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Page 8 of 21:

Test Drive and Get References
To help you sort through the many options, you can "test drive" the software before you buy it. Most vendors will allow you to demo their software (if not, that's a red flag). They either have a model store set up that you can access, or some other way for you to poke around the controls.

Don't plunk down your money until you've really opened up the hood and gotten a feel for the software. You'll be spending a lot of time with it.

While you're investigating, get references. The only way to find out the truth about a platform is to ask people who use it - and not the people the company recommends. Find a user who isn't on the official list, and ask them how they feel about the platform.

 

The All-In-One / ASP Trend
One key concept to be aware of: some e-commerce platforms are "all-in-one" solutions that provide everything: hosting, accounting tools, Web analytics, even marketing tools like e-mail management. In contrast, some platforms are just the core e-commerce platform itself, and you buy the other tools from separate vendors. Adding confusion, some platforms are in-between; they include, say, hosting and the basic e-commerce software, but you shop elsewhere for the rest.

The all-in-one solution has become ever more popular with online merchants in recent years. The advantage is that A) someone else has done the homework of gathering all the needed tools into one handy package, and B) all the tools are integrated, so they work well together.

As a related concept, some vendors of e-commerce platforms license their software on an "ASP" basis. ASP stands for "application service provider." This means the software seller hosts the software on their own servers, and the online store owner accesses it remotely. This way the store owner doesn't have to worry about servers going down (hopefully). Also, ASP vendors tend to offer a lot of hand holding in terms of maintaining the store owner's software.

The e-commerce industry is moving toward platforms that are all-in-one solutions offered on an ASP basis. This frees the store owner from technical concerns as much as possible. It allows e-tailers to concentrate on selling and leave the technical snafus to someone else. An online merchant who licenses an all-in-one solution on an ASP basis doesn't need to hire tech people — a huge savings. The salary of a tech person can buy a lot of pay-per-click advertising.

But don't let the trend toward all-in-one be your deciding factor. You might buy an inexpensive stand-alone platform, find a cheap place to host it, and you'll be off and running. If you're truly a small fry who's tech savvy, you might not need a tech person very much.

One more thing: you might be successful. If that happens, your software platform must be able to grow with you. In industry lingo, it must "scale," as in "scale larger." Don't be seduced by a platform whose initial price is low, but that won't scale. When your business grows you'll be stuck with a platform that's too basic. And it's really a hassle to change your software platform once its in place.

The general rule: buy as much platform as you can reasonably afford upfront. Get a platform that can grow with you.

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