1. eCommerce Platforms:
an introduction
Ben Adams
Founder & Director
www.function22.co.uk 1

2. What is an eCommerce Platform?
It is a software technology solution that allows you to build storefronts
(a storefront is any customer or business facing proposition relating to the selling of
products and services)
eCommerce Platform
Website In Store
Facebook
store
Mobile app Call Centre
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3. The big eCommerce platforms
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4. What types of solutions do they offer?
Some vendors offer fully integrated platforms whilst others pre-integrate with external
solutions
(Pre-integrated means that one solution can be plugged into another with very little
development effort)
Fully Integrated
ATG
CMS
PSP
PIM
Social
Mash up
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5. What are ecommerce platforms made of?
They are usually based on a common programming language
(Java is becoming the most widely used programming language to build eCommerce
platforms because of its object based, standards based nature)
Java PHP .net
eCommerce Platform
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6. How do you build storefronts with an eCommerce platform?
You use a set of developer tools, processes and frameworks provided by the
eCommerce platform
(an API is an Application Programming Interface, it is a set of building blocks that a
developer can use to create functionality on a storefront)
Developer framework
APIs Data models Business logic
Development
environment
Server side
scripts
Integration
framework
eCommerce Platform
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7. Integrated Development Environments
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8. How do you deliver an eCommerce platform on the web?
You host it yourself or on the Cloud
(The Cloud, is a worldwide infrastructure where hosting and software is delivered ‘on
demand’ over the internet)
On-premise On Demand
Host in your building
More control
Know where your data is
Hard to scale
Host it in the Cloud
Low set up costs
Easy to scale
Potential data and security issues
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9. Who builds the storefronts with the eCommerce platform?
It depends on your implementation model
(an SI or System Integrator is a Third Party company who specialise in the building
eCommerce platforms for clients)
In-house Outsource
Build a development team in your business
More control and flexibility
Potential issues around quality
Hard to find resource
Get an SI to do the build for you
Less control and more fixed scope
Usually better quality
On demand resource
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10. Big SIs
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11. How does the business use an eCommerce platform?
Using as set of business tools provided with the eCommerce platform
(Product management means how you manage your product information, both for
business purposes and customers)
Business Tools
Product
management
Merchandising Pricing
Promotions Personalisation Search
eCommerce Platform
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12. Business Tools
ATG Business
Control Centre
Demandware
Business
Manager
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13. What is happening in the market?
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14. Lots of replatforming
Most of the large retailers are either looking at new platforms or already replatforming
to enhance and future proof ecommerce and multichannel offering
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15. SaaS / Cloud eCommerce is gaining ground
Retailers are realising the benefits of Cloud and SaaS – low total cost of
ownership, roadmaps, less IT involvement
Custom Licensed Managed SaaS
Component, CPU
based pricing
Rolled-into-one usage
based pricing
More retailer
involvement
Less retailer
involvement
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16. Margins are being squeezed
Historically platform vendors made money out of license fees. Now SaaS is upon us, they
have to look at other margin makers, e.g. consultancy
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17. Acquisitions for fully integrated solutions
Money is to be made in full service solutions and not individual offerings
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18. eCommerce is becoming less about just websites
Storefronts are not just websites now. Regardless of channel or interface there should be
the same common, master solution and common customer experience.
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19. Hybrid development models
Development models are evolving from traditionally outsourced or in house to a hybrid
model
SI
In-house
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20. Open Source Frameworks & pre-integrations
The open source community is gaining traction with backing from major SIs and
technology providers
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21. International
International is the buzz word. Retailers are looking to expand their offering to
international markets through cross border selling or international websites
Sweden
105 stores
Switzerland
Insurance
Fixed line
Portugal
154 stores
UK
820 stores
Ireland
76 stores
Spain
443 stores
The Netherlands
187 stores
Belgium
83 stores
Germany
216 stores
France
332 stores
BEST BUY EUROPE
2,500 stores
12 eCommerce businesses
2 million UVs/wk
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22. Mobile Matures
Mobile selling has become a standard feature of any ecommerce platform
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23. Commerce gets social
eCommerce vendors are investing in social capabilities in order to drive customer
engagement through social channels
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24. What about the future?
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25. Facebook evolves into an eCommerce platform?
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26. Retailers exploit their bricks and mortar infrastructure
Customer can buy online and collect in store
Customer can sell their own product online and post in store via Tesco fulfilment
network
Suppliers can build their own stores on tesco.com and customers collect in store
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27. eCommerce becomes ‘commerce’
eCommerce platforms become retail commerce platforms
Everything everywhere
Departmental functions become blurred
Heads / Directors of commerce
Holistic view of purchasing cycle
Differentiation becomes customer experience and operational efficiency (not platform)
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28. Ben Adams – Founder & Director
ben@function22.co.uk
/in/benjadams
@function22uk
Thanks for listening!
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