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Headless commerce is an e-commerce architecture in which the frontend and backend experiences are decoupled. This provides businesses more freedom to make changes in the front end without affecting the backend or vice versa.
The crucial characteristic of headless commerce is that it is an advanced retail tool that surpasses the seamlessness of ordinary omnichannel solutions. In addition to providing the frictionless experience that omnichannel architectures do, headless commerce allows frontend users to make real-time changes to local databases without affecting the backend.
This is often necessary for complex brands to ensure specific shopping experiences across different locations and touchpoints. Yet, as headless commerce architecture is enabled by application programming interfaces (APIs) to communicate with the backend, omnichannel seamlessness is written into the code. Employees can update and sync information as and when they want instead of processes taking place automatically.
Headless commerce also makes it easier for businesses to introduce new technologies and processes without affecting the workflow. It’s important to note that it will not affect the backend later when you make changes to the visual layer (or the frontend). This advantage also allows developer teams to work on frontend and backend layers separately without making changes across the platform.
Although omnichannel commerce solutions are perfect for modern ecommerce retailers, a simplistic approach is often insufficient for complex retail businesses. They need something more than mere omnichannel features to keep their businesses up and running. It wouldn’t be an exaggeration to say that headless commerce is omnichannel done right. Let’s take a look at the main differences:
Differences
Headless Commerce
Omnichannel Commerce
Focus
Headless commerce is an architecture that decouples the front end from the backend, resulting in greater flexibility in delivering personalized shopping and content experiences to customers across touchpoints.
Omnichannel commerce integrates various processes to provide a seamless shopping experience. Its main focus is to deliver a seamless and unified shopping experience across all touchpoints.
Differentiation
Supports a modular and flexible architecture ready for future technological adaptations and changes.
Enables a consistent shopping experience and integration of processes across different touchpoints.
Technology
Decouples frontend and backend architectures to allow easy changes to either. Developers can work on bugs, features, and other issues separately without attending to the entire platform.
Any changes made anywhere affect the entire platform. As developers need to work with all the layers simultaneously, downtime can occur while making updates or fixing bugs.
Customization
Headless commerce takes the customization of different features across platforms very seriously. As its architecture is essentially decoupled, it is possible to create highly personalized and customized experiences across various touchpoints.
Although omnichannel ensures customization and personalization across touchpoints, it may sometimes affect retailers’ ability to deliver slightly different experiences across platforms.
User experience
Retailers can support different user experiences across touchpoints, making everything more intuitive and realistic. For instance, customers expect a different experience on the website than they would on social media.
Provides a consistent and similar user experience across touchpoints. This helps certain kinds of businesses but may not help others.
Scalability
Supports dramatic degrees of scalability and allows retailers to be prepared for a changing world and rapidly evolving technological arena.
Allows retailers to add new touchpoints and locations but may be limited in adding new technologies.
Reports
Delivers rich insights and reports with the help of which businesses can make accurate decisions to boost their bottom-line figure.
Helps retailers with rich insights and reports based on data from existing touchpoints. However, it may not support segmented analysis or specific reports like headless commerce.
Most ecommerce solutions have a number of limitations when it comes to making changes to the frontend. One of them is having to deal with restrictions in the backend. As a result, businesses cannot build the design and user experience they want without tampering with the backend.
Headless commerce allows you to customize the front end without any of these restrictions. Secondly, it also helps you adapt to new technologies and platforms quickly and easily. As a result, you will be ready for future tech disruptions without much risk. Instead, you can focus on enhancing customer experiences and building interfaces that have the best ROI.
Research shows that ecommerce websites that don’t load quickly are strongly associated with increased cart abandonment rates, reduced customer satisfaction scores, and diminished brand value. Headless commerce architecture allows developers to make updates and fix bugs only on touchpoints where necessary.
It eliminates the need to make changes in the backend, and thereby paralyzing the entire ecosystem. In other words, your business doesn’t have to suffer while a minor glitch is being fixed on the frontend. Moreover, headless commerce has a positive effect on SEO and user engagement, leading to organic growth of your brand and revenue figures.
