CXM Advice: Selecting the Right eCommerce Platform

By Peter Caparso (@PCaparso) Nov 17, 2011

Online customers want faster, more convenient and completely secure transactions. A globalized economy demands payment systems that cross borders and supports diverse payment types. And fraud losses continue to be a growing issue for most merchants. With a constantly changing eComm landscape, many mid to enterprise-level organizations are finding it difficult to select the right eComm platform for their business. The key to the selection process is focusing on solutions that are flexible, secure and designed for growth. By doing so, merchants can be confident their eComm platform will meet their organization’s needs, today and in the future.

Buy or Build

The decision to build an in-house platform or select a hosted payment solution must balance the need for customization, security and cost. Companies that develop in-house systems often cite the need for complete customization and security. The in-house development process, however, comes with significant upfront development costs and longer implementation times. In-house developers must also be prepared for ongoing security and compliance responsibilities, which can be time consuming and costly.

For companies not willing to invest in a customized solution, hosted payment platforms have been proving that they can meet the need for fast, accurate and secure customer transactions. The primary advantages that hosted solutions offer include speed of implementation and significantly lower upfront costs. Hosted solutions also leverage the financial and payment expertise of the payment provider, which can free up in-house IT resources for more strategic activities. There can be a downside, however, if you select a hosted platform that is not fully PCI compliant or does not provide the flexibility needed to maximize buyer conversion and accommodate future growth.

Secure and Compliant

Whether you build or buy, security and PCI compliance should be your most important selection criteria. More than 67% of online merchants were affected by fraud in 2010. Evolving online fraud has led to a staggering (and costly) regulatory burden for merchants as governments attempt to protect buyers.
For companies evaluating new eCommerce platforms, immediately eliminate any platform that is not fully secure and PCI compliant. With fraudulent transactions costing millions annually in lost revenue and fees, merchants cannot take the chance on a platform that does not fully protect company and customer data. Carefully evaluate each solution to be sure it addresses identification, access control, data encryption and authentication and non-repudiation issues. Beyond PCI compliance, look for a platform that also allows for real-time fraud screening and fraud countermeasures. Leading eComm platforms now provide real-time, dynamic fraud detection and risk mitigation tools that allow each business to adjust its fraud settings based on its unique market situations. By taking advantage of real-time fraud tools, merchants can shape a risk detection strategy that specifically fits their business, product and customer demographics, while also allowing for maximum market penetration.

Customization is Essential

ECommerce platforms vary greatly in terms of flexibility and customization. Online payment technologies have advanced sufficiently so that merchants can now expect a high degree of flexibility and customization for a reasonable cost. Only consider platforms that allow you to integrate the payment processes seamlessly with the rest of your site. Also evaluate each platform’s ability to modify different payment pages for different uses (e.g. by country, product, currency, etc.). Do not choose any platform that locks you into the provider’s payment processes; instead, select a platform that allows you to modify the process, depending on the needs of your own shoppers. Finally, consider whether you can make dynamic changes in real time and how easy it will be to modify the platform; solutions that require significant development support from the vendor can lead to additional costs and slower response times.