eCommerce Data Integration: What and Why

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eCommerce Data Integration: What and Why

Sep 12, 2022

The internet has completely revolutionized the way we do business. Not very long ago, online shopping was a way to find niche goods that you couldn’t find at your local store. International goods and books were the most popular products on the internet at this time. Fast forward to today and you can find just about anything under the sun on the internet. An advanced supply chain made it possible to find anything from groceries to home decor online, and have it delivered to your house in a few days. One of the major contributors to eCommerce’s success is eCommerce data integration. In this blog post, we’ll define eCommerce data integration and detail why it is important for online businesses.

What is eCommerce Data Integration?

eCommerce data integration is the process of aggregating any business relevant data from multiple sources into one centralized location. This may sound complicated but it’s actually pretty simple to understand when applied to an example. Let’s take the case of a hypothetical eCommerce business that specializes in selling shoes. This business has to handle an immense amount of data in order to be successful. The company needs to track the number of each shoe style that is in stock, the prices of each style of shoe, delivery information, and customer information. Furthermore, all of this information will likely be stored in different databases, making it inefficient to access. Investing in eCommerce data integration would allow this company to access all of this information in one centralized location, making it easier to search through and make strategic decisions. 

Why is Data Integration Important for Online Businesses?

So now that we understand what eCommerce data integration is, how does it benefit online businesses? There are actually a few different ways that data integration can support business growth. The first is by entirely removing the need to enter data manually. As previously mentioned, data integration automatically stores any business relevant data in a centralized location. Additionally, data integration software is incredibly accurate when dealing with large amounts of information. This means that your business data will be more accurate because there is no chance of human error.

Data integration also allows you to optimize how you spend your time at work. This is because simple functions such as sending your customers notifications about their purchases are automated. With data integration, you can stop wasting time doing tedious work and spend more time focusing on more important tasks. Data integration also makes it easier to compare data across a period of time so that you can identify trends in the market.

4 Key Takeaways

  • Data Integration is Expensive

Data integration is incredibly complicated and requires specialized knowledge to set up. And the cost of integrating all of your business’s data will only get more expensive the more data there is to integrate. Data integration can sometimes cost several thousands of dollars to get started and will require even more investment to maintain and update. But these expenses are clearly worth it, as made apparent by the number of businesses that continue to invest in data integration. The additional revenue generated after integrating your business’s data will generally outweigh the costs within a few years. 

  • Data Integration Takes a Long Time

It can take a long time to properly set up eCommerce data integration. This is because the developer will need to learn the platform logic and architecture before they can even begin implementation. Additionally, there might be friction between the product and system that needs to be smoothed out before the system is up and running as it should be. You should expect data integration development to take 4 to 12 weeks on average.

  • Data Integration Enables Shipping Management

One of the most important aspects of running an online business is the shipping services you offer and the prices accompanying them. With data integration, you can more effectively create shipping labels and automatically update customers on their orders’ status. But data integration doesn’t just simplify the shipping process. It also makes it easier to manage the inventory of your warehouse so that you can ensure you always have accurate information to act on.

  • Data Integration Enables Email Marketing

Though you may already have invested in some form of email marketing strategy, data integration can take it to the next level. Firstly, many email marketing campaigns can be completely automated. For instance, many data integration softwares can automatically send out emails targeted directly at customers who have abandoned their cart before finishing their transaction. This provides business owners with an entirely automated method of increasing revenue.

Meet The Author:

Nick Rojas

Nick Rojas

Nick Andrew Rojas is a business consultant turned journalist who loves working with small and medium-sized companies. He has contributed to many publications such as Entrepreneur, TechCrunch, and Yahoo. In his spare time, he hangs out at the beach with his dog Presto.

The opinions expressed in our published works are those of the author(s) and do not necessarily reflect the opinions of the National Association for the Self-Employed or its members.

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