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Dynamics 365 Commerce · Platform Guide · 2026Dynamics 365

Dynamics 365 Commerce, Explained as a Platform

Dynamics 365 Commerce is Microsoft's ERP-grade omnichannel commerce platform: one headless commerce engine in the Commerce Scale Unit (CSU) powers Store Commerce POS, the React storefront, call center, and partner channels from a single set of pricing, inventory, promotions, and order logic. This guide covers CSU Core architecture, Store Commerce, e-commerce and Site Builder, distributed order management (DOM), 2026 release-wave capabilities (B2B multi-outlet, credit management, cross-legal-entity fulfillment, React POS journeys), licensing shape, and fit criteria so you can decide whether Commerce's composable design matches your retail model before you commit.

14 min readUpdated Aug 3, 202618 sources cited

TL;DR — Key takeaways

  • Commerce Scale Unit (CSU) hosts the headless commerce engine and is the central integration point for all commerce business logic
  • Store Commerce app unifies MPOS + Cloud POS into one cross-platform app (Windows, iOS, Android); available from Commerce 10.0.25
  • React.js storefront with server-side and client-side rendering; customizable via the Dynamics 365 Commerce module library
  • DOM is an omnichannel order fulfillment optimization solution that maximizes fulfillment while minimizing cost and meeting service levels
01Platform orientation

What Dynamics 365 Commerce actually is

Dynamics 365 Commerce is the Microsoft business application that delivers unified, personalized buying experiences across physical stores, digital storefronts, and back-office operations. Microsoft positions it for midsized to large-enterprise retailers and B2B organizations, and it is the successor product line to what was previously branded Dynamics 365 Retail. Unlike a standalone storefront, Commerce is built as a composable, API-driven commerce platform whose business logic is decoupled from the user interfaces that consume it — which is the technical reason it can promise true omnichannel rather than a collection of disconnected channels.

The product is deliberately split into layers: the back office (Commerce headquarters, which configures products, employees, channels, pricing, and business processes), the headless commerce engine (the runtime that executes commerce logic), the channel clients (in-store POS, the e-commerce storefront, the call center, and external apps), and a set of surrounding AI and data services. Each layer can be extended or, in the case of channel clients, replaced: because the headless engine exposes its logic through open APIs, a partner or in-house team can build a custom front-end and still reuse all of Commerce's pricing, inventory, promotions, and order logic.

This guide covers Commerce as a platform — what each layer does, how data flows between them, and how the pieces compose into an omnichannel system. It is deliberately distinct from our Commerce decision guide, which focuses on whether an SME should run Commerce at all, and our Dynamics 365 Commerce pricing guide, which breaks down the licensing and total cost of ownership. Read this page to understand how the product works under the hood; read those for fit and budget.

02Architecture core

The headless commerce engine and the Commerce Scale Unit

The Commerce Scale Unit (CSU) is the heart of Dynamics 365 Commerce. It hosts the headless commerce engine and serves as the central integration point for all commerce business logic, powering a complete omnichannel solution across physical and digital stores. The CSU is built on a portable architecture that allows flexible hosting across cloud, edge, and hybrid topologies, which is what lets a retailer run the same business logic in an Azure datacenter, inside a physical store with poor connectivity, or both at once.

The engine exposes its logic through two main API surfaces: the Commerce Runtime (CRT), which executes the business logic for commerce operations, and Retail Server, which exposes that logic as APIs to channel clients and external applications. Every native channel — in-store POS, the online storefront, the call center — talks to the same Retail Server, so a price change, a promotion, or an inventory update is authored once in headquarters and propagates consistently to every channel. This single-engine, many-channel design is the architectural property that distinguishes a unified commerce platform from a stack of tools glued together with middleware.

The current generation of the engine is CSU Core, the next-generation, high-performance platform that Commerce offers to host the headless commerce engine. CSU Core is built using ASP.NET Core and runs on .NET (specifically .NET 6), which gives it better API performance than the earlier .NET Framework-based CSU while remaining backward compatible with extensions built using the Commerce SDK and .NET Standard 2.0. New deployments have used CSU Core by default since Commerce version 10.0.22, and from version 10.0.38 the legacy CSU runtime can no longer be selected for new CSUs. The practical implication is that any extension built against the legacy Retail SDK must be migrated to the Commerce SDK and .NET Standard 2.0 before it will run on current CSU Core deployments.

For architects evaluating whether to buy a separate commerce or pricing engine, the CSU is the critical reuse point. Headless Commerce Integration guidance and Microsoft FastTrack samples document patterns for products, customers, inventory, pricing, orders, and payments over HTTPS — the same Retail Server surface native POS and e-commerce use. Independent analysis of recent CSU builds indexes on the order of 650 API endpoints across the commerce surface (release-dependent), which is enough for third-party storefronts, service apps, and Dataverse solutions to consume ERP-native pricing and stock without cloning commercial logic. Microsoft is also previewing a Commerce MCP server that exposes this same headless engine to compatible agents, so agentic shopping channels can reuse pricing, promotions, inventory, and order logic rather than inventing a shadow model. The architectural rule is simple: separate the front-end decision (native storefront, custom React, marketplace, agent) from the commerce-engine decision — for Dynamics-centric retailers, CSU is often already the engine.

