The true cost of your eCommerce platform: Learn how to calculate the TCO

In the world of eCommerce, most decisions about platforms tend to focus on features, design, ease of use, and short-term costs. However, a crucial aspect that is often overlooked is learning how to calculate the TCO (Total Cost of Ownership)—a metric that reveals the real cost of maintaining and operating a platform over time.

The lack of information on this topic and the lack of transparency in the associated costs of an eCommerce platform are recurring problems that make it difficult for businesses to make well-informed strategic decisions. If you don’t know the true financial impact of your platform, you could be compromising your business's profitability without realizing it.

Why is there so little transparency about TCO?

One of the biggest challenges when calculating TCO is that costs are not always evident from the start. Many platforms advertise attractive prices but fail to detail the additional expenses that often arise over time, such as:

• Integration costs: Incorporating systems like ERP, CRM, or marketing automation tools.
• Hidden fees: Some platforms charge percentages per transaction or revenue, directly impacting profit margins.
• Extra functionalities: Platforms with lower initial costs often require the purchase of extensions or add-ons to add functionalities like advanced SEO, promotion management, or marketplace integrations. These features, in less comprehensive platforms, tend to have high costs or recurring fees.

The impact of not calculating TCO

Not knowing your eCommerce platform's TCO can lead to issues such as:

• Reduced profit margins: Hidden costs can erode your profitability over time.
• Delayed migration decisions: Many businesses remain on inefficient platforms because they don’t understand their real costs.
• Lack of scalability: Without a clear TCO analysis, planning for long-term growth and anticipating future needs becomes challenging.

The importance of calculating TCO

Choosing an eCommerce platform is not a decision to be taken lightly. Analyzing TCO allows you to understand the real cost of your technological solution over time, including:

• Initial costs, such as licenses and setup.
• Operational costs, such as maintenance, integrations, and updates.
• Hidden or unexpected costs, such as scope expansions or additional support.

These elements directly impact your profit margin, and if not managed properly, they can create unpleasant surprises. According to data highlighted in our eBook, 43% of businesses report that their actual costs far exceeded initial estimates.

What you’ll find in our eBook

Our eBook is designed to help you understand and calculate the TCO of your current platform, offering practical tools to determine if it’s time to migrate. Key points include:

• The formula for calculating TCO.
• How to identify direct and indirect costs.
• Comparative analysis between platforms.
• Tips to reduce TCO.

A high TCO can be a clear sign that it’s time to switch to a more efficient solution. Migration not only helps you reduce costs but also prepares you for the future of eCommerce, where factors like sustainability, personalization, flexibility, and omnichannel capabilities will be essential.

Download our TCO eBook now!