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July 18, 2024

Composable commerce: benefits, strategies and best practices

Composable commerce: benefits, strategies and best practices

Composable commerce is transforming the ecommerce landscape by enabling businesses to create tailored IT solutions that precisely meet their needs. Unlike traditional, all-in-one platforms, composable commerce allows for the selection and integration of the best tools and services for each unique business requirement. Besides enhancing flexibility and scalability, this approach ensures cost-efficiency and rapid implementation of tools.

As the need for a customized and efficient IT landscape continues to grow, understanding how composable commerce can transform your business operations becomes essential. In this blog post, we will explore the benefits of composable commerce, outline the key elements of an effective strategy, and provide practical steps for implementation. 

What is composable commerce?

Composable commerce is an innovative approach to building and managing ecommerce ecosystems. Unlike traditional monolithic systems, composable commerce allows businesses to select and integrate the best components for their specific needs, creating a highly customized and efficient solution. This method breaks down the ecommerce infrastructure into modular pieces that can be mixed and matched to fit unique business requirements.

In essence, composable commerce empowers businesses to choose from a variety of specialized tools and services, such as shopping carts, payment gateways, content management systems, and customer relationship management tools. Each of these components can be independently developed, deployed, and scaled, offering flexibility and agility.

Key aspects of composable commerce include:

  • Modularity: the ability to pick and choose components from different providers to build a tailored solution.
  • Interoperability: ensuring all chosen components work seamlessly together to provide a cohesive customer experience.
  • Customization: adapting and extending functionalities to meet specific business needs and customer expectations.

Composable commerce stands in contrast to traditional ecommerce platforms, which often come with limitations such as inflexibility, high costs, and lengthy implementation times. By adopting a composable approach, businesses can avoid these pitfalls and enjoy a more dynamic, responsive, and tailored IT landscape. This flexibility empowers businesses to quickly adapt to market changes, implement new tools, and provide a better customer experience.

The top 4 benefits of composable commerce

More and more businesses are adopting composable commerce strategies to enhance their operations and build a flexible, scalable, and cost-efficient tech stack. By adopting this approach, companies can achieve better customer experience and improved business performance. Here are the top benefits of using composable commerce:

Flexibility and customization

One of the standout advantages of composable commerce is the ability to choose and integrate best-of-breed solutions that meet specific business needs. This means you can tailor your digital infrastructure to perfectly align with your unique requirements, allowing for easy adjustments and replacements when needed.

Scalability

Composable commerce makes it easy to scale individual components of your system. Whether you need to handle increased traffic during peak shopping seasons or expand your product offerings, you can scale specific tools of your system without replacing the entire infrastructure.

Cost efficiency

With composable commerce, you pay for what you need, avoiding the expenses associated with large, monolithic platforms that often come with unnecessary features. By selecting only the components that are essential to your operations, you can reduce costs and allocate resources more effectively. 

Speed to market

The modular design of composable commerce allows for the rapid implementation of new tools. This flexibility enables you to quickly address business needs, adapt to market trends, meet customer demands, and stay ahead of the competition.

Key elements of a composable commerce strategy

Creating a successful composable commerce strategy involves understanding and implementing several key elements. These components ensure your ecommerce infrastructure is flexible, scalable, and efficient.

Microservices architecture

At the heart of composable commerce is the microservices architecture. This approach breaks down an ecommerce system into small, independent services or tools that perform specific functions. Each microservice can be developed, deployed, and scaled independently, allowing for greater flexibility and agility. This modularity enables you to update or replace individual components without disrupting the entire system, making it easier to innovate and adapt to changing business needs.

API-first approach

APIs are essential in a composable commerce strategy. An API-first approach ensures that all components can communicate and integrate seamlessly. APIs act as connectors between different services, enabling data exchange and functionality across your technology stack. This interoperability creates an efficient ecommerce environment where all tools can communicate together harmoniously.

Cloud-native solutions

The cloud-native aspect enables the building and deployment of your technology landscape on cloud-based platforms, providing scalability, reliability, and cost efficiency. 

Headless Commerce

Headless commerce is an integral part of composable commerce, separating the front-end presentation layer from the back-end functionality. This decoupling allows you to create highly customized and flexible user experiences across different channels and tools. 

The role of SaaS and iPaaS in composable commerce

Software as a Service (SaaS) and Integration Platform as a Service (iPaaS) play vital roles in the success of composable commerce by providing essential tools and integration capabilities. 

