What is Composable Commerce? Why is it considered critical?

Composable commerce has recently gained traction as businesses recognize the need to adapt rapidly to changing markets and customer needs. The concept of this commerce is rooted in the idea of “platforms,” which emerged in the mid-2000s as a way for businesses to build and maintain customer relationships. 

The idea was to create a platform offering many services and products instead of being limited to one offer. The platform model has since been adopted by businesses of all kinds, from retail stores to software developers, to keep up with eCommerce trends.

Today, composable commerce builds on the concept of platforms but with an added level of flexibility. By breaking down a business’s offerings into individual components, businesses can quickly respond to changes in new market developments.

Flexibility commerce allows businesses to create customized customer commands and operations. In this article, we will look at why composable commerce is critical and what it entails.

What Is Composable Commerce?

Composable commerce is a type of eCommerce setup that emphasizes flexibility and agility. It combines independent, API-first, SaaS-based solutions that work with MACH architecture principles to deliver customized digital experiences. 

This setup allows businesses to build their own ultimate eCommerce tech stack by easily integrating with other tools and decoupling the front-end interface from the backend logic of their eCommerce engine. It enables businesses to provide customers with high-quality, personalized digital experiences. 

The following tenets make up a composable commerce platform:

MACH Architecture

Composable Commerce utilizes MACH as a foundational technology to power its digital commerce solutions.

MACH Architecture: Image Source: Just After Midnight 

MACH stands for Microservice-based, API-first, Cloud-native, and Headless architecture. These four elements are essential for building a modern application that is both quickly scalable and capable of delivering a great customer experience. 

Microservice-based architecture means the application is broken into multiple smaller components, which can be developed and deployed independently. This makes adding new features and changes easier without impacting the entire system.

API-first means that the application is built from the ground up with an emphasis on having a well-defined set of APIs that can be used to access the data and services within the application. This makes it easier for developers to integrate their applications with the system and for customers to access the needed data. 

Cloud-native means the application is designed to be hosted on a cloud computing platform Amazon Web Services. This allows for scalability and faster deployment of new features and services. 

Headless architecture means that the application is built with a focus on the back end, which is the core engine of the system. This makes it easier to build the front-end user interface separately and makes it easier to integrate the application with other systems.

Customer-Centricity

Customer centricity is an approach to doing business that puts customers at the heart of the operation. It is focused on creating a positive customer experience from the initial contact to the final result. 

It derives from understanding customer needs and delivering a tailored experience that meets those needs. The approach is about creating an atmosphere where customers feel valued, heard, and supported. 

Focusing on this approach increases customer satisfaction, loyalty, and profitability. Composable commerce ensures customer centricity through its flexible and customized solutions to meet each customer’s needs. 

It uses sophisticated technology to instantly integrate data, products, and services, allowing customers to create a personalized experience that meets their requirements. 

This commerce offers an automated customer relationship management (CRM) system that allows businesses to track customer interactions and identify opportunities to create a more personalized experience. 

Modular Architecture

The modular structure is an architectural approach to designing software and hardware systems. It is an approach whereby components are viewed as separate and distinct entities, and their interactions are managed through well-defined interfaces. 

This architectural design allows the system to be easily modified or extended by adding or removing components. Composable commerce is a modern commerce approach centered around modular architecture. This approach focuses on breaking down the components of a traditional commerce system into smaller, more manageable modules. 

Each module is then independently developed and deployed, allowing distinct components to be mixed and matched to create a custom commerce experience. This modular architecture allows for rapid development, faster time-to-market, and more robust functionality. 

It also enables companies to easily update and upgrade components, allowing them to improve their customer experience continuously.

Open Ecosystem

An open ecosystem allows businesses to speedily deploy innovative, omnichannel storefronts and shopping experiences by utlizing solutions like third-party apps, headless commerce platforms, and pre-built solutions. 

API-first, composable commerce platforms allow businesses to easily integrate various tools and systems, including payment gateways, CRM systems, loyalty programs, shipping and logistics solutions, and more. 

This allows businesses to build and customize their unique storefronts tailored to their specific needs and preferences. This also opens up opportunities for businesses to capitalize on the latest technologies and trends to drive sales, increase customer engagement, and grow their business.

Below is an example of a basic open system incorporated by various eCommerce platforms.

