This lecture covers key costs and ecommerce components to consider when identifying expenses for building or improving an ecommerce site.

1. eCommerce Budgets
Hajrë Hyseni,
University of Hertfordshire
Dec 2011
1
Wednesday, 14 December 11

2. Project planning
Creative, technical, integration, budgeting, testing and
promotion
Setting and agreement of project goals and constraints
Assembling and briefing the project team
Brainstorming creative ideas
Competitor and market analysis
Analysis of business logic (selling, fulfilment, returns)
2
Wednesday, 14 December 11

3. Project planning
Creative, technical, integration, budgeting, testing and
promotion √
Setting and agreement of project goals and constraints
Assembling and briefing the project team
Brainstorming creative ideas
Competitor and market analysis
Analysis of business logic (selling, fulfilment, returns)
2
Wednesday, 14 December 11

4. Project planning
Creative, technical, integration, budgeting, testing and
promotion √
Setting and agreement of project goals and constraints √
Assembling and briefing the project team
Brainstorming creative ideas
Competitor and market analysis
Analysis of business logic (selling, fulfilment, returns)
2
Wednesday, 14 December 11

5. Project planning
Creative, technical, integration, budgeting, testing and
promotion √
Setting and agreement of project goals and constraints √
Assembling and briefing the project team √
Brainstorming creative ideas
Competitor and market analysis
Analysis of business logic (selling, fulfilment, returns)
2
Wednesday, 14 December 11

6. Project planning
Creative, technical, integration, budgeting, testing and
promotion √
Setting and agreement of project goals and constraints √
Assembling and briefing the project team √
Brainstorming creative ideas √
Competitor and market analysis
Analysis of business logic (selling, fulfilment, returns)
2
Wednesday, 14 December 11

7. Project planning
Creative, technical, integration, budgeting, testing and
promotion √
Setting and agreement of project goals and constraints √
Assembling and briefing the project team √
Brainstorming creative ideas √
Competitor and market analysis √
Analysis of business logic (selling, fulfilment, returns)
2
Wednesday, 14 December 11

8. Project planning
Creative, technical, integration, budgeting, testing and
promotion √
Setting and agreement of project goals and constraints √
Assembling and briefing the project team √
Brainstorming creative ideas √
Competitor and market analysis √
Analysis of business logic (selling, fulfilment, returns) √
2
Wednesday, 14 December 11

9. Project planning
Product modelling and database design
Promotion design and logic
Design of decision support tools to help shoppers select,
choose and experience
Writing of all text pages (Terms & Conditions, Privacy)
Design and implementation of CRM integration
Design of customer service processes and systems
3
Wednesday, 14 December 11

10. Project planning
Product modelling and database design √
Promotion design and logic
Design of decision support tools to help shoppers select,
choose and experience
Writing of all text pages (Terms & Conditions, Privacy)
Design and implementation of CRM integration
Design of customer service processes and systems
3
Wednesday, 14 December 11

11. Project planning
Product modelling and database design √
Promotion design and logic √
Design of decision support tools to help shoppers select,
choose and experience
Writing of all text pages (Terms & Conditions, Privacy)
Design and implementation of CRM integration
Design of customer service processes and systems
3
Wednesday, 14 December 11

12. Project planning
Product modelling and database design √
Promotion design and logic √
Design of decision support tools to help shoppers select,
choose and experience √
Writing of all text pages (Terms & Conditions, Privacy)
Design and implementation of CRM integration
Design of customer service processes and systems
3
Wednesday, 14 December 11

13. Project planning
Product modelling and database design √
Promotion design and logic √
Design of decision support tools to help shoppers select,
choose and experience √
Writing of all text pages (Terms & Conditions, Privacy) √
Design and implementation of CRM integration
Design of customer service processes and systems
3
Wednesday, 14 December 11

14. Project planning
Product modelling and database design √
Promotion design and logic √
Design of decision support tools to help shoppers select,
choose and experience √
Writing of all text pages (Terms & Conditions, Privacy) √
Design and implementation of CRM integration √
Design of customer service processes and systems
3
Wednesday, 14 December 11

