Microsoft Dynamics 365 Business Central is a comprehensive business management solution designed for small to mid-sized businesses. Its capabilities range from financial management to supply chain operations.
Shopify, on the other hand, is a leading e-commerce platform known for its ease of use and robust features. Integrating Business Central with Shopify can streamline operations, improve inventory management, and enhance customer experience. This article explores the tools and strategies for effective integration, answering questions like which tools to use, how to implement them, and what data flows between systems.

Which Data Can Be Integrated

When integrating Business Central with Shopify, the following data types are commonly synchronized:

Products

Inventory levels, descriptions, images, and pricing are sent from Business Central to Shopify. This ensures Shopify always displays accurate product information, reflecting real-time inventory availability and correct pricing.
Business Central acts as the system of record for product data and inventory management. Updates ensure Shopify storefront displays up-to-date offerings.

Orders

Shopify sends order details such as order numbers, items purchased, quantities, and customer information to Business Central. This integration enables order fulfillment and financial reconciliation in Business Central.
Shopify serves as the point of sale, while Business Central manages backend operations like stock updates and financial tracking.

Customers

Shopify can send customer details (e.g., name, contact info, and purchase history) to Business Central for CRM purposes, and Business Central can push customer updates to Shopify if customer data is maintained centrally.
Synchronization ensures consistency in customer interactions across platforms.

Shipping Information

Delivery status and tracking numbers are generated in Business Central and sent to Shopify to update the customer-facing order status. This helps provide real-time shipping updates to customers directly through Shopify.

Payments

Payment details such as methods, transaction IDs, and statuses are sent to Business Central to update the financial and accounting records. Payment data is critical for invoicing and financial audits, making Business Central the logical repository.

Tools for Integrating Business Central with Shopify

Table of Comparison

Native Shopify Connector in Business Central

Microsoft provides a native Shopify connector within Business Central, designed for straightforward integration. It offers seamless setup with minimal technical knowledge required and enables real-time synchronization of key data such as orders and inventory.
This solution is supported directly by Microsoft, which presupposes reliability and updates.

On the downside, the Connector is quite a limited customization option. For example, with the native Shopify connector in Business Central it is not possible to support complex order fulfillment workflows. This might cause issues for companies that sell both custom-made and stock items via Shopify. While standard stock items are easily synced with Business Central, the custom-made items require a manufacturing process and involve multiple steps before fulfillment. The native Shopify connector handles standard data synchronization (e.g., orders, inventory levels) but does not provide a built-in way to:

• Tag orders based on item type.
• Integrate with manufacturing workflows in Business Central for custom items.
• Manage partial shipments directly linked to the order status.

Apart from that, it does not always support complex workflows or niche requirements.
The native Shopify app can be found within the Business Central AppSource, designed to cater to standard integration needs.

Third-Party Integration Tools

Third-party tools can offer advanced functionality and greater flexibility compared to native solutions.
They typically offer extensive customization options for unique business processes and support additional features such as multi-store integration. With that being said, some third-party tools do require a learning curve or technical expertise. Their costs can vary significantly, depending on the vendor and feature set.

Available Business Central Shopify Integration Solutions include Cavallo, Celigo, AtroCore Data Integration Platform.

1. Cavallo

Cavallo connects Shopify and Business Central, focusing on streamlining order management and automation. It supports features like order routing and workflow customization, making it suitable for businesses with moderate complexity in their processes. Some setup and configuration may be required.

2. Celigo

Celigo provides a flexible platform for Shopify-Business Central integration, offering pre-built templates and support for advanced workflows like multi-store management. While its customization options are strong, using the platform effectively may require technical knowledge.

3. AtroCore Data Integration Platform

AtroCore is a free, open-source data integration platform designed to enable smooth and efficient integration between ERP systems like Business Central, eCommerce platforms like Shopify, and virtually any other system. It leverages REST APIs to provide real-time data exchange.
With AtroCore, businesses can achieve fully automated, bidirectional data synchronization between Business Central and Shopify. This synchronization can be scheduled or triggered by specific events. It facilitates the transfer of product data, pricing, inventory levels, and custom data from Business Central to Shopify, while customer information, order details, and delivery statuses are seamlessly transferred from Shopify back to Business Central. As an open-source platform, AtroCore offers the flexibility for unlimited customization to suit unique business needs.
However, due to its open-source nature, some coding knowledge is required for configuration. Therefore, businesses without in-house development resources may need assistance from the AtroCore team to ensure proper setup and smooth operation.

Custom Integration Solutions

Custom integration between Business Central and Shopify promise unmatched flexibility, but they often come with significant costs, long implementation timelines, and ongoing maintenance challenges. For most businesses, these drawbacks outweigh the benefits.
Instead, companies typically rely on established ERP systems like Business Central, SAP Business One, or NetSuite alongside eCommerce platforms such as Shopify, Magento, or WooCommerce. These platforms provide reliable pre-built integration options, either through native tools or third-party solutions, ensuring seamless connectivity without the complexity of building from scratch.

Best Practices for Business Central Shopify Integration

Define your integration goals

Determine which data needs to be synchronized and Identify business processes that require automation (e.g., order fulfillment, returns, refunds). You can start with most important processes and cover less important processes later.

