Key Concepts and Strategies

Ecommerce platforms should be tailored to fit your business’s architecture. Learn how Shopify lets you choose the best approach for your needs—whether that’s full stack, headless, or modular.

As an enterprise retailer, selecting the right eCommerce architecture for your online store is one of the most strategic decisions you can make. Early eCommerce websites—and many still today—were built using a monolithic approach. This method involved breaking down the technology into “layers” that worked together to create the entire buying experience. Understanding these layers is crucial for grasping how modern architectures function.

The Presentation Layer

The top layer in eCommerce architecture is the presentation layer, where customers directly interact with your store. Everything from images to fonts to buttons is delivered by the technology in the presentation layer—primarily HTML, CSS, and JavaScript.

The Business Logic, Application, or Service Layer

The next layer is the business logic layer, also known as the application layer or the service layer. This layer encompasses the core functions of the online store, such as inventory management, promotions, checkout, and pricing.

The Data Layer

The final layer in an eCommerce architecture is the data layer. Customers do not interact with this layer directly; it is where information is stored and retrieved, typically in relational databases. For instance, every purchase made by our customers, along with their names, addresses, and other important buying information, is stored in the data layer. This data is retrieved by the other layers when customers log in to make another purchase.

As customer expectations evolve and the desire to shop across multiple channels grows, companies are rapidly innovating their eCommerce architecture. Modern technologies enable businesses to reorganize the monolithic layers using APIs and other tools to create more efficient, faster, and modern buying experiences. A recent IDC report found that 67% of companies are modifying or planning to modify their commerce architecture to prepare for the future (Shopify, 2024).

Exploring Ecommerce Architectures: Benefits and Drawbacks

In this article, we’ll explore four types of eCommerce architectures, highlighting their advantages and disadvantages. We’ll also discuss how to choose the right platform for your eCommerce needs.

Types of Ecommerce Architecture

Monolithic System: Most all-in-one eCommerce solutions are monolithic, meaning all layers are tightly integrated. This approach suits businesses with basic needs and low technical overhead.

Headless Solution: In a headless architecture, the data layer is separated from the presentation and business logic layers. Data is accessed via APIs, offering flexibility and faster development since changes in the front end don’t affect the back end and vice versa.

Modular System: This approach arranges specific functions and features into reusable modules. Developers can easily add, upgrade, or replace capabilities by integrating new modules, speeding up time to market and allowing for flexible use of services from different vendors.

Microservices Approach: The most flexible architecture, microservices, involves separating layers into independent components. This approach offers granular control over services, allowing targeted scaling without impacting other functionalities. It’s best for large retailers with skilled technical teams focused on rapid innovation.

Comparing Monolithic and Microservices Architectures

Monolithic Architecture:

Pros:

• Faster Time to Market: Integrated systems enable quick setup. For instance, Heinz used Shopify to launch an online store in seven days during COVID-19.

• Lower Technical Requirements: Preconfigured and integrated functions simplify monitoring, debugging, and maintenance.

• Cost Effective: Eliminates the need for extensive development expertise, reducing the cost of hiring technical resources.

Cons:

• Lack of Flexibility: Changes in one part can impact the entire system, limiting customization options.

• Scaling Challenges: Scaling individual components is difficult, often requiring the entire system to scale.

• Development Bottlenecks: Common codebase can slow down innovation and deployment times.
  
  

Microservices Architecture:

Pros:

• Competitive Agility: Allows rapid adaptation to market demands by quickly building and launching new features without affecting the entire system.

• Individual Scalability: Components can be scaled independently, such as scaling a product catalog without affecting the database.

• Developer Autonomy: Teams can work independently, using the best tools for their tasks, speeding up development.

Cons:

• High Initial Investment: Significant time and cost are required to implement or migrate to a microservices architecture.

• Complex Maintenance: Monitoring and troubleshooting a distributed system requires considerable effort.

• Technical Resource Challenges: Finding and retaining the right technical talent to support a dynamic system can be difficult.

Choosing the right eCommerce architecture depends on your business goals, technical resources, and need for flexibility or rapid innovation. Each approach offers unique benefits and challenges, making it essential to assess your specific requirements before deciding.

Composable and Headless Ecommerce Architecture

Headless architecture and composable systems offer more flexibility than a monolithic system without the extreme complexity of microservices. Headless architecture separates the back end from the front end, enabling communication between the two through APIs. This allows you to build your front end with composable or modular components.

