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Top 2024 resources on costs

Best costs resource in 2024.
Learn more about costs to improve your e-commerce strategy.

  • 12 Ways to Lower Inventory Costs - U.S. retailers are reportedly sitting on about $1.43 in inventory for every $1 of sales. Decreasing inventory costs should therefore be a priority for all merchants. In my experience, there are many options for reducing inventory costs.  In this post, I'll review 12 of them.
    Topics: product, unique, shipping, lower, costs, stock, manufacturers, warehouse, sell, quantities, ways, inventory, products.
  • 15 Effective Ways to Cut Costs in Business - When I first moved out of my parent's house, my spending was out of control. I bought take-out regularly, new clothes often, and fun products frequently. However, I quickly realized that I was spending too much money on unnecessary things.
    Topics: need, consider, costs, employees, products, effective, youre, save, dont, money, business, cut, ways.
  • 3 Inventory KPIs to Drive Ecommerce Profits - Basic inventory management involves tracking quantities by channel, location, and return rates. Key performance indicators, however, are far more critical for driving profits. In this post, I'll address three essential inventory KPIs: turnover, carrying costs, and opportunity costs.
    Topics: pricing, costs, cost, kpi, sold, kpis, carrying, better, drive, inventory, products, turnover, ecommerce, profits.
  • 3 Ways to Reduce Shipping Costs - Lowering shipping costs is a surefire way to improve profits. Same-day delivery, free shipping, standard transit, click-and-collect — all are candidates for cost reductions. 
    Topics: costs, package, items, weight, lightweight, materials, rates, volume, reduce, shipping, ways, size.
  • 3 Ways to Sell Your Services Virtually Right Now With No Upfront Costs - Pivot your offerings and add value now to drum up cash.
    Topics: members, costs, help, upfront, business, support, ways, virtually, right, value, program, group, product, virtual, sell, services, live.
  • - Nearly 40 percent of online shops in Europe uses so-called ‘dark patterns’. These are ways of encouraging customers into making a purchase under false pretenses, such as hiding costs and false countdowns. These are some of the results from research by the European Commission. The study included 399 online stores…
    Topics: shops, false, customers, european, dark, consumer, online, mislead, information, commission, costs.
  • 5 On-demand Warehousing, Fulfillment Providers - On-demand warehousing and fulfillment providers act as middlemen — a kind of Airbnb for logistics. Merchants search on a provider's platform for available warehouse space in the location they want. It's one way for ecommerce sellers to achieve faster delivery.
    Topics: space, inventory, warehousing, delivery, fulfillment, ondemand, merchants, warehouse, warehouses, costs, providers.
  • 5 Top Reasons Ecommerce Carts Are Abandoned and How to Give Shoppers Checkout Confidence - If there’s one silver lining about living in an era of wild uncertainty, it’s the surge in digital innovations, including…
    Topics: sezzle, cart, reasons, payment, customers, checkout, shopping, abandonment, deserted, shoppers, pay, costs, carts, ecommerce.
  • 9 Ways to Reduce Customer Acquisition Costs - Customer acquisition costs can make or break an ecommerce business. Efficient spending could produce new, profitable customers. Spending too much could bankrupt the company. Computing the CAC is straightforward: Divide total promotional costs by the number of new customers.
    Topics: cac, customer, content, website, spending, costs, ways, ecommerce, customers, reduce, retention, prospects, acquisition.
  • 9 Ways to Smash Operating Costs in Your Online Business - In this article, we share our own business cost reduction tips that have made a difference for us & will make a difference for your business, too!
    Topics: apps, services, cost, tip, reduce, tools, costs, tool, ways, tips, youre, operating, business, reduction.
  • A Deep Dive Into Magento 2 Features, Pricing & More: Is Migrating Really Worth The Effort? - Magento ecommerce software has been around since the initial version was launched back in 2008. Today, it makes up a…
    Topics: deep, worth, features, platform, cost, development, effort, costs, saas, site, magento, pricing, migrating, really, work, edition, need, dive.
  • - From now on, fashion e-tailer About You only offers free shipping with a minimum order amount of 30 euros. Customers with smaller orders will have to pay 4,90 euros delivery costs. The new fees are already in effect in Germany, but will eventually be introduced in all markets. German fashion…
    Topics: shipping, minimum, zalando, free, delivery, euros, order, introduces, company, fashion, introduced, costs.
  • - About You wants to introduce a minimum order value for free shipping in all of its markets this year. The German fashion platform is hoping to cut costs by having fewer orders with low values in the future. About You is currently testing the minimum order value in some of…
    Topics: minimum, costs, order, limits, delivery, value, shipping, platform, consumer, online, markets, free.
  • Amazon Prime’s dominance is spurring new startup opportunities - Amazon has made two-day shipping the new industry standard -- a standard most competitors can’t meet. Fortunately, some exciting new logistics startups are emerging to help them compete with Amazon.
    Topics: shipping, spurring, twoday, logistics, help, costs, million, delivery, merchants, techcrunch, opportunities, amazon, primes, dominance, startups, startup.
  • Amazon pegs COVID-19 costs at an estimated $4 billion next quarter - Amazon expects to incur $4 billion in COVID-related costs next quarter, an estimate that provides a bellwether for other businesses, large and small, trying to stay operational and control expenses amid the pandemic. The upshot: Amazon is planning for COVID to remain an unwelcome companion through the end of the year with costs higher than […]
    Topics: guidance, quarter, fourth, pegs, amazon, olsavsky, covid19, covid, costs, billion, facilities, techcrunch, related, estimated.
  • - Amazon increased the costs of its multi-channel fulfilment service. The new fees will be in effect for European sellers starting next month. According to the ecommerce giant, the increase is due to rising operational costs due to inflation. Recently, Zalando and eBay also upped seller fees in the face of…
    Topics: rising, seller, size, pricing, sellers, raises, costs, fees, amazon, service, europe, increased, fulfilment.
  • - Ecommerce giant Amazon has decided to skip wholesalers in Europe. Instead, it will focus on sourcing products from brands. By doing so, it wants to ensure low prices for consumers. The online giant has sent an email to European vendors saying that it will focus on sourcing products from brand…
    Topics: skips, europe, amazon, control, low, costs, continue, sourcing, wholesalers, prices, owners, focus.
  • Amazon’s Brand Analytics Lowers Ad Costs, Drives Sales - Amazon's Brand Analytics provides valuable metrics for sellers in the Brand Registry. The metrics include recent advertising changes, such as targeting competitors in ads and search terms. Used strategically, the data can bolster sales. 
    Topics: amazons, search, products, costs, comparison, purchase, lowers, drives, ad, brand, item, sales, specific, analytics, terms, data.
  • - Suppose you've already researched dropshipping and how to get started with it. In that case, you'll likely know it's one of the cheapest, quickest, and easiest ways to launch your own online store because you don't have to store, manufacture,… Continue reading AutoDS Review: A Quick 101 On This Dropshipping Tool
    Topics: products, tool, month, orders, product, import, pricing, dropshipping, review, costs, autods, store, quick.
  • - Preventing returns is a significant focus for online retailers in Germany, Austria, and Switzerland. On average, a return costs them between 5 and 10 euros, with some exceeding this range. Detailed product information is seen by entrepreneurs as the key solution.The German retail institute EHI has conducted research on shipping…
    Topics: product, items, fashion, retailers, returns, shipping, dach, avoiding, priority, costs, return, online, ehi.
  • Blockchain Is Transforming the Retail Supply Chain - Of all the areas in which blockchain applies to commerce, supply chain applications are the furthest along in development and usage. This stems primarily from the database-like features of blockchain combined with traceability and security benefits, which are a natural fit for reducing costs as well as ensuring that a company fulfills its brand promise for product sourcing or quality.
    Topics: projects, large, supply, retailers, blockchain, transforming, financing, costs, retail, products, chain, traceability.
  • - During the year-end holiday season, Belgian postal company Bpost will charge online sellers an extra euro to send packages. The company claims that this is to compensate additional costs during this busy period. It runs from Black Friday, this year on November 24th, until Christmas Day. Very busy in sorting…
    Topics: holiday, peak, euros, businesses, online, yearend, euro, period, busy, company, charges, additional, small, bpost, costs.
  • Can there be too much competition between startups? - Competition is the core of capitalism. Competition between companies lowers prices — on average — and ensures that they are forced to innovate lest they lose their markets to others. Competition between workers ensures that people strive to do their best work lest their jobs go to more qualified or faster or cheaper replacements. Obviously, […]
    Topics: costs, fulfillment, jumias, infrastructure, companies, jumia, startups, competition, markets, platform, ecommerce.