Maintain Data Accuracy & Consistency

Implement robust data synchronization mechanisms, either in real-time or on a scheduled basis, to keep information up to date across both platforms. Regularly audit and validate data to detect and resolve discrepancies before they impact business operations.

Establish comprehensive error-handling procedures to manage data mismatches or failed syncs. Implement automated alerts and logs to track synchronization failures, enabling quick resolution. Additionally, enforce data validation rules to prevent incorrect or incomplete data from being transferred, reducing the risk of inconsistencies in inventory, orders, and customer records.

Consider implementing a centralized monitoring system to oversee data flows between Shopify and Business Central. This will help proactively identify and address issues while ensuring seamless data consistency across all integrated business processes.

Set Appropriate Synchronization Frequency

Inventory
Synchronize inventory updates in real-time or at least hourly, depending on your sales volume and product turnover rate. For high-demand or low-stock items, real-time updates ensure that customers see accurate availability, reducing the risk of overselling. Businesses with slower sales cycles or larger inventory buffers may opt for hourly updates to balance performance and accuracy.

Orders
Process orders immediately to ensure timely fulfillment and accurate stock deductions. Real-time order synchronization is critical to prevent stock discrepancies and enhance customer satisfaction through faster delivery times. Immediate updates also enable more efficient communication with customers about their order status.

Customer Data
Update customer data on a nightly batch basis if the information is non-urgent, such as changes to contact details or purchase histories. This approach minimizes system load during peak hours while maintaining up-to-date customer records. For businesses that rely heavily on personalized marketing or CRM tools, more frequent updates may be necessary.

Product Quantities
Ensure that product quantities are accurately synchronized between Business Central and Shopify to prevent overselling or stock discrepancies. For businesses with high sales velocity, real-time synchronization is recommended to reflect accurate stock levels instantly. If real-time updates are not feasible, consider synchronizing product quantities at frequent intervals, such as every 15 to 30 minutes, to maintain inventory accuracy without overloading system resources.
Additionally, implement buffer stock settings to account for potential delays in updates, reducing the risk of overselling. If your business operates multiple warehouses, ensure that stock levels are allocated correctly to Shopify based on fulfillment priorities and geographic availability.

Prices and Discounts
Mapping of price lists, discounts, and promotions is critical for consistency. Ensure that any special pricing in Business Central is reflected correctly in Shopify.

Monitor Performance & Logs

Set up automated alerts and notifications to immediately detect synchronization failures to perform quick corrective action. These alerts can be configured to notify relevant teams via email, dashboards, or messaging platforms, ensuring that issues are addressed in a timely manner.

Periodically analyze integration performance to optimize speed and reliability. Assess factors such as data transfer frequency, system load, and processing times to identify potential bottlenecks. Fine-tune synchronization settings, such as adjusting batch processing intervals or implementing caching mechanisms, to improve efficiency.

Provide Ongoing Maintenance & Support

A well-functioning integration between Business Central and Shopify requires continuous monitoring, adaptation, and support. Therefore, schedule periodic integration reviews to assess whether the current setup aligns with evolving business needs, operational changes, or new e-commerce strategies. These reviews should include evaluating data synchronization efficiency, identifying areas for improvement, and addressing any recurring issues.

You should also stay informed about Shopify and Business Central updates, as platform changes, new features, or API modifications can impact integration functionality. Regularly check official release notes, participate in user communities, and test updates in a controlled environment before deploying them to production.

Handling Multi-Channel Sales

Shopify allows you to manage multiple stores from one account, syncing inventory and customizing product details for each store. For selling on marketplaces like Amazon and eBay, Shopify integrates directly, ensuring your orders and inventory stay in sync. You can set specific pricing and product variations for each platform, while real-time inventory updates help prevent overselling. Shopify also offers unified analytics to track performance across channels, and tools like ChannelAdvisor or Shopify Plus can further streamline complex integrations and help scale your business.

Consider API Limitations and Performance Issues

Rate Limits:
Both Shopify and Business Central have API rate limits that restrict how many requests can be made in a given timeframe. Make sure your integration stays within these limits by planning how many requests your system will generate and using techniques like queuing or backoff strategies to prevent hitting those limits.

Bulk Operations:
For high volumes of orders or inventory updates, using bulk operations (batch syncing) helps improve efficiency. Instead of making individual API calls for each change, batching updates reduces the number of requests and helps avoid rate limit issues, making the integration more efficient.

Error Handling:
Set up automatic alerts for failed syncs so you can quickly detect and resolve any issues. This helps minimize disruptions and ensures smooth operation by letting you troubleshoot problems promptly, especially if syncing fails due to rate limits or other issues.

Key Takeaways

Choosing the right integration tool depends on your business's needs. The Native Shopify Connector is a great option for simple setups, while third-party tools and custom integrations offer more flexibility for complex requirements. Synchronizing inventory and orders in real-time or hourly ensures accurate data and better customer satisfaction, but frequent updates can strain your system. For businesses with large inventories, managing updates by category or region can improve performance. Open-source solutions like AtroCore provide customization but require technical expertise. Be sure to evaluate your needs, resources, and budget to choose the best integration strategy for your business.