Total cost of ownership (TCO), as the name suggests, is the estimated total cost of a product or system. It takes into account both the short-term and long-term, and both direct and indirect, costs of an investment. Measuring the size of your potential spend in this way can help you estimate the true cost of the investment, and in the case of e-commerce, looks beyond just your expected implementation costs.
You may be asking: why is it important to know the total cost of ownership (TCO) of your e-commerce solution? Here are a few things you should know:
- According to Forrester, 43% of companies underestimate the TCO of their e-commerce solution.
- To do so correctly, however, experts estimate that you should calculate your e-commerce TCO over a 5 year period: after which you should upgrade or re-platform your e-commerce experience.
Why Do You Need a TCO Calculator?
It’s often the ongoing or hidden costs of running an e-commerce solution that businesses don’t think to consider. These costs include web store and data maintenance, support costs, ongoing hosting fees, and many other expenses that are required to run a quality e-commerce experience.
Want some clarity? With just a few bits of information, you can estimate your e-commerce TCO by using our tool:
Calculate Your E-Commerce TCO
Beyond the Calculator: What’s Next?
When you start an e-commerce project, understandably, a large chunk of your budget will be spent just getting it off the ground. But even these costs can vary depending on the type of e-commerce solution your company has chosen, and on your company’s changing business needs.
If you’ve used the calculator above, and want to chat about how Sana Commerce can help you achieve your e-commerce dreams with a lower TCO, talk to us.
If not, answer the five questions above and get the right insights ahead of your next e-commerce investment.