How to Choose an Ecommerce Agency: Part Two

In part one we discussed the number one thing clients look for when choosing their ecommerce agency: Trust (find it here.) If trust is number 1 on our list, then price has to be number 1(a), after all, you are trying to run a profitable online business.

Price

There is not a perfect formula of “I should spend x percent of my total online revenue on my replatform project” because that would only direct you based on where your online business is now. You should be thinking about where your business is going, or where it ought to be going. To say it another way: you should be skating to where the puck is going, not where it currently is.  

That said, you must be realistic. Ask yourself questions like:  

  • What is my revenue growth projection and how am I going to get there?  
  • If I am planning to spend (x) on my website, do I have the traffic to justify that spend? 
  • If I do have the traffic, will this move help me increase my conversion rate (CR)? 
  • If this move won’t help me increase my conversion rate, will it increase my average order value (AOV)? 
  • If I don’t have the traffic, and it won’t increase my CR, and it won’t increase my AOV, then how will I see my return on investment (ROI)? 

Here’s a little secret: functionality is not everything on an ecommerce website. In fact, unless you can prove that functionality is driving revenue, you should be asking yourself if it is worth having that functionality in the first place. Heck, you could be spending that money driving more traffic to your site either from existing customers or driving new customers through marketing campaigns 

How does this relate to choosing an ecommerce agency? There is an agency out there that specializes in every need you may have. Some are going to have lower rates, some are going to have all their employees in a foreign country, others could be right down the street, and all of those are going to have different pricing structures. You need to decide what is important to you and how those factors are going to change your ROI.  

After you have a good rapport with an agency, and have a good understanding of their price structure, you must decide if their capabilities are the right fit for your needs. 

Be sure to check back in the coming weeks for the third and final installment of our choosing an agency partner series. Until then, contact us with all your questions and to learn more.

Tony Ciarelli

Tony is a Southern California native who enjoys spending time with his family and playing beach volleyball with his friends. Tony’s other interests include listening to the Grateful Dead, watching the Yankees, Lakers and USC Trojans, and hanging out with his wife (not necessarily in that order).