  • Commerce Scale Unit (CSU) hosts the headless commerce engine and is the central integration point for all commerce business logic
  • Portable architecture supports cloud-hosted (Microsoft-managed SaaS), self-hosted (in-store edge), and hybrid topologies in one environment
  • Commerce Runtime (CRT) executes business logic; Retail Server exposes that logic as APIs to POS, e-commerce, call center, and external apps
  • CSU Core is the next-generation engine, built on ASP.NET Core and .NET 6; default since Commerce 10.0.22, mandatory for new CSUs from 10.0.38
  • Extensions must be migrated from the legacy Retail SDK to the Commerce SDK (.NET Standard 2.0) to run on CSU Core
  • Headless Commerce Integration + FastTrack samples cover products, customers, inventory, pricing, orders, and payments for external apps
  • Commerce MCP server (preview) exposes the same engine to agentic channels so agents do not invent shadow pricing logic
03Channel architecture

One engine, four channel types

Because the headless engine is the single integration point for all channels, Commerce's channel clients are effectively interchangeable consumers of the same business logic. The native channels break down into four categories, each configured and operated from Commerce headquarters but all powered by the same CSU. Understanding which channels you actually need is the first scoping decision in any Commerce rollout, because it determines which client apps you deploy and which licensing line items appear on the quote.

The in-store channel runs the Store Commerce app; the digital channel runs the e-commerce storefront plus Site Builder; the call center is a back-office application in headquarters used by call-center workers for assisted commerce workflows; and the external-apps category covers any partner or customer-built front-end that consumes the same Retail Server APIs the native clients use. The external-apps path is the composable promise made real: a custom-built mobile app, a marketplace integration, or a B2B self-service portal can reuse Commerce's pricing, inventory, and order orchestration without duplicating that logic.

A consequence of this design is that channel parity is an architectural property, not a project. Pricing, promotions, assortments, and customer data are authored once and surfaced consistently across POS, web, and call center — the same data, the same engine. Where channels diverge, it is by configuration (for example, an assortment published to one store group but not another), not because each channel maintains its own copy of the catalog.

Dynamics 365 Commerce native channel types and what powers them. Source: Microsoft Learn Commerce architecture overview.
ChannelClientWhat it doesPowered by
In-storeStore Commerce app (Windows, iOS, Android, macOS)Cash-and-carry, assisted selling, clienteling, endless aisle, returnsCSU (headless engine + CRT/Retail Server)
Digital / e-commerceReact.js storefront + Site BuilderOnline product browsing, cart, checkout, content managementCSU + e-commerce platform (CMS, DAM)
Call centerCommerce headquarters back-office appPhone-order entry, customer service, order management, returnsHeadquarters + CSU
External / partner appsCustom or ISV front-endMarketplace, custom mobile app, B2B self-service portalRetail Server APIs (same logic as native channels)
04In-store channel

The Store Commerce app: the next-generation POS

The Store Commerce app is Commerce's next-generation offering for physical stores, available from Commerce version 10.0.25 onward. It unifies the former Modern POS (MPOS) and Cloud POS (CPOS, now known as Store Commerce for web) into a single cross-platform application (Windows, iOS, Android, and macOS per Microsoft's architecture overview), providing deployment choices while retaining all the functionality and extensibility of both predecessors. For in-store frontline workers — cashiers, sales associates, stock clerks, and store managers — it provides cash-and-carry transactions, cash and shift management, customer engagement, assisted selling, clienteling, endless aisle, order processing and fulfillment, inventory management, and reporting.

Architecturally, Store Commerce for Windows is a Windows Presentation Foundation (WPF) shell application that uses the Microsoft Edge WebView2 control to render Store Commerce for web. The key technical change from MPOS is that Store Commerce uses the Chromium engine (via WebView2) to render the user interface, which delivers better rendering performance than the Universal Windows Platform (UWP) rendering framework that MPOS relied on. It supports a local hardware station and offline usage, and can be directly integrated with a payment terminal, printer, and cash drawer without requiring a separate shared hardware station.

Store Commerce supports two deployment topologies. In the in-app topology, all components are deployed locally on the device, which enables offline mode (using an embedded Commerce Runtime and a local SQL Server database) and a local hardware station. In the hybrid topology, Store Commerce acts as a shell that renders the Cloud POS UI hosted in the CSU, supports a local hardware station, but does not support offline. There are no separate installers — the topology is determined by the parameters passed during installation. Microsoft deprecated MPOS and the Retail hybrid apps in October 2023 and recommends Store Commerce or Store Commerce for web for all new deployments, so any greenfield rollout should begin on Store Commerce, not MPOS.

On hardware, Commerce supports OPOS (OLE for Retail POS) as the primary peripheral device platform for receipt printers, cash drawers, barcode scanners, line displays, scales, and PIN pads. The Store Commerce app does not support Universal Windows Platform (UWP) Point of Service peripherals, so retailers moving from MPOS plug-and-play USB scanners or magnetic stripe readers must install OPOS drivers and configure those devices in the hardware profile. For payments, the out-of-box Dynamics 365 Payment Connector for Adyen uses the device-agnostic Adyen Terminal API to support dip, swipe, and tap card payments, digital wallets, gift cards, omnichannel tokenization, and linked refunds.

