Why retailers are choosing composable commerce in DXPs

Highlights

You’ll learn why retailers are opting for composable commerce.

• Flexibility: Modular systems adapt to trends without major overhauls
• Personalization: Deliver tailored shopping experiences to customers
• Cost Efficiency: No vendor lock-ins. Lower total costs by using only necessary tools
• Faster Deployment: Launch new features and updates in days, not months

Gartner was bullish about composability as far back as 2020, predicting that “the future of business is composable.” That is already coming to fruition, with up to 72% of retailers already opting in. 

Why are these brands opting for this new approach? The answer is quite simple: Legacy systems struggle to customize customer journeys. They come with high ownership costs, are slow and are difficult for business users to use. Composable commerce, driven by a DXP, addresses these issues.

What is composable commerce?

Composable commerce is an approach to building flexible e-commerce systems by mixing and matching specialized tools. It uses pre-built, API-driven modules (PBCs) to manage specific business functions.

This modular approach helps you overcome the limitations of monolithic platforms that require an overhaul to make changes or upgrades.

Packaged business capabilities (PBCs)

PBCs are self-contained, reusable modules that perform specific business functions. You can assign, deploy and upgrade them as independent modules. They are quick and easy to deploy as they do not require much coding.

A 2023 Gartner report shows that PBCs reduce vendor lock-in risks. They also support fast adaptation to market shifts and remove the excesses of a bloated monolithic system.

Importance of MACH in composable commerce

MACH principles—microservices, API-first, cloud-native and headless solutions are the backbone of composable commerce.

• Microservices: These are small, independent applications that handle specific business functions. A Ciklum study found that 85% of large and 75-84% of mid-sized companies have adopted microservices for scalability and agility.
• API-first design: An API-first approach ensures every PBC can share data with others without issues. APIs also eliminate the need for manual coding for integrations.
• Cloud-native platform: Solutions like AWS and Google Cloud use auto-scaling to allocate extra computing resources as required when traffic peaks or drops.
• Headless solutions: Headless systems decouple the front end from the back end. This allows you to build front-end experiences that suit your e-commerce goals. 

A 2025 MACH Alliance report shows that of 87% of businesses that use MACH, 90% achieve or surpass their ROI targets.

How composable commerce aligns with DXPs

A composable digital experience platform provides an open platform that allows retailers to ‘compose’ multiple commerce tools to deliver a tailored shopping experience.

The synergy between composable commerce and DXPs

In essence, DXPs power modular commerce. So, you get the DXP platform, and then you pick and choose digital commerce tools to serve specific business functions, such as payments, front-end UI, etc. The synergy is driven by:

• Centralized data management
• Omnichannel delivery
• AI integration

Key integrations with DXPs

Key integrations with DXPs enhance customer engagement and streamline operations through targeted data, AI and automation. These integrations may include:

• Customer data platforms (CDPs): These systems gather and analyze customer data to provide targeted content.
• AI tools: They improve the customer experience through product suggestions or responsive chatbots. Think of how Spotify uses your listening history to suggest songs.
• Marketing automation: Simplifies campaigns such as cart abandonment emails, flash sale notifications or post-purchase follow-ups.

Composable commerce vs. headless commerce

There is no conflict between these approaches. Instead, a headless approach can be a precursor for composable commerce. 

While headless commerce separates the front end from the back end, composable commerce takes this further by making the entire tech stack modular, from front end to back end. Both are flexible but to different extents and serve different needs. See how they compare:

Choosing the right approach 

Headless commerce or composable commerce depends on business needs. As follows:

• Headless commerce: This suits a business that wants to customize its front-end experience. For instance, it would suit retailers that want to A/B test landing pages or adapt their UI for new markets, such as Ramadan-themed layouts.

• Composable commerce: It introduces more flexibility, using PBCs to build a tailored back-end. It is ideal for businesses with complex needs where different systems like inventory, marketing and payment need to work together across various platforms.

Key components of composable commerce

From cloud scalability to microservices, composable commerce is a symphony of technologies. Here is how each component works in harmony to sustain your digital strategy. 

• Cloud-native solutions: These are technologies built and managed in the cloud, allowing businesses to scale computing demands, up or down, as required
• API-first architecture: APIs enable disparate systems to share data
• Microservices: Microservices allow independent module updates
• Front-end decoupling: Separating the front end makes it easier to create innovative and seamless front-end experiences

Benefits of composable commerce for businesses

Why have 72% of retailers already adopted a composable approach to e-commerce? Here are the reasons.

• Flexibility: Businesses evolve, and so do customer expectations. With composable commerce architecture, you can adapt to trends without a complete system overhaul. 
• Personalization: Today’s shoppers want tailored experiences. With composable commerce, you can build an e-commerce platform to deliver that.
• Lower total cost of ownership (TCO): You avoid expensive upgrades, maintain only the tools you need and reduce development overhead. Statistics show that 27% of retail executives said composable commerce reduced the TCO.
• Faster deployment: With composable commerce, you can launch new features in days rather than months. This is a departure from monolithic platforms that often require up to 12–18 months for such updates.