  • - Whether your company is in Canada or you'd like to ship to Canadian customers, it's important to find a Canada-focused fulfillment service that provides fast shipping, high-quality storage environments, and affordable rates. The goal of this article is to identify… Continue reading Canada Fulfillment Services for Brands Inside Canada (And Shipping there)
    Topics: fulfillment, shipping, shiphype, services, costs, inside, products, brands, shipbob, orders, canada, shopify.
  • - Are you confused about DSers’ pricing structure? Maybe you can’t decide whether it’s worth upgrading from the free plan to the paid service, or you’re wondering how much you’ll need to pay to run your business with DSers overall? In… Continue reading DSers Pricing 2024: A Complete Guide to Costs and Fees
    Topics: free, dropshipping, product, fees, costs, complete, pricing, need, store, shipping, plan, products, dsers, guide, suppliers.
  • Delivery costs most important factor when choosing online stores - In a major part of Europe, delivery costs are the most important factor for online shoppers who are choosing which online store they will buy from. This doesn’t necessarily mean online customers are fundamentally unwilling to pay for delivery, but the willingness differs per country. Together with research agency YouGov,… Continue reading
    Topics: payment, shoppers, costs, choosing, free, pay, online, important, preferred, factor, delivery, consumers, united, stores, respondents.
  • Disco gets brands to boogie together on customer acquisition - Disco used to be Co-op Commerce, and leadership says the new name better reflects the company's focus on consumer discovery.
    Topics: costs, gets, round, acquisition, company, shopify, techcrunch, marketing, customer, sherline, brands, disco, funding, boogie.
  • Discount Shipping: Faster and Cheaper Than Ever - Now, more than ever, quality shipping and handling has become not only fast — within two business days or even next-day delivery…
    Topics: delivery, customers, need, discounted, costs, partner, important, couriers, discount, rates, shipping, discounts, right, services.
  • - South Korea's e-commerce industry, which has long emphasised “fast delivery,” is expanding its services, with competition now turning to offering “easy returns”.
    Topics: free, services, costs, easy, shipping, consumers, ecommerce, returns, battleground, delivery, products, turns, koreas, return.
  • - Today, we’re exploring the various features and capabilities included in the range of Ecwid pricing plans available to today’s ecommerce brands. With Ecwid, companies can start selling online almost instantly. The platform includes tools for not only building your online… Continue reading Ecwid Pricing Plans 2023: Packages, Fees, and Add-on Costs
    Topics: store, fees, packages, support, plan, business, pricing, month, costs, tools, ecwid, youll, addon, plans, free.
  • Ever Loved’s funeral marketplace undercuts undertakers - Fifty percent of families are scared they can’t cover the cost of a funeral. They end up overpaying because no one wants to comparison shop amidst a tragedy. That’s why ex-Googler Alison Johnston’s startup Ever Loved built a free funeral crowdfunding tool. Now it’s addressing one of the most expensive parts of saying goodbye: burial. […]
    Topics: online, loveds, funeral, dont, undercuts, prices, loved, customers, marketplace, costs, undertakers, memorial, techcrunch, families, johnston.
  • Five Shipping Strategies to Keep Customers Happy While Protecting Profits - Please customers and protect margins: here's how to determine the perfect eCommerce shipping strategy for your store and the right tools to accomplish it.
    Topics: shipping, rates, size, profits, charge, protecting, customers, happy, products, offer, free, costs, strategies, rate.
  • Fixed Cost: What It Is & How to Calculate It - "Business is personal — it's the most personal thing in the world."
    Topics: business, fixed, office, variable, website, costs, calculate, pay, company, space, cost.
  • From Dropshipping to DTC, Here Are the Most Popular Business Models for Ecommerce - How can entrepreneurs build a sustainable business and ensure competitive advantage? It all starts with your business model. Learn about the most innovative types of business models, with examples and insights from companies using them.More
    Topics: product, model, products, popular, brand, costs, dtc, ecommerce, business, dropshipping, inventory, models, customers, customer, selling.
  • Full Suite Monolith or Best-of-Breed Solution- Part 2: Cost - Choosing between a Full Suite Monolith or Best-of-Breed Solution can be a difficult discussion. Some brands are looking for an all in one solution while other brands are looking for a more customizable solution. So which will be the right fit for you? In this episode of Taco 'Bout Composable Commerce, Devon Hillard from Black Magic Consulting gives us the first consideration for choosing full suite monolith or best-of-breed solution: Cost   Shaneil Full suite monolith or best-of-breed solution. This can be such a tricky one for brands to decide on, because on one hand, some businesses want something that's quick and easy to set up, so they'd rather have one vendor provide everything only to find out that, that set up could be a bit too rigid for their requirements. Now, on the other hand, we have businesses that want something that's highly innovative and highly customizable, like best-of-breed solutions. But that's usually associated with more complexity and can seem a little bit more daunting to compose. So which one is going to be right for you? Well, today we have Devon Hillard from Black Magic Consulting, and he's here to Taco 'Bout It. The last thing that you mentioned, I believe, is costs. So what are your thoughts on that ?   Devon Cost, obviously, super important to any business. It's a little tricky, I think, with eCommerce solutions that we're talking about because you can range from, you know, Shopify, which may be a great solution for certain companies. And that's, you know, $59 a month. Up to large, monolithic eComm on prem installations, that might cost you $5Million to launch with And so you have this giant range just on the monolithic side. And then, if you start looking at Composable options, we're talking about best-of-breed vendors. That could be a handful of relatively affordable SAS offerings, or it could be 25 or 30 disparate systems, some of which are quite expensive. And then you also have the integration work of tying all that together, figuring out how you deploy that glue in that front end. So there could be, you know, kind of any range of costs of upfront launch. I think in general, the Composable Commerce approach might have a higher up front cost than at least some of the cheaper SAS based, like Shopify, etc., solutions. But the big thing to look at isn't just what does it cost to launch? What does it cost to get going? But long term over the next five years? Over the next 10 years, what does it cost to roll out new features to stay competitive in the commerce landscape and to be agile, enough to be really successful and kind of grow that business? And that's where I think the best-of-breed approach, where you're leveraging flexible solutions, you have an integration layer. That could really buy you a lot of efficiency. And that means it takes less development time to roll out new features, and that means it costs less. So your overall kind of total cost of ownership for a Composable solution may well be much lower than a monolithic approach, even if the up front cost was lower for that monolith. Just because the ongoing development and maintenance of that platform might take a lot more man hours, frankly. So it's not an easy answer. There's no simple answer that this is cheaper and this is more expensive. But it's definitely something that every company should look at and figure out what they think that kind TCO looks like and where they're going to make a smart investment for the future.   Shaneil Yeah, I think you said something that was so important Devon, and it's I think a lot of people get caught up with just thinking about the up front cost and you're right enabled for us to be able to keep up with our competitors and keeping up with our customer expectations as well. We probably will have to be rapidly iterating and making changes and adapting to the new world, like he had said with COVID. So it's so important to not just consider your upfront costs but your total cost. The cost of not just getting live, but staying live.   Devon Absolutely. I think that if you look at most companies, especially ones that have sort of a larger technical force in house, where they're doing that development or they're using a third party extensively your costs, you're loaded costs, especially for your head count, and you're tooling to run the site to build new features, to do QA, to do deployments, to do your monitoring; that is not an insignificant investment and can easily out shadow your cost to launch on your up front kind of licensing fees. So I think it really is important to look at the longer term and to say, you know, hey, you know, if I'm gonna be pushing out 50 feature releases a year, you know, where can I save money or what's gonna cost me more or less? Based on the efficiency of the system and the ease of rolling out new features and making changes. And I think that's where Composable solutions and, frankly, more modern solutions where you have more of an API driven approach and you have folks who are, you know, the running headless, for instance, and you can make significant changes to the UI and UX, including even sort of business flows without doing back end releases, without touching back end systems is a huge advantage there. From both an agility standpoint, but that translates down to a cost standpoint as well.   Shaneil So we've spoken about the three different points that brands need to consider. With your extensive experience, tell us how Black Magic Consulting will actually help us move towards these differentiated experiences for the future.   Devon Certainly. So we I mean, like I mentioned earlier, I've got 22 years of experience in the Enterprise eCommerce world. The rest of my team has similar levels of experience in marketing strategy, all kinds of components to being a successful eCommerce business and direct hands on experience at dozens of Fortune 1000 companies. And what that allows us to do is to come in with a client and say, you know, look very carefully where they are, where they want to go, what the competitive landscape looks like, what their strengths are, evaluate their digital maturity and help figure out what the best course forward looks like. And that could be to stay the course with the platform they're on, that could be to jump ship entirely to something new. It could be a gradual transition, leveraging a headless approach. There's lots of options, and it really is all about finding the right solution for the right business. And I think that's something that our experience really gives us a leg up on providing the best kind, of course forward for large businesses.   Shaneil Absolutely well, Devon, thank you so much for walking us through your thought process of choosing between a full suite and best of breed. If you have any questions of whether or not you should be taking a different approach, and if you want a consultation with Devon and please feel free to reach out to us, we would be happy to help you out!
