What headless commerce is and why it matters

The next phase of e-commerce evolution has been underway for several years now. As companies try to keep up with omnichannel demands, they’re probably reading more and more about headless commerce and its benefits. Businesses should be aware of several aspects of this type of architecture when deciding whether headless commerce is right for them.

Let’s dive in: what exactly is a headless architecture? Essentially, this is where the frontend presentation layer is disconnected from one of the backend systems. All backend systems become “headless”, with the front-end presentation layer becoming the “head”. You can have many heads: a website, a mobile app, a watch app, a kiosk in a store.

They all use the same backend systems in the same way. Backend systems include commerce, content management, product information management, and order management, among others. The key to these backend systems being able to operate in this architecture is that they have powerful APIs (Application Programming Interfaces) that allow you to do whatever the application can do.

Pros and cons of headless commerce

There are several benefits to adopting a headless architecture. These include more flexibility, faster release of new features, seamless experience across all channels, security and scalability. An overview of these benefits and how they work:

• System changes: Some systems or platforms will improve over time, others will not. The latter will no longer be supported or reach their ‘end of life’. Some can be improved or upgraded as a business grows.
• Greater dexterity: If a new system is needed, it can be easily added via API connections and placed in the header. An example is a loyalty program that is added to an e-commerce business. Add the system once and connect it from each head if necessary.
• More robust: Separating the frontend presentation from the backend logic makes the system more robust, as changes on the front end will not affect your backend logic. Each system is robust, making the complete system more reliable.

While a headless architecture has several advantages, there are also potential challenges to address:

• Cost: By separating the frontend and backend systems, each requires its own maintenance and hosting. Having good partners or an already strong internal IT department helps reduce these costs, but it can still be higher than a single system.
• Complexity: Managing the systems independently means understanding bugs in two different systems or building security for two different systems. Every team has a learning curve in building out and implementing the separated front and back.

It can be a challenge for many companies to get their systems to realize the benefits. The benefits of headless commerce really come into their own when most of the organization’s systems (or at least the systems in one area) have become headless and decoupled. As an organization moves toward this state, it finds itself in a hybrid world where it mixes old and new and works to overcome these challenges. Companies should be fully aware that the headless transition process can be challenging and time consuming. This can leave a bad taste for those involved in the process until the whole system or a specific area is transferred and fixed.

Don’t resolve for one area; plan for digital transformation

Companies embarking on this transformation need to be aware of the process. You can’t just have a headless commerce and content system to get the real benefits of headless for the customer experience. Customer service, order management, inventory, loyalty and CRM should all be part of any transition, just to name a few. Without the entire customer experience designed this way, you slow down your own transformation and limit the customer experience.

Beware of evangelists

In this space it is very easy to find evangelists – people who are stubbornly attached to their version of the future. They often belittle other systems and are quick to write them off as “old” or “difficult to integrate.” This is very easy to do if you are in a company that describes itself as “modern”. The reality of digital transformation, systems, and architecture is that every business is on a transformation spectrum, and some are further ahead than others and have their own set of challenges. The right way to transform is different for everyone. While there are some worse systems out there, buyers should be aware that claims made by evangelists need to be fact-checked or substantiated in some way when evaluating options.

Conclusion

To answer our original question: does everyone need headless? Organizations need to weigh the above pros and cons to determine what best fits their needs. Organizations should be wary of the process that adopting this architecture requires. Separating the front-end “head” from the back-end “headless” systems improves reliability and performance and lays the foundation for rapid action in the future.

This transformation takes time: many old and outdated systems cannot function within a headless architecture, especially within ERP systems (the older they are in general, the worse they are if not redesigned). Companies need to be strategic in their investments as they decouple their systems and begin implementing headless commerce. By understanding the benefits and challenges, organizations can create a plan that recognizes the bumps in the road and allows them to navigate.

Gerry Szatvanyi is CEO of OSF digital

Rob Smith is VP of Go-To Market at OSF Digital