The Omnicommerce Insight Series

Key Questions
to Include in
an E-Commerce
Platform RFP

reach final
decision in
less time

A comprehensive RFP that thoroughly covers all the critical

points can assist companies in reducing costs and producing
better ROI, faster. If an RFP helps a management team reach
a final decision in 12 weeks rather than 16 weeks, an additional
month of revenue may be added to the bottom line from the
e-commerce channel. This could translate into hundreds of
thousands of additional revenue dollars. And, a well-crafted
RFP can ensure that a company doesnt pay a premium for
features it wont need for the foreseeable future.
For each of the RFP questions recommended below, potential
follow-up questions are provided along with appropriate answers, and an explanation of why that question is a valuable
part of the selection process.

Page 2 // Key Questions to Include in an E-Commerce Platform RFP

Since 1997, hybris has responded to hundreds of RFPs and RFIs

for e-commerce systems. Over that time, hybris consultants
have evaluated and observed which questions are most critical,
and which questions truly help companies select e-commerce
platforms that meet and exceed present and future requirements.

AnswerS to look for

Companies should look for e-commerce platforms that come pre-integrated with a wide selection of
third party solutions. The best platforms will integrate with a long list of third party applications and
provide a robust API for integrating with other in-house systems. These capabilities will allow the ecommerce platform to serve as a foundation for omni-channel commerce. Key system integrations to
look for include order management systems (OMS), product information management systems (PIM)
and enterprise resource planning systems (ERP). Some e-commerce platforms also offer multichannel-friendly capabilities, such as PIM and OMS as add-on modules.

Why this is important

No matter whether the buyer operates in the B2C or the B2B world, their customers expect to
interact with the company across all buying channels (online, sales reps, physical store fronts and
telephone) in a seamless and integrated fashion. These customers expectations have been set by
companies such as Best Buy and Apple that were early adopters of a omni-channel strategy.
Consequently, customers are disappointed when they cant:
Buy Online, Pick Up in a Store
Buy In a Store, Have Order Shipped from Wherever It is Available
Buy Online, Return to a Store

Page 3 // Key Questions to Include in an E-Commerce Platform RFP

Q1

Does the platform provide a foundation for multi-channel commerce? Does it integrate
with other systems (in-house and third party) to facilitate omni-channel commerce?

In calculating the total cost of ownership, make sure to include the above listed.

Page 4 // Key Questions to Include in an E-Commerce Platform RFP

(eg other systems that are no longer needed)

Hardware Footprint

(for major and minor releases)

Upgrade Costs

Yearly Maintenance Fees

Integrations and
Customizations Expenses

Since much of the cost of the platform

is front-loaded, the lifespan of the new
e-commerce platform is pivotal. It may
be more cost efficient to invest $500,000
in an e-commerce platform that
remains in service for five years, than
spending $400,000 on one that must be
replaced after three years.

Implementations Costs

On the surface, this looks like a question

with a simple answer that can easily be
compared across different e-commerce
vendors. In fact, it is a bit more complex
than it appears. A follow-up question
that is much harder to answer is the
following: When (if ever) will the buyer
have to replace the e-commerce platform with a new one? In order to get at
this question, one has to consider the
specific long-term limitations of the new
platform.

Its important to consider total cost of

ownership for a variety of reasons. First,
the company must determine whether
they can recoup the investment in the
new platform in a reasonable period of
time. Second, and perhaps more importantly, this forces the buyer to consider
the ripple effect of implementing a new
e-commerce platform. It may streamline a companys IT infrastructure by obviating the need for other systems. Or, it
may decrease or increase staffing needs
in other departments. This is especially
true when the platform extends beyond
e-commerce capabilities and can be
used to meet omni-channel needs.

Up-front Licensing Fees

Answers to look for

(ie how much hardware is required to support the platform?)

Why this is importanT

Resultant Cost Savings from the New E-Commerce Platform

Q2

Whats the total cost of ownership of the platform over five years?
Is the e-commerce vendor willing to guarantee future upgrade costs?

