The Craft Of E-Commerce Budgeting: Beyond The Total Cost Of Ownership (with abstract)

Article published by Forbes and reviewed by Nikolay Sidelnikov


The Craft Of E-Commerce Budgeting: Beyond The Total Cost Of Ownership (with abstract)
Published ByForbes Articles
Publish DateDec 20, 2023
AuthorsEvgeny Grigul
Topics Costs and profitability
Statistics
Article Sizewords
DiagramsNo
Downloadable VersionNo
Reviewers
Page OwnerNikolay Sidelnikov
Summary AuthorNikolay Sidelnikov


Abstract

The article The Craft Of E-Commerce Budgeting: Beyond The Total Cost Of Ownership is devoted to the detailed explanation of real eCommerce total cost of ownership (TCO) structure and drivers.

Businesses actively invest in e-commerce and expect their investments to provide a return. To correctly assess the ROI, it is essential to understand the total cost of ownership (TCO) of e-commerce, including what components it contains and how to manage them. Understanding what systems or operating practices contribute to application costs is also important to make sound financial-management decisions. However, many companies do not clearly understand digital commerce TCO. The article contains some insights on this.

The article describes four major cost categories:

  • The cost of licenses
  • The cost of implementation
  • The cost of operations
  • The cost of innovation

The last point, the cost of innovation (the least realized category of business expenses, often poorly managed by businesses), is explained in detail.

The article also contains some conclusions on how to manage e-commerce costs efficiently.

Full article text: https://www.forbes.com/sites/forbestechcouncil/2023/12/20/the-craft-of-e-commerce-budgeting-beyond-the-total-cost-of-ownership

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