How to Develop an Ecommerce Software Product with an Agency

• By Anna Chubatiuk
• 08-08-2022
• E-commerce

Building a new ecommerce software product or a web store can be overwhelming, especially when considering the step-by-step process. In this case, getting help from a digital agency might be your potential direction. With 6-year experience of developing ecommerce software, Grinteq shares secrets on how to select the best vendor for your software project, and make the process smooth and efficient.

When is the right time to hire an ecommerce digital agency?

Based on global industry analysis data the ecommerce software market is rapidly growing and is forecasted to reach USD 20.4 billion by 2028. It is already a well-known fact that ecommerce development has been one of the fastest-growing business areas and has a lot of potential for the future. Worldwide famous brands now look for vendors who are able to help them handle the technical part of their digital commerce. Here are some reasons why.

The main reason is the lack of expertise in ecommerce when it comes to technical issues and development, as the industry is young. Nowadays, companies are looking for senior professionals who are ready to build excellent websites that attract new customers and help retain those already involved.

In the US senior developers are pricy, so talent sources now tend to look for a cheaper workforce on other continents. Engaging with a digital agency brings positives like handling the search for preferred candidates and ensuring hiring on their side.

Small outsourcing companies are a great choice in terms of money spend, but not when it comes to qualified candidates. Such companies have a limited amount of specialists they can offer, which means that their expertise may simply not be enough to handle the workload. Alternatively, going for external full-cycle assistance covers it all: it involves maintenance, support, design development, QA testing, and so on. Apart from a quick improvement of your existing team, it grants the company rapid deployment performance and the achievement of predictable outcomes.

How to select the best software developer?

The most effective way to search for software developers is to simply look at multiple B2B catalogs and pick the ones that have the best client reviews, rates, and portfolio.

Below are some tips aimed to help you decide on an engineer or company for your particular needs.

1. Explore the background and portfolio

Even if you discover a great company, what is the point if they never developed a similar project? Ask for a relevant portfolio to see the actual cases before making up your mind.

Some companies do not show all works from their portfolio on the site. Some prefer to show off just the best ones, while others simply cannot reveal the work due to the NDA (non-disclosure agreement) compliances. This is why it makes sense to tell your potential partner more about your future project so that they can share the complete portfolio demonstrating similar experiences.

This way, you do not spend your time on those who are not a match right at the beginning of the choosing process.

2. Check culture compatibility
It is essential to make sure the vendor is an excellent match and will fulfill the requirements' specifications right away. To prevent any misunderstandings, hop on a few intro calls and ask questions about how they visualize future cooperation. Staying on the same page will create a comfortable atmosphere and ensure that everybody acknowledges and works according to the work ethics adopted by your business.

3. Describe the project specifics
Since you settled on selecting a remote development team, it is vital to inform the potential vendor on all valuable details of the project.

Do not hesitate to sign an NDA from the very beginning to guard the confidential information.

4. Explore additional services provided by the developer
Some IT services companies concentrate on one kind of service, like design or testing; others offer end-to-end delivery support, including consulting.

Consider your end goal and choose the option that would fully fit your criteria. It is undoubtedly much trouble-free to go with the company that is ready to cover all your needs.

5. Don’t limit yourself to one idea only
Hiring great professionals means they not only fullfill their “sighed-for” duties, but also can suggest additional improvements and alternatives, adding value throughout the working process.

Besides, agencies that develop ecommerce software usually partner with other ecommerce service providers, which allows you to quickly find more reliable vendors, from payment integrators to digital marketing agencies.

What is the workflow of developing software with a digital agency?

Each company has its own approach to work; however, the onboarding happens to be more or less similar everywhere.

1. Write down a comprehensive specs paper
The specs document appears to be the essential thing to remember. It will be the guide that the project manager turns to regarding the details of the project and all the necessary requirements.

The specs document lists all the capabilities that have to appear in the final solution and includes answers to the following questions:

How does your product suppose to work?
What attributes should be included?
What are some of the options and the value your solution should provide to the end-user?
What about the look of the software product?
How would the end-user interact with the product?

2. Arrange an intro meeting with your new team
A discovery call, also known as an intro meeting, is where you get to know each other, ask questions and plan further actions. Be transparent about your needs and expectations, so that your future developers clearly understand them.

