Headless EC in IoT era, which supports cashless and touchless, and becomes the engine for building live commerce, omnichannel and D2C
Society is moving toward a new stage called IoT, powered by 5G and local 5G, edge computing, advances in edge AI technology, and evolutions in robotics. And the world of EC is changing in response to that. From IoT devices to advanced web apps, consumers are also becoming more familiar with purchasing products via a variety of touch points.
Interfaces such as AI speakers, in-store digital signage and so on are providing consumers with new ways to search for product information, get recommendations, and place orders. In other words, consumers are embracing the IoT era, but that’s not to say that most retail businesses are ready for it. Many are aware of the importance of the trend, but have not done anything about it. How can you build such an IoT-ready, scalable ecommerce system? A clue to the answer can be found in a headless CMS and, by extension, a headless commerce platform.
Headless commerce platform
A headless platform is a platform with the highly scalable configuration and design features referred to “headless.” If you say a headless CMS platform, it has CMS capabilities (content management features) that store, manage and deliver content without the use of a front-end delivery layer.
Headless commerce is the commerce version of it. Headless means having no head, no face. In system architecture POV, it means that it doesn’t have a presentation layer to the user. The headless platform is separated from the front end (the part of the presentation and view that includes templates and themes). Developers can use APIs to deliver content such as products, blog posts and customer reviews to any screen or device. Front-end developers and designers can use their favorite frameworks and software to display the content.
By contrast, traditional ecommerce platforms usually have a head and a face. It means that a predefined front end is tightly coupled to the back end. Hence, even with a wealth of customization features, it is difficult for such an ecommerce platform to dramatically change its front-end design to take advantage of new software and services. It also makes it more difficult to deliver content outside of usual web and mobile app formats, for example, to PWA (Progressive Web App), digital signage and AI speakers, smart watches and car navigation systems.
The headless ecommerce platform is a modern solution offered as a microservice built on top of a cloud base, with a so-called cloud-native configuration.
It connects not only to the front end, but also to your own back-end systems, such as payment gateways and warehouse management, via API. Hence, the front-end design can also be changed at will and commerce services can be enabled on a variety of devices. In that sense, a headless ecommerce platform can help you gain flexibility for the IoT era.
The engine for live commerce, omnichannel and D2C
I don’t think it is common for companies to build everything from scratch in the development of modern e-commerce services. Many companies use Adobe for front-end management, SalesForces for customer management, SAP to connect to the manufacturing and warehouse side, and Tableau for data analysis as BI tool. There is no end to the list of typical software and services widely used. Whether it’s a core system or a separate system for several departments, most of them already utilize a variety of software. That’s why companies are wondering how to provide ecommerce to various devices in the IoT era, including home appliances. Furthermore, the trend of livestreaming commerce, that is currently booming in China and South Korea and is also attracting a lot of attention in Japan, is about to begin.
This is where the headless ecommerce platform comes in. Through API calls, it is possible to integrate with the various systems already in place to provide new commerce services, including live commerce, on a variety of devices. In addition, especially in Japan, there are not a few cases where commerce systems need to be adapted to the unique business practices of the industry, and the implementation of packaged solutions requires a lot of custom development. Headless architectures offer greater customization flexibility and the advantage of being able to address complex and intricate requirements one by one. You could replace the traditional point-of-sale (POS) system in physical shops and create a system that shares order management with an ecommerce site, thereby promoting omnichannel implementation. Omnichannel is important. According to a 2017 study by the Harvard Business Review, out of more than 46,000 shoppers surveyed, those who used multiple channels made more purchases online than those who used only a single channel. And, shoppers who used multiple online channels were more likely to make purchases in physical stores than those who used only a single channel. Building a more seamless OMO system will be a key point in the future of retail.
Headless commerce platforms can also help build D2C sites, one of the biggest topics in consumer business.
Headless commerce platforms can support new technologies as they arise. This is a strong foundation for continuing to deliver new customer experiences in these times of rapid change and accelerated digital shift. For example, adding a Slack-connected customer-support is also easier than with traditional ecommerce solutions. Besides, since each system is loosely coupled through APIs, it can be updated independently, reducing the complexity of maintenance. Thanks to this flexibility, your marketing team will also be able to launch a new site in days instead of months. And you’ll be able to roll out multiple ecommerce sites across different brands, departments and portfolios.
From the traditional view of an EC system as a huge monolithic infrastructure, the headless architecture and platform appears to be the beginning of a new era. This year’s Forrester Wave, a competitive analysis by Forrester, also confirms the rise of headless ecommerce platform in the commerce space.
Like cashless payments, touchless payments, and the trends of livestreaming commerce, omnichannel and D2C, in the IoT era, it’s important to deliver new experiences to consumers quickly at various touch points. At this stage, the headless solution, which fits in with the cloud-native trend, will be a powerful weapon for your business.