Answers to look for

Why this is important

When thinking about internationalization, companies need

to consider how their e-commerce platform handles different
currencies, languages and localized product catalog needs.
These attributes vary by country and region to meet the needs
of local markets for different products and different price
positioning. Companies should consider solutions that natively
support multi-language, multi-currency and multi-byte operations. Platforms should be architected from their inception
to handle the shopping requirements of all the geographic
regions an organization plans to target immediately, and in the
future. Its easy for e-commerce solutions vendors to bend the
truth a little when answering this question, because its hard
for platform buyers to verify the answer. A good probing question for this is, What were the multi-regional capabilities of
the very first version of your e-commerce platform?

Many e-commerce software vendors started delivering products for one specific geographic region, grew organically, and
then tacked on new functionality to support other new regions.
This can lead to the proliferation of time-consuming and potentially expensive upgrades that should have been standard
features from the start.
These capabilities should have been present from the start,
and users should not have to pay extra to build out basic multiregion functionality through maintenance fees, that should
instead be fueling product advancement and innovation. And,
platforms that were singularly focused on a specific region are
often developed solely through the filters of how that region
conducts business. This kind of bias can permeate the entire
architecture and functionality of the platform.
Platforms with retrofitted multi-region capabilities might
eventually get the job done, but users may discover they
require costly customization as the organization grows and
expands into new international markets. Companies should
expect and demand that their e-commerce platform is globalready from the start, and requires no customization or exceptional development effort to support new markets.

Page 5 // Key Questions to Include in an E-Commerce Platform RFP

Q3

Was the platform architected from the very first version to be global-ready, or was it
designed for a specific market/region and internationalized at a later point in time?

Page 6 // Key Questions to Include in an E-Commerce Platform RFP

Q4

What deployment methods are available on premises,

hosted (managed services), and on-demand (SaaS)?
Is it easy to migrate between these methods?

Answers to look for

The ideal scenario here is for e-commerce vendors to offer all three of those options: on-premises,
hosted and on-demand, and provide recent successful references to prove their competence.
It should be easy and inexpensive to migrate from one deployment method to another.
Some vendors will attempt to spin their answer to say that their software can be implemented
by any of those three methods. An important follow-up question is to ask that vendor to provide
examples of customers running on each deployment method, describe how the vendor was able
to preserve that customers software configuration between deployments, and disclose how much
development time and implementation costs the transition consumed.

Companies tend to have very aggressive demands for how

quickly a new commerce platform can be implemented. If an
e-commerce platform supports multiple deployment methods,
the company making the purchase can enjoy the best of all
worlds. In many cases, a new platform can be launched in as
few as 90 days, using an on-demand version. An interim, ondemand implementation might not have all of the functionality
that the company ultimately wants, but an on-premises deployment of the e-commerce platform can always be done later
as a second phase. Some e-commerce software vendors will
allow their customers to apply a portion of their on-demand
platform fees towards a license of the on-premises version at
a later date.
The e-commerce industry is growing rapidly, and a deployment
method that is suitable today might be outdated in a few years.
Therefore, its vital for an e-commerce vendor to provide all
three deployment options to accommodate changing business conditions, and to allow for flexibility in the deployment
method. For example, an on-premises implementation enables
more refined control and customization, but also requires more
IT resources and appropriate domain expertise.

An on-demand implementation might not be suitable or

cost-proportionate for a developing e-commerce channel that
represents a low percentage of overall sales, and in the early
phase, an on-demand or SaaS model may be more profitable.
However, as this channel produces a greater percentage of
sales and customization needs arise, an on-premise implementation may become more advantageous.
Companies should avoid situations where they dont have the
ability to move easily between deployment methods, or are
forced into a hybrid deployment model. This limitation results
in sub-optimal capital utilization, and may require replacing
the vendor within two or three years and re-implementing the
entire e-commerce system.
Companies should demand that all three deployment models
are available, that each provides flexible pricing to optimize the
economics of the e-commerce channel, and that the vendor
provides reference customers that are successfully using and
transitioning between these models.

Page 7 // Key Questions to Include in an E-Commerce Platform RFP

Why this is important

Q5

Who typically implements the e-commerce platform?

Answers to look for

Vendor Implementation
This is where the software developer who has built the e-commerce platform
leads the implementation. This implementation option is especially useful
when the buyer requires significant customization.
Internal Implementation
The buyer implements the platforms themselves. This implementation option
is best suited for companies that have difficult back-end integrations, and
especially when those integrations are with homegrown systems.
Third Party Implementation
A third-party consulting company leads the implementation. This implementation
option makes the most sense when the buyer needs localized or industry specific expertise and cant complete the implementation alone. A French maker of
high-end LED televisions who has chosen an e-commerce platform developed
by a US company would be well served if they chose a French implementation
partner that has particular expertise with consumer electronics.

