The eCommerce industry is booming just like it always has, but it’s going through some stark changes. In recent years, customers have been gifted new ways to make purchases online, thanks in part to the emergence of headless CMSs.
From Kiosks to smart speakers to connected buttons in our kitchens, consumers can now make purchases away from their laptops, smartphones, and tablets; and yet the IoT era has barely begun.
In this article, we take a deeper look into the world of headless eCommerce and the best practices eCommerce brands should follow should they decide to go headless.
What is Headless eCommerce?
Headless eCommerce is a term that is used to describe when the frontend of your eCommerce platform, usually an online website, is separated, or decoupled, from the backend, which stores all the files, content, inventory, functionality, and folders that relate to your eCommerce store.
Essentially, a headless eCommerce is a headless CMS that provides eCommerce capabilities.
This separation between the frontend and backend provides retailers with more flexibility in terms of where they can deliver their experiences. This headless approach utilizes API calls to push and pull content from the backend to multiple platforms including IoT devices such as Amazon Echo, Google Home, and Apple Watch, mobile apps, and web-based applications.
Why is Headless eCommerce Growing in Popularity?
The rising popularity of headless eCommerce boils down to two factors.
Firstly, when eCommerce initially came onto the scene, a large majority of traffic came from desktop browsers. As a result of this, we saw a plethora of platform solutions, which we will refer to as a traditional eCommerce platform, emerge. These solutions came with a tightly linked frontend and backend.
However, as technology began to evolve, and we were introduced to newer connected devices and applications like the iPhone and smartphone apps, we witnessed a major disruption in consumer behavior.
If we take a look at current consumer spending habits, both mobile and voice commerce sales have skyrocketed. Mobile commerce sales take in approximately $100 billion a year in the US alone, while voice commerce sales are expected to reach $40 billion in sales by 2022.
Traditional eCommerce platforms generally don’t provide eCommerce brands the capability to deliver experiences to these devices.
The second factor, and this might be the most pivotal one, is that we are now seeing more brands, who have historically used their site for the sole purpose of content distribution, are now expanding to eCommerce - in particularly in the B2B space. A study by Frost & Sullivan shared that B2B eCommerce sales will reach $6.6 billion by 2020.
The main reason for this is that we are now seeing more millennials, a generation that expects a personalized experience on handheld devices, entering the workforce. According to Google, nearly half of B2B buyers, as of 2015, are millennials.
What’s The Difference Between Headless eCommerce and Other Platforms?
The main difference between a headless eCommerce platform such as our friends at Foxy and a traditional commerce platform like Shopify is that with a headless solution, you get freeflow access to data from a variety of sources. And you also have the freedom to do what you want to do with this data.
Traditional platforms that come with a built-in frontend, which manages all your data processes and functions, generally control how you can present your content and how you access your data.
Let’s take a look at some of the main differences between a headless eCommerce platform and a traditional eCommerce platform:
With headless, developers have the freedom to develop their own custom-made frontend applications that can meet your business requirements and objectives. And thanks to the headless platform’s API driven environment, developers have more control over what should be displayed and how it should be presented.
More Room for Experimentation
Headless eCommerce can enable brands to experiment and create different experiences. Instead of having to wrestle with an inflexible architecture and disjointed tools of a traditional eCommerce platform, brands can easily implement commerce-related content to any device or touchpoint.
To give you a notable example, Amazon developed their Dash Button to allow consumers to easily reorder their laundry detergent at a click of a button.
Can Withstand Any Technological Disruption
The API-driven environment of a headless eCommerce platform can enable you to quickly adapt to the latest innovations that will arise in the IoT-era. When a new device emerges, you can simply retrieve the API, or create your own API, for that new technology and then plug it straight into the headless CMS.
Having this degree of flexibility can help you maintain a competitive advantage.
Thanks to its decoupled architecture, headless eCommerce can let you make quick changes to your frontend without affecting the backend. What this entails is that you can add new functionalities and integrations in much less time and energy. To give you an example, you can make a quick compliance update to your mobile app without having to reboot your system.
Are There Any Limitations to Using a Headless eCommerce Platform?
Even though headless eCommerce is by far more advantageous in helping you compete in the IoT-era, just like everything else, it does hold some limitations that you need to keep in mind:
Headless eCommerce Can Get Expensive: Depending on if you’re looking into a purely headless solution, you will need to hire a developer to create your frontend presentation layer from scratch, which can quickly lead to large overheads.
You Can’t Preview Your Content: This is a major blow for marketers. Not being able to preview your content before your consumer does will hinder your ability to test and get a feel of the end-user experience. (This is why we work together with headless ecommerce platforms, like Foxy, so that marketers still can maintain their workflow.)
There May Be Limited Functionality: Features such as how you want your promotions to be displayed may be limited in a headless setup. The available functionalities you have out-of-the-box will vary with different headless CMS providers, and depending on whether the platform supports third-party integrations, you might be heavily relying on a developer to create those functionalities for you.
