E-commerce has become a dominant sales channel in retail due to its convenience, accessibility, and ability to reach a global audience.
In fact, in 2024, e-commerce accounted for 20.1% of total global sales 1, which marked the first time it surpassed the 20% threshold worldwide.
But as e-commerce has grown, so have customers’ expectations. Shoppers, both in the B2B and B2C space, now demand faster, more personalized, and smoother experiences. This shift has put mounting pressure on retailers to continually innovate and improve their digital selling operations, particularly through automated inventory management
For years, retailers have relied on monolithic e-commerce platforms to manage their online operations. These are all-in-one systems that manage everything from product listings and checkout to content and data. They offer the simplicity of having all the primary tools you need to sell online in one place.
But in the current market, these systems have become increasingly restrictive. Every part of a monolithic platform is tightly connected, so making even a small change, such as adding a new feature or integrating a new tool, can be slow and costly. This lack of flexibility makes it difficult for retailers to keep up with new trends, adapt to customer needs, prevent issues like overselling e-commerce products, or innovate as quickly as the market demands.
Such limitations have given rise to composable commerce, which is a modern approach that allows retailers to build flexible, modular digital ecosystems using best-in-class tools for each function.
In this guide, we’ll tell you more about composable commerce, including the core technologies behind it, how it differs from traditional e-commerce models, and why it’s becoming an essential strategy for modern e-commerce growth.
Composable commerce represents a shift away from the unified, tightly-coupled technology systems of the past. To understand its significance, it helps to first look at how it relates to previous generations of e-commerce architecture.
Traditional e-commerce platforms are monolithic in nature in that they provide a rigid, single-stack solution where the front-end (customer view), business logic (pricing, inventory), and back-end systems are intertwined. Changing one part often requires updating the entire system.
Headless commerce was the first step towards modularity. It introduced a separation between the front-end (i.e., the customer-facing touchpoints like websites or apps) from the back-end commerce system. This enables brands to update or redesign the front-end independently of the back-end, creating more flexibility in how customer experiences are delivered. However, the back-end often remains a single, integrated suite of tools, which can limit the ability to swap in specialized solutions or adjust individual functions.
Composable commerce takes this concept of separation much further. Instead of using one big system, you pick the best tools for each function—like a specialized order management system, a powerful content management system,a top-notch payment solution, or even separate tools for inventory forecasting, and connect them with application programming interfaces (APIs). APIs are like translators that let all these separate systems talk to each other seamlessly.
The result is a fully customized e-commerce setup that’s tailored to your specific needs and that can evolve easily as your business grows or requirements change.
Research shows that more than 9 in 10 retail brands 2 have already adopted a composable commerce approach.
Let’s look at the primary components that make up a composable commerce stack.
The core commerce engine is the system responsible for the fundamental commerce operations. It manages the catalog of products, pricing rules, inventory levels, and order lifecycle management. Essentially, it’s the hub where all transaction-related data and processes reside, forming the foundation for selling products and services.
The front-end experience layer is the interface that delivers the customer-facing experience. This includes websites, mobile apps, and other digital touchpoints. It handles presentation, navigation, search, product display, and the checkout experience. Essentially, it provides the mechanisms through which customers interact with the commerce system.
In a composable commerce setup, this layer is decoupled from the back-end, which enables brands to create fully customized storefronts or customer experiences tailored to different channels.
APIs, as we saw earlier, enable different systems, services, and platforms to communicate and exchange data. Microservices break commerce functions into independent, self-contained modules, such as pricing, promotions, or payment, that can be developed, deployed, and updated separately. Together, they allow for modular, scalable, and agile commerce operations.
Supporting tools are specialized systems that complement the core commerce engine and front-end layer.
These include product information management (PIM) for structured product data, order management systems (OMS) for coordinating orders and fulfillment, content management systems (CMS) for managing content, customer relationship management (CRM) for tracking customer interactions, and logistics or fulfillment platforms. These specialized tools enhance operational performance and enable seamless processes across channels, especially when paired with an advanced order management software.
Cloud-native infrastructure means that the e-commerce system is built and hosted on remote servers, i.e., the cloud, rather than on traditional physical servers. This offers several key benefits:
|
Feature |
Composable Commerce |
Traditional E-Commerce Platforms |
|
Flexibility and Customization |
Businesses can tailor each component of the digital ecosystem, including front-end design, checkout flows, and promotional features. Every element can be adjusted independently to match brand identity and customer needs. |
Platforms rely on fixed templates and preset features, which limit customization. Innovation is slower, and unique experiences often require complex workarounds. |
|
Integration and Maintenance |
APIs enable smooth integration between specialized tools. These tools can be updated, replaced, or connected independently. |
All components are tightly coupled. Updates or new features often require upgrading the entire system, which can interrupt operations and increase dependency on the vendor. |
|
Cost Structure |
Businesses pay only for the components they use, so costs are aligned with actual needs. This approach allows for financial optimization and flexibility as requirements change. |
Platforms typically require licenses for the full software suite, even if many features go unused. This bundled pricing can increase total costs without proportional value. |
|
Scalability and Future Readiness |
Modular components allow independent scaling of functions. The system can adapt quickly to increased traffic, new channels, or additional features, making it more future-ready. |
Scaling can be challenging because specific functions cannot always be adjusted independently. Growth or new features may require significant redevelopment or a platform upgrade. |
As businesses seek more agility and responsiveness in e-commerce, moving to a composable commerce model offers significant advantages.
A composable architecture significantly shortens the time it takes to develop and deploy new features. Because the platform is divided into independent microservices or components, development teams can iterate, test, and deploy changes to a single element without touching the entire system.
This allows teams to work in parallel, integrate modern tools quickly, and continuously push small, impactful updates. It creates a culture of continuous improvement, which enables a business to stay ahead of market trends and consistently deliver cutting-edge customer experiences.