Microsoft's 2026 release wave 1 continues to modernize the POS surface itself. Store Commerce journeys are shifting onto React and Fluent UI components (general availability from April 2026), with multi-language support for Store Commerce self-checkout, configurable inline actions on transaction line items, payment-method display order and visibility controls, and the ability to prevent returns of specific items at the register. Contextual switching with external apps in POS lets associates jump into a partner or line-of-business app and return without losing the transaction context. Associates can also use the nearest store payment terminal rather than a fixed assignment — useful on open sales floors and assisted-selling stations. These are not cosmetic updates: they close the gap between a legacy UWP-era POS shell and a modern, multi-device associate experience that still runs on the same CSU engine.

  • Store Commerce app unifies MPOS + Cloud POS into one cross-platform app (Windows, iOS, Android); available from Commerce 10.0.25
  • Windows version is a WPF shell using the Edge WebView2 (Chromium) engine for better rendering performance than MPOS's UWP framework
  • Two topologies: in-app (local content, offline via local SQL Server + embedded CRT) and hybrid (renders Cloud POS from CSU, no offline)
  • Supports OPOS peripherals; does not support UWP Point of Service devices
  • Out-of-box Adyen payment connector for card, wallet, and gift-card payments with omnichannel tokenization and linked refunds
  • MPOS and the Retail hybrid apps were deprecated in October 2023 — Store Commerce is the path for new deployments
  • 2026 wave 1: React/Fluent UI POS journeys, multi-language self-checkout, inline line-item actions, payment-method display controls, item-level return prevention
  • Contextual switching with external apps in POS (GA June 2026) and nearest-terminal payments for open-floor assisted selling
05Digital channel

The e-commerce storefront and Site Builder

The e-commerce storefront is the customer-facing website rendering system for the digital channel. It is built on the React.js framework and uses a combination of server-side and client-side rendering to deliver responsive web experiences for one or more online channels. While the storefront ships with a rich set of out-of-box capabilities, it is highly customizable through the Dynamics 365 Commerce module library, which a partner can modify or extend to meet a retailer's unique requirements.

Before you can build a site, at least one online store channel must be configured in Commerce headquarters. An online store channel establishes the products, pricing, languages, payment methods, delivery modes, fulfillment centers, and other aspects of the online experience that should be available to customers. A single e-commerce site can serve multiple online store channels — for example, one site can serve several geographic regions, with each region's unique experience defined by its own online store channel and a unique URL path.

Site Builder is the web-based authoring interface for the content management and storefront rendering systems. Its Visual page builder is a what-you-see-is-what-you-get (WYSIWYG) editor for site managers and content authors who manage and produce marketing content, and it includes integrated accessibility reporting, URL management, site map generation, and image focal point management. Underneath, the e-commerce platform integrates a full content management system (CMS) built on a scalable Azure infrastructure that includes Microsoft Entra and Azure Cosmos DB, plus a digital asset management system whose image resizer service optimizes images for different devices and contexts.

Authentication for storefront shoppers is handled by Microsoft Entra B2C (business-to-consumer), which supports user credential and authentication flows. Commerce supports multiple B2C tenants in a single environment, which matters for retailers operating distinct brands or markets that need separate identity silos. For a deeper comparison of how Commerce's POS architecture relates to general point-of-sale concepts, see our POS system guide.

  • React.js storefront with server-side and client-side rendering; customizable via the Dynamics 365 Commerce module library
  • An online store channel defines products, pricing, languages, payments, delivery modes, and fulfillment centers for the digital experience
  • One e-commerce site can serve multiple online store channels (e.g., multiple regions), each with a unique URL path
  • Site Builder is a WYSIWYG authoring tool with accessibility reporting, URL management, sitemap generation, and image focal point management
  • CMS runs on Azure with Microsoft Entra and Azure Cosmos DB; shoppers authenticate through Microsoft Entra B2C
06Order orchestration

Distributed order management: how order routing works

Distributed order management (DOM) is the order fulfillment optimization engine inside Dynamics 365 Commerce, and it is the capability that turns a multi-location retailer into a true omnichannel fulfillment network. DOM is an omnichannel order fulfillment optimization solution that helps maximize order fulfillment in a supply chain network — ensuring that products are delivered to customers in the correct quantities, from the correct sources, at the correct times, while also helping maximize profits, minimize costs, and meet service-level requirements.

The technical core of DOM is mathematical optimization. DOM uses mixed integer programming (MIP) and predictive analysis models to perform optimizations at both the batch level and the level of individual orders, which lets retailers use defined rules to balance many conflicting order fulfillment needs. In a modern supply network, where product fulfillment can come from multiple channels, organizations must adapt quickly to order changes, supplier availability issues, and spikes in demand. DOM finds the correct sources for product delivery based on the distance between fulfillment sources and shipping destinations, cost factors you define as optimization objectives, and rules you define as constraints (such as inventory available at fulfillment nodes).

A defining strength of DOM is its profile model. DOM allows the definition of multiple profiles that enable businesses to run different optimization strategies depending on the type of business or consumer segment — so a single retailer can run one strategy for a high-margin luxury segment (favoring service level and speed) and a different one for a clearance segment (favoring cost minimization). DOM supports rules, cost configurations, and fulfillment-plan outputs that an implementation team tunes to the retailer's objectives, and it is designed for extensibility through the Commerce SDK where standard rules are not enough.