Why Use a Composable Architecture for Ecommerce?

When a business wants to integrate eCommerce functions from different providers but doesn’t want to take on the complexity and cost of a fully custom build, composable architecture can be a good fit. Composable systems let developers use prebuilt components from different vendors without having to build them from scratch. Often, they can mix and match for faster development and greater agility.

Composable Architecture

Pros:

• Ease of Integration: Composable architecture allows developers to quickly choose and integrate best-of-breed components. This enables online retailers to swiftly add and upgrade functionality to enhance the buying experience.

• Flexibility and Agility: Markets and customer preferences change quickly. Composable architecture provides developers with building blocks they can select and deploy independently of the back-end systems.

• Efficient Scalability: Since the various components are decoupled, they can be scaled individually, making resource usage more efficient.

Cons:

• Increased Complexity at Scale: As the architecture grows, managing diverse components from different vendors can become challenging. This can lead to higher development costs and more technical time spent on overhead management.
• Dependency on Vendors: Relying on specific vendors for critical functions can result in vendor lock-in, leading to increasing costs over time. Your entire store could be affected if a provider’s services become unavailable.
• Integration Management: Ensuring seamless integration across different components can be challenging. Not all components will necessarily work well together, potentially impacting system performance.

Why Use a Headless Architecture for Ecommerce?

Today’s online shoppers expect personalized experiences, opportunities to buy across channels, and media-rich product catalogs. Adapting to these expectations can directly boost revenue. A study by Epsilon found that consumers are 80% more likely to make a purchase when brands offer a personalized experience. Many brands adopt headless architecture to deliver immersive, omnichannel customer experiences.

Headless eCommerce

Pros:

• Seamless Connectivity: Headless architecture, especially on platforms like Shopify, allows for systems that seamlessly integrate with third parties. This enables faster deployment of new features and functions.

• Omnichannel Capabilities: Headless architecture allows for customized buying experiences tailored for different channels, such as email, social media, and mobile apps.

• Rapid Innovation: By separating the front end from the back end, technical teams can work independently, resulting in faster development times. New capabilities can be launched quickly, fostering rapid innovation.

Cons:

• Increased Complexity: Migrating from a monolithic or full-platform architecture to headless commerce increases overall complexity. Ensuring consistency and synchronization between the front and back ends requires more effort.

• Skilled Technical Resources: Managing a headless architecture requires specialized technical skills. More time must be spent ensuring synchronized operations as eCommerce functions become more dispersed.

• API Dependency: Headless architectures rely on APIs for communication between the front and back end. Any issues with API performance and stability can impact your business.

• Increased Overhead: Launching multiple front ends across channels with a headless architecture requires more development time and ongoing support from your teams.

Choosing the right eCommerce architecture depends on your business goals, technical resources, and need for flexibility or rapid innovation. Each approach offers unique benefits and challenges, making it essential to assess your specific requirements before deciding.

What is the Best Architecture for eCommerce?

Every retailer has unique needs, and their technical requirements will evolve—sometimes rapidly. It’s crucial to thoroughly assess your current and future needs, business goals, and technical resources when choosing the right eCommerce architecture. These factors are essential in selecting the most suitable eCommerce technology for your enterprise.

Choosing the right platform provider is critical, regardless of your chosen eCommerce tech stack. Avoid platforms that force you into an unsuitable architecture, lock you into long-term contracts, or require expensive, specialized developers.

The ideal platform provider will flexibly support the eCommerce architecture that best suits your needs. Platforms like Shopify offer the ability to transition between different architectures without requiring migration. For example, fashion retailer AJE completely revamped their online store, enhanced their mobile buying experience, and increased functionality, all while staying with Shopify.

Shopify allows you to choose the option that works best for your business: full-platform, headless, or composable commerce. Shopify also ensures access to popular components like Shop Pay (an accelerated checkout) across all architectures. Retailers on Shopify benefit from the highest converting checkout on the web.

How to Evaluate Your Current eCommerce Architecture

Reviewing your current eCommerce architecture helps determine if changes are needed for your business. Start by considering your current and future business needs and how customer expectations and behaviors might evolve. Evaluate the scalability, flexibility, and speed of your current architecture to see if it will meet your future requirements.