Composable Commerce System: Image Source: Brink Commerce

Why Composable Commerce Is Critical

Transitioning to a composable commerce platform can offer numerous advantages over traditional re-platforming projects. With the right partner, businesses can implement a modular solution built component by component, allowing for a quicker launch process. 

Below are the benefits of adopting a good composable commerce architecture:

Increased Flexibility

Composable Commerce provides businesses with the ability to quickly create and manage digital products that are tailored to their specific needs. 

This allows businesses to respond quickly to changing customer demands and market trends. Businesses can quickly and easily add new features or functionality to their products, allowing them to stay competitive.

For example, a business may wish to create a new product line in response to a trend in the market, or they may need to adjust the price of their product to meet their customers’ dynamic needs. 

Enhanced Efficiency

Composable Commerce enables businesses to quickly launch new products and services without manual coding or programming. By eliminating manual coding, businesses can quickly deploy new features and functions without spending resources on developing and testing code. 

This allows businesses to focus on what matters most: creating products and services that meet customer needs. For example, Nike launched a new product, Nike Adapt, in November 2016 using Composable Commerce, enabling a quick launch and scale. 

Nike Adapt is a connected shoe that allows customers to customize the fit and design of the shoe using the Nike app. Nike was able to launch the product much faster than traditional methods. It continues to release different types of Nike Adapt through this method.

Nike Adapt BB: Image Source – Sole Collector

Improved User Experience

Composable Commerce enables businesses to create products tailored to their customer’s needs and preferences. This means that customers can select specific components, such as size, color, and features, to create a product that is exactly what they want. 

This allows businesses to create a more personalized and engaging user experience for the customer. Additionally, this could increase customer satisfaction and loyalty, as customers can get exactly what they want with less effort.

Reduced Costs

Composable Commerce helps businesses reduce costs in several ways. First, it eliminates the need for expensive software licenses, allowing companies to save on development costs and associated fees. 

Because it requires less manual coding, companies can avoid costly errors and delays associated with manual coding, saving time and money. Additionally, this mode of commerce helps enterprises streamline their processes, reducing labor costs and improving efficiency. 

The platform’s modular approach will enable businesses to customize their solutions without purchasing additional software licenses, reducing costs.

Increased Sales

Customers are more likely to purchase goods and services tailored to their needs and preferences. This is because the product or service will more likely meet their needs and make them feel valued as customers. 

Businesses can create tailored products and services by gathering customer data such as their likes, dislikes, and interests and using this information to design unique offerings that cater to the individual customer. By doing so, businesses can increase their sales and revenue as customers are more likely to purchase products and services they identify with. 

This approach helps to increase customer loyalty and satisfaction, as customers will appreciate the personalized touch and feel that their needs have been considered. Businesses should prioritize customer feedback and data collection and use this to create customized experiences. 

Additionally, businesses should consider implementing customer surveys, focus groups, and other methods of gathering customer feedback to ensure that their products and services are meeting customer needs. 

Composable commerce experience will definitely lead to an increase in sales. In 2021, the global eCommerce market saw a huge surge in sales, with a total of $4938 billion generated worldwide. 

This represented an increase of 16% from 2020 and a staggering 47% increase from 2019. It is now estimated that eCommerce accounts for 19.6% of all retail sales. 

The COVID-19 pandemic increased the number of online shoppers. Most eCommerce platforms had to update their websites and systems to stay competitive. Customers will likely give up easily on your site if they find it hard to navigate or understand.

Creating the Compasable Commerce Perfect Ecosystem

The key to successful composable commerce is to create an end-to-end ecosystem that embraces all customer touchpoints while allowing the individual components to be independently managed and updated. Below are common components included in this commerce.

Headless commerce

Headless commerce is a form of eCommerce that decouples the frontend user interface from the backend services. This allows businesses to create custom experiences tailored to their customer’s needs while still having access to all the essential services of a traditional commerce platform. 

With a headless commerce platform, businesses can build faster, more efficient websites that increase page load times, improve customer experience, and ultimately boost sales and revenue.

Shopify is an example of a headless commerce platform. It allows businesses to create custom experiences through its API while maintaining essential backend services, such as payment processing, inventory management, and order fulfillment. Shopify also provides tools for merchants to create a fast, user-friendly website, such as page builders and themes.

Shopify: Image Source – Shopney

Headless CMS

A headless CMS is a content management system not bound to a specific front-end technology or platform. This allows developers to separate the content from the presentation layer, allowing them to create and deploy content across multiple channels, platforms, and devices. The headless CMS can create and manage content for websites, mobile apps, and other digital channels. 