There is one architectural caveat that implementation teams must plan for: DOM is a cloud-channel capability. It depends on the cloud-hosted Commerce Scale Unit, so it is not available on self-hosted (on-premises) CSU deployments, which support POS, call center, merchandising, pricing/discounts, and loyalty but not the online store, e-commerce channels, or DOM. For retailers whose fulfillment strategy depends on intelligent cross-location routing, a cloud CSU is therefore a prerequisite, not an option.

The 2026 release wave 1 extends DOM beyond single-legal-entity boundaries. Cross-legal-entity order fulfillment (public preview from May 2026, general availability targeted for June 2026) lets fulfillment groups include warehouses and stores from multiple legal entities, so DOM can source, promise, and deliver from the optimal location regardless of company structure. When a cross-entity warehouse is selected, the system can create intercompany orders automatically, surface inventory visibility across entities, and allow POS fulfillment at stores in other legal entities with accurate customer details. Profiles and rules are updated to remove single-entity constraints, and direct-delivery methods are supported. For multi-brand, multi-country retailers that already run separate legal entities in Dynamics 365 Finance and Supply Chain Management, this closes a long-standing gap between enterprise org charts and real fulfillment networks.

  • DOM is an omnichannel order fulfillment optimization solution that maximizes fulfillment while minimizing cost and meeting service levels
  • Uses mixed integer programming (MIP) and predictive analysis to optimize at batch and individual-order level
  • Optimizes using distance between sources and destinations, cost factors (objectives), and rules (constraints such as node inventory)
  • Multiple profiles allow different optimization strategies per business or consumer segment
  • Cloud-channel capability — not available on self-hosted (on-premises) CSU deployments
  • 2026 wave 1: cross-legal-entity DOM with multi-entity fulfillment groups, intercompany order automation, cross-entity inventory visibility, and POS support
07Fulfillment models

Customer orders: BOPIS, ship-to-home, and endless aisle

DOM decides where an order should be fulfilled from; customer orders are the mechanism that lets Commerce capture the demand in the first place. In Dynamics 365 Commerce, a customer order captures a sale where a shopper wants to pick up products on a later date, pick up products from a different location, or have items shipped to them. This is the foundation of every modern omnichannel fulfillment model: buy-online-pick-up-in-store (BOPIS), ship-to-home, ship-from-store, and endless aisle.

Retailers use customer orders to minimize lost sales that stock outages might otherwise cause, because the merchandise can be delivered or picked up at a different time or place. Three typical scenarios illustrate the model: a customer wants products delivered to a specific address on a specific date; a customer wants to pick up products from a store that differs from the store where they purchased them; or a customer inside a store wants to order today and pick up from the same store on a later date. All three are first-class flows in Commerce, configured through delivery modes and fulfillment groups.

Fulfillment groups are the configuration concept that controls which locations can fulfill customer orders. Some stores or warehouse locations may not be able to fulfill, so an organization specifies which stores and warehouses appear as options when a customer order is created in POS. From Commerce version 10.0.12, organizations can define whether each location in a fulfillment group can be used for shipping, for pickup, or for both — giving added flexibility over which warehouses ship and which stores accept pickups. The POS exposes dedicated operations for these flows (Ship all, Ship selected, Pick up all, Pick up selected, Carry out all, Carry out selected), so an associate can split a single transaction across fulfillment models at the register.

A pricing detail worth knowing for omnichannel order changes: when users recall and edit orders in POS, the prices and discounts of existing order lines are treated as 'locked' and do not change even if lines are canceled or new lines are added. This preserves the price a customer committed to at capture time. From Commerce version 10.0.21, the 'Prevent unintentional price calculation for commerce orders' feature (on by default) extends this protection with a Price locked property on all e-commerce order lines, so editing an order does not silently reprice it.

  • Customer orders capture sales for later pickup, pickup at a different location, or shipment — the basis of BOPIS, ship-to-home, and endless aisle
  • Fulfillment groups define which stores and warehouses can fulfill, and from 10.0.12 whether each is for shipping, pickup, or both
  • POS operations support split carts (Ship all/selected, Pick up all/selected, Carry out all/selected) at the register
  • Edited orders keep existing line prices 'locked' to the captured commitment; the Price locked feature (on by default from 10.0.21) generalizes this
08Retail operations

Merchandising, pricing, loyalty, and clienteling

Beyond the channels and order orchestration, Commerce provides the back-office retail operations that a merchandising and store-operations team runs day to day. Commerce headquarters is where product information, attributes and attribute groups, retail sales price management, retail discounts, and inventory availability for online and retail channels are configured. Because all of this master data is authored in headquarters and pushed to the channels through the same engine, a single pricing or assortment decision propagates consistently across POS, web, and call center without per-channel rework.

Loyalty and clienteling turn that transactional backbone into a relationship engine. The Commerce loyalty capability lets retailers increase customer loyalty through customizable schemes, allowing purchases to be converted to points redeemable on future purchases — and because loyalty is part of the same engine, points accrue and redeem consistently whether the purchase happens in-store or online. Clienteling gives store associates a customer-centric view at the POS, surfacing customer history and preferences so associates can deliver personalized, relationship-based service rather than purely transactional sales.

Microsoft is layering Copilot across these merchandising workflows. Commerce now offers Copilot-based experiences for customer insights, store report insights, statement posting summaries, and merchandising-process insights, plus the ability to use Copilot in Site Builder to enrich product detail pages. The direction is to reduce the manual effort in merchandising content and analysis — automating routine reporting and content enrichment tasks that previously consumed a category manager's time.

