Total Cost of Ownership: Shopify Plus Vs Salesforce Commerce Cloud

At an enterprise level, merchants seek a platform that does more than just help them scale. Scaling has already been achieved, now the merchants need a platform that helps them better optimize operations, drive innovation, and enhance profitability to maintain the scale, all while maintaining cost efficiency.

 

Analyzing the Total Cost of Ownership (TCO) of an e-commerce platform goes beyond just the subscription or licensing fees. TCO encompasses every financial aspect involved in implementing, maintaining, and operating the platform throughout its lifecycle. A thorough analysis of these costs enables enterprise merchants to make strategic, data-driven decisions that align with their long-term financial and operational goals.

 

When evaluating platforms for migrating existing services, two dominant players stand out: Shopify Plus and Salesforce Commerce Cloud. 

 

While both offer distinct functionalities tailored to enterprise needs, merchants frequently opt for Shopify Plus due to its more cost-effective Total Cost of Ownership (TCO) when weighed against expenditure and returns.

 

 

 

 

In fact, in an article by Shopify, states that Shopify’s TCO is on average 35% better than Salesforce Commerce Cloud. If you’re looking to calculate your TCO before moving to Shopify Plus, Shopify also has a TCO calculator to help you along the way.

 

Similarly for Salesforce, Nextian suggests that for every $1 spent on licensing annually, an additional $0.75 to $1 will be spent on implementation.

 

Over 60,268 websites are on Shopify Plus and 7,554 websites are on Salesforce Commerce Cloud, so it's natural to ask, what makes Shopify with its enterprise-grade solution, Shopify Plus, the preferred choice for enterprise merchants?

 

 

 

Platform Fees and Licensing Costs

 

 

 

 

The first cost factor merchants assess under TCO is platform fees and licensing costs. While these may appear marginal compared to other expenses, a lack of transparency can lead to significant long-term financial implications.

 

On average, Shopify’s platform costs are 23% better than those of their competitors. Shopify Plus offers a transparent pricing model, starting at a flat rate of ₹1,90,000 per month for a 1-year term or ₹1,75,000 per month for a 3-year term with a variable platform fee for more complex business structures. This structure provides predictability, allowing enterprises to forecast expenses accurately. Shopify Plus’s pricing plan also provides access to tools such as:

 

• B2B on Shopify

• Headless commerce

• Shopify POS Pro

• Checkout extensibility

• ShopifyQL Notebooks

• Shopify Functions

• Shopify Markets

 

In contrast, Salesforce Commerce Cloud's pricing is less transparent, often requiring businesses to engage in detailed consultations to determine costs tailored to their specific needs. This variability can introduce uncertainties in budgeting and financial planning. If you head to their website, you’ll be able to see the following structures under their Commerce Cloud pricing plans:

 

• Commerce Cloud Growth, for growing companies selling to businesses billed annually on 1% Gross Merchandise Value

• Commerce Cloud Advanced,for mature companies selling to businesses billed annually on 2% Gross Merchandise Value

• Commerce Cloud B2C Premium for businesses selling to consumers billed annually with pricing on request

 

Implementation and Setup Costs

 

 

 

The initial phase of adopting an e-commerce platform involves significant implementation and setup costs. These include expenses related to front-end design, back-end development, system integrations, and data migration. 

 

Shopify Plus is renowned for its streamlined setup process, often resulting in lower implementation costs compared to its competitors. On average, Shopify’s implementation costs are 33% better than other platforms while Salesforce is 16% higher than Shopify. 

 

Salesforce Commerce Cloud, on the other hand, being a highly customizable platform, demands extensive development efforts, prolonged integration timelines, and specialized expertise. Enterprises often need to engage Salesforce-certified developers and implementation partners, significantly increasing upfront costs. According to an article by Bacancy Technologies, the average Salesforce implementation cost ranges from $75,000 to $150,000. 

 

Additionally, data migration and customizations in Salesforce Commerce Cloud can take months, whereas Shopify Plus enables a faster go-live timeline due to its pre-built integrations and user-friendly architecture.

 

Operational and Support Costs

 

 

 

 

Once the platform is operational, ongoing operational and support costs become a critical component of TCO. These encompass expenses related to system maintenance, security updates, customer support, and staff training. 

 

Shopify Plus offers a fully hosted SaaS solution, which alleviates the need for enterprises to manage hosting, perform regular updates, or handle security patches. This not only reduces operational overhead but also minimizes the reliance on extensive IT support teams. On average, Shopify’s operating costs are 19% better than other platforms while Salesforce is 6% higher than Shopify. 

 

In contrast, platforms like Salesforce Commerce Cloud may require more hands-on management, leading to higher operational costs. According to Intractone, this is mainly due to licensing fees, limited integrations/apps, and the higher expenses associated with development.

 

Third-Party Integrations and App Ecosystem

 

 

 

 

A robust app ecosystem can significantly influence the TCO of an e-commerce platform. 

 

Shopify Plus boasts an extensive marketplace of third-party applications and integrations, allowing enterprises to enhance their store's functionality without substantial custom development. There are 9701 apps on the Shopify app store and 40.52% of Shopify apps offer at least one free plan or free trial. This flexibility enables businesses to tailor their platforms to specific needs efficiently. 

 

While Salesforce Commerce Cloud also offers integrations, the breadth and depth of its ecosystem may not match that of Shopify, potentially leading to increased costs for custom solutions. There are a total of 5141 apps on the Salesforce AppExchange divided between:

 

• Sales

• Productivity

• IT & Administration

• Analytics

• Marketing

• Customer Service

• Finance

• Industry

• Commerce

• Collaboration

• ERP

 

Scalability and Performance

 

 

 

Scalability is a crucial consideration for enterprise e-commerce operations. 

 

Shopify Plus is designed to handle high transaction volumes, ensuring consistent performance during peak periods. Its infrastructure supports rapid scaling without compromising site speed or user experience. Shopify Plus’s bandwidth ensures about 99% uptime and integrates seamlessly with existing tech stacks. 

 

Salesforce Commerce Cloud also offers robust scalability features; however, the associated costs can escalate with increased customization and integration requirements.

Maintenance and Upgrade Costs

 

Regular maintenance and platform upgrades are essential to keep the e-commerce site secure and up-to-date. 

 

With Shopify Plus, these aspects are managed by Shopify, ensuring that enterprises always operate on the latest version without incurring additional costs. This approach reduces the burden on internal IT teams and eliminates unexpected expenses related to system upgrades. 

 

In contrast, platforms like Salesforce Commerce Cloud may require businesses to allocate resources for periodic maintenance and upgrades, contributing to a higher TCO.

 

 

 

 

In the world of enterprise e-commerce, an evaluation of the Total Cost of Ownership to find the best-performing platform while maintaining costs is akin to success.

 

While both Shopify Plus and Salesforce Commerce Cloud offer comprehensive solutions, Shopify Plus often presents a more cost-effective proposition. It's transparent pricing, lower implementation and operational costs, extensive app ecosystem, and managed maintenance services collectively contribute to a lower TCO, making it an attractive choice for large-scale e-commerce enterprises.

 

While Salesforce Commerce Cloud offers its own set of functionalities, often the TCO does not align with the use cases. 

 

If you’re still confused, our team of experts can help you choose the correct platform. 

 

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