Whenever you talk to a software company or receive an integration proposal, you are bound to hear the word "API." Phrases like "Does your ERP have an API?" or "We'll connect to the shipping carrier via API" can be confusing for someone without a technical background. Yet the logic behind an API is quite simple, and once you understand it, you can make software decisions with much more confidence. In this article, we explain APIs without requiring any technical knowledge.
What Is an API?
API stands for "Application Programming Interface." The full name on its own does not tell you much. Put as simply as possible, an API is a set of rules that lets two pieces of software talk to each other.
Think of it like a restaurant. You are sitting at your table, and the kitchen is in the back. You do not walk into the kitchen and cook the meal yourself. You tell the waiter what you want, the waiter passes the order to the kitchen, and then brings your food when it is ready. In this picture, the waiter is the API. You and the kitchen do not need to know how the other works. All you have to do is place your order in a way the waiter understands.
Software works the same way. When your B2B portal wants to check stock levels in your ERP system, it does not go into the ERP and dig through its database. It asks the ERP's API, "How many units of this product are in stock?" and the API brings back the answer.
You Already Use APIs Every Day
Even if you do not realize it, you encounter APIs every day:
- When you pay by card on a shopping site, the site connects to the bank's system through an API.
- When you enter your shipment tracking number, the information comes from the carrier's system via an API.
- When you sign in to an app with "Sign in with Google," the two systems talk through an API.
- The weather app on your phone pulls its data from a weather service's API.
What these examples have in common is that two different systems exchange information without the user ever noticing. The bank does not open up all of its customers' account details to the shopping site; it simply answers the question "Was this payment approved?" That is one of the best things about an API: it delivers only the information you allow, in the way you allow. That is why a well-designed API is also an important part of data security.
What Does an API Do for Your B2B Business?
For a manufacturer, distributor, or wholesaler, an API keeps different software systems from operating like isolated islands. There is no longer any need to carry information from one place to another by hand.
| Connection | What the API makes possible |
|---|---|
| ERP and B2B portal | Stock, prices, and orders are updated on both sides at the same time |
| B2B portal and shipping carrier | Shipments are created automatically and the tracking code is sent to the customer |
| B2B portal and marketplaces | Stock on channels such as Trendyol and Hepsiburada is fed from a single source |
| Portal and e-Invoice system | The invoice is generated when the order is completed, without being issued by hand |
| Portal and bank | Payments collected through the virtual POS are posted to the current account |
Without an API, each of these tasks requires an employee to read data from one screen and type it into another. That takes time and increases the risk of errors.
Let's look at a concrete example. One of your dealers places an order on your B2B portal in the evening. In an API-driven setup, the order lands in the ERP instantly, stock is deducted, the warehouse team starts preparing it the next morning, a shipment is created, and the tracking code is sent to the dealer by SMS or WhatsApp. Now picture the same process without an API: someone sees the order in the morning, enters it into the ERP by hand, opens a separate record on the carrier's website, and calls the dealer with the tracking code. Every step carries a chance of a typo or a delay.
A Few Terms You Will Hear Often
In software meetings, a few other words come up alongside API. You do not need to master them all, but knowing roughly what they mean makes things easier.
- REST and SOAP: Two common methods APIs use to communicate; going back to the restaurant example, they determine the format in which the order is written.
- XML: A file format in which data is packaged and sent in an organized way; it is often used to share product lists.
- Webhook: A method that automatically notifies the other system when an event occurs, such as passing along "a new order has arrived" without waiting.
- Integration: The general term for connecting two systems to each other through an API or similar means.
Questions to Ask When Choosing Software
- Does the system have an open, documented API?
- Is there a ready-made connector for the ERP I use?
- If there is no ready-made connector, can we connect via XML or REST/SOAP?
- Is the data flow one-way or two-way?
- Who provides support when something goes wrong with the connection?
Multistok gives clear answers to these questions. It offers REST API, XML, and webhook support, and has ready-made connectors for widely used ERP systems such as Logo, Mikro, Netsis, Nebim, SAP, and Dynamics. It can connect to any system that supports XML or REST/SOAP, and a custom bridge can be built if needed. You can see which plans include API access on our plans page. If you are curious about how cloud-based software works, our article What Is SaaS? may also be helpful.
Conclusion
An API is the common language your software systems use to talk to each other. You do not need to know the technical details; what you need to know is whether the systems you use speak this language and whether information reaches the right place without your intervention. If you would like to see how your own ERP would connect to Multistok, you can request a demo.
