SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
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E-commerce Platforms: A Buyer’s Guide
E-consultancy
September 2007
Copyright © E-consultancy.com ltd 2007 – not for distribution to nonsubscribers without written permission
Other recent E-consultancy reports:
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http://www.e-consultancy.com/publications/social-commerce-report-2007
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Copyright © E-consultancy.com ltd 2007 – not for distribution to non-subscribers without written permission
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
Table of Contents 1. Introduction 2. Executive Summary 4 5
1.1 About E-consultancy .........................................................................................................4
2.1 Further Reading......................................................... Error! Bookmark not defined. 2.2 Acknowledgements .......................................................................................................... 5
3. The Market
3.1.1 E-commerce platforms overview 6 3.1.2 Differences between packaged applications, full-service agencies and on-demand Error! Bookmark not defined.
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3.1 Market Definition .............................................................................................................6
3.2 Market Value and Growth ................................................................................................ 7 3.3 Drivers of Growth and Market Trends ............................................................................ 8
3.3.1 Major retailers drive e-commerce forward with new and re-vamped websites 8 3.3.2 Buyers seek marketing-led platforms and better user experience 8 3.3.3 Online retailers seek to bring together best-of-breed components Error! Bookmark not defined. 3.3.4 Multi-channel firms strive for integrated approach Error! Bookmark not defined. 3.3.5 Retailers tap into „social commerce‟ to increase sales Error! Bookmark not defined.
3.5 Return on Investment benefits of best-of-breed e-commerce platforms ........................9 3.6 Strengths, Weaknesses, Opportunities and Threats (SWOT)..........................................9
4. Costs and Pricing Models
10
4.1 Introduction.................................................................................................................... 10 4.2 Packaged Applications .............................................. Error! Bookmark not defined. 4.3 Hosted/On-Demand E-commerce ............................ Error! Bookmark not defined.
5. Finding the Right Supplier - Tips and Pitfalls
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5.1 Introduction .................................................................................................................... 10 5.2 What type of supplier are you looking for? ............... Error! Bookmark not defined. 5.3 Are you thinking about what the customer wants? ... Error! Bookmark not defined. 5.4 Are you planning for tomorrow and not just today? . Error! Bookmark not defined. 5.5 Have you thoroughly assessed the pedigree of your vendor/agency?Error! Bookmark not defined
6. Market Positioning Charts
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6.1 Explanation for Chart 1 – Business Model ......................................................................11 6.2 Explanation for Chart 2 – Type of Solution ................................................................... 12
7. Supplier Matrix 8. Supplier Marketplace and Profiles
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7.1. Vendor Matrix ................................................................................................................ 13
8.1 Actinic - Company & Service Details ......................... Error! Bookmark not defined. 8.2 ATG - Company & Service Details ............................ Error! Bookmark not defined. 8.3 CommerceNow - Company & Service Details ........... Error! Bookmark not defined.
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
8.4 e-InBusiness - Company & Service Details ............... Error! Bookmark not defined. 8.5 Ekm Systems - Company & Service Details .............. Error! Bookmark not defined. 8.6 Emojo - Company & Service Details ......................... Error! Bookmark not defined. 8.7 ePages - Company & Service Details ......................... Error! Bookmark not defined. 8.8 Fresca - Company & Service Details ......................... Error! Bookmark not defined. 8.9 hybris - Company & Service Details.......................... Error! Bookmark not defined. 8.10 IBM (WebSphere) - Company & Service Details .... Error! Bookmark not defined. 8.11 LavaSuite - Company & Service Details ................... Error! Bookmark not defined. 8.12 Magicalia - Company & Service Details................... Error! Bookmark not defined. 8.13 Maginus - Company & Service Details .................... Error! Bookmark not defined. 8.14 Moneyspyder - Company & Service Details ............ Error! Bookmark not defined. 8.15 Pindar Screen Pages - Company & Service Details . Error! Bookmark not defined. 8.16 Shopcreator - Company & Service Details .............. Error! Bookmark not defined. 8.17 Snow Valley - Company & Service Details ............... Error! Bookmark not defined. 8.18 Summit Media - Company & Service Details .......... Error! Bookmark not defined. 8.19 Truition - Company & Service Details ..................... Error! Bookmark not defined. 8.20 Venda - Company & Service Details ....................... Error! Bookmark not defined.
