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API Integration Overview: What is API Integration?
August 25, 2025
Many businesses rely on multiple software tools to manage their operations. These systems often cover areas like sales, inventory, finance, or customer service. When the tools are not connected, teams may need to transfer data manually, which slows down processes and increases the risk of errors. API integration connects systems directly, allowing them to share data automatically, work more efficiently, make informed decisions faster, and reduce the friction that comes from working across disconnected platforms.
An API integration links different software applications using Application Programming Interfaces (APIs), allowing them to communicate and share data. Communication using APIs is often in real-time, while being automated and structured to cut out manual input and keep systems synchronized.
APIs are essential for building scalable, automated digital ecosystems for connecting internal applications like ERPs and CRMs or external platforms like payment gateways or shipping providers. As businesses increasingly rely on the digital ecosystem of supply chain partners, eCommerce and marketplaces and interconnected platforms, API integration has become essential for operational efficiency, data visibility, and digital agility.
• APIs act as communication bridges between software systems.
• They enable real-time feedback and visibility, automated exchange of data and functions.
• APIs are vital for scalability, automation, and digital transformation.
Types of APIs
There are several types of APIs designed for different technical and business needs.
RESTful APIs are common, using HTTP and typically JSON for lightweight, human-readable data exchange. Ideal for web and mobile apps, JSON is easy to parse and supported by most modern languages.
SOAP APIs are more rigid and structured, often used in legacy or enterprise systems. They rely on XML, which supports strict data validation and complex structures.
GraphQL APIs allow clients to request exactly the data they need via a single endpoint. Like REST, GraphQL typically uses JSON for data formatting but provides more query flexibility.
TrueCommerce offers Exchange API, which is an API integration explicitly designed for connecting systems like ERPs, WMSs, and marketplaces. This hybrid approach uses secure file transfers wrapped in API-driven workflows for partners that don’t support direct API integration.
• REST, SOAP, and GraphQL APIs serve different integration scenarios.
• System-to-system APIs connect ERPs, ecommerce storefronts, marketplaces, and logistics tools.
• Exchange API enables secure file-based data sharing through API interfaces.
Read More:
How TrueCommerce API Integrations Deliver Real-Time Supply Chain Connectivity
Main Components of API Integration
Components of an API integration include several important pieces that handle data routing, security, and transformation. Endpoints are the defined locations where data is accessed, pushed, or pulled. Authentication mechanisms like API keys, OAuth2, or JWTs ensure secure access.
Gateways act as intermediaries that manage traffic, apply policies such as validation, rate limiting and throttling, and enforce security protocols. Data mapping tools translate data between different formats or schemas used by connected systems, which is especially important when integrating ERP, EDI, or legacy applications.
• Endpoints define where and how APIs interact with data.
• Authentication ensures secure access to services and data.
• Gateways manage traffic, security, validation, and transformation layers.
Understanding the core components of an API integration, such as endpoints, authentication, gateways, and data mapping, is essential to building reliable and secure connections between systems. Each element plays a role in ensuring that data flows efficiently, remains protected, and arrives in a usable format. When these pieces are implemented thoughtfully, businesses can create scalable and maintainable solutions that support seamless connectivity and improve overall operational performance.
Benefits of API Integration
API integration delivers significant business and technical advantages, including increased speed, reduced manual work, and improved accuracy. Real-time automation accelerates decision-making and customer response while minimizing the delays and risks associated with manual data entry. Integration enables scalability, allowing businesses to connect new applications quickly. API integration also provides enhanced visibility and traceability across systems, enabling teams to monitor processes, track performance, and identify issues faster.
In addition to these benefits, API integration gives businesses the flexibility to create solutions that reflect their internal processes. Teams are able to design workflows and data connections that align with how they operate, rather than adjusting to rigid, one-size-fits-all platforms. Organizations can choose how to implement and interact with APIs based on their downstream needs, enabling greater control over system behavior, data flow, and adaptability.
