The advent and development of various IT inventions long ago changed the rhythm of our lives and revolutionized the traditional approach to shopping and business management. According to Statista, in 2021 global retail e-commerce sales were worth nearly $4.9 trillion.
Online buyers can now receive personalized product recommendations, drawing on artificial intelligence, and order goods wherever, whenever just by a series of clicks on their mobile device screens. Entrepreneurs, in turn, can choose from numerous options to make their websites faster and more profitable and achieve high-degree customizations to instantly react to upcoming market trends.
One of these options is headless website architecture. Later in this article, we focus on this technological advancement, overview its pros and cons for e-commerce businesses, and present the four best headless e-commerce platforms.
Visit our Dinarys e-commerce blog for more tips and tricks on how to create a competitive and reliable website and be aware of global trends.
What Are Headless E-commerce Solutions?
Simply put, headless architecture implies decoupling the frontend (presentation layer) and backend (application layer) of an e-commerce system. The independence of these two environments gives developers and business owners the freedom to make the data more portable and repurpose content in accordance with a particular customer segment or sales channel. Thus, a developer can make changes to the frontend without affecting backend operations, and vice versa.
Headless architecture may seem similar in logic to microservices – and, in fact, headless commerce can be called a subtype of microservices; however, it is slightly different. In headless architecture, only some parts can be separated, while microservices allow the solution to be fully decoupled on small independent services.
In this article, we explain in more detail what microservices are and compare them to their methodology counterpart, monolithic architecture.
How does headless commerce work?
As we have already said, the frontend and backend of a headless solution can function independently. The frontend part of an application defines what customers see: It is a UI head of the application. The backend is an application body that handles data storage, processes front-end requests, and returns data in a structured and coherent way.
So, how does this type of architecture support the integrity of an entire application? It is made possible by an application programming interface (API) endpoint (a neck), which is responsible for data exchange. Let’s call an API a communication bridge that passes requests between two layers.
For example, when customers place an order, the presentation layer of a headless system sends an API call to the backend to process the request. The backend sends a return API call to the presentation layer, which is how the customers can assess the results of their action: The order has been placed to the shopping cart, and they can proceed to checkout.
Comparison: Headless vs Traditional E-commerce
Let’s show, by comparison, why the concept of headless e-commerce solutions can be helpful for entrepreneurs in the modern retail landscape by referring to the good old alternative: a monolithic architecture.
In a system with a monolithic architecture, the frontend is tightly linked with a backend. In some cases, this methodology is still widely adopted as it can be more easily and quickly developed and deployed.
Urgent customizations
However, solid code becomes an obstacle when urgent customization is required, since developers have to modify the entire application.
Thus, from the perspective of flexibility and adaptability (critical aspects in today’s tough business conditions), the monolith is considered an outdated path because of its commitment to a particular technology.
Headless architecture enables much more room for urgent customization. Developers have complete control over the frontend independently of the backend, which comes in handy when a company intends to avoid app downtimes and shorten a product’s time to market.
When omnichannel retail takes over, designs for web-first monolith will most likely lean back. When a company is able to offer its consumers multiple sales channels, interaction with a brand is more accessible, increasing the chances of conversion.
The API-first approach, which is common to headless e-commerce and microservices, allows developers to connect a single backend with multiple ecosystems (frontends), such as CMS, PWA, mobile app, and IoT. In this way, one e-commerce solution can include unlimited touchpoints, distribute content across them, still maintain the brand identity, and seamlessly go omnichannel.
Headless architecture also simplifies inner business operations. In the same way, entrepreneurs can integrate their solution with an ERP or CRM system and enjoy centralized and, thus, hassle-free data management.
As shown in the picture below, the monolith has very little to boast of. New touchpoint extensions can be quite challenging and unjustified, because, yet again, of a large piece of solid code with frontend and backend tightly coupled. Even the smallest changes can compromise the entire system, so developers have to choose what works best for the solution’s predefined toolset rather than for a holistic omnichannel strategy.
Of course, a monolithic website owner can develop an additional sales channel, for example, a mobile app, but since these two solutions won’t share a common backend, they will have very little interaction with each other.
Types of Headless E-commerce Architecture
When exploring the market, you can stumble upon different types of headless CMSs. Some provide a so-called “pure backend” without a presentation layer—an option that is relevant for merchants who have a concrete vision of how their e-commerce solution should look. Companies can freely build a customized frontend for their unique business situation.
However, pure headless architecture may require additional assistance from developers, and the complexity of such a solution may extend the time to market.
Other options already include prebuilt API templates. These full-service headless platforms are suitable for retailers who don’t need to construct everything from scratch and want to focus on a faster time to market.
How Can Retailers Benefit from Headless E-commerce?
The tendencies we notice in our e-commerce development practice indicate that modularity is the future of e-commerce. According to Forbes, headless e-commerce is receiving $1.6 billion in funding. Investors are starting to consider the potential of this technology, as reflected in the aspects discussed below.
Technological diversity
As soon as the next market trend gets underway, it will definitely be adopted by one of your competitors. Your reaction speed, in this case, is crucial to getting ahead of this competition or at least staying afloat.
A headless environment enables you to test new technologies. Unlike the monolith, with its rigid tech stack, headless architecture behaves like plasticine in the hands of professional developers. You can try different innovations and remove them with equal success without having them fully affect the underlying systems.
Fast time to market
Time to market defines how long it takes for a solution to be developed and become available for consumers. As an experienced entrepreneur, you may already realize its importance – fast time to market makes it possible to gain customer loyalty and a competitive advantage afterward.
As a rule, the development of backend business logic requires most of the effort. With headless architecture, there is no need to construct everything from scratch. Therefore, you can quickly deploy new products just by sticking another touchpoint to the basis.
Online entrepreneurs are often puzzled by how to please the client, who is spoiled by numerous and persuasive offers on the market. Personalization is key to solving almost any conversion-related problem. Any target audience strongly appreciates seeing its buying preferences taken into consideration.
Due to the headless nature of an application, you can differentiate your customer experience and tailor a specific message (personal recommendations, promotions, etc.) to a certain segment across a certain channel. Moreover, you can customize the content you deliver on the fly.
How exactly can you personalize your retail with headless technologies? It’s simple. For example, when you expand your business and enter new markets, you are able to integrate a desirable payment method by region, so you don’t have to interrupt the existing payment options and replatform the entire app.
Long-term cost savings
An equally pleasant plus of going headless is the long-term cost savings you’ll make. Obviously, when you consider implementing a headless platform, this idea seems to be more expensive than a traditional monolith, since headless architecture demands considerable investment in frontend developers’ work.
However, let’s examine the roots of the beneficial impact of headless e-commerce on your capital. You’ll be able to easily multiply frontends and reach a wider audience, whether web or mobile devotees. Once you notice positive customer acquisition and customer retention metrics, you’ll understand that your investments are starting to pay off.
Limitations of a Headless E-commerce Platform
Whether fortunately or not, there is no single formula for how to conquer the market. Each technology has its potential and limitations, and headless e-commerce is no exception. As a professional e-commerce consultancy company, Dinarys is proud to be technology-agnostic: We prefer to adapt technologies to the business, not vice versa.
Hence, we’d prefer to overview both the opportunities and the potential pitfalls of any technology we work with to recommend our clients the right solution at the right time.
Initial setup costs and development team complexity are the two biggest drawbacks of headless commerce.
Ongoing costs
Taking a brand-new approach always implies initial expenses. Since, in most cases, a headless e-commerce platform doesn’t provide a frontend part, the construction of presentation layers rests squarely on the shoulders of an organization. Apart from this, due to the non-standard complex architecture, with a separate frontend and backend, headless solutions carry certain maintenance costs.
Whatever it is, any worthwhile project takes effort and time. Together with a dedicated engineering team, it’s eminently possible to eliminate overspending and maximize your idea potential.
Development team complexity
Everything is relative. Along with the advantage of technological diversity comes the downside of team complexity. Under monolith, frontend and backend layers can be managed by a single team, and that also applies to QA. However, a small team is not the best choice for the support and maintenance of an entire headless system.
Building an API-driven architecture involves many more technologies than building traditional platforms. This suggests expansion of the development team, right up to opting for the help of third-party vendors. Even if you already have a dedicated team in place, you still have to streamline your team activities and responsibilities and learn how to correctly delegate new tasks so as not to waste valuable resources and get the desired results in a timely manner.
Top 4 Headless E-commerce Platforms
The choice of your headless e-commerce platform vendor may seem problematic at the beginning. You should thoroughly examine your current business state in the digital landscape and its strengths and vulnerabilities, then understand the market to perfectly match your needs with what it offers.
Here are the basic criteria to rely on when making a decision regarding the best headless e-commerce platform:
Cost-effectiveness. Is the pricing policy of your vendor transparent and flexible? You should always be aware of hidden costs, and it's always better to conduct preliminary research, get in touch with a software community, and explore all pitfalls at the outset.
Usability. Is this system convenient-in-use? Does the vendor provide good tech support and trainings for employees?
Ease of integrations. As this aspect is one of the main reasons that many entrepreneurs switch to the headless approach, you should ascertain that your potential CMS can be smoothly integrated with third-party tools.
To facilitate your choice, Dinarys experts have conducted their own research and picked out the four best headless e-commerce CMS’s that can help you start a new chapter in your business performance.
Magento
As Adobe Solution Partners, we want to start with this e-commerce platform. Dinarys possesses broad experience in Magento web development, and this CMS has always positively impacted our clients’ businesses. You can ascertain its huge potential by reading our article about Magento Success Stories.
Since version 2.3 was introduced, Magento has supported GraphQL as API. If you haven’t yet upgraded your Magento minor version, then the only way to go headless is by developing a custom API. Those who have already split their Magento backend and frontend claim that it was a winning move in terms of analytics capacity and data visualization improvements.
Chris Hammond, Global Digital Director at Helly Hansen, said that Adobe significantly strengthened the company’s ability to build one-of-a-kind, engaging shopping experiences.
This headless e-commerce platform addresses almost any needs experienced by modern merchants. Now, they can effortlessly deliver an app-like experience across various endpoints: single-page and multi-page web apps, mobile applications, AR and VR, IoT devices, etc. Adobe Commerce offers more than 500 Rest and GraphQL operations, which guarantees total flexibility. Besides, the Adobe Commerce core can be integrated with other Adobe products, such as industry-leading Adobe Experience Manager, as well as with third-party tools, which can give your solution increased availability.
Want to make your Magento headless and boost its performance too? Contact us today to discuss your project. Meanwhile, let’s discover the ultimate aspects of how to get ready to switch to headless:
Dedicated development teams. Once you split the code, you should consider several specialists, with the focus on the separate layers of your headless e-commerce software: full-stack developers to serve your backend operations and frontend developers who are aware of Magento development ins and outs.
Technological stack. Even though headless Magento freely supports third-party integrations, you should still be aware that not every third-party vendor can be compatible with headless. In this case, it will be necessary to customize your existing tools to be ready for headless or create a counterpart. Nevertheless, since headless adoption is underway, more and more vendors are tailoring their products to API-based solutions.
Resource planning. The cost and time of headless transformation should be defined beforehand, since this process is quite time-consuming.
Shopware
Shopware 6, a simple-in-use yet powerful CMS, comes with headless capabilities, too, especially the Shopware 6.4 release. As the company considers the alliance of backend and frontend an outdated symbiosis, it provides a future-oriented API-first approach, which allows shop operators to implement several business models simultaneously and deliver content to different surfaces.
For a better understanding of the modular nature of Shopware 6, let’s refer to the main units of this system:
Core - a layer where all store operations take place.
Administration - an interface where an admin manages processes associated with a previous environment.
Storefront - a default frontend layer that serves client-side activities.
Another integral part of headless Shopware is API. There are three types of API, each of which pursues its own goals:
Admin API is designed for CRUD operations and, as a result, seamless store management.
Sync API is a part of admin API. It aims at bulk data import and export.
Sales Channel API is meant for common storefront functionality and enables the realization of completely new sales strategies.
Although Shopware can function in headless mode, the platform still comes with a fully-fledged storefront. However, headless is not the only competitive advantage of Shopware 6. If you run an enterprise-level business, you might be interested in this article: Shopware Enterprise: the Ins and Outs of the New Offer.
Salesforce is also considered one of the best headless CMS for e-commerce. It is a US cloud-based deep e-commerce system that helps both mid-size and large businesses to address their specific marketing needs and maximize conversions. The platform’s scalable Commerce API infrastructure significantly contributes to these possibilities.
The Salesforce Commerce APIs can be divided into such groups as
Shopper APIs, which target storefront shoppers and are available for either guest or anonymous users or authenticated ones.
All other APIs, accessible only by “high-privileged” users who have access to the Commerce Cloud system via Account Manager. Among these users can be store operators and developers.
Thus, due to the headless SFCC, e-commerce companies can exploit the following benefits:
Launch new revenue streams faster due to the fast-track development process
Innovate online stores with certified SFCC extensions, including features for email marketing, order management, personalization, etc.
Gain freedom of brand expression
Watch the video below to find out how SFCC increases the efficiency of development to get products to market faster:
CommerceTools
CommerceTools is an e-commerce platform famous for its modern MACH (Microservice-based, API-first, Cloud-native, and Headless) principles pillar. The company promises to make a positive impact on essential B2B, B2C, and D2C business metrics, specifically to
Increase average order value by 40%.
Improve conversion rates by 20%.
Decrease the total cost of ownership by 75%.
Boost website speed by 70%.
In other words, the CommerceTools company focuses on a vision of the headless environment as a game-changer and represents the API-first approach as the heart of the digital revolution to enable data to be consumed from any device, anywhere. Here is how the company simplifies headless e-commerce adoption:
The modular platform’s architecture with pluggable APIs allows for easy integration with any third-party vendors and existing software your business runs on.
GraphQL retrieves only the requested data. The call size reduction consequently helps to enhance performance.
Being programming language-agnostic, just like Dinarys, CommerceTools gives developers the freedom to decide what tech stack to pick for the project.
Top 5 Headless E-commerce Examples
Let’s see how headless works in practice. Below, you will find several examples of e-commerce companies that underwent a profound transformation due to the headless approach.
Lancôme, a French luxury perfume and cosmetics store, managed to achieve a 17% increase in conversion since the brand decided to improve its user experience through PWA and went headless.
United Airlines, one of the major American airline companies, fine-tuned its booking experience on the platform by switching to PWA.
Koala, an Australian furniture company, saw huge potential in headless architecture, as one of the brand’s values is that it provides the smartest way to purchase furniture. Launched in 2015, Koala has already reached $13 million in sales.
The Nike company doesn’t require an introduction. As a market leader, Nike partially owes its success to headless. The brand involved the mobile-first approach in its overall sales strategy and quietly but surely increased the percentage of engaged mobile users.
Target, a vast American retailer and the main competitor of well-known Amazon and Walmart, also decided to join the headless movement. The company began with research and found that nearly 80% of its customers preferred to use multiple devices to finish their buying journeys. With headless e-commerce, Target filled the gap in its sales channels and now claims that this solution has completely addressed its issues.
To Sum Up: Build the Modular Future of Your E-commerce | Dinarys
The current market is setting out new rules, and going headless under present conditions offers countless prospects for online entrepreneurs. Firstly, it offers the possibility to construct your shopping experiences on the go. Secondly, headless e-commerce CMSs massively facilitate omnichannel retail and personalization strategy fulfillment – you are able to dynamically display content to target audiences based on their location, order history, etc.
At Dinarys, we create e-commerce solutions that are ready to scale with you anytime. We offer diligent assistance throughout the development lifecycle and bring to life ideas with the use of reliable e-commerce technologies, among which are Magento, Shopware, Salesforce, and CommerceTools.
Contact us today to choose the best headless CMS for e-commerce, plan your software architecture, and unlock the full potential of your enterprise. Let’s go headless together!
FAQ
The frontend and backend of a headless solution can function independently. The frontend part of an application defines what customers see: It is a UI head of the application. The backend is an application body that handles data storage, processes front-end requests, and returns data in a structured and coherent way.
In headless architecture, only some parts can be separated, while microservices allow the solution to be fully decoupled on small independent services.
Since version 2.3 was introduced, Magento has supported GraphQL as API. If you haven’t yet upgraded your Magento minor version, then the only way to go headless is by developing a custom API. Those who have already split their Magento backend and frontend claim that it was a winning move in terms of analytics capacity and data visualization improvements.
Shopware 6, a simple-in-use yet powerful CMS, comes with headless capabilities, too, especially the Shopware 6.4 release. As the company considers the alliance of backend and frontend an outdated symbiosis, it provides a future-oriented API-first approach, which allows shop operators to implement several business models simultaneously and deliver content to different surfaces.
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