Composable Commerce settles in the business environment

Felipe SilbersteinJune 07, 2022

Composable Commerce is the alternative with which commercial and technological teams give digital visibility to their brands from customized platforms. Integrating functions and operational capabilities from multiple vendors, ensuring continuity of services and digital experience personalization.

As e-Commerce expands and becomes as vital as face-to-face customer service, the adoption of composable commerce is consolidating as an option for large brands, enabling them to operate their platforms with a modular approach according to each company's business rules.

Composable Commerce settles in the business environment

What is Composable Commerce?

Composable Commerce is a modern approach that allows teams to assemble business solutions and capabilities, choosing the best alternatives suited to their needs from a vendor ecosystem.

It’s a new concept, coined by Gartner in 2020, that quickly demonstrated its ability to improve the quality of digital experience and, at the same time, the operational quality of the e-Commerce business. When using modular integrations, business functions called PBCs (Packages Business-Capabilities) are integrated to create unique applications aimed at people's experience.

This approach moves away from the idea of e-Commerce out-of-the-box solutions; instead, it targets the construction of customized platforms based on smaller components, giving access to first-class operations and ensuring long-term adaptability.

Elastic Path is a company whose products are governed by a composable vision, offering API-Driven solutions, which means that they are designed to communicate via API with any system.

Composable Commerce principles

Gartner points out 4 main principles that make this approach the foundation for any company's expansion in the digital environment:

  • Discovery, led by continuous research and increased decision-making on digital experience.
  • Modularity, transforms platforms into constantly evolving and specific systems.
  • Orchestration of communications by consolidating the path to higher customer engagement and experience enhancement.
  • Platform resilience through its components' autonomy, allowing that the service interruption of one component doesn’t affect the entire platform.
    • Composable is about mindset, technology, and processes. A shift to a modular approach in which business strategies and people's expectations play a leading role. It is the path to organizational innovation and the possibility of adapting to market changes by providing the following features:

      An omnichannel-oriented platform

      Composable encourages companies to develop and adopt an omnichannel strategy, unifying their different sales channels. This feature offers possibilities for expansion and optimization through strategy implementation geared towards the relationship between the brand and the customer, with customer experience taking a central role.

      API-Driven Ecosystem in the integration of modular components

      A well-established strategy among companies is incorporating services to their systems and platforms through APIs. Hence some have created digital solutions that, from their foundations, rely on APIs to connect. One example is Contentful, whose features are based on 5 different APIs.

      API-Driven is the name given to applications (or solutions) that depend on APIs for their operations and where their later development is built on this basis in order to be highly compatible with both modern and legacy systems.

      We highlight some benefits of implementing this technology, such as speed in website loading, better customer experience, flexibility for developers, and faster updates.

      Digital experience is the priority

      In Composable commerce, platforms are created with the digital experience in mind, understanding that it is a strategic factor for commercial growth. In this modular approach evolution, the Digital Experience Platform (DXP) definition emerged firmly, comprising a technological integration aimed at creating, managing, distributing, and optimizing personalized customer service experiences.

      These technologies development represents a growing market, with an estimated value of $15.80 billion in 2025 for this sector; figures indicating a high demand for customer experience-oriented services, foreseeing a rising number of businesses using DXP services, and showing increased adoption of composable commerce in the near future.

Composable Commerce settles in the business environment 2

Platforms bringing change to its development

We must emphasize that adopting these new infrastructures is a progressive process, a sort of evolution in corporate structures. Thus, some brands still have monolithic platforms or parts of them, but their content and functions are managed via APIs.

According to Gartner’s Daryl Plummer:

“Composable commerce is a natural ramp-up of the digital business you live in every day. It allows us to offer the resilience and agility that these intriguing times demand". This insight lets us approach the transition as an organic and progressive process for those companies still moving to composable commerce.

Today's brands recognize Composable Commerce as a strategic advantage over their competitors. Being composable helps companies become more adaptable to commercial environments, and leading companies in many industries are now part of this evolution.

At Reign, we are experts at working on decoupled and modular platforms. We focus on enhancing the digital experience and optimizing the operations of large brands, driving scalability and innovation as a path to constant growth.

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