15. Project planning
Product modelling and database design √
Promotion design and logic √
Design of decision support tools to help shoppers select,
choose and experience √
Writing of all text pages (Terms & Conditions, Privacy) √
Design and implementation of CRM integration √
Design of customer service processes and systems √
3
Wednesday, 14 December 11

16. Project planning
Analysis of business logic (selling, fulfilment, returns)
Wireframing/diagramming of processes and functionality
Agreement of functionality, specifications and plan within
budget
Selection of platform, tools and hosting environment
Graphical design (within brand guidelines)
Conversion of design into templates and style sheets
4
Wednesday, 14 December 11

17. Project planning
Analysis of business logic (selling, fulfilment, returns) √
Wireframing/diagramming of processes and functionality
Agreement of functionality, specifications and plan within
budget
Selection of platform, tools and hosting environment
Graphical design (within brand guidelines)
Conversion of design into templates and style sheets
4
Wednesday, 14 December 11

18. Project planning
Analysis of business logic (selling, fulfilment, returns) √
Wireframing/diagramming of processes and functionality
√
Agreement of functionality, specifications and plan within
budget
Selection of platform, tools and hosting environment
Graphical design (within brand guidelines)
Conversion of design into templates and style sheets
4
Wednesday, 14 December 11

19. Project planning
Analysis of business logic (selling, fulfilment, returns) √
Wireframing/diagramming of processes and functionality
√
Agreement of functionality, specifications and plan within
budget √
Selection of platform, tools and hosting environment
Graphical design (within brand guidelines)
Conversion of design into templates and style sheets
4
Wednesday, 14 December 11

20. Project planning
Analysis of business logic (selling, fulfilment, returns) √
Wireframing/diagramming of processes and functionality
√
Agreement of functionality, specifications and plan within
budget √
Selection of platform, tools and hosting environment √
Graphical design (within brand guidelines)
Conversion of design into templates and style sheets
4
Wednesday, 14 December 11

21. Project planning
Analysis of business logic (selling, fulfilment, returns) √
Wireframing/diagramming of processes and functionality
√
Agreement of functionality, specifications and plan within
budget √
Selection of platform, tools and hosting environment √
Graphical design (within brand guidelines) √
Conversion of design into templates and style sheets
4
Wednesday, 14 December 11

22. Project planning
Analysis of business logic (selling, fulfilment, returns) √
Wireframing/diagramming of processes and functionality
√
Agreement of functionality, specifications and plan within
budget √
Selection of platform, tools and hosting environment √
Graphical design (within brand guidelines) √
Conversion of design into templates and style sheets √
4
Wednesday, 14 December 11

23. Project planning
Design of testing regime and tools
Implementation within shopping software, CMS or from
scratch
Integration with stock and ordering systems
Integration with payment partner
Photography
Collection and manipulation of content
5
Wednesday, 14 December 11

24. Project planning
Design of testing regime and tools √
Implementation within shopping software, CMS or from
scratch
Integration with stock and ordering systems
Integration with payment partner
Photography
Collection and manipulation of content
5
Wednesday, 14 December 11

25. Project planning
Design of testing regime and tools √
Implementation within shopping software, CMS or from
scratch
√
Integration with stock and ordering systems
Integration with payment partner
Photography
Collection and manipulation of content
5
Wednesday, 14 December 11

26. Project planning
Design of testing regime and tools √
Implementation within shopping software, CMS or from
scratch
√
Integration with stock and ordering systems √
Integration with payment partner
Photography
Collection and manipulation of content
5
Wednesday, 14 December 11

27. Project planning
Design of testing regime and tools √
Implementation within shopping software, CMS or from
scratch
√
Integration with stock and ordering systems √
Integration with payment partner √
Photography
Collection and manipulation of content
5
Wednesday, 14 December 11

28. Project planning
Design of testing regime and tools √
Implementation within shopping software, CMS or from
scratch
√
Integration with stock and ordering systems √
Integration with payment partner √
Photography √
Collection and manipulation of content
5
Wednesday, 14 December 11

