My first online shop

Sabina Pluskwik, Project Manager

My first online shop

What software to choose? Dedicated platform, SaaS or maybe Open Source

For beginers

What should I do first when deciding to open an online store?

•

What kind of an online shop will it be?

•

How large will the product range be?

•

What functionalities are the most important for me?

•

What is my budget?

•

What will the traffic be like on the website?

•

What software will I use?

Software

What software to choose for your shop?

Today there are many companies that offer their online sales platforms.

These solutions are very different from each other.

Each platform has its advantages and disadvantages. You have to take into

account all its pros and cons when choosing the right one.

I would like to briefly present some of the most popular online shopping platforms.

Software

Basic division of e-commerce software •

Software SaaS

•

Software Open Source

•

Dedicated software

•

The other e.g. proprietary ones

Software

The most often selected software for e-commerce websites

POZOSTAŁE OTHERS

13%

OTHER COPYRIGHT SOLUTIONS INNE AUTORSKIE ROZWIĄZANIA

12,10%

SAAS

18,70%

OPEN SOURCE

19%

DEDICATED SOFTWARE DEDYKOWANE OPROGRAMOWANIE

42,50% 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

The most often selected software for e-commerce 42.5% of online store owners indicated that their online shop was implemented on a dedicated

platform. This type of software is more likely to be found in larger shops and in those with longer market presence (existing over 5 years).

Open Source Software - 19% of indications and SaaS - 18.7%.

Proprietary software created by the shop - 12.1%. It is mainly used by shops with the highest sales

(over 100.000 PLN) and those with longer market presence.

What are the criteria for selecting the software?

Data

The main criteria when choosing software

4,8 4,1 91,1

DOSTOSOWANIE ADAPTING TO DO POTRZEB YOUR NEEDS

6 10,5

83,5

CENA PRICE

9,5 16,2 74,3

14,3 13 72,7

14 21,6

64,4

CZAS REALIZACJI ŁATWOŚĆ UTRZYMANIE MAINTENANCE EXECUTION EASE OF INTEGRACJI Z TIME INTEGRATION WITH SYSTEMAMI EXT. SYSTEMS ZEW. IMPORTANT Istotne

IRRELEVANT Nieistotne

21,6

16,8

18,7

17,5

34,9

39,7

42,5

47,9

43,5

43,5

38,7

34,6

DARMOWY FREE TRIAL OKRES PRÓBNY PERIOD

OPINIA FRIENDS’ ZNAJOMYCH OPINION

REKLAMA ONLINE W INTERNECIE ADVERTISING

OPINIA REVIEW

HARD TO powiedzieć SAY Trudno

Data

The main criteria when choosing software •

Adjustment to one’s needs 91%

•

Price 83.5%

•

The speed of implementation 74%

•

Easy integration with external systems 72%

•

Possibility of self-modification / the way of maintenance 64,4%

•

Feedback 43,5%

Different e-commerce platforms examples

SaaS

SaaS Software (IAI-Shop, Shoper.pl)

SaaS

SaaS model We get a ready-made shop, equipped with the functionalities necessary for the sale. Model based on

monthly subscription fee. Setting up a shop is easy and does not take much time. In the SaaS model, the customer receives a warranty for the system and can rely on continuous technical support. Shop platforms, in addition to standard features, also offer additional sales support modules that customers can purchase or lease.

SaaS

SaaS model

One of the most popular SaaS platforms. Shoper has numerous integrations with popular auction sites,

courier companies and online accounting software.

Shoper does not provide the ability to download and install its software on your own server (except for a special license). Everything is on the side of the supplier. You can buy and add your own domain, however, Shoper is responsible for maintaining the store and for that it takes a monthly fee. The fee depends on the

size of our store, the transfer limit and other additional options such as integration with the warehouse system.

SaaS

SaaS model

IAI-Shop is also one of the leaders in the e-commerce industry in Poland. The IAI-Shop has constantly been

developed, although it offers quite a lot in compared to competition.

