Adobe Commerce continues investment in composable development tools and AI-powered personalization
Global retail ecommerce sales are forecasted to reach $6.3 trillion in 2024, but maintaining growth is a key challenge for retailers as consumers return to traditional shopping patterns. Adobe Commerce released new capabilities that deliver faster and more personalized commerce experiences for consumers and business buyers, including simplified composable development tools and AI-powered personalization.
Learn how these new features and others can assist you in becoming experience-led in 2024.
Simplified composable development
Adobe Commerce is a composable ecommerce platform designed to launch ecommerce features faster, easily share data between third-party systems, and lower the cost of ownership for integrations and customizations.
Introduced in January 2023, Adobe Developer App Builder transformed how companies implement Adobe Commerce. App Builder for Adobe Commerce delivers core capabilities across the entire development stack including headless commerce using API Mesh, event-based data routing between Adobe Commerce and external systems using Events, extension (rather than customization) of Adobe Commerce using Webhooks, and extension of Adobe Commerce admin via Admin UI SDK. All these capabilities are delivered in a serverless computing environment so developers can easily build apps and integrations while Adobe handles provisioning, scaling, and security of the App Builder infrastructure.
With our latest release we continue to lead the way in simplifying composable development for ecommerce businesses. Webhooks can now be configured through the UI with the ability to configure headers and endpoints to integrate third-party services into Adobe Commerce processes. Webhooks can also now be triggered conditionally. For example, you can extend the checkout process with a webhook only for specific zip codes. Also, developers now have more control over the Admin UI, including adding additional columns to existing admin screens.
Later this year we will increase the availability of API Mesh to over 200 global locations reducing network latency, improving compute time, and providing a better overall experience for shoppers.
Pre-built ERP integrations to Microsoft Dynamics 365 Finance and SAP S/4HANA
Integrating an ecommerce platform with your enterprise resource planning (ERP), order management system (OMS), or customer relationship management (CRM) is a mission critical requirement. Companies can spend tens of thousands of dollars building these integrations. To reduce the cost of integrating with ERP solutions and to improve reliability of real-time connections Adobe is introducing an integration starter kit for back-office integrations using Adobe Developer App Builder. The kit includes reference integrations for commonly used commerce data like orders, products, and customers. It also includes onboarding scripts and a standardized architecture for developers to build while following best practices. The starter kit is expected to reduce integration effort by up to 50%.
Adobe Commerce has now been integrated with most ERP and CRM solutions in the market. Later this year, we will be releasing pre-built integrations to two common ERPs, Microsoft Dynamics 365 Finance and SAP S/4HANA using the integration starter kit. These integrations focus on synchronizing five commonly used objects including Product, Customer, Stock, Order, and Shipment. These reference integrations can easily be customized by developers to meet the needs of the business, lowering the time to market and the cost of integrations.
Composable development enables new subscription service
Adobe’s simplified composable development is also making it easier for companies to grow revenue with new business models, like subscription services. According to financial services firm UBS, the subscription economy is on track to reach $1.5 trillion by 2025, up from $650 billion in 2021, with both consumers and business buyers appreciating the model’s convenience and value.
Adobe has partnered with industry-leader Zuora to empower companies to add subscription revenue streams to their business and support existing recurring revenue business models with the Zuora Subscription Management for Adobe Commerce extension.
Built on Adobe’s App Builder framework by IBM iX, the Zuora extension received Adobe Commerce App Assurance Program recognition for following simplified composable development best practices including a React-native front-end architecture and use of Adobe I/O events and Adobe API Mesh to limit customizations within the core Adobe Commerce platform.
The Zuora integration enables customers to launch subscription services on Adobe Commerce storefronts and headless commerce implementations using over 50 different pricing models. Subscription products are built directly within Adobe Commerce and sync product data to Zuora automatically. Buyers can easily discover, compare, and configure subscription offerings and purchase subscriptions and physical goods in a single order. Post-purchase, they can conveniently manage their subscriptions within the Adobe Commerce MyAccount experience.
Fuel personalized journeys, abandoned cart emails, and analytics with Adobe Commerce’s data connections to Adobe Real-Time CDP, Adobe Journey Optimizer, and Adobe Analytics
Companies are seeking to personalize every part of the buying journey, from helping customers find the right products to delivering personalized campaigns, offers, and communications across all channels.
Adobe Commerce enables customers to personalize the entire buying journey by sharing high intent commerce data with other Adobe Experience Cloud solutions. Adobe Commerce Data Connection automatically collects, maps, and shares a range of Commerce data — from storefront clicks to back-office order status and order history data.
In the first half of this year, we will share even more data, including Commerce customer profiles, mobile app behavior, and custom attributes for back-office events to personalize campaigns and experiences at scale. For example, customers will be able to use real-time customer registrations to trigger welcome email campaigns in Adobe Journey Optimizer.
Another way we are deepening our integrations to Adobe Experience Platform is a new Use Case Playbook. Use Case Playbooks are a library of ready-to-use implementation assets designed to help customers achieve faster time-to-value. The initial Adobe Commerce playbooks — coming in the first half of 2024 — will enable customers to easily launch abandoned cart and other campaigns by guiding them through the data setup process. Once connected, customers can quickly launch new campaigns to lift sales. We are also adding Commerce-specific dashboards in Adobe Experience Platform to help marketers analyze their Commerce data and identify opportunities for personalization.
