Shopify is the platform of choice for many brands and retailers looking to launch an online store. And once order volumes and complexity start to ramp up, Shopify Plus integrations that leverage the power of composable commerce are a logical next step – particularly for merchants with international ambitions.

In this article, we'll explain how larger companies can leverage the full potential of Shopify Plus through targeted capability extensions such as distributed order management (DOM), using modern e-commerce concepts to improve the customer experience and optimize all processes. This powerful combination enables enterprises to plan better, sell more, grow faster and cut waste.

What is Shopify Plus?

Shopify offers various standard plans charged at a flat rate (the Advanced plan currently costs $299/month), which enable merchants to hit the ground running with their online business.

So what does Shopify Plus add to the mix? Pitched as a scalable and highly customizable enterprise-level solution, Shopify Plus enables merchants to do so much more:

• Integrate existing systems like an ERP or CRM with Shopify APIs and SDKs
• Automate various processes with Shopify Flow
• View performance analytics, create new stores, and manage automation flows
• Access to the Merchant Success Program and 24/7 support

These extra capabilities do come at a price however: Shopify Plus plans start at around $2,500/month, and larger businesses are charged on a revenue-based model. So these plans are a better fit for companies with revenues above $1m.

Where Shopify Plus Integrations Can Help

Although Shopify is one of the most flexible and powerful platforms available, there are some functional limitations when handling complex processes and large order volumes, or when expanding internationally.

At this stage, some core business activities are best placed in a Commerce Operations Platform like Actindo, to ensure that Shopify fully supports the growth of your business.

You might already be seeing the following challenges:

1. Limited flexibility in back-end structure: Shopify has a highly standardized back-end structure, which has limitations when it comes to specific customization and process automation requirements.
2. Limited omnichannel capabilities: With growing businesses operating both online and offline across multiple sales channels, omnichannel integration is becoming increasingly complex.
3. Order management processes: For companies with complex supply chains, multiple warehouse locations and international orders, the integrated order management system often becomes inadequate.
4. Limited reporting and analysis options: Deeper analysis and data-driven decisions require more flexibility in data collection and evaluation than Shopify natively offers.
5. Inventory management: Like most e-commerce platforms, Shopify is able to track stock levels per Stock Keeping Unit (SKU), which is a good first step in maintaining accurate stock levels and avoiding overselling. However, Shopify quickly reaches its limits when things get more complex, e.g. managing multiple locations, or hybrid warehouses.
6. Accounting and financial control: Shopify is not and does not attempt to be anything close to financial accounting software. The result of a pure accounting integration is often poor data quality and therefore a lack of accuracy and reporting down the line, which will hinder your decision making.

This is where extensions and third-party integrations come in. By using specialized tools, merchants can create customized solutions that go beyond Shopify's standard offerings. Let’s look at how composable commerce can help…

Composable Commerce: The Future of Scalable E-commerce

The term “composable commerce” refers to an approach in which individual components of an e-commerce system can be selected and combined independently of one another.

The advantage of this approach? Maximum flexibility and adaptability, using best-of-breed microservices (ideally based on MACH principles).

Composable commerce offers a way to create a modular architecture where merchants only integrate the solutions and services they really need. An ecosystem of best-of-breed solutions that can be dynamically expanded and scaled, rather than a monolithic structure from one provider.

4 Advantages of Composable Commerce for Shopify Plus Merchants

1. Customization: Merchants can incorporate different services for specific use cases without overloading the entire system.
2. Rapid scalability: As demand increases, additional modules or services can be seamlessly integrated without disrupting the existing system.
3. Optimized performance: Through the targeted use of specialized tools, bottlenecks in processes can be avoided and performance improved.
4. Flexible integrations: With APIs and headless solutions, different front-end and back-end components can easily communicate with each other and work together harmoniously.

A typical example is the integration of specialized payment, logistics or customer experience solutions that perform specific tasks better than the native Shopify tools.

Adding Distributed Order Management (DOM) to Shopify Plus

Distributed Order Management (DOM) refers to the coordination and management of orders across multiple warehouse, distribution and sales locations. For Shopify merchants operating in multiple countries or regions or pursuing a multi-channel strategy, DOM is essential.

