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What Is Modular Commerce?

A lot of retailers that are growing and focusing on e-commerce utilize a custom commerce platform, with some support via a conventional Content Management System (CMS) such as WordPress. They are however shifting to a modular design to make it easier to create and publish content on multiple channels (i.e. omnichannel).

Modular commerce is a way to build modules that are integrated into the backend system of a platform to distribute content through different channels. They are responsible for different aspects of the buyer’s journey, ensuring an unmatched customer experience. While traditional platforms need developers to create modifications to the platform in order for marketers to create new kinds of information, platforms that are modular allow marketers greater control over content.

Contrary to traditional platforms for commerce that is built on modularity, a modular platform allows businesses to completely customize their platforms using the most effective tools available. Because each building block functions independently, developers are able to implement small-scale updates and modifications to enhance the backend system without needing a major release or a platform change.

The way Modular Commerce Works

A modular architecture on the core of a platform is made up of modules for commerce which together create a commerce tech stack. Modules for commerce are databases, software, or bits of code which handle administrative tasks that support the sales process of a product.

Modular commerce architecture are:

A/B testing
Management of information about products
Personalization engines
Management of orders
Payment processing
Offers engines
SEO tools

Each module is independent, however they can transmit data to other modules and to the storefront using Application Programming Interfaces (APIs). When the commerce modules are combined to a content management system that is headless (CMS) marketers can utilize the full power offered by the Commerce stack in a simple manner without the assistance of developers.

The CMS simply collects information from the modules and then feeds it into personalised content using APIs. For instance, a retailer can use analytics on traffic to offer personalized recommendations for customers through various channels based upon items they’ve recently viewed and provide discounts to encourage customers to purchase.

This allows developers to concentrate on the functioning and operation of the engine, while marketers are able to work independently on the creation of content, promotion design, and experimentation.

Modular commerce and the omnichannel

Through the commerce stack, which feeds details into touchpoints in frontend retailers can develop customized content that can be delivered to different channels, regardless of the operating system. This includes iOS or Android devices Wearable technology, wearable devices, and home devices that are connected.

Furthermore modular commerce also has these advantages:

The creation of a platform with specific modules can help businesses improve their agility.
Developers can choose and update functions that make most sensible in the specific channels that they run.
Modules can be scalable and allow developers to add modules as businesses grow or expands its reach into other channels.
Retailers can react quickly to changes in behavior of customers.

A good example of Modular Commerce

Avis Budget Group which is a global supplier of rental car services, has adopted a modular business design for its brands that operate in around 175 countries and over 10,000 locations for rental.

After several acquisitions following several acquisitions, Avis has been acquired by several companies. Avis group comprises three brands: Budget, Zipcar, and Payless brands, each of which targets different segments of the consumer market. The modular model enabled the company to introduce new features using modules already in place and to migrate to a brand new system for managing content without any disruption to the customer experience.

With a centralized commerce stack that is centralized, using a centralized commerce stack, Avis group’s platform lets it customize its content and design according to the requirements of its specific market, brands and channels. The company has launched new websites that differentiate between brands and include interactive elements that can enhance the car reservation process.