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Being leaders in the e-commerce and ERP markets, Shopify and Oracle NetSuite are often the go-to platforms for businesses looking to scale. As of 2024, Shopify holds a significant position in the global e-commerce platform market, with a market share of approximately 10.32%. In the United States, Shopify's presence is even more pronounced, with a 28% market share in e-commerce. Meanwhile, Oracle ERP Cloud, which includes NetSuite, holds a substantial portion of the ERP market, accounting for 22% of the global share.
The Shopify NetSuite Integration Challenges
The following challenges are aimed at tech-savvy business stakeholders who want a detailed explanation of why integration is a daunting task. But, to put it simply, Shopify's straightforward -commerce-specific design doesn’t easily align with NetSuite's complex, enterprise-level ERP functionalities.
Despite the popularity of both Shopify and NetSuite, the integration of the two is often viewed as complex and costly due to the scope differences between the two platforms. These claims are not completely unreasonable. Here is why:
Differences in Data Structures and Typing Between Shopify and NetSuite
Shopify and NetSuite differ significantly in their data structures and data typing, which presents challenges in adapting data from one system to the other. Shopify's data model is streamlined for e-commerce workflows, with attributes such as customer details and product SKUs being straightforward and uniform. In contrast, NetSuite supports highly customizable data structures with advanced features like multi-subsidiary inventory management and multi-currency pricing. These differences often lead to data mapping challenges and require careful alignment or extensive customization to integrate the systems properly.
Order and Fulfillment Process Variances
The order and fulfillment processes in Shopify and NetSuite represent distinct approaches tailored to their respective domains. Shopify's model aligns with e-commerce-centric workflows, where an order is treated as a single transaction encompassing all related activities. On the other hand, NetSuite's model is designed to accommodate complex supply chain operations, often splitting a single order into multiple interrelated transactions, such as purchase orders, invoices, and shipping records. These differences in how each system handles orders create the need for significant adjustments to ensure seamless integration and data flow between the platforms.
Multi-Store, Multi-Warehouse, Multi-ERP Setups
Many businesses operate multiple Shopify storefronts (e.g., for different regions or brands). While Shopify supports multi-store setups, NetSuite is often used as a centralized ERP. Consolidating data (e.g., inventory, orders, and customers) from multiple Shopify stores into NetSuite introduces unique challenges:
- Identifying duplicate customers across stores and merging them into one customer record in the ERP system.
- Managing different products and prices for different stores.
- Channel-specific order processing in NetSuite.
- Managing inventory allocation across stores, especially if you have multiple warehouses.
- Prefiltering and processing orders in multiple ERP systems.
Technical API limitations
Shopify API, though effective for e-commerce, lacks advanced features compared to more ERP-oriented platforms. For example, Shopify’s API doesn’t natively support multi-warehouse inventory or complex pricing tiers, which NetSuite handles natively.
Additionally, Shopify has API rate limits (e.g., 4 calls per second), which can become a bottleneck when trying to sync large volumes of transactions in real time.
Product Variant and Inventory Complexity
Shopify supports basic product variants (e.g., size, color), but NetSuite may handle products with more complex attributes or hierarchical inventory structures (e.g., kits, assemblies, or serialized inventory).
Syncing these advanced inventory models with Shopify's simpler approach often requires customization or middleware.
Tax Handling
Shopify and NetSuite have different tax capabilities. Shopify offers basic tax configurations suitable for small businesses or simple tax needs, with third-party integrations like Avalara for more complex scenarios. NetSuite, on the other hand, provides a robust tax engine that supports complex, multi-jurisdictional, and international tax compliance.
Currency Handling
Similarly, Shopify handles multi-currency in a simpler way than NetSuite, which could lead to reconciliation issues during data syncs.
Real-Time vs. Batch Synchronization
Shopify emphasizes near-real-time data updates for orders and inventory, while NetSuite often relies on batch processing for certain workflows. Balancing these differences without overloading either system might also be tricky.
