What is Composable Commerce, and Why Will it Change Your Business?

Gartner, the premier market analyst agency, coined the term "composable commerce" and forecasted that adopting a modular building approach for technology systems is not a passing trend. This approach has evolved into a more refined version of composable systems with the advent of a cloud-native, component-based ecosystem. Being able to build anything faster, be more agile, and better adapt to change offers a significant advantage for companies.

In this article, we will understand the core concepts of composable commerce and explore why companies are taking interest in it.

What is Composable Commerce?

Composable commerce is a modular approach to building solutions with flexibility and freedom, enabling organizations to replace out-of-the-box solutions with tailored components. This approach allows them to create exceptional shopping experiences through modular components. Here are the key characteristics of composable commerce:

• Cloud-Native: Software that is cloud-native can fully leverage cloud architecture, reducing maintenance costs while increasing scalability and faster time-to-market. Enterprises can scale without missing major events, ensuring they are always ready.
• Component-Based: A composable system is built from individual components, such as search, cart, or checkout, which can be added or swapped based on need. By connecting these components via a web-API-first approach, businesses can mix third-party, best-of-breed resources with cost-effective in-house applications.
• Tech-Agnostic: Composable commerce allows businesses to pick and choose the latest tools and technologies, freeing them from any proprietary technology and vendor lock-in.

By combining cloud-native, component-based, and tech-agnostic software, composable commerce enables brands to deploy unique customer experiences across any touchpoint and adapt much faster to unforeseen changes in business requirements without being hindered by legacy, monolithic systems.

Composable Commerce is the New Cool — But Why?

Legacy IT platforms are often monolithic and difficult to customize or update. This rigidity stands in stark contrast to today's rapidly evolving world, which demands companies to be as innovative and efficient as possible. The gradual trend towards composable commerce, especially with companies like Walmart now adopting dynamic ecosystem models, provides an affordable way for businesses to phase out their monolithic systems while maintaining control.

A case in point is the 2020 baby formula crisis. How did Danone, with its composable commerce vision, respond to it? By leveraging composable commerce, Danone was able to pivot rapidly into Direct-to-Consumer (D2C) sales, delivering essential nutrition products directly to parents' homes during the COVID-19 period.

The Benefits of Composable Commerce

There are three main benefits of composable commerce:

1. Infinite Scalability: Enterprises can scale their infrastructure automatically based on real data, ensuring they are always prepared for peak volumes, such as Black Friday or other high-demand events.
2. Limitless Flexibility and Agility: Composable commerce allows businesses to modify individual components without overhauling the entire platform. This flexibility enables faster innovation and quicker responses to evolving customer requirements.
3. Cost Optimization: Composable commerce allows businesses to maximize their investments with plug-and-play components that integrate seamlessly, eliminating the need for expensive upgrades and reducing overall maintenance costs.

Composable Commerce – The Easiest Way to Simplify & Cut Costs

While composable commerce may sound complex, the reality is quite the opposite. It can actually reduce costs for retailers. Modular architecture and interchangeable components ensure that businesses can easily manage and maintain their technology stacks.

• Higher Speed to Market: New solutions can be quickly adopted without incurring integration costs.
• Scalability: Cloud-native SaaS solutions offer endless scalability without the need for companies to host their own servers.
• Developer Efficiency: Modern technology enables developers to work faster, which accelerates innovation.

Composable Commerce and Omnichannel for Customers

Personalization is key to upselling and cross-selling, raising the bar for the omnichannel customer experience. With the help of composable commerce, brands can provide fast, mobile-first experiences that can scale infinitely.

For instance, beauty retailer Trinny London enabled a "try-before-you-buy" feature with relevant sample products featured during purchase.

Beginning Your Composable Commerce Journey

Starting with composable commerce doesn’t mean you have to replace your entire e-commerce platform all at once. Begin by solving your most painful problems, such as fixing a weak checkout flow. This approach allows for quick troubleshooting and faster realization of business value through phased deployment.

For example, Trendhim successfully implemented composable commerce by gradually moving its systems piece by piece, starting with less risk-intensive parts of the business, such as fulfillment. This phased approach not only creates a smoother transition but also allows for thorough preparation ahead of the actual migration day, ensuring control is maintained throughout the process.

Ready to Go Beyond the Monolith and Take Control of Your E-commerce?

Contact Ignitiv’s experts for Composable Commerce implementation.