Tips and Strategies to Improve TCO in eCommerce with Shopify Plus

Evaluating the TCO of your platform is critical when managing an eCommerce business. Total Cost of Ownership (TCO) refers to the total cost of acquiring, implementing, and using the platform up to a given time.

On average, Shopify’s platform costs are 23% below the industry average, which makes it more affordable. On the other hand, Adobe platform fees and the cost of the eCommerce stack are 42 percent higher, while those of BigCommerce and WooCommerce are 32 percent higher.

Given these substantial savings, let’s discuss what TCO includes and, therefore, why Shopify Plus stands out in this aspect.

Total Cost of Ownership or TCO means the total generalized cost of acquiring an eCommerce platform solution and deploying it in the business over a period of its usage.

Here are the key components of TCO:

The usefulness of TCO is rooted in the fact it offers a holistic view of the cost of an eCommerce platform, considering costs in the distant future, too.

A major differentiator for Shopify’s eCommerce platform is that it is considerably cheaper than its competition. Here’s how Shopify excels in terms of TCO:

Shopify’s platform cost is 23% less than the competitor’s costs. The total platform fees and the cost of the eCommerce stack are 42% greater in Adobe than in its competitors; BigCommerce and WooCommerce are 32% more expensive.

Shopify’s operating expenses are 19% less on the average. WooCommerce’s operating and support expenses are 41% more expensive, Adobe’s are 24% costlier, and Salesforce’s are 6% more costly.

Implementation costs in Shopify are found to be 33% lower. Competitor implementation costs are significantly higher: BigCommerce (88%), WooCommerce (49%), Adobe (42%), and Salesforce (16%).

These cost advantages are that businesses that use Shopify Plus can get significant savings on different cost aspects, which makes it a cost-effective option for eCommerce businesses.

To fully leverage Shopify Plus and improve your Total Cost of Ownership (TCO), consider the following tips and strategies:

Built-In Shopify Plus Features: Reduce reliance on third-party apps and custom development by leveraging built-in shop features on the platform. This helps avoid extra costs and makes the work with platforms more manageable.

Integrations: Also, minimize the workload and integrate workflows with the help of numerous available integrations in Shopify. For instance, the possibility of incorporating inventory systems to enhance the flow of business can be productive.

Scalable Infrastructure: Everyone likes flexibility and Shopify offers you the opportunity to scale up or down as you like. This helps in avoiding the issue of paying for services that are not needed hence bills are only paid based on the required amount.

Flexible Pricing Models: Shopify Plus has variable price structures that can be customized depending on your business requirements. This assists in controlling costs since you do not need to start from scratch as your business expands.

Automated Updates: All the updates from the platform side are managed by Shopify so your store is always on the latest and most secure version. This serves to minimize losses due to system downtimes as well as prevent security incidents.

Continuous Improvement: To keep your store relevant and attractive to customers, update its appearance and features as soon as Shopify launches an update. It can help avoid unnecessary redesigns and overhauls, which are costly and time-consuming.

Marketing Tools: Maximize your advertising budget through the integrated Shopify marketing tools. Other features like Shopify Email and social media integration can make it easier to get your message to the audience.

Data-Driven Marketing: Integrate marketing analytics into the processes using Shopify. It can assist with identifying customer buying patterns and choices, which are crucial to advertising and marketing techniques.

Analytics and Reporting: Take advantage of Shopify’s analytical and reporting features to discover ways to save money. Through examining the sales data, you will be able to determine the most effective way of handling the inventories to minimize the costs of storage.

Inventory and Supply Chain Management: Adopt proper inventory management technology procedures and utilize the features offered by Shopify. In terms of material management, efficient inventory control can lower holding costs and avoid stock-outs, resulting in improved cash flow and customer satisfaction.

24/7 Support: With Shopify Plus, you get a premium support service. So, make sure to harness Shopify’s 24/7 support to help solve any technical problems and reduce their impact. This makes sure that your store runs smoothly without hitches thus cutting down on unnecessary loss of sales.

Professional Services: For major changes and updates, it is recommended to turn to Shopify’s professional services. Their skill set can help avoid mistakes and do things right the first time around, which could be cheaper in the long run.

TCO is a strategic concept that cannot be overlooked by any existing or aspiring ecommerce business that is interested in faster Return on Investment. In these criteria, Shopify Plus seems to benefit a lot in terms of lower Platform Cost, Operational Expenditures, and easy integration, with the average TCO being 36% higher than competitors.

As a Shopify Plus partner, we assist businesses in creating and enhancing their Shopify stores to successfully meet its targets of ecommerce. Here at Techtic, our team of skilled Shopify store developers is fully committed to giving you an awe-inspiring store that is absolutely functional and efficient, as well as affordable. For more information on how we can assist you in optimizing total ecommerce with Shopify Plus, please contact our eCommerce experts.