Choosing the ideal platform for your e-commerce is a fundamental step that can define the success or failure of your business. A suitable platform not only boosts your sales, but also facilitates scalability, continually improving the experience for everyone involved — both managers and customers.
However, it is essential to consider that the costs associated with an e-commerce platform extend well beyond the initial investment. The concept of Total Cost of Ownership (TCO) encompasses all related expenses throughout the platform’s life cycle, highlighting the importance of a detailed assessment before making a final choice.
What is Total Cost of Ownership (TCO) and Why it is Crucial to Your E-commerce Success
TCO encompasses all costs associated with your e-commerce platform over its lifetime, including implementation, operation, maintenance, and expansion costs. However, TCO is a complex metric, consisting of many layers of cost calculations.
To simplify this analysis, Shopify commissioned a leading consulting firm to conduct research between December 2023 and January 2024. Research inputs were gathered from an executive survey, in-depth interviews with executives, secondary research (e.g., market and industry reports, review boards), and global subject matter advisors (SMAs) with deep ecommerce expertise. This research covered:
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Platform Fees and Costs associated with the ecommerce technology infrastructure: Including the acquisition of the platform, licenses or subscriptions, and configuration and implementation costs, such as hiring developers and customization.
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Operational, Platform Maintenance and Support Costs: Such as hosting fees, upgrades, transaction fees, and support and maintenance expenses, both technical and human.
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Implementation and Configuration Costs: Including initial platform creation, systems integration and custom features.
- Opportunity Costs of Lost Conversions: Reflecting lost revenue opportunities due to lack of native functionality or the need to integrate external applications and plugins, harming operational efficiency.
Discover Why Shopify is the Right Choice for Your Business's Long-Term Growth
If you’re looking for an ecommerce platform that offers not only a complete solution but also an excellent return on investment, Shopify stands out as an unbeatable option. Research has shown that Shopify can save you up to 36% on total cost of ownership (TCO) compared to other platforms available on the market. This translates into significant savings and a more efficient operation for your business in the long run.
Why Choose Shopify?
Shopify is dedicated to simplifying its customers’ operations, removing complexity, and providing a clear path to business growth. Vincent Arrouet, CEO and co-founder of Sunology, shares a remarkable experience with the platform: “In just one week with a developer, we were able to create specific templates and launch a custom platform in just five days.” This is proof of the power and efficiency of Shopify. The data speaks for itself:
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Platform Cost Savings: On average, Shopify’s platform costs are 23% lower than its competitors. Compared to other major platforms like Adobe, which costs 42% more, and BigCommerce and WooCommerce, which cost 32% more, Shopify’s advantage is clear.
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Savings on Operational Costs: Shopify’s operational costs are, on average, 19% better. Meanwhile, platforms like WooCommerce have 41% higher operational and support costs.
- Implementation Cost Savings: Shopify offers 33% better implementation costs, while other platforms like BigCommerce and Adobe have significantly higher costs, at 88% and 42%, respectively.
These aren't just numbers: they're indicative of how Shopify can positively impact your business, making financial management easier and allowing you to invest in new products or markets with fewer financial worries.
TCO comparison with other ecommerce platforms
To see how Shopify compares to other platforms, check out our TCO calculator and evaluate the costs and opportunities available to make the best choice for your ecommerce business.
Looking for the best platforms for your e-commerce business? Compare the top options available! Check out our detailed comparison guides to find out which platform best suits your business needs.
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We can help you!
If you're tired of dealing with the limitations of your current store and want to upgrade to Shopify Plus, our Shopify Agency is here to help! We're one of the first agencies to achieve the Shopify Plus Partner status in Latin America and we're among the best-rated in the Shopify ecosystem!
Your project can count on the expertise of our Shopify Agency in every step, including migration, planning, design, custom solution architecture, development and ongoing monitoring for the success of your Shopify Plus store.
Contact us today using our form and find out how Alce Rocks can boost your business growth with the Shopify Plus platform!