Creating an ecommerce venture entails more than just uploading merchandise on the Web. Once the store reaches certain critical masses, there is need for tech, personnel and strategies that will convert visitors into revenues for the business. It is here that the distinctions between ecommerce platform, ecommerce agency and managed growth partner become relevant.
Each one solves distinct issues. Ecommerce platform gives you the tech framework. The typical ecommerce agency will provide expertise in one area, whether development, design, marketing or strategy. But the managed growth partner plays much closer to your daily operations and offers tech, execution, optimization and growth management among other capabilities.
This knowledge should help businesses avoid buying services that they don’t need or failing to see those that they may actually need.
An ecommerce platform is the technological base used by a company to set up an online store. Ecommerce platforms usually contain all the functionality that enables you to establish a storefront and perform ecommerce processes such as product management, inventory, orders, payments, marketing, and reporting.
In case your business is newly established or still growing, an ecommerce platform allows you to avoid building each piece of infrastructure on your own. The platform takes care of the infrastructure while you take care of decisions like which products to sell, how to market them, how to price and brand them.
Depending on the platform, the business will have access to:
– Storefront design and customization;
– Product and catalog management;
– Variants and SKUs;
– Inventory management;
– Order management;
– Payment processing;
– Mobile-friendly checkout;
– Marketing and promotion tools;
– Analytics and reporting;
– SEO capabilities;
– AI or automation capabilities.
The important thing to note here is that an ecommerce platform is essentially a technological solution. It can make ecommerce management easier, but it doesn’t necessarily replace business decisions.
An ecommerce agency is an organization that assists businesses in solving their particular ecommerce problems. An agency can focus on web design, ecommerce development, SEO, paid advertising, branding, content, conversion optimization, or digital marketing.
For instance, a company could work with an ecommerce agency to revamp its website, change from one platform to another, enhance its technical SEO, run an advertising campaign, or create a unique ecommerce solution. The agency normally has some specialization that the company does not have.
An ecommerce agency would come in handy where there is need for:
But the exact services needed can vary greatly from one agency to another.There are those that deal with tech services while others specialize in marketing services and there are others whose scope of work is wider than the others’. This means that one must determine the business challenge first.
A managed growth partner is more holistic.It does not just involve technology or just a particular service; rather, it involves making sure that the ecommerce business continues to operate, improve, and grow.
The difference is crucial.
A platform provides you with the resources.
An agency provides you with the expertise.
A managed growth partner may be able to blend technology, operations, optimization, and growth execution into a more holistic process.This will vary by company, but the general goal is to minimize the difference between having ecommerce capabilities and leveraging those capabilities.
Think about a company that has its online store up and running but is having trouble with updating their products, merchandising, acquiring customers, analysis, and conversion rates. E-commerce solution will offer all the necessary infrastructure.
The agency may offer solutions to certain issues, like SEO optimization or remodeling of the store. A growth partner would see a bigger picture and align all the technologies, processes, marketing, and optimization efforts with the company’s growth goals. It doesn’t mean that one approach is better than the other in general. It all depends on what level of expertise and execution skills there are within the company itself.
There is a widely held belief that picking the right ecommerce platform will naturally result in growth. Technology is important but only one piece of the puzzle. It is possible to have a visually appealing website that does not grow due to the following reasons:
Owners of the business are unaware of what metrics need their attention . The platform gives you the tools. You still need a way to make money from them. Here is where the value of constant expertise comes in.
When there is already a capable internal team in place for the business then an ecommerce platform could be all you need. For instance, a D2C brand could have individuals dedicated to merchandise, marketing, content, customer support, operations, and analytics.
In such a case, all that is required by the business would be technology that will ensure efficient performance.
There may be instances where an ecommerce agency could be the right choice. There may be a situation where a company may already have an ecommerce team but requires external support for website redesign or SEO work.
Likewise, there may be instances where an organization has its internal marketing team but lacks the technical skill set for migrating to ecommerce. In such cases, an ecommerce agency provides targeted help without having to build internal capabilities.
A managed growth approach becomes increasingly relevant where ecommerce-related tasks have become too numerous for an internal team to handle effectively. For instance, think of a growing brand that is managing:
The problem is not just about building the website anymore. The problem is about aligning all these tasks consistently. A managed growth partner can help businesses achieve this alignment, as long as the partner’s scope encompasses the areas the business needs help in.
The selection process must take into account your current state. Young companies may require a platform that is easy to use and enables fast and independent management of the basics. Companies in development may require better catalog management, analytics, marketing capabilities, automation, and professional help.
More developed companies may require the combination of advanced technologies, internal teams, specialized agencies, and strategic partnerships. The important issue is not “What is the best approach?” but “Where is the weak point in our ecommerce business?”
Idiocom is marketed as more than a typical online storefront builder. The bigger picture includes a combination of storefront building, product management, inventory, orders, marketing, analytics, AI-driven catalog capabilities, and ecommerce growth solutions in one ecosystem. This puts the platform in scope for companies that wish to take care of more parts of their ecommerce process via a technology-based ecosystem.
When it comes to a managed growth process, the technology layer remains important. Managed growth becomes simpler when the storefront, catalog, inventory, orders, marketing, and analytics are not entirely separate from each other. The value is not in having more features. The value is in having an ecosystem that can sustain the company as ecommerce needs get more complicated.
Before deciding whether to go with an ecommerce solution provider, agency, or managed growth partner, consider five key factors:
The answers to these questions will tell you what kind of help you really need: technology, expertise, or management.
Ecommerce platform, ecommerce agency, and managed growth partner cannot be used interchangeably as each one deals with various stages of the ecommerce business cycle. Technology is offered by the platform. Specialized expertise is offered by the agency. And a managed growth partner offers continued guidance regarding the execution and optimization of the ecommerce process.
To businesses experiencing growth, the choice of solution must be based on an issue first and foremost. Determine which aspects you will be able to manage internally, which ones would require specialized expertise, and the various ecommerce tasks that demand continued efforts from your end. With a proper combination of technology, manpower, and processes, your ecommerce business can be simplified for today, while getting ready for the future stage of growth.
Are ecommerce platforms and ecommerce agencies the same things?
No. Ecommerce platforms are about providing technical solutions for running ecommerce businesses. While ecommerce agencies offer various services to businesses including development, marketing, SEO, design, and consulting services.
Can an ecommerce platform replace an agency?
Sometimes. If a business has strong teams, it might be able to run its ecommerce operation through the platform without hiring an agency.
What services can a managed growth partner provide?
Services of a managed growth partner may differ depending on the company. However, in most cases, it provides ongoing support of the ecommerce business growth and operation rather than completing just a specific technical project.
Do all small businesses require an ecommerce agency?
No. Not all small businesses may require agencies. Some businesses have a fairly simple operation and can run the business on their own using platforms.
Can a business use all three at the same time?
Yes. A business can use the platform to build its tech foundation, and hire an agency and managed growth partner as necessary depending on what needs to be done.