    Topics: think, know, cost, monolith, kind, right, bestofbreed, thats, costs, solution, solutions, approach, suite.
  • Germans returned 487 million items last year - Last year, about 280 million parcels in Germany returned to the online stores that shipped them. In total, there were 487 million items that went from online store to shopper and from shopper back to the online store. This means that one in six parcels got returned, the University of… Continue reading
    Topics: guide, warranty, shopper, online, million, sold, items, costs, returned, returns, germans.
  • Google, Facebook and Amazon Are the Only Winners in Ecommerce - Rising advertising costs means falling profits for the ecommerce advertisers.
    Topics: amazon, costs, google, means, businesses, business, facebook, winners, profits, ecommerce, profit.
  • How AI Powers Distribution, Logistics - Artificial intelligence is a list of instructions and rules that a computer needs to complete a task. Ecommerce examples include site search, product recommendations, and chatbots — all increasingly rely on AI. But the distribution and logistics industries use AI, too.
    Topics: logistics, fewer, food, tools, lower, distribution, ai, product, powers, costs, based, efficient.
  • How Amazon Sellers Combat Rising Ad Costs - Smaller advertisers can remain competitive by placing a maximum cost for a specific keyword on Amazon's "suggested bid" mechanism. But a key overlooked metric to a successful ad campaign is relevancy and the likelihood that the ad will convert into a sale.
    Topics: costs, poor, ad, combat, keyword, advertising, listing, amazon, sellers, product, keywords, rising, content, sales.
  • How Ecommerce Businesses Can Beat Rising Ad Costs and Build Resiliency in Times of Economic Uncertainty - Find the ideal offer model for your eCommerce business to be resilient in the face of economic and industry shocks.
    Topics: costs, offer, offering, customer, customers, ecommerce, beat, model, product, rising, free, businesses, purchase, ad, value.
  • - Technically speaking, you can start dropshipping for $0.00. With the right combination of free trials and starter plans – and a willingness to look the other way and hope for the best when it comes to the quality of your products – 45 minutes of spare time is all that […]
    Topics: lets, cost, costs, shopify, order, dropshipping, money, products, startup, store, business, does, started.
  • How To Calculate A Break-Even Point – Analysis, Definition and Formula - To make a business come into existence is often a venture that stirs some mixed reactions. There’s so much workflow to execute, more precisely if you're a newbie. On the ground, things are a little more hands-on. A break-even point… Continue reading How To Calculate A Break-Even Point – Analysis, Definition and Formula
    Topics: costs, profit, variable, contribution, calculate, margin, product, fixed, breakeven, business, formula, analysis, need, point, definition.
  • How the D2C Starter Kit can Kickstart Your Digital Commerce Success - Elastic Path adds a D2C Starter Kit for brands to kickstart their Composable Commerce journey with a customizable storefront. What is the D2C Starter Kit? The D2C Starter Kit is an open-sourced toolbox aimed at accelerating the development of a digital commerce storefront that can be easily customized for specific use cases. D2C brands can set up a commerce storefront in a matter of days rather than months, saving up to 15% of implementation costs while preserving the speed and flexibility a Composable Commerce approach affords.  With a Composable Commerce approach, brands can add best-of-breed solutions for functionality like search, CMS (content management system), personalization, etc. With the extensibility of the D2C Starter Kit, brands can include new integrations over time as their needs evolve to keep up with and outpace customer expectations. See the D2C Starter Kit in action in our demo below.   The D2C Starter Kit is built with the modern developer-friendly framework, Next. JS. It is also hosting agnostic to allow brands to pick the platform of their choice, including Netlify(current), AWS, & Vercel. The current iteration also includes Algolia for search and Chakra UI to get started with a range of out-of-the-box components that are easy to customize.  Reduced Time to Value Brands often hesitate to upgrade to a Composable Commerce approach for two key reasons, implementation time and costs. With the Starter Kit, your team can quickly spin up a digital commerce storefront built on EP PXM. APIs that provide functionality such as Cart & Checkout capabilities, promotions, product variation, bundles, and more. With select integrations for site search & a payments solution rounding out a package that can drastically reduce the implementation time and reduce implementation costs by up to 15%!  Learn more about The D2C Starter Kit on GitHub.   Kickstart Your Composable Commerce Journey Discover how the D2C starter kit will help you save time and reduce costs. Contact Elastic Path
    Topics: costs, kickstart, success, brands, starter, composable, d2c, kit, digital, commerce, storefront, search, implementation.
  • How to Calculate Shipping Costs for your WooCommerce Store - You need to accurately calculate shipping costs to keep margins fair and customers happy, but do you know the four factors that impact shipping expenses?
    Topics: post, shipping, weight, rate, calculate, rates, set, products, customers, store, usps, woocommerce, costs.
  • How to Calculate Your Business’s Break Even Point [Video Included] - You've heard the term "break even." It's a popular way to describe a time when you spent exactly as much money as you made. "We gambled $200 at the casino and won $200, so we broke even."
    Topics: video, business, margin, costs, calculate, businesss, break, contribution, month, profitability, included, point, revenue.
  • How to Improve Warehouse Efficiency and Reduce Costs - If your eCommerce business uses a warehouse for storage and distribution of goods, optimizing the warehouse is essential. By implementing the right technology, design, and processes, businesses can improve the efficiency and effectiveness of their warehouse operations, resulting in cost savings, improved customer satisfaction, and increased competitiveness. The eCommerceFuel Forum has more than 300 threads […]
    Topics: work, costs, items, need, member, improve, employees, reduce, members, layout, warehouse, efficiency, inventory, order.
  • How to Make a Business Plan for an Online Business - Even online businesses need to have a business plan! Make your online business plan with the help of these strategies and tactics.
    Topics: youre, products, costs, online, brand, business, information, product, businesses, plan.
  • How to Manage Inventory as You Build, Launch & Grow Your Business - Advanced inventory management strategies to help you prep, plan, and execute your inventory management operations successfully.
    Topics: launch, business, products, manage, sales, grow, demand, inventory, build, costs, management, order, stock, product.
  • How to Manage Your Entire Marketing Budget [Free Budget Planner Templates] - The words “marketing budget” might strike fear into the heart of any marketing leader, but it’s a non-negotiable when creating and executing a marketing strategy for your company.
    Topics: costs, product, spend, manage, entire, marketing, content, summary, free, expenses, template, planner, budget, advertising, templates.
  • How to Prepare for Shipping Rate Changes in 2021 - Every year, carriers like USPS, UPS, DHL Express and Canada Post evaluate their services and prices to adjust for the upcoming year. Here’s an overview of what’s changing for each carrier in 2021—and what you can do to prepare.More
    Topics: costs, prepare, increase, flat, rates, shipping, shopify, prices, changes, retail, youll, rate.
  • - Figuring out how to price your print on demand products can be complex. Choose a price that’s too high, and you risk scaring off potential customers. Pick a price that’s too low, and you could harm your profit margins, and… Continue reading How to Price Your Print-on-Demand Products in 6 Simple Steps
    Topics: need, pricing, demand, customers, costs, printondemand, youre, profit, products, market, price, steps, simple.
  • How to Price Your Product: What You Need to Know About Pricing Before You Launch - Pricing your products is one of the cornerstone decisions you’ll make as a business owner. It impacts almost every aspect of your business. Learn how to find the right price in this article.More
    Topics: variable, know, need, profit, product, pricing, launch, price, products, business, costs, margin.
  • - While ecommerce might be seeing a surge in the coronavirus economy, skyrocketing unemployment rates and unpredictable consumer demand make it difficult to feel stable in any industry. And in times like these, it’s more important than ever to run a tight ship in regard to your expenses.  Shipping is what […]
    Topics: profits, increase, ship, supplier, reduce, options, delivery, suppliers, shipping, products, costs, free, business.
  • How to Reduce Shipping Costs for Small Businesses: 7 Helpful Ways - Looking to reduce your shipping costs and compete with big retailers and ecommerce giants as a small store? Learn how in this guide. More
    Topics: small, helpful, weight, reduce, shopify, businesses, packaging, costs, local, package, customers, ways, rates, shipping.