Even if your current architecture is performing well, your platform provider might not be. Here are some questions to ask when evaluating your eCommerce platform:

• Does the platform decrease your total cost of ownership, both top line and bottom line?

• Will the platform increase or decrease your overall flexibility, agility, and time to market?

• Does the platform lock you into a specific architecture or long-term contract with the vendor?

• Does the platform support an infrastructure designed for innovation?

• How much optionality does the platform offer? Is it enough for your needs?

• Can the platform scale to meet your business needs?

• Does the platform invest in research and development?

• Is the platform recognized in Gartner’s Magic Quadrant™?

• How well does the platform support your industry or sector?

• How many out-of-the-box capabilities do you need?

• How does the platform integrate with other systems you are using?
  
  

Selecting the right eCommerce architecture is a strategic decision that impacts your ability to meet evolving business goals and customer expectations. Whether you choose a monolithic, headless, modular, or microservices approach, understanding your current and future needs, technical resources, and market dynamics is crucial. Each architecture type offers unique benefits and challenges, and the choice depends on the specific requirements of your enterprise.

A flexible platform provider like Shopify can be instrumental in this process, offering the ability to transition between different architectures without the need for complex migrations. This flexibility ensures that your eCommerce system can grow and adapt with your business, supporting various functionalities and enabling rapid innovation.

Ultimately, the best eCommerce architecture for your business is one that aligns with your strategic objectives, offers scalability, and enhances your ability to deliver personalized, omnichannel customer experiences. By carefully evaluating your current architecture and considering future requirements, you can make an informed decision that supports sustainable growth and competitive agility.

Footnotes

1. Shopify. (n.d.). How to choose a B2B eCommerce platform for your business. Retrieved April 28, 2024.
2. Shopify. (n.d.). Understanding Enterprise Ecommerce Architecture, 2024.

If you have questions or need assistance executing these strategies, our team is available at hello@tidalcommerce.ca.

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Key Concepts and Strategies

35% of companies plan to update their commerce architecture in 2024 (Snyder, 2024). As technical leaders navigate the complexities of scaling and implementing commerce platforms, understanding the critical pillars for success becomes essential. Effective planning, thorough vendor evaluation, and preparing internal teams are crucial for a smooth transition to a new digital commerce platform. Growth is generally positive news for online retailers, but if your platform isn’t prepared to scale alongside your customer base, numerous issues can arise.

• When you outgrow your current platform and provider, you might experience:

• Long load times or site crashes during high-traffic events like Black Friday and Cyber Monday

• Complaints about slow, inconsistent shopping experiences, requiring constant technical troubleshooting

• Delays in launching new products or features that could enhance the customer experience

• Increased abandoned carts indicating poor checkout performance

• The challenge of managing multiple storefronts across different websites and platforms

• Difficulty modernizing the shopping experience to include omnichannel buying, personalization, and more due to cost constraints

• Effective platform implementation requires addressing these potential issues and ensuring your commerce architecture can support sustained growth and innovation (Shopify, 2024).

Create a Comprehensive Plan

Implementing a new platform is more than a simple website migration. The larger and more diverse your eCommerce offerings, the more complex the process can become. Nevertheless, it’s possible to get implementation right the first time with thorough planning.

Create Your Timeline and Assemble Stakeholders

• The first step is building a detailed timeline. Be realistic when setting milestone dates, considering the overall time needed. Once you have a rough timeline, identify all your internal stakeholders to ensure your proposed schedule works for them.

• A new platform impacts many departments and functions, making a cross-functional implementation team essential. This team might include members from IT, engineering, customer service, sales, marketing, and supply chain.

• When working with cross-functional groups, fostering a positive team culture from the start is crucial. Gartner® recommends encouraging an open-communication culture within the team and urging members to ask questions and seek clarification promptly, ensuring everyone stays aligned throughout the project.

• Socialize the timeline with your proposed team, ensuring their availability throughout the process to avoid delays. Gather stakeholder feedback and adjust the timeline to keep it actionable and realistic.
  
  

Take a Close Look at What Your Customers Want

• One of the main reasons for moving to new platforms is to enhance the ecommerce experience for customers. However, each customer base is unique, and larger retailers may have varied customers for different products and services. Notably, 52% of online shoppers report shopping internationally, indicating a need for platforms that support diverse markets (Snyder, 2024).

• Given the significant impact of a new platform on your customers, it’s vital to analyze your current customer base and their buying behaviors. Gathering proactive feedback to understand desired improvements can be highly beneficial.