Why this is important

Multiple implementation options will help ensure the company has enough
flexibility to find a partner that meets their needs whether geographic,
industry-specific, language, timing or culturally appropriate. It will also lead
to a more cost effective implementation. If four third-party firms and the
developer are all bidding for an implementation project, this level of
competition will likely result in the buyer securing a better deal.

Page 8 // Key Questions to Include in an E-Commerce Platform RFP

The best platform vendors will support multiple implementation options, with
wide variety of price points, vertical solutions and regional expertise, including:

Answers to look for

Why this is important

Determine whether the e-commerce vendor offers endcustomers a good experience on the devices that matter
most today iPhones, iPads, Android devices, etc. A more
thorough answer would include several additional points.
How rapidly did the vendor support these touch points
when they were first emerging? Did they offer iPhone integration in 2009 or much later in 2011?
What additional devices does the vendor already have built
into their release plan? Is their platform future-ready to include new touch points that may not be on the market yet?
Does the platform support new touch points one by one (an
iPhone module, an Android module, etc.)? Do they offer an
API with enough flexibility to support a variety of current or
future touch points?

Researching emerging devices and touch points can be

overwhelming. Tablets and smartphones now account for
more than 17% of all visits to online commerce sites and
more than 13% of sales. This is more than double the level
of a year ago and eight times what it was two years ago.
The single device with the largest share of mobile commerce, the iPad, did not exist until April 2010.
New customer touch points can emerge overnight, and
successful companies need to make sure that their ecommerce vendors keep pace with this rapidly changing
landscape. Select a platform that provides flexibility and
agility to easily adapt to industry and technology advances.

Page 9 // Key Questions to Include in an E-Commerce Platform RFP

Q6

How does the e-commerce platform ensure integration with new customer touch points
such as smartphones and tablets? Does it provide agility for compatibility with future devices?

Page 10 // Key Questions to Include in an E-Commerce Platform RFP

Q7

What features are available to empower business users

to configure and update the e-commerce platform without
help from IT?

Answers to look for Almost every platform vendor will provide an administrative control panel that enables business

users to add or edit products, create promotions, personalize a site experience, generate reports,
complete other tasks necessary to run the day-to-day operations of an online store, and execute a
multi-channel strategy.

Another critical back-end feature is how the e-commerce platform handles workflow and staging
of content. When adding a new product line, a finance manager first approves product pricing, and
then an art director approves the visual layout. In parallel, copy is routed to a translator and then to a
product manager for final approval. Imagine how convenient it would be if the e-commerce platform
would help create, manage, and track those tasks through a sophisticated, yet easy-to-use, workflow
engine.

Why this is important In most e-commerce companies, IT resources are scarce. It is essential for an e-commerce platform

to provide functions that allow different types of business users to interact with the system without
continual support from IT. In an economy where rapid time-to-market is critical, business users need
to make quick changes and update websites to stay ahead of the competition. When end-users are
dependent on IT, bottlenecks can develop that slow down the companys response to competitors and
changing market dynamics.
Back-end interfaces that are well designed, easily customizable, and focused on specific tasks, will
save time on user training and platform adoption. Companies should demand that an e-commerce
platform removes as much complexity as possible from the user interface, without requiring expensive customizations, and while leveraging all current advances in technology and design thinking.
When platforms cant manage content workflow and staging, the process of updating an e-commerce
site becomes much less efficient and far more prone to errors.

Page 11 // Key Questions to Include in an E-Commerce Platform RFP

The best platforms allow for different types of users to have distinctly different views of the control
panel. A finance user might need to customize several types of sales reports while a category manager would need the ability to add products or edit inventory items within different categories. The
key here is to enable users to view, edit and customize the information most relevant to them without
complicating the interface with data that is not pertinent to their role.

Answers to look for

E-commerce developers providing the greatest value in exchange for ongoing maintenance fees and those
with the best-managed research and development teams usually offer quarterly point-level releases (3.1 in
Q1, 3.2 in Q2, etc.) and a major version release every 12 to 18 months. When evaluating answers to this question, buyers should look for both frequency and consistency in the release schedule.