When implementing IAI-Shop you do not need your own server, everything is done on the seller's side. The platform offers a wide range of functionalities including: Convenient order management, integration with Allegro and eBay platforms, shop service, warehouse

management, integration with IAI payments for 13 banks, courier integration, collaboration with price comparison websites and numerous tools for easier handling and management of customer base, goods and payments.

SaaS

General Advantages of SaaS solutions •

low cost of launching the store

•

ready to use integration

•

no one-time application purchase cost - SaaS access is usually based on a fixed fee which is a shorter and less expensive implementation process

•

server infrastructure – you do not need to worry about hosting

•

saving on support and service costs

•

access to the latest version of the software - no need to update the application

SaaS

General Advantages of SaaS solutions •

security guarantee - SaaS services are provided by physically and logically protected IT systems to meet

the needs of the most demanding customers, •

data security - SaaS provider creates backup copies of customer data,

•

advanced functionalities – (ex. IAI-Shop)

•

scalability - SaaS solutions easily scale with customer demand, as they work on a platform designed to

support thousands of users, •

high availability - SaaS is a service that must be continuously available

•

suppliers provide the highest levels of reliability, including systems that guarantee work continuity in the

event of natural disasters or serious failures (disaster recovery).

SaaS

General Defects of SaaS solutions •

there is no possibility of introducing dedicated changes,

•

no direct control over the application - because the provider is responsible for the stability and availability of the service provided. It also has full control over the application provided - no access to the open

source code, •

dependence on external vendor - in the SaaS model, the customer is the owner of the data stored on the system but the provider owns the license,

•

security - the most common and most frequently cited concern with SaaS. The customer gives important and often confidential data to the SaaS provider and wants to be sure that they are adequately secured against unauthorized access.

Open Source

Software Open Source (Prestashop, Magento)

Open Source

Software Open Source Open Source is not just a way to distribute, but free software that has been developing since the late 1980s.

Open source software is available for free and can be freely modified by users. However, we cannot forget about the cost of implementing a system and its development and updates. Also keep in mind that in open source systems, you do not get a guarantee for system operation and security. Technical support should be commisioned to external agencies. You also have to take care of hosting by yourself.

Open Source

Software Open Source

A fast and easy platform for online stores. Simple and intuitive management panel.

Good performance, extensive functionality and simple tool modification.

Open Source

Prestashop advantages

•

implementation and installation - simple in configuration. Almost everyone should manage the installation and launch of the simplest version in a few hours

•

performance - small requirements for the server hosting the shop

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functionality - user-friendly administration panel

Open Source

Prestashop disadvantages

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poor quality graphic templates

•

frequent updates (including security patches)

Open Source

Open Source software

Magento is currently one of the most popular platforms for running an online store.

Typically, this software is chosen by people who plan to create a large online store with a variety of functionalities simplifying the management of a wide assortment.

Open Source

Magento advantages •

self-modification - access to the open source code

•

extensive functionality (has extensive analytic systems, reporting, product management, mobile version or payment systems)

•

the ability to run several stores simultaneously and manage them from one administration panel

•

you can set a template for a given product that will make it look different to the customer than other products in a specific time range.

Open Source

Magento advantages

•

the system architecture allows for the creation of even very advanced services

•

a large number of ready-made, often free extras

•

great SEO optimization

Open Source

Magento disadvantages •

server requirements and reserves

•

administration (a complicated administrative panel)

•

installation and modification (involvement of specialists)

Open Source

Summary of Open Source platforms Prestashop is a great choice for e-sellers beginners. It makes a launch of an efficient store possible at a relatively low cost.

Magento is a good choice for more experienced people who know their need. Magento is a more demanding option, so you need to be aware of the greater hosting needs and your store maintenance.

In both cases a selection of competent people responsible for implementing the system is the most important.

Dedicated software

Dedicated software

Dedicated software

Dedicated software Dedicated platforms provide the greatest flexibility in implementing own, often specific requirements (with a possibilty of future expansion when needed).

When choosing a dedicated solution, it is imperative to create the requirements specification. It would also be good at this stage to have the requirements described in a timeline, that is:

•

What do we need today?

•

What would we like to have in the future?

Most dedicated platforms are licensed.

