Ecommerce businesses face many challenges in today’s digital world.
One of the biggest is integrating multiple, disparate software systems.
Successful ecommerce brands are built on a dizzying array of selling channels including online sales channels, brand-owned websites and retail locations. Each often has its own way of managing data
Fulfillment options may include your own warehouses and DCs, 3PLs, channel fulfillment options like Amazon FBA or Walmart WFS, retail pickup, drop shipping and last-mile strategies such as micro-warehousing or dark stores. And each of these may have unique order, inventory and warehouse management platforms.
Plus everything needs to work with your legacy systems, supplier systems and support services such as shipping carriers.
All these trading partners need to be integrated into an ecommerce tech stack to create a reliable, stable ecommerce ecosystem.
This is where Integration Platform as a Service (IPaaS) solutions come in.
Sort of…
IPaaS platforms help businesses connect various applications, streamline operations and improve overall efficiency.
However, none of the leading IPaaS solutions out there were ever designed for the rigors of ecommerce.
And that’s a problem. Let’s explore why a purpose-built ecommerce IPaaS platform are a better choice for ecommerce brands and the 3PLs that serve them compared to traditional IPaaS solutions.
What is IPaaS?
IPaaS stands for Integration Platform as a Service. It’s a cloud-based service that connects different software applications. IPaaS allows businesses to manage data integration without needing to build and maintain the integration connections themselves. This makes it easier to sync data across different platforms, automate workflows and improve business processes.
Why is IPaaS Important for Ecommerce?
Ecommerce businesses use many different software tools. These tools include online shopping carts like Shopify; specialized order, inventory and warehouse management platforms; customer relationship management (CRM) systems; enterprise resource planning (ERP) systems; and more. Each tool generates and uses data from the others.
And it gets more complicated once you start selling beyond your own online store. Sales channels such as Amazon, Walmart, Wayfair and the online business from traditional retail customers add another layer of complexity. They all have their own integration specifications and requirements, along with ways they categorize data for product listings and reporting.
Managing this data can become a nightmare.
Traditional ways of handling these integrations include native software integrations, point-to-point integrations or other custom-coded integrations. These approaches are structurally rigid – they may work at first but may fail without warning when something unforeseen changes in the partner’s system. They are tough to document and support and impossible to scale. And they can be a huge drain on already scarce IT resources.
IPaaS helps by connecting these systems, making data flow smoothly between them. Adding, modifying or removing trading partners becomes much more systematic and predictable and much less resource intensive.
The Benefits of Using IPaaS for Ecommerce
At first glance, traditional IPaaS solutions appear to be a great fit for ecommerce operations. IPaaS providers claim their solutions:
Centralize Data Integration: IPaaS platforms bring all your data into one place. This makes it easier to manage and access information across various applications.
Automate Workflows: These platforms automate repetitive tasks. This saves time and reduces the chance of human error.
Reduce Manual Data Entry: By automating data transfer between systems, IPaaS minimizes manual data entry. This leads to fewer mistakes and a more streamlined process.
Enhance Data Accuracy: Automated data flows ensure that information is consistent across all systems. This improves data reliability and decision-making.
To some extent, these claims are true.
But the devil – as anyone who has actually done ecommerce integrations will remind you – is in the details.
The Downside of Generic IPaaS Solutions
While IPaaS platforms offer many benefits, generic solutions may not always be the best fit for ecommerce businesses. Here are some potential downsides:
Limited Connectivity Options: Most IPaaS vendors claim to speed up ecommerce integrations by using pre-built connectors. But they often only offer connectors for the most popular ecommerce platforms like Amazon and shopping carts like Shopfy or Big Commerce. Developing integrations for other endpoints like 3PLs, shipping software, WMS or other legacy systems, and niche-specific sales channels like Wayfair or eBay Motors is a chargeable development project.
API Dependence: IPaaS vendors tend to do a respectable job at integrating systems through APIs. But a large number of retailers still use older technologies like EDI and even flat-files that API-centric vendors may struggle to handle.
Limited Tool Sets: A few IPaaS vendors claim to offer ecommerce order processing and inventory management capabilities. These capabilities tend to be rudimentary and not at anywhere near the level needed to handle complex ecommerce functionality such as order splitting, back orders, returns, pricing and repricing, distributed order and inventory management, cartonization, rate shopping or regional shipping templates. Commerce fulfillment is expensive – sometimes running to as much as 70% of the total delivered product cost. It’s technologies like these that help reduce fulfillment costs, boost margins and make ecommerce profitable. But generic IPaaS solutions don’t have them.
Sure, you could integrate another dedicated order and inventory management platform into your tech stack. But that’s one more integration to manage and one more bill to pay every month.
