified ecosystem and making them available for all business systems. This has enabled eCommerce businesses to conduct their operations with unprecedented precision and insight.

In this article, we will explore how eCommerce integration and data centralization enabled by modern eCommerce platforms have redefined online commerce and empowered businesses to achieve unprecedented efficiency and growth.

Index

1. Introduction

2. Key Takeawys

3. What is ECommerce Integration?

4. Benefits of ECommerce Integration

    – Operational Efficiency

    – Elevated Customer Satisfaction

    – New Market Opportunities

    – Performance Optimization and Cost Efficiency

    – Data Integrity and Precision

5. Challenges in eCommerce Integration

   – Misreading requirements

   – Varying degrees of modernization across systems and departments

   – Multichannel integration issues

6. Types and Sources of Data that Need to be Centralized

   – Product data

   – Customer data

   – Transaction data

   – Inventory data

   – Marketing data

   – Operational data

   – External data

7. Things to Do Before Integration

   – Clean the data

   – Standardize data fields

   – Collaborate with integration providers

   – Maintain flexibility

8. Steps to Implement eCommerce Integration

   – Identify inefficiencies

   – Analyze customer needs

   – Evaluate data flows

   – Define integration scope

   – Choose integration strategy

   – Implement integration tools and technologies

   – Collaborate with integration experts

   – Continuously monitor and optimize

9. FAQs

Key Takeaways

1.eCommerce integration involves merging diverse data sources, unifying crucial information, and enabling seamless data exchange between various business systems. It synchronizes inventory, sales, and customer data, leading to operational efficiency and informed decision-making.

2.Integration brings operational efficiency by automating tasks, elevates customer satisfaction by enhancing the shopping experience, opens new market opportunities, optimizes performance and cost efficiency, and ensures data integrity and precision.

3. Challenges in integration include misreading requirements, varying degrees of modernization across systems, and multichannel integration issues. Overcoming these challenges requires clear understanding, modernization efforts, and addressing multichannel complexities.

4. Various data types, including product, customer, transaction, inventory, marketing, operational, and external data, need to be centralized to achieve seamless eCommerce integration. Consolidating these data types streamlines operations and enhances decision-making.

5. Before data centralization and implementing eCommerce integration, it is essential to clean and standardize data, collaborate with integration providers, and maintain flexibility to adapt to changing requirements. These steps ensure smooth implementation and efficient operations.

6. Steps to implement eCommerce integration include identifying inefficiencies, analyzing customer needs, evaluating data flows, defining integration scope, choosing suitable integration strategies, implementing tools and technologies, collaborating with experts, and continuous monitoring are crucial for successful integration.

What is eCommerce integration?

eCommerce integration is the process of collecting, merging, synchronizing, standardizing, and organizing data from diverse sources, unifying them into centralized data crucial for business operations, and enabling various processes and systems to seamlessly access them and exchange data for an efficient operation. eCommerce integration synchronizes inventory, sales, and customer data, ensuring seamless functionality and informed decision-making.

eCommerce integration streamlines connections between user interactions on the front-end web stores and essential backend systems like ERP, inventory, and CRM. These systems speak to each other, use centralized data, and exchange data bidirectionally between them, automating various processes and reducing the need for manual data entry into every business system. For instance, ERP integration with eCommerce platforms ensures real-time inventory updates, eliminating manual data entry and ensuring accurate sales data. APIs facilitate secure and seamless data sharing between these systems.

Benefits of eCommerce integration

Following are some of the benefits of eCommerce integration.

1. Integration brings operational efficiency

eCommerce integration automates tasks that were once carried out manually, such as inventory management and order processing, with the help of centralized data. For instance, without eCommerce integration, manually updating data in the inventory management system at the warehouse will not reflect the same in the stock information on the website. With eCommerce integration, these systems share centralized data; once entered into a system, the updated data is automatically available across all the other systems in real time.

These automations reduce errors, cut costs, and free up resources, enabling businesses to focus on core activities. As a result, your eCommerce business enjoys better operational efficiency.

Further, this bodes well for scaling the operations in the future to meet an increase in demand. If you manage all these tasks manually, you may have to recruit more people, spend more resources, and tackle all the complexities associated with scaling your operations. On the other hand, automation makes scaling easy and seamless.

2. Integration elevates Customer Satisfaction

Integration between eCommerce platforms and backend systems works in real-time to create instantaneous responses to the customer’s actions on the eCommerce website, enhancing customer experience at every step of the eCommerce customer journey[1] .