Two 2026 wave capabilities change how merchandising and credit teams work day to day. Attribute-based pricing (general availability June 2026) streamlines mass price updates by letting teams target products through attributes rather than line-by-line edits — critical when a fashion or electronics assortment needs seasonal or competitive price moves across thousands of SKUs. Credit management support for Commerce orders (general availability June 2026) brings built-in credit checks and controls into commerce order capture, which matters especially for B2B and multi-outlet wholesale flows where cash-flow protection cannot be an after-the-fact ERP task. Together with multi-outlet B2B ordering via CSU and streamlined multi-outlet access for B2B web storefronts (preview from April 2026, GA targeted September 2026), Commerce is closing the historical gap between B2C-first digital retail and true B2B omnichannel ordering.

  • Commerce headquarters configures product information, attributes, retail sales price management, retail discounts, and channel inventory availability
  • Master data authored once in headquarters propagates consistently to POS, web, and call center through the same engine
  • Loyalty schemes convert purchases to redeemable points, accruing and redeeming consistently across channels
  • Clienteling surfaces customer history and preferences at the POS for relationship-based selling
  • Copilot experiences now support customer insights, store report insights, statement summaries, merchandising insights, and product-page enrichment in Site Builder
  • Attribute-based pricing (GA June 2026) accelerates mass price updates by product attributes
  • Credit management on Commerce orders (GA June 2026) protects B2B cash flow at capture time
  • Multi-outlet B2B ordering via CSU and multi-outlet B2B storefront access (2026 wave 1)
09AI and data services

The surround services: AI, search, recommendations, and data

Commerce is more than the engine and the channels — it ships with a set of surround services that an implementation team composes into the experience. These are first-party Microsoft capabilities that integrate with Commerce out of the box, and several are separately licensed, so they belong in any platform-level scope. Four of them define most of the differentiated customer experience: product recommendations, ratings and reviews, customer insights, and Azure Cognitive Search.

Product recommendations let retailers surface items a customer might be interested in, based on the purchase trends of other customers in both online and brick-and-mortar stores, supporting cross-sell and upsell to help customers discover products they did not originally intend to buy. Ratings and reviews let online customers enter product reviews and ratings through the storefront, with Azure Cognitive Services offering automatic moderation of profane words in 40 languages — because human approval is not required, moderation costs are reduced. Azure Cognitive Search integrates into Commerce to provide consistent product discovery and search across all channels that use the CSU, giving customers fast category browsing, searching, and filtering with the scalability e-commerce traffic demands.

Dynamics 365 Customer Insights deepens the relationship layer by connecting data from transactional, behavioral, and observational sources into a 360-degree customer view. Commerce makes it easy to integrate Customer Insights and surface generated insights at the POS — including churn probability and next best action — so sales associates can have effective, personalized conversations with customers. These insights are valuable precisely because they are surfaced in the flow of work, at the register, rather than trapped in an analytics dashboard the store team never opens.

Underpinning all of this is a unified data architecture. Commerce integrates out of the box with Microsoft Dataverse and Azure Data Lake Storage. Dataverse enables cross-application scenarios with Dynamics 365 apps such as Sales and Customer Service and powers new scenarios through Power Apps and Power Automate. Azure Data Lake Storage holds structured business data from back-office operations and clickstream data from the storefront, which flows back into intelligence services such as product recommendations, customer insights, and commerce analytics. For more on how Dataverse fits the broader Microsoft data model, see our Dataverse guide.

  • Product recommendations use cross-store and online purchase trends to drive cross-sell and upsell on web and POS
  • Ratings and reviews include Azure Cognitive Services profanity moderation in 40 languages with no human approval required
  • Azure Cognitive Search provides consistent, scalable product discovery and filtering across all CSU channels
  • Dynamics 365 Customer Insights surfaces churn probability and next best action at the POS for personalized selling
  • Unified data via Dataverse (cross-app scenarios + Power Platform) and Azure Data Lake Storage (feeds recommendations, insights, analytics)
10Ecosystem

How Commerce fits the Dynamics 365 and Power Platform ecosystem

Commerce does not run in isolation. The platform shared among the Dynamics 365 business applications — Commerce, Supply Chain Management, Finance, and Human Resources — provides a set of interconnected business processes that users benefit from immediately, because all back-office capabilities across these applications are built on the same web experience and data stores. The practical result is a seamless flow of business processes across functions with no custom integrations required for standard scenarios: product and inventory data flows to commerce channels, and retail transactions post to financials.

This shared-platform property is one of Commerce's most strategic differentiators. A retailer running Dynamics 365 Finance and Supply Chain Management alongside Commerce has out-of-box interconnected processes — the online store's product data comes from the same master records SCM manages, and every sale posts to the Finance general ledger without middleware. Dynamics 365 Finance offers an integrated experience for managing stores and e-commerce financial statements alongside the rest of operations, and Dynamics 365 Human Resources provides integrated workforce planning and time management. For organizations already invested in the Dynamics 365 finance-and-operations family, this is the reason a Commerce rollout layers cleanly onto an existing ERP rather than standing as a separate island.

The Power Platform extends this further. Dataverse integration means Commerce data can power custom Power Apps and Power Automate workflows, and Microsoft documents dual-write, virtual entities, and reporting with Power BI as the integration patterns that connect finance and operations apps with the broader Microsoft platform. For a sense of how the broader finance-and-operations stack is organized, see our finance and operations guide; for how supply chain fits, see our supply chain management guide.

