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Commercetools is a cloud-based, headless commerce platform that provides APIs to power ecommerce sales and similar functions for large businesses. Founded in 2006 in Munich, Germany, by Dirk Hoerig and Denis Werner, Commercetools has expanded its presence globally, with offices in Berlin, Amsterdam, London, Durham (North Carolina), Zürich, Sydney, Shanghai, and Singapore. The platform is designed to support the development of custom ecommerce solutions, offering flexibility and scalability through its adherence to MACH (Microservices, API-first, Cloud-native, and Headless) principles.
In 2021, Commercetools secured a $140 million investment, completing its Series C funding round led by Accel, alongside existing investors Insight Partners and REWE Group. This investment valued the company at $1.9 billion and aimed to fuel global expansion and further development of its commerce platform. The company serves clients worldwide, including notable brands such as Audi, Bang & Olufsen, Carhartt, and Nuts.com.
Commercetools is a cloud-native, headless commerce platform designed to facilitate the development of custom ecommerce solutions. While it is widely adopted by medium to large enterprises, its flexible architecture also supports small to medium-sized businesses, particularly those implementing B2B projects. Understanding its core architectural principles is essential to fully grasp its capabilities.
Commercetools adheres to the MACH architecture, encompassing Microservices, API-first, Cloud-native, and Headless components. Here's a closer look at each aspect:
Microservices: Commercetools utilizes a microservices architecture, allowing individual services to be developed, deployed, and scaled independently. This composable approach enables companies to combine different services and features without extensive reprogramming, boosting flexibility and resilience.
API-First: The platform is built with an API-first approach, offering over 300 commerce APIs. This design ensures that all platform functions are accessible via APIs, facilitating integration with third-party systems and platforms. Connecting with various CMS and frontend systems simplifies processes.
Cloud-Native: Operating entirely in the cloud, Commercetools offers Software-as-a-Service (SaaS) capabilities that provide data security and accessibility. Its cloud-native environment supports a multi-cloud infrastructure, including providers like Google Cloud and AWS, providing flexibility and improved reliability.
Headless: The platform's headless architecture decouples the frontend and backend, allowing for the creation of any user interface without affecting backend operations. This separation enables developers to build tailored user experiences across various channels and devices.
Commercetools is a preferred choice across multiple sectors, including retail, manufacturing, and global ecommerce, due to its flexibility, scalability, and cost-effectiveness. Notable clients include AT&T, Woolworths Supermarkets, NBCUniversal, JSW Steel, and Qantas Airways.
Currently, 40% of Commercetools customers are based in the United States, 9% in Germany, and another 9% in the United Kingdom. This distribution underscores Commercetools' strong foothold in the American market as a European SaaS company.
Many businesses are migrating to Commercetools from platforms such as SAP Commerce Cloud, Magento, Demandware, and Salesforce Commerce Cloud. This trend is driven by the need for more flexible, scalable, and cost-effective solutions. Commercetools' modern, API-first architecture offers significant advantages over traditional platforms, particularly in terms of adaptability and efficiency.
Commercetools offers a wide array of integrations and connectors to expand the functionality of commerce platforms. Leveraging a modern API-first approach, these integrations enable businesses to tailor their digital commerce experiences effectively. Notable integrations include:
Search and Personalization:
Algolia: Provides advanced search and navigation capabilities, improving product discovery for users.
Constructor: Offers AI-first site search that drives conversions and revenue.
Payment Processing:
Adyen: A unified payments platform offering a payment gateway, risk management system, and acquirer services.
Stripe: Provides a suite of payment products fully integrated with Commercetools.
Customer Relationship Management:
Klaviyo: An intelligent marketing automation and customer data platform that integrates with Commercetools.
Content Management Systems:
Contentful: A headless CMS that enables the creation, management, and distribution of content across various channels.
Storyblok: Empowers teams to manage content for diverse use cases, including corporate websites and ecommerce platforms.
Digital Asset Management:
Cloudinary: A leading image and video platform.
Order and Inventory Management:
Fluent Commerce: Provides cloud-native enterprise distributed order and inventory management solutions.
Loyalty and Promotions:
Annex Cloud: Offers a Loyalty Experience Platform to engage and reward customers at scale.
Talon.One: Provides a flexible promotion engine to manage discounts and loyalty programs.
These integrations, among many others available through the Commercetools Integration Marketplace, empower businesses to create customized commerce solutions.
Commercetools API-first approach and microservices architecture enable seamless integration with various systems, making it a popular choice among modern enterprises.
Flexibility and Customization
Commercetools' headless architecture decouples the frontend from the backend, allowing businesses to design unique user interfaces and tailor the shopping experience to specific needs. This separation facilitates exceptional customization and adaptability.
Scalability
Built on a cloud-native infrastructure, Commercetools can efficiently handle large volumes of traffic and transactions, making it suitable for businesses experiencing rapid growth or seasonal spikes in demand.