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
1. Introduction
E-consultancy‟s buyer‟s guides are the ideal starting place for anybody researching new suppliers in interactive market sectors. They contain in-depth vendor profiles; to help you quickly evaluate suppliers and service providers, as well as market analysis to help you put things into perspective. Vendors are selected for the report based on a combination of factors, not limited to but including: Analysis of capabilities (services / products) Clients Experience (qualifications / trade bodies / case studies / client lists) Expertise (by sector / topic), UK status (a UK office is preferred, occasional exceptions are made) Ability to take on and fulfil new projects Recommendations from trusted sources (or anecdotal evidence to the contrary) Google visibility Business model (a high % of turnover should be related to these services) Company website
E-consultancy does not explicitly recommend any of the suppliers featured in these guides, principally because it is impossible for us to work with all of them to form a firsthand opinion. But we do believe - based on an intensive and careful selection process that the chosen vendors represent quality. Buyer‟s Guides are updated on an annual basis, so the information contained within is recent and thus valid. Send any questions or comments to linus@e-consultancy.com. 1.1 About E-consultancy E-consultancy is an online publisher of best practice internet marketing reports, research and how-to guides. E-consultancy, named Publisher of the Year at the 2006 AOP Awards, also publishes buyer‟s guides and has a directory of 100,000+ third party internet marketing white papers. Subscribers pay from £149 per year to access the exclusive and highly practical content. E-consultancy has more than 100 events lined up for 2007, including roundtables and monthly Supplier Showcases, where six suppliers pitch to an audience of pre-qualified buyers at a Central London venue. E-consultancy has 56,000 registered users and more than 145,000 unique user sessions per month (audited by ABC Electronic). It is popular among internet professionals because of its time-saving advice and insight. The company also provides a range of public and in-house training programs, such as seminars and workshops. If you would like to know more about our training options then please visit our website or contact Craig Hanna on +44 207 681 4078 or email him at Craig@e-consultancy.com. http://www.e-consultancy.com/about/
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
2. Executive Summary
This report is an overview of the e-commerce platforms market, with a focus on the different technologies and delivery models available to organisations trading online. E-consultancy: we estimate that the value of the UK market for e-commerce technology will be around £400 million for 2007. E-consultancy last valued this market in 2005 when our estimate for the year was £268 million. The market has continued to show healthy growth in the last two years, growing by an estimated 22% in 2006. We estimate that the same 22% growth rate will apply in 2007, giving a market value of just under £400 million. Trends within e-commerce include: Major retailers drive e-commerce forward with new and re-vamped websites. Buyers seek marketing-led platforms and better user experience. Online retailers seek to bring together best-of-breed components. Multi-channel firms strive for integrated approach. Retailers tap into “social commerce” to increase sales.
2.2 Acknowledgements As well the suppliers who have submitted profiles and information, E-consultancy would like to thank Chris Lofts, an independent e-commerce consultant, for his assistance in compiling this report. Email: chris.lofts@noetikecommerce.co.uk
Mobile phone: 07929 007747
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
3. The Market
3.1 Market Definition This report is an overview of the e-commerce platforms market, with a focus on the different technologies and delivery models available to organisations trading online. The technology providers featured in this guide have been selected on the basis of criteria which are explained in the introduction and apply to all our buyer‟s guides. We have chosen to include e-commerce platform providers who own their own code base for delivering a complete transactional website that is re-used across multiple clients. The profiled vendors typically offer a standalone technology platform which can be bought as a distinct and branded technology solution. We have therefore covered vendors offering packaged applications as well as those who are offering on-demand ecommerce. We have also included some e-commerce platforms provided by full-service agencies, so long as they have a standalone platform where the code is re-usable. Section 3.1.2 contains a table which highlights the differences between packaged software, full-service agencies and hosted or on-demand suppliers. It is important to note that some vendors straddle more than one category, most obviously those which offer both licensed offerings and on-demand services. The Supplier Matrix (Section 7) gives readers an at-a-glance overview of the market each vendor is focused on (i.e. enterprise, mid-market or SME) and which services and types of functionality they can deliver. The Market Positioning Charts after each individual profile are another resource which allows buyers to understand key differences in each vendor‟s proposition. Section 6 contains an explanation of how these charts should be interpreted. 3.1.1 E-commerce platforms overview Introduction In order to make an online store work, several components have to be present. Sometimes these are bought as an indivisible unit, but increasingly the trend is towards suppliers who can bundle together several best-of-breed components to deliver a complete solution.
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
3.2 Market Value and Growth E-consultancy: we estimate that the value of the UK market for e-commerce technology will be around £400 million for 2007. E-consultancy last valued this market in 2005 when our estimate for the year was £268 million. The market has continued to show healthy growth in the last two years, growing by an estimated 22% in 2006. We estimate that the same 22% growth rate will apply in 2007, giving a market value of just under £400 million. The figure should be seen in the context of the wider outlook for e-commerce. The Interactive Media in Retail Group (IMRG) said in May 2007 that etail is growing faster than ever before, and predicts online sales in the UK will reach £78 billion a year by 2010.