Dedicated software

Stages of implementing a dedicated platform •

Customer needs analysis

•

Presentation of a detailed project

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Verification and acceptance by the customer

•

Implementation

•

Making a test version available to the customer

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Implementation of reported changes and corrections

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Implementation and testing

•

Staff training

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Service for the entire system

•

Modifying the system to changing needs

Dedicated software

Advantages of dedicated software •

matching the store and its functionality to the needs of both the customer and the specifics of the product

that he offers - that makes us unique among others and we are sure that no one will have the same functionalities and effects on the website.

•

possibility of continuous development of the service and implementation of additional modules

•

software training

•

service

Dedicated software

Disadvantages of dedicated software •

high cost - software development from scratch is usually very expensive

•

time of implementation - laborious

•

the responsibility of the orderer and the supplier - it is worth to consider whether we will be able to design a good system and not make mistakes. Taking this assumption into consideration, we have to design the whole system, not just the adaptation changes in existing software

Summary

That is why‌ Dedicated, tailor-made software is the best solution for those who already have Internet trading experience,

are owners of a thriving e-store and want the system to be built to their needs and expectations.

For stores that generate a lot of orders, it is especially important to automate the handling process, while dedicated systems allow for integration with any ERP and CRM systems.

Summary

Variant

SaaS model

Open Source model

Dedicated model

Launching costs

+++

++

+

Maintenance costs

+

+++

++

Implementation time

+++

++

+

Customization needs

+

++

+++

System integration

+

++

+++

Customizable

-

+++

?

Internet support

++

+++

-

Scalability

+++

?

?

Application development path

+++

++

?

Technical support

+++

?

?

What software to choose?

Facts

Given that we have unlimited financial resources, most people would opt for a dedicated platform.

INNE AUTORSKIE OTHER COPYRIGHTROZWIÄ„ZANIA SOLUTIONS SAAS OPEN SOURCE

30,20%

8,10% 6%

DEDYKOWANE OPROGRAMOWANIE DEDICATED SOFTWARE

0,00%

56,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00%

Given that we have unlimited financial resources, most people would opt for a dedicated platform.

56% of stores would like to have dedicated software. It is interesting that the owners of smaller stores (62% of retailers with revenues up to 10,000 per month, compared to 43% in shops above 100,000), as well as shop

owners with a short market presence (57% of companies operating in the market for up to 1 year, against 46% of companies operating over 5 years).

The second position is occupied by other proprietary platforms (created by their own development team) 30.2%. It is particularly popular among the owners of the largest stores (over 100.000 monthly income) 47.7%, and those with the longest market presence (over 5 years) - 43.8%.

What prompts people to implement proprietary software?

WE HAVE ADEQUATE RESOURCES AND KNOWLEDGE POSIADAMY ODPOWIEDNIE ZASOBY I WIEDZĘ

BRAK ZEWNĘTRZNYCH KOSZTÓW NO EXTERNAL COSTS

RATIO STOSUNEKQUALITY-PRICE CENY DO JAKOŚCI

60,50%

75,70%

89,20%

0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00% 80,00% 90,00%100,00%

Lessons to do

What prompts people to implement proprietary software?

89% of the respondents said it that they have decided to implement the proprietary software because it is good

value for money Nearly 76% of respondents have chosen proprietary software because of the absence of external costs 60% of respondents posses adequate resources and expertise

What to choose?

There is no right answer to the question which solution is best.

Everything depends on needs, experience and of course the budget.

When we just starting at e-commerce and have a limited budget, the best choice is the SaaS model. Though it has many limitations, it offers monthly fees and makes us dependent on one company.

There is also an access to professional technical support - we do not have to worry about stability or errors in the software. We have a one price list and often a fixed annual fee for running the store.

What to choose?

If we want to be independent of the provider, we can be tempted to choose the Open Source system.

For experienced people who are familiar with the market, have specific needs, dedicated software will be the most beneficial solution.

What to choose?

It all depends on whether we expect convenience, or maybe we are able to devote some time and work, and

as a result, launch and run the shop at low cost. It all depends on the budget, and also our requirements for software functionality.

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Branch in Warsaw Al. Niepodległości 124/2 02-577 Warszawa

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