Unlocking Composable Commerce:

When a US fashion label had a viral promotional campaign, driving a threefold surge in website traffic, surpassing their largest Black Friday sale, the company was prepared. The brand's auto-scaling systems ensured a seamless shopping experience without any slowdowns. The secret behind their success was in the adoption of composable commerce. This transformational strategy empowered the brand to make five major digital experience changes in just three months, related to payments, revamp of product pages, and loyalty program.

In the past few years, composable commerce with its tailor-made, plug-in-as-you-play functionality has put retail businesses on the fast-track of digital innovation. A UK perfumer saw a 155% growth in sales in the past five years after switching to a composable commerce stack.

In this article, we explore:

• Why we need composable commerce
• Limitations of monolithic and headless
• Preparing for an upgrade

Why we need composable commerce

Composable commerce streamlines processes by offering tailored solutions through APIs and software integrations, enabling retailers to create a customized tech stack. This approach allows seamless integration of multiple vendor solutions while presenting customers with a cohesive commerce experience

Businesses that want to enhance customer journeys feel a boxed monolithic system doesn’t work in these times of rapid change. Here’s are some of the reasons why we need composable commerce:

Limitations of monolithic and headless

Monolithic architectures were popular for smaller applications due to their single deployment unit and availability of mature development tools. Retailers using monolithic architectures have encountered various challenges, especially during sale season when the system struggles to handle increased traffic.

Headless commerce is considered superior to a monolithic system due to its flexibility, scalability, and faster development. Headless has its limitations too. It introduces complexity, requiring separate development and maintenance of front-end and back-end systems. As an answer, composable commerce was developed to provide greater flexibility and modularity than monolithic or headless. Composable allows businesses to assemble and integrate best-of-breed commerce components, including backend services, front-end experiences, and specialized capabilities like inventory management, into a unified commerce architecture.

Preparing for an upgrade

A Mckinsey report expects e-commerce sales to double by 2026 and observes how that is driving sizeable investments from companies in their e-commerce capabilities. In this period of tech transformation, composable commerce with its flexible modular approach is the best chance for a retailer wanting to stay ahead of the competition at present.

While composable commerce leverages API-first, cloud-native applications to enable retailers to build a flexible, customizable tech stack, it is an advanced structure that needs a lot of planning to be effective. Putting together different solutions from a variety of vendors has its own set of hurdles and is best suited for digitally mature brands capable of adopting a segmented architecture. Here are some things to keep in mind before joining the bandwagon:

Complexity of Integration:

Retailers should be prepared for the complexity that comes with managing these integrations, ensuring compatibility, and handling potential dependencies or conflicts between different components.

Technical Expertise:

A certain level of technical expertise to implement and maintain composable commerce. Retailers should assess their in-house capabilities and consider whether they have the skills or resources to handle the complexities of a composable architecture or invest in training.

Vendor Selection:

Retailers should carefully evaluate and select vendors for each component or service in their composable architecture. It's crucial to consider factors such as vendor reliability, support, long-term viability, and the ability to integrate smoothly with other components in the system.

Governance and Management:

Clear guidelines, standards, and processes are required for managing components, versioning, updates, and handling dependencies. It's important to ensure proper coordination and governance to avoid fragmentation or conflicts within the system.

Performance and Stability:

With a composable architecture, there is a higher degree of interdependence between components. Retailers should thoroughly test and monitor the performance, stability, and scalability of the entire system to ensure seamless functioning.

Long-Term Costs:

While composable commerce offers flexibility, the long-term costs associated with managing and maintaining multiple components from different vendors should be noted. This includes licensing fees, support contracts, ongoing integration efforts, and potential challenges in replacing components in the future.

Security and Compliance:

Since each component in a composable architecture may have its own security protocols and compliance requirements, it is crucial to ensure that the integration of different components doesn't compromise data privacy or compliance with relevant regulations.

Implementing composable commerce requires careful consideration and preparation. Retailers must evaluate their technical expertise, resource allocation, and vendor selection to ensure successful integration and long-term sustainability. While composable commerce offers numerous advantages, it may not be suitable for every retailer. Smaller businesses with limited resources or simpler business models may find traditional architecture more practical. It is crucial for retailers to assess their specific needs, capabilities, and long-term goals before embarking on the journey of adopting composable commerce.

Conclusion

Composable commerce presents a compelling opportunity for retailers to enhance their e-commerce capabilities, improve customer experiences, and stay ahead in a rapidly evolving digital landscape. With its flexible and modular approach, composable commerce empowers retailers to construct customized tech stacks by integrating specialized solutions and services from various vendors. The success stories of renowned brands demonstrate the tangible benefits that can be achieved through the adoption of composable commerce.

As e-commerce continues to evolve, composable commerce provides a path to future-proofing retail businesses. Its flexibility, scalability, agility, and focus on customer experience position it as a powerful tool for driving innovation and staying competitive. By carefully navigating the complexities and considerations associated with composable commerce, retailers can unlock the full potential of this modern approach and pave the way for their digital success.