Omnichannel Experience
The platform supports integration across various sales channels, including websites, mobile apps, and physical stores, ensuring a consistent and unified customer experience.
Performance and Speed
Commercetools is designed for high performance, with an average API response time of 23 milliseconds, which is four times faster than the industry average. This speed improves user experience and can lead to higher conversion rates.
Seamless Integration
Its API-first approach allows for easy integration with third-party systems such as content management systems, analytics tools, and payment gateways, enabling businesses to build a comprehensive technology stack tailored to their requirements.
Complexity and Learning Curve
The platform's extensive customization capabilities can introduce complexity, requiring a team of skilled developers for effective implementation and maintenance. This complexity may pose challenges for businesses without adequate technical resources.
Availability of Qualified Developers
As a relatively newer platform compared to established solutions like Shopify or Magento, there may be a limited pool of developers experienced with Commercetools, potentially leading to challenges in hiring or higher development costs.
Cost Considerations
Commercetools operates on a subscription-based pricing model, which can be higher than some other platforms. Additionally, the need for custom development and integration can further increase the overall investment, making it essential for businesses to assess the total cost of ownership.
Commercetools offers a flexible, usage-based pricing model designed to align with the specific needs and scale of your business. Here's an overview of their pricing structure and considerations for Total Cost of Ownership:
Pricing Model
Usage-Based Fees: Commercetools charges based on actual usage metrics, such as the number of API calls, transaction volumes, and the size of your product catalog.
Order-Based Approach: Unlike traditional Gross Merchandise Value (GMV)-based models, it utilizes an order-based pricing strategy, which can offer more predictable costs without hidden fees.
Customizable Plans: Pricing is tailored to individual business requirements. For precise details, we recommend to contact Commercetools directly to obtain a customized quote that reflects your specific usage patterns and needs.
Total Cost of Ownership
Composable Architecture: Its modular, composable architecture allows businesses to select and pay for only the components they need, potentially reducing unnecessary expenses and optimizing resource allocation.
TCO Calculator: To assist businesses in estimating potential costs and savings, Commercetools provides a TCO Calculator. This tool offers insights into the financial implications of adopting their platform.
Trial Period
60-Day Free Trial: Commercetools offers a 60-day free trial, allowing businesses to explore the platform's capabilities before committing. This trial period requires sharing some business information but does not obligate you to proceed further.
Considerations
Development and Integration Costs: While the platform's flexibility is a significant advantage, it's essential to account for potential development and integration expenses. These costs can vary depending on the complexity of your existing systems and the extent of customization required.
Before You Commit to a Platform… Understand the long-term investment and hidden costs that could impact your bottom line. Access the Full TCO Guide!
Though Commercetools is targeted at different kinds of companies, it is still a good choice for B2B businesses. It helps to customize and extend functionality to support specific B2B requirements and create B2C-like experiences.
To analyze key competitors of the platform in detail and answer your questions, let’s focus on the main aspects such as functionality, flexibility, performance, advantages, limitations and other important criteria of choosing between Commercetools and its competitors. For this, we have selected several alternatives you can choose instead of Commercetools:
Not Sure Which Platform is Right for You? Follow our step-by-step framework to select the best fit for your business goals. Read the Guide.
Please note that pricing structures can change over time, and we advise to consult the respective platforms' official resources or contact their sales representatives for the most current information.
Criteria
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Commercetools
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VirtoCommerce
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Oracle
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Adobe Commerce (Magento)
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Salesforce
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Spryker
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Big Commerce
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Shopify
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SAP Hybris
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Cost of Innovation
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High; customization can be complex, leading to increased costs.
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Moderate; open-source platform allows for cost-effective customization.
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High; licensing and implementation can be costly.
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Variable; open-source version is free, but enterprise edition incurs higher costs.
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High; pricing is based on a percentage of revenue, which can be substantial.
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Moderate; composable architecture supports tailored innovation.
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Moderate; offers flexibility with built-in features.
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Low; user-friendly platform with extensive app ecosystem.
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High; complex system with significant licensing fees
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Extensibility
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High; API-first approach facilitates integrations.
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High; API-driven platform enables seamless integrations.
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Moderate; integrates well with other Oracle products but less so with third-party tools.
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High; extensive marketplace for extensions and themes.
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High; robust API supports extensive integrations.
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High; composable architecture allows for flexible.
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Moderate; offers a range of integrations but may require customization.
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Moderate; extensive app store, but some limitations in customization.
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Moderate; strong integration within SAP ecosystem but limited with external tools.
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Target Audience
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Mid to large enterprises seeking headless commerce solutions.
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Mid to large enterprises seeking flexible, customizable solutions.
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Large enterprises requiring comprehensive commerce solutions. |
Businesses of all sizes, especially those needing customization.
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Large enterprises focused on B2C and B2B commerce.