Lack of Fulfillment Options: Fulfillment options support by traditional IPaaS systems (if any)usually focus on traditional fulfillment options such as shipping parcels from a warehouse with your WMS or – with luck – a 3PL. Modern ecommerce shoppers (and sales channels) often demand more options including Buy Online Pickup In Store (BOPIS), retail drop shipping or expedited shipping involving multiple fulfillment locations such 3PL and 4PL networks. Traditional IPaaS just can’t handle it.
Limited Reporting: Ecommerce is a business built on data. And that data is coming from multiple sources such as sales channels, 3PLs and other fulfillment options; suppliers such as shipping carriers; specialized software tools such as Product Information Management Systems or fitment software; and WMSs and other support systems. And each of these ecosystem partners may have its own way of categorizing and reporting data – which needs to be aggregated and normalized to be used for forecasting, troubleshooting and reporting. IPaaS systems will report on the health of your integrations. But to actually put this data to use may require integrating yet another third-party platform.
Lack of Scalability: Often, traditional IPaaS vendors just aren’t able to handle the sheer amount of data generated by an ecommerce business…and the need to support sudden data spikes during holidays, events like Amazon Prime days, or unexpected social media exposure.
Fragmented Support: IPaaS isn’t ecommerce smart. It’s built to push data from one system to another. Have an order or fulfillment problem? A sales channel issue? A workflow automation challenge? You’ll need to open up the various connected applications or contact their support operations. Your IPasS vendor probably won’t be able to help.
High Cost: The pricing for generic IPaaS solutions can be high, especially for small and medium-sized brands or 3PLs. Generic IPaaS solutions may lack the flexibility needed for specific ecommerce processes. This can result in limited customization options and may require additional development work. Costs can add up quickly with the need for additional connectors or features, or the expense of adding another order and inventory management system to actually use the data.
Etail is the Ecommerce IPaaS Solution
Etail Solutions offers a specialized integration platform designed specifically for ecommerce businesses. Unlike generic IPaaS solutions, Etail Solutions focuses on the unique needs of online brands and the 3PLs that serve them.
Extensive Integrations: Etail Solutions provides integrations specifically designed for ecommerce, covering all major platforms and tools used by online retailers. Etail also is designed to work with your legacy systems – without the need to “rip and replace” them. Custom integrations are also available – and affordable.
Data Flexibility: Etail handles APIs, EDI and flat files and is designed to integrate, aggregate and normalize data from throughout your trading partner ecosystem.
Ease of Use: The platform is designed to be user-friendly, making it easier for businesses to set up and manage integrations without extensive technical knowledge.
Comprehensive Tool Suite: Etail offers a fully integrated suite of ecommerce order, inventory and fulfillment management tools along with a native product information management tool, repricing tool, and reporting and analytics suite. Advanced features include cartonization, distributed inventory and order management, and regional shipping templates with real-time carrier rate shopping. Etail not only integrates your ecommerce ecosystem; it provides the tools you need to manage it with a focus on maximizing consumer satisfaction and increasing your bottom-line profitability.
Scalability: Etail Solutions can scale with your business, handling increased data volumes and transaction loads as your business grows. One large Etail customer, for example, manages nine million SKUs on 100 million listings in 20 different channels around the globe. They add 10,000 new listings a day while processing 20-30,000 orders and repricing their inventory 1 million times an hour. All through the Etail IPasS platform.
Expert Support: Etail provides dedicated support to help clients navigate the complexities of ecommerce integration and ecosystem partnerships, ensuring smooth and efficient operations. They aren’t just software integration geeks (although we have plenty of them). They are experts in all aspects of ecommerce order, inventory and fulfillment operations.
Implementing IPaaS for Ecommerce
IPaaS platforms play a vital role in the success of ecommerce businesses. They help streamline operations, improve data accuracy, and enhance customer experience. However, it’s important to choose the right platform for your needs. While generic IPaaS solutions offer some benefits, they may not always be the best fit for ecommerce businesses. Specialized platforms like Etail Solutions can provide tailored integrations, ease of use, scalability and comprehensive support, making them the right choice for online retailers, brands and 3PLs.
Additional resources
ETAIL PLATFORM OVERVIEWS
WHITE PAPERS
Mastering Ecommerce Integration: Bridging Legacy Systems & Cutting Edge Solutions
BLOG POSTS
Streamlining Ecommerce Integrations: Integrating legacy systems with modern solutions
Future Proofing Ecommerce Operations: Three strategies to thrive in an unpredictable future
Siloed Data and Spreadsheet Olympics: Taming data silos and dis-integrated systems
CASE STUDIES
Evenflo: Conquering Legacy System Challenges, Empowering Online Sales