Why this is important

A consistent release schedule can help ensure the platform developer is addressing critical bugs and needed
enhancements, and delivering innovation that keeps up with market demand to maintain competitive advantage. Ongoing maintenance fees are a major component in the total cost of ownership equation. The most reliable vendors will use maintenance fees as a way to fund a continual support mechanism for their customers,
and an ongoing stream of innovation and functionality improvements in the form of regular upgrades.
If a software vendor is unwilling to commit to a predictable schedule of upgrades, this may call into question
the rationale for maintenance fees as high as 28 percent of the initial software license costs. A predictable
consistency of releases allows users to better manage their budgets and resource planning.

Page 12 // Key Questions to Include in an E-Commerce Platform RFP

Q8

What is the frequency of versions and point releases?

When were the last two major versions of the platform released?
When were the last three point releases?

product content
information management

Answers to look for

Why this is important

E-Commerce companies are advised

to make sure that all software modules
involved in powering their multichannel
or e-commerce businesses are written
on a single code base. This includes the
commerce front-end software and any
supporting systems bundled in the platform, such as product content information management (PIM) software and an
order management system (OMS).

Problems can arise when one buys

a solution from a vendor who has
developed an e-commerce product
line through acquisitions rather than
in-house development. A patchwork
quilt approach can result in time delays
and extra costs for integrating modules
built by different teams in different development centers. It can also lengthen
the selection process, since different
modules in the solution may be sold by
different, competing sales teams within
the same vendor organization.
The integrations between modules
written on differing code bases create
complexity and cost when its time to
upgrade to new software versions.

security
reporting

social commerce

mobile
platform

print

order management system

promotion

Platforms built on a single code base

are typically more flexible, more scalable
and more easily implemented. They also
create less risk, lower cost, and provide
a quicker return on investment.
Further, if this single code base is an
open standard, or an industry standard
such as Java, then it is easier and more
cost effective to find resources to customize the solution.

Page 13 // Key Questions to Include in an E-Commerce Platform RFP

Q9

Which features and modules of the e-commerce platform are written on a single code base
(homogeneous stack), and which are not? Is this single code base built on an open standard?
And, is the open standard an industry standard (or likely to become one)?

Answers to look for

Why this is important

E-Commerce platform providers should offer solutions for

ensuring that all content and information related to products
(video, text, reviews, pictures, etc.) is easily and centrally managed in multiple languages, and is easily available to other
channels (print, web, mobile, field representative devices, call
centers, store, physical locations). It should also be consistent
across those channels.

Product information management has become very challenging, considering the variety of content types and channels
through which content is consumed by customers. The content
pieces associated with one product can include text, reviews,
pictures, and video all available in multiple languages.

While ERP systems and traditional PIM systems are capable

of managing basic, structured information such as pricing and
product descriptions, they are typically incapable of supporting
rich content types such as videos or photos. Vendors who offer
solutions that attempt to address these issues often provide
them as separate, non-integrated modules that are not purpose-built for the complex needs of multi-channel, multiregional strategies.

Managing this variety of structured and unstructured information is made more difficult by the need to ensure it is displayed
consistently across various channels mobile, web, and print
in physical stores and in the hands of field sales representatives using tablets. To manage this complexity, it is best to have
one repository where all content resides, so that all channels
and regions can draw on the central repository for productrelated content. This approach reduces the cost and complexity of managing product content, and reduces discrepancies
among channels.

Page 14 // Key Questions to Include in an E-Commerce Platform RFP

Q10

Does the e-commerce system include an integrated module and centralized repository
for managing both structured data (text, pricing information), and unstructured product
information and content (video, pictures), in multiple languages? If a platform includes an
integrated product information management (PIM), how does that compare with conventional PIM software and similar capabilities available from ERP systems?

Summary of Key Recommendations

Decision makers are encouraged to think about both short term and long term needs, keeping
in mind that they might dictate different solutions. If so, the RFP should reflect that.
Carefully consider all other systems needed within the e-commerce infrastructure and focus on
vendors who provide complete solutions with a minimal amount of added integration expense.
Think about how e-commerce can be combined with offline channels, mobile channels, and
social channels to deliver more cumulative value (1+1+1+1=5).
Develop a short list of two or three vendors who offer the most flexibility, in terms of deployment
options and pre-built integrations, and conduct focused, solutions-oriented discussions prior to
issuing an RFP.
After receiving RFP responses, companies may want to ask their top two or three vendor choices
to develop a rough prototype or proof of concept especially for custom features needed within
the platform.
When a selection committee can make a quicker decision so that a new solution can be rolled
out a few weeks early, it may be possible to capture potentially hundreds of thousands of dollars
in additional revenue.

