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April 2013

Running an Ecommerce business requires managing a complex ecosystem of functions and processes.

With a multitude of options, the process of selecting an Ecommerce partner can be an overwhelming and intimidating task. Remember that the cost of lost business and misdirected internal focus resulting from poor implementation will be significant!

So, what does it take to successfully choose an Ecommerce partner?

This presentation will take you through a process you can use to break down this selection into manageable steps.

Ensuring Success

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Avoid common pitfalls that befall other companies in the process. It is a mistake to shortcut the decision-making and select partners simply based on:

•Price

•The partners your competitors choose

•Flashy presentations and visuals

•Salesperson charisma

•Availability and geography

Finding the right partner is not a one-size-fits-all process. This requires a more proactive approach…

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Understanding Common Pitfalls

Remember: This is not about the PERFECT provider.

It’s about finding the best FIT for the priorities, strengths and goals of your business.

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It’s All About the Fit

1. Start with an internal assessment

2. Construct an effective RFP

3. Assess the people — yours and theirs

4. Select your partner through a structured analysis

We’ll take you through the key components of each step.

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Four Key Steps

This will build alignment on key strategic issues and priorities.

Begin by asking your team these key questions…

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WHAT ARE OUR CAPABILITIES AND STRENGTHS?

What are our core competencies? To add the most value, evaluate what you should maintain internal ownership of and your areas of expertise.

Where do we need added expertise?By outsourcing tasks not within your core competencies to subject matter experts, your company can focus on the most important internal tasks.

What partner attributes will best complement us? Define what is most important to you in a partner as it relates to your internal strengths and weaknesses.

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Step 1: Internal Assessment

WHAT ARE WE WILLING TO COMMIT?Have an honest discussion about what and how you are prepared to commit.

How sophisticated and expansive a solution do we need?Be realistic about what you need at launch to achieve your business objectives in relation to what can be rolled out over time to develop a phased approach.

How much upfront investment can we make, and what are our growth expectations?This will help you focus on partners with a business model that can support your sales and profitability goals.

What internal resources do we have to manage the business?A realistic assessment of how many different external partners you can manage will help narrow down your partnership selection—the decision between managing a team of experts vs. a one-stop shop.

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Step 1: Internal Assessment

With your specific strengths and priorities in mind, you will have the foundation to implement an effective RFP.

This will highlight the key differences of potential partners on all the criteria that are important to your company.

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An effective RFP will gather all the necessary details about whether or not a potential partner has the core competencies and subject matter expertise to deliver a strong, value-added solution.

The goal here is to determine if your potential partner has:

•The know-how that is relevant to your company and industry

•A service offering that complements your internal capabilities

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Step 2: Construct an Effective RFP

Equally important is to determine if potential candidates have the critical qualities necessary to become a trusted and effective partner to your brand.

They should be:

•Business oriented

•Problem-solving and flexible

•Transparent and specific

•Focused on results

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Step 2: Construct an Effective RFP

Regardless of your business, all RFPs should include five key elements:

1.A clear outline of your priorities and objectives

2.A description of your corporate culture and a request for potential partners to provide the same

3.Questions that are narrow and specific — the more specific the better!

4.Questions that ask potential partners to clearly outline what success looks like, how they will get there and how they will measure it

5.A request for case studies

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Step 2: Construct an Effective RFP

Remember that an RFP is just one pieceof the exploration of potential partners.

Assessing WHO you will be working withreinforces that you are hiring PEOPLE and not software.

Your solution will only be as good as the people who execute it.

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PROJECTING THE WORKING RELATIONSHIPTo get a stronger sense of what working with potential partners will be like on a day-to-day basis:

•Meet the people who will be doing the work, not just the sales team and senior leadership

•Go onsite — visit potential partners at their offices to get a sense of their energy and culture

•Prepare diligently for client reference calls

•Talk to other service providers that have experience working with your potential partners

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Step 3: Assess the People

Ask questions to assess three key criteria:

#1: PROMISES VS. REALITY Does reality match up with promises made in the proposal process?

Contact client references and other industry contacts to determine:

•Do they deliver what is promised and do they meet expectations?

•Do they complete tasks on time and on budget?

•How responsive are they when problems arise, and how do they solve

them?

•Is the team consistent and reliable?

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Step 3: Assess the People

Ask questions to assess three key criteria:

# 2: THE TRUST FACTORWill they be a trusted partner that will fit well with your team?

When you meet the team in person, evaluate the following:

•Does their professional approach feel like an extension of your team?

•Does the energy in the office and of the team members feel dynamic?

•Are their “A-Level” players a part of your team?

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Step 3: Assess the People

Ask questions to assess three key criteria:

# 3: EFFECTIVE COMMUNICATIONS AND RESULTSWill they be a trusted partner that will fit well with your team?

In the course of your interactions, evaluate the following:

•Do they bring new, business-driving ideas to the table?

•Do they proactively and clearly communicate how things will get done, and at what cost?

This assessment process will likely result in some of the most crucial insights that determine your final selection.

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Step 3: Assess the People

You now have all of the key inputs to make a final decision.

While costs and budgets are certain to be primary considerations, include all the critical elements of a successful partnership when making your final decision.

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Throughout your process—from the RFP to follow-up calls to what others say about them—the ideal partner will have demonstrated essential qualities:

•Ecommerce expertise and the ability to add value to your business and team

•Explicitness and transparency (boilerplate answers should be a warning sign!)

•Processes that are responsive and solution-oriented

•Their clear vision of how to accomplish your goals and a specific game plan to make that a reality

•Client testimonials and case studies that demonstrate results

•Cultural fit that complements your team and extends its capabilities

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Step 4: Structured Partner Analysis

QUANTIFYING YOUR INFORMATION

•List the major qualities that you wish to evaluate across all partners

•Assign weights to each quality in accordance with its relative

importance

•Score all potential partners using a numerical scale (0-10).

•Calculate weighted score for each quality (Score * Weight).

•Calculate final quality score for each partner (Sum of weighted

scores).

Next, We’ll show you an example….

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Step 4: Structured Partner Analysis

QUANTITATIVE SCORING FOR A POTENTIAL ECOMMERCE PARTNER

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Step 4: Structured Partner Analysis

This is only a partial presentation of how Weighted Criteria Evaluation is applied to the selection process. If you want to learn more about the factoring of weighted price vs. quality across multiple vendorsplease refer to our in-depth Whitepaper on Choosing an E-commerce Partner - How To Succeed

Outline key pros and cons of each potential partner to:

•Clarify what internal capabilities you need to manage the relationship with your final choice

•Serve as a more qualitative complement to the scoring process.

NOW YOU ARE READY TO MOVE FORWARD!

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Making a Final Decision

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In Conclusion…

Whether you are looking to enhance your existing

e-commerce channel or just getting started and

wish to build a strong e-commerce business, you

must be on the search for a long term relationship.

Orient yourself towards an e-commerce PROGRAM,

not just a one-time project. And remember - don’t

be looking for the “perfect” partner but one that is

best in FIT for your company.

 

We welcome you to challenge us with all of your

unique

e-commerce needs and considerations. We will be

sure to respond with a personalized approach,

letting you know how we can be that long-term

partner of your choice.

Please call us at 212-334-3390 or email us

at Sales@EcommercePartners.net for more

information.