  • Is Magento Right For Your Business? Magento Features, Pricing, Security and More (Compared To BigCommerce) - Magento is an ecommerce platform built on open source technology. With its flexible shopping cart system, Magento has long been a heavy-hitter among enterprise brands selling online because it provides them total control of the look, feel, and functionality of their online stores. According to data from BuiltWith, there are over 230,000 live stores running on Magento. In terms of market share of the Alexa top 1 million (the one million websites with the most hits globally), Magento is used by 18%. In other words, there are over 14,000 Magento stores in the Alexa top 1 million. Magento was first released in 2007. In 2011, the company was acquired by eBay and then became an independent company again in 2015. The latest development occurred in May 2018, when Magento was acquired by Adobe. Speculation followed as to what that would mean for the company and businesses relying on it. In September 2018, Magento announced the end of life of Magento 1 as June 2020, meaning those software versions would no longer be supported. In March of 2019, Adobe announced their new Adobe Commerce Cloud which is essentially a fully managed cloud-based version of Magento that integrates with other Adobe tools. Magento is undeniably flexible and scalable but its long list of features comes at a cost. In order to unlock its potential, you will need a skilled developer/designer (or team of developers) to set up, maintain, and update your store. Depending on how you get the product delivered, you also may be on the hook for hosting and platform security costs. Let’s compare the Magento platform to the BigCommerce platform. Both offerings have a robust catalog of features for enterprise brands, but one of the biggest differences is the hosting setup. BigCommerce is a SaaS (Software-as-a-Service) platform. This means it provides an all-in-one package that includes a flexible shopping cart plus best-in-class security and DDoS protection with hosting on Google Cloud, the highest level of PCI compliance, and automatic updates. [quote] BigCommerce has a wide range of built-in features and is a great fit for large businesses who are ready to grow quickly. [/quote] Magento may be a good fit for businesses who require extreme flexibility in their platform and are willing to invest a lot of time and money to achieve that. We’ll delve more into the distinct differences between these two platforms below and determine which is right for your business. On-Premise vs SaaS vs Cloud One of the primary differences between Magento and BigCommerce is how they are hosted. Magento offers two main products. The first is its free-to-download option Magento Open Source. Anyone can download the software for use from Magento without cost. However, you will be responsible for hosting and development costs which can be steep, so “free” comes with a pretty big asterisk (more details on the Magento operating costs below). Magento’s second main offering is Magento Enterprise which comes with Magento support. The cost of running Magento Enterprise will be based on the business’s traffic and sales. Magento Enterprise can be hosted on-premise or cloud-hosted as a PaaS (Platform-as-a-Service) solution. Both Magento Open Source and Magento Enterprise can be hosted on-premises on a company’s own servers or be cloud-hosted through Amazon Web Services. With Magento Open Source, a business would download the software for free and then seek out their own hosting solution. It is worth noting that, in addition to the above products, in 2019 the new Adobe Commerce Cloud was announced. This is a fully managed cloud service built on Magento Commerce and now part of the Adobe Experience Cloud. The difference between on-premise and cloud-based solutions are pretty clear: the former is on site and the latter is delivered over the internet. However, as we delve into the intricacies of cloud services, things can get murkier. Magento Enterprise Cloud Edition is a PaaS offering. BigCommerce is SaaS. And to complicate things further, there’s another cloud hosting model, IaaS (Infrastructure-as-a-Service). Here’s a quick breakdown of the difference: IaaS: cloud-based, pay-as-you-go for services such as storage and networking. PaaS: hardware and software tools available over the internet. SaaS: third-party software available over the internet. Below is a great summary illustration as well:
    Topics: platform, businesses, enterprise, compared, cost, magento, business, right, features, pricing, saas, bigcommerce, security, costs.
  • Learnings from Hidden 6-Figure Manufacturing Costs - Stay Sixty is the maker of stylish reusable water bottles created by Kirpal Bharaj. Driven by the environmental cause of reducing single-use plastic water bottles, Stay Sixty combines the ritual of hydration with thoughtful design. In this episode of Shopify Masters, Kirpal chats with us on the hidden costs of manufacturing and introducing new products with Facebook ads.More
    Topics: hidden, things, product, great, look, right, costs, really, good, thats, brand, lot, 6figure, manufacturing, learnings.
  • Lowering Total Cost of Ownership Through iPaaS Adoption - SaaS applications help businesses create well-functioning systems in this digital age, but they bring more value to the organization when connected. Read more.
    Topics: lowering, ecommerce, businesses, business, tco, total, ownership, data, systems, adoption, solution, ipaas, cost, costs, software.
  • Magento Enterprise: Is It the Right Choice for Your Ecommerce Business? - Businesses launching their first ecommerce site have a lot of concerns to juggle. But, businesses outgrowing their ecommerce platform and…
    Topics: business, enterprise, ecommerce, work, magento, option, site, platform, developer, need, costs.
  • Mybudapester bears costs for orders outside EU - German online fashion shop Mybudapester.com offers its customers from outside the European Union free delivery and returns. These customers also won’t be charged extra for taxes, customs and freight surcharges on these international orders. With this initiative, the online fashion retailer wants to reduce the barriers for customers that are… Continue reading
    Topics: eu, ordering, orders, shop, fashion, retailers, online, easy, customers, costs, outside, bears, mybudapester, company, international.
  • Next Steps After The Sale: Your Guide to Small Business Shipping - How you manage small business shipping, fulfillment, and returns can make or break your business. In the Amazon Prime age,…
    Topics: offer, cost, rates, tips, sale, free, shipping, fulfillment, steps, small, rate, business, customers, costs.
  • Physical Stores Can Bolster Online Sales, for a Price - Opening a physical store was an anathema for early-day, pure-play ecommerce merchants. Why take on the financial burden of leases, construction costs, and staff? But the ecommerce landscape has changed.
    Topics: instore, physical, price, integrated, bolster, costs, online, store, presence, stores, digital, sales, experience.
  • Predicting Profitability: How to Do Break-Even Analysis [+Free Template] - A break-even point tells you exactly how much product you need to sell to become profitable. Learn how to calculate your break-even points, with examples and a free downloadable template in this guide.More
    Topics: need, predicting, youre, sell, profitability, fixed, sales, free, analysis, business, breakeven, costs, variable, template.
  • - Printify is a print-on-demand (POD) service where users can design products to sell on their online stores, while also leaving all printing and fulfillment to Printify. This type of service cuts costs significantly for store owners, and it makes it… Continue reading Printify Pricing (Aug 2022): How Much Does Printify Cost?
    Topics: aug, does, order, printify, premium, shipping, cost, free, product, pricing, costs, products, plan.
  • Q&A: ‘Can We Reduce Shipping Costs?’ - If you've ever wondered whether your ecommerce store could afford free shipping, or if you have been frustrated by poor shipping estimates at checkout, this post is for you. I'll address four common ecommerce shipping questions.
    Topics: costs, online, free, store, reduce, shipping, boots, weight, offer, packing, qa, ecommerce, ship.
  • Ride the Wave of CBD Business Opportunities: 20 Ideas + Tips to Get Started - Who would have thought that one tiny, plant-derived chemical could become one of the most sought-after ingredients in 2020? Cannabidiol,…
    Topics: business, products, market, cbdinfused, cost, try, cbd, costs, opportunities, product, food, sell.
  • - Dutch fulfillment company Salesupply has opened a second location in Germany. The new center is fully automated, resulting in lower costs, a faster picking and packing process and more efficient storage. The growing demand for the business’ solutions required a new location in the country. Second location in Germany Salesupply…
    Topics: automated, fulfillment, center, salesupply, delivery, second, ecommerce, opens, location, costs, germany, local, company.
  • Save Money on Inventory with EOQ - An American production engineer developed the economic order quantity (EOQ) model to help buyers at manufacturing companies understand how much of a given raw material or part they should buy. Many companies now use EOQ to calculate the ideal amount of inventory to minimize costs.
    Topics: save, cost, money, order, inventory, eoq, costs, ordering, unit, total, carrying, demand.
  • - Everything You Need to Know about Shipbob Pricing In this guide to Shipbob pricing, we’re going to cover everything you need to know about the costs you’ll incur when using Shipbob for order fulfillment. Shipbob has a lot of great… Continue reading Shipbob Pricing Guide (2024): How Much Does Shipbob Cost?
    Topics: shipping, fees, youll, guide, fulfillment, packaging, costs, service, items, shipbob, pricing, pay, does, cost.
