Understanding How Ecommerce Platform Cost Models Work

Understanding How Ecommerce Platform Cost Models Work

As always, you can listen on all of the main podcast channels:

Summary

A key challenge when selecting a new ecommerce platform is understanding the full cost impact to the business, not just upfront development and licensing fees. There are many cost lines that must be understood before you can commit to an investment.

To compound matters, each platform has its own cost model, so you can’t easily do a like-for-like comparison until you understand the implications that the platform model has on your cost model.

This episode clarifies how you build a realistic TCO (total cost of ownership) cost model and flags key considerations to guide you through this critical process.

Key discussion points:

  • Why do you need to build a realistic TCO?
  • What types of cost should you consider?
  • How does the choice of platform affect costs?
  • Common mistakes and how to avoid them.

For further reading, James & Paul both have useful guides:

How to build your ecommerce cost model / Ecommerce total cost of ownership guide

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