Rich Commerce data can also personalize the Commerce experience itself. Adobe Real-Time CDP combines Commerce data with other sources to build detailed customer profiles and audience segments for targeting content and promotional offers in Adobe Commerce. In the first half of the year, we are expanding these Audience Activation capabilities to allow marketers and merchandisers to use Audiences defined in Adobe’s Real-Time CDP to personalize up-sell and cross-sell recommendations and mobile app content and promotions. Adobe Commerce will also support tracking user behavior on native mobile app deployments of Adobe Commerce.
AI-powered personalization with Live Search
In addition to personalized journeys in Adobe Journey Optimizer, Live Search, powered by Adobe Sensei helps companies personalize how customers find exactly what they are looking for on Adobe Commerce storefronts so they can increase their conversion rates.
In 2023, we added many new AI features that personalize search and browsing results for every customer that comes to your site:
- AI search results: Adobe Commerce storefronts that use Live Search deliver personalized site search results using AI algorithms such as “recommended for you,” “trending,” and “most purchased” to personalize the sort order of search results based on shopper behavior.
- AI category list pages: Live Search also delivers Intelligent Category Merchandising which uses AI to automatically re-rank the sequence of products on each category page to boost relevance and conversion for every shopper.
Our latest release of Live Search focuses on making these features easy to use and lets users fully customize the search experience to fit unique needs. Customers can now apply AI re-ranking rules to cover all queries, not just specific searches. This new default search rule allows them to set targeted rules for their most popular searches. For example, a merchandiser can set a rule that any search query containing the phrase “dress” should be sorted by the trending items algorithm. That same merchandiser can then use the most purchased algorithm for all other search queries. With this update, brands can set one rule to cover the long-tail of less searched-for queries, simplifying personalized merchandising.
We’ve also introduced new customization options for Live Search. Customers can design Live Search UI features including color swatches, product detail page layout options, add to cart buttons, price sliders, and more using code snippets. We provide full flexibility through our open code repository which serves as a best-practice reference implementation.
Protect patient data while growing ecommerce revenues with Adobe Commerce’s HIPAA-ready solution
Consumers are becoming more comfortable purchasing healthcare products and services online. In fact, according to Insider Intelligence, retail ecommerce sales for health and personal care products will be the fastest growing ecommerce segment in 2024 growing at 17.5% to reach $153 billion in ecommerce sales in the US.
When purchasing healthcare products and services, consumers expect their sensitive medical records and personal information to be highly protected. This is why Adobe Commerce has released a HIPAA-ready version of its cloud offering for healthcare and life sciences industries.
Adobe Commerce has implemented HIPAA-specific data collection, storage, and processing capabilities into its core cloud offering to allow healthcare businesses to deliver HIPAA-compliant commerce experiences. Furthermore, when enabling healthcare businesses for ecommerce, Adobe will sign a Business Associates Agreement (BAA) with its customers to ensure the customer can maintain compliance.
With these cloud features and business processes, Adobe Commerce now joins the Adobe Experience Cloud for Healthcare suite of solutions, allowing customers to deliver secure and exceptional patient experiences while honoring consumer preferences.
Accept payments on Adobe Experience Manager Sites and headless commerce deployments
Over the past several years, Adobe has built a fully integrated payment services solution within Adobe Commerce. This solution allows merchants to securely manage payments and order data from one solution. In our latest release merchants can accept and process payments on headless storefront implementations such as Adobe Experience Manager and other custom front ends.
Later this year, Adobe Commerce expects to release support for Google Pay — a leading digital wallet expected to reach 36 million consumers in 2024. The addition of Google Pay rounds out support for popular digital wallets including Apple Pay and PayPal.
B2B commerce
B2B ecommerce is another area of significant growth in online spending. In 2024, US B2B ecommerce sales are forecasted to reach $2.048 trillion dollars — growing at 10.3% year over year.
Adobe Commerce has delivered mission critical B2B ecommerce features for years including company accounts, purchase approval rules, quote management, and customer price books. That’s why B2B ecommerce leaders like Watsco, SealedAir, Sunbelt Rentals, Transcat, FoodServiceDirect.com, and Univar Solutions power their global B2B ecommerce channels on Adobe Commerce. We’re excited to share that in April, we will deliver new quoting and company management features.
Company management features will allow businesses to configure any buyer company structure they need to support B2B2X, conglomerates, or buying team structures using Adobe’s new parent/child account structures.
Building on our strong built-in quoting tool, B2B sellers can capture more revenue faster with new request for quote (RFQ) tools including draft quotes, duplicate quotes, split quotes, quote templates, and multi-admin access to quotes.
Both capabilities will be compatible with Adobe Commerce’s native storefront architecture and headless commerce deployments via GraphQL APIs.
Looking forward
As we move further into 2024, it is critical for ecommerce leaders to deliver experience-led commerce by improving storefront performance and using AI-powered personalization capabilities. Technology professionals must also move quickly using simplified, composable development frameworks. Our entire team is passionate about seeing ecommerce businesses thrive on our platform, and our latest release highlights all the ways businesses are achieving their goals with Adobe Commerce. Stay tuned for more exciting Adobe Commerce announcements planned for Adobe Summit.
Learn more about Adobe Commerce or join us live at Adobe Summit in Las Vegas March 25-28.
Ed Kennedy is an ecommerce strategist at Adobe. He has spent over 12 years in ecommerce consulting and software. During his career, Kennedy has overseen more than 200 implementations of ecommerce solutions. Prior to joining Adobe, he was a product strategy director at Optimizely and held executive positions at global ecommerce consulting firms and agencies. You can connect with him on LinkedIn.