Most of these limitations are focused on a pure headless eCommerce platform. A decoupled CMS, which is also headless, comes with a frontend presentation layer out-of-the-box. We will go into this in more detail under the “How to Choose The Best Headless CMS for eCommerce”.
Best Practices For eCommerce When Going Headless
To be successful with headless eCommerce, you have to do more than just being able to deliver experiences to multiple devices. There are certain best practices you need to follow to get the full advantages.
Go Omnichannel, Not Multi-Channel
It’s not enough to be able to deliver a multi-channel experience on a headless platform, you must strive to deliver omnichannel experiences. A study by Aspect Software showed that businesses that adopt an omnichannel strategy achieve a 91 percent year-over-year customer retention rate.
To differentiate between the two, multi-channel is when a brand delivers an experience to different channels separately. Omnichannel also involves delivering experiences to multiple channels, but instead of operating each channel separately, the different channels work together to provide a holistic and seamless experience.
In other words, an omnichannel customer experience involves delivering a continuous and consistent experience across a range of channels.
For instance, if a customer visits a store’s site on a mobile app to add a few items to their basket, they can finish making the purchase on their laptop. To expand this example even further, let us say if the customer wants to query the product before making their purchase, they can contact customer support who has the customer’s basket items visible on their screen.
The fundamental feature of omnichannel delivery is to prevent the customer from having to repeat themselves, after all, a study by Accenture highlighted that 89 percent of customers get frustrated for having to repeat their issues to multiple representatives.
Provide Seamless Payment Options
In 2016, nearly 70 percent of online shopping carts were abandoned before the purchase was made. And the main reason for this high abandoned cart rate? The checkout process was too long winded.
No matter what channel you are using to process your customer’s payment, the quicker and more painless it is, the better. Payment procedures that require multiple steps (or multiple checkout pages) will not bode well with impatient customers, especially during peak periods like Black Friday or the holiday sales.
To improve your conversion rate, we highly advise that you opt for a single page checkout. eCommerce giants like Amazon store their consumer details, in a secure manner, to reduce the amount of time it takes to complete an order.
Keep Track of Your Inventory
In addition to providing an omnichannel customer experience, it is critical that you have real-time visibility of your eCommerce operations, especially when it comes to inventory management during peak seasons.
Inventories require constant monitoring and need to be replenished with new products or goods to coincide with demand. You also need to coordinate delivery schedules for stock items that are running low but are in high demand.
Leverage Data to Offer Personalized Recommendations
Another aspect to the successful delivery of omnichannel customer experience is to deliver a personalized experience. A study by Marketing Insider Groups has observed that 78 percent of consumers say that personal and contextually relevant content increased their intentions to make a purchase.
Personalization is not possible without having access to relevant consumer data and being able to utilize this data to its full effect. IoT devices provide eCommerce brands a wealth of in-depth consumer data. And by using tools with a personalization engine and integrating them into your headless platform, you will be able to deliver personalized content directly to your consumer.
You can take personalization a step further by utilizing machine learning and artificial intelligence tools to continuously learn about your consumers on an individual basis so you can deliver unique experiences.
How to Choose the Best Headless CMS for eCommerce
As previously mentioned, a headless eCommerce is essentially a headless CMS with eCommerce integrated into the platform. Now there are a multitude of headless CMS solutions that can provide eCommerce capabilities, but in order to choose the right one is that is suitable for your business, we recommend you pick a decoupled CMS.
When looking for a decoupled CMS solution, make sure it has the following features:
Whether you want to launch a landing page or microsite to coincide with your main online store, you need a solution that allows marketers to create these campaigns quickly and easily, and with little or no technical support. This gives marketers more control over the platform and they will experience less friction with the IT team.
Works with Any MarTech Tool
Regardless of what technology you use, your decoupled CMS must work and integrate with any martech tool and its data. Having this feature will enable marketers to have all their favorite tools including marketing automation, CRM, and analytics, in one place.
Provide Seamless Collaboration
In addition to integrating with tools, your decoupled CMS will become the central hub for eCommerce activities. That means all of your team members will be accessing the platform. The ideal solution should come with a collaboration feature where your team can create workflows, set up an audit trail, and set user permissions.
There’s no point having an eCommerce site that can’t be found on search engines. Having a platform that can automate your SEO without having to install a load of plugins will give you more time to optimize experiences on your online store across a range of channels.
Why Zesty.io is a Leading Headless CMS for eCommerce?
Zesty.io is a decoupled CMS solution that is designed and built for marketers. Zesty.io’s headless offering enables users to send content to multiple websites, VR/AR, IoT devices, and other services without heavy IT involvement. We integrate with virtually every headless e-commerce engine, so you can grow into a flexible solution that is agile enough to adapt to business needs as they evolve.
One of our clients, Sony, used the platform to deploy their new website, for their new range of Alpha cameras, 2.25x faster than originally anticipated. Other clients such as Rocket League, Hofbrauhaus, and PetDesk have also seen similar results.
For more information on how Zesty.io can supersede your eCommerce brand above your competition, get in touch with us today.