Ask HN: 9M in Dev Work for Salesforce E-Comm Software?
He compares the TCO against his company's commerce platform (fabric) for a hypothetical business that generates $500 million of gross merchandise value (GMV) annually.
Can anyone confirm or deny these development costs? Columns 2-3 are for SFCC and 4-5 for the other platform.
Fee Type | % of GMV | Annual Costs | % of GMV | Annual Costs
Software ¹ | 2.95% | $14,755,000 | 0.72% | $3,616,000 Software Hosting & Maintenance ² | 0.62% | $3,100,000 | 0.00% | $0 Payment Processing ³ | 2.50% | $12,500,000 | 2.50% | $12,500,000 Software Development (People) ⁴ | 1.80% | $8,990,000 | 0.28% | $1,400,000 Site Operations (People) 5 | 0.68% | $3,420,000 | 0.22% | $1,090,000 Professional Services (implementation fee) ⁶ | 0.80% | $4,000,000 | 0.10% | $500,000 Total Costs | 9.35% | $46,765,000 | 3.82% | $19,106,000
1 Assumes salesforce Commerce Cloud & manhattan OMS 2 Hosting costs are included in fabric platform license 3 Assume 2.3% credit card transaction fees + sales tax software 4 Can reduce 50+ person IT team due to Fabric-enabled developer productivity 5 Can reduce 30+ person operations team due to Fabric-enabled merchant and marketer productivity 6 One time Implementation fee by Salesforce SI such as Lyons
Note: A clearer table is 3/4 way down this post: https://resources.fabric.inc/blog/ecommerce-tax
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