What is iPaaS and why is it becoming important for B2B e-commerce?
Short answer: iPaaS (Integration Platform as a Service) is a cloud platform that connects different software systems, such as ERP, PIM, inventory systems and webshops. Instead of building dozens of separate integrations, each system connects to the platform once. For B2B e-commerce, this means that product data, inventory, orders and track & trace flow automatically and in real time between suppliers and retailers. Droppery is an iPaaS specialised in exactly that connection.
Anyone running a webshop today or selling as a brand through retailers works with an increasing number of systems. A supplier has an ERP, perhaps a PIM and a WMS. A retailer runs on Shopify, WooCommerce or PrestaShop. Thousands of data points move back and forth between them every day. As long as this happens through Excel lists, emails and manual orders, growth remains limited. iPaaS solves that.
What exactly does iPaaS mean?
iPaaS stands for Integration Platform as a Service. It is software that runs in the cloud and acts as a central control tower between applications. The platform retrieves data from one system, translates it into the format of the other system and automatically delivers it there.
The three characteristics that distinguish iPaaS from a standalone API integration:
- Centralised instead of distributed. All integrations run through one platform, so management, monitoring and error handling are all in one place.
- Cloud-based. No own server or IT team is needed to maintain integrations. Updates and new connectors come from the provider.
- Reusable. Once a system is connected, it can communicate directly with all other connected parties.
How fast is the iPaaS market growing?
iPaaS is no longer a niche. According to market analysis by Gartner, the iPaaS market grew by 23.4% in 2024 to $8.5 billion, driven by the increasing use of AI, no-code/low-code tools and SaaS. Gartner also expects the market to continue growing rapidly and to exceed $17 billion in revenue by 2028. The reason is simple: companies use more and more software, and all that software needs to communicate with each other. Gartner Informatica
Source: Gartner, Market Share Analysis: Integration Platform as a Service, Worldwide, 2024
The problem with separate integrations: 100 or 20?
This is the core reason why iPaaS makes a difference in B2B e-commerce. Imagine: ten suppliers want to sell through ten retailers. With direct integrations (point-to-point), each supplier has to integrate separately with each retailer. That means 10 × 10 = 100 integrations, each with its own data formats, its own errors and its own maintenance.
With an iPaaS, each party connects once. That means 10 + 10 = 20 integrations. And most importantly: every new supplier or retailer that joins requires one additional integration instead of ten.
This is why networks of suppliers and retailers without an integration platform get stuck. The number of integrations grows exponentially, while the value of the network should actually grow linearly. iPaaS makes scaling affordable again.
Why is iPaaS becoming particularly important for B2B e-commerce now?
1. Retailers want a broader assortment without inventory risk
Webshops want to offer a broader range, but do not want to purchase everything themselves. That is only possible if the supplier’s inventory and product data are available in the webshop in real time. Without integration, you sell products that are already out of stock.
2. Suppliers and brands want new sales channels without additional staff
A brand that wants to serve fifty retailers cannot do that manually. Orders must automatically enter its own ERP, and product information must automatically reach all partners.
3. Cross-border sales require standardisation
Anyone selling in the Netherlands, Belgium, Germany and France works with different webshop platforms. PrestaShop is popular in France, Shopware in the DACH region, and Shopify and WooCommerce in the Netherlands. An iPaaS translates between all these systems.
4. Customers expect fast delivery and up-to-date tracking
Consumers expect an order to arrive within a few days and to be able to track the shipment. That only works if orders and track & trace codes move between systems without delay.
5. AI and automation require clean, connected data
AI tools for pricing, inventory forecasting or product texts are only as good as the data they receive. An iPaaS ensures that this data is consistent and up to date.
How does iPaaS work in practice at Droppery?
Droppery is an iPaaS specifically built for the relationship between suppliers, brands and retailers. The platform automates four data flows:
- Product data. Suppliers manage their product information in one place, including variants, specifications, EAN codes and visual material. Retailers import products into their webshop with one click.
- Inventory. Stock levels are synchronised in real time or every hour, so retailers never sell products that are unavailable.
- Orders. An order placed in the webshop is automatically forwarded to the supplier, directly into their own system.