• Automated data transfer and reduced human error
• Enhanced system scalability and partner connectivity
• Real-time insight into transactions and performance
If you’re new to these document types, you can learn more in our guide to EDI documents and EDIFACT messages and their uses to learn more.
Read More:
The Business Benefits of API Integration: Unlocking Efficiency and Agility
API Integration Process
The API integration process starts with gathering requirements and establishing business needs and technical specifications. Next comes design and development, where endpoints, authentication methods, and data mappings are configured. Once these phases are complete, testing ensures the integration works reliably and securely, covering use, performance, and edge cases. Once tested, the integration is deployed and monitored continuously.
Platforms like TrueCommerce simplify this process through prebuilt connectors and managed services, reducing time to value.
• The API integration process combines planning, development, testing, and deployment stages.
• The process requires the secure setup of endpoints and data transformation logic.
• Ongoing monitoring and maintenance are vital for ensuring long-term reliability.
API Integration Steps
- Define integration needs
Start by figuring out your integration goals, like syncing orders or updating inventory, and which systems you’re connecting (ERP, WMS, marketplace). Know how often data should move, how much, and in what format (JSON, XML, CSV). - Pick the right API type
REST works for modern systems and uses lightweight JSON. SOAP works well with legacy systems and uses structured XML. GraphQL gives you more control over data queries. If direct APIs aren’t an option, hybrid approaches like TrueCommerce Exchange API use secure file transfers wrapped in API workflows. - Read the API docs and set up authentication
Check the documentation for endpoints, data structure, and error handling. You’ll need to implement authentication, usually API keys, OAuth2, or JWTs. For file-based transfers, you’ll also need SFTP or AS2 credentials.
At this point, you’ll want to double-check your security considerations. Security in API integration is critical due to the sensitive nature of data being exchanged across platforms. Best practices include using secure authentication like OAuth or JWT, encrypting data in transit via TLS/SSL, and employing API gateways to control access and monitor traffic.
TrueCommerce and cloud providers like AWS enforce enterprise-grade security standards, including SOC 2, HIPAA, GDPR, and PCI compliance. Implementing Role-Based Access Control (RBAC) and regular token rotation further enhances protection.
• Use secure authentication and encryption protocols
• Monitor activity with logs, alerts, and anomaly detection
• Follow industry compliance standards (e.g., SOC 2, HIPAA) - Build and map the integration
Create the API calls to push and pull data. You may need to map fields between systems or convert data formats like XML to JSON. Use the correct HTTP methods (GET, POST, PUT, DELETE) for each operation. - Test thoroughly
Use a test environment to simulate both success and failure scenarios. Check that data is accurate, well-formed, and flows as expected across systems. - Go live and monitor
Deploy your integration and monitor traffic, response times, and errors. Set up logging and alerts, and add retry logic for handling temporary failures. - Maintain and adapt
APIs change over time, so update your integration as needed. Rotate credentials, adjust field mappings, and keep everything aligned with your business processes.
Common API Use Cases for Supply Chains
APIs connect the systems that run commerce, operations, and customer experience. In supply chains, this means faster order flow, fewer errors, and clearer delivery promises. Use the sections below to guide buyers through the highest impact use cases.
What are API use cases in the supply chain?
An API use case is a repeatable way to link systems so a task completes without manual work. Think importing orders, printing labels, sending delivery updates, or reconciling refunds. Learn more about our API Integration offerings.
Commerce and order lifecycle
APIs sync storefronts and marketplaces with ERP and fulfillment so product data, prices, promotions, orders, and returns stay aligned. Clean flows reduce cancellations and split shipments while speeding the time from purchase to pick. If you sell online, read more about our Shopify integration.
Payments and refunds
Payment APIs confirm charges, issue refunds, and handle disputes with clear status updates finance can reconcile. Reliable processing protects cash flow and prevents accidental double charges.
