eCommerce Platforms - an introduction

www.function22.co.uk 1

eCommerce Platforms: an introduction

Ben AdamsFounder & Director


What is an eCommerce Platform?

It is a software technology solution that allows you to build storefronts

(a storefront is any customer or business facing proposition relating to the selling of products and services)

eCommerce Platform

Website In Store Facebook store Mobile app Call Centre


The big eCommerce platforms


What types of solutions do they offer?

Some vendors offer fully integrated platforms whilst others pre-integrate with external solutions

(Pre-integrated means that one solution can be plugged into another with very little development effort)

Fully Integrated

ATG

CMS

PSP

PIM

Social

Mash up


What are ecommerce platforms made of?

They are usually based on a common programming language

(Java is becoming the most widely used programming language to build eCommerce platforms because of its object based, standards based nature)

Java PHP .net

eCommerce Platform


How do you build storefronts with an eCommerce platform?

You use a set of developer tools, processes and frameworks provided by the eCommerce platform

(an API is an Application Programming Interface, it is a set of building blocks that a developer can use to create functionality on a storefront)

Developer framework

APIs Data models Business logic

Development environment

Server side scripts

Integration framework

eCommerce Platform


Integrated Development Environments


How do you deliver an eCommerce platform on the web?

You host it yourself or on the Cloud

(The Cloud, is a worldwide infrastructure where hosting and software is delivered ‘on demand’ over the internet)

On-premise On Demand

Host in your building

More control

Know where your data is

Hard to scale

Host it in the Cloud

Low set up costs

Easy to scale

Potential data and security issues


Who builds the storefronts with the eCommerce platform?

It depends on your implementation model

(an SI or System Integrator is a Third Party company who specialise in the building eCommerce platforms for clients)

In-house Outsource

Build a development team in your business

More control and flexibility

Potential issues around quality

Hard to find resource

Get an SI to do the build for you

Less control and more fixed scope

Usually better quality

On demand resource


Big SIs


How does the business use an eCommerce platform?

Using as set of business tools provided with the eCommerce platform

(Product management means how you manage your product information, both for business purposes and customers)

Business ToolsProduct

managementMerchandising Pricing

Promotions Personalisation Search

eCommerce Platform


Business Tools

ATG Business Control Centre

Demandware Business Manager


What is happening in the market?


Lots of replatforming

Most of the large retailers are either looking at new platforms or already replatforming to enhance and future proof ecommerce and multichannel offering


SaaS / Cloud eCommerce is gaining ground

Retailers are realising the benefits of Cloud and SaaS – low total cost of ownership, roadmaps, less IT involvement

Custom Licensed Managed SaaS

Component, CPU based pricing

Rolled-into-one usage based pricing

More retailer involvement

Less retailer involvement


Margins are being squeezed

Historically platform vendors made money out of license fees. Now SaaS is upon us, they have to look at other margin makers, e.g. consultancy


Acquisitions for fully integrated solutions

Money is to be made in full service solutions and not individual offerings


eCommerce is becoming less about just websites

Storefronts are not just websites now. Regardless of channel or interface there should be the same common, master solution and common customer experience.


Hybrid development models

Development models are evolving from traditionally outsourced or in house to a hybrid model

SI

In-house


Open Source Frameworks & pre-integrations

The open source community is gaining traction with backing from major SIs and technology providers


International

International is the buzz word. Retailers are looking to expand their offering to international markets through cross border selling or international websites

Sweden105 stores

SwitzerlandInsuranceFixed line

Portugal154 stores

UK820 stores

Ireland76 stores

Spain443 stores

The Netherlands187 stores

Belgium83 stores

Germany216 stores

France332 stores

BEST BUY EUROPE2,500 stores12 eCommerce businesses 2 million UVs/wk


Mobile Matures

Mobile selling has become a standard feature of any ecommerce platform


Commerce gets social

eCommerce vendors are investing in social capabilities in order to drive customer engagement through social channels


What about the future?


Facebook evolves into an eCommerce platform?


Retailers exploit their bricks and mortar infrastructure

Customer can buy online and collect in store

Customer can sell their own product online and post in store via Tesco fulfilment network

Suppliers can build their own stores on tesco.com and customers collect in store


eCommerce becomes ‘commerce’

eCommerce platforms become retail commerce platforms

Everything everywhere

Departmental functions become blurred

Heads / Directors of commerce

Holistic view of purchasing cycle

Differentiation becomes customer experience and operational efficiency (not platform)


Ben Adams – Founder & Director

[email protected]

/in/benjadams

@function22uk

Thanks for listening!