SaaS solutions offer specialized, cloud-based applications for various business functions, such as PIM for product data management, WMS to manage and control warehouse operations, CRM to handle customer interactions, and more. These applications are usually easy to implement and maintain, allowing businesses to access advanced functionalities. SaaS solutions ensure that businesses stay updated with the latest features and improvements, contributing to a dynamic and efficient ecommerce system.

On the other hand, iPaaS solutions, like xCore, Alumio or Orderchief, facilitate the seamless integration of these diverse SaaS applications and other components within the ecosystem, providing the necessary tools and services to connect different systems. This structure is essential for maintaining a cohesive and efficient ecommerce environment where all parts work together harmoniously. 

Steps to implement composable commerce

Implementing composable commerce involves a series of strategic steps to ensure a smooth transition and effective integration of various components. It’s important to remember that implementing a composable ecosystem is not a one-time task, but an ongoing process. As the market evolves, your business must adapt continuously. Here’s a guide to help you through the process:

1. Assessment and planning

Evaluate your current tech stack: start by assessing your existing ecommerce infrastructure. Identify the strengths and weaknesses of your current system and pinpoint areas that require improvement or replacement.

Define your goals: clearly define your business goals and objectives. Determine what you aim to achieve with composable commerce, such as improving flexibility and scalability or optimizing operations.

2. Choosing the right components

Identify your business needs: understand your business requirements and research the best-of-breed solutions that address these needs.  

Consider SaaS and iPaaS solutions: incorporate SaaS applications for specific business functions and use iPaaS to integrate these applications into your overall system.

Select vendors: conduct a thorough research to choose vendors that offer the best solutions according to your identified needs. 

To ensure the successful selection of tools and implementation of strategies, it is highly recommended to lean on experts. These professionals are equipped with specialized knowledge in best of breed tools and areas such as replatforming, marketplace integration, ecommerce strategy development, and operational enhancement. Relying on experts rather than a do-it-yourself approach ensures that your composable commerce strategy is well-planned and executed, providing the best possible outcomes for your business, avoiding costly mistakes and downtime.

3. Maintaining your composable stack

Stay informed: keep yourself and your team up-to-date with the latest trends, tools and technologies to adapt to your business needs, market demands, and stay ahead of competitors.

Plan for future growth: ensure your composable commerce strategy includes plans for future expansion. This involves regularly reassessing your business needs and being prepared to integrate new components as your business evolves.

A real-life example of composable commerce success: Ridam Online

Ridam Online's transition from traditional retail to a robust ecommerce presence exemplifies the power of composable commerce. Founded in 1970, Ridam moved from supplying private-label goods to embracing digital sales through marketplaces and multiple Shopify webshops.

Facing challenges in managing inventory and orders across diverse channels, Ridam turned to KatanaPIM and ChannelEngine. KatanaPIM simplified product information management, while ChannelEngine ensured seamless synchronization of orders, inventory, and product data. Integration with their ERP, Exact Globe, and logistics partner, Montapacking, streamlined their operations across various sales channels.

Thanks to this composable tech stack, Ridam enhanced their customer experience and solidified their online presence. With a flexible, scalable system in place, the retailer is well-positioned for future growth and expansion in the European market.

Key elements of Ridam’s composable infrastructure - Modular integration: different systems (Exact Globe, Clickker, KatanaPIM, Monta, and ChannelEngine) are integrated to work together, each handling specific functions. Data flow: information flows seamlessly between tools, ensuring all parts of the system communicate effectively. Flexibility: components can be independently updated or replaced, providing flexibility to adapt to changes in business needs or market conditions.

Future-proof your ecommerce with expert guidance

The first step in implementing a composable commerce strategy is to be well-informed. This article has provided a comprehensive overview of what composable commerce is, its benefits, and the key elements of a successful strategy. 

As the market continues to evolve, future-proofing your business with a flexible and scalable composable commerce approach is essential. Implementing such a strategy can be complex, and expert guidance can really make the difference. Ecommerce specialists can provide valuable insights and support in selecting the right tools and technologies, ensuring a seamless and efficient transition. 

KatanaPIM is an easy to use, easy to integrate and easy to implement SaaS solution that helps businesses managing product data, enabling integration and synchronization across various channels and tools. With KatanaPIM, teams can collect, enrich and validate product content from a single platform and get the products ready for distribution across multiple sales channels.

Through our extensive ecosystem of partners, we assist businesses in every goals and objectives, from replatforming to optimizing processes, increasing sales and more.

Would you like to have more information? Reach out today or try PIM for free!

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Composable commerce: benefits, strategies and best practices

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