In the world of eCommerce, the choice of platform can make or break your business's success. In this blog post, we'll uncover the hidden costs lurking beneath the surface of non-composable eCommerce platforms and explain why such expenses are non-existent with composable technology.
What is composable commerce?
Before uncovering the intricacies of non-composable platforms, it's crucial to grasp the concept of composable commerce fully.
Composable commerce represents a monumental shift in eCommerce, revolutionizing how businesses approach digital commerce infrastructure. Unlike traditional monolithic solutions that present businesses with a rigid, one-size-fits-all approach, composable commerce empowers organizations to construct their eCommerce architecture as a collection of interchangeable, modular components.
At the heart of composable commerce platforms — like commercetools Composable Commerce — lies the philosophy of flexibility and adaptability. Businesses can cherry-pick the best-of-breed components that align with their specific requirements, whether it be for content management, payment processing, customer relationship management or any other aspect of eCommerce operations. Through the strategic use of APIs and microservices, these components seamlessly communicate and integrate, creating a cohesive and highly customizable eCommerce ecosystem.
In essence, composable commerce represents a departure from the one-size-fits-all mentality of traditional eCommerce platforms. By embracing the principles of composable architecture, businesses can future-proof their eCommerce infrastructure, ensuring they remain competitive and responsive in an ever-evolving digital landscape.
What commerce platforms fall under the "non-composable" category?
Non-composable options encompass a spectrum of legacy and monolithic platforms that promise simplicity but often come with hidden complexities. These solutions, remnants of a bygone era, lack the flexibility and agility required to thrive in today's fast-paced digital landscape. Even more current SaaS platforms, like Shopify and BigCommerce, still offer limited out-of-the-box templated solutions that are inflexible to work with. Watch out for vendors claiming composability but don't fully meet the criteria or provide the benefits associated with true composable technology, otherwise known as "composable washing." Composable washing involves presenting products as highly modular and adaptable when, in reality, they may lack the necessary scalability, flexibility or interoperability to qualify as truly composable.
1. Customization options
Non-composable
One of the most glaring drawbacks of non-composable platforms is their limited customization options. While off-the-shelf solutions may seem convenient initially, businesses often find themselves handcuffed by rigid templates and predefined workflows.
Customization becomes a costly endeavor, requiring extensive development resources and third-party plugins to achieve even minor modifications. As a result, businesses risk losing their competitive edge and brand identity in a sea of cookie-cutter websites.
Composable
Composable commerce platforms offer unparalleled flexibility in customizations and extensibility, addressing the constraints faced by non-composable solutions. It empowers businesses to tailor every aspect of their eCommerce experience to their unique requirements.
By decoupling core functionalities into modular components, businesses can mix and match capabilities seamlessly, ensuring their platform aligns perfectly with their brand identity and customer expectations. This flexibility allows businesses to innovate and experiment with new features and functionalities.
2. Scalability
Non-composable
Scalability is paramount in the fast-paced world of eCommerce, where businesses must accommodate growing demand and sudden traffic spikes. However, non-composable platforms that aren't cloud-native often struggle to keep pace with rapid expansion, leading to performance bottlenecks and downtime during peak periods.
Without the ability to dynamically allocate resources, businesses face the daunting task of overhauling their entire infrastructure or risk losing customers due to poor user experience. In the long run, losing customers — and revenue — over poor website performance can far outweigh any initial cost savings.
Composable
Scalability is a cornerstone of composable commerce, with platforms designed to grow alongside businesses' evolving needs with ease.
By leveraging microservices and cloud-native architecture, composable platforms can dynamically allocate resources and distribute workloads, ensuring optimal performance even during peak periods. Whether handling increased transaction volumes or integrating new services and channels, composable commerce platforms provide the scalability businesses need to stay ahead of the curve.
3. Integrations
Non-composable
In today's interconnected digital ecosystem, integration is key to unlocking the full potential of your eCommerce platform. Non-composable solutions, plagued by closed architectures, pose significant challenges when integrating with third-party services and tools.
Each integration becomes cumbersome , requiring custom development and middleware solutions to bridge the gap between disparate systems. The resulting complexity not only increases integration costs but also introduces potential points of failure and data inconsistencies.
Composable
Integration complexity is a thing of the past with composable commerce platforms, thanks to their open and interoperable nature, making it seamless to connect with third-party services and tools. Standardized APIs and modular components simplify integration efforts, reducing the need for custom development and middleware solutions.
commercetools Connect
With commercetools Connect, deploying integrations just got even easier and faster. With its low-code connectors, commercetools Connect promises to free your DevOps from configuration headaches — whether it's integrating with a new payment gateway, CRM system or marketing automation tool, businesses can seamlessly integrate third-party components into a composable platform.
4. Vendor lock-in
Non-composable
Vendor lock-in is a pervasive issue with non-composable eCommerce platforms, trapping businesses in a perpetual cycle of dependency. By monopolizing the entire eCommerce stack, vendors limit customer choice and bargaining power, making it difficult to negotiate favorable terms or switch to alternative solutions.
This is particularly evident with companies like SAP, which extend their lock-in strategies beyond eCommerce. Legal clauses often accompany these arrangements, imposing hefty penalties if businesses attempt to switch providers or drop their eCommerce services. Such clauses can bind businesses to long-term contracts, even if the platform no longer meets their needs, forcing them to pay exorbitant fees to break free.