The Best Shopify-NetSuite Integration Solutions
Now that we’ve outlined the main integration challenges and pitfalls, it’s time to look at solutions that claim to seamlessly connect Shopify and NetSuite, though how well they work deserves further scrutiny. Let’s break it down.
iPaaS Platforms
iPaaS Platforms iPaaS (Integration Platform as a Service) software acts as an intermediary to manage and automate data exchange between Shopify and NetSuite. These are often low-code platforms with pre-built connectors. They typically support the synchronization of orders, inventory, customer data, and fulfillment processes. The popular iPaaS platforms that provide Shopify-NetSuite integration are Celigo (Integrat.io), FarApp, and Dell Boomi. Solutions like Celigo and Dell Boomi offer subscription-based pricing models for integrating Shopify with NetSuite, with plans starting at approximately $600 and $550 per month, respectively. These subscriptions typically include access to connectors and integration tools, which are not available for separate purchases. Such pre-built solutions are usually budget-friendly but with limited customization and scalability potential.
NetSuite SuiteCommerce Connector
NetSuite’s SuiteCommerce Connector offers built-in capabilities to integrate e-commerce platforms with NetSuite. While it’s primarily designed for SuiteCommerce, it can also be adapted to integrate Shopify (with some customization performed). This solution facilitates integration with NetSuite's native features like financials, inventory, and supply chain. Since the NetSuite SuiteCommerce Connector is not inherently designed for Shopify, compatibility issues are not uncommon. These might include inventory synchronization and order management challenges, issues with product variants, tax and currency problems, and more.
Custom API-Based Integrations
Using Shopify’s REST or GraphQL APIs and NetSuite’s SuiteScript or SuiteTalk APIs, businesses might be lured into building custom integrations tailored to their workflows. Such custom development may indeed bring flexibility to address unique business requirements —like custom fields, advanced pricing models, or multi-currency transactions— it is quite an overkill in terms of time and financial investment and such initiative rarely pays off. To put that simply, it takes way too much time to implement and maintain.
AtroCore Integration Platform
AtroCore is a free and open-source data integration platform that provides seamless integration between ERP systems, e-commerce platforms, and virtually any other system. It primarily uses REST APIs for integration for real-time data exchange.
AtroCore can provide fully automated, bidirectional data synchronization between NetSuite and Shopify, which can run on a pre-configured schedule or be triggered by specific events. It synchronizes product data, prices, inventory, and any custom data from NetSuite to Shopify, while customer data, order information, and delivery statuses flow back from Shopify to the Netsuite system. Being open-source, AtroCore allows for unlimited customization. Despite these significant advantages, AtroCore requires some basic coding skills for its configuration, therefore businesses without in-house developers require assistance from the AtroCore team.
NetSuite Connector
NetSuite Connector (available in the Shopify App Store) provides out-of-the-box solutions for basic integration needs with Amazon, eBay, Walmart, ShipStation, and more. It facilitates order sync, inventory updates, and customer data synchronization. Shopify NetSuite Connector is affordable (the monthly subscription fee starts at 200$ per month), quick to set up, and claims to be ideal for small to medium-sized businesses with straightforward integration needs. Similar to other pre-built solutions, this connector poses customization challenges. Some troubles with inventory synchronization and order management challenges are also likely.
Key Takeaways
Shopify and NetSuite, leaders in e-commerce and ERP, offer complementary capabilities but differ significantly in data structures, workflows, and technical features, making integration complex. Key challenges include differences in data typing, order processing, inventory models, tax handling, and API limitations. Solutions range from pre-built iPaaS platforms (e.g., Celigo, Dell Boomi) and NetSuite’s SuiteCommerce Connector to custom API integrations and open-source tools like AtroCore. Pre-built solutions are cost-effective but limited in customization, while custom integrations offer flexibility but are resource-intensive. The choice depends on business complexity and integration needs.