A headless commerce architecture is built on omnichannel philosophy — making sure that all devices and platforms have a consistent user-experience and data sharing capabilities. Yet, it differs from traditional omnichannel platforms in its ability to consider frontend interfaces as separate entities.
This helps retailers make the most of an omnichannel retail strategy with the additional freedom of local enhancements. It also allows for creating consistent experiences on mobile, desktop, and IoT devices while accounting for in-store experiences. Most importantly, seamlessness is supported organically and not imposed from the backend. This results in better user experience and growth.
Most e-commerce businesses find it difficult to scale up their operations due to limitations in their existing software stacks. Traditional ecommerce software products are notoriously difficult to customize and may grow obsolete with changing technologies and evolving customer needs.
A headless commerce architecture gives you the freedom to streamline development and deployment across touchpoints so that neither frontend nor backend operations are affected. It minimizes conflicts between different teams during feature integrations and updates and ensures that only departments where the update is deployed are affected. This ensures business continuity and frictionless retail operations.
Traditional ecommerce solutions have limited capabilities and most are not compatible with advanced third-party solutions. Integrations can become extremely complex and expensive, and may not fetch you the results you need. A headless commerce architecture is built with strategic integrations in mind, and makes it easy to implement both local and extensive third-party integrations.
You can pick and choose specialized solutions for each function and enhance the capabilities of your headless commerce solution. As a result, you can look forward to a future in which your business is immune to frequent disruptions and changing tech requirements. You will have the freedom to integrate tools and features as and when you like.
Customers have begun to expect more from retailers in recent years. Artificial intelligence (AI) assisted recommendations and machine learning (ML) enabled personalisations are crucial to create tailored shopping experiences. Headless commerce uses AI and ML algorithms to help you create tailored experiences for your customers.
In addition, it also helps test and optimize user journeys so that you can make necessary changes to your existing retail strategies. This is particularly important as older A/B tests do not consider changing and dynamic trends that shape shopping patterns. The newer tests help you identify solutions in real-time, which leads to better conversion rates.
One of the main advantages of headless commerce is the way its architecture is built. Headless commerce architecture decouples frontend and backend layers, making it easier for developers to work with new technologies without disrupting your workflow. It gives retailers and software developers utmost freedom to make changes and add new features without requiring a complete system overhaul.
As a result, you can easily remain one step ahead of customer expectations and market changes. Most importantly, your staff will not have to face irate customers and will be better able to serve them in-store. Finally, you can rest assured that your competitors will not outpace you in the future using technology.
In a decoupled environment, frontend and backend are built separately, and hence, there is a lower risk of security-related incidents. APIs are often secured by JSON Web Tokens, OAuth, and API Keys. In addition, a headless commerce solution helps you isolate concerns and work only on them instead of having to make system-wide security updates.
If something does not fit correctly, you can even roll back to a previous version. In other words, you will have full control of your system even during your most vulnerable stage. Last but not least, it is easier to implement local compliance requirements, especially if your operations are spread globally.
Although traditional omnichannel solutions offer superior scaling abilities and seamless view of your inventory, it is sometimes difficult to handle traffic spikes and seasonal demands, especially if you are a huge retail giant. A headless commerce architecture allows you to make incremental changes to your inventory based on demand and geo-location.
As headless commerce is AI-enabled, you will also be able to foresee trends in advance so that you are prepared. This allows you to cater to specific spikes without interfering with your warehouse management or inventory management at the organizational level. In other words, you will be able to grow your online and physical stores with many technical limits.
Although headless commerce architecture is a complex tool with advanced features, it helps you reduce your tech-related expenses in the long term. It eliminates the need for organization-wide system updates for every minor change and also ensures your IT team’s resources are not overutilized.
Decoupling as a strategy reduces development and maintenance costs in the long term. Finally, it is important to remember that long-term cost savings are also possible as a result of better utilization of existing resources by your frontend and backend teams. All things considered, headless commerce is a wise financial decision to make if you are a business owner.