3. Share your specs sheet and get the estimation
The specs sheet is not only helpful in terms of getting the information. The project's estimated price will depend on what’s there. After getting the estimates from a list of previously selected vendors eager to start your project, evaluate all the advantages and disadvantages and finalize who suits you best.

4. Talk about the terms of the agreement
Before launch, make sure to discuss the terms of the agreement. Even if you feel like it is common sense and you already brought it up to the partners, do not hesitate to run through one more time, as it will help avoid any future issues.

Give one more glance at the project costs provided by the vendors. Usually, companies have some free space in their pay rates or can suggest added services at a lower price. It is also a time to bring up the workflow, deadlines, and any white spots.

5. Development operation and QA
Software development procedure tends to look similar in most cases. It all kicks off by discussing your needs and budget, and then the team moves on to make a pre-project estimation and go with the actual design and coding.

A good practice here is to arrange recurring meetings with your new team to review the pace of the process. Besides, if you see that your project is lacking something, communicate that to the engineers so that they make improvements in time.

The development phase usually takes about 2-8 months depending on the the scope and any possible complications during the project. If the product implies customization and requires an integration of additional services, the job may take longer.

Once the developers are done with their part of the task, it’s time to give it to the QA (Quality Assurance) engineers, who will test the product and detect the bugs that may appear along the way.

Make sure to select a vendor that provides testing. It may seem like it is not essential, but it’s actually all worth it in the end. Sure, the price will be a bit higher, but soon you will spend that money on fixing the problems that appear for customers. It may also influence the sales and the brand reputation among your buyers.

6. Support and site maintenance
Post-project support is subject to the agreement that you’ve decided on at the beginning. You agree with the agency on a specific number of hours that they will dedicate to your project once it’s alive. Agreeing to a regular check-up may be beneficial.

How much does it cost to build an online store?

If you’re to create an entirely new online store from scratch, it is a little pricy. So, let’s count all the costs to see what to expect.

1. Platform usage
The price here typically relies on the functionality and capabilities of the chosen platform. For example, the usage of Shopify may vary from $29 to $299 monthly based on the package. The minimum check is around $2000 per month when buying a Shopify Plus license. You would also need to pay 0.25% of your monthly revenue when it equals to or exceeds $800K monthly.

Adobe Commerce (Magento) ranges from $40K to $125K per year, while three-year usage of Salesforce Commerce Cloud will add up to $530K.

2. Web design and software development
To cut the costs, you can consider outsourcing a part of the development process. For instance, the same company does not have to do the design. If that way you can save money and reach the goals you set, go for it. Though, the safest way is to appoint a vendor who will take care of the whole operation from A-to-Z.

If you'd like to fully manage the process, going with a remote development team might be a solution for you. In this case, you get a group of employees who act as part of your internal staff for some time. You have daily meetings, ask questions, share feedback and treat them as you treat other employees. There is no need to worry about administrative issues, it is usually handled by the agency that developers are working with initially.

3. Website maintenance
Marketing is an integral part of each business, so you should consider all the maintenance costs, analytics, website support, SEO tools, and security ahead of the process. This way, you won’t have to deal with unpredictable expenses.

4. Transaction fees
The transaction fees are one of the things people tend to forget about and have to be reminded of later once the paycheck comes. The cost is strongly connected with the platform used: the charge for a payment gateway (PayPal, Stripe, Shopify Payments, etc.) is around 3% + $0.30 for a transaction. Take into consideration that the total costs don't cover the service or bank transfer fees.

5. Hosting
When it comes to hosting, there are two types of platforms: SaaS and self-hosted solutions. Hosting is generally an area where the website files are hidden, and each site must have it along with a unique domain name.

When choosing a hosted solution (SaaS), you need a developer who takes care of the server maintenance, upgrades, and so on, so the hosting spending is added to your overall check. Some examples of SaaS ecommerce platforms are Shopify, SFCC, BigCommerce, and others.

Another way out is a self-hosted solution, which enables ownership and management of the server on your side. Here, you would just have to purchase an SSL certificate to protect user data. WooCommerce and Adobe Commerce allow you to choose any hosting and be independent of a centralized service.

Summary
To conclude, defining a clear goal is the essential step to take before starting the process, and it will help you to clearly understand what kind of product or solution you want to receive at the end. Next, knowing what exactly you aim to achieve will simplify the choice of an external vendor, based on their experience. Working with an agency has tons of benefits - from cost-cutting to providing access to senior development talents. Follow the steps presented above to help you come up with what might be the next innovative solution on the market.