Marketing

The Benefits of Composable Commerce: Why Your Business Needs It

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by Robin Strathdee

12/12/2024, 8:00:38 AM

5 min read

Modern businesses need ecommerce solutions that are flexible and adaptable to meet changing customer demands. Composable commerce is the answer. 

By selecting and integrating modular technology components, IT leaders can build tailored storefronts that scale effortlessly and deliver engaging experiences—all without extensive system overhauls.

Composable commerce brings unique advantages that can transform your business into a powerful engine of innovation and growth. By exploring its benefits, you’ll see how this flexible, modular approach equips companies to quickly adapt to market changes, meet customer demands, and drive continuous improvement.

What Is Composable Commerce?

Composable commerce is an approach to digital commerce that enables businesses to build a platform using separate technology components. Companies can select the best solutions for their ecommerce storefront, such as payment processing, inventory management, marketing, and logistics.

Unlike traditional commerce platforms, which offer pre-packaged (and often limited) solutions, composable commerce accommodates complete customization so your platform aligns with your business goals and needs.

You can swap or upgrade modular composable commerce components—known as "building blocks"—individually without a full system overhaul. For instance, if you want to enhance your payment system, you can integrate a new solution without disrupting other parts of the platform.

Key Benefits of Composable Commerce

Composable commerce solutions can drive significant growth and innovation by enabling you to create tailored solutions, combining different technology components efficiently and quickly. Here are some of the most significant advantages of composable commerce and how they might benefit your business:

Flexibility and Customization

Composable commerce adapts to your business's specific needs. You can customize and adjust each component to optimize operations and enhance the shopping experience.

It also simplifies how you implement new features, equipping you to quickly adjust to changing customer preferences or market trends. For example, if consumer behavior shifts suddenly, composable commerce lets you swiftly integrate new data analysis tools to understand the change and adjust your marketing strategies accordingly.

Scalability

As demand grows, you can add new components to your ecommerce platform without compromising system performance. With a cloud-based infrastructure, automatic scaling ensures your online store is always ready to handle traffic spikes during promotions or seasonal events. 

Recent research shows that more than 50% of businesses will use industry cloud platforms by 2028, leveraging cloud technology for more agile scaling and improved operational efficiency.

Enhanced Customer Experience

Your business can deliver a more engaging shopping experience by integrating tools such as recommendation systems, smart chatbots, and marketing platforms. Personalized solutions like recommendation systems are critical, as 76% of consumers report feeling frustrated when their online experiences are not tailored to their needs, according to a McKinsey study. These tools create a customized journey, helping customers discover products that align with their interests—an approach shown to boost engagement and increase conversion rates.

For example, a fashion company can leverage a customer's browsing history to personalize product displays with highly relevant recommendations, enhancing engagement. This approach often leads to increased conversion rates, a higher average order value (AOV), and greater customer satisfaction.

Easier Integration

Composable commerce simplifies how you integrate new technologies. Since components are independent, you can add solutions—such as payment gateways or marketing automation tools—without rebuilding the entire platform whenever you need new features.

Moreover, compatibility with open APIs makes it easier to connect different modules, allowing you to leverage technological innovations without lengthy development or complex integration processes.

Continuous Innovation

One of the greatest benefits of composable commerce is the ability to keep pace with the latest trends and quickly implement modern solutions.

Since you can update or replace components individually, there's no need for major platform overhauls. This agility ensures your business stays competitive and up to date.

Comparison with Traditional Models

Traditional ecommerce platforms often offer an “all-in-one” solution that, while initially convenient, can limit flexibility as your business grows or evolves. 

In these systems, different functions—like inventory, payment processing, and customer data management—are tightly interconnected, making it challenging to adjust or upgrade a single component without disrupting the others. Composability addresses this by allowing each part of the system to operate independently, enabling targeted updates or integrations without impacting the entire platform.

Additionally, composable commerce can be more cost-efficient, as businesses pay only for the solutions they use and can scale them as needed.

How to Implement Composable Commerce in Your Business

The first step to implementing composable commerce is to identify your commerce business needs—such as payment solutions, logistics, inventory management, and marketing.

Next, conduct thorough research to identify technology providers that offer modular, composable commerce solutions. Begin by comparing platforms based on flexibility, scalability, support for open APIs, and a commitment to continuous innovation. 

For instance, other providers exist, yet they vary in ease of integration and support for business growth. VTEX stands out by combining comprehensive composability with seamless integration options and robust customer support, allowing your business to evolve without compromising performance.

With VTEX, you gain a flexible platform that not only supports open APIs but also simplifies complex integrations, making it an ideal choice for long-term digital growth.

Success Stories - VTEX and Belcorp 

One key benefit of composable commerce is increased business agility and flexibility to adapt. A great example is the partnership between VTEX and Belcorp, a leader in the health and beauty products industry.
Recently, Belcorp migrated from SAP to VTEX, seeking a more flexible platform capable of adapting to growth. The previous SAP Hybris system was not only costly and difficult to maintain but also struggled to meet the evolving demands of Belcorp and its customers.

Venkat Gopalan, Belcorp's Chief Digital and Technology Officer, summarized the importance of this change by stating, "We migrated to VTEX for two main reasons. First, we wanted business agility, and second, we wanted solution agility. We wanted a product that was future-proof in terms of technology investment."

With VTEX’s MACH-certified architecture, Belcorp gained unprecedented flexibility. The platform's composable and complete nature allows Belcorp to easily swap components, such as search functionalities, without disrupting the entire architecture or incurring high development costs.

Ready to see how composable commerce can benefit your business? Request a free demo and boost your digital transformation today.