Switching to a new e-commerce platform?
23 October 2023
You can see it coming, the time when the existing e-commerce platform is actually no longer adequate and you need to switch to something new. But what do you choose? What are the new requirements? And how do you switch over without hiccups?
Keep this in mind
The main reason to consider switching to a new platform is that companies are running into the limitations of their current e-commerce platform: the technology is outdated, the connection to other systems is not satisfactory, it becomes more difficult to keep up with changes, let alone be at the forefront of innovation.
All technology has cycles. An older generation is succeeded by the new generation in the cloud or through a SaaS setup. A particular platform was chosen years ago and there comes a time when that choice is reconsidered. Companies want new functionality, but outdated technology slows them down. The existing platform squeaks and creaks. These are often monolithic systems that lack flexibility.
It is also common that the existing e-commerce platform no longer connects well with other business systems. More and more bridges need to be added. This is expensive customization that is built into new platforms or can be added to them relatively simply by using prefabricated parts and third-party tooling: I described this earlier .
Change of thinking
Still, switching to a new platform is a choice that requires a run-up. The big question initially is: is it still worth investing in further development based on the existing platform or is it better to switch to an e-commerce platform that offers new market standards? This requires a change of thinking among various stakeholders. IT, marketing and sales often all have a say, and of course the CFO has something to say as well. There's a mixed bag when replatforming comes up. In the run-up to that, quite fundamental discussions sometimes take place: do we put the transaction first or do we want to put the customer first? Fine, of course, but you have to be ready as an organization to make such choices.
Moreover, realize that the new generation of e-commerce platforms focuses on point-of-sale and that, for example, logistics functionality must be additionally attached. Therefore, you should also think carefully about an order management system, something actually indispensable in omnichannel organizations that can improve their profitability with smart inventory management.
This rethinking is often a time to revisit the agency that can guide any transition. Companies work with a partner who has made the existing system subservient to the client's goals, but is that same agency also capable of coordinating the transition, implementing new functionality and providing customization?
Price tag and time frame
Switching to a new platform naturally comes with a price tag. Time is spent comparing the existing platform to new alternatives, then time goes into replacing the platform, and then you have the hours required for customization. Replatforming, as this process is also known, is therefore primarily a renewal process, not a project. Of course it can be planned as a series of subsequent projects. You replace the engine in your e-commerce vehicle, so to speak, so that you can use it for years to come.
The complete process sometimes takes a year or a year and a half, especially in a complex environment. But we also see examples where the work is completed in four to six months. Good preparation makes a huge difference. Your own team needs to be prepared for this, and a development partner with experience can play an important role in this.
While it rarely succeeds in bringing down the accumulated costs, the cost structure usually does change. Because a new platform offers a lot of standard functionality, less development is required in the initial phase and you also save on the time you would spend later on customization. You simply click functionality on or off. A client with a good in-house team can do that just fine on their own. On the other hand, you may face higher licensing costs.
Fashion, lifestyle and B2B
Switching to a new platform occurs mainly in retail organizations that are ready for a new-generation e-commerce platform. With pure players (who only focus on one product) this issue is much less of an issue, because they often work with a self-made platform with which they have created their own added value.
Many brand suppliers also engage in omnichannel, especially in the fashion and lifestyle sector, where their own stores and webshops often play an important role. When it comes to the webshop and the cross-pollination with social media, the difference with retail chains is not so big, but organizationally it is still a completely different story than with retailers. The new platform needs to be specifically tailored to that.
Another group are B2B suppliers who use e-commerce to serve business customers. They often started with a simple platform and now want a full-fledged e-commerce platform to better serve their customers. Gather more knowledge, segment better, be able to make customized offers. That's a growth market at the moment. Again, the webshop often looks like a web store that we are used to as consumers, but the services around it are businesslike. Therefore, for example, the platform needs to be linked to systems in which agreements are made about payment or delivery. Keep those kinds of specific requirements in mind when choosing a platform and any partner.
This article by our Chief Technology Officer Bram Hoekman was recently published on the Emerce website.
Marvin de Reuver
Senior Account Manager