A Case for Integration Across Global Retail in 2024-2025

eCommerce has exploded over the past few years, with global online sales projected to reach over $8 trillion USD in 2027 (Statista ). Consumer expectations have risen just as sharply. Customers are now demanding speed, accuracy, and transparency through the entire stage of their online shopping experience. For retailers, this surge brings a double-edged sword of opportunity and challenge. How do we manage rising consumer demands, without the pitfall of exponential cost and complexity? Integration consistently has the answer. Each part of your operations needs harmony, so your business can deliver a smooth experience – from consumer discovery, to order selection and purchase, to delivery and beyond.

Challenges Facing Global E-commerce Today

2024 has delivered a unique macroeconomic pressure to the eCommerce landscape. Inflation, whilst finally slowing in many markets, has driven up operational costs worldwide. Fluctuating exchange rates create an added layer of complexity to the problem of profitability and economic sustainability. This is particularly an issue for retailers relying on imports and exports (World Bank ). Resulting cost of living challenges are causing consumers to be more cautious with their spending, prioritizing essentials only. Consumers are therefore typically much more reasoned with their purchasing (Deloitte ). Despite these pressures, eCommerce remains a key driver of global retail growth. Over 20% of all retail sales are projected to take place online by the end of 2024 (Statista ). However, the demands have intensified for retailers to provide seamless shopping experiences.

Research shows that nearly three quarters (73%) of online shoppers are more likely to return to a brand if the returns process is straightforward (Narvar Consumer Report ). However, the same study listed two thirds of consumers (66%) were unsatisfied with the returns processes offered by most retailers. On top of that, order fulfilment is becoming more expensive. In the United States, average fulfilment costs have risen by 14% since the turn of the pandemic, and have not returned to pre-pandemic costs (McKinsey ). Given this, many retailers have turned to back-end integration to streamline their eCommerce storefronts. This includes ERP (Enterprise Resource Planning) and WMS (Warehouse Management Systems) to streamline processes, lower operational costs, and meet customer expectations.

The Shift to Full Integration

As competition intensifies, global retailers are moving towards full integration of their technology stacks. In 2024, we are seeing companies rapidly shifting away from standalone systems, to embrace more unified platforms. When systems like Shopify and NetSuite are connected with your WMS, you can gain real-time visibility over inventory, order status, and returns (IEEE ). ?This "single source of truth" approach enables companies to respond quickly to customer needs and adjust to supply chain disruptions, an advantage in a time when agility is crucial.

Consider iPaaS (Integration Platform as a Service) tools, which can act as the central hub connecting systems. This iPaaS can facilitate orders placed on a platform like Shopify to seamlessly flow into an ERP like NetSuite, for back-office processing. This seamlessly pushes orders into a WMS for fulfillment. This setup not only minimizes manual data entry, but also ensures that data remains consistent across platforms, so every department is working with accurate, up-to-date information. This kind of agility is invaluable in a world where consumers expect real-time updates on their orders and quick, hassle-free returns.

A Scenario Highlighting the Pitfalls of Disconnected Systems

Let’s consider a common scenario. A global retailer runs a high-profile online sales event, driving a massive increase in orders; much like the sales we'll see in November and December. The event is a success, but it’s quickly followed by a wave of returns – a typical outcome in the e-commerce world, where return rates can be as high as 30% for some categories (Mailmodo ). Without an integrated system, each return becomes a bottleneck, with various teams handling returns, refunds, and inventory adjustments separately.

The finance team struggles to reconcile transactions because the sales, warehouse, and accounting systems are siloed, leading to delays and inaccuracies in refunds. Meanwhile, the customer service team is flooded with inquiries from customers waiting for their refunds, but they lack real-time information on order statuses. A few delayed refunds might seem manageable, but when hundreds of customers are affected, it becomes a reputational risk and a drain on resources.

The Solution: Integration as a Foundation for Efficiency and Customer Satisfaction

For retailers facing these challenges, a fully integrated solution between e-commerce, ERP, and WMS platforms can turn things around. Here’s how:

1. End-to-End Order and Returns Management: By connecting Shopify (or another e-commerce platform) with NetSuite (or another ERP), every order flows seamlessly through the system, from purchase to fulfillment. The ERP manages back-end processes like invoicing and inventory, while the WMS takes care of packing and shipping. This setup not only cuts down on manual inputs but also provides all departments with real-time access to accurate information, reducing delays and minimizing errors.
2. Automated Refund and Returns Processing: With refunds integrated directly through the e-commerce platform and into the ERP, refunds are issued and tracked automatically, which means no manual backlog for the finance team. This reduces the administrative burden and ensures customers receive their refunds quickly – a crucial factor for customer satisfaction.
3. Real-Time Data and Transparency: With the iPaaS at the center, data flows consistently between systems, from sales to inventory to customer service. Customer service teams gain immediate access to real-time order and inventory statuses, allowing them to respond to customer queries instantly. Inventory and order statuses are always up-to-date, reducing the risk of overselling or running out of stock.

This level of integration not only optimizes internal efficiency but also elevates the customer experience by ensuring order accuracy and providing timely updates. In a global market where customers have plenty of alternatives, operational efficiency and customer satisfaction are non-negotiable.

The Takeaway: Harnessing Integration for a Competitive Edge

For retailers across the globe, operating with disconnected systems and manual processes is simply unsustainable. A robust, fully integrated ecosystem allows businesses to streamline their operations, cut down on unnecessary costs, and provide a customer experience that keeps buyers coming back. At United Techno, we help global retailers unify their e-commerce platforms, ERP systems, and WMS to create a seamless flow of information and a smoother customer journey.

If your e-commerce operation feels clunky, with disconnected systems slowing you down, United Techno can help . Reach out to explore how our integration expertise can empower your team to achieve greater efficiency, lower costs, and higher customer satisfaction. Let’s make your e-commerce operations as agile and connected as the modern market demands.