Choosing An eCommerce Platform?

What does 'time to market' mean?

‘Time to market’ refers to the time it takes from choosing your eCommerce solution to the point of full implementation of the platform into your online business. Depending on what eCommerce platform you choose, time to market can range from a few weeks right up to 6+ months.

What is 'implementation cost'?

The implementation cost of your eCommerce platform is the total cost of getting a platform integrated into your business. This includes setup costs, license fees, subscription plans, maintenance fees, migration fees, hosting fees, and development and design fees. Implementation costs vary for each eCommerce solution depending on what is required by the software itself, as well as any optional elements or projects brands want to introduce at the implementation stage. Costs range from €18,000 right up to over €1 million depending on the eCommerce solution.

What is 'revenue share'?

Revenue sharing is an eCommerce pricing model whereby your chosen eCommerce provider is entitled to an agreed percentage of sales revenue from your online store. Revenue share percentages vary greatly depending on the eCommerce platform you choose to implement. Some eCommerce solutions don't have a revenue-sharing model but will have higher implementation costs as a result. Some eCommerce platforms will have different revenue share percentages based on the size and income of your business. The contract agreed with your eCommerce solution provider may involve a variable revenue share percentage that changes over time. Revenue share rates range from 0.5% to 10% depending on the eCommerce platform you use. 

What is a 'system integrator'?

Just as a general contractor would coordinate all aspects of getting a house built, a system integrator is responsible for connecting all relevant systems needed to create an end to end eCommerce solution for your business. This typically means integrating a brand's CRM, ERP, billing system, shipping system, fulfilment system, and more. Generally, system integrators are a separate entity from your eCommerce solution provider, which can result in higher implementation costs for retailers. However, some platforms either do not need a system integrator, or the service is provided in-house. 

What is 'eCommerce Architecture'?

As far as eCommerce terminology goes ‘eCommerce Architecture’ is at the core of all platforms. Architecture refers to how an eCommerce platform is composed and where it lives – be it on-premise, or in ‘the cloud'.

What does 'cloud-based' mean? 

A cloud-based eCommerce platform is one whereby all data and programs are stored online, meaning that users can access the software anywhere on any device. Cloud-based software also tends to be agile in nature, lending itself seamlessly to companies as they develop and scale their offering over time.

What is 'on-premise software'?

An on-premise eCommerce platform is one that is installed and runs on the physical premises of an organisation, which requires web servers in order to run. On-premise software typically cannot be accessed from any device or from remote locations. The software must be managed by the company's in-house IT team and integrate with existing hardware systems.

What is a 'programming language'?

A programming language is the particular set of grammatical rules used by developers to build an eCommerce platform. Different eCommerce solution providers use various programming languages (e.g css, html, PHP, c+, c++, javascript, etc.) A programming language is important to consider when choosing a suitable eCommerce platform because it needs to have the capacity of handling all the functions and aspects required for your eCommerce store.

What is 'ERP integration'?

ERP stands for 'Enterprise Resource Planning' and is an integration that links an eCommerce site with a company's back-end accounting and inventory systems. Not only does an ERP integration connect these systems together, but it also enables them to speak to each other, so that information only needs to be entered into any system once, and the others will sync automatically. 

What are one click integrations?

Most eCommerce solutions enable users to 'plug in' specific third-party applications into their platform across various categories such as digital marketing, logistics, payment gateways, and more. One-click integrations are those that do not require any development work to integrate into your online store - it is just a simple case of connecting the application to the eCommerce platform in question.

Platform Features

One of the most common eCommerce terminologies regarding Platform Features - 'full stack of technology' refers to eCommerce platforms that have the features and functionality to power all aspects of an online business built directly into the software (for example omnichannel, online marketplaces, payment gateways). Many eCommerce solutions rely on third-party applications to bolster the built-in features on their platforms. However, if an eCommerce platform has a 'full stack of technology', it means that users have everything they need within the platform to manage every aspect of the retail journey.

What does 'omnichannel' mean in eCommerce? 

Omnichannel is the synchronisation of digital, mobile, and physical eCommerce in terms of order management and inventory optimisation. The purpose of implementing omnichannel into your eCommerce strategy is to create a seamless customer experience so that shoppers have various ways to order products, receive, and return them. By implementing an omnichannel experience, all stock is synchronised, meaning that physical stores become their own warehouses.

What are 'online marketplaces'? 

Online marketplaces are websites whereby online retailers can sell their products alongside numerous other merchants, and transactions are handled by the marketplace operator. While category-driven marketplaces sell products that belong to one specific category (e.g. Farfetch UK, AirBnB), pure-play marketplaces sell a range of products across all categories (e.g. Amazon, eBay, Alibaba, JD.com).

What are 'additional services'? 

Additional services are available to online retailers can utilise in order to strengthen their eCommerce offering if they don't have resources available within their own company. If a retailer chooses to use an additional service from their eCommerce solution provider, it means that a specific in-house team will look after the implementation of specific projects (for example SEO migration), or manage one or many aspects of running an online business. Value-added services include store management, digital marketing, SEO, project implementation, strategic consultancy, etc.