Ecommerce was an industry that was already changing when the events of 2020 really turned things upside down. Here are just a few examples of the current transformation in online retail:
- The e-commerce share in the retail market rose just as strongly in the first half of 2020 as in the last 5 years. ((Common Thread Collective)
- US consumers broke 5 Christmas shopping records during Cyber 5. Online sales increased by 20.6% compared to the previous year. ((DigitalCommerce360)
- U.S. e-commerce sales are projected to hit $ 794.50 billion this year, up 32.4% year over year. ((eMarketer)
The numbers tell us what most of us already know – e-commerce is growing rapidly. The COVID pandemic and the subsequent closure or avoidance of brick and mortar stores have brought more shoppers online. And these trends are unlikely to continue until the future. Data from Statista projects in the e-commerce industry $ 6.5 billion in worldwide sales by 2023.
Due to changing government restrictions and buyer behavior due to COVID, some companies have had to change their strategies and try to take advantage of these new markets online. This has shown businesses the importance of having the right technology platforms in place. One strategy that has helped some retailers be better prepared for a rapid change in consumer demand during these troubled times is headless trading.
Modern systems that reside in the cloud, are API-centric and use headless commerce and microservices are now crucial to help companies adapt to current and future challenges. This technology enables companies to change their UX (User Experience) or CX (Customer Experience) quickly and easily.
Read on to learn more about what headless retail is and how it helps brands face today’s challenges and future-proof their businesses for the challenges ahead.
What is headless trading?
Headless commerce falls under an API-driven microservices approach, which is sometimes referred to as composable commerce. The strategy means decoupling the customer-oriented front end – the head – from the shopping cart functionality and the product and order management systems in the back end. For decades, the traditional e-commerce model has combined both systems into all-in-one monoliths.
While it may seem less complicated to have a system that can do everything, in reality monolith systems add complexity. Some changes to the front end cannot be made without updating the back end. This means that users may need more developer work. This also means that updates are slower. Marketing teams that want to quickly update the front end to meet the fast paced demands of modern e-commerce are slowed down.
For this reason, the monolithic architecture increasingly contradicts the requirements of today’s companies. As customers can buy on more devices than ever before, omnichannel has become increasingly important, and tThe technology must enable simple and quick adaptation. Customers today expect to shop across different devices and platforms and still have a consistent, personalized experience. Meeting customers where, how, and when to shop is critical. With apps, mobile stores, portable devices, websites or social selling websites, consumers do not want to be restricted in their product discoveries and in the consumption of content. The digital environment must be able to provide all of this.
Why headless is a key solution for the future security of your company
Because headless companies can choose the best solutions tailored to their specific needs (and those of their customers), it solves many of the challenges companies currently face. It can deliver the kinds of digital experiences that customers are increasingly expecting. It can also make updating the site quicker and easier. Marketing teams can make updates to the front end without making complicated back end changes.
The flexibility and freedom of choice inherent in this model allows you to choose from any number of front-end solutions. You can use a content management system (CMS) or a digital experience platform (DXP) if you have a content- or experience-driven strategy. You can use a progressive web app (PWA) if your target audience needs a native app like experience on mobile devices. You can get creative with an Internet of Things (IoT) technology or even a bespoke solution that fits your specific use case.
Not only does this strategy fit our current climate of swift hubs due to extenuating circumstances, but it is also a way of future-proofing the future by allowing you to make changes quickly and efficiently. You can change front ends without having to completely migrate to a new e-commerce platform. This is enormous for staying nimble and preparing your company for any eventuality. Nobody predicted that ecommerce would explode in 2020 for the way it did – or for the reasons it did it -. Headless commerce can prepare you for the unknown unknowns of the future.
How headless trading affects you
Now that you understand what’s mindless and why it’s currently on the rise, the real question is, how is it specifically affecting you and your business opportunities?
If you are a decision maker in the ecommerce industry, understanding how grasping the mindless opportunity can affect your role and the business outcomes you are monitoring. Download our eBook to get a clear picture of the value of headless for various C-suite positions Headless Commerce for the C-Suite.