What to Know Before You Replatform
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- Dwayne Simmons
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1 What to Know Before You Replatform An Amazon Webstore Guide
2 Once your business recognizes there may be a need to migrate to a new ecommerce platform, the next step is to conduct research. Although making the decision to migrate to a new ecommerce platform can be a difficult one, by considering the pros and cons of migrating, determining platform must-haves, establishing key performance indicators (KPIs) and thinking long-term, you can be one step closer to making the right decision for your business. CONSIDER PROS AND CONS Migrating to a new ecommerce platform is a complex process that requires careful research and analysis. Weighing the benefits and possible downsides of migration are key components of this research. One of the biggest potential benefits of moving to a new platform is enabling innovation by keeping up with changes in technology and changing customer demands. With an ecommerce migration, it is also possible to take advantage of new growth opportunities and new markets which can potentially benefit key performance indicators (KPIs) such as conversion, customer acquisition and customer retention. Lastly, another potential benefit of moving to a new ecommerce platform is 2
3 decreasing total cost of ownership. However, the reason why conducting research and evaluating alternatives is so crucial in making the decision to migrate to a new ecommerce platform is because there may be associated hidden costs. In fact, 43 percent of ecommerce solutions have significantly higher costs than anticipated. 1 Without careful planning, moving to a new ecommerce platform can also impact business operations, result in traffic loss, and lead to a temporary drop in conversion rates and average order values. For this reason, being aware of any potential unforeseen problems and preparing for them are key to a successful ecommerce migration. Take-away: Before committing to an ecommerce migration, consider and plan for the likely pros and cons of the process and their impact on your business. DETERMINE MUST-HAVES The best way to end up with a platform that meets your company needs is to understand those needs. Standish Group found that 45 percent of platform features and functions are never used, and another 19 percent are rarely used. 2 This kind of wasted investment can be avoided by seeking feedback from employees and customers. Using feedback and aligning company objectives, you can determine the must-haves of your new ecommerce platform. Here are some other factors to consider when determining musthaves: Scalability is important for optimizing load times, accommodating traffic spikes, and maximizing site up-time. 3
4 Multi-channel integration ensures customers can be served across web, mobile, brick-and-mortar, and catalog outlets. Enhanced user experience results from usable navigation and content, refined search functionality, and streamlined checkout processes. Seamless integration with backend operations is critical for the smooth functioning of the purchasing process, reporting and analytics, fulfillment, inventory, and so on. Features and functionality should be aligned with what s right for the business based on high-level goals. Take-away: Start the ecommerce migration decision-making process by taking stock of company objectives and determining the must-haves needed to meet those objectives. ESTABLISH KPIs Forrester Research found that 63 percent of companies decide to migrate based on perceived ROI. In other words, they believe or have a hunch about the ROI as opposed to developing one built on a defensible economic model. In addition, 54 percent decide to migrate based on internal company demands, meaning that companies may feel pressure to implement a new ecommerce platform from different groups within the organization, or based on executives wishful thinking. 3 The key here is to make a decision based on real data and not rely on guesswork. To begin, almost any variable can be tested both before and after replatforming with actual customer experience testing. Companies can take advantage of this by testing site traffic, bounce rates, navigation, checkout processes, layout and design concerns, and so on. Additional variables can be determined by asking the following questions: How much traffic is coming through social media? 4 What percentage of traffic and sales are coming from mobile? 5 How many hours does it take to implement a marketing campaign? How much time is spent on maintenance? 4
5 By establishing concrete KPIs early on and benchmarking industry standards, you can integrate them in your decision making process. Of course, each team will no doubt have their own goals, objectives, KPIs; it s better to know about these drivers and integrate them upfront than to try and force them in later in the process. 6 Take-away: Don t rely on guesswork. Gather real data by setting concrete KPIs and benchmark industry standards for decision-making. THINK LONG TERM With ecommerce migration, delays aren t just possible, they re likely. The average duration of an ecommerce migration is 4.2 months; 7 this makes it essential for companies to be prepared. Even when the new system is in place, functionality and usability issues will require additional work on an ongoing basis. 8 In addition, initially, KPIs such as conversion, page load times, visitor time on the site 9, may be impacted. On average, it takes up to 3 months for KPIs to return to preprogram levels; for others, it can be 6 months or more. 10 Considering all these factors, companies should create a generous timeline in which to complete a migration project and consider delaying other projects until post-migration. 11 Take-away: Migrating to a new ecommerce platform is a complex process that takes many months to complete. Be aware of this and plan for a gradual transition. 5
6 SUMMARY ecommerce migration is a big decision and a major project for any company. Although it can resolve issues and lead to some major improvements, if not planned properly, it can also lead to unforeseen problems. The following pointers can help companies smoothly make an informed decision to replatform: Consider pros and cons. Evaluate both the pros and cons of moving to a new ecommerce platform and understand how the decision can impact your business. Determine must-haves. Gathering feedback and establishing what you can t live without will help you develop must-haves for the new platform. Establish KPIs. KPIs are the meters by which success can be measured. Determine which KPIs are most important to your business and best reflect success within your industry. Think long-term. Migrating to a new ecommerce platform is a lengthy process that involves many steps and can take several months to complete - be realistic about timelines. 6
7 Amazon Webstore is a complete commerce platform that enables companies to leverage Amazon technology and expertise in building and managing their directto-consumer business. Commerce sites built on the Amazon Webstore platform utilize Amazon s powerful cloud infrastructure and payment processing technology to deliver a scalable, secure online shopping experience to customers. Amazon Webstore also integrates seamlessly with selling on the Amazon Marketplace and using Fulfillment by Amazon, Amazon Prime, and other Amazon Services. To get started with Amazon Webstore, visit the website at or contact the Amazon Webstore team directly. 7
8 1 Forrester Consulting. Understanding TCO When Evaluating ecommerce Solutions. Accessed December 11, TCO_Comparison.pdf. 2 Optaros. Is it time for a new ecommerce platform? When to make the leap so you don t fall off the edge. Accessed November 15, Marketing Darwinism. 6 things to keep in mind when replatforming. Accessed November 15, pauldunay.com/6-things-to-keep-in-mind-when-replatforming/#sthash.wniavoo3.dpuf. 4 emarketer. Social Media Drives a Small Share of Online Consumers to Retail Sites. Accessed December Sites/ emarketer. Tablets, Smartphones Drive Mobile Commerce to Record Heights. Accessed December 11, , Marketing Darwinism. 6 things to keep in mind when replatforming. Accessed November 15, pauldunay.com/6-things-to-keep-in-mind-when-replatforming/#sthash.wniavoo3.dpuf. 7 Ibid. 8 Ibid. 9 Insite Software. What to expect after B2B E-commerce redesign & replatforming. Accessed November 15, Redesign-Replatforming. 10 Ecommerce Partners. Understanding ecommerce re-platforming. Accessed November 15, ecommercepartners.net/infographic/replatforming.pdf. 11 Monetate. 6 critical steps to take before a replatform. Accessed December 11, com/2012/05/6-critical-steps-to-take-before-a-replatform/. 8
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