  • Shipping Trends: How To Deliver on Your Customers’ Shipping Expectations in 2022 - Key learnings from our Future of Commerce report solve shipping challenges and offer new shipping strategies and processes that can positively impact your business in 2022.More
    Topics: deliver, costs, customers, shopify, free, options, shipping, cost, order, trends, ship, product, expectations.
  • - Shopify does not openly state its pricing for its Shopify Fulfillment Network online. Instead, each merchant receives pricing based on their specific business needs. Shopify provides a calculator to estimate what you should expect to pay, and there are other… Continue reading Shopify Fulfillment Pricing: Costs and Examples of What to Expect
    Topics: expect, network, x, fulfillment, merchants, inventory, pricing, shipping, shopify, costs, products, provides, examples.
  • - Confused about Shopify pricing in India? You’re not alone. While Shopify – one of the world’s largest ecommerce platforms – is pretty transparent about its pricing, it can be difficult to get your head around all the different expenses, from… Continue reading Shopify Pricing in India 2024: Complete Guide to Shopify Costs for Indian Merchants
    Topics: india, pricing, merchants, plan, shopify, transaction, month, need, basic, complete, indian, advanced, yes, guide, fees, unlimited, costs.
  • - Leading ecommerce platform Shopify has increased its prices for new customers in the United States. The change is expected to be implemented in Europe soon, as well. Current customers will notice the price change in three months. Costs tech companies Just like other tech companies, Shopify is dealing with increased…
    Topics: states, subscription, tech, costs, prices, united, plan, increased, increases, customers, shopify.
  • Startup Marketing Budget: How to Write an Incredible Budget for 2023 - When proposing potential ads at your startup, one of the first questions you’ll likely encounter is, “How much will this cost?” If you’ve prepared a killer startup marketing budget, you will be well-equipped to help executives understand and buy into your vision.
    Topics: need, startup, paid, incredible, write, budget, revenue, advertising, startups, youll, costs, marketing.
  • Surging costs send shares of e-commerce challenger Pinduoduo down 17 percent - China’s new tech force Pinduoduo is continuing its race to upend the e-commerce space, even at the expense of its finances. The three-year-old startup earmarked some big wins from the 2018 fiscal year, but losses were even greater, dragging its shares down 17 percent on Wednesday after the firm released its latest earnings results. The […]
    Topics: shares, costs, yuan, alibaba, tech, billion, sales, users, qutoutiao, send, smaller, million, surging, challenger, pinduoduo, ecommerce.
  • Takeaways from the 2019 State of the Merchant Report - In today’s episode, I am sharing the major takeaways from the 2019 State of the Merchant Report. It is a bit of a tradition for me to survey several hundred merchants to discover what is happening in the eCommerce realm, and this report reveals if ad costs are going up, the state of drop shipping, [...]
    Topics: merchant, report, growth, state, amazon, costs, tradition, ad, takeaways, youderian.
  • - Soaring costs saw Tencent Holdings report a net income of US$13 billion for last year, after a slow fourth quarter.
    Topics: surge, revenue, tencent, billion, workplaces, wechat, cent, competition, costs, sales, coronavirus, bytes, income, quarter, company.
  • The 10 Resume Mistakes to Avoid at All Costs - Are you in the process of updating your resume? Whether you're applying for a new job, switching industries, or re-entering the workforce after time away, having an up-to-date and polished resume is essential.
    Topics: stick, costs, resume, youre, job, hiring, avoid, address, information, email, content, mistakes.
  • The 2021 Guide to Instagram Ad Costs - Do you remember in 2012 when Mark Zuckerberg bought Instagram for $1 billion? It was a gamble. At the time of the acquisition, the platform was valued at half the purchase price, had 30 million users, and wasn’t generating revenue. Six years after the acquisition, Bloomberg estimated Instagram at 100 times that.
    Topics: prices, advertising, ads, users, cost, costs, platform, campaign, ad, guide, instagram.
  • The 5-Step Process HubSpot Uses to Optimize Facebook Advertising Costs - When Mark Zuckerberg shocked the digital marketing world with his announcement that Facebook would overhaul its algorithm to let users engage with their friends and family more and less with brands, the social media giant’s CPM skyrocketed 122% -- the highest spike in Facebook ad prices over the previous 14 months.
    Topics: hubspot, process, spend, hubspots, sales, users, optimize, facebook, ads, costs, ad, uses, audience, goals, 5step, cost, advertising.
  • The 8-Step Process HubSpot Uses to Optimize Google Advertising Costs - With over 3.5 billion search queries on Google everyday, paid Google search — paying Google to advertise your content on SERPs for relevant keywords — is one of the most popular and effective types of online advertising.
    Topics: costs, advertising, crm, search, process, uses, keyword, ad, software, free, hubspot, ads, google, keywords, 8step, optimize, match.
  • The Best Free Business Budget Templates - Business budgets are a source of truth for your income and expenses. That includes all the money you spend — from A/B testing your marketing campaigns to your monthly office rent.
    Topics: costs, business, best, templates, template, need, track, expenses, financial, help, revenue, budget, free.
  • The Best Free Business Budget Worksheets - Keeping track of expenses as a business owner can be taxing. You have to document every detail to make sure you stay within your spending limits while promoting your products or services, delivering on promises, and developing new offerings.
    Topics: expenses, project, need, best, marketing, costs, free, templates, financial, budget, worksheets, worksheet, business.
  • - When it comes to where to host your website, there are so many options available – WP Engine, BlueHost, SiteGround, FlyWheel, etc. This makes choosing the perfect web hosting provider a lot trickier. And it isn't just about the many… Continue reading The Best WordPress Hosting in Europe (Oct 2021)
    Topics: month, plan, europe, features, free, website, costs, hosting, traffic, best, wordpress, plans, oct.
  • The Keys to Lower Inventory Costs - Managing inventory is among the most critical tasks of an ecommerce company. Poorly managed, inventory costs can escalate, and profits erode. In this post, I'll review five tactics of high-performing, multichannel sellers that greatly lower inventory costs while streamlining operations.
    Topics: costs, company, product, order, sales, warehouse, keys, wrong, lower, inventory, multiple, savings.
  • The Price Is Right: 14 Strategies for Finding the Ideal Price for Your Products - Setting prices for your products is a balancing act. If a small business prices products too low, it might see a healthy stream of sales without turning any profit (and we all like to eat and pay our bills, right?). But when products are priced too high, a retailer will likely see fewer sales and “price out” more budget-conscious customers. So, what options do you have?More
    Topics: pricing, product, finding, price, strategy, prices, right, customers, products, higher, retailers, strategies, ideal, costs.
  • The Real Costs of Ecommerce Data Breaches, Espionage, and Security Mismanagement - Data security is essential to surviving the 21st century ecommerce landscape. From leaked trade secrets to disclosed customer addresses, a…
    Topics: real, data, breaches, ecommerce, business, security, mismanagement, businesses, ddos, customers, breach, costs, pci.
  • The Untold Secrets to Cutting Manufacturing Costs & Lead Times - Learn how to cut manufacturing costs and lead times by finding the right manufacturer & using management tools to understand the product development cycle.
    Topics: costs, cutting, product, manufacturing, products, secrets, ecommerce, manufacturer, manufacturers, youre, looking, produce, factory, times, untold, lead.
  • The average shipping costs in Europe - Shipping costs are one of the most important factors for ecommerce businesses. If you’re an online retailer, it’s important to know how much sending a package will cost you. But the average cost of shipping is different in every country. The 2018 Shipping Price Index shows you what the most… Continue reading
    Topics: local, country, costs, average, shipping, netherlands, express, expensive, europe, price, package.
  • The eBay Shipping Guide: How to Ship on eBay (+ Calculator) - Despite what you might think, selling on eBay involves more than just selling. In addition to offering quality products at…
    Topics: ebay, optimizing, free, product, fulfilment, shipping, usps, youre, mail, international, costs, items, order.
  • - US fashion brand Everlane has opened a store on Alibaba’s cross-border e-commerce marketplace Tmall Global.
    Topics: price, tmall, consumers, transparency, chinese, costs, everlane, world, global, launches, brand, products, fashion, consumer.
  • Understanding Ecommerce Website Costs and Total Cost of Ownership in 2019 - When staring at the reality of an ecommerce website that needs to either be built from the ground up or…
    Topics: platform, website, guide, understanding, ecommerce, saas, headless, security, onpremise, experience, cost, calculator, features, costs, software.
  • Understanding MOQ and How to Calculate It - MOQ stands for minimum order quantity and refers to the minimum number of products you can order from a supplier. Sometimes, it’s indicated in terms of money spent on purchases. MOQs differ among manufacturers. Some, especially larger establishments, demand a large MOQ, while smaller operations offer a lower minimum, sometimes even just one unit. Differentiating […]
    Topics: minimum, understanding, product, moqs, products, order, calculate, costs, business, ecommerce, moq, demand.
  • Understanding the Different Types of Bundles in Elastic Path Commerce Cloud - Product bundles can be great for enhancing customer experience, speeding up inventory clearance, increasing revenue and average sales and much more. However, many brands oftentimes struggle with maintaining their bundle assortments, which ends up leading to a poor experience for customers and loss in revenue for the brand. Let’s take a look at an example of that happening.   This brand has a membership bundle available. As you can see in the video, the usual annual membership costs $59. However, the bundle allows me to get my membership and a bundle of products at a discounted price. Therefore, when I click to add the bundle to my bag, you can see my cart loads with 4 items along with my discounted membership. However, you can also see that I can break the bundle and remove items from my cart, while still maintaining the sale price that was offered for the bundle. So at the end of the day, I can get my membership for $38, instead of the original $59, without even purchasing the full bundle. This is a major loss for brands because essentially, customers can game the system and get access to a sale price without spending more. Bundles with Elastic Path solves these problems.  So today I will be talking about the two different types of bundles and how you can use them.   Bundles With SKUs Assigned This type of bundle allows you to assign a SKU and a price to a subset of products. Therefore, this bundle may contain items which may or may not be available for purchase individually, and the price of the bundle will not be dependent on the individual price of the products in the bundle. For example, let’s say you run a computer hardware store and you want to sell a bundle which includes: A monitor which costs $200 A mouse which costs $40 A keyboard that costs $80 A 1 year subscription for Photoshop that is not sold individually So instead of an original calculated price of $320, you can assign all of your products under a single SKU, and set your price for that SKU for let’s say $280. Unlike traditional platforms that allow your bundles to break when shoppers try to remove items from their cart, Elastic Path ensures that all items must be included to get the benefit of the sale price. These types of bundles are especially used when: You don’t want the bundle to be auto calculated and priced at the value of the independent components You want to track inventory if you only have a set number of bundles available Interested in Learning More About Elastic Path Commerce Cloud Promotion Capabilities? eCommerce Promotions, when executed correctly, capitalize on the online consumer behavior, which helps you to continuously boost sales and customer loyalty despite the competition. Go to Promotions Bundles WITHOUT SKUs Assigned The second type of bundles are bundles without a SKU assigned. This type of bundle is based on the sum of each component's product pricing. Therefore, each product in the bundle already has an assigned SKU and price established in the catalog and therefore means they can be purchased separately. However, this bundle allows you to alter the price of each SKU and provide a “sales” price to provide a discount for customers. Therefore, in order to take advantage of the sale price, the customer has to meet all criteria of the bundle – In other words, they have to have all the required SKUs in their basket. So for example, let’s consider the same scenario before where you own your computer hardware store. Normally: A monitor costs $200 A mouse costs $40 A keyboard costs $80 But if a shopper adds all 3 to their cart, you can set your bundles rules to allow the customer to get the monitor for $180, the mouse for $30, and the keyboard for $70 for a total of $280. These types of bundles are especially used when you want to track product inventory individually and have the pricing be autocalculated. I hope this was helpful in better understanding the different types of bundles we have here at Elastic Path. If you have any questions feel free to reach out to us. In the meantime, checkout with our product innovations page and our product changelog to keep up with what’s new at Elastic Path!
    Topics: different, costs, types, cloud, path, commerce, bundles, bundle, price, items, understanding, product, sku, membership, elastic.
  • Variable Cost Explained in 200 Words (& How to Calculate It) - There’s a frustrating truth that every business deals with early into its growth: More money, more problems. It seems counterintuitive — if sales and revenue are up, isn’t that a good thing? How are bigger profits a potential problem?
    Topics: product, variable, cost, total, unit, number, words, explained, costs, calculate, units, average, fixed.
  • What Are Direct Costs & How Do They Differ From Indirect Costs? - It's surprisingly inexpensive to start a business today — as little at $5,000, reports Fortunly. However, as encouraging as that is to aspiring business owners, the costs to run that business every day are a bit more complex.
    Topics: data, business, direct, indirect, product, youll, costs, company, differ, need, cost.
  • What is the Cost of Headless Commerce? - When talking to brands about the benefits of Headless Commerce, one of the most frequent questions, and often the first, is "how much does it cost?" Spoiler: Before a commerce vendor understands a brands goals and roadmap, the answer is almost guaranteed to be “it depends”. Understandably, brands evaluating commerce platforms are frustrated with "it depends." The truth of the matter is, there isn’t a better answer until knowing more about your brand’s needs and ambitions. This post will summarize what "it depends" on and how a few key areas influence the total cost: Subscription license fees and how it varies   The 'types' of Headless Commerce platforms available and how they impact the cost   Implementation & re-platforming costs The Variable Cost of Headless Commerce Headless Commerce vendors generally have a similar cost structure. While these vary slightly across vendors, usually, our customers don't view these as a significant factor in choosing which Headless Commerce platform is best suited to their needs. Generally, the subscription license cost is based on how much merchandise is sold in a store. Gross Merchandise Volume (GMV) based costs are now standard. They range from a fraction of a percentage point to a few percentage points (0.3% - 3%) of GMV, depending on each contract. Usage-based costing is by no means a new cost structure; other SaaS solutions have a similar system - cloud computing is a good example. The other alternative to volume-based pricing is based on the number of orders processed; this alternative is less common since the average order value can vary drastically from one brand to the next. At Elastic Path, typically, the costs start from 50,000 USD/ year and increase based on your transaction volume. The benefit of this pricing structure is the economies of scale, where your unit costs will be cheaper at $1 Billion in order value versus order value of $10 Million. The most critical piece in evaluating what eCommerce solution to buy is comparing Headless Commerce costs compared to traditional monolithic solutions. No surprises here, Headless Commerce is usually cheaper - especially in the long term- than a conventional monolithic platform like Magento, Salesforce Commerce Cloud, or Shopify. For a more detailed look at the cost implications, please read our guide on the Total Cost of Ownership. Beyond the subscription license cost for your core commerce platform, the licensing of third-party subscriptions could also be significant. With modern Headless Commerce solutions following a composable approach, brands can pick which third-party technologies they need to address their commerce goals. Typically, these include connecting the core commerce engine to third-party Search, Content Management Systems (CMS), Order Management Systems (OMS), enterprise resource planning (ERP) tools, personalization, tax & payments. Each of these services will come with its own costs that must be evaluated with each vendor. Ultimately your total cost for third-party solutions will depend on what back-end solutions your brand needs to achieve its commerce experience goals.   Interested in Learning More About Elastic Path Commerce Cloud? Launch and optimize innovative experiences fast, with a modern, headless, SaaS, API-first, & microservices-based commerce platform. See the Future of eCommerce Types of Headless Commerce & Their Costs Headless Commerce solutions can be broadly categorized into two main buckets. 'Retrofitted Headless' and Microservices-based Headless Commerce. In a nutshell - 'retrofitted' Headless solutions were built upon the older monolithic solutions, where the 'head' or front-end has been separated. This allows brands to create better customer experiences since they are no longer bound by only what is available out of the box from a monolithic solution. The drawback of these types of Headless Commerce solutions is that the back-end is still 'tightly-coupled,' where each component is interdependent, resulting in more costly and difficult customizations. In contrast, Microservices-based Headless Commerce solutions are designed so each 'service' or component that makes up a complete solution can function independently and instead 'talk' to each other through APIs. This means that the whole solution is easier to customize and add to in the future as the brand's needs or their customer's needs change. For a more detailed comparison between the two types, check out our headless vs retrofitted post here. There are a few key factors at play when it comes to the costs: Microservice-based Headless Commerce allows you to pick and choose the necessary pieces for your brand. Rather than paying for every feature in a 'retrofitted' Headless solution (due to their tightly coupled back-end architecture).   Future enhancements are cheaper to implement with Microservices-based Headless Commerce. This is primarily due to the lower 'effort' or developer hours needed to customize these solutions.   Microservices-based Headless Commerce is designed to work with the best third-party solutions available for a particular function. Search is a great example, where the capabilities of a monolithic solution will be dwarfed by those of a third-party solution whose sole focus is on this function. Not only are they functionally superior, but a Microservices-based approach negates the need to pay for both the 'out-of-the-box' & a better third-party solution. Understanding what services your brand will need to achieve your eCommerce goals is crucial. Even with a Microservices-based Headless Commerce solution, these costs can sky-rocket for complex solutions that require several third-party integrations, each with its individual cost component. Implementation & Re-platforming Costs At this point, many brands have had to go through a re-platforming as they outgrew their initial solution or realized that their current system was not flexible enough to handle their increasingly complex eCommerce needs. These brands are painfully aware of how expensive a complete re-platform can be and would love to negate the need to do so again soon. See how you can futureproof your commerce solution. A significant portion of the cost of re-platforming is the implementation costs. Whether this is through a System Integrator (SI) or achieved by an in-house development team for brands equipped to do so, the majority of the resources spent in this effort are in the development. Although an SI will be more expensive when broken down into a per hour/ unit basis, it is critical to understand how it might impact your in-house development team's other priorities. As with all other costs, the implementation costs will vary based on a few factors: A phased vs. a full-scale re-platform. The time needed to have a portion of your eCommerce solution moved to a newer solution versus a full re-platforming can vary significantly. Many brands prefer to 'strangle' pieces of their solution as they go to keep costs and performance in check.   How much customization is required for your unique solution? Generally, it is easier and faster to customize a modern Microservices-based Headless solution. With a retrofitted headless solution, brands often have issues with higher-cost developer teams. Two contributing factors: the effort required to implement customization is higher. Sometimes, they need to know the old architecture of an existing solution (which can often be a scarce skill set).   Do you need to start from scratch, or does a similar implementation exist that can be 'tweaked,' saving hours of development and testing time? Check out our Hub of Pre-Composed Solutions™ that allows brands to launch in a matter of weeks, not months. For a more in-depth understanding of eCommerce re-platforming, check out our guide. Bringing it All Together In Summary, your brand's Headless Commerce costs will depend on the factors outlined above. Your total cost will depend on how you choose to: Volume (GMV) based subscription license fees for your core commerce platform along with individual third-party license fees for the entire composable commerce solution.   Your chosen type of Headless Commerce solution implies variance in customizations costs.   Implementation costs from SIs or in-house resources vary if it is a re-platforming and how you choose to transition to a modern Headless Commerce platform. Ready for an estimate of Headless Commerce cost that addresses your brand's unique needs? Talk to us today to get started on your quote.
    Topics: replatforming, headless, solution, solutions, costs, cost, commerce, microservicesbased, thirdparty, brands.
  • What’s Better: Free Shipping or Lower Prices? - What’s the best strategy for your store? Can you afford to offer free shipping? Can you afford not to? Examine the pros, cons, & best-practices to boost sales.
    Topics: price, best, strategy, product, zero, business, costs, offer, lower, prices, shipping, whats, customers, free.
  • Yelp lays off 1,000 employees and furloughs 1,100 more - Yelp co-founder and CEO Jeremy Stoppelman announced in an internal email that the company is going through difficult times. Yelp has to cut expenses, which means a large round of layoffs and some additional measures — 1,000 employees have been laid off. According to an SEC filing, Yelp had 5,950 employees as of December 31, […]
    Topics: employees, costs, businesses, company, furloughs, pay, measures, local, stoppelman, lays, techcrunch, layoffs, yelp.
  • Zalando also ends free delivery in UK, Ireland and Spain - Zalando is introducing shipping costs in the United Kingdom, Ireland and Spain. The German fashion giant has taken this step after an earlier test in Italy. Although Zalando claims there are no plans to further expand this measure, it seems like the end of an era. Half a year after… Continue reading
    Topics: ends, customers, shipping, spain, costs, pay, delivery, orders, ireland, uk, free, united, zalando.
  • eCommerce Platform TCO Comparison: BigCommerce, Magento, Commercetools & Elastic Path -   This post was originally published on June 30, 2019 and has been updated for accuracy and extended context surrounding the topic. When it’s time to choose an eCommerce platform, everyone wants to know which solution will be the best one for their business. But more often than not, the next question is “How much does it cost?” Ideally, we all want the best bang for our buck, but it’s easy to get distracted by the displayed pricing on a website, or the lack thereof. Sometimes we end up jumping for a cheaper priced solution and shying away from those vendors that don’t display their pricing on the website, because we think it’ll be too costly. Only to find out, your “cheaper” solution is more expensive, because you were unaware of all of the additional cost you would incur.   At Elastic Path, we happen to be one of the vendors without upfront pricing because our pricing is truly customized to a business’ needs. However, to help you understand how your total cost of ownership would compare to other vendors on the market, we will outline all the factors that you should be taking into consideration when evaluating your eCommerce solution. We’ll also make reference to some of the the top eCommerce vendors on the market such as Salesforce Commerce Cloud, Big Commerce, Magento and Commercetools to give you a better idea of where Elastic Path is positioned in comparison.    To get a true understanding of your total cost of ownership you will need to take into account both your first year costs as well as your future costs. These costs include but aren’t limited to:  Base software fee / Licensing fee Hosting cost Implementation cost Third party integrations cost Cost of changes   In this article, we will first dissect each category of cost you should be considering followed by a breakdown of the total cost you can expect over a typical contract period for the aforementioned vendors.     Base Software Fee/ Licensing Fee The base software fee or licensing fee is what we like to refer to as the “upfront” pricing. These fees tend to reflect either monthly or yearly licensing fees, which can be: Tier based, continuous revenue based or percent of sales based.    Tier-based means that there is a predefined price that your company will get locked into based on your current and expected revenue. Elastic Path and Commercetools are examples of vendors that do tier pricing by revenue. The Elastic Path model is based on your transaction volume, which can be structured by Gross Merchandise Volume(GMV) or by the number of orders processed(used more regularly for B2B companies).  For example our pricing starts at $50,000 for companies who are just getting started and have revenue under $10 Million. Our pricing strategy allows you to plan your estimated growth over the next three years, lock in pricing, and allow you to plan for your spend in the future. This promises guaranteed pricing and clarity year over year so you can make plans for the future.   By continuous revenue, we mean the strategy by which vendors price their customers based on the revenue tier that they’re in, but automatically bump them up to the next pricing tier as soon as they go over. We’ve seen vendors such as BigCommerce and Magento use this type of strategy. For Magento customers with revenue between $5-$10 Million, you can expect a licensing fee of about $50K for Magento Enterprise Edition and $80K for Magento Enterprise Cloud Edition.    By percent of sales based pricing, we mean the strategy by which vendors take a small percentage of your Gross Merchandise Volume. Salesforce Commerce is an example of a vendor that uses this type of model. For example, Salesforce Commerce Cloud takes 1-2% of your GMV annually. So at $10 Million in revenue, you can expect to pay around $100K to $200K. This type of model can be quite attractive because there’s no immediate upfront cost and it scales based on how your business performs. However, there is also an additional annual fee of $150K that is mandatory to begin. This is a great example of hidden costs that you may not be aware of upfront.    Implementation Cost Implementation costs are usually the most feared by businesses as it is perceived as the highest costs they will incur. These will usually be dependent on the cost of your developer and the time it takes to build the frontend and backend of your system. However, if you’re in the market for an out-of-the-box solution, the majority of your cost will be dependent on the changes and customizations you will need to alter your pre-built solution. For brands with a unique brand vision and requirements, there will most likely always be customizations needed, and therefore, we recommend working with an agency or systems integrator. Here are a few of the tasks you can expect an agency to complete, that will determine your implementation costs:  Frontend development  Backend development  UI/UX design  Software systems integrations Omnichannel design    Hosting Cost Hosting costs are typically overlooked by teams when planning their yearly budget, but happens to be one of the most important costs you want to consider. Not because it’s overly expensive, but because the hosting provider you choose will determine the performance of your website. Some platforms offer hosting on premise or in the cloud within their platform, while others allow you to choose an outside hosting vendor to be integrated with their solution.  Elastic Path allows you to choose from a variety of hosting vendors that will best fit your business such as Netflify and Amazon AWS. Your hosting cost is commonly determined by the bandwidth and the seats you require. For example, for a mid-sized company with $10 Million in revenue, you can expect to pay around $1000/month for Netlify.  Platforms like Magento also utilize outside vendors such as Nexcess to provide dedicated hosting. For one dedicated server it says you could pay between $700 and  $800/month. However, due to Magento’s large code base, many customers have informed us that they have had to opt in for higher end hosting options in order to not compromise on speed. On average they have spent around $2000/ month on hosting. Other out-of-the-box platforms such as Salesforce Commerce Cloud and Big Commerce will typically have hosting included in their licensing cost.   Third Party Cost Third party costs are a little bit more intricate. When we think about this cost, we think about either plugins that are supplied by your platform as an application, or api integrations from third party vendors. The purpose of these integrations are to essentially extend your existing platform with other functionality. Some of the core third-party integrations include: content infrastructure, search engines, sales tax management, product information management, and shipping solutions. These costs will differ from vendor to vendor depending on if you leverage the third party as a plugin to your out-of-the-box solution, or buy a specific vendor solution for your Composable Commerce solution.   Cost of Changes One of the most important costs that are often neglected or forgotten are the costs associated with making changes to your solution. Most times we tend to plan and make decisions for “now,” but when the time comes and you are faced with costly changes that you weren’t prepared for, it can be very detrimental to your fiscal budget planning. In addition, if you’re the type of brand that wants to keep up with the ever changing times, updates and changes are inevitable and therefore it is imperative you understand what those costs will look like in the future.    Typical changes you will need to prepare for include:  Upgrades to your commerce software Maintenance of your system Upgrades or changes to your third party technology partners Changes in the backend functionality to fit your business requirements Addition of new user experiences to keep up with customer expectations These changes can become costly very quickly with traditional legacy platforms, as their rigid structure makes changes more difficult, thus driving up developer costs. Composable Commerce solutions on the other hand are more flexible by nature and therefore will end up lowering your overall total cost of changes in the future. As each business’ requirements will be different, we will not be able to provide an estimate of these costs across each vendor. However, from feedback from past customers, on average, Composable Commerce solutions like Elastic Path and Commercetools, lower cost of changes by 40% when compared to rigid legacy platforms like Salesforce Commerce Cloud and Magento.    Now that we've dissected the various cost categories, we have provided an overview of the total costs you can expect either on a monthly or annual basis for a few of the top legacy and Composable Commerce solutions on the market.      BigCommerce BigCommerce positions itself as an eCommerce platform for high volume brands, with  two main payment plans: Essentials Plan and Enterprise Plan.    BigCommerce Essentials  Plan BigCommerce Standard BigCommerce  Plus BigCommerce  Pro Yearly Sales $50,000 $150,000 $400,000 Monthly Pricing $29.95 $79.95 $299.95 The pricing represents their upfront license fee. At these rates, you get your average out-of-the-box store with zero customization, providing you with all the features you need to get a basic store up-and-running. Two additional costs you may not be considering when choosing BigCommerce: They automatically bump you to the next tier if your actual sales exceed the threshold. You spend an additional $150 per $200k sales increase if you go  higher than the BigCommerce Pro Sales Threshold’ e.g. 800k+ Sales = $700+/month.  In addition to these hidden fees, there are also costs associated with plug-in applications for advanced services, as well as a list of 80 themes that range from $145 - $235.   BigCommerce Enterprise BigCommerce Enterprise offers all the core features, along with the addition of some premium features including hosting, security, and support. Their pricing widely varies based on the average order value and the average number of orders processed per month. Based on conversations from some of their sales representatives, the pricing plan ranges anywhere between $400 and $20,000 monthly.  For some additional context, their TCO Calculator shows that based on a $250,000 yearly revenue you will incur:    Infrastructure cost →  $38000+ Site launch cost →  Design, QA Build: $30,000+  Integrations: $3000  Managed support costs→ $5000   Shopify  Shopify is the market leader for SMB customers looking for an out of the box eCommerce website. Shopify customers give up flexibility, meaning that they'll need to be comfortable running their eCommerce website according to Shopify's templates and structures - but for many companies, that is fine because they're just looking for a standard website. Shopify has 5 primary offerings: Lite starts at $9/month Basic starts at $29/month Standard starts at $79/month Advanced starts at $299/month Shopify+ starts at $2,000/month There are also gateway fees, which range from 2.15-3% + $.30 per transaction.    Magento  Magento Community Edition positions themselves as an Open Source eCommerce platform that provides businesses with a flexible, digital commerce solution to successfully sell online. We’ve already written a more detailed post on our blog  that digs into Magento’s TCO. To give you a brief overview of their pricing structure, we’ll focus on Magento’s two main plans: Magento Open Source and Magento Enterprise.   Magento Open Source Magento’s “FREE” Open Source plan proves to be a more customizable option when compared to BigCommerce. Be careful - the only thing free about this option is their licensing fee/download. There are few costs hidden in the background:  Implementation → $30,000 - $100,000+ Hosting → $1000+ Themes → $29-499 Maintenance and Support → $30,000+ Extensions → $0 - $10,000 Third Party Integrations → $6,000 I know what you’re thinking, those added up pretty quickly! To be upfront, the price for a more customized store than BigCommerce is going to start somewhere between $30,000 and $100,000 upwards.     Discover our eCommerce Platform Buyer's Guide See The 7 Considerations when Choosing the best eCommerce Platform in our comprehensive buyer's guide. There is no "best" and therefore, when choosing an eCommerce solution, you should focus on matching your company's specific requirements to each vendor's offering. Go to Buyer's Guide   Magento Enterprise  Magento Enterprise is the premium paid version of Magento, designed for those stores that need more than the community edition offers, based on the size of their company, and the level of customization they’re looking for. However, with this option, you have to empty your pockets for a much higher licensing fee. Based on your revenue, Magento displays their upfront price between  $22,000/year and $125,000/year. Of course this also includes access to more advanced features such as security, mobile commerce, and free professional customer support. However, in addition to including all the core features that the open source version consists of, the same features tend to come at a higher price for this plan. Some of these higher feature costs include:  Implementation → $60,000+ Hosting → $7000+ Themes → $29-499 Magento Certified Gold Partner - $10,000 Extensions → $0 - $10,000 Third Party Integrations → $6,000+   Overall, this comes with more customization, but still lacks complete control over your content. The price for this package starts between $100,000 and $250,000  Overall, Magento Enterprise comes with more customization, but still lacks complete control over your content. The price for this package starts between $100,000 and $250,000 upwards! These are high costs and to make it even worse, Magento’s performance has not been up to standard either. We have evaluated over 1,000 websites running on a range of eCommerce platforms and Magento came close bottom for website performance as a whole. You may want to consider the costs associated with their slow performing stores when considering your total cost of ownership as well. Commercetools Commercetools is a Headless Commerce Platform. To be completely frank, there are no signs of Commercetools’ pricing anywhere! They seem to be a bit secretive, but we have done our best to provide you with the most accurate information based on feedback from our customers, who shared what Commercetools has proposed to them. These costs include:  Implementation →  $300,000 - $1 Million License Fees →  $200,000/year  - $500,000/year Specialized resources→ $150,000/year   Elastic Path  Elastic Path offers Composable Commerce-as-a-Service, an API-First headless commerce microservices solution. Composable Commerce is a modern approach to eCommerce that is built on the concept of composability, where core commerce functionality and partner integrations can be selected and assembled in various combinations to satisfy specific business requirements, at the speed digitally driven brands need to succeed. Composable Commerce were built on three main tenets: Modular architecture  Open Ecosystem  Business Centric Solutions  And it’s with these tenets that Elastic Path has been able to reduce business’ overall total cost of ownership by 25%. As mentioned before, Elastic Path provides a tier based pricing based on Gross Merchandise Revenue. Overall based on a 10 Million revenue, pricing would be around $50K for Elastic Path.  Elastic Path also offers Composable Commerce Experience Assurance that de-risks the management of multi-vendor solutions by providing an expert 24x7 global support team for all issues. This cost of the feature will be 25% of your annual contract value and capped at $25,000 USD/ year. Additional costs will include: implementation costs, hosting costs and third party costs which will lie in the same range of costs for Magento. Where you will end up seeing the greatest cost savings are in the phases of customizations and changes. To get a better understanding of how cost of changes will compare across traditional legacy platforms and Composable Commerce solutions visit our Total Cost of Ownership Guide. If you have more specific questions regarding Elastic Path costs, please refer to the pricing page here.  Summary  Understanding your total cost of ownership is not straight forward and often times we prioritize certain categories of costs and lose overall sight on our expected total cost in the future. As each vendor has different offerings, it will never be easy to compare them across the board. However, if you follow the guide of assessing each category of cost, this will give you and your team a good understanding to make an informed decision. If you have any questions, we are always happy to help - Just reach out to us.        Stay on top of industry trends with the latest blogs and articles from our eCommerce experts.   i { -webkit-transition: color .25s ease-in-out; -moz-transition: color .25s ease-in-out; -o-transition: color .25s ease-in-out; transition: color .25s ease-in-out; color: rgba(68, 68, 68, 1.0) !important; } .subscribe--bar.module_15628520315781867 .btn:hover > i { color: rgba(255, 255, 255, 1.0) !important; } ]]>
    Topics: commercetools, ecommerce, pricing, platform, based, magento, path, costs, solution, tco, comparison, cost, bigcommerce, vendors, commerce, revenue, elastic.