Strapi is an example of open-source headless CMS that allows developers to build custom APIs and content-rich applications. It allows users to create, manage, and deliver content across multiple channels with its user-friendly interface. 

Strapi: Image Source – Strapi

Analytics

Analytics engines are essential in helping organizations measure, track, and improve their online presence. Organizations can gain valuable insights into their performance, reliability, and customer experience by using an analytics engine. 

For example, Google Analytics is a powerful analytics engine that helps organizations track website visits, user behavior, and other essential metrics. With this data, organizations can identify areas of improvement, refine their service offerings, and optimize their business operations. 

Search Platforms

Search platforms are vital for eCommerce stores to offer customers a better search experience. These platforms provide a range of features, such as personalized search results, semantic and typo-tolerant search, voice search, Artificial Intelligence-based search, and a suggestion/recommendation engine. 

Integrating these search capabilities into your composable commerce architecture can dramatically improve the user experience and increase conversions. Personalized search results allow customers to quickly find relevant items based on their past search history and preferences. 

Synonyms and typo-tolerant search make it easy for customers to find items even if they’re unsure of the exact spelling or phrase. Voice search and AI-based search functionality allow customers to ask questions in natural language and get accurate results easily. 

A recommendation engine helps customers find items they would be interested in based on their past searches and purchases.

Searchanise is an example of a powerful search platform for eCommerce stores. It offers an optimized search experience, including personalized search results, voice search, and a recommendation engine. It also has features such as autocomplete and typo tolerance, making it easier for customers to find what they want.

Searchanise properties: Image Source – Wix Help Center

Promotional Engine

A promotions engine is a software solution that can manage and automate promotional campaigns for an eCommerce platform. It allows the enterprise to create customized offers and discounts for customers, tracks loyalty points and rewards, and monitor the effectiveness of promotions. 

The engine can be integrated with a CRM technology and eCommerce engine to provide a seamless customer experience. The engine is designed to help enterprises optimize their promotional efforts, maximize customer engagement and loyalty, and increase revenues.

Shopping Cart

Shopping carts are essential components of any eCommerce website. They allow customers to select items they wish to purchase and keep track of them before checking out. A shopping cart is designed to provide a streamlined and secure experience for customers online. The cart typically comprises three core components – product data, order, and catalog management. 

Product data management is the process of collecting and organizing information about the products that are available on the website. This includes product images, prices, descriptions, and other relevant details. 

Order management is managing customer orders, tracking the status of their purchases, and ensuring that the customer receives the items they ordered. 

Catalog management is creating, updating, and managing the product selection on the website. This includes adding new products, updating existing products, and taking products off the website. By providing a secure and efficient checkout experience, shopping carts help to maximize the conversion rate and increase sales.

Samcart is a good example of a shopping cart. It provides an intuitive drag-and-drop builder to create beautiful, highly customizable checkout pages. Merchants also accept payments from all major credit cards, PayPal, and Apple Pay. 

It also offers a range of features, such as a custom “thank you” page, customer segmentation, and upsells and down sells. SamCart integrates with major eCommerce platforms, such as Shopify.

Samcart Page Layout: Image Source – Samcart

Conclusion 

Composable commerce is a powerful way for businesses to stay competitive in today’s rapidly changing markets. By utilizing the benefits of independent, MACH-based solutions, businesses can provide customers with tailored digital experiences that meet their needs. 

Through headless commerce, headless CMS, analytics, search platforms, promotional engine, and shopping cart, businesses can offer customers an engaging, personalized experience that leads to increased customer loyalty and satisfaction. 

With the right approach and technology, businesses can leverage the advantages of composable commerce to stay ahead of the competition, drive sales, and increase profitability. Composable commerce gives businesses the agility to respond quickly to customer needs and the flexibility to create customized experiences. 

It also creates the efficiency to launch products faster, the cost savings from not having to purchase software licenses, and the ability to provide customers with personalized experiences. By leveraging composable commerce, businesses can ensure their customers receive the best possible experience.

Acowebs are the developers of the WooCommerce Variation Swatches Plugin that can transform your product attributes and select dropdowns with the efficient and easy-to-use User Interface. It also has developed various other plugins like WooCommerce Product Table, the multi-currency converter plugin that shows prices in the user’s local currency and helps customers connect to desired products faster. It helps customers quickly compare products and make a judgment easily.