Is your online store delivering great return on investment? The first step in optimising your ROI is to accurately map your total cost of ownership (TCO), which means identifying all the direct and indirect expenses associated with implementing, managing, and maintaining your eCommerce solution over its lifetime. a clear breakdown of these costs can help you allocate resources strategically and effectively.
For small to medium-sized businesses, the average investment in eCommerce over a three-year period ranges from £30,000 to £300,000 – a poorly optimised platform can make or break productivity and impact growth and profit.
Let’s explore the Top 10 areas you need to include in your TCO planning, and how much typically you should expect to invest in each area:
Over a 3-year period (both Capex and ongoing costs)
1. Initial design and development – 14%2. Monthly service fees – 9%
3. Third-party integrations – 5%
4. Custom features – 7%
5. Multiple markets – 8%
6. Digital marketing – 18%
7. In-house resources – 17%
8. Business protection – 3%
Firewalls, data encryption, antivirus software, and specialist eCommerce insurance are all essential requirements to build into your total cost, along with any development work or legal advice needed to keep on top of changing eCommerce legislation.
9. Ongoing maintenance – 12%Identify and include costs for minor adjustments, cosmetic updates, revised functionality fees, ongoing site optimization, peak trading preparation, and bug fixes throughout the lifetime of your online store.
10. Hidden costs – 7%Less obvious costs such as transaction charges and user onboarding fees differ greatly between eCommerce providers, but they can soon mount up, so it’s a worthwhile exercise to identify hidden costs to make sure you’re getting a good deal.
Remember that the percentages provided here are approximate and can vary based on the unique requirements and objectives of each business. By carefully evaluating the TCO and making informed decisions, businesses can position themselves for success in the highly competitive eCommerce landscape.
Next Steps:
Your mileage may vary, your business is unique – with its own challenges and opportunities.
Speak to an eCommerce Specialist today or download our eCommerce TCO guide .