Composable Commerce Guide 2025 – Definition, Benefits, Examples & Trends

German e-commerce reached €88.8 billion in 2024 (up 3.8% from €85.5 billion in 2023) and is expected to rise to €92.4 billion in 2025. The sector is thus continuing to grow despite intensified competition and changing consumer sentiment.

This enormous growth testifies to great sales potential. However, we do not want to underestimate the fact that more and more retailers are making the leap into e-commerce and that opportunities are needed to stand out from this crowd with an individual shopping experience. Composable commerce is a great opportunity for this.

In this blog article, we'll tell you what the term means and why Shopify Plus and the new Commerce Components are ideally suited for the composable approach.

Definition & basics: What is Composable Commerce?

Composable commerce is a modern approach to building e-commerce platforms. Companies assemble their own systems from modular API-first components. These building blocks can be flexibly combined to create customized digital shopping experiences.

In addition to convenience, online customers particularly appreciate the enormous variety of suppliers in e-commerce. Instead of having to resort to one and the same generic product, they can choose the variant that best suits their own ideas from a wide range of articles.

However, diversity is not limited to the range of products on offer. Modern store systems have long since ceased to follow a rigid template that offers no scope for customization beyond the integrated functions. Shopify, Shopware & Co. are so popular precisely because they offer store operators a completely open economy: As a merchant, you draw from a wide range of third-party providers with whom you can set up your online store and adapt it to your customers' requirements. This very idea describes the approach of Composable Commerce very well.

Originally, Composable Commerce does not come from e-commerce, but from application development. Specifically, the application in this case is your online store. By combining different components into a functional e-commerce platform, it's possible to develop a customized solution that meets the needs of even the most demanding customers.

Composable Commerce enables e-commerce teams to select and assemble best-of-breed commerce solutions and compose them to meet their unique business needs. So by flexibly choosing from a wide range of modules, companies can define exactly how they want their front end to look and their business to function on the back end.

MACH: The foundation of Composable Commerce

In connection with Composable Commerce, the term MACH architecture is also usually mentioned, as it forms the technical basis for modular systems. For a better understanding, we would therefore also like to dedicate ourselves to this topic and explain the acronym MACH in more detail.

MACH stands for Microservices, API, Cloud and Headless. The acronym thus combines some of the most significant e-commerce buzzwords of recent years.

Microservices

Microservices are independent applications provided by different providers. These usually relate to a specific task area and are developed independently by the provider. Take the email marketing provider Klaviyo, for example. You can use this service to send your newsletters and push messages without affecting other system components. For example, whether you use services such as Pathway or WISO for your Shopify accounting doesn't matter when considering your email marketing with Klaviyo.

APIs

Managing a large number of individual microservices would be enormously time-consuming and not very economical. For this reason, it has proven successful to combine various individual solutions into an overall complex - basically, this is also the core of Composable Commerce. Today, the technical implementation is mostly done via so-called Application Programming Interfaces, APIs for short. The API enables several previously independent applications to communicate with each other.

Cloud

Cloud hosting has largely replaced on-premise solutions in e-commerce. The core advantages of the cloud lie in the flexible use of resources, a high level of fail-safety and the elimination of the maintenance effort for your server landscape. These advantages are also the reason why cloud-based SaaS solutions (= Software-as-a-Service) are the means of choice for the MACH architecture or for Composable Commerce.

Headless

PCs have long since ceased to be the dominant, or even the only, medium through which your customers make digital purchases from you. Smartphones, tablets, smart speakers and smartwatches are joining the ranks. The problem: with a monolithic template, the content of your store cannot be ideally output for every device category. That's why more and more systems are adopting the so-called headless approach, in which the frontend visible to the user is separated from the logic in the background, the backend. Via the headless CMS, the frontend can be optimized for each device type and the user experience can be significantly improved.

Packaged business capabilities vs. microservices

Packaged business capabilities and microservices are both approaches to developing and delivering software solutions that are often confused. However, there are some important differences between them:

What are the benefits and advantages of Composable Commerce?

Composable commerce offers a strategic advantage by enabling companies to build an e-commerce platform that is flexible, innovative, and tailored precisely to their specific needs.

