What is Headless Commerce: A Complete Guide for 2024

 It’s truly a point to wonder how leading brands manage to keep their customers consistently satisfied, meeting changing market needs and customer preferences. No doubt it’s quite challenging as various management modules and technical support are required to handle the complex end-to-end e-commerce system expertly delivering maximum results with minimal effort.

Here headless commerce enters as one of the revolutionary and flexible e-commerce solutions which is expected to grow by about 20.5% every year until 2027. By then it’s estimated to have reached a total market value of $32.1 billion. It separates what customers see and interact with (frontend e-commerce) from the underlying business logic and processes (backend e-commerce).

Front-end e-commerce

The front end, also known as the customer side, is the part of the website that users interact with directly. It includes elements such as the user interface, design, layout, and content. In the context of e-commerce, the front end encompasses everything that shoppers see and interact with while browsing products, adding items to their cart, and completing purchases. This includes product listings, search functionality, shopping carts, checkout pages, and any other features visible to the user.

Back-end e-commerce

Backend e-commerce is the part of the website that users do not directly interact with. It includes server, application, and database working together to ensure the functionality of the front end. It manages tasks such as order processing, payment processing, user authentication, data storage, and inventory management for e-commerce stores.

How does it benefit?

This separation gives brands the freedom to design their store exactly how they want, without any limits. So, if they want to add cool features or change things, they can do it easily as changing the front end won’t disturb backend settings or vice versa. 

  • Quick Updates 

With headless commerce, businesses can launch new features and updates of storefronts 77% faster. They can react to trends without waiting for developers to update the back-end e-commerce. 

  • Efficient Developers

 Headless means developers save time. They can change the look without needing to mess with the back end. They spend 34% less time dealing with upgrades and fixing bugs, allowing them to focus more on growth and innovation.

  • Special Experiences

 It lets brands create unique shopping experiences. APIs help keep everything consistent, so customers get the same feel across different platforms.

  • Improved Site Performance

 The headless e-commerce platform can make websites run 30% faster ensuring a smoother and much more enjoyable experience for users.

  • Increased Return on Investment (ROI)

 47% of the businesses using headless commerce saw a boost in their ROI, indicating that this approach can be highly profitable.

  • Cost Savings

 Companies adopting headless commerce are expected to save approximately $1.4 billion each year in IT expenses. This means more money can be allocated to other areas of the business.

  • Higher Conversion Rates

 Businesses using headless commerce typically see a 42% average increase in conversion rates. This translates to more sales and revenue generation for the brands.

 

Renowned Brands Who Embraced Headless Commerce

Many famous brands have switched to headless commerce to make their online shopping experiences better and boost their businesses. Nike used special technology to improve how their website works on phones, which helped them beat competitors like Adidas. Burrow on the other hand implemented headless commerce as they wanted more creativity and control over their website resulting in a 30% boost in conversion rates and a 50% improvement in site performance. Venus, a leading women’s apparel retailer, saw significant enhancements in site speed, a 24% increase in conversion rates, and an improved customer retention rate. K2 Sports, seeking a more cost-effective and feature-rich solution, adopted headless commerce to enhance API performance and create content-rich experiences, achieving a 75% faster site creation, 90% faster content publishing, and a 50% boost in team productivity.

Headless Commerce offered by Comverse

Brands need to join hands with an e-commerce platform such as Comverse by Ginkgo Retail that provides an end-to-end e-commerce system, they can get even more powerful to create awesome shopping experiences that customers admire. Comverse by Ginkgo Retail  can handle both backend and frontend procedures via its built-in features to ensure headless commerce. Here’s how:

Backend Procedures
  • Inventory Management

Comverse manages inventory across multiple locations, ensuring synchronization between retail stores and the e-commerce platform. It treats multiple retail locations as a single warehouse, simplifying inventory management for e-commerce.

  • Order Management System (OMS)

The platform efficiently manages orders from various sales channels, ensuring seamless processing and fulfillment. It automates order processing, reducing manual effort and errors.

  • Logistics Management

Comverse facilitates efficient shipping and fulfillment for e-commerce by selecting the best logistics service for each order. It automates logistics processes based on predefined criteria, enabling quick and accurate operations.

  • Product Management

The platform streamlines product management, allowing businesses to easily add, update, or remove products as needed. It supports the management of product attributes, categories, and variations.

  • Retail CRM

Comverse includes a retail CRM system to manage customer relationships effectively. It tracks customer interactions, purchases, and preferences to personalize marketing and improve customer retention.

  • Business Analytics

The platform offers advanced reporting dashboards for analyzing business performance. It provides insights into sales trends, inventory levels, marketing effectiveness, and customer behavior. 

  • Marketing automation

Comverse by Ginkgo Retail streamlines marketing automation for e-commerce through backend processes. It segments customers, triggers personalized email campaigns, and schedules promotions, all aimed at enhancing the customer experience and driving sales. While primarily backend, these efforts indirectly influence frontend experiences, contributing to a seamless shopping journey for customers.

Frontend Procedures
  • Multi-Customizable Storefront Themes

High-end customization allowed by Comverse to e-commerce businesses helps to create the look and feel of their storefronts using multiple themes. It enables them to create unique and engaging shopping experiences tailored to their brand and target audience.

  • Featured Apps

The platform offers a wide range of built-in apps to enhance the functionality of the front end. Businesses can easily add features such as size charts, wishlists, push notifications, and delivery time slot management to their storefronts.

  • Payment Gateways

Through its multiple payment gateway integration for e-commerce, Comverse provides secure and convenient payment options for customers. It ensures smooth checkout experiences by supporting various payment methods and currencies.

Comverse is beyond headless commerce

By handling both backend and frontend procedures, Comverse by Ginkgo Retail enables businesses to create seamless and engaging headless commerce experiences for their customers. Comverse is more than just a headless commerce platform, it’s a comprehensive end-to-end e-commerce system that offers flexible e-commerce solutions for brands. Unlike Shopify, which may require third-party applications for certain features, Comverse integrates everything seamlessly into its platform. Merged with Ginkgo Retail, Comverse provides technical assistance, eliminating the need for brands to hire separate technical expert teams for management systems. This integrated approach not only saves costs but also ensures efficient management of e-commerce systems. With Comverse’s omnichannel solution , brands can streamline operations and deliver exceptional customer experiences across all touchpoints.

It’s a cost-effective solution

Comverse offers a cost-effective solution for businesses looking to streamline their e-commerce operations. With its integrated features and bundled services, Comverse reduces the need for additional third-party applications and technical expertise. This translates to significant cost savings for businesses, with potential reductions in software licensing fees, hosting expenses, and IT staffing costs. Brands utilizing Comverse could experience cost savings of up to 30% compared to a traditional e-commerce platform. Additionally, Comverse’s efficient management tools and streamlined processes contribute to improved operational efficiency, further enhancing its cost-effectiveness.