- Track & trace. Shipping information is automatically sent back to the retailer’s webshop, so the end customer always knows where the parcel is.
Suppliers connect their ERP or inventory system through Droppery’s supplier integrations. Retailers connect through the webshop integrations for platforms including Shopify, WooCommerce, PrestaShop, Shopware, Shopline, Lightspeed and Magento. For product information management, there is also Droppery PIM.
What distinguishes Droppery from a generic iPaaS: the supplier remains in control. Suppliers and brands decide for themselves which retailers they work with and under which conditions. Integration and selective distribution therefore go hand in hand.
What does iPaaS deliver in concrete terms?
The results among Droppery’s partners show what automation can achieve. At De Eekhoorn/WOOOD, the integration resulted in 22% less processing time, 97% fewer errors and same-day order processing. Bazar Bizar increased its global online sales by more than 82% compared with the previous year.
The general benefits of iPaaS for B2B e-commerce at a glance:
- Less manual work: no more Excel lists, CSV uploads or manually entered orders.
- Fewer errors: no typing errors, outdated prices or products being sold when they are out of stock.
- Faster scaling: connecting new partners takes days instead of months.
- Lower IT costs: no in-house development team is needed to build and maintain integrations.
- Better customer experience: faster delivery and up-to-date track & trace.
iPaaS, API, ERP and PIM: what is the difference?
These terms are often used interchangeably, but they do different things.
An API is a technical entry point into one system. It enables communication, but does not build a connection itself.
An ERP is the administrative heart of a company: inventory, purchasing, invoicing and finance.
A PIM manages product information, such as descriptions, specifications and images.
An iPaaS connects all these systems with each other and with the systems of business partners. It uses the APIs of the ERP, PIM and webshop to allow data to flow automatically.
In short: ERP and PIM store the data, APIs open the door, and iPaaS ensures that the data arrives in the right place.
Who is iPaaS in B2B e-commerce relevant for?
Wholesalers, manufacturers and brands that want to expand their reseller network without additional order processing. Retailers and webshops that want to expand their assortment with products from European suppliers, without inventory risk. Importers that want to serve multiple sales channels from one central inventory. Companies that want to sell cross-border in the Netherlands, Belgium, Germany and France.
Conclusion: integration is becoming the backbone of B2B e-commerce
The winners in B2B e-commerce are not necessarily the companies with the largest assortment or the most attractive brand. They are the companies that can connect, scale and deliver the fastest. That requires an integration layer that effortlessly connects suppliers and retailers. iPaaS is that layer.
Since 2021, Droppery has been building that integration platform from Amsterdam for European suppliers, brands and retailers. Want to see how your systems connect? Book an online demo or contact us.
Frequently asked questions about iPaaS
What is iPaaS in simple terms?
iPaaS is an online platform that allows different software systems to communicate with each other automatically. Instead of transferring data manually, it flows automatically from one system to another.
What does iPaaS stand for?
iPaaS stands for Integration Platform as a Service: an integration platform offered as a cloud service.
What is the difference between iPaaS and an API?
An API is a technical entry point into one system. An iPaaS uses multiple APIs to actually connect systems with each other, including data translation, monitoring and error handling.
Why is iPaaS important for B2B e-commerce?
Because suppliers and retailers increasingly work together through different systems. Without a central integration platform, the number of integrations grows exponentially. With iPaaS, each party connects once and can then work with all partners.
Is Droppery an iPaaS?
Yes. Droppery is a B2B integration platform that connects suppliers, brands and retailers and automatically synchronises product data, inventory, orders and track & trace.
Which webshop platforms does Droppery support?
Droppery integrates with Shopify, WooCommerce, PrestaShop, Shopware, Shopline, Lightspeed and Magento, among others, plus its own API for custom platforms.
Do I need an IT team to use iPaaS?
No. At Droppery, integrations with most webshop platforms and many ERP systems are already available. Retailers using Shopify, for example, install the app and can get started immediately.
Can I decide for myself who I work with as a supplier?
Yes. Within Droppery, suppliers and brands approve which retailers gain access to their collections and under which conditions.