how to choose e-commerce platform
For those who are starting to know how to choose e-commerce platform Maybe it is difficult to know. To facilitate this stage of creating a virtual store,
we will discuss the concept and models that exist in the market.
What is known technically choos e-commerce platform is a system on which a virtual store is built,
both the part that is visible to visitors to the site, known as the front end and the administrative part of the virtual store.
One of the biggest difficulties for entrepreneurs who want to start in e-commerce is to decide which e-commerce platform to choose, mainly due to the wide variety of prices and business models.
Every entrepreneur who is planning to set up e-commerce should devote much attention to this stage of the business, as it is vital to the success of the enterprise.
Currently, we can cite four main business models: rental license usage, license sale, source code sales and open source.
also read:- How to choose hot product
Rent of the use license
The lease model of the license is the most common and also the one that requires a less initial investment, and therefore is preferred by most of the new entrepreneurs.
In this model, the merchant of the e-commerce platform develops a standard system and commercializes the use license. They are known as leased virtual stores.
In this case, you pay an installation fee, also known as a setup fee, and a monthly fee that is usually linked to traffic received by the virtual store or, in some cases, a percentage on sales. It is the ideal option for those who want to build a small virtual store.
Sale of use license
The model of a sale of the license use is similar to the model of rent but without a monthly payment. It is a type of platform that is becoming increasingly rare, but there are still some suppliers that work with this modality.
In the first two models presented, the source code is owned by the company that developed, therefore, any adjustment or evolution that the retailer wants to make should do with that same company, which creates a dependency of that supplier.
Store Source Code Sale
In the sales model of the source code, the initial investment will be for acquisition of ownership of the source code of the proprietary developer, which will give the right to evolve or make adjustments in the platform by any company or professionally trained in the technology developed.
This is an option that gives more freedom to the entrepreneur, but in compensation leaves him responsible for all the technical maintenance part of the system and its evolution.
Open source platforms
Finally, there are open source platforms, which are available on the internet at zero cost and give the right to ownership of the source code.
Beware of the trap of finding that you can set up a store without spending anything. It simply does not exist.
In this model you will need to hire a company specialized in the chosen open source platform, to make the necessary customizations to your business and deploy it.
Which model to choose?
For all models, there is a great variation in the initial and monthly investment, which is often directly related to the quality of the services of the developer company and the level of customization allowed in the platform.
The important thing is to always assess how your competitors are positioning themselves, which tends to be the best model for the product that will be sold and the target audience and what budget is available.
One tip is to not invest more than 30% of the total funds available for the entire e-commerce project on the platform. But, do not forget that regardless of the model chosen, an evaluation should be made of the developers who offer it and never fail to plan the whole operation, taking into account the other pillars: logistics, service, marketing, and product.
Now that you have an idea of how to choose e-commerce platform, we invite you to read some other articles on the subject in our section on e-commerce articles. Stay up to date on this and other issues addressed on our site by subscribing to our Newsletter.