• This data helps explore new features and functionalities for your new platform, and informs the addition of new goals and objectives to your implementation plan.
  
  

Create a Comprehensive, Future-Proof List of Requirements

• Documenting your existing solution and its current configuration is critical. Avoid launching on a new platform without a critical capability you didn’t realize you relied on. Note what you like about your current platform and list must-haves for the new platform, while also addressing any limitations of your current solution.

• Consider your future needs for expansion, growth, or buyer experience innovation. For example, with mobile commerce sales expected to account for 62% of all retail sales by 2027, ensuring your new platform is mobile-friendly is crucial (Snyder, 2024). Once you have all current and future requirements mapped out, add them to your goals and implementation timeline.

Evaluate Vendors Thoroughly, with an Eye Toward Future Growth

• Once you have your requirements, plan, and timeline in hand, it’s time to shop for a vendor. If you’ve already chosen your provider, you can skip this step, but it’s wise to ensure you won’t be locked into a lengthy contract or a highly specific tech stack.
  
  

• Your platform must be the right technical solution, and the provider should support your long-term needs. Ensure their suite of solutions can handle your current requirements and future needs. Given that 34% of shoppers shop online at least once a week, scalability and reliability are critical considerations (Snyder, 2024).
  
  

• When comparing vendors, review their reliability, performance, and ecosystem. Consider the following questions:
  
  

• Beyond subscription fees, what is the total cost of ownership? Will the new platform increase or decrease your costs?
  
  

• Does the vendor lock you into a specific architecture or long contracts?
  
  

• Can the vendor scale beyond your current requirements? Are they successfully hosting larger clients?
  
  

• What is the vendor’s underlying infrastructure? How scalable and high-performing is it in key markets?
  
  

• What integrations does the platform offer? Will you need to change other systems you are using?
  
  

• What does the platform offer out of the box? Will customization be necessary?
  
  

• Will this platform accelerate your go-to-market strategy?
  
  

• It’s essential to speak with current customers, especially those in your industry. Visit customer community forums to gauge the vendor’s commitment to support. Consulting with external experts can also provide valuable insights.
  
  

Before finalizing, understand their customer support operations and service-level agreements (SLAs). Gartner® recommends testing potential platforms in a live environment: “Conduct live testing with shortlisted vendors to verify the platforms’ features and suitability with your environment. Additionally, leverage the testing period to evaluate necessary plugins upfront to avoid potential escalations in the overall cost of ownership in the future” (Shopify, 2024).

Get Your Internal Team Trained Up and Ready

• A new platform brings new ways of doing things, necessitating a comprehensive training plan for those who will use it daily.
  
  

• Without full training on new processes and technology, issues can arise. Colleagues might struggle to get up to speed, slowing order processing and negatively impacting customer experience. There’s also the risk of platform misuse, potentially leading to costly support issues and dissatisfied customers.
  
  

• Identify “in-house experts” on your implementation team. Ensure your plan includes thorough vendor training for each member. The implementation phase is ideal for training, as vendors are eager to set you up for success and provide ample resources.
  
  

• During training, establish a process for documenting what is learned. Use recordings of training calls, shared documents, or self-made screen recording videos.

Remember You Don’t Have to Launch with Every Functionality Already in Place

The larger your eCommerce business, the longer your implementation process will likely be. However, if your new platform addresses critical issues affecting your bottom line, it may be wise to go live sooner with the essential features and add less urgent functionalities iteratively. This approach not only resolves immediate problems but also provides opportunities to reengage with your customers by introducing new features over time.

For instance, 20.1% of retail purchases are expected to take place online in 2024, highlighting the growing importance of a robust ecommerce presence (Snyder, 2024). Providers like Shopify offer extensive ecosystems of resources that can help you continuously improve your storefront. Shopify stores are up to 2.4 times faster than stores on other platforms, making them the fastest in the world. This is supported by publicly available data from Google Core Web Vitals, demonstrating that speed translates directly to sales. Faster stores provide a better shopper experience, leading to higher conversion rates (Finkelstein, n.d.).

Shopify’s core infrastructure, constant investment in modernizing cloud infrastructure, and partnerships with industry leaders mean you don’t have to allocate significant resources to speed up your site. Shopify’s server speed is up to 3.9 times faster than the competition, making it the fastest in commerce. This advantage ensures your site remains fast and efficient without requiring extensive efforts on your part.