Here is another blog where we covered the key benefits of composable commerce in detail.

Case studies

Emma

Emma runs a large web, third-party and physical store operation with over 200 retailers. As the business grew, ticket issues increased and updates became slower and costlier.

Emma switched to Contentstack, leveraging its Contentstack’s DXP and headless CMS to power its commerce solutions. By deploying MACH, they took advantage of content reuse to deliver a flexible and faster e-commerce experience.

Andreas Westendörpf said, "The beauty of headless commerce is that it not only delivers short-term results but also that it opens an elegant, logical long-term set of options for the future. This is what we have found with Contentstack and MACH-based technologies."

Read more about how Emma improved its e-commerce with a DXP for composable commerce.

1-800-Flowers

1-800-Flowers operated with a slow and inefficient legacy system, which affected their ability to deliver a unified user experience. Changing layouts and updates also required extensive developer work.

Contentstack’s composable technology enables it to create a unified customer experience. The use of modular blocks in its composable commerce stack also enables it to filter zip codes to create same-day deliveries.

Matt McHale said, "Contentstack helps provide the foundation we need to scale efficiently, enabling us to manage multiple brands effectively and continue delivering high-quality experiences to our customers as we grow. It was a big shift for everyone, but we haven’t looked back."

Keep reading to see how 1-800-Flowers achieved e-commerce success with Contentstack.

How to implement a composable commerce architecture

Going composable should be gradual, especially for organizations with limited technical maturity. Start with the most critical areas and add modules over time. Here are the steps to follow:

1. Audit existing systems: Identify bottlenecks in your current stack, like slow checkout or siloed data, using tools like New Relic or Datadog. For instance, if a fashion retailer's platform loads product pages in 8 seconds, causing a 32% cart abandonment rate, first replace search and checkout modules as they directly impact revenue.
2. Prioritize high-impact PBCs: Start with components that deliver immediate ROI. For instance, AI-powered search can reduce bounce rates by surfacing relevant products faster. You can then follow up with dynamic pricing using real-time demand or inventory levels.
3. Adopt phased migration: Implement in stages. First, deploy a payment gateway alongside your existing system and monitor its performance. Then, roll out extra modules such as loyalty programs and CDP integrations.
4. Partner for technical expertise: Prioritize critical skills such as API governance and MACH principles. Partner with certified MACH vendors like Contentstack to fill skill gaps. 
5. Implement API governance: Use REST or GraphQL for all PBC communications. Monitor performance with tools like Postman to track API latency and error rates.
6. Track and improve performance: Define KPIs aligned with your business goals. These could include anything from reducing time-to-market for new features, lowering TCO or scaling your e-commerce operations.

Challenges in adopting composable commerce

Transitioning from these systems can be difficult, resulting in some challenges with modular commerce adoption. Here are a few of them with their solutions:

• Technical challenges: Managing multiple integrations can create conflicting protocols. Also, too many API calls can slow down the system. Deploying API tools such as Apigee can help manage these issues. Also, consider edge caching and API security, such as mutual transport layer security (mTLS).
• Business alignment issues: There may be issues of team alignment, for instance, if IT prioritizes modular systems while marketing wants speed. Conduct a discovery process to outline business and technical needs and ensure IT and business are aligned.

Solutions to overcome implementation issues

Adopting composable commerce has challenges, but here is how to overcome them:

• Training support by DXP vendor: Partner with the composable DXP provider for documentation, technical assistance and relevant training materials.
• Security by design: Leverage enterprise-grade security with MACH Alliance vendors, like Contentstack, to ensure security and regulatory compliance.
• Proof of concept pilots: Test high-risk PBCs such as AI recommendations for 90 days before scaling.

FAQ section

What is a composable DXP?

A composable DXP is a modular SaaS platform that enables businesses to integrate digital tools that allow businesses to deliver tailored user experiences.

How do DXPs enhance composable commerce?

DXPs offer MACH features that enable you to integrate digital tools and centralize data and content to drive an e-commerce strategy.

What is the difference between composable and headless commerce?

Headless commerce separates the front-end experience from the back-end, while composable commerce takes it further, enabling customization of both.

What is decentralized commerce?

Decentralized commerce is an approach based on the blockchain technology. It creates a peer-to-peer marketplace where buyers and sellers can interact without intermediaries or central authorities.

Learn more

A composable DXP provides the platform for businesses to integrate commerce solutions to advance their e-commerce strategy. It is flexible, scalable and agile, making it ideal for modern businesses. 

Brands that switch to a composable commerce approach can reduce the total cost of ownership by up to 27%, deploy new features faster and save costs by avoiding vendor and technology lock-ins.

With Contentstack’s composable DXP, you have the right tool to power your e-commerce strategy, ensuring you get ahead of the competition. Talk to us today to learn more.