Retail surgery: Hidden costs when relaunching e-commerce sites

The aim of relaunching a major e-commerce channel will be to increase brand visibility and sales, and improve the customer experience. However, in doing so, many retailers can become preoccupied solely with the creation of a flashy, all-singing and dancing website. Failure to assess how, and ensure that, the wider organisation will fulfil the relaunched website’s promises can be a major stumbling block.

Caroline Woolf, management consultant at global project management specialists PIPC, recommends planning for this and considering any additional costs that may be incurred as a result. She says: “An e-commerce system is only one touch point for a retailer to connect with a customer, but behind that is a machine that has to respond to the greater demands that will be placed on it.”

For instance, if the new website results in more customer enquiries, does the firm have the optimum level of customer service staff to handle them efficiently? Woolf also advises retailers to consider whether the order fulfilment systems – including IT and logistics – have been designed to take increased demand into account.

The biggest mistake retailers make when transforming one area of a business is losing sight of the effect it has on the business as a whole. “Planning the implementation, timescales and budget upfront is the only way to save spiralling costs and customer dissatisfaction at a later time,” says Woolf.