Composable
Composable commerce platforms liberate businesses from the shackles of vendor lock-in, offering freedom of choice and flexibility in vendor selection. They allow businesses to mix and match components from various vendors, ensuring that no single provider monopolizes the entire eCommerce stack. This vendor-agnostic approach fosters healthy competition and innovation in the marketplace, empowering businesses to negotiate favorable terms and switch providers as needed, with no added costs.
Moreover, the reversibility of components inherent in composable architectures adds another layer of flexibility. Businesses can easily replace or remove specific components without disrupting the entire system, further enhancing their control over their digital infrastructure.
5. Maintenance and support
Non-composable
Maintaining and supporting a non-composable eCommerce platform can quickly escalate into a costly endeavor. From forced upgrades and security patches to troubleshooting technical issues and providing customer support, businesses are left grappling with ongoing expenses and technical debt that strain their budget and resources.
As the platform ages, the risk of encountering compatibility issues and security vulnerabilities only compounds, necessitating continuous investments in maintenance and upgrades. What initially seemed like a cost-effective solution gradually becomes a drain on resources, eroding profitability and hindering business growth.
Composable
Maintenance and support expenses are significantly reduced with composable commerce platforms, thanks to their modular and scalable architectures, which can update individual components without disrupting the entire system. This approach utilizes versionless solutions and facilitates continuous innovation in the platform without causing disruptions.
Furthermore, the modular nature of composable architectures minimizes the risk of dependency on a single vendor for support, reducing reliance on expensive support contracts and ensuring businesses have access to a diverse pool of expertise. With lower maintenance and support costs, businesses can allocate resources more efficiently towards innovation and growth initiatives, driving sustained progress and adaptability in the dynamic landscape of eCommerce.
6. Innovation opportunities
Non-composable
Innovation is the lifeblood of eCommerce, driving differentiation and competitive advantage in a crowded market landscape. However, non-composable platforms often stifle innovation by constraining businesses within predefined boundaries and outdated technologies.
Without the flexibility to experiment and iterate on new ideas, businesses risk falling behind competitors and missing out on emerging trends. The hidden costs of limited innovation extend beyond missed opportunities, impacting customer engagement, brand perception and sustained growth.
Composable
Composability unleashes a world of innovation opportunities, enabling businesses to experiment, iterate and differentiate in the market. It fosters a culture of experimentation and agility, allowing organizations to test and refine new ideas rapidly. One of the key advantages of composable architecture is its ability to experiment and only implement at scale what has proven value. Businesses can rapidly prototype and deploy new features, test innovative business models and adapt to emerging trends with ease, minimizing risk and maximizing efficiency in their development process.
The modular nature of composable platforms also facilitates collaboration with third-party developers and partners, opening up new avenues for co-innovation and co-creation. By embracing composable commerce, businesses can unleash their full creative potential and drive sustained innovation in the fast-moving world of eCommerce, while ensuring that their solutions are scalable, efficient, and aligned with the needs of their customers.
7. Employee satisfaction
Non-composable
Working with non-composable solutions not only affects employee spirit and productivity but also incurs significant costs associated with attrition. The frustration and demotivation stemming from inefficient technology contribute to decreased morale among employees, ultimately leading to turnover. As talented employees seek opportunities elsewhere due to the lack of career growth and skill development, the organization faces the financial burden of recruiting, onboarding, and training replacements.
Moreover, the increased workloads and stress caused by manual workarounds and outdated processes further exacerbate attrition rates, as employees seek roles in companies that offer more efficient technologies to work with. The cost of losing skilled workers and the subsequent need to fill vacancies can have a substantial impact on the organization's bottom line.
Composable
Composable commerce solutions can have a positive impact on employee attrition — aka keeping developers happy. As employees work with new technology and are able to respond quickly to business demands, they are likely to experience increased job satisfaction and a sense of being challenged and engaged in their work. This will lead to lower employee turnover, decrease recruitment and training costs and prevent the inability to execute on strategic priorities due to lack of resources.
Furthermore, with composable technology being tech-agnostic, you can access a diverse talent pool of developer talent, enabling you to break free from the constraints of hiring experts confined to a specific technology stack. By embracing a more inclusive approach, you can tap into a rich reservoir of multi-language experts. This expanded talent pool not only enhances the depth and breadth of expertise available but also fosters a culture of collaboration and innovation.
The path forward with composable
As you consider the choices of eCommerce platforms, it's essential to look beyond the surface and think about the hidden costs lurking beneath. Non-composable solutions may offer short-term convenience, but their limitations can take a heavy toll on your business's success and sustainability. By embracing the principles of composable commerce, you can unlock a world of possibilities, empowering your business to thrive in the fast-moving world of digital commerce. The choice is yours: Will you settle for mediocrity or will you embrace the future of eCommerce?
To learn more about how composable commerce can optimize your business commerce costs, download our white paper Why composable commerce will change the way you run your business.
Michael Scholz is the VP of Product & Customer Marketing for commercetools. With two decades of experience in retail & software at SAP, Hybris, SuccessFactors and Sift, he has been leading software development, presales, consulting, marketing & strategic alliances.