For instance, integration with the inventory management system enables automatic updation of stock information with every purchase, preventing users from placing orders for items that just went out of stock. Similarly, order management integration ensures that the order information generated automatically once a customer makes a purchase is instantly shared with the warehouse, initiating the picking and packing of the products. It simultaneously shares accurate product information with the shipping software integration, generating a package pick-up request and sending order status and tracking information to the customer. All these integrations and automation work in perfect synergy and order by leveraging centralized data, ensuring quick product shipping, and enriching the overall shopping experience.

3. Integration opens new market opportunities

eCommerce integration gives eCommerce businesses new capabilities and empowers them to enter new markets effortlessly. For instance, eCommerce integrations enable multi-currency support and international purchases, increasing your reach. In this case, eCommerce integration leverages centralized data in the following ways.

• Multi-currency eCommerce integration accesses the customers’ location data and automatically selects the currency used in that particular location.
• It integrates with reliable currency exchange rate services to dynamically update the currency exchange rates that change almost every day.
• It accesses the product pricing data on your eCommerce website and automatically converts prices from the default currency to a chosen currency in real time, displaying more accurate pricing of the products in other currencies without any discrepancies.
• It shares the currency exchange and pricing data with the payment integration, enabling it to accept payments in other currencies.
• It integrates with your accounting systems to track sales, revenue, and expenses in different currencies, simplifying financial management and ensuring compliance with tax regulations across various regions.

4. eCommerce integration optimizes performance and cost efficiency

Integration optimizes performance by automating various tasks and creating synergy between systems through shared data, eliminating latency in updating data across systems and improving efficiency. It prevents revenue leakage by ensuring the accuracy of the inventory data.

For instance, shipping costs may vary according to the size, weight, and nature of the product. Imagine configuring the product and waiting for the package specifications to reach the shipping company so that they can generate a quote with the shipping costs. Now, eCommerce integration leverages the product data and the shipping company’s tariff to automate shipping cost calculation, giving an instant quote, leading to significant cost savings, and enhancing overall efficiency.

5. eCommerce integration ensures data integrity and precision

With manual data management, you need to enter and re-enter data into every system. Every time the data gets entered manually into a system, it increases the probability of human errors, delays, and duplicate entries, and leads to compartmentalization of data and operations into silos. As a result, the systems would work without any coordination, consistency, and accuracy.

Centralized data management, on the other hand, guarantees integrity and accuracy, vital for informed decision-making and customer trust. eCommerce integration eliminates data silos and inconsistencies, bolstering the reliability of business data.

What are the challenges in eCommerce integration? 

Navigating the complexities of eCommerce integration comes with its own set of challenges.

1. Misreading the requirements

Misreading the requirements may result from:

• Lack of clarity and consensus within the organization on business needs and goals; this will reflect in implementation
• Lack of coordination and cooperation from partners and third parties, such as logistics partners, suppliers, etc, whose software systems need to sync with your systems and exchange data
• Uncertainty in data synchronization and automation; since these processes can be resource-intensive, you need to judiciously select and prioritize the data sources that need to be synchronized and the areas of automation

2. Varying degrees of modernization across systems and departments

eCommerce integration and data centralization require modern systems that can work together seamlessly and share centralized data through API calls. However, not all systems are necessarily up-to-date in an organization.

• Reliance on outdated technology leads to inefficiencies.
• Legacy systems lack integration visibility and agility.
• Old systems and third-party tools are incompatible with modern platforms and API requirements.
• Legacy systems hinder the visibility of real-time data and quick decision-making.
• The lack of modernized systems limits the centralization of data and the control over it.
• But, modernizing every business system could be expensive and impact the reliability you have built over the years by fine-tuning legacy systems.

3. Multichannel Integration Issues

While you sell your products through an eCommerce store, you should also be present in every channel that brings you a sizeable percentage of customers. For instance, customers may prefer to visit brick-and-mortar stores while considering products that require a trial before purchase. In that case, eCommerce integration must also take into account the necessity to integrate with physical stores as well as all other online storefronts. Many traditional eCommerce platforms do not offer these capabilities.

• Traditional platforms overlook diverse sales channels
• Customers demand seamless multichannel experiences
• Integration with diverse touchpoints and devices is challenging.

What are the types and sources of data that need to be centralized?

eCommerce integration requires creating a centralized data pool that can be accessed by various software systems and third-party tools. By consolidating data into a unified system, businesses can streamline operations, enhance decision-making, and deliver personalized experiences. The following types of data need consolidation and centralization to achieve a seamless eCommerce integration.

1. Product Data, encompassing product descriptions, images, other visual content, and specifications; pricing information and discount details; inventory levels and stock availability; and product variant identifiers, such as SKU numbers and categorization

2. Customer Data that includes personal information such as user names, addresses, and contact information; purchase history and order preferences; and customer segmentation data for targeted marketing

3. Transaction Data, such as order details, including order numbers and timestamps; payment information, including payment methods and transaction amount; shipping and delivery information, shipment tracking numbers, etc.

