Online business platforms

Online businesses come in many shapes and sizes. And just like physical stores, the interior varies greatly. And besides the part the customer sees, other things are important: where is the stock, checkout & payment system, security against shoplifting and location (do people walk past your store, or are you in an industrial area as an outlet shop). With your e-commerce business, there are similar considerations to make. When you take over an online business, you usually also take over the software. This is important because it is the engine of your business.

Online business software

What exactly does online business software do? There are a few basic functionalities essential for an online business. The essential parts are

  • View Catalog
  • Order processing
  • Receiving payments
  • Providing information

Like many things in IT, online business software is also developing at lightning speed. A few years ago, everyone wanted their own app. Now a responsive site is very important again.  Besides these 4 basic components, there is a lot more: Social sharing & links, newsletter sending, loyalty programs, Feeds for affiliates, Adwords adveristing, SEO, Stock management, Shipping control, Ticketing system etc. etc. Extensions are possible with almost every platform, but the cost (structure) varies.

Types of software packages

1. Hosted platform

Hosted platforms are companies that offer the online business as a service. Well-known names are: SeoShop, ccvshop, biedmeer, shopify. This includes a lot of functionality by default, and there are also app stores there for buying/renting additional modules. Almost all packages also offer an API, a possibility to create customizations or links yourself.

Advantages Disadvantages
  • Good continuity through hosted platform by specialist
  • Platform keeps up with the times when there are new developments in IT land
  • Easy to use for the layman, often good manual and helpdesk
  • Good transferability in case of sale
  • Vendor lock-in (you're stuck with the vendor)
  • Monthly fees for many apps & extensions
  • If you need something that is not possible within the software, there is not always a solution
  • Costs can mount up (monthly), not so suitable for businesses with low turnover

 

2. Open source package 

Well-known open source packages for online businesses are: Magento, Woocommerce (Wordpress), Virtuemart. These packages are developed by the community and can be freely downloaded. Often plugins are required (sometimes paid for) to realize certain functionality. For example, the link with iDeal or the link with BOL.

Advantages Disadvantages
  • Many developments are provided free of charge
  • Choice of many packages
  • Many (IT) companies are available as specialists for setup and expansion
  • Low purchase costs
  • Many advantages if you have in-house IT staff
  • Costs can be opaque / high if you have to hire a specialist
  • If you modify too much yourself, bugs / problems may occur that are difficult to resolve 
  • Specialist knowledge needed
  • Arranging hosting, backups, SLA, links, etc. yourself. 


Hosted open source

A hybrid form of a hosted platform with open source also exists. For example, there are companies that specialize entirely in Magento hosting. They offer the (open source) platform including hosting. You can often also contact them for help and customization.  The advantages and disadvantages of options 1 and 2 can then more or less be taken together. But it strongly depends on the type of service. Some hosted solutions offer few customization options. That is often good for stability & low cost. But it is less flexible.

3. Self-built online business

Especially older online businesses with very specific product requirements (e.g. ordering window frames) are sometimes built especially for the seller. The customer rents a webserver and has the programmer build for his requirements & processes.

Advantages Disadvantages
  • Very flexible
  • Focused on the market / products the online business sells
  • Possibly lower (fixed) costs
  • Specialist knowledge required for maintenance (sometimes only by the creator)
  • Responding to new developments takes time (adding a new payment method, for example)
  • Updates and backups etc. have to be taken care of by yourself

What is the importance in online business buying/selling

If you start a new online business, you can choose the platform you want. In case of a takeover, usually not. But it is important that you know what state the online business is in: is the software up-to-date? Is it nicely set up? Are all orders correct? Etc. If you have doubts (as a buyer), or if you want to prove that your online business is in good order, you can let us perform a scan. This gives you insight into the technical state of the online business.

For buyers

Taking over a software package is like buying a house: You can see a lot, but also a lot you can't. So pay close attention and also estimate carefully what you can do yourself or what you need to outsource. Do you have your own IT person who can do some of the work; or do you need to hire everything. This is all important in estimating the costs you will incur & the risk you are taking when acquiring an online store.

For sellers

The technology behind an online store can be or seem like a black box to buyers. So make sure you get your act together. Do you have an old online business and are considering a sale in the future? Then consider switching to a (hosted) platform. That gives a buyer security.