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How To Pick An Ecommerce PlatformThinking about expanding your business to capture more sales on the web? Building or redesigning a site is painless if you know what to look for when choosing a shopping cart and host for your ecommerce site. Join Rick Wilson, President of Miva Merchant as he shares the inside info on what you need to know about choosing a shopping cart and host for your site.
Citation preview
How To Pick An Ecommerce Platform
Internet Merchants AssociationLas Vegas, NevadaMarch 26, 2012
History
Slide 2
•Based in San Diego, California •Founded in 1995•Data Centers in California, Florida and Georgia•Focus on scalability, rapid deployment and ease of use
Slide 3
Part 1 – The Ecommerce Universe
A Growing US Market (+12% in 2011) of $218 Billion
Slide 4
2009 2010 2011 2012 2013 2014 2015
Revenue $157 $176 $197 $218 $240 $259 $279
% Change 0.11 0.13 0.12 0.1 0.1 0.08 0.08
$157 $176
$197 $218
$240 $259
$279 US Online Retail Forecast
(in
bill
ion
s)
Mobile Commerce Fastest Growing Segment (+50% in 2011)
Slide 5
2010 2011 2012 2013 2014 2015 2016
Revenue $3 $6 $10 $14 $19 $25 $31
% of Ecommerce 0.01 0.02 0.03 0.04 0.05 0.06 0.07
$3 $6
$10
$14
$19
$25
$31
(in
bill
ion
s)
Ecommerce Software Investment Remains Strong
We are not planning to replat-form in the foreseeable future
52%
In the next 12 months21%
In the next 18 months6%
In the next 24 months6%
In the next 36 months4%
We already have a project underway11%
Slide 6
• Forrester B2C Ecommerce Platform Wave Report Q4 2010• Base: 291 US online retail professionals
Types of Ecommerce Platforms
Slide 7
•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)
Cost of Development
Slide 8
•Small/Home Business Software as a Service• Do It Yourself Template Driven – 40 to 80 Hours• Do It For You Template Driven - $500 - $2,500
•Open Source• Do It Yourself Template Driven - $100 - $500 and 100 – 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
Template Site
Slide 9
Custom Site
Slide 10
Most Expensive Site Of All Time
Slide 11
Cost to Operate (Beware of Hidden Costs)
Slide 12
•Hosting• Flat Monthly Fee ($30 - $500)• Percentage of Sales (.5 – 30%)
•PCI/Regulatory• Merchant Banks PCI Fees
•Automation/Maintenance• How Much Human Time Does It Actually Take?
Slide 13
Part 2 – Your Business Needs
What Are You Selling Online?
Slide 14
•Digital Goods• Downloadable Software• Music• Video Content• Games
•Physical Goods• Are you shipping directly?• Are you using a fulfillment center?
Fulfillment
Slide 15
•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
Marketing – Do You Have A Built In Audience?
Slide 16
•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
Your Own Brand
Slide 17
Media Exposure
Slide 18
Distribution Channels
Slide 19
Marketing – In Demand With No Exposure?
Slide 20
•You have a great price on highly sought after product
•You have an exclusive on highly sought after product
Marketing – In Demand With No Exposure?
Slide 21
Marketing – In Demand With No Exposure?
Slide 22
Marketing – Does Your Product Need To Be “Discovered”?
Slide 23
•Etsy•Online Communities•Groupon• eBay•Amazon
www.etsy.com
Slide 24
Deals Sites
Slide 25
How Will You Know You’re Succeeding?
Slide 26
•Analytics• Google Analytics• KISS Metrics• Crazy Egg
•Reporting• Platform Reporting• QuickBooks/Accounting System
Google Analytics
Slide 27
Platform Reporting
Slide 28
Slide 29
Part 3 – Aligning Your Needs With The Market
What Do I Do Now?
Slide 30
•Pick A Platform That Matches Your Needs
•Calculate Total Cost Of Ownership
•Understand Your Ongoing Maintenance/Development Costs
• If You’re Small – Get Started Now
Ecommerce Marketplace
Slide 31
com
ple
ten
ess
of
fun
ctio
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pricing
MIVA MERCHANT
Yahoo Store
Ebay
Amazon
Paypal
Volusion
Magento
Shopify
ATGWebsphere
NetSuite