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How Modular Commerce Works

A lot of retailers that are growing and focusing on e-commerce use a custom-built commerce platform that is supported by a more traditional CMS (CMS) similar to WordPress. They are however transitioning to a modular structure that allows them to easily create and publish content on multiple channels (i.e. omnichannel).

Modular commerce is a way to build modules that are integrated into the middle of an 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 call for developers to implement adjustments to the platform that allow marketers to create new kinds of material, the modular platform allow marketers greater control over the content component.

In contrast to a traditional platform for commerce one that is modular lets businesses completely customize their platforms using the top tools available. Since each building block functions independently, developers can make small-scale updates and modifications to enhance the backend system without the need for a massive update or platform migration.

The way Modular Commerce Works

A modular architecture on the middle of a platform is made up of modules for commerce that together make up a stack of commerce technology. The modules for Commerce are applications databases, programs, or parts of code that perform administrative functions that drive the sales process of a product.

A few modules of a 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 functions independently, but can share data with other modules as well as the storefront using Application Programming Interfaces (APIs). When the commerce modules are combined to a content management system that is headless (CMS) marketers are able to utilize the full power that the stack of commerce offers in a straightforward manner without the assistance of developers.

The CMS simply collects information from modules and transforms it into custom content via APIs. For example, a store might use traffic analytics to offer personalized recommendations for customers across different channels based on the products they’ve seen recently and provide discounts to encourage customers to buy more.

This lets developers focus on the functioning of their commerce engines, while marketers work on their own the creation of content, promotion design, and experimentation.

Modular commerce and Omnichannel

Through the commerce stack, which feeds information into the frontend’s touchpoints retailers can develop customized content to be distributed to different channels, regardless of the operating system. This includes iOS as well as Android devices as well as wearable technology and even connected home devices.

Furthermore modular commerce also has these advantages:

A platform that has specific modules can help businesses improve their agility.
Developers can choose and update features that make most appropriate to the channel they run.
Modules can be scalable and allow developers to add modules as their business grows or expands its reach into other channels.
Retailers are able to quickly respond to changes in behavior of customers.

A good example of Modular Commerce

Avis Budget Group is a global supplier of rental car services, has embraced a modular commerce design for its brands that are present in more than 175 countries and over 10,000 locations for rental.

Through acquisitions that have been completed, Avis has been acquired by several companies. Avis group now includes its Budget, Zipcar, and Payless brands, each of which targets distinct segments of the market. The modular model allowed the company to incorporate new features using modules already in place and then move to a new system of managing content with no any disruption to the customer experience.

With a centralized commerce stack that is centralized, Avis Group’s platform is centralized in its commerce stack. Avis group’s platform lets it tailor design and content to meet the specific needs of its own market, brands and channels. The company has launched new websites that differentiate from other brands, and also incorporate interactive elements that can enhance the car reservation process.