I had a great conversation with a potential client on Wednesday. This (particularly astute) prospect was quite realistic that the cost of developing an online retail web site would be absolutely dwarfed by the costs of aligning the supply chain, integrating ecommerce information flow with the site, establishing pick/pack operatins, integrating the marketing functions, and ensuring that brick and mortar store operations are “web aware.”
As a general rule, I typically guesstimate that the “website portion” of online retailing represents only about 20% of the total costs — at least during initial development. After all is said and done, my estimate is usually quite accurate
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