Composable commerce is a new way to build e-commerce systems. It helps retail businesses to innovate, adjust, and succeed in a competitive market.
This blog covers the basics of composable commerce: its definition, importance, differences between traditional and composable commerce, and technology and architecture.
What Is Composable Commerce?
Composable commerce is an approach to e-commerce that allows businesses to customize their online commerce platform by selecting important features. It integrates individual, best-of-breed components, services, and microservices.
Unlike traditional platforms, composable commerce emphasizes flexibility and scalability, leveraging modern architectural principles such as microservices, APIs, cloud-native technologies, and headless commerce. This enables businesses to create custom, future-proof solutions tailored to their unique needs.
Gartner defines composable commerce as a concept that allows enterprises to “assemble or disassemble their tech stack on-demand based on changing business needs and customer expectations.”
Why Does Composable Commerce Matter?
Composable Commerce matters because it empowers businesses to stay competitive, adaptable, and innovative in an ever-changing digital marketplace. By enabling a modular, flexible approach to building e-commerce systems, it addresses the challenges of traditional monolithic platforms and provides solutions tailored to modern consumer demands and business needs. Let’s look into the reasons for and benefits of composable commerce.
1. Adapting to Rapid Market Changes
Consumer preferences and market trends are constantly evolving. Composable Commerce allows businesses to quickly adapt by swapping or upgrading individual components without disrupting the entire system.
Why it Matters:
- Stay competitive with fast responses to trends.
- Implement new technologies as they emerge.
- Experiment with features to meet customer expectations.
2. Delivering Personalized Customer Experiences
Modern customers expect tailored shopping experiences. Composable Commerce enables businesses to customize every aspect of their e-commerce journey, ensuring a unique experience for each customer segment.
Why it Matters:
- Boost customer engagement and loyalty.
- Offer region-specific experiences for global markets.
- Leverage AI and data analytics for hyper-personalization.
3. Breaking Free from Monolithic Constraints
Traditional monolithic platforms are often rigid and costly to upgrade. Composable Commerce offers a more agile alternative, allowing businesses to avoid vendor lock-in and choose the best technologies for their needs.
Why it Matters:
- Save time and money on extensive overhauls.
- Choose solutions that align with business objectives.
- Avoid reliance on a single vendor for innovation.
4. Accelerating Innovation
Composable Commerce fosters innovation by enabling businesses to experiment with new tools and functionalities without risking the stability of the entire platform.
Why it Matters:
- Test and deploy new features quickly.
- Stay ahead of competitors by embracing cutting-edge technologies.
- Foster a culture of continuous improvement.
5. Enabling Seamless Scalability
As businesses grow, their e-commerce needs evolve. Composable Commerce supports this growth by allowing incremental upgrades and expansions rather than costly system-wide changes.
Why it Matters:
- Scale efficiently with minimal disruption.
- Enter new markets or channels with ease.
- Support increased traffic and transactions during peak periods.
6. Future-Proofing E-Commerce Investments
Technology evolves rapidly, and businesses need systems that can adapt over time. Composable Commerce ensures your tech stack remains relevant by supporting continuous updates and integrations.
Why it Matters:
- Maximize ROI on technology investments.
- Reduce the risk of obsolescence.
- Build a foundation for long-term success.
7. Supporting a Global Digital Economy
In the age of globalization, businesses need tools that cater to diverse markets and regulations. Composable Commerce allows for localized solutions and integrations.
Why it Matters:
- Comply with regional laws and tax systems.
- Customize product offerings for different markets.
- Enhance cross-border e-commerce strategies.
