How to Budget Your eCommerce Project

For a business, the launch or redesign of an eCommerce site can be challenging on many levels. The scope of the project will vary according to the complexity of the strategy, the company’s eCommerce maturity, and the choice of the platforms and technologies to be used.

To properly plan your budget, Novatize offers you some tips and tools to consider before starting to design your transactional site.

Investments to consider DURING an eCommerce design project

First and foremost, you have to choose whether you want to recruit professionals internally or take advantage of the services offered by an agency. In both cases, you will have to plan for the fees or salaries for the following areas of expertise: business strategy and analysis, UX and UI design, copywriting and content creation, front-end and back-end development, and project management.

You will also need to consider the entire ecosystem that revolves around your transactional site. It may be necessary to invest financially in the connection between your third-party systems, such as an ERP, an inventory system, a POS, an accounting system, etc. 

It will be essential to ensure that you have the graphic and editorial material to furnish your eCommerce site. Product photos, explanatory videos, and well-written descriptions are major factors in ensuring the success of your project. You will also have to consider translating this content into the languages that you wish to serve.

Investments to consider AFTER an eCommerce design project

Once your eCommerce site is online, it is necessary to plan for ongoing maintenance and optimization. You will also have to calculate the recurring expenses. Depending on the chosen technology, there may also be licensing fees, application fees, a percentage on the transactions, web hosting fees, domain fees, security certificates, etc.

It will also be important to plan an investment in marketing to ensure the acquisition and retention of new customers.

Income opportunities

In addition to planning a budget for expenses and investments, it’s essential to make profit projections: eCommerce is first and foremost a sales channel. Ideally, these projections will be supported by market research or data specific to your business and industry.

Generally speaking, among Quebec-based businesses that engage in eCommerce, the average proportion of online sales is 12% of the total sales.

Each year, there is an overall organic increase in online sales in Canada of about 3 to 4% (in 2020, it was significantly higher, at around 11%). You can expect this to be reflected in the results of your eCommerce site. 

Other elements to consider in the budgetary evaluation

The choices made in the short term will have an impact on the performance and potential of your eCommerce site in the medium and long term. Beyond the budget, it is necessary to make choices that will limit the technical debt and promote return on investment.

Technological projects can sometimes be eligible for certain forms of financial assistance, and it would be a good idea to include these when drawing up your budget.

Do you want to be supported by eCommerce experts in evaluating your project? Contact the Novatize team at [email protected] !

Would you like to receive the guide on preparing your eCommerce call for tenders? Complete this form.

1 – https://detailquebec.com/en-2020-le-commerce-electronique-est-il-devenu-la-norme/

2 – https://www.detailquebec.com/wp-content/uploads/2019/09/Sommaire-de-letude.pdf