  • Commerce shares its platform and data stores with Dynamics 365 Finance, Supply Chain Management, and Human Resources
  • Out-of-box interconnected processes: product/inventory data flows to channels, retail transactions post to financials, no custom middleware for standard scenarios
  • Power Platform integration via Dataverse, dual-write, virtual entities, and Power BI reporting
  • For organizations already on Dynamics 365 F&O, Commerce layers onto the existing ERP rather than running as a separate island
112026 product direction

What's new in Dynamics 365 Commerce (2026 release wave 1)

Microsoft's 2026 release wave 1 (features releasing April through September 2026) concentrates on three themes for Commerce: stronger B2B multi-outlet commerce, smarter cross-entity fulfillment, and a modernized Store Commerce associate experience. Treat the wave plan as directional — delivery dates can move, and not every planned item ships — but the pattern is clear enough for architecture roadmaps.

On the digital and omnichannel side, multi-outlet B2B ordering via CSU and streamlined multi-outlet access for B2B web storefronts reduce friction when a buyer represents several outlets with distinct catalogs and credit limits. Credit management support for Commerce orders protects cash flow at capture rather than after the fact. Attribute-based pricing accelerates mass price updates. Cross-legal-entity DOM lets fulfillment span company boundaries with automated intercompany orders. Asynchronous payments and pay-by-link for call-center orders modernize remote payment capture. Environment and CSU deployment management via the Power Platform admin center brings Commerce operations closer to the rest of the Microsoft business-applications estate.

On the store floor, React and Fluent UI modernization of POS journeys, multi-language self-checkout, inline transaction-line actions, payment-method display controls, item-level return prevention, nearest payment terminal selection, and contextual switching with external apps collectively move Store Commerce away from legacy shell limitations toward a configurable, multi-device associate workstation — still driven by the same headless engine and still extendable through the Commerce SDK.

  • Wave themes: B2B multi-outlet, cross-entity fulfillment, modernized Store Commerce UX
  • Credit management + attribute pricing + multi-outlet B2B close long-standing wholesale gaps
  • PPAC-based CSU/environment management aligns Commerce ops with Power Platform governance
  • Confirm each feature's enablement status in your environment before basing a go-live on it
Selected Dynamics 365 Commerce features from the 2026 release wave 1 plan (timelines may change). Source: Microsoft Learn release plan.
AreaFeatureTarget GA (plan)
B2B / digitalMulti-outlet B2B ordering via CSU; multi-outlet B2B storefront accessSep 2026
Orders / creditCredit management for Commerce ordersJun 30, 2026
PricingAttribute-based mass price updatesJun 5, 2026
FulfillmentCross-legal-entity DOM and intercompany automationJun 2026
PaymentsAsync payments; pay-by-link for call centerSep 2026
OpsDeploy/manage Commerce via Power Platform admin centerSep 2026
Store CommerceReact/Fluent UI journeys; multi-language self-checkoutApr 13, 2026
Store CommerceContextual app switching; nearest payment terminal; return controlsJun 2026
12Deployment and fit

Deployment topology, implementation, and who it fits

Retailers are distributed organizations whose business topography maps naturally to a hub-and-spoke model, and Commerce supports it directly. Head-office capabilities act as the hub, and the distributed channel components (the spokes) are the Commerce Scale Units, which represent physical isolation and an atomic unit of update. A CSU is available both as a software-as-a-service component that Microsoft manages (Commerce Scale Unit in the Cloud) and as a self-managed component you can deploy locally (self-hosted). A single environment can mix cloud and self-hosted CSUs, so an organization can tune its operational overhead on a store-by-store basis — for example, deploying a self-hosted CSU in a store with unreliable connectivity while keeping cloud CSUs everywhere else.

Multiple cloud CSUs can be associated with each environment, each independently serviced and updated, and each able to serve one or more channels across one or more legal entities. Each CSU can be deployed to any supported Azure region, and multiple CSUs can sit in the same region. The independent nature of each CSU allows for phased rollout of updates across a collection of channels — a retailer can update one region's stores ahead of another, reducing rollout risk. This granularity is one reason Commerce scales to enterprise retail estates that a single-tenant storefront cannot.

Licensing is multi-layered and should not be guessed from a single list price. As published on Microsoft's Commerce pricing page (USD, paid yearly, subject to change and regional variance): Dynamics 365 Commerce is listed at $210 per user per month for core omnichannel retail operations, and the e-Commerce add-on starts at $4,000 per tenant per month. Full estates also price Commerce Scale Unit cloud capacity (device/ops entitlements by tier), Operations device licences for POS terminals, and any attach licences when users already hold a qualifying Dynamics 365 base app. Base-vs-attach rules still apply: when a user needs multiple Dynamics 365 apps, the highest-priced app is the base and others can attach at reduced rates — Commerce is typically among the higher-priced apps, so plan base assignment carefully. For a full TCO breakdown, read our Dynamics 365 Commerce pricing guide; treat the figures here as orientation, not a quote.