Traditional Commerce vs. Composable Commerce
The choice between traditional and composable commerce significantly impacts how businesses build, manage, and scale their e-commerce systems. While traditional commerce platforms offer simplicity and a one-size-fits-all approach, composable commerce emphasizes flexibility and customization to meet unique business needs. Here’s a closer look at how they compare:
The Advantages of Composable Commerce over Traditional Commerce
| Composable Commerce | Traditional Commerce | |
| Architecture(Modular vs Monolithic) | The system utilizes a modular architecture, allowing each functionality to operate as a separate component (microservice) that can be independently updated or replaced. | The system typically utilizes a monolithic architecture, tightly integrating all functionalities, such as checkout, catalog, and payment, into a single framework. |
| Customization(Limitless vs Limited) | It offers near-limitless customization, as businesses can choose best-of-breed solutions for each functionality. Allows seamless integration of third-party tools to create a tailored e-commerce experience. | Limited customization options: businesses often must adapt to the platform’s capabilities. Customizations can require extensive coding and may lead to system instability. |
| Scalability (Individual Upgrade vs Whole Upgrade) | Modular design enables the scaling of individual components. | Scaling often involves upgrading the entire system, which can be time-consuming and expensive. |
| Speed of Innovation(Faster vs. Slower Adoption) | Enables faster innovation by allowing businesses to adopt new tools and features as they emerge. | Innovation is slower due to reliance on a single vendor for updates and new features. |
| Cost Efficiency | Businesses pay only for the necessary components, optimizing costs and demonstrating a prudent approach to resource management. Long-term savings are achieved through modular upgrades and reduced vendor dependency. | It often includes fixed features, meaning businesses pay for functionalities they might not use. It’s cheaper to start, but overhead costs for customizations and upgrades can add up. |
| Time to Market | Requires more time upfront for setup, as businesses must choose and integrate components. Once in place, new features and updates can be deployed more quickly. | It is faster to set up initially since everything is pre-packaged. However, introducing new features or making changes can delay go-to-market timelines. |
| Vendor Lock-in | Businesses can swap out individual components for better alternatives as needed, ensuring they are not tied to a single vendor. | Businesses are tied to a single vendor, making it difficult to switch or replace system parts. |
Choosing the Right Approach
Traditional Commerce: Suitable for small to mid-sized businesses with straightforward e-commerce needs and limited resources for managing complex systems.
Composable Commerce: Best for growing or enterprise-level businesses seeking flexibility, scalability, and a competitive edge through innovation.
While traditional commerce platforms may work for businesses seeking simplicity, composable commerce provides the advantages required in today’s e-commerce landscape. The choice depends on your business needs, resources, and long-term goals. However, composable commerce offers clear benefits for those aiming to future-proof their operations, providing a sense of reassurance and forward-thinking.
Examples of Composable Commerce in Action
Curio Case Study
Curio, a design-focused e-commerce brand, transformed its online store into a dynamic marketplace using Marketplacer’s commercetools connector. This composable commerce approach enabled enhanced features like dynamic invoicing, shipping updates, and real-time status notifications. These tools improved transparency and streamlined buyer-seller interactions, connecting creative makers with buyers more effectively. The marketplace model celebrated craftsmanship and fostered community growth, offering flexibility and an enriched customer experience.
For more details, visit the Curio case study.
Lasoo Case Study
Lasoo reimagined its online shopping experience by launching a new marketplace powered by Marketplacer. This platform integrated seamlessly with Lasoo’s web and app environments, enabling personalized features like location-based searches, tailored product recommendations, and dynamic shopping lists. Marketplacer’s flexibility allowed retailers to easily onboard and synchronize inventory, enhancing operational efficiency and customer convenience. By unifying transactions without redirecting to external sites, Lasoo elevated its shopping platform’s usability and streamlined the customer journey.
For more details, visit the Lasoo case study.
Klika Case Study
Klika, one of Australia’s early online-only retailers, expanded its operations by adopting Marketplacer’s platform in 2020. The shift to a marketplace model allowed Klika to integrate with over 30 retailers, boosting its sales and customer reach. The scalable solution streamlined operations, enabling quick product listing with multimedia support.
Marketplacer also facilitated partnerships with major retailers, driving substantial sales growth, including a 30% increase for one partner. The model improved efficiency, enhanced the customer experience, and positioned Klika for sustained growth.
For more, visit the Klika case study.
How Does Marketplace Support Composable Commerce Architecture
Marketplacer works seamlessly with traditional e-commerce (monolithic) and modern, customizable platforms (composable commerce). It helps businesses adapt and grow, no matter what kind of setup they use. Here’s how:
For Traditional E-Commerce Platforms:
- Seamless Fit: Marketplacer enhances traditional, all-in-one platforms by plugging in underneath the existing system without disrupting how things work.
- Fast Integration: With ready-to-go solutions, Marketplacer connects quickly to your platform, saving time and reducing risk.
For Composable Commerce:
- Customizable and Flexible: Composable commerce lets businesses pick and choose the tools they need, and Marketplacer fits right in, seamlessly allowing you to add third-party product selling.
- Smooth Data Flow: Whether your system works in real-time (PUSH) or through traditional API connections (PULL), Marketplacer supports both for accessible communication between systems.
- Better Customer Experience: Marketplacer’s tools ensure smooth coordination between sellers, customer service, and communication systems, so customers always get top-notch service.
One Platform, Endless Possibilities:
Marketplacer bridges the gap between traditional and modern systems, allowing businesses to evolve. Whether you’re sticking with your current setup or moving toward something more modular, we can help you grow without missing a beat.
Contact us and let us show you how Marketplacer can work for your business today!
