HEADLESS ECOMMERCE TRENDS WITH AN OVERVIEW OF HEADLESS COMMERCE SOLUTION COMPETITORS

HEADLESS ECOMMERCE TRENDS WITH AN OVERVIEW OF HEADLESS COMMERCE SOLUTION COMPETITORS

Headless commerce trends include the shift toward microservices, expanding sales service experiences, and the utilization of hybrid CMS systems. Each is detailed below along with an overview of headless commerce solution competitors outlined in a recent TechCrunch article.

Market Trends

  • The shift away from monolithic, legacy platforms facilitates the adoption of microservices. These are small, self-contained applications that are normally API-driven and developed independently of other services and applications. Microservices make omnichannel marketing and sales more practical to execute. This is primarily due to the fact that the external development of tools allows the organization’s IT team to focus less on forcing innovation internally.
  • A second trend brought about by headless commerce and picking up steam is the enabling of sale experiences in more situations and locations than simply web and mobile storefronts. Nowhere is this more evident than the expansion of commerce to the Internet of Things and voice-enabled assistants. The trend is being embraced both in B2C and B2B use cases.
  • The Senior Analyst of Forrester, Mark Grannan, identified a point of caution and an emerging trend. He stated that most people would expect headless commerce would lead to less developer interaction. However, the reality is that hybrid CMS systems (WordPress, Drupal, and the like) are more important in the future because pure-play headless systems come up short in execution whereas a hybrid CMS offers a complete solution in providing the best user experience.

Breakdown of Headless Commerce Competitors

The following headless commerce competitors as mentioned in this TechCrunch article have been broken down below to provide an overview of their organization.

1. Shopify

Shopify EmployeesSource

  • The company claims to power over 1,000,000 businesses worldwide. As of 2018, Shopify had 5,300 enterprise accounts which include customers such as Unilever, Kylie Cosmetics, Allbirds, and MVMT.
  • Shopify utilizes a tiered pricing model starting at $29/month for a basic store and progressing to the advanced store tier at $299/month. Purchasing higher levels of stores allows for the business to pay less in payment processing fees and providers larger shipping rate discounts. Also offered is a stripped-back light version for $9/month and Shopify Plus, an enterprise-level plan for high-volume transactions.
  • The company’s core business model for generating revenue is subscription-based. Additional merchant services (financing, shipping, and POS) are offered to supplement the main feature set.

Shopify Business ModelSource

2. BigCommerce

The company employs 690 people. It currently has over $25 billion in merchant sales and is serving over 120 different countries.

HEADLESS ECOMMERCE TRENDS WITH AN OVERVIEW OF HEADLESS COMMERCE SOLUTION COMPETITORS
  • There are currently 152,387 websites running live versions of BigCommerce. The United States hosts the largest number of implementations, followed by Australia and the United Kingdom. One paid report states that there are 2,028 companies currently utilizing BigCommerce with over 26,000 contacts available in their database. Key customers include Skullcandy, Cordova Outdoors, and Toolsaver.
  • The company is not as up-front about pricing as Shopify and pushes potential customers toward submitting contact information in exchange for a quote. However, third-party resources reveal that BigCommerce does offer a tiered pricing structure. Plans start at the basic level for $29.95/month and progressively move toward pro version at $249.95/month. Enterprise pricing is bespoke and based on each business’s needs.
HEADLESS ECOMMERCE TRENDS WITH AN OVERVIEW OF HEADLESS COMMERCE SOLUTION COMPETITORS

3. Ecwid

HEADLESS ECOMMERCE TRENDS WITH AN OVERVIEW OF HEADLESS COMMERCE SOLUTION COMPETITORS

4. Strapi

  • The company is private and currently employs 13 full-time employees with one remote worker in San Francisco.
  • Delivery Hero is a key customer of Strapi. The organization doesn’t appear to have made known the number of customers/users of the technology.
  • Strapi provides a tiered-pricing structure starting for a “forever free” tier, progressing to a Silver-tier that is $299/month, and finally the Gold tier that requires contacting the company for a quote.
  • Strapi aims to serve businesses of all sizes, from freelancers to enterprise. The main project is 100% open source and as such Strapi offers SaaS hosting and enterprise features for customers as part of its business models.
  • Seven investors, including Index Ventures, have funded Strapi with $14 million over three funding rounds.
  • Strapi is headquartered in Paris, France, and has an office in San Francisco.
  • Freshcells, Simform, and AE Studio are all key partners of Strapi.

5. Shogun

HEADLESS ECOMMERCE TRENDS WITH AN OVERVIEW OF HEADLESS COMMERCE SOLUTION COMPETITORS

6. Commerce Layer

  • Commerce Layer is a private company employing between one and ten people.
  • Key customers include Uashmama, Damiani, Richard Ginori, Chilly’s, and Au Depart.
  • The pricing model utilized includes a free developer account and then a fixed price based upon the business’s needs. The following image is a draft of a pricing model that was published in November 2020.
HEADLESS ECOMMERCE TRENDS WITH AN OVERVIEW OF HEADLESS COMMERCE SOLUTION COMPETITORS
  • The business model features a large focus on enterprise-level business with large volumes of transactions. Despite this focus, startups can still utilize the service and grow.
  • The company has been through one round of funding for a total of $6 million raised.
  • Commerce Layer is located in Italy. An office is located in Wilmington, DE.
  • Research across Commerce Layer’s official website and blog, Crunchbase’s news section, Commerce Layer’s official social media feeds, and press releases reveal no current partnerships.

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