On fit, Commerce is positioned for midsized to large-enterprise customers and partners, and its architecture rewards that profile. It fits organizations with multiple physical stores, a serious online channel, call-center operations, or complex assortments and promotions that benefit from a single merchandising engine; and it fits organizations already invested in the Dynamics 365 finance-and-operations family, where the attach licensing model and the shared platform make Commerce an extension of the existing ERP rather than a net-new purchase. It is generally heavier to implement than a lightweight SaaS storefront, because POS hardware, e-commerce theming, payment and tax engines, and ERP integration all converge in one project. For the SME-fit decision specifically — whether Commerce, Business Central plus a webstore, or Odoo is the right call — read our Commerce decision guide, and for the full licensing and total-cost-of-ownership breakdown, read our Dynamics 365 Commerce pricing guide. To take Flectic's retail and e-commerce delivery into account, see our retail and e-commerce solutions.

Operational tooling is also moving closer to the broader Power Platform estate. The 2026 release wave 1 plans deployment and management of Dynamics 365 Commerce environments (including Commerce Scale Unit) through the Power Platform admin center (preview from May 2026, GA targeted September 2026), which reduces the split-brain between LCS-centric F&O operations and Power Platform governance for mixed estates. Asynchronous payments for commerce orders and pay-by-link support for call-center orders (both targeting general availability in September 2026 after earlier previews) further modernize capture for remote and assisted channels.

  • Hub-and-spoke topology: headquarters is the hub; Commerce Scale Units are the spokes (physical isolation + atomic update unit)
  • CSU is available as Microsoft-managed cloud SaaS, self-hosted edge, or both in one environment — tuned per store for connectivity
  • Multiple cloud CSUs per environment, each independently serviced and updated, enabling phased regional rollouts
  • Fits midsized-to-large retailers with multi-store, online, call-center, or complex merchandising needs — and organizations already on Dynamics 365 F&O
  • Heavier to implement than a SaaS storefront (POS hardware, theming, payments, tax, ERP integration converge); see the pricing guide for TCO and the decision guide for SME fit
  • Public list orientation (USD, yearly): Commerce ~$210/user/month; e-Commerce add-on from ~$4,000/tenant/month — confirm current Product Terms
  • Cloud CSU required for e-commerce channels and DOM; self-hosted supports POS, call center, merchandising, pricing, loyalty
  • 2026 wave 1: manage Commerce/CSU via Power Platform admin center; async payments and pay-by-link for call center
Cloud-hosted vs self-hosted Commerce Scale Unit — capability matrix. Sources: Microsoft Learn Commerce architecture; DOM documentation.
CapabilityCloud-hosted CSUSelf-hosted CSU
Store Commerce / POSYesYes
Call center, merchandising, pricing, loyaltyYesYes
Online store / e-commerce channelsYesNo
Distributed order management (DOM)YesNo
Microsoft-managed updatesYes (per CSU)Self-managed monitoring and updates
Offline / poor connectivity edgeHybrid with Store Commerce in-app topologyDesigned for in-store edge reliability
Typical fitFull omnichannel + DOM retailersStores with unreliable WAN; POS-first estates
FAQ

Frequently asked questions

What is Dynamics 365 Commerce?

Dynamics 365 Commerce is Microsoft's omnichannel commerce platform for midsized to large-enterprise retailers and B2B organizations. It is built as a composable, API-driven platform whose business logic runs in a headless commerce engine (hosted in the Commerce Scale Unit) that powers in-store point of sale, the e-commerce storefront, the call center, and any partner-built channel from one set of logic — so pricing, inventory, promotions, and orders stay consistent across every channel.

What is the Commerce Scale Unit (CSU)?

The Commerce Scale Unit is the component that hosts Dynamics 365 Commerce's headless commerce engine and serves as the central integration point for all commerce business logic. It is built on a portable architecture and is available as a Microsoft-managed cloud SaaS component, a self-hosted component you deploy locally (in-store, for poor connectivity), or both in one environment. It exposes logic through the Commerce Runtime and Retail Server, and the current generation (CSU Core) is built on ASP.NET Core and .NET 6 for higher API performance.

What is CSU Core and how is it different from the older CSU?

CSU Core is the next-generation, high-performance platform that hosts the headless commerce engine. It is built using ASP.NET Core and runs on .NET 6, giving it better API performance than the older .NET Framework-based CSU while remaining backward compatible with extensions built using the Commerce SDK and .NET Standard 2.0. New deployments have used CSU Core by default since Commerce 10.0.22, and from version 10.0.38 the legacy CSU runtime can no longer be selected for new CSUs — extensions built on the legacy Retail SDK must be migrated to the Commerce SDK.

How does distributed order management (DOM) work in Dynamics 365 Commerce?

DOM is the order fulfillment optimization engine inside Commerce. It uses mixed integer programming (MIP) and predictive analysis models to optimize fulfillment at both the batch and individual-order level, using the distance between fulfillment sources and destinations, cost factors you define as optimization objectives, and rules you define as constraints (such as inventory at fulfillment nodes). Multiple profiles let you run different optimization strategies per business or consumer segment. DOM is a cloud-channel capability and is not available on self-hosted (on-premises) CSU deployments.

Does Dynamics 365 Commerce support buy-online-pick-up-in-store (BOPIS) and ship-from-store?

Yes. BOPIS, ship-to-home, ship-from-store, and endless aisle are all first-class flows built on Commerce customer orders and fulfillment groups. A customer order captures a sale for later pickup, pickup at a different location, or shipment, and fulfillment groups define which stores and warehouses can fulfill — and from Commerce 10.0.12, whether each location is for shipping, pickup, or both. The POS exposes dedicated operations (Ship all/selected, Pick up all/selected, Carry out all/selected) so an associate can split a single transaction across fulfillment models at the register.