Inventory, product data, and fulfillment
APIs keep stock counts and item details consistent across channels and locations. Near real-time updates and strong attributes prevent overselling and reduce returns caused by poor information.
Inside the warehouse, APIs connect picking, packing, and shipping. Systems share pick progress, confirm carton contents, and create shipments at the right moment, which shortens click-to-door times.
Shipping, labels, and tracking
Carrier and TMS APIs handle rate shopping, label creation, manifests, and end-to-end tracking for parcel and freight. Normalized events and automatic alerts improve visibility and speed exception handling. Find our page on EDI 214 Transportation Carrier Shipment Status Message for more details.
Common API Integration Challenges
Despite their benefits, API integrations can be challenging. One common issue is version management, where changes to an API may break functionality if not appropriately handled. Data transformation across systems with differing schemas also requires careful mapping and testing. Some partners may lack API support altogether, requiring hybrid solutions. These challenges can lead to delayed projects or data inconsistencies without proper planning and governance.
• API changes can disrupt integrations if not appropriately versioned.
• Mapping data between diverse systems is complex.
• Legacy systems may require hybrid or file-based solutions.
API Integration Best Practices
Understanding and implementing best practices ensures your API integrations are resilient, secure, and easy to manage. Use modular, reusable APIs to speed up development and minimize duplication. Implement versioning and lifecycle policies to handle changes gracefully. Use API gateways to enforce policy, manage access, and monitor traffic. Documentation and sandbox environments help partners and developers test and adopt APIs faster, improving reliability across your integration ecosystem.
- Design reusable, modular APIs with clear documentation.
- Enforce version control and lifecycle management.
- Use gateways for access control, throttling, and monitoring.
API Integration FAQs
APIs offer real-time communication over HTTP, while EDI uses standardized document formats exchanged in batch through protocols like AS2 or SFTP.
Many trading partners still rely on EDI. A hybrid approach allows businesses to support both legacy and modern systems.
Yes, provided they use best practices like encryption, secure authentication, and continuous monitoring.
API integration connects two or more software systems so they can exchange data or commands automatically. It’s like giving them a shared language so they can work together without human intervention.
It depends on the complexity. Prebuilt integrations can take days or weeks, while custom solutions may take several weeks to months, especially if data mapping or authentication setups are complex.
An API is a set of rules for data exchange, while a connector is a tool or service that uses APIs to link two systems together, often with built-in logic or templates.
Not always. Many platforms (like TrueCommerce or Zapier) offer no-code or low-code options for integrating APIs. However, custom or advanced use cases may require developer expertise.
REST APIs use lightweight HTTP protocols, often using JSON. SOAP APIs are more rigid, use XML, and are commonly used in older enterprise systems.
Through authentication methods like OAuth or API keys, encrypted communication using HTTPS/TLS is often managed via API gateways that monitor and restrict access.
If versioning isn’t managed properly, integrations can break. Best practice is to use version-controlled endpoints and to monitor provider change logs.
Yes, using middleware or hybrid approaches like TrueCommerce’s Exchange API, which wrap older systems in modern interfaces to allow interaction with newer platforms.
Common tools include Postman (for testing), MuleSoft (middleware), AWS API Gateway, Microsoft Azure Logic Apps, and integration hubs like TrueCommerce or Boomi.
Nearly all industries benefit, but it’s especially critical in eCommerce, logistics, finance, healthcare, and manufacturing, where data exchange speed and accuracy are essential.
It’s a restriction on how many API calls you can make in a given time frame, set by the API provider to protect system performance and prevent abuse.
Absolutely. APIs are the backbone of mobile apps, enabling them to pull data (like weather, orders, or maps) from remote servers and services in real time.
APIs require a system to request data, while webhooks “push” data automatically when a specific event happens. They’re often used together in integrations.
APIs can wrap EDI workflows, enabling real-time updates and automation. This hybrid model allows businesses to modernize EDI without abandoning long-standing partner protocols.
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