Here is an overview of the key benefits:

1. Unique flexibility and control

Instead of using a rigid, all-in-one solution, you can choose only the tools you really need for specific functions—whether it's AI-powered search, checkout optimization, or personalization engines. This means you don't pay for unused features and have full creative control to create a customized experience that perfectly matches your brand, target audience, and market.

2. Faster innovation and adaptation to the market

You can quickly deploy new features by updating individual services instead of waiting for a complete overhaul of the platform. This agility allows you to perform rapid A/B testing and feature rollouts, continuously optimize the customer experience, and respond to market changes in real time.

3. Future-proof technology

Composable commerce frees you from dependence on a single provider, allowing you to integrate the best technologies as soon as they come onto the market. This enables you to seamlessly add innovative features such as AI, augmented reality (AR), or voice-controlled shopping without an expensive and disruptive replatforming project.

4. Efficient performance and scalability

You can deploy resources exactly where they are needed. For example, your payment processing can be scaled independently of your product catalog or search function. This API-driven, cloud-native architecture offers superior speed, reliability, and global accessibility.

5. Improved team productivity

Composable commerce enables your teams to work more effectively. Front-end designers can focus on creating exceptional user experiences, while back-end developers specialize in building the best tools. This approach empowers your teams to work simultaneously and leverage specialized solutions that maximize their expertise.

6. Seamless omnichannel experiences

By connecting all customer touchpoints—from your website and mobile app to social platforms and brick-and-mortar stores—through APIs, you can deliver a consistent brand experience no matter how or where customers interact with your business.

7. Strategic cost management

While the initial investment may be higher, long-term strategic cost management is a key advantage. You can avoid expensive, disruptive replatforming projects by evolving your platform incrementally. This pay-for-performance model ensures that your spending is directly linked to business value and actual usage.

8. Competitive differentiation

Composable commerce enables you to build a unique platform that sets you apart from the competition. Instead of using the same standard platform as everyone else, you can quickly implement advanced features such as AI-driven recommendations and real-time price optimization to deliver a next-generation customer experience and establish yourself as a market leader.

Challenges

In addition to the numerous advantages, the composable approach also results in some hurdles, which we naturally do not want to ignore at this point.

Time required for evaluation

Before you can assemble your components into a complex, you must first define your ideal tech stack. Since there are quite a few providers for the most diverse areas, you should not underestimate the time required for this and plan sufficient buffer periods for the evaluation.

Microservices management

To ensure that your composable platform is always technically up-to-date, you need to keep a close eye on microservices and, if necessary, replace one solution with another if it is no longer supported and no longer receives updates.

Employee training

The more complex you make your platform, the more time your team will need to get up to speed and learn how to use each service on a daily basis.

The best way to overcome each of these challenges is to assign employees to work on specific topics and assign responsibilities. For example, assign one person to compare and select your components, and another to train your team.

Composable Commerce in B2B retail

Advantages of Composable Commerce for B2B retailers

• Flexibility and adaptability: Composable Commerce enables B2B merchants to tailor their e-commerce solution to their specific requirements. They can select and combine individual modules and microservices to create a solution that is precisely tailored to their needs.

• Scalability: The modular structure of Composable Commerce allows B2B merchants to easily scale their e-commerce platform to keep pace with the growth of their business. New features and services can be seamlessly integrated to meet changing requirements.

• Innovation potential: Composable Commerce enables B2B merchants to respond quickly to new technologies and trends. They can introduce new features and services without having to rebuild their entire e-commerce infrastructure, making it easier to stay innovative and stand out from the competition.

Challenges of Composable Commerce for B2B retailers

• Complexity of integration: Integrating different modules and microservices into a unified e-commerce solution can be complex and often requires technical expertise. B2B merchants need to ensure that all components can interact seamlessly with each other and exchange data effectively.

• Management of microservices: Managing a variety of microservices can be challenging as they are separate systems that need to be operated and updated independently. B2B merchants need to ensure they have the right tools and processes in place to manage and maintain the microservices efficiently.

• Security and compliance: Using composable commerce can present security and compliance challenges, as different modules may have different security standards and regulations. B2B merchants need to ensure that all components of their e-commerce solution comply with applicable security and privacy regulations.

Composable Commerce with Shopify's Commerce Components

Shopify and Shopify Plus are already per se very well suited for building a composable online store thanks to the app store and the very simple connection of new systems. Often, no programming knowledge is needed to add new components. Most apps are offered with different pricing models and varying levels of functionality. We have already summarized our personal hit list of the best Shopify apps in a previous blog.

