So You Want to Break Up With Your Legacy E-Commerce Platform? The Frictionless Guide to Composable Commerce

In today's rapidly evolving retail industry, composable commerce is emerging as a unique strategy for successful, modern merchants. Gartner predicts that “by 2023, organizations that have adopted a composable commerce approach will outpace the competition by 80 percent in the speed of feature implementation.”

Recognizing the value of a customized commerce stack, top retailers are embracing this approach to eliminate friction and enhance personalization. But while the benefits are clear, many merchants are apprehensive due to the belief that it can be a costly and complex transition process. For starters, what is composable? And what impact does this strategy have on modern retailers?

Defining ‘Composable’

Composable commerce lets e-commerce brands pick and choose every aspect of their tech stack, ranging from the loyalty program provider to their checkout system, without being tied down by the limitations of one single provider or platform. It signals a shift towards modularization and customizability — a stark contrast with the past decade's trend of bundled legacy e-commerce solutions.

This model provides brands the flexibility to tailor-make their customer experience in a way that aligns with their unique business requirements. Using a composable strategy, merchants can now tailor all elements of a customer experience, more effectively capture customer loyalty, and upsell through post-purchase offers. According to developers, it avoids the high costs and resource-heavy demands associated with custom building each individual component from scratch.

Opportunities for Merchants

According to Retail Touchpoints, in an A/B test comparing a website powered by composable commerce to a traditional site, UK-based women’s activewear brand Sweaty Betty achieved an impressive 41 percent-plus bump in conversions. The journey toward composable commerce begins by evaluating the major touchpoints within your commerce ecosystem. From omnichannel strategies to customer experience enhancements, security and fraud prevention, checkout streamlining, and post-purchase offers, there are a number of opportunities for merchants to consider a composable model.

By identifying the right entry points, retailers can lay the foundation for a successful transition. For example, if a merchant is finding conversions are dropping at the checkout page, it may be useful to tap a composable checkout solution that will provide more freedom and customization on the checkout page — hopefully increasing conversions in return.

Debunking Composable Misconceptions

Unfortunately, misconceptions exist that hold merchants back from embracing the shift. One of the prevailing concerns is the belief that moving towards composable is time consuming to implement and technically challenging for teams to adopt. However, with direct API integration, the process can be more streamlined than merchants think.

Additionally, the assumption that composable solutions are expensive is also not true. Retailers can see improvements in many areas, including:

1. Higher Average Order Value (AOV): Composable commerce enables merchants to offer personalized product bundles, dynamic pricing, and targeted upselling and cross-selling opportunities.
2. One-Click Checkout: Shoppers give you their details once, then one-click forever. Mobile-optimized checkout gives you higher conversions and happier customers.
3. Post-Purchase Offers: Increase your revenue up to 12 percent with personalized checkout experiences by promoting relevant products without adding friction.

According to a PYMNTS survey last year, 59 percent of online retail shoppers who have had unsatisfactory experiences with a given merchant say they're “slightly” or “not at all likely” to trust that merchant. Composable commerce is like a customizable tool kit for online shops. It allows businesses to mix and match the best tools, which can lead to customers having a better shopping experience and spending more. For modern merchants, legacy systems currently on the market can be limiting. Lackluster checkout experiences can wreak havoc on your customer loyalty and trust over time. In an era when customer experiences can make or break online retailers, composable options are quickly proving to be the next evolution in commerce.

Jordan Gal is the CEO of Rally, a headless checkout platform for e-commerce merchants.