Shopify Aims to Woo Big Retailers With ‘Commerce Components’

Shopify says it is opening its eCommerce infrastructure to some of the world’s biggest retailers.

That’s the goal behind Commerce Components by Shopify, which the company debuted Tuesday (Jan. 3), describing it as a “modern, composable stack for enterprise retail.”

“We’ve always approached innovation at Shopify by anticipating what retailers need, then providing those solutions,” Shopify President Harley Finkelstein said in a press release.

“Commerce Components by Shopify opens our infrastructure so enterprise retailers don’t have to waste time, engineering power, and money building critical foundations Shopify has already perfected, and instead frees them up to customize, differentiate, and scale.”

The company said toymaker Mattel will be among the first retailers using Commerce Components, moving their entire brand portfolio to Shopify.

According to the release, Commerce Components gives retailers access to components such as Shopify’s checkout, which the company says converts “72% better than a typical checkout, and 91% better on mobile,” along with flexible APIs.

The debut of Commerce Components comes one day after news that Shopify was looking to boost its revenue by helping retailers deliver targeted ads. The company is reportedly using new partnerships with Meta and Google to identify and help retailers reach potential customers.

“Especially right now, merchants want to be able to find more customers,” Finkelstein told the Financial Times.

At a time when consumer spending has been slowed by economic uncertainty and rising inflation, the company’s tool, called Shopify Audiences, helps retailers deliver targeted ads.

Shopify Audiences enables retailers to upload their customer data to the advertising platforms of Meta and Google, which then use the information to allow marketers to target their ads to consumers who have purchased similar products from other sources, according to the report.

When it announced the launch of this service in the spring of last year, Shopify said that it offers a new, cost-effective way to connect with those who are ready to buy.

“Shopify Audiences uses the collective power of Shopify merchants that band together to unlock the power of their data,” Shopify Senior Product Lead Jonathan Zhao wrote in a May 11 blog post introducing the service. “Buyers who purchase from our merchants are some of the highest quality customers on the internet.”