As everyone knows that ecommerce websites play an extremely important role in the business world, it allows you to sell your products and your services to online customers all over the world. It makes your services and products available 24-7 so that your customers can get good exposure to your business anytime they want and since almost everyone shops online, you can boost up the revenue by buying an ecommerce solution.
But what’s more important to know is the cost of building your eCommerce website as it helps you calculate the investment you are going to put into the online business you are about to start.
The real challenge is that there are so many factors involved in an ecommerce website which definitely affect the overall cost of your business.
The answer to the question of How To Calculate the Real Cost Of Buying An Ecommerce Solution is, unfortunately, not that simple, there are many different factors you should consider when you’re calculating the Total Cost Of an eCommerce website like licensing, developer rate, project scope, integration, apps/tools, payment gateways.
The price of each factor depends on the size of your business and obviously on the vendor. And also, the cost differs depending on whether you choose a point solution that only allows you to manage ecommerce or all-in-one-solution which bridges the gap between ecommerce and other business keys like Inventory Management, Order Management, Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM). People who have no idea about the cost of these factors can easily end up overspending,
But hey, don’t need to worry about it because we are here to help you and guide you on how to calculate the cost of the ecommerce websites and ways to avoid overspending.
So, without further ado, let’s get started on how to calculate the real cost of buying an ecommerce solution!
This is one of the most obvious costs. For open-source ecommerce systems, it doesn’t seem to carry any costs but the development and hosting costs can go really high depending upon your business needs and future goals. Whereas for hosted solutions available, generally, the price for only basic ecommerce feature starts from $29 per month and so on with additional costs for upgraded options, advanced support, private servers, etc.
Some hosted ecommerce solutions will quote you license fees depending upon your monthly revenue. Therefore make sure you crunch the numbers because it is essential for a realistic estimate of licensing fees.
Developing a professional ecommerce website for your small business by hiring an entry-level programmer can start as a minimum of $5000 and could go as high as $20,000+ if you hire a small agency. And it can possibly increase depending on what you want, the size and complexity of your business, etc.
Luckily, we’ve got good news for you, now you can create your own website and can manage your inventory with just one login. Wrkmash is the only eCommerce website builder currently available in the market that offers an all-in-one system for managing your entire business. Don’t believe us? Start your 14-day trial today, it’s FREE!
2) IMPLEMENTATION AND SUPPORT
In the world of business software, implementation is one of the scariest words because it can be very costly and could go also wrong if not planned accordingly so, walking through the project is vitally important when it is about to begin, and don’t forget to set the clear expectations around the price.
However, with all-in-one-software like Wrkmash, you don’t have to worry anything about implementation since the software fully runs on the secure cloud that you can access from anywhere and anytime!
If we talk about support, ecommerce solutions often come with free basic customer service. But every business, whether it is huge or small one, requires complete and comprehensive support. It is not a bad idea if you are planning to spend a few hundred dollars extra annually on receiving priority support but do look out if there’s any real difference between the basic and the priority support.
If we talk about today’s business world, integration along with automation is indeed the key to a successful business process. An ecommerce website that doesn’t integrate with other core business systems is not worthy of your time and money.
WHY DO YOU NEED AN ECOMMERCE SOLUTION INTEGRATED WITH OTHER BUSINESS PROCESSES?
The answer is that your business needs ecommerce solution integration to avoid manual entries as it allows you to perform accurate reporting and to maintain the operational activity smoothly.
Ecommerce integration providers connect the ecommerce software with each system and charge a hefty fee starting at a minimum of somewhere between $10k to $15k depending upon the nature of integration. Similarly, if you go with a ready to use middleware or connector, it would still cost you a base license fee of $5000 excluding annual renewal fees and implementation fees.
It’s not recommended to stick to the idea that your business can run on a single software in the long run too. You would probably be using multiple other software like accounting, payroll, and inventory, etc and it requires integration so don’t forget to look for this factor before buying an ecommerce solution.
4) APPS AND EXTENSIONS
Apps and extensions allow the software to perform more efficiently and enhance functionality. Professional and leading ecommerce solutions providers usually have their personal extension or module marketplaces with lots of amazing extensions that help to extend the functionality of your website.
Nowadays, almost every business would need a few additional extensions to add some extra value to the backend or customer-facing side of the website. Well, some of the extensions are free of cost but if you are thinking of buying upgraded functionality or extensions (which is surely a good idea for your business), it can cost you hundreds of dollars per month.
5) PAYMENT GATEWAYS
Buying an eCommerce solution includes making lots of difficult choices and payment gateway is one of them.
If you don’t know what a payment gateway actually is, it’s simply a merchant service that bridges the gap between your ecommerce website and the bank to receives your buyer’s payment on your behalf and transfer it to your actual bank account. This payment gateway could be a third-party service or could be offered by your bank too.
It is really important to choose a good payment gateway and making sure it integrates with your preferred ecommerce solution so that you can accept payments from your customers all over the world with the widest variety of payment options.
Payment gateways usually take a set percentage on every single sale (mostly ~3% + 0.3 cents) but large-volume sellers can negotiate on lower rates. Look for the perfect payment gateway that supports a variety of payment methods and amazing security standards at the most affordable rates.
To calculate the real cost of buying an ecommerce solution you should go over all the above-mentioned factors before making your final decision.
Most business owners can easily end up overspending if they don’t have any clear action plan. And if you don’t have a clear idea and all the information on how to calculate the real cost of buying an ecommerce solution, you too would end up overspending. Since we’ve gathered all the essential information that sums up the actual cost of buying an ecommerce website, it’s better to analyze details while also understanding that the cost may increase over time depending on the complexity and the annual revenue of your business.
In case you want an all-in-one business solution that has an ecommerce website builder with fully integrated software for accounting, inventory and payment gateway, you should try Wrkmash. Click here to start your free, 14-day trial.