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Shopify Commerce Components

Last updated: January 4, 2023

Shopify Plus has historically been the enterprise level solution from Shopify for large ecommerce brands such as Kylie Cosmetics, Gymshark and more. Many enterprise level brands are most comfortable owning their own solutions rather than relying on a SAAS platform that manages everything from hosting to security. Shopify released Shopify Hydrogen, an opinionated react framework, to be used for a headless approach for building an ecommerce store with Shopify. Commerce Components is a step towards allowing enterprise brands the best of both worlds; complete control over their existing tech stack yet still with the unrivalled power of Shopify and a powerful headless approach. Let's dive into what Shopify Commerce Components is and who they are for.
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What are Shopify Commerce Components?

Shopify Commerce Components is modular components tech stack that enterprise-level businesses can use or integrate with your existing third-party ecommerce stores. The tech stack includes pre-written and tested code that can be used in a custom headless storefront & hosting provider - you do not need to use Shopify to power the front end of the store at all. The core components include features from all key areas of customer experiences including cart, checkout, data & shipping. Enterprise retailers can now integrate components that connect with Shopify seamlessly and access Shopify's global infrastructure.

What components are included with Shopify Commerce Components?

Shopify Commerce Components offers more than 30 pre-built and device tested features that can be integrated into a new or existing headless ecommerce store. These features are built to offer the power of Shopify in a headless setup allowing enterprise retailers to remain in control of their tech stack.

Shopify Commerce Components can be grouped into 6 key areas which we will dive into more detail below.

Storefront
Enterprise retailers can build their own entirely custom storefronts using a development framework and hosting provider of their choice. The storefront can then connect to Shopify's infrastructure using Shopify's Headless APIs or SDK. Shopify offers its own opinionated react framework called Hydrogen which can be used to build the headless front end of the store - additionally, brands can host Hydrogen stores on Shopify's hosting solution called Oxygen with 99.99% network uptime. Finally, Shopify can offer an AI-driven search model. Finally, brands can still use Shopify's own hosted frontend solution with page builder functionality written in liquid and using online store 2.0.

Cart & Checkout
Commerce components include the ability to build a cart that leverages Shopify's API and cart app extensions, whilst also leveraging Shopify's seamless checkout. Retailers can still leverage their payment providers or leverage Shopify Payments / Payment partners. Other components and features include a tax platform and fraud protection.

Core Commerce
The fundamentals of a functioning ecommerce store are of course included with Shopify's Commerce Components including the ability to sync a product catalogue, custom data, cross-border selling, subscriptions, customer data management, discounts, custom backend functionality and B2B.

Data Compliance
Shopify prides it's offering inaccurate customer data offering data analysis, marketing insights, card data processing and security & compliance. Shopify allows a brand to manage privacy and security with granular permissions, security controls, and SOC 2 compliance.

Shipping & Logistics
Commerce Components allows retailers to offer end-to-end logistics including inventory tracking tools, inbounding, order management, returns and a Shipping Label API. Shopify also allows retailers to use their tech if they prefer as they'll own the custom software of their company.

Omnichannel
Lastly Shopify has always referred to itself as a businesses backend dashboard and commerce components is no difference. Brands can manage other selling channels such as POS, social commerce and chat/support selling.

Summary Shopify Commerce Components offers solutions to all of the key areas that a brand will need to run an enterprise-level business. The most important consideration is that commerce components is what is says in the name - components and brands can choose how to build their custom tech stack to meet the needs of their business.

Learn more about the specific components included within Shopify Commerce Components.

Who is Commerce Components for?

Shopify Commerce Components is a tech stack of pre-tested code built for enterprise-level retailers with complex requirements. Shopify's component infrastructure is not for everyone but instead for high-performing large-scale businesses with large teams that typically generate from $500 million to multiple billions of dollars in gross merchandize value. Shopify has historically been seen as creating ecommerce solutions for smaller brands however that is simply not the case with a fast-growing enterprise merchant-base on Shopify Plus but also now with headless infrastructure. Commerce components allow Shopify to compete against platforms that offer an entirely custom integration approach and offer unrivalled innovation capabilities. Headless stores are not for smaller brands or brands that will work well on Shopify's other solutions - headless can present complex challenges and requires significant investment.

How do I upgrade to Shopify Commerce Components?

Shopify Commerce Components is not an upgrade option but instead a tech stack of code that can be used as an ecommerce foundation to builing a headless ecommerce store. Although it can be used to construct entirely new ecommerce stores, it can also be added to existing ecommerce builds to replace legacy technology. Shopify Commerce is not a plan or service but instead a collection of technology that can be integrated into existing or new headless stores.

When is Shopify Commerce Components available?

Shopify Commerce Components is available now, however, brands will need to speak directly with Shopify's dedicated sales team to discuss the solution. The components are already being used by large enterprise brands globally which are likely to continue to grow as more brands adopt Commerce components into their stores.

Who is using Shopify Commerce Components?

Whilst it is unclear the complete list of brands that are utilising Shopify's Commerce Components that have published that Mattel, JB Hifi, Glossier, Coty, Steve Madden, Spanx and Staples are all using this approach.

It is likely to increase as more brands choose Shopify to define their legacy tech stacks and replace their stores with a Shopify powered solution.

How much does Shopify Commerce Components cost?

Shopify has not publicly released the pricing, money or plans for Shopify Commerce Components.

What's the difference between Shopify Plus & Commerce Components?

Unless a custom headless approach has been developed, Shopify Plus is typically a closed system whereby the frontend and back-office management of ecommerce stores are powered by Shopify. Brands have to build stores to the limits of the platform and the developmental capabilities. Whilst Shopify Plus's capabilities have been advanced, it does not offer the true customizability that a headless tech stack has to offer.

The key differences between Shopify Plus and Commerce Components are:

Custom tech stack
The brand can build an entirely custom front end of their store with commerce comments in a code framework of their choice on a hosting platform of their choice. This means that they are no longer limited by the restraints of the Shopify Plus monolithic infrastructure and are free to build an entirely custom storefront experience.

Support
Shopify Plus customers receive support from a Shopify success manager and priority support team however with commerce components brands will be offered Shopify's Professional Services, SLAs and a dedicated account team. Shopify also has partnered with consultancy firms & system integrators including Deloitte & KPMG.

Bandwidth & Limits
Commerce components offer unthrottled API rate limits, 40,000 checkouts per min/store, fast speed, and increased product variant limits. However, it is important to note that Shopify Plus offers few limits.

Pricing
Commerce Components has a bespoke pricing plan depending on the retailer's requirements. Shopify Plus has a standard pricing model of a 0.4% variable fee, with a 0.15% discount when using Shopify Payments and a minimum of $2,000/month.

Summary for Shopify Commerce Components

So there we have it, a complete guide to Shopify's enterprise level solution & presence for headless brands looking to leverage the engineering power, flexibility and foundations of Shopify with Shopify Commerce Components. Although more largescale businesses have moved to Shopify Plus we expect more the leverage the customisability and power that a headless Shopify store with Commerce Components has to offer. Commerce components offers the commerce foundations to a headless store for enterprise opportunities and more platform partners will continue to adopt the technology with time.

Harley Finkelstein released Commerce Components and said "Shopify is stepping into its next phase of innovation: enterprise retail". Shopify Commerce Components offers brands a solution for complex requirements of scale and the ability to still own their systems and leverage the power of Shopify. It is very important to note this solution is not for most ecommerce brands and only for high performing enterprise businesses.



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