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Enterprises with complex business models seeking composable commerce.
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SMBs to mid-market businesses seeking scalable solutions.
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SMBs and entrepreneurs looking for an easy-to-use platform.
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Large enterprises requiring robust, integrated solutions.
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Functionality
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Comprehensive; supports complex commerce scenarios.
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Comprehensive; offers a wide range of features suitable for various business models.
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Extensive; offers a wide range of commerce capabilities.
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Rich; supports both B2B and B2C models with extensive features.
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Robust; caters to complex B2B and B2C requirements.
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Advanced; designed for sophisticated transactional businesses.
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Comprehensive; includes essential e-commerce features out-of-the-box.
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Solid; covers all basic e-commerce needs with additional apps available.
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Extensive; integrates seamlessly with other SAP solutions.
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Price
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Variable; based on usage and services required.
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Open-source version is free, while enterprise solutions have custom pricing based on business needs, typically starting around $30,000+ per year.
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High; significant licensing and operational costs.
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Variable; open-source is free, enterprise edition has licensing fees starting around $22,000/year.
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High; fees are a percentage of revenue, typically between 0.5% and 2.5%.
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Variable; pricing based on developer seats and usage.
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Moderate; subscription-based with various tiers.
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Starts at $39/month for Basic, $105/month for Shopify, and $399/month for Advanced. Shopify Plus (enterprise solution) starts at $2,000/month.
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Pricing varies based on implementation, typically $100,000+ per year for licenses and additional implementation costs.
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View All Platform Comparisons and find the best solution for your digital commerce needs!
Among all the solutions compared, only Virto Commerce comes close to Commercetools in terms of modern architecture and flexibility. These platforms stand out due to their API-first and headless approaches, offering businesses more customization and adaptability than traditional monolithic platforms like Magento, Shopify, and SAP.
API-First Approach – Both Commercetools and Virto Commerce allow businesses to create unique, scalable, and highly customizable commerce solutions without being constrained by predefined frontend templates. In contrast, platforms like Magento and Shopify limit flexibility with their built-in structures.
Performance & Innovation – Cloud-native solutions like Virto Commerce and Commercetools leverage microservices to ensure high performance and agility. While platforms such as Oracle Commerce and SAP support enterprise-grade cloud capabilities, their monolithic architectures make it harder to implement rapid innovations.
Scalability – Both Virto Commerce and Commercetools enable businesses to scale efficiently. Virto Commerce's Atomic Architecture™ takes this a step further by providing a modular, composable approach that simplifies scaling and customization while reducing total cost of ownership.
Integration Capabilities – Seamless integration with existing systems is a critical advantage. Virto Commerce surpasses Commercetools by offering deep B2B functionality, including ERP, CRM, and PIM integrations, making it a stronger choice for complex B2B workflows.
Headless Architecture – Like Commercetools, Virto Commerce provides complete frontend and backend separation, enabling businesses to build truly omnichannel experiences with more personalized and integrated solutions compared to traditional ecommerce platforms.
In summary, Virto Commerce and Commercetools stand out in the ecommerce landscape by providing unparalleled flexibility, scalability, and innovation-friendly architectures. However, for businesses seeking a robust B2B commerce platform with deep customization capabilities and cost-effective scalability, Virto Commerce offers a more tailored solution.
Innovation in ecommerce is only possible when businesses adopt headless, API-first, and modular solutions that enable agility and scalability. Commercetools is a strong example of such a system, offering flexibility and modern architecture. However, it comes with a steep learning curve and increasing complexity as customization needs grow. Despite this, it remains a better alternative to legacy platforms like SAP Hybris or Oracle Commerce, which struggle with agility and innovation.
When selecting a new ecommerce solution, businesses must carefully assess their real needs, scalability requirements, and the risk of falling behind in a rapidly evolving market. If staying ahead through continuous innovation is a priority, platforms like Commercetools and Virto Commerce provide the necessary extensibility to future-proof digital commerce operations.
For businesses seeking a cost-effective, flexible, and deeply customizable alternative, Virto Commerce delivers similar capabilities with enhanced B2B functionality and an open, modular architecture that simplifies integration and scaling. If you’re considering your next step in digital commerce, reach out to our team today to learn how Virto Commerce can help you build a scalable and future-ready ecommerce solution!
Want to see how Virto Commerce compares to other leading ecommerce and marketplace platforms? Dive into our collection of comparison guides and discover why Virto Commerce is the preferred choice for businesses worldwide.
View All Platform Comparisons and find the best solution for your digital commerce needs!
To gain deeper insights and practical advice for choosing the right ecommerce platform, explore our related guides:
TCO Guide: Evaluate long-term costs to keep your platform a strategic asset.
Choosing the Right Platform: A step-by-step guide to align your platform with business goals.
When to Re-platform: Key signs and tips for a smooth transition.