How to Implement Composable Commerce in your E-commerce Strategy?

E-commerce is touching technological advancement and moving away from the monolithic architecture in favor of more flexible, scalable, and adaptable solutions. 

There have been a lot of talks about Composable commerce that permits businesses to create highly tailored and customer-centric online experiences. 

Traditional ecommerce systems come with pre-built packages while composable commerce services allow companies to integrate their best-in-class components. This modern approach helps businesses with the agility and speed that is required to compete in these rapid market changes.

With this guide, let’s dive in together to explore composable commerce platforms, understanding the adaptability of this model and how a composable commerce agency can assist in successful implementation.

Composable Commerce

Composable Commerce is the way where businesses can compose their e-commerce by integrating individual and best-of-breed components. It is often called Packaged Business Capabilities or PBCs.

The components are inclusive of CMS, payment gateways, and search engines. Personalization tools and inventory management systems. It all works together seamlessly. This method contrasts well with traditional e-commerce platforms by bundling all components into one monolithic system.

Benefits of Composable Commerce

Customization

Composable commerce lets businesses choose and integrate components as per their unique requirements. If you need a specific payment provider or a customized CMS, it will be easy for e-commerce to choose it flexibly by choosing them individually. 

This turns out as a significant advantage for the business. As per the recent study by Forrester, businesses using Composable commerce platforms improve 50% of their time-to-market performance.

Scalable

As the business grows, every business needs this. No one wants to change the platform while expanding. With composable commerce services, businesses can scale easily. To upgrade and modify the individual components of businesses can do it without overhauling their entire system. This approach is right for e-commerce companies that are expanding to international markets or have some complex services to offer.

Cost efficient

Cost efficiency is the most overlooked advantage of composable systems as it avoids the hefty licensing fees that are required in traditional platforms. If businesses choose the components individually, they can reduce the upfront and long-term operational costs. 

As per McKinsey report, businesses who are using this strategy are saving 20%-30% in operational costs as compared to the legacy platforms.

Innovation

The E-commerce landscape needs only innovation to run in this competitive market. Whether it’s AI personalization or real-time data analytics e-commerce businesses must have it. Composable commerce allows businesses to integrate this new technology into the existing system swiftly. 

This improves overall customer experience and navigates them easily on your e-commerce platform. Gartner report says that companies using this strategy can release new features faster than the traditional platforms.

Composable commerce use cases

Composable commerce offers flexibility and scalability via modular architecture. It allows companies to pick and choose best-in-class components or packaged business capabilities. This approach delivers tailored solutions across various industries like fashion retailers, global e-commerce brands, and subscription services. Some of the live use cases of composable commerce are:

Fashion retailers

This segment of the business is turning into composable commerce services to meet personalized shopping experiences. The rapid changes in consumer behavior and trends require businesses to use agile systems that can adapt quickly. With the right implementation of a focused system, fashion retailers are using personalized and dynamic pricing to create a more responsive shopping environment.

Zalando, the European fashion e-commerce giant is using a composable commerce platform to adjust the product catalog and integrate personalized recommendations.

Localised experience at scale

Global e-commerce companies are facing unique challenges like handling different currencies and tax systems to deliver region-specific content. 

Composable commerce platforms help these brands to cater the diverse markets without compromising the agility or functionality of the central e-commerce system. With this service, global brands can integrate localized payment gateway and CMS to focus on region-specific language and cultural preferences.

The key benefit is the ability to maintain a centralized back-end while localizing the front-end experience. Nike is using a composable strategy to manage its global e-commerce operations. 

They are using PBCs for regional payment methods and localized content. This allows them to offer a seamless shopping experience across different countries by staying region-specific.

How to implement Composable Commerce?

Transitioning to composable commerce is not a quick process, but a strategic approach that needs careful planning and execution. The step-by-step guide for better implementation is states below:

Assess the current stack

For starters, check your current e-commerce architecture. Identify the components like CMS, payment processing, and customer support to check bottlenecks. Understand what meets the future needs of your business and what does not.

Define the goals

Before picking the composable commerce platform one must be sure about the business goals. Does your business need better customer engagement? Is it planning to scale globally? Find the answers and once you are clear determine which components are most critical to the new system. After careful check, the inclusion of a composable platform gets easy.

Select the right composable platform.

Selection of the right platform is a must. There are different platforms like Elastic Path, Commerce Tools, and Amplience that offer advanced solutions for business to meet their needs. Ensure the platform you pick is API friendly, has headless architecture, and can be integrated with other PBCs without any long and complex procedure.

Choose the composable commerce agency.

Pick the composable commerce agency to navigate through the complexity of implementation. These agencies are experts in handling the unique demands of composable ecosystems, like API integration, data migration, and customization. With the ongoing support in demand, the e-commerce platform must stay agile as the business evolves. The right partnership is essential to make this transition smooth.

Implement right

One of the major advantages of composable commerce is its ability to implement it incrementally. For the start process, replace one or two legacy elements like CMS or search engine. Move gradually to other services onto your new composable commerce platform. This step-by-step process minimizes the risk and allows for adjustment along the way.

Optimize

Once the composable commerce is live, check for the optimization. Monitor the KPIs like cart abandonment, system performance, and conversion rate. Once you identify these areas the improvement will happen. 

Some of the composable commerce services offer advanced tools like tracking and adjusting the system performance in real-time.  

What does the future of Composable Commerce hold?

The e-commerce industry is evolving each day and composable commerce services are the strategy that is keeping the business in the forefront. It allows the business to scale quickly, innovate continuously, and provide unparalleled customer experience. The future of e-commerce will look like this with the inclusion of Composable Commerce:

Personalization: The prospects of Composable commerce will experience hyper-personalization.Today’s consumer needs more attention that caters to their individual needs. Composable commerce services will make it easier for them to integrate this advanced AI tool.

PwC predicts that by 2026, 75% of businesses will adopt AI-driven composable commerce solutions to outperform their competitors.

API first architecture: API is the cornerstone of composable commerce. It allows businesses to easily connect with different tools, and third-party applications, thus delivering a more simple and modular approach. This evolution has already taken off with some companies as per the Mobify report. 

This adoption has reduced the development costs with the faster time-to-market. API ecosystem expansion will make the business even easier by including technologies like voice commerce, augmented reality, and blockchain-based payment gateways.

Edge computing: Speed is critical success for any e-commerce business. As the demand for faster load time grows, composable commerce services will integrate edge computing technologies to work optimally. 

The moving data and computational processes are coming to the edge to reduce latency and improve real-time updates and faster transaction speeds.

For instance, businesses might pick the integration of sustainability-focused components like carbon offset calculators, ethical product sourcing databases, and other tools to allow consumers to choose eco-friendly delivery options. This not only builds trust among customers but also aligns the business with sustainability goals.

Conclusion

Implementation of composable commerce in the e-commerce business can unlock new levels of innovation, flexibility, and scalability. If you are a large global retailer or a niche e-commerce business, a composable commerce platform will work for you. 

The composable commerce agency can set the right path for you to deliver long-term success. With this, every business can assess its current needs, define its goals, and choose the right pathway to support the business as it grows. 

Some agencies can guide c-commerce with the use cases, integration process, and the relevant results that come with this commerce.

Get the ability to integrate best-in-class components which is not just the trend- but the future of e-commerce.