What is the Store Commerce app, and what replaced Modern POS?

The Store Commerce app is Commerce's next-generation POS, available from Commerce version 10.0.25. It unifies the former Modern POS (MPOS) and Cloud POS (now Store Commerce for web) into a single application. The Windows version is a WPF shell that uses the Microsoft Edge WebView2 (Chromium) engine for better rendering performance than MPOS's UWP framework. It supports an in-app topology with offline mode (local SQL Server + embedded Commerce Runtime) and a hybrid topology. Microsoft deprecated MPOS and the Retail hybrid apps in October 2023, so Store Commerce is the path for new deployments.

Can I build my own storefront or app on Dynamics 365 Commerce?

Yes. Because the headless commerce engine exposes its logic through the Retail Server APIs, partners and customers can build custom front-ends — a mobile app, a marketplace integration, or a B2B self-service portal — and reuse all of Commerce's pricing, inventory, promotions, and order logic. The native e-commerce storefront (React.js with Site Builder) is one such consumer; a custom front-end is another. Both talk to the same engine, so channel parity is preserved by architecture.

Is Dynamics 365 Commerce suitable for small businesses?

Microsoft positions Commerce for midsized to large-enterprise retailers and B2B organizations, and its architecture — the Commerce Scale Unit, the headless engine, and enterprise distributed order management — rewards that profile. For smaller retailers, a lighter path such as Business Central plus a connected webstore, or Odoo eCommerce, is often the better fit. For the specific SME-fit decision, read our Commerce decision guide; for licensing and total cost of ownership, read our Dynamics 365 Commerce pricing guide.

What is new in Dynamics 365 Commerce in 2026?

The 2026 release wave 1 (April–September 2026) adds multi-outlet B2B ordering via CSU, multi-outlet B2B storefront access, credit management for Commerce orders, attribute-based mass pricing, cross-legal-entity DOM with intercompany automation, asynchronous payments and pay-by-link for call center, Power Platform admin center management of Commerce environments, and a broad Store Commerce modernization (React/Fluent UI journeys, multi-language self-checkout, inline line actions, nearest payment terminal, contextual external-app switching). Confirm actual general availability in Microsoft's release plan for your region before planning go-lives.

What is the difference between a cloud-hosted and a self-hosted Commerce Scale Unit?

Both host the headless commerce engine and can power POS, call center, merchandising, pricing, and loyalty. A cloud-hosted CSU is Microsoft-managed SaaS, supports online store/e-commerce channels and distributed order management (DOM), and receives independent updates per CSU. A self-hosted CSU runs at the edge (typically in-store) for poor-connectivity scenarios and is self-managed for monitoring and updates; it does not support e-commerce channels or DOM. Environments can mix both topologies store by store.

How much does Dynamics 365 Commerce cost?

Microsoft's public Commerce pricing page lists Dynamics 365 Commerce at $210 per user per month (paid yearly, USD) for core omnichannel retail operations, and the e-Commerce add-on from $4,000 per tenant per month (paid yearly). Full total cost of ownership also includes Commerce Scale Unit cloud capacity tiers, Operations device licences for POS, any attach licences for multi-app users, implementation, hardware, payments, and tax engines. Prices change by region and agreement — use our Dynamics 365 Commerce pricing guide for TCO structure and confirm current Product Terms with Microsoft or your partner.

Can Dynamics 365 Commerce power a custom storefront or AI agent without using Microsoft's React site?

Yes. The headless engine in the CSU exposes Retail Server APIs that any channel can consume — custom storefronts, marketplaces, mobile apps, Dataverse apps, and (in preview) agentic clients via the Commerce MCP server. You reuse pricing, inventory, promotions, and order logic instead of rebuilding them. The native React storefront plus Site Builder is one consumer of that engine, not the only one. Separate the front-end choice from the commerce-engine choice when you design the estate.

Does Dynamics 365 Commerce support B2B multi-outlet ordering?

Yes — and 2026 wave 1 deepens it. Multi-outlet B2B ordering via CSU and streamlined multi-outlet access for B2B web storefronts (preview from April 2026, GA targeted September 2026) address buyers who order for multiple outlets with distinct catalogs and policies. Credit management on Commerce orders (GA June 2026) adds cash-flow protection at capture. Combined with outlet-specific catalogs and unified sign-in themes in the wave messaging, Commerce is intentionally expanding beyond B2C-first digital retail into wholesale-grade omnichannel B2B.

Sources & methodology

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Every pricing figure and statistic on this page is traced to a primary or vendor source with a verification date. Where partner pages are cited, their platform bias is disclosed in-line.

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Related services & solutions

Scoping a Dynamics 365 Commerce rollout?

Flectic implements Microsoft Dynamics 365 and Odoo for retailers across Canada, the UK, and the US. We map your channels, store estate, and fulfillment model to the right Commerce topology — cloud vs self-hosted CSU, Store Commerce vs Store Commerce for web, native e-commerce vs a connected front-end, and DOM profiles tuned to your service-level objectives — before anyone signs a licence. Book an ERP Readiness Call and we will give you a grounded architectural fit assessment, even if the honest answer is a lighter path.

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