How To Pick An Ecommerce Platform
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This document provides an overview of factors to consider when selecting an ecommerce platform. It discusses the growing US ecommerce market and types of platforms available. Key considerations include the products being sold, fulfillment needs, existing audience and marketing strategy, and metrics for success. The document advises matching needs to the appropriate platform and total cost of ownership.
How To Pick An Ecommerce Platform
- 1. How To Pick An Ecommerce Platform Internet Merchants Association Las Vegas, Nevada March 26, 2012
- 2. History ? Based in San Diego, California ? Founded in 1995 ? Data Centers in California, Florida and Georgia ? Focus on scalability, rapid deployment and ease of use ºÝºÝߣ 2
- 3. Part 1 ¨C The Ecommerce Universe ºÝºÝߣ 3
- 4. A Growing US Market (+12% in 2011) of $218 Billion US Online Retail Forecast $279 $259 $240 $218 $197 $176 (in billions) $157 2009 2010 2011 2012 2013 2014 2015 Revenue $157 $176 $197 $218 $240 $259 $279 % Change 11% 13% 12% 10% 10% 8% 8% ºÝºÝߣ 4
- 5. Mobile Commerce Fastest Growing Segment (+50% in 2011) $31 $25 (in billions) $19 $14 $10 $6 $3 2010 2011 2012 2013 2014 2015 2016 Revenue $3 $6 $10 $14 $19 $25 $31 % of Ecommerce 1% 2% 3% 4% 5% 6% 7% ºÝºÝߣ 5
- 6. Ecommerce Software Investment Remains Strong We already have a project underway 11% In the next 36 months 4% In the next 24 months 6% In the next 18 months We are not planning to 6% replatform in the foreseeable future 52% In the next 12 months 21% ? Forrester B2C Ecommerce Platform Wave Report Q4 2010 ? Base: 291 US online retail professionals ºÝºÝߣ 6
- 7. Types of Ecommerce Platforms ? SaaS/Hosted ? Multi-Tenant (Yahoo, ProStores, Amazon Webstores) ? Silo (Miva Merchant, Pinnacle Cart) ? Distributed/Downloaded ? Open Source (OS Commerce, ZenCart, Magento) ? SMB (WordPress Carts) ? Enterprise (Oracle ATG, IBM WebSphere) ºÝºÝߣ 7
- 8. Cost of Development ? Small/Home Business Software as a Service ? Do It Yourself Template Driven ¨C 40 to 80 Hours ? Do It For You Template Driven - $500 - $2,500 ? Open Source ? Do It Yourself Template Driven - $100 - $500 and 100 ¨C 500 Hours ? Do It For You Template Driven - $5,000 - $10,000 ? Enterprise ? Licensing Begins Around $20,000/year ? Total Packages $50,000 - $2,000,000 ºÝºÝߣ 8
- 11. Most Expensive Site Of All Time ºÝºÝߣ 11
- 12. Cost to Operate (Beware of Hidden Costs) ? Hosting ? Flat Monthly Fee ($30 - $500) ? Percentage of Sales (.5 ¨C 30%) ? PCI/Regulatory ? Merchant Banks PCI Fees ? Automation/Maintenance ? How Much Human Time Does It Actually Take? ºÝºÝߣ 12
- 13. Part 2 ¨C Your Business Needs ºÝºÝߣ 13
- 14. What Are You Selling Online? ? Digital Goods ? Downloadable Software ? Music ? Video Content ? Games ? Physical Goods ? Are you shipping directly? ? Are you using a fulfillment center? ºÝºÝߣ 14
- 15. Fulfillment ? Shipping Fees/Logistics ? What Will It Cost To Pick/Pack/Ship? ? How Will You Charge Your Customer? ? Secure Downloads ? Preventing Piracy ? Keeping Track Of Usage ? Digital Rights Management ºÝºÝߣ 15
- 16. Marketing ¨C Do You Have A Built In Audience? ? Your Own Brand ? You Don¡¯t Have To Be A Household Name ? Media Exposure ? Today Show ? Good Morning America ? QVC/HSN ? Distribution Channels ? Traditional Retail ? OEM Partnerships ºÝºÝߣ 16
- 17. Your Own Brand ºÝºÝߣ 17
- 20. Marketing ¨C In Demand With No Exposure? ? You have a great price on highly sought after product ? You have an exclusive on highly sought after product ºÝºÝߣ 20
- 21. Marketing ¨C In Demand With No Exposure? ºÝºÝߣ 21
- 22. Marketing ¨C In Demand With No Exposure? ºÝºÝߣ 22
- 23. Marketing ¨C Does Your Product Need To Be ¡°Discovered¡±? ? Etsy ? Online Communities ? Groupon ? eBay ? Amazon ºÝºÝߣ 23
- 26. How Will You Know You¡¯re Succeeding? ? Analytics ? Google Analytics ? KISS Metrics ? Crazy Egg ? Reporting ? Platform Reporting ? QuickBooks/Accounting System ºÝºÝߣ 26
- 29. Part 3 ¨C Aligning Your Needs With The Market ºÝºÝߣ 29
- 30. What Do I Do Now? ? Pick A Platform That Matches Your Needs ? Calculate Total Cost Of Ownership ? Understand Your Ongoing Maintenance/Development Costs ? If You¡¯re Small ¨C Get Started Now ºÝºÝߣ 30
- 31. Ecommerce Marketplace Websphere ATG completeness of functionality NetSuite MIVA MERCHANT Magento Volusion Shopify Yahoo Store Amazon Ebay Paypal pricing ºÝºÝߣ 31
- 32. Thank You Contact Information: (800) 608-MIVA www.mivamerchant.com Rick Wilson rwilson@mivamerchant.com ºÝºÝߣ 32