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3 Effective Ways You Can Integrate Shopify with NetSuite

Integrate Shopify with NetSuite because you need to have visibility on your data to make better business decisions.

Now, doesn't that sound great? Having one place where you can see all of your sales, inventory, discounts, gift cards, and taxes all managed from one single source of truth?

Most Shopify Merchants do not realize how much it is costing them to operate with siloed information and how much it is holding back their business. And while having an integrated ERP like NetSuite is an important investment in your business, so is ensuring that NetSuite is integrated with all of the important pieces of your business, like Shopify and Shopify Plus.

Without proper integration and technical architecture, you will not be reaping the full benefits of the solutions you've implemented.

Ask yourself these questions

  • How much manual work are you doing between Shopify and NetSuite?
  • Are you able to efficiently reconcile Shopify and NetSuite?
  • Are your sales taxes being collected accurately in NetSuite? Are they the same as were collected in Shopify?
  • Do you have all your customer data in NetSuite? Is it synced with Shopify?
  • Are you able to easily update pricing for your products in NetSuite and Shopify? Are you able to easily sync them?
  • Are you able to easily track refunds and cancellations from Shopify to NetSuite? Do you have the visibility you need to make the business decisions you need to make?
  • Are you out of stock or overselling on Shopify?
  • Are you still using spreadsheets to manage a part of your business relating to Shopify and NetSuite?

Most of the Shopify Merchants are experiencing problems with most or all of the questions mentioned above. And really, are you able to focus on your customer if you're experiencing those pain points?

Why you should integrate Shopify with NetSuite

Integrate Shopify with NetSuite to really be able to take care of your customers. Integrating benefits both you and your customer.

First, let's talk about what integration between systems is. Integrating two systems is the process of linking two systems together into a single larger system that functions as one. Specifically, with regards to software solutions like Shopify and NetSuite, it is the process of linking them together to enable them to functionally work together.

The main reason to integrate Shopify with NetSuite is to improve the productivity and quality of your operations. Through the integration, the goal is to also speed up informational flows and reduce the operational costs of your business.

And when integration saved you time and money, you get to focus on what really matters - your customers.

How it helps your customers

In addition to helping your business save time and money, how does it help your customers?

Your customers can see when you have a backend that runs smoothly. You'll be able to deliver a consistent and efficient customer experience with (but not limited to) the following:

  • Inventory levels
  • Shipping and receipt dates
  • Pricing updates
  • Financial reporting
  • Targeted marketing
  • Enhanced and timely customer support

Your customers will show their appreciation by buying from you again and again. Not only that, but you will gain the trust of your customers by offering effective, consistent and timely customer service. It will give you the edge you're looking for over your competitors who are still operating with siloed software and who haven't invested in their business to integrate Shopify with NetSuite.

Three ways to integrate Shopify with NetSuite

*You can also read about the three ways to integrate Amazon with NetSuite here. The three options presented in the Amazon article are the same three options available to you from a technical perspective.

There are three options to integrate Shopify with NetSuite, all of which have their pros and cons.

  • Custom-Built Integration
  • Integration Application
  • Integration Platform as a Service

Custom-built integration

Building an integration to be custom for your business requires serious technical knowledge. It involves using the NetSuite and Shopify API and writing custom code to connect both systems together. This kind of integration is not something you want someone to be learning on the job.

A custom-built integration is usually an option Merchant's like to entertain as it seems like it would make the most sense. The most common reasons we hear are:

  • It is a one time cost
  • It doesn't seem that complicated
  • I can have it do exactly what I need it to do

Having said that, here are the facts based on our experience:

  • It is a one time cost: No it is not. You must maintain the integration as the NetSuite and Shopify platforms evolved. Due to the inflexible nature of the integration, if you do any customizations in either platform, be prepared to pay to have the integration reflect the new changed.
  • It doesn't seem that complicated: This method of integration is the most complicated of the three.
  • I can have it do exactly what I need it to do: Yes, this is technically correct. If you are willing to invest then it can do what you need it to do. Keep in mind the aforementioned points when having a heavily customized integration.

Our take: It is very rare that the cost will justify creating a custom integration with Integration Applications and Integration Platforms as a Service available. This type of integration (which used to be common) is to be used in very specialized circumstances.

Integration Application

Some vendors offer integration application solutions. This type of solution is usually tailored to a specific function. In this case, to integrate Shopify with NetSuite. They are designed to only be used between two systems and offer to synchronize data like inventory, orders, products, and customers.

In the case of an Integration Application, there is no hub between your systems. There is only a point-to-point integration that has been productized for a specific purpose. You must choose one of the two systems as your "master" to manage each type of data. Data is sent "as-is" between systems without any transformation.

These types of solutions usually sync in "batches" meaning every hour or even once or twice a day.

Having said that, they are very affordable solutions and work best for small retailers with a small budget with small data volumes. These will get you up and running quickly with integration to leverage the power of integrating Shopify with NetSuite and to alleviate some of your operational pain points.

For growing retailers though, these kinds of solutions have major shortcomings. They are not as flexible as an iPaaS (Integration Platform as a Service) in adding new sales channels or managing multiple systems are your business evolves. Each new system requires you to add new connectors.

If your business is growing quickly, choosing this type of integration will require completely redoing your systems architecture in the near future using an iPaaS.

Our take: For small retailers with a consistent sales volume year over year and a simple technical architecture, Integration Applications are a good fit. For growing retailers, skip this type of integration and move on to the iPaaS directly. The investment will be worth it as your business grows.

Integration as a Platform

To integrate Shopify with NetSuite using an iPaaS means using a cloud-based, hosted, middleware integration platform that sits between NetSuite and Shopify. These types of integrations can be referred to as hub-spoke integrations or horizontal integration.

Ideally, the iPaaS chosen already has pre-built connectors for Shopify and NetSuite and any other system you would like to integrate (for example, ADP for Payroll, Amazon, etc.).

However, unlike Integration Applications or Custom-Built Integrations, these iPaaS platforms are configurable meaning they can be customized or changed to accommodate your business requirements.

You can define rules about how your data moves between systems and allows greater control over the flow of data.

This integration approach is usually quite flexible and allows us to easily add and configure additional connectors that integrate with the hub. This way, you can also update and change your data flow as your business grows.

This solution is, generally speaking, the pricier of the three because it is essentially a platform that allows you to integrate not just Shopify with NetSuite but also other potential systems in the future.

It allows for greater flexibility and grows as your business grows with you. Expect to pay a monthly subscription fee for access to this kind of platform.

Our take: We recommend getting an iPaaS, especially if you are growing and have other systems that would be connected in the future. The iPaaS provider invests in their product and rolls out automatic updates so you always have the latest and greatest. The platform requires minimal maintenance so requiring help to reconfigure is reduced. It is easier to set up initially than a custom integration, and about the same as an Integration Application. Additionally, the price gap between an iPaaS and the Integration Applications is reducing as time goes and iPaaS solutions are becoming more and more common and easy to use.