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
3.3 Drivers of Growth and Market Trends 3.3.1 Major retailers drive e-commerce forward with new and re-vamped websites The growth in the e-commerce platforms market is a by-product of the phenomenal rise of online retail in the last few years. According to the IMRG, the total cumulative value of UK online sales had reached the £100 billion threshold by the end of May 2007. Increased broadband penetration is still a hugely significant driver of e-commerce growth because of the way that it enables a much quicker and stress-free shopping experience for consumers. The success that companies such as Tesco, John Lewis and Argos have had by investing in e-commerce has not gone unnoticed by other giants of the retail world, many of whom have been re-vamping their websites or, in some cases, going online with a transactional site for the first time. “The big retailers are certainly spending,” said Chris Lofts. “Online has gone from a „nice-to-have‟ to an indispensable channel. As companies are getting the multi-channel bug, deeper integration, slicker branding, and site performance are coming to the fore.” According to Chris Barling, CEO at Actinic, adoption is highest among traditional catalogue companies and the largest retailers, “where e-commerce is becoming ubiquitous”. He added: “Ikea moving online is of particular significance as they had previously refused to even create a telephone ordering channel, and it shows how widely ecommerce is accepted among blue chips. This is where by far the largest expenditure is occurring.”
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3.3.2 Buyers seek marketing-led platforms and better user experience Online retailers who are looking to improve their e-commerce capability - and also those who are starting from scratch - increasingly want platforms which support and enhance their sales and marketing efforts rather than acting as a barrier. There is now a much higher level of understanding that e-commerce platforms are about so much more than simply facilitating transactions online. Sales and marketing capability is now at the core of the best platforms rather than being an afterthought. Buyers should be looking to find solutions which are effective at helping them to address three of the most important drivers of online business success, namely increasing traffic, boosting conversion rates and improving average order value. In the quest to improve these metrics, an appreciation of the customer journey and decision-making processes should be central to any e-commerce strategy.
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
3.5 Return on Investment benefits of best-of-breed e-commerce platforms E-commerce platforms can help organisations … Drive revenue o o Boost visitor numbers/improve customer acquisition. Improve search engine optimisation. Increase conversion rates. User friendly technology. Improved information architecture. Less drop-outs/abandonments. Improved site search capability. Increase basket value. Upsell and cross-sell functionality. Relevant promotions. Improve customer retention. Customisation and personalisation. Dynamic pricing. More accurate and granular reporting to boost understanding of most profitable product lines/products.
o
o
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3.6 Strengths, Weaknesses, Opportunities and Threats (SWOT) This section contains a „SWOT‟ analysis for the e-commerce market, from the perspective of suppliers. It also serves as a summary of some of the points made above. 3.6.1 Strengths Online retail continues to grow in importance as a result of higher levels of broadband access and increased use of the internet for shopping. o According to the IMRG, online sales in the UK will reach £78 billion a year by 2010. o The IMRG says £42 billion will be spent online by UK shoppers in 2007, up from £30.2 billion in 2006. o Increased sales from e-commerce mean that there is more money to invest in technology.
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
4. Costs and Pricing Models
4.1 Introduction The costs of e-commerce technology will depend on a number of criteria including the following: Does the customer want a hosted, „on-demand‟ service or a packaged application? How much customisation is required and who is going to carry out that customisation? What level of support (internally and from suppliers) will be needed to manage the technology on an on-going basis?
It is important to consider the costs in the context of potential return on investment, and whether or not a more expensive solution might prove to be a better investment. Additionally, it must be remembered that the price of the technology may be only part of the cost of the e-commerce solution, for example if third parties (e.g. agencies / integrators) are needed to implement, customise and manage the technology.
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5. Finding the Right Supplier - Tips and Pitfalls
5.1 Introduction In order to identify the most suitable e-commerce platform and supplier it is important to understand that different vendors / solutions providers have different selling points, in terms of both their technology and their services. This section, in addition to the detailed company profiles and market positioning charts contained in the next sections, will help you focus on what your company needs and help you to find the right match. Here are some key questions and considerations which can act as a checklist to help you avoid any pitfalls. By asking these questions, and thinking about some of the issues, you should be able to find a partner which is suitable for your business requirements.
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
6. Market Positioning Charts
6.1 Explanation for Chart 1 – Business Model
Solutions sold & implemented via partners/resellers
Where we are going
Where we are now
Direct Sales
Focus on SME market Focus on high-end, enterprise market
The vertical axis charts to what degree the technology provider sells its solutions directly versus having an indirect model whereby it sells its technology via partners / resellers. The horizontal axis charts the target market the profiled supplier is targeting in terms of whether it is more aimed at small & medium companies or high-end, blue chip clients. The red circle denotes the company‟s current position while the blue circle reflects their medium and long-term aspirations. If there is no blue circle, or if the circles are in the same position, the company is happy with its current market positioning and has no plans to change.
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
6.2 Explanation for Chart 2 – Type of Solution
Most sales are for licensed software
Where we are going
Where we are now
Most sales are for hosted service
„Out-of-the-box‟ solution
Fully customisable /bespoke
The vertical axis charts the extent to which the e-commerce technology provider is geared towards selling licences for its product versus offering a hosted e-commerce solution. The horizontal axis charts the extent to which the solutions are designed to work „out-of-the-box‟ as opposed to lending themselves to customisation.
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SAMPLE: Buyer‟s Guide: E-commerce Platforms (2007)
7. Supplier Matrix
7.1. Vendor Matrix
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