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What is an API? The plain English explanation for business owners

APIs are how software talks to software. What that means for you, what to ask suppliers, and why it affects your options.

You will hear "does it have an API?" in every conversation about connecting software, and the answer decides what is possible. Here is what an API is, in terms that do not require a technical background, and why it should be one of your first questions when choosing any business software.

The plain English version

An API, or application programming interface, is a set of doors that a piece of software provides so that other software can ask it for data or tell it to do something, in an agreed and secure way.

Your online store has an API. Through it, another system can ask "what orders were placed today?" and receive a list, or say "this order has been shipped, here is the tracking number" and the store will update itself and email the customer. No human opens the store's admin screen; software talks to software.

Think of it like a serving hatch at a restaurant. You do not walk into the kitchen; you ask at the hatch in the expected way, and the food comes out. The hatch is the API.

Why it matters to you

Integration. Every automatic connection between systems runs through APIs. Store to ERP, ERP to accounts, warehouse to courier: all APIs. See what is system integration.

Apps and portals. A mobile app or a customer portal is a front end talking to a back end through an API. See customer portal benefits.

Automation. No-code tools like Zapier work by calling the APIs of the apps they connect. See Zapier vs custom integration.

Freedom. A system with a full API lets you get your data out and connect whatever you like. A system without one holds your data hostage.

Questions to ask a software supplier

  1. Do you have an API? (If no, be very cautious.)
  2. What does it cover? Reading customers and orders is common; writing them, or accessing every feature, is less so.
  3. Is it included in my plan, or an upgrade?
  4. Is it documented publicly? Good documentation means integrations are quicker and cheaper.
  5. Are there limits on how often it can be called? High-volume integrations need to know.
  6. Do you support webhooks? Webhooks are notifications the system sends out when something happens, so the integration does not have to keep asking. They make integrations faster and lighter.

Types you may hear about

REST is the most common style today; most cloud tools use it. GraphQL is newer and used by Shopify among others. SOAP is older and still found in some enterprise and courier systems. Webhooks are outbound notifications rather than a style. You do not need to know the differences; your developer does. What matters is that an API exists and covers what you need.

APIs and your own software

If you commission custom software, insist that it has its own API from the start, even if nothing needs it yet. It is far cheaper to design in than to retrofit, and it is what will let you add a mobile app, connect a new system or move to a different front end later. It is part of what owning the code should mean in practice.

Security

APIs are doors, so they need locks. Access is controlled by keys or tokens that identify the calling system, and a good API lets you limit what each key can do. Keys should be stored securely, rotated, and revoked when a system is retired. Ask any integrator how they handle this.

The practical takeaway

When you are choosing software, "does it have a good API?" is as important as "does it have the features?" Features serve you today; the API decides what you can do tomorrow.

If you want to know whether the systems you already run can be connected, a discovery call will answer it in half an hour. Read about our integrations service or request a quote.

Key takeaways

  • An API is the way one piece of software lets another read or change its data, safely and in an agreed format.
  • Almost every cloud tool has one, and it is what makes integration between systems possible.
  • When choosing software, ask whether it has an API and what it covers. No API means you are locked in.
  • You do not need to understand the technical detail, just what it makes possible and what to ask for.

Frequently asked questions

No. The API is the door a system provides. The integration is the software that walks through it to move data between systems. A system with a good API is easy to integrate; the integration still has to be built or configured.
It depends on the platform. Some include it in every plan; some only on higher tiers (Odoo's API access, for example, is on its Custom plan); some charge per call. Check before you choose a plan, because needing API access later can force an upgrade.
If anything else will ever need to read or write its data, yes, and it should be designed in from the start. It is also how a mobile app talks to its back end. See our mobile app cost guide.

Need help with system integrations?

eSolution Hub is a UK company with its own engineering team in Lahore. Every project starts with a free 30 minute discovery call and a written quote. Read about our system integrations service or request a quote.

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