A DOM system allows orders to be managed flexibly across different locations. Delivery times and logistics costs can be optimized. For merchants using Shopify, this means they no longer have to rely solely on the integrated order management functions, but can use a powerful solution that incorporates all locations and logistics processes.

4 Key Benefits of a DOM System

1. Optimized inventory management: DOM provides a centralized view of inventory levels, and automatically optimizes where an order should be shipped from to minimize costs and reduce delivery times.
2. Improved customer experience: More accurate and faster deliveries increase customer satisfaction and loyalty.
3. Reduced costs: Automated decisions can be made about the best shipping location and route help to minimize costs.
4. Scalability: As the complexity of the business model increases and new locations are added, the system adapts without the need for extensive adjustments.

In a Shopify-powered retail stack, a DOM system can be integrated via APIs or specialized partner solutions that harmonize smoothly with the existing setup.

Integrating Shopify Plus with Composable Commerce and DOM

For companies in the enterprise segment, the combination of Shopify Plus, Composable Commerce and DOM provide the foundation for a highly scalable and customizable e-commerce platform.

Best practices include:

1. Strategic system architecture planning: For large enterprises in particular, it’s important to carefully plan the entire commerce landscape. Shopify Plus as a base platform, complemented by Composable Commerce and DOM, makes it possible to create a flexible and resilient infrastructure.
2. Modular implementation: The modular approach allows companies to expand their e-commerce landscape in a targeted manner without jeopardizing the stability of the entire system.
3. API management and integration: A solid API strategy is crucial to efficiently connect different systems and components. Shopify Plus offers advanced API capabilities that enable seamless integration.
4. Global rollouts and multi-store management: Multi-store management is crucial, especially for internationally operating companies. With Shopify Plus, companies can easily operate multiple stores in different markets while maintaining centralized controls and processes.

Big Names Using Shopify Plus and Composable Commerce

Many successful brands and retailers already use Shopify Plus in combination with composable commerce and DOM to optimize their global business processes.

Companies such as Kylie Cosmetics, Gymshark and Heinz have shown how these solutions can both improve the customer experience and streamline their back-end processes:

Kylie Cosmetics is a US brand founded in 2014 by influencer Kylie Jenner. Early success with products like “Kylie Lip Kits”, high-profile collabs and lots of influencer marketing helped the company to hit a $1.2bn valuation. Built on Shopify Plus, Kylie Cosmetics uses various composable technologies including search tech from Algolia to improve the shopping experience.

Gymshark is a UK fitness clothing brand. Black Friday woes in 2015 saw the company replatform from Adobe Magento to Shopify Plus, and it now generates revenues above $700m annually from 14 international websites. Their commerce stack combines Shopify Plus with various MACH-certified technologies, including content management from Contentful and search tech from Algolia.

Heinz needs no introduction, as the world’s favorite brand of tomato ketchup. During the Covid crisis, the company reportedly launched a Direct-to-Consumer website in the UK in just one week with Shopify Plus, offering delivery-to-door service and bundled product subscriptions.

Getting Started with Actindo

Actindo combines powerfully with Shopify Plus to enable omnichannel order and inventory management and accounting.

Once orders are placed in Shopify, our integration steps in and downloads all the details into Actindo and automatically routes them through your workflows to the appropriate warehouse or fulfillment center, informing the connected CRM of the activity and creating the accounting records and reports in financial accounting.

The combination of Shopify Plus and Actindo offers enterprise-level e-commerce companies the perfect basis for surviving in a highly competitive market and growing in the long term. With these technologies, companies can flexibly scale their systems, map highly complex processes and take the customer experience to a whole new level.

Well-known companies already using Actindo include Nintendo of Europe, Mustang Jeans, Kapten & Son and more. Meet our customers.

If you want to optimize your Shopify setup, it's worth looking at the possibilities of Shopify Plus in combination with a Commerce Operations Platform. Together they create a powerful, adaptable and future-proof solution for your growth and success in digital commerce: