The Future of Digital Commerce: How Headless eCommerce Can Scale Your Business

Headless Commerce is a software platform that helps separate concerns between the two fundamental parts of an online store. The backend and the frontend. The backend handles the servers and the data. The front-facing part is the visual part that users interact with on their devices.

The two components communicate with each other using APIs. The servers handle all the business logic, and the APIs or endpoints send data from the server. This data is consumed by the frontend or UI.

In an eCommerce platform, we can build various features like shopping carts, payment methods, shipping methods, etc.

Headless Commerce is one of the ways to build and run an online business.

Now, one interesting thing to understand is the “headless” part of a Headless Commerce application. What does this mean? 
What makes it different from the traditional commerce platforms?

We bring the best in technology and software to help build and grow your online business and services. As an established software and product development company, we house highly skilled and experienced developers. We truly understand the potential of online commerce software.

Headless commerce is a great way to build an online presence with minimum hassles. However, we also understand the benefits and limitations of it.  And so should you.

In this post, we will try to find out the aspects of headless commerce in a very systematic way.

Headless commerce provides ways to develop an online store or online services by separating concerns of the backend or data handling and the frontend or the user-facing.

In simple terms, these two components are decoupled from each other. The data is received through APIs which are basically the endpoints that enable the frontend to fetch the information and handle it accordingly to create the user interface.

The “Head” in “headless” is the frontend. Headless means that the frontend is not an integral part of the setup. It can be designed, developed, and integrated as per the requirements. All the other stuff regarding the servers is already there.

To make it even more clear, we can draw an analogy of an engine. An engine can be used to make cars, pickup trucks, etc. So it’s like taking the same engine with different specifications and using it to make cars, pickup trucks, and so on.

Now what makes headless commerce interesting is that it is like a framework. All the code logic for backend is already there. All we need to put is the data that we want inside it. Then we need to connect this backend to the UI design and technology of our choice.

Unlike traditional online stores or e-commerce software, where everything works in a unified system and has to be coded exactly as the business requirements, headless commerce allows for pre-defined ways to do things.

Let’s try to understand this in a more simple way.

There are two businesses that are trying to sell things online.

• One is a clothing business, and the second is a grocery business. There are so many common things we find in these two kinds of business. There are products, categories of products, pricing, quantity, payment methods, shipping methods, and so on.
  
  The clothing business website or application has its own theme for its stores with its branding colors, fonts, and similar things that they want. Their products are shirts, t-shirts, pants, and so on. These products have categories like men's wear, women's wear, and children’s wear. There is a pricing to all and offers payment methods with Credit Cards, Debit Cards, and UPI.
   
• The grocery business has its own theme for its store. They have their branding colors and fonts.  They also have products like food, apples, wheat, rice, Coca-Cola, and so on. They also have categories like daily use of fruits, groceries, and soft drinks. They also have the pricing for all and offer payment methods with Credit Cards, Debit Cards, and UPI.

Wouldn’t it be nice if there was a common framework or system in place that allows one to put this common information to make two entirely different online stores?

The two stores are selling two different things, but they can use a system just to put in the data, customize the store the way they want, and start selling. Headless commerce gives the exact solution by providing a system to put all the info and let the business owners get up and running their business in minimal time.

The above infographic shows a simplified architecture of Headless Commerce. Let’s try to break it down with some explanations for better understanding.

Backend

The backend part comprises all the key fields related to an eCommerce platform. These comprise the code logic for all the operations like inventory management, user management, payment gateway integration, shopping cart logic, discount logic, and so on.

The important thing to understand here is that these fields are the most common ones in an online store. So, this can be used to fill data as per the business needs. Most code logic and processing comes out of the box via these platforms. They also take care of the security and other optimizations for an online store

For example, if a business is selling online machine parts, they can fill in the data accordingly. The same fields can be used to sell books.

Some platforms that provide this kind of setup include Contentful, Storyblok, Strapi, Prismic, and Sanity.

APIs (Application Programming Interface)

Now that we have a backend in place, there has to be some way for the servers to talk to the frontend or the user interface. APIs are used for it. They provide links or endpoints to be specific. These are responsible for data exchanges. They are usually RESTful APIs or the REpresentational State Transfer Application Programming Interface. They act as a bridge between the backend and the frontend parts.

JSON is a very popular format used for data exchange in the APIs

Frontend

The last piece of the puzzle is the frontend. This is where all the customization happens when it comes to creating as per the designs and use cases.

Popular frameworks and libraries like React, Next.js, and similar others can be used to handle the data incoming through the APIs connected to the backend. The custom UI can be created using these technologies with the specific use cases.

This frontend can be customized for many devices and native apps. For example, the same data comes to a desktop application, online website, native mobile app online store, social media, and even smart wearables to create a complete ecosystem.

Also read: Why Next.js is a best match for startups?

Different types of frontend frameworks can be used with headless commerce platforms. These frontend platforms are very popular choices.

Below are the types with examples for the same:

• Static site generators (SSGs): They can help generate static HTML files that can be hosted on any server or CDN. Examples of SSGs are Gatsby, Next.js, and Nuxt.js.
• Single-page applications (SPAs): They load a single HTML file and dynamically update the content using JavaScript. Examples of SPAs are React, Angular, and Vue.
• Progressive web apps (PWAs): They are web apps that can be installed on mobile devices and offer native-like features, such as offline access, push notifications, and home screen icons. Examples of PWAs are PWA Studio, Ionic, and Workbox.
• Headless CMSs: They are content management systems that provide a user-friendly interface for creating and managing content, such as blog posts, landing pages, and product descriptions. Examples of headless CMSs are Contentful and Strapi.

Headless commerce has many traits and attributes that make it a strong contender for building scalable online businesses. Yes, there can be challenges around it that will be covered further down the post.

Let’s check how headless commerce can be a great choice while offering scalability and flexibility while putting up online stores. One thing to note is that the list below is not exhaustive and there are many other benefits too. These are the most important ones to consider.

Some advantages of headless commerce include

Faster Loading Times

Since the frontend and the backend are separated from each other and the only way to communicate is through the APIs, this makes headless commerce very fast and responsive.

Better Customer Experience

The amount of customization offered by headless commerce has no limits. This helps in building user interfaces in many different and creative ways making the customer experience pleasing. It also helps to work on user feedback faster.

Read More: User Feedback in Product Development: Why It Matters

Faster Development

Since most of the code logic is pre-defined, the development times using headless commerce are also less. It's a faster way to put your business online and get up and running.

Consistency Across Devices

Headless commerce allows for consistent data flows across various devices. Mobile devices and apps play a significant role in online purchases. This enables the developers to create frontend layouts for multiple mobile devices without worrying about the backend or data part of the commerce application.

Integration of AI/ML

They also allow for easier integration of AI/ML into the online business. Recommendation systems specific to Machine learning can help in higher sales. This also helps to provide recommendations to users based on their purchase habits.

Chatbot Integration

Chatbots have been very popular nowadays. This helps the business provide customer support 24/7. Since all the logic has already been provided by the headless commerce services, it takes minimal time to integrate them with one’s online business.

Low Initial Setup Cost

Headless commerce provides cost-efficient solutions. The initial costs for setting up online stores are lower than setting up traditional commerce stores. It also provides options to include what is required. Since there are numerous services available with headless commerce providers, they can be customized as per the needs. This can help downscale or upscale as per the business requirements.

Better Sales and Marketing Features

Since headless commerce offers so many out-of-the-box features to set up an online store, it also allows for faster integration of marketing and sales tools for businesses. Third-party integrations are widely available to extend customer reach. Social media can also be integrated with it making the online presence more effective and resulting in higher sales. Additionally, they have features for dashboard and analytics to monitor the online business in a very organized way.

Until now, we have been looking at the positive side of headless commerce. But it has its disadvantages and cons as well. It must be kept in mind that these disadvantages are not at all a deal breaker.

Since headless commerce provides very efficient ways to start and run a business in minimal time, they are widely adopted by many businesses. The trend is set to continue, but it is also important to understand its limitations.

Headless commerce has a few drawbacks that are worth mentioning, such as:

• Dependency On Service Providers
  It's crucial to keep in mind that when using headless commerce, the code logic is provided by a service company. This means that you may become dependent on their frameworks and support when troubleshooting. However, this is usually not a major issue, as trusted vendors like Shopify are available to provide reliable services.
• Complex to Maintain
  Headless commerce providers offer a ton of services and functionalities, which can make things a bit overwhelming. With so many APIs, documentation, and versions to navigate, it's important to have expert developers on hand to handle everything. But don't worry, we've got you covered! Even though it can be complex, we’re here to make sure everything runs smoothly and stays in check.
• Hard to Test and Troubleshoot
  Headless commerce platforms are designed to create customized e-commerce solutions. However, difficulties can arise if there are problems with the platform setup itself. For instance, if there are bugs or issues that disrupt your system, it can be a challenging task to test and troubleshoot the problems.
• Not Ideal for Highly Complex Business Needs
  Many online businesses operate in traditional ways. For instance, both grocery stores and clothing stores have similarities in their operations. However, complications arise when the business logic or model becomes complex and the scopes for it are constantly changing. If there are frequent updates and modifications to the workflows of a business model, it can pose challenges for headless commerce.

In this post, we discussed the key questions surrounding headless commerce. While there are effective solutions available for various business needs, such as online product and service sales, the decision to adopt a comprehensive solution like headless e-commerce ultimately depends on the product owners and their vision.

We provide software and e-commerce development services that cater to clients' needs. Headless eCommerce is a fantastic option for quickly getting started with selling products online. However, it's important to be aware of its limitations. While it offers great flexibility and customization options, it does have some constraints.

Thanks for taking the time to be here. 👍 Happy Selling!