Recent studies indicate the benefits of migrating to eCommerce SaaS
An eCommerce site is only as robust as the platform that supports it. And as any online retailer knows, the cost of ownership for the latest and greatest eCommerce software doesn’t come cheap. In addition to the initial price tag, online merchants are hit with various charges along the way, such as those required to upgrade software and purchase additional licensing.
When a website reaches a certain amount of traffic, it’s normally cause for celebration. However, according to an article published by Website Magazine, 67 percent of retailers using a licensed on-premise solution report that they are contractually obligated to acquire additional licenses when reaching a certain threshold of online traffic.
Allison Howen, the editor behind the Website Magazine article, also shared that “78 percent of online retailers report that their vendor contract restricts them from using the technology into new markets. This means that many eCommerce platforms are restricting online stores' growth initiatives, such as international and multichannel expansion.”
Beyond the cost to upgrade or purchase new licenses, there is also the cost of hiring and employing experienced staff to run the eCommerce software. Providing around-the-clock help-desk support for customers must also be factored into the equation. Add in hardware and suddenly the total cost of ownership is through the roof. In fact, a Demandware survey revealed that 43 percent of all eCommerce platforms end up having a higher total cost of ownership than what companies initially planned for.
To battle the extra expense, etailers will inevitably and sometimes unknowingly sacrifice reliability as well as new features. Howan explained that “due to the complexities associated with upgrading an eCommerce platform, 39 percent of retailers only upgrade their platform to the latest version once every two to three years. This could be attributed to the long amount of time that it typically takes to complete an upgrade, but regardless, it means that these retailers risk falling behind their competitors by not staying up-to-date with basic functionality and usability features.”
By migrating to eCommerce as a SaaS model, not only can unexpected costs be mitigated, but online retailers can also be confident in the fact that their sites are running the most up-to-date versions and in a way that makes for great customer experiences.
At NetSphere Strategies, we have a team of fully trained and certified staff. We understand the ins and outs of today’s cutting-edge eCommerce software and are dedicated to servicing it 24/7, allowing you to focus on other avenues of growth for your business. So contact us, and toss uncertainty out of the cost equation for good.
Trackback URL for this blog entry.