However, with the still relatively new Commerce Components, the Canadian provider has once again significantly expanded the customization options and offers an attractive model especially to large retailers who want to offer their customers an individual shopping experience. The Commerce Components are made up of 30 modular components that can be easily integrated into third-party systems via API. The components are assigned to one of the following categories:

• Storefront

• Shopping Cart & Checkout

• Core Commerce

• Data and Compliance

• Shipping & Logistics

• Omnichannel

How many and which components you choose is up to you.

Composable Commerce Example: These Latori Customers Use the Composable Approach

Lensit.no

Latori customer Lensit.no uses the Composable approach in its checkout. The Norwegian subsidiary of the well-known online retailer for eyewear, Mister Spex, sells contact lenses and accessories. Lensit uses Shopify's frontend, as well as its customer database and API interfaces, as the basis for its e-commerce presence. The checkout, on the other hand, is implemented entirely via Klarna.

We spoke with Ulrich Tietze, Head of Product Enterprise Application, about the project. You can find the complete Lensit case study in our blog.

Sennheiser

Sennheiser also decided to use the Composable principle. The well-known manufacturer of headphones and soundbars relies on headless commerce. This allows the company to use a headless front end and still benefit from the Shopify Plus advantages. With other integrated micro-services, such as Oracle JD Edwards as the ERP system, Sennheiser is a good example of Composable Commerce.

We discussed the entire project in an interview with Armin Djafari Naini and Niclas Backes, Global Platform Owner eCommerce at Sonova. You can read the whole Sennheiser Case Study on the blog.

Monolithic Commerce with Headless vs. Composable Commerce: the key differences

5 Composable Commerce Trends in 2025

As in all areas of e-commerce, there are also some go-to techniques in composable commerce that we will see more of in 2025 (and beyond).

Here is an overview:

1. AI becomes standard

Artificial intelligence is evolving from a “nice extra feature” to an essential building block of modern e-commerce platforms. Smart companies are integrating AI into their processes to draw intelligent conclusions from large amounts of data. This allows them to automate processes that exceed human capabilities:

• True personalization in real time

• Automatic inventory optimization

• AI-generated content and product descriptions

2. Pre-built solutions

The era of “building everything from scratch” in composable commerce is coming to an end. Packaged business capabilities (PBCs) democratize modular commerce by offering ready-to-use solutions that can be seamlessly integrated into your architecture. These PBCs are like predefined, functional “LEGO bricks” that cover a specific business function (e.g., product catalog, shopping cart, or checkout):

• Ready-to-use modules (PBCs)

• Optimized checkouts without development time

• AI-powered search and marketing tools

3. Experience-first architecture

The customer experience has evolved from a mere marketing buzzword to an architectural necessity. Companies are turning to composable commerce to create experiences that monolithic platforms simply cannot deliver:

• Consistent experiences across all channels

• Headless architecture as standard

• Complete front-end control

4. Market dynamics accelerate adoption

Several factors are contributing to composable commerce becoming not just an experiment, but an essential approach:

• Pay-per-use models

• Rapid adaptation to market trends

• Manufacturer independence

5. Data orchestration is crucial

The biggest challenge in composable commerce is not selecting the components, but ensuring they work together seamlessly. Solutions in 2025 will focus on:

• Single source of truth for all data

• Automated, seamless integration between services

As Germany's first Shopify Plus agency, Latori has had the privilege of helping many international companies switch to Shopify or build a functional webshop with the system. As an official Shopify Premier Partner, we have first-hand knowledge to advise you on your e-commerce strategy and build a future-proof tech stack. In a non-binding introductory meeting, we will evaluate the possibilities for your project together. Get in touch with us!

Conclusion

Due to its flexibility, composable commerce already determines what happens in e-commerce today - a (store) system is often selected on the basis of its integration options. Although evaluation, management, and training of employees in the use of individual system components are efforts that should not be underestimated, the advantages of vendor diversity and flexibility far outweigh these hurdles.

With thousands of apps, Shopify and Shopify Plus are undoubtedly among the most adaptable systems. With the Commerce Components, however, Shopify opens up completely new scope for its merchants and completes the idea of the composable architecture.