Commerce Components by Shopify: What awaits enterprise retailers

The e-commerce industry is constantly changing and progressing. As a pioneer of innovative solutions, Shopify continuously provides solutions for merchants. For example, Shopify Plus was launched in 2014 to meet the needs of ambitious businesses looking for a powerful e-commerce platform.

Almost a decade later, at the beginning of 2023, the e-commerce giant has launched another innovation aimed at supporting and promoting large international retail brands - the so-called enterprise retailers - as well.

With Shopify Commerce Components, it is now possible to access Shopify's global infrastructure thanks to its 30 modular Shopify components. As a result, enterprise retailers can offer their customers the best possible experience in all key areas, such as the shopping cart, checkout or shipping.

In this article, we'll show you exactly what Commerce Components by Shopify is all about and who the solution is suitable for.

Definition: What is Shopify Commerce Components?

The Commerce Components are described by Shopify itself as a "tech stack". Companies have the option of selecting from 30 modular components those that best meet their individual requirements. All components or only some of them can be used, depending on the business model and the respective needs. Many of the components can be seamlessly integrated with third-party systems via APIs. A headless approach with a separate storefront is also possible. The pre-built and tested code enables straightforward implementation and use of each component.

The components are divided into 6 categories:

The Commerce Components include all the functions and services that companies need to offer customers a smooth e-commerce experience. For the first time, Shopify also allows these components to be used in any combination and easily integrated into existing system landscapes.

Commerce Components vs. Shopify Plus - The Differences

Essentially, Shopify Plus is an all-in-one platform for enterprise retailers. Because of the platform's powerful functionality and ease of use, it's often the perfect solution for scaling businesses. However, it is a closed system, with the frontend and backend powered by Shopify. Companies only have the development capabilities of Shopify Plus at their disposal.

Commerce Components differs in that it is a headless tech stack. Brands thus have targeted access to the Shopify components that are relevant to them, while being able to do without others. This approach offers businesses far greater customizability and flexibility.

Key differences between Shopify Plus and Commerce Components by Shopify include:

• Businesses can create a fully custom front-end of their store with Commerce Components in a code framework of their choice on a hosting platform of their choice. This means they are no longer constrained by the Shopify Plus infrastructure, but can create a completely custom storefront.

• Since these are two completely different products, the pricing also varies. Shopify Plus has a standardized pricing model with a variable fee of 0.4%, with an additional 0.15% discount for businesses that use Shopify Payments and generate a minimum revenue of $2,000 per month. In contrast, Commerce Components has a custom pricing model. Here, costs are based on business requirements.

• There are also differences in support. Due to the complex nature of Commerce Components, more support is also required. Companies therefore get access to SLAs, Shopify Professional Services and a dedicated account team. For Shopify Plus requirements, retailers get a Success Manager and startup assistance.

• With Commerce Components, there are no API limits and 40,000 checkouts per minute can be managed. There are also a higher number of product variants through third-party partnerships. However, it should not be forgotten that Shopify Plus also has very few limitations in its features and is quite a powerful alternative.

For these merchants, the use of Commerce Components by Shopify is worthwhile

Shopify Commerce Components are designed specifically with large retailers with complex requirements in mind. These companies include retailers that are likely to generate more than $500 million in revenue per year, manage multiple brands, have large teams, and/or run large offline and online businesses.

By introducing Commerce Components, Shopify can compete with platforms that take a fully custom integration approach. However, retailers should note that headless stores can be complex and costly, making it unlikely that smaller businesses will benefit from Commerce Components in the same way as established brands.

Commerce Components examples: Who is already using the Shopify solution?

As already written at the beginning, Commerce Components by Shopify is still quite new. Therefore, the list of Commerce Components examples is not yet full. Moreover, the full list of companies that currently use Shopify Commerce Components is hidden from view.

What is already known is that brands like Mattel, JB Hifi, Steve Madden, Spanx, staples, Glossier and COTY have already chosen this approach for their commerce strategy.

Shopify Commerce Components - Cost of the new solution

The costs for this solution are not publicly available. What is clear, however, is that the prices vary depending on the company and the respective scope of use and are determined individually. Since this will be a larger cost, it is recommended that you thoroughly test Commerce Components to determine which components are truly relevant to your business and tailor pricing to your needs.

The headless solution is available now. However, to use Commerce Components, brands must contact Shopify directly.

Conclusion

Commerce Components by Shopify is an innovative evolution of Shopify's e-commerce capabilities that enables established enterprise retailers in particular to benefit from outstanding flexibility. Shopify thus gives companies complete control over their tech stack, enabling a headless approach.

As a meaningful extension of the Shopify portfolio, Commerce Components open up new growth opportunities for enterprise retailers within the Shopify environment. It is therefore highly likely that other large retailers will opt for the approach in addition to the aforementioned companies such as Mattel and Steve Madden.