29. Project planning
Design of testing regime and tools √
Implementation within shopping software, CMS or from
scratch
√
Integration with stock and ordering systems √
Integration with payment partner √
Photography √
Collection and manipulation of content √
5
Wednesday, 14 December 11

30. Ways of making the project cheaper?
Shopify, Magento
Get the client to do as much of the project as possible
Accept a share of the revenue (or the business) instead of
fees
Adapt templates etc from other sites
Use low cost solutions such as Shopify or Magento
Do additional work as revenue starts to flow
Consider outsourcing tightly defined parts of the project
6
Wednesday, 14 December 11

31. Ways of making the project cheaper?
Shopify, Magento √
Get the client to do as much of the project as possible
Accept a share of the revenue (or the business) instead of
fees
Adapt templates etc from other sites
Use low cost solutions such as Shopify or Magento
Do additional work as revenue starts to flow
Consider outsourcing tightly defined parts of the project
6
Wednesday, 14 December 11

32. Ways of making the project cheaper?
Shopify, Magento √
Get the client to do as much of the project as possible √
Accept a share of the revenue (or the business) instead of
fees
Adapt templates etc from other sites
Use low cost solutions such as Shopify or Magento
Do additional work as revenue starts to flow
Consider outsourcing tightly defined parts of the project
6
Wednesday, 14 December 11

33. Ways of making the project cheaper?
Shopify, Magento √
Get the client to do as much of the project as possible √
Accept a share of the revenue (or the business) instead of √
fees
Adapt templates etc from other sites
Use low cost solutions such as Shopify or Magento
Do additional work as revenue starts to flow
Consider outsourcing tightly defined parts of the project
6
Wednesday, 14 December 11

34. Ways of making the project cheaper?
Shopify, Magento √
Get the client to do as much of the project as possible √
Accept a share of the revenue (or the business) instead of √
fees
Adapt templates etc from other sites √
Use low cost solutions such as Shopify or Magento
Do additional work as revenue starts to flow
Consider outsourcing tightly defined parts of the project
6
Wednesday, 14 December 11

35. Ways of making the project cheaper?
Shopify, Magento √
Get the client to do as much of the project as possible √
Accept a share of the revenue (or the business) instead of √
fees
Adapt templates etc from other sites √
Use low cost solutions such as Shopify or Magento √
Do additional work as revenue starts to flow
Consider outsourcing tightly defined parts of the project
6
Wednesday, 14 December 11

36. Ways of making the project cheaper?
Shopify, Magento √
Get the client to do as much of the project as possible √
Accept a share of the revenue (or the business) instead of √
fees
Adapt templates etc from other sites √
Use low cost solutions such as Shopify or Magento √
Do additional work as revenue starts to flow √
Consider outsourcing tightly defined parts of the project
6
Wednesday, 14 December 11

37. Ways of making the project cheaper?
Shopify, Magento √
Get the client to do as much of the project as possible √
Accept a share of the revenue (or the business) instead of √
fees
Adapt templates etc from other sites √
Use low cost solutions such as Shopify or Magento √
Do additional work as revenue starts to flow √
Consider outsourcing tightly defined parts of the project √
6
Wednesday, 14 December 11

38. How much does a day cost?
Suppose a member of staff costs £25,000
National insurance adds 12.8% £3,200
Recruitment adds 15% £3750
Share of rent adds £2,500
Share of bandwidth, computer, desk etc adds £2,500
Other costs (stationary, telephones, travel, £2,500
entertainment) adds
Total other costs (57% oncosts) £14,450
7
Wednesday, 14 December 11

39. Total cost per day around £200
(and remember that billing for every day is hard)
8
Wednesday, 14 December 11

40. programming
(£40k)
project managers project managers
(£30-40k) (£30-40k)
sales Most people cost much
(£60k) more: design
(£30-40k+)
twitter manager
(£35-45k)
creative director
sys admin (£60k+)
(£35-45k)
9
Wednesday, 14 December 11

41. What do most
companies charge?
Blended rates (across all staff)
range from £600 - £1200+
per day
10
Wednesday, 14 December 11

42. Q/A
11
Wednesday, 14 December 11