4. Inventory Data, including real-time stock levels across warehouses and distribution centers, reorder points and lead times for procurement; supplier information and pricing agreements

5. Marketing Data, such as marketing campaign performance metrics, i.e., click-through rates and conversion rates, customer engagement data, such as email open rates and social media interactions, market research insights and competitor analysis

6. Operational Data, which includes website analytics, such as traffic sources and user behavior, performance metrics for sales KPIs, such as sales revenue and conversion rates, operational workflows, and process documentation

7. External Data from third-party integrations, such as payment gateways and shipping carriers; external sources, such as industry reports, market trends, and industry benchmarks; and regulatory compliance data, including tax rates and legal requirements

Things to do before integration

Before you begin eCommerce integration, you must prepare the identified types of data and data points that need to be centralized. It is a critical step in ensuring smooth implementation and efficient operations. The steps involved are not that dissimilar to how you prepare the data before the eCommerce platform migration[2] . By following these steps, you can effectively prepare your data for eCommerce integration and centralization, and achieve efficiency, accuracy, and scalability.

1. Clean your data

When you collect data from various sources, there will be duplicate entries, discrepancies, and errors. You have to spend time and resources to clean up the data as follows.

• Identify duplicate fields and customer identifiers and delete them to avoid redundancy and streamline integration processes.
• Find incomplete or inconsistent records and correct them to ensure data accuracy.
• Update your eCommerce platform and other systems, such as CRM software, ERP system, or accounting software, to maintain data integrity and achieve flawless eCommerce integration.

2. Standardize data fields

Data fields must be standardized and data must be streamlined. For example, sometimes, products will have multiple variants. For instance, when you buy a phone, it may be available in different colors and storage sizes; the price of each such variant may vary. However, treating these variants as different products can cause confusion when you implement eCommerce integration.

Also, there may be discrepancies between the number of units in stock and the number of units sold, when you have, say combo packs. In that case, multiple units of products sold as a single combo pack may be counted as four different products. To avoid that, you have to standardize data fields in the following ways.

• Add an accounting SKU in an extra field for each product in your eCommerce store to reduce the need for translations during integration.
• Match selling units of measure with stock-keeping units of measure to align data across systems.

3. Collaborate with integration Providers

While you can give certain tasks to your teams and consult with them regarding the data points and software systems relevant to them, you cannot take them away from the daily work to centralize data and implement eCommerce integration. It will not only impact their work and your organization’s productivity but also demand from them more than what they are capable of delivering.

So it is essential to collaborate with consultants and experts in eCommerce data management from outside the organization to translate and synchronize data across platforms. You can leverage their expertise to streamline the integration process and optimize data consistency and accuracy.

4. Maintain flexibility

It is indispensable to aim for data cleanliness, but you cannot spend too much time cleaning up the data; you need to show progress. You can address minor data errors and discrepancies and achieve perfection later as you make progress since data preparation is an ongoing process. So, you can do a preliminary data clean-up, verify data integrity, and start the process of eCommerce integration. You can stay adaptable to changes and updates in your systems and data requirements, ensuring flexibility for future integration needs.

Integrating your eCommerce data and systems

By following these steps and leveraging the right integration strategies and technologies, you can successfully integrate your eCommerce data and systems, driving operational efficiency and delivering exceptional customer experiences.

1. Identify your inefficiencies

When you have manual data management, you will have performance issues, data errors, and duplicate entries. Identify the business-critical processes within your current system that suffer from these issues and affect the customer experience. These critical areas of eCommerce integration must be prioritized and improved in efficiency and accuracy.

2. Analyze customer interests and needs

eCommerce integration and data centralization exercises are opportunities to improve the experience at all levels. So, even if certain features and capabilities are outside the purview of your eCommerce integration exercise, you can include them if they address the pain points of the customers and improve the customer experience.

For instance, loyalty programs are not part of the foundation of an eCommerce website. However, they improve customer experience and reward customer loyalty. So, when you centralize customer data and the data related to product purchases, you can use that as an opportunity to leverage them and implement a well-thought-out loyalty program for your customers. You can identify the features and capabilities that customers want by reviewing typical customer interactions and feedback.

3. Evaluate data flows

When you make centralized data accessible for multiple systems, including ERP, CRM, inventory management, and accounting platforms, they will eventually exchange data and automate various tasks.