Additionally, the vendor’s ecosystem will expand over time. Regular check-ins with your vendor will ensure you stay informed about new resources and offerings. Gartner® recommends planning for global customer reach early on by leveraging multi-language functionality from the outset, which helps create a more efficient and scalable platform (Shopify, 2024).

A Proven Platform for Enterprise Ecommerce Success

If you’re outgrowing your current platform or need a new ecommerce partner to drive your business goals, Shopify is a reliable and robust choice. The platform supports more than 10% of all ecommerce in the United States and partners with numerous enterprise brands to provide everything needed for rapid scaling and innovation. In 2023, Shopify processed 40,000 checkouts per minute, totaling 5.5 billion orders from over 675 million unique customers.

Choosing Shopify means joining a community of thousands of retailers in more than 175 countries. When you’re ready for implementation, our expert support team is prepared to assist.

To learn more about Shopify, schedule a call with us today.

Footnotes

1. Finkelstein, H. (n.d.). Shopify stores are up to 2.4x faster than stores on other platforms.
   
   
2. Snyder, K. (2024). 35 e-commerce statistics of 2024. Forbes.
   
   
3. Shopify. (2024). Understanding enterprise ecommerce architecture: Key concepts and strategies. Shopify.

If you have questions or need assistance executing these strategies, our team is available at hello@tidalcommerce.ca.

AI Assistants and Cybersecurity in 2024

As a cybersecurity and AI expert, I have had a front-row seat to some of the most exciting technological advancements in recent years. In 2024, two areas stand out for their profound impact on both personal and professional spheres: AI-powered personal assistants and cybersecurity innovations.

In my daily routine, AI-powered personal assistants have become indispensable. Early in the morning, as I sip my coffee, my AI assistant reviews my schedule, prioritizes my tasks, and even suggests optimal times for breaks based on my productivity patterns. Enhanced versions of assistants like Siri and Alexa have evolved to understand and process natural language with uncanny accuracy. No longer confined to simple tasks like setting reminders or playing music, these assistants now manage complex responsibilities. For instance, mine handles my meeting schedules, conducts in-depth research for my projects, and provides reminders tailored to my work habits and deadlines. The conversational AI technology behind these assistants has become so advanced that it often feels like I’m interacting with a knowledgeable colleague rather than a piece of software.

However, as technology advances, so do the threats we face. In my role as a cybersecurity expert, I am acutely aware of the evolving landscape of cyber threats. The shift towards zero-trust security models has been one of the most significant developments. This model, which assumes that threats can come from both outside and inside the network, requires constant verification of user identities and device integrity. Implementing this model in various organizations has been challenging but incredibly rewarding, as it significantly reduces the risk of breaches.

AI-driven threat detection has also become a game-changer. I’ve seen firsthand how these systems can analyze vast amounts of data to identify potential threats in real-time. In one instance, an AI system we deployed successfully detected an unusual pattern of access requests, which led us to uncover a sophisticated phishing attack before it could cause any damage. These AI systems are not just reactive but proactive, learning from each interaction to better predict and prevent future threats.

Advanced encryption techniques are another area where I’ve witnessed significant progress. Implementing these in various projects has ensured that sensitive data remains secure, even if intercepted. This is crucial in a world where data breaches are becoming alarmingly common. For instance, in a recent project, we employed cutting-edge encryption methods to protect client information, which not only enhanced security but also built trust with our clients.

The integration of AI into cybersecurity frameworks is particularly noteworthy. AI algorithms can analyze extensive datasets to detect anomalies that might indicate a security breach. This capability is a powerful tool in our arsenal, allowing us to stay one step ahead of cyber attackers. The synergy between AI and cybersecurity ensures that as our reliance on technology grows, so does our ability to protect it.

Reflecting on these advancements, it’s clear that the technological landscape of 2024 is being shaped by AI-powered personal assistants and cybersecurity innovations. These developments have made my work more efficient and secure, and they hold immense potential for broader applications. Staying informed and adaptable in this ever-evolving digital world is crucial. Embracing these technologies not only improves productivity but also enhances our defenses against the myriad cyber threats we face today. As we look to the future, continuous improvement and integration of AI across various domains will be essential in creating a more connected and secure world.

If you have questions or need assistance executing these strategies, our team is available at hello@tidalcommerce.ca.

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