C5i Case Studies Evaluating total cost of ownership (TCO) for a new eCommerce website

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	Evaluating total cost of ownership (TCO) for a new eCommerce website C5i

Evaluating total cost of ownership (TCO) for a new eCommerce website

C5i

Technology Category	Platform as a Service (PaaS) - Connectivity Platforms
Applicable Industries	E-Commerce
Applicable Functions	Business Operation Sales & Marketing
Use Cases	Inventory Management Supply Chain Visibility
Services	Data Science Services
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. Read More
About 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. Read More
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. Read More Log in to view content
Contents

Technology Category

Platform as a Service (PaaS) - Connectivity Platforms

Applicable Industries

E-Commerce

Applicable Functions

Business Operation

Sales & Marketing

Use Cases

Inventory Management

Supply Chain Visibility

Services

Data Science Services

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.

About 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.

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.

Impact #1	Blueocean Market Intelligence was able to share significant and actionable insights from this deep dive into the best practices around costing, pricing and valuation of websites in the eCommerce and the consumer app distribution space.
Impact #2	The cost model developed by Blueocean Market Intelligence was well-received and leveraged by the client to further map additional vendors across the eCommerce space.
Impact #3	It was also used to compare the positioning of the client’s service in the same for different features.

Impact #1

Blueocean Market Intelligence was able to share significant and actionable insights from this deep dive into the best practices around costing, pricing and valuation of websites in the eCommerce and the consumer app distribution space.

Impact #2

The cost model developed by Blueocean Market Intelligence was well-received and leveraged by the client to further map additional vendors across the eCommerce space.

Impact #3

It was also used to compare the positioning of the client’s service in the same for different features.

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Overview

Evaluating total cost of ownership (TCO) for a new eCommerce website

Operational Impact