Content marketing is more important than ever, but the only difference is that it cannot be uniform across channels. You will have to create separate content marketing campaigns for each geo-location and touchpoint in order to remain relevant and relatable.
Headless commerce not only helps your content marketing team to develop campaign material, but also helps disseminates across touchpoints based on your plan. Your team will have all the tools necessary to stay ahead in their content marketing game. Most importantly, a headless architecture helps create separate content marketing campaigns as per you need, which you can repurpose in the future.
Headless commerce’s architecture is built in such a way that it collects data from all customer touchpoints without assuming that a certain version is the only correct one. This allows you to compare data from different platforms, physical stores, geo-locations, and touchpoints, and understand that data can sometimes be contradictory.
Nevertheless, a headless architecture makes space for contradictions, unifies them eventually, and generates richer insights than other tools. This helps you make informed decisions regarding customer needs and business strategy. Thanks to an AI and ML-enabled architecture, you also gain access to predictive analytics and prescriptive suggestions, which you can implement at your will.
Schedule a no-obligation call with one of our experts to get expert advice on how Priority can help streamline your operations.
Although headless commerce is a futuristic solution for ecommerce businesses, it has specific challenges one must be aware of. Headless commerce operates on the premise of decoupling, which makes it a complex architecture that requires special knowledge. It may also be more expensive than regular omnichannel solutions.
Many retailers struggle to integrate headless commerce products with tools like ERP, CRM, etc. Most importantly, although headless commerce allows for local customizations and personalizations, it may not offer the automatic seamlessness that a simpler omnichannel tool would. However, preparing for these challenges can help address most of them.
The trick is to choose an experienced vendor who will do the technical heavy lifting for you so that you can focus on building your business. Experienced vendors know precisely how to minimize the challenges posed by headless commerce products.
Although headless commerce suits all kinds of businesses, it is particularly well-suited for enterprise-level businesses and large omnichannel retailers. Thanks to a centralized backend and multiple frontend interfaces, medium and large-sized businesses can manage multiple front-facing operations across touchpoints and geo-locations, including physical locations.
Headless commerce is also particularly well-suited for companies with complex content management requirements. It allows the dissemination of information across different touchpoints in customizable terms. Most importantly, companies that constantly evolve technologically require a headless commerce architecture in order to be able to integrate, test, and deploy new features on specific interfaces.
You can think of headless commerce as an omnichannel solution but with the added advantage of being able to segment and customize specific interfaces and front faces while having the ability to manage everything in real-time from the backend. In other words, a headless commerce architecture is suitable for both B2B and B2C organizations which have complex and unpredictable operations.
Although headless commerce is supported by a complex architecture that is well-suited for large enterprises and labyrinthine omnichannel giants, smaller businesses can benefit from its flexibility and customizability as well. It allows small businesses to operate on multiple frontend interfaces seamlessly and run their operations from a single centralized backend.
This helps smaller businesses streamline their operations, make the most of omnichannel retail operations, and deliver unique experiences across different touchpoints. Headless commerce is also particularly suited for small organizations with complex business requirements. It gives them more flexibility over how they wish to approach customers and enhance their operations.
Hence, it would be a fallacy to state that headless commerce is not suitable for smaller organizations. All one needs to do is evaluate one’s needs, assess future goals, and identify current lacunae in order to choose the right business tools. Speaking with an experienced headless commerce vendor can be a good start.
Answering the question of whether headless commerce is the right choice for you requires some groundwork. To begin with, it’s important to assess your current ecommerce needs. As e-commerce growth fluctuates and associated technology evolves rapidly, every business stands to gain when it future-proofs itself against eventual disruptions.
One way to do this is by adopting a headless commerce solution. However, if your software requirements are limited and you do not have plans to outgrow your current capabilities, a more minimalist solution may work in your favor. However, it is important to gain insights from seasoned vendors who would be better able to help you make the right decision.
Priority Software has years of experience when it comes to developing and delivering e-commerce solutions to diverse organizations, including those with a physical presence. Contact us today to learn if headless commerce is the right option for your business, and if not, what other solutions you can opt for to rev up your business engines.
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