Page 15 // Key Questions to Include in an E-Commerce Platform RFP

A well-designed RFP with all the right questions and decision criteria can be instrumental in
driving the success of an e-commerce implementation to produce the best ROI and fulfill all
critical business needs for years to come.

10 Most Common E-Commerce Platform RFP Mistakes

Wording Questions in a Way that Enables the Vendor to Spin or Obfuscate the Truth Be as specific as possible with
your initial round of questions and be prepared to engage in a follow-up dialogue to probe for more in-depth answers.
Taking the Short View Companies should look four to seven years into the future when considering their next
e-commerce platform.
Trying to Be Too Impartial Some companies refuse to conduct in-depth discussions with vendors prior to issuing
an RFP. Pre-RFP discussions are critical to producing a well-rounded RFP that meets long-term needs.
Leaving the RFP Process to the Procurement Department If the information exchange related to the RFP is the
exclusive domain of the procurement group, companies will miss many opportunities for valuable dialogues with
industry experts able to provide insight into the future technology needs that companies have not yet anticipated.
Not Having a Budget Before Issuing an RFP If a company does not have a budget, it should first complete a high
level RFI or engage an industry analyst.
Not Involving All of the Stakeholders The RFP should answer questions from all of the stakeholders including the
business owner, IT, operations, marketing, channel management and anyone else that will interact with or be directly
affected by the new platform.
Not Asking Questions that Can Be Easily Compared Consider phrasing questions in such a way that the answers can
easily be compared across vendors: Is the platform written on a single code base that is an open industry standard one,
two, three, or four? One is no, four is yes. Two and three are in-between. Once they have been forced to provide a comparable answer, it is advisable to allow the vendors to explain their answer in a more free form fashion. When comparing the
answers to dozens or hundreds of questions across vendors, companies should be sure to identify those attributes that are
make or break considerations for the new platform. Vendor A might score the highest, but if they dont have robust omnichannel support or strong data content management capabilities (PIM), then they should be ruled out.
Not Doing Sufficient Due Diligence Companies should consider speaking to analysts or consultants to determine which
vendors might best fit their needs.
Inviting Too Many Vendors to Bid Sending an RFP to a laundry list of vendors can result in confusion and a slow selection
process. Due diligence should be completed upfront before two or three appropriate bidders are invited to respond.
Ignoring the People Aspects Buyers must not underestimate the importance of the people they will be working with to
structure the deal, implement the solution or arrange for customizations. This might involve some soul searching, since
it requires companies to think about priorities that are fundamental but hard to quantify. Will a companys internal implementation team have an easier time working with Fortune 500 vendor or a smaller, more agile vendor? Will they want to
talk to Project Manager and Solution Engineers or also have access to and participation of C level executives, which may
not be possible with a large company?

Page 16 // Key Questions to Include in an E-Commerce Platform RFP

The

About hybris software

hybris software, an SAP Company, helps businesses around the globe sell more goods, services and digital content through every touchpoint, channel and device. hybris delivers OmniCommerce:
state-of-the-art master data management for commerce and unified commerce processes that give a business a single view of its customers, products and orders, and its customers a single view
of the business. hybris omni-channel software is built on a single platform, based on open standards, that is agile to support limitless innovation, efficient to drive the best TCO, and scalable and
extensible to be the last commerce platform companies will ever need. Both principal industry analyst firms rank hybris as a leader and list its commerce platform among the top two or three
in the market. The same software is available on-premise, on-demand and managed hosted, giving merchants of all sizes maximum flexibility. Over 500 companies have chosen hybris, including
global B2B sites W.W.Grainger, Rexel, General Electric, Thomson Reuters and 3M as well as consumer brands ToysRUs, Metro, Bridgestone, Levis, Nikon, Galeries Lafayette, Migros, Nespresso
and Lufthansa. hybris is the future of commerce. www.hybris.com | sales@hybris.com
Version: December 2013 Subject to change without prior notice hybris
hybris is a trademark of the hybris Group. Other brand names are trademarks and registered trademarks of the respective companies.