API in E-Commerce

Attract more customers and increase order value.

August 14, 2019 | 3 Min.

Author: dataliquid GmbH

APIs are breaking new ground for online commerce, a change that is having a particular impact on consumers and traders. Online shops are highly innovative and respond flexibly to customer requirements. E-commerce functionalities can be considerably expanded through intelligent interfaces. What was difficult to program a few years ago is now done by the electronic interface with a few embedded lines of code.

What is an API specifically?

API stands for "Application Programming Interface". It connects different applications and controls data exchange. The best known is probably the Google API, which makes it possible to embed interactive maps in websites. Such an interface maps all processes required for electronic commerce and controls them across platforms, e.g.:

  • Retrieve product data

  • Shopping cart functions

  • Payment functions

  • Delivery processing

  • Pre- and after-sales measures

A trigger for the development of APIs for the e-commerce market is the rapid increase in the number of possible channels and devices available to consumers. In the end, all systems communicate via these interfaces and speak a "unified language".

What opportunities are offered by the use of e-commerce APIs?

APIs are connections between systems and applications, and the direct channels to customers and markets. Touchpoints are created on the basis of secure data exchange, the marketplaces of the companies are combined as one system. Completely new business opportunities are emerging. APIs provide flexibility and innovation. New end devices can be integrated without problems, new sales channels can be created. Changes in the market environment are responded to quickly and correctly.

From virtual reality glasses to Smartwatch and Wearable to cars: any device can connect to the e-commerce application via API. This allows shopping experiences to be created. Independent of the end device, through the intelligent combination of functionalities across all channels.

What options are available to digital commerce through APIs?

The development is currently rapid, new providers with innovative APIs are coming onto the market almost daily. The core strategy behind this is that the e-commerce provider can see in advance what services and products the potential customer wants. He can now provide the relevant content and trigger the buying process anywhere on the websites and social channels. This can vary from location to location and enables spontaneous product adaptations.

  • Distributed trade channels: customers buy from anywhere. Whether on the mobile device, via social channels or in stationary branches. The purchase offer can be personalized as required with open APIs.

  • Multi-site management: country-specific pages only require an administrative environment. The architecture accesses identical processes and catalogs defined in the backend and makes them available adapted to the needs of the user in the frontend. The maintenance effort for multilingual websites and e-commerce applications is minimized.

  • Predictive Recommendations: Increase sales with product recommendations. The personalization of the shopping experience increases the chance of additional sales. Relevant products matching the search are offered on the various channels (mail, web, social media).

  • Order management: In addition to the physical channel, there is now the digital channel, which offers a complete overview. Customer profiles, orders, inventory data, products, special offers, ordering, purchasing and payment behavior are available at a glance and are available for order processing.

Summary and conclusion

E-Commerce knows a lot of new triggers: social media, voice, smart home, smart car, to name just a few. They combine these triggers and ensure that the purchase can be triggered immediately at any time from all end devices. Existing systems can be connected and expanded using APIs. In times when markets are changing rapidly, often no stone is left unturned, APIs allow retailers to keep their doors open, react coherently and quickly.