For instance, a product sale on your eCommerce site must be reflected in the sales data, purchase history, and inventory data, and should also be available instantly in the CRM so that if the customer contacts the customer support team with some queries, they will be in a position to reply to those queries and solve the particular customer’s issues without delay. So, data related to that purchase is shared with multiple systems in a specific sequence. This data flow pattern across systems must be mapped and the bottlenecks and inefficiencies must be identified and addressed.

For instance, if one of those systems is not updated for a long time, it may lack compatibility and may cause issues in updating data and delays in subsequent processes. Identifying this issue will help you proactively update that system.

4. Define the scope of integration

Clearly outline the scope of your eCommerce integration, considering the key data sets. Ensure alignment with customer data management to provide a seamless experience.

For instance, when you integrate order management, you must define the scope of this process involving order generation, payment processing, shipping, and order fulfillment. Define how order data will flow between the eCommerce platform and relevant backend systems involved in this process, to streamline operations and ensure timely order processing.

5. Choose an integration strategy

Evaluate different integration strategies and select the best approach based on your specific needs and long-term objectives. Some of the factors to consider while selecting an approach include the complexity of data interactions, scalability requirements, and compatibility with existing systems. Choose a strategy that offers flexibility, scalability, and ease of maintenance.

The different approaches in platform integration strategies are:

●      Point-to-point integration, which involves establishing direct connections between individual systems such as the eCommerce platform and the payment gateway to enable data exchange and seamless processing of online transactions

●      Middleware solutions are the intermediaries between disparate systems, facilitating data transformation and communication. For instance, using an enterprise service bus (ESB) to integrate multiple applications allows for centralized data management and simplified integration workflows.

●      API-based integrations, which enable seamless integration between different software applications by defining standardized communication protocols; for example, integrating a third-party shipping service API with an eCommerce platform enables real-time shipment tracking and delivery status updates for customers.

6. Implement integration tools and technologies

Different systems work with different data formats and structures. Making disparate systems work together seamlessly requires intermediate tools and eCommerce data integration platforms such as MuleSoft, Dell Boomi, or Informatica, to orchestrate data flows between eCommerce systems and backend applications that enable seamless data exchange and communication between these systems. Invest in reliable eCommerce platforms and the plugins and extensions offered by them. They help simplify integration with third-party systems and services.

In cases where pre-built solutions are not sufficient, consider custom development to build bespoke integration solutions tailored to your specific business requirements. This may involve developing custom APIs, webhooks, or middleware components to facilitate seamless data exchange and process automation.

7. Collaborate with integration experts

Collaborate with integration experts or consultants who have experience in implementing eCommerce integration projects. Leverage their expertise to design and deploy integrations that meet your business requirements and objectives.

8. Continuously monitor and optimize

Monitor the performance of your integrations regularly and identify areas for optimization or improvement. Implement feedback mechanisms and analytics tools to track key metrics and ensure that integrations continue to deliver value over time.

FAQs

1. What is eCommerce integration?

eCommerce integration is the process of merging diverse data sources, unifying information crucial for business operations, and enabling various business systems to access that centralized data. It synchronizes inventory, sales, and customer data, ensuring seamless functionality and informed decision-making.

2. How does eCommerce use data?

eCommerce relies on accurate data for various business-critical systems and operations, such as inventory management, customer insights, sales, and marketing.

• Inventory management uses data to track stock levels, analyze demand patterns, optimize supply chains, and maintain optimal stock levels at any given time.
• Sales and Marketing systems leverage data to gain insights into consumer behavior, aiding in personalized marketing and pricing strategies.
•  Customer relationship and engagement initiatives use customer data to foster relationship-building through targeted communication and tailored experiences, enhancing retention.
•  Strategic decision-making, from product development to expansion plans, involves employing data analytics to gain insights, make data-driven decisions, and ensure adaptability in the competitive market landscape.

3. What is an integrated eCommerce platform?

An integrated eCommerce platform consolidates diverse functionalities of an eCommerce store like sales, inventory, marketing and customer management, support, and customer engagement into a unified system. It ensures that the eCommerce site built on it has data consistency. It further simplifies operations and facilitates seamless third-party integration.

4. What are the integral parts of electronic commerce?

• Essential components of eCommerce include:
• eCommerce platform on which the store is built on
• Product catalog, pricing, and product descriptions
• Textual and visual content
• Order management system
• Inventory management system
• Customer relationship management (CRM)
• Marketing and advertising channels
• Shipping and logistics infrastructure
• Website design and user experience (UX/UI)
• Analytics and reporting tools
• Customer support and helpdesk
• Returns and refunds process
• Security measures and data protection
• Search engine optimization (SEO) strategies
• Social media presence and customer engagement
• Pricing strategies and promotions
• Legal and regulatory compliance
• Business intelligence and decision-making processes