Evaluating total cost of ownership (TCO) for a new eCommerce website
Customer Company Size
Large Corporate
Product
- eCommerce website
Tech Stack
- eCommerce platform
- Payment service providers
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Customer Satisfaction
Technology Category
- Platform as a Service (PaaS) - Connectivity Platforms
Applicable Industries
- E-Commerce
Applicable Functions
- Sales & Marketing
- Business Operation
Use Cases
- Supply Chain Visibility
- Inventory Management
Services
- Data Science Services
About The Customer
The customer in this case study is a leading eCommerce company. The company operates in the Information Technology industry and is looking to understand the costs associated with setting up a new eCommerce website for retail and digital goods. The company is seeking to gain a competitive perspective so that an appropriate solution could be devised based on the scale of the merchant’s business requirements, whether small, medium or large. The company has engaged Blueocean Market Intelligence to conduct a study and provide actionable insights.
The Challenge
In the hyper-competitive eCommerce industry with dynamic business models, Blueocean Market Intelligence’s client needed to understand the costs associated with setting up a new eCommerce website for retail and digital goods. The client wanted to also gain a competitive perspective so that an appropriate solution could be devised based on the scale of the merchant’s business requirements (small, medium or large). The challenge was to identify different types/layers of vendors that a merchant or seller needs to tie up with in order to launch and operate an eCommerce webstore, and to understand the cost structure of identified vendors.
The Solution
Blueocean Market Intelligence started the study with the 360 Discovery approach, rounded up information available on the respective vendor’s site and other publically available sources to identify various vendors and their services in the space. Then, to arrive at a few decisive and suitable number of assumptions of prime importance, the costing model for the client was prepared. The process involved identifying different types/layers of vendors, understanding the cost structure of identified vendors, and finding out the total cost of ownership for retail merchant that offers products like clothing, shoes, accessories etc. under various business models. The same was repeated for digital goods merchants, offering products like software (distributed online), online gaming, consumer apps etc. under various business models.
Operational Impact
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