Legacy technologies are holding back retailers – but Open SaaS can free them

Online retailers that rely on all-in-one monolith e-commerce platforms are struggling to adapt to the changing demands of a competitive online marketplace.

Businesses with limited requirements may find that a system that ties together the back end and front end – that, in effect, houses all tech products and applications in one place – works for them.

But for those that are more complex and ambitious, it is a hindrance. Without the ability to be flexible, they find it harder to expand into international markets or adopt omnichannel systems.

It also makes life difficult for the teams using these technologies. Changes to how an e-commerce platform functions can be slow to make, and developers can spend too long on security and maintenance, and not enough on innovation.

Agile platforms that enable businesses to flex and adapt to increasingly pressing customer demands are where retailers will see success.

But although it seems a no-brainer, many businesses are nervous about adopting new e-commerce technology. Retailers that have been using on-premises tech for years know it intimately – after all, it’s how they’ve built their business – and will not want to trade familiarity for the unknown.

The move to a system that allows for flexibility and enhanced customer experience is often seen as too disruptive and too expensive. The fact that the alternative – maintaining things as they are – limits growth is a hard pill to swallow.

Future-proofing e-commerce platforms is vital

E-commerce has changed profoundly over the past five years. Use of online platforms skyrocketed during the pandemic, while at the same time, omnichannel commerce proliferated.

The economic turbulence that accompanied the pandemic prompted many retailers to adopt a cautious approach to spending. But this meant that they weren’t investing in just the thing that would ensure the future health of their business: customer-friendly platforms.

“With omnichannel booming, retailers need help unifying their operations to be able to support multichannel shopping and the fulfilment of those orders,” says Mark Adams, SVP & GM, EMEA BigCommerce. “But without a flexible commerce strategy and solutions that can adapt, it’s next to impossible for enterprises to proliferate growth across channels, regions and segments — particularly during economic downturns.”

BigCommerce is one of the world’s leading providers of SaaS ecommerce platforms. It is driven by a core belief: if a business delays future-proofing their tech stack, they will lose any competitive edge they once held in the market.

That’s proven by the fate of the numerous businesses that went under during and after the pandemic. That experience was evidence of how, as economic conditions become more difficult, customers grow more selective in who they shop with. A business that hasn’t invested in customer experience – believing instead that they need to save in the short-term rather than spend for the long-term – cannot attract customers, let alone retain existing ones.

A key reason for BigCommerce’s successes since the pandemic comes down to a simple innovation: agile customer-centric ecommerce platforms that do not break the bank.

It is driven by a deep understanding of retailer anxieties: as eager as businesses are to make the changes required to build customer loyalty and future-proof their offering, they want low total cost of ownership.

“We offer a rock-solid ROI. I think US and European brands and retailers have got used to conversion rates of around 2% and sometimes that attitude is ‘we can’t do better than that’. We believe more is possible and needs to be, especially when you’re spending so much to acquire that traffic. Low conversion and high spend becomes uneconomical,” explains Adams. “So, our offer focuses on conversion, cost and customer experience, including product data, payment solutions and fulfilment, so you can grow your business efficiently.”

Added layers of security and functionality

As well as being open source, its technology is SaaS, meaning that clients have the extra layer of security and functionality that comes with being in the cloud.

A Finnish manufacturer of electronic devices had recently transitioned to the cloud, but approached BigCommerce with a concern: its platform was still being slow and cumbersome to use. Site changes were difficult to make, and it was ploughing capital into development that could be better spent elsewhere.

It sought a solution with better performance, greater end-to-end control and faster time-to-market.

BigCommerce’s extensive API capabilities meant that it could build a platform that enabled end-to-end architecture and seamless customer experience.

Not only that, but its API-first architecture allowed it to develop its own capabilities that integrated with its brand positioning. Additionally, the regular interaction that BigCommerce’s appointed Technical Account Manager and Customer Success Manager had with the client ensured its continued success.

Ensuring savings and driving profits

The data tells a story of the impact that BigCommerce is having on its clients. According to a recent study that BigCommerce commissioned Forrester Consulting to conduct, it takes just eight months on average to achieve payback on the investments a business makes in BigCommerce’s Open SaaS solution, but the successes grow as time goes on.

Over three years, it enables, on average, $188,000 savings on developer time, and $244,000 on site catalogue and content management. And by retiring legacy systems, clients make on average $774,000 in savings.

But the most significant change comes in the profit margin. The incremental profit clients make from the improvements BigCommerce makes to customer experience on their platforms stands at $6.5 million. 

“Retailers are struggling with the cost of ecommerce acquisition, service, delivery and updating their entire technological infrastructure,” concludes Adams. “They need to ensure that the technology they invest in delivers a high return on investment, a strong improvement to customer experience and increase in conversion rates, particularly when consumer demand is more limited in the cost of living crisis. We are the secret weapon that can help them achieve these goals, accelerate their speed to market, cut costs and drive revenue.”

For more information, visit bigcommerce.co.uk