Composable setups provide a safe, low-risk environment for conducting business-critical experiments.
Teams can run A/B tests on specific elements, like a new checkout flow, product page layout, or personalized content, without jeopardizing the stability of core commerce functions. And if an experiment fails to deliver the desired results, you can quickly swap it out or deactivate it without a catastrophic impact on your entire site.
One of the most powerful long-term benefits of composability is the elimination of vendor lock-in and the need for expensive, disruptive full replatforming projects.
If a particular system becomes outdated, underperforms, or a better alternative emerges, you can replace it with a superior solution relatively easily. This model future-proofs your investment, allowing your business to continuously maintain a modern, high-performing technology stack by simply upgrading or swapping individual parts as needed.
As we’ve already seen, in composable architecture, functions are broken out into independent services, which allows them to be scaled independently. For instance, during a high-traffic event like a flash sale, resources can be dynamically allocated only to the services experiencing strain, such as the checkout, instead of over-provisioning the entire system.
Furthermore, composable components are typically built to capitalize on the elastic nature of the cloud, which enables auto-scaling to efficiently handle massive traffic spikes and then scale back down to optimize costs.
Overall, these capabilities lead to higher site availability, faster load times, and an overall more resilient customer experience.
Composable commerce relies on multiple modular components (including microservices, APIs, front-end experiences, and supporting tools) all working together. Managing these integrations can be complex. It requires careful planning, strong API management, and ongoing monitoring to make sure all systems communicate seamlessly.
In a survey by Elastic Path and studioD 3, building and managing integrations was highlighted by 32% of participants as a major hurdle to implementing a composable commerce system.
Although composable commerce can save costs over time through scalability and adaptability, the initial setup can be more expensive than using a monolithic platform. Businesses may need to invest in development, integration, and skilled personnel to manage it.
Implementing and maintaining a composable commerce architecture requires a team with advanced technical expertise. Specifically, organizations need professionals who understand API management, microservices, cloud infrastructure, and front-end development. Without this specialized skill set, businesses may struggle to integrate components effectively, troubleshoot issues, or optimize performance.
In the Elastic Path and studioD’s study mentioned earlier, 34% of respondents said that recruiting new employees to build and manage composable commerce integrations was a major obstacle to adoption.
With multiple systems and vendors involved, managing updates, security, and compatibility can be more complex. Businesses must establish governance frameworks to monitor performance, maintain consistent data quality, and ensure overall system reliability.
Composable commerce often involves multiple vendors for different components (CMS, PIM, OMS, payment systems, etc.). Managing contracts, service-level agreements, and support across several providers can become cumbersome.
The first step is to review your current e-commerce platform, operational workflows, and technology stack. Identify bottlenecks, limitations, and areas where flexibility or customer experience could be improved.
Establish a strategic vision for your composable commerce implementation. Set measurable objectives such as launching new products faster, improving omnichannel consistency, or scaling more effectively. Define priorities, timelines, and expected outcomes to guide decision-making throughout the implementation.
Determine the essential components of your composable commerce setup. Decide which systems will form the core commerce engine, front-end experience layer, supporting tools, API, and microservice integrations. Map out which components are already in place, which need replacement, and which new tools will be required.
Select vendors and technologies that meet your defined objectives and integrate smoothly with other components. Evaluate potential solutions based on factors like functionality, scalability, support, and flexibility for future upgrades. Make sure the chosen tools align with your overall strategy and long-term roadmap.
Outline how each component will fit into the overall system architecture. Plan data flows, integration points, and dependencies between modules. Consider how changes in one component may affect others and prepare contingency measures to prevent disruptions during implementation.
Break the implementation into manageable stages rather than deploying everything at once. Start with high-priority or high-impact areas, then expand gradually. Phased implementation reduces risk, allows teams to focus on each module, and makes troubleshooting more manageable.
Establish a structured testing plan for each phase, including functional, integration, and performance tests. Gather feedback from users and stakeholders, identify issues, and make necessary adjustments. Continuous monitoring and optimization help maintain system reliability and alignment with business goals.
Provide training for internal teams on the new platform, workflows, and tools. Make sure that operations, marketing, IT, and customer service teams understand their roles and responsibilities in the composable setup. Align internal processes to take full advantage of the modular system.
After implementation, track key performance indicators, system usage, and customer feedback. Continuously refine the setup, adopt new tools, replace outdated components, and scale modules to accommodate growth, seasonal peaks, or expanding business requirements.
Composable commerce gives brands the freedom to choose and connect the online selling tools that best fit their needs instead of depending on a single, all-in-one platform. Every component, be it checkout, product management, or content delivery, can be chosen, connected, and replaced independently. This provides modern businesses with the flexibility and agility they need to deliver seamless, omnichannel experiences.
Cin7 is a cloud-based inventory and order management platform that serves as the central hub for inventory, orders, and fulfillment in a composable commerce setup. It tracks stock, supports inventory reconciliation, manages orders, and ensures accurate data across all sales channels, while integrating with other specialized systems, like commerce engines, CMS, and CRM, to keep all your digital operations synchronized and efficient.
Request a free demo of Cin7 today to see how it can simplify your operations, enhance your composable commerce strategy, and help you deliver consistent, seamless experiences to your customers.
Sources
1 “What Share of Global Retail Sales Is E-commerce?” RedStag Fulfillment, https://redstagfulfillment.com/what-share-of-global-retail-sales-is-ecommerce/
2 “State of Composable Commerce: Recap.” Elastic Path, https://www.elasticpath.com/blog/state-of-composable-commerce-recap
3 “2023 State of Composable Commerce.” Elastic Path, https://www.elasticpath.com/resources/ebooks/2023-state-of-composable-commerce