PawnMaster Blog

What’s Your e-commerce Software Really Costing You?

Posted on 27 Jun 2017

header-WhatYoure-commerceSoftwareReallyCostingYou-1.jpgThe term Total Cost of Ownership (TCO) is a big part of the software industry. Whether the pricing model is Software as a Service (SaaS) or annual maintenance-based, many operators don’t put nearly enough effort to understanding what they’re really paying for their software. The model employed at Data Age/PawnMaster has been one that just focuses on offering the absolute best products and services at a reasonable price. We work to understand your business and offer the products that make sense for your business and the pricing you’re comfortable with. Your TCO will always be known up front and won’t fluctuate based on how much you earn or sell, whether you're on our monthly or annual payment plan.

Many software companies have a consumption-based model. This means the end user pays for the software, the modules (typically fixed costs) PLUS e-commerce transactions are charged at some very high percentage points. This can be upwards of 15% of your sale, before shipping. These fees are ofthen referred to as a “success fees”, “marketing fees”, "API fees" or a “revenue share” in the SaaS world.

In comparison, the Data Age/PawnMaster’s e-commerce suite is set up to where you ARE NOT taking a chunk out of the margins on every product you sell online. We charge only for the software and the software is a vehicle for your success. When you’re paying off the top of your sale, you might not initially realize how quickly your costs are adding up.

Let’s Do the Math on the Cost of a Success Fee-Based eCommerce Module

If we start with a lower “success fee” – let’s say 8%... If you sell $100,000 in goods online, you’re looking at $8,000 in fees.  This is in addition to your standard software cost.

Our core belief is to supply our customers with great software that gives them access to millions of consumers and doesn't profit from their hard work. Learn how to cut your eCommerce costs significantly with e-foro integrated e-commerce module.

What are You Really Paying for?

Many B2C (business to consumer) outlets such as eBay and Amazon incorporate their own fees in addition to the "API fees" (mentioned above) some software companies charge. With these platforms, you're paying them for access to their audience. And a lot of times it’s worth it because, where else are you going to gain access to nearly 200-million of the most engaged shoppers?

These B2C outlets understand the secret sauce to selling your items online. They market themselves and their products to people looking to buy, when they’re looking to buy. They work to protect the consumer, sometimes to a fault, but this is to make sure shoppers feel comfortable making purchases from you on their platform. This is important because, without the consumer, there is no sale! Ultimately, these e-commerce platforms have been working for more than 20 years to build and promote their brand in a positive light so YOU can sell more, faster.

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