In the ever-evolving world of retail, adaptability and innovation are the keys to success. Traditional commerce platforms have long been the go-to solution, offering a one-size-fits-all approach from a single vendor. While this approach has its merits, it often falls short in meeting the diverse and evolving needs of modern branded manufacturers.
Let's start with an analogy...
If you were having issues with the plumbing in your home, you wouldn’t call a general handyman to come take a look. Sure, the handyman probably has some basic plumbing knowledge, but if you want the fix done well (and not need to call someone else in a few years when it breaks again), you need to call a professional plumber.
The same sentiment can be true for a brand’s technology solution.
The key to deciding what type of technology stack to build depends on a brand’s business model and goals. If it’s a retailer selling mainly wholesale or B2B, then a traditional commerce platform may be the right fit.
However, if it’s a branded manufacturer or merchant who leans heavily into the direct-to-consumer space or wanting to create a seamless omnichannel experience, then the traditional commerce platform may not be the best solution. Let’s take a look at the pros and cons of traditional commerce platforms.
Pros:
Cons:
Until recently, retailers relied on monolith technology, where everything was run by one main vendor. However, the rise of omnichannel shopping and increasing customer expectations made this approach outdated. The need for seamless experiences across channels and the complexity of modern commerce required a new solution.
Composable commerce is the game-changing approach that empowers brands to select and assemble the best technology platforms to meet their unique needs. Instead of fitting your business into a predefined box, composable commerce allows you to craft a tailored solution. It leverages modern technology, including open APIs, to enable you to swap out or upgrade components as your business scales.
Composable commerce is ideal for businesses that demand flexibility, scalability, efficiency, and lower costs. Gartner defines composable commerce as using “packaged business capabilities to build a future-proof digital commerce experience”.
According to Elastic Path, 72% of retailers already use composable commerce in some capacity, with 21% planning to adopt it this year.
The basic tenets of composable commerce include being cloud-based, user-friendly, modular, tech-agnostic, and having an open ecosystem for integrations. Let’s dive into the pros and cons of composable commerce solutions.
Pros:
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Cons:
One of the standout benefits of composable commerce is the ability to build a unified commerce experience. Brands can select the best components for their unique needs, whether it's the best commerce platform, order management system, personalization platform, or tax vendor. This approach allows businesses to create differentiated experiences, even with complex backend requirements.
Gartner introduced the concept of “Packaged Business Capabilities”, which are defined software representing specific business functions. These complete units serve as building blocks for crafting a tailored technology stack (aka composable commerce). PBCs are known for their seamless integration capabilities with other technologies.
The key to building a composable commerce technology stack depends on a brand’s business objectives and goals. Because they are only building what they need, each technology stack will look different. That’s why many brands and merchants feel like their composable technology stack gives them a competitive advantage in the market.
Here’s an example of what a brand’s composable commerce technology stack might look like:
Order management is vital for customer retention and acquisition as it allows brands to craft seamless customer experiences throughout the entire lifecycle of an order.
While brands leverage different systems through the buyer experience, (i.e. storefront, ERP, POS, WMS, TMS, etc.) an OMS sits in the center of the composable commerce solution, overarching and unifying all of the systems. It serves as the single source of truth for orders.
An OMS will give retailers access to all the order information and history your finance, fulfillment, IT, and customer service teams need at the various points of the order lifecycle.
Plus, a dedicated order management system (like Deck Commerce) that functions as a "PBC" offers seamless integrations with other best-in-breed technology vendors allows brands and merchants to create their ideal technology stack.
Because of this, an OMS is arguably one of the most important components of a brand's composable commerce solution. Merchants looking to switch to a composable solution should consider their order management a foundational piece of the puzzle.
Headless commerce is a buzzword in the commerce industry and can create a lot of confusion if misunderstood when trying to build your own technology solution.
Simply put, headless commerce decouples the front-end presentation layer (what shoppers see) from the backend commerce engine layer. Headless commerce is one aspect of composable commerce, while composable commerce takes a holistic approach to move away from monolith systems, offering flexibility and scalability, not just basic functionality.
In a world where adaptability is paramount, composable commerce enables brands and merchants selling directly to consumers to thrive in a rapidly changing landscape. It's the future of commerce, offering the flexibility, scalability, and innovation needed to stay ahead of the competition while offering consumers seamless and unique shopping experiences.