NEW YORK, May 17, 2019 /PRNewswire/ -- You're budgeting the costs associated with developing an ecommerce website. Where do you begin? You don't want to overspend, but you don't want to cut corners either. What's the right price for this project? How do you break down the costs and how much should you be prepared to spend? What kinds of costs go into ecommerce web development anyways? How can you create the best-looking, best-functioning ecommerce website at the ideal price?
Questions like these weigh on every business's shoulders at the beginning of developing a successful ecommerce website. Huemor, a web development New York agency, answers these questions and more in a discussion about the costs of an ecommerce website development project.
Getting Your Budget Right
When building your budget, focus on two key points: prioritizing business needs and defining project value. First, prioritize what your business needs from this project and how you expect it to benefit your business in the long run. Don't let predictable, cookie-cutter business solutions make it into your development plan; your business is unique and has its unique challenges. While focusing on the benefits, remember that websites are created to drive sales and value for your business. Ecommerce websites are especially important, as they encompass a customer's first-impression, browsing experience, and check-out process all on one platform. A quality ecommerce website is well worth any investment put into it. Don't skimp on costs for a piece of your online presence that will generate immense value for a long time.
Ecommerce Website Costs
Using five simple measurements, the website pros at Huemor have developed a simple ecommerce budget calculator to estimate your business's website development budget. It uses your ecommerce sales numbers, product value, and product quantity, alongside total product orders and customers. These five numbers go into a specific formula to give your business a personalized ecommerce redesign budget, tailored to your company's results as of yet.
Breaking Down the Formula
The numbers that go into the budget formula are all critical pieces to developing the right budget for your development plan. Dive deeper into each one below.
- Annual Ecommerce Revenue: This is the revenue you can directly attribute to your ecommerce store, not including brick-and-mortar sales. Established businesses should use an average of the past few years, while newer businesses can use one year or an estimate.
- Average Product Value: Are your products mostly low- or high-ticket items? High-ticket items cost more during a development project due to the higher effort in selling them. This means more pictures and attention needs to be provided than that required of a low-ticket product.
- Product Library: If you're not migrating data from platform to platform, your product library doesn't matter in your development budget. However, if you're anticipating a transition, the cost of your redevelopment depends on how large your product library is, as all the data will need to be migrated successfully.
- Order History: Again, you're going to have to migrate data if a transition is a part of your redesign. The more orders you have, the more data that needs to be transitioned to a new platform and the higher your costs will be.
- Total Customers: The total number of ecommerce customers you had in the last year, not counting brick-and-mortar customers.
There can be a potential sixth factor in your redevelopment costs: logistics and integrations. Shipping, fulfillment, POS, and payment integrations are typically built into top ecommerce platforms, but custom API's are definitely possible.
Many factors go into developing a successful ecommerce website, but the first initiative is to properly budget the development itself. A clean, concise budget bodes well for a development project, and now that you understand the costs, find out your own business's budget by trying out the ecommerce budget calculator today.
About Huemor: Website development company in NYC, Huemor, ecommerce, beauty, SaaS, b2b, and nonprofit businesses create a best-in-class website experience to drive their online growth and improve their overall bottom line. Huemor's team of designers and developers work to create memorable websites that tell your brand's story, improve your key metrics, and display your brand with pride. Balancing memorable brand experiences with user-centric design, Huemor has amassed an impressive portfolio of case studies with successful clients, helping companies build memorable digital experiences for their brand across various industries.