9+ PROS AND CONS OF USING SHOPIFY

Author: Jennifer Diep
Publish date: 27/09/2022
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Today, for businesses of all sizes, eCommerce websites play an essential role in reaching and buying products for a wide pool of potential customers on the Internet.

Thus, choosing the right platform to build an eCommerce website is incredibly important. A good eCommerce platform will make it easy for businesses to provide Omnichannel experiences, personalize customer experiences, offer a variety of services, products, and more to increase conversions and drive online sales.

Some commonly mentioned platforms for building eCommerce websites are Magento, Woocommerce, Bigcommerce, etc. Definitely, each business will have its considerations, but one platform that always appears as a top choice is Shopify. In spite of the fact that the platform is highly rated, businesses should still weigh the pros and cons of this platform before making a final decision.

As a result, SECOMM has prepared this review, helping businesses understand what Shopify is, how it works, implementation costs, and especially the pros and cons of using this platform to build a comprehensive eCommerce website.

What is Shopify?

Before becoming one of the most popular eCommerce platforms globally, Shopify started as an online ski store called Snowdevil in 2004. Later, the company transformed into an eCommerce platform named Jaded Pixel.

In 2006, It was officially founded in Ottawa by young programmers Tobias Lutke, Daniel Weinand, and Scott Lake. Since then, the platform has gradually affirmed its position as a reliable and fastest-growing eCommerce platform in the last two years when most companies faced many difficulties because of the Covid-19 pandemic.

Up to now, the number of Shopify users has increased significantly. As reported by StoreLeads, there are currently about 2 million websites using the platform to build and develop online businesses. In the second quarter of 2022, the number of newly opened stores reached 150,928, an increase of 10.8% compared to the same period in 2021. In Vietnam alone, there are about 2,000 websites using the platform in operation, up 9.8% in the second quarter of 2022 over the same period in 2021.

Total revenue in the second quarter of 2022 reached $1.3 billion, up 16% over the same period in 2021, corresponding to a compound annual growth rate for three consecutive years of 53%. Gross profit in the second quarter of 2022 increased by 6% to $655.6 million compared to $620.9 million in the second quarter of 2021 (According to Shopify’s report).

While it is one of the most popular and user-friendly eCommerce platforms available today, businesses still need to determine if this is what they need to expand their business, all the advantages and disadvantages of the platform, mostly the cost issue.

Pros of using Shopify for an eCommerce website

weigh-significant-pros-and-cons-of-using-shopify
Pros of using Shopify for an eCommerce website

Cost-effective Deployment

For a start, businesses can enjoy a 14-day free trial without a credit card requirement. When the free trial ends, businesses are encouraged to opt for one of the solution packages with suitable features and appealing promotions.

Packages

Price

Main Features

Unique Features 

Ideally suited for 

Starter

  • $5/month.
  • 5% transaction fee.
Create product pages and get shareable links with product information, then send those links to customers via social platforms or message apps.  Merchants that sell on social platforms or message apps with no website in demand

Lite

  • $9/month.
  • 2.9% transaction fee for credit card.
  •  2.7% transaction fee for offline sales with Shopify Payment.
  • 2% for external payments.
– Shopify Buy Button.

– Invoicing. 

Merchants that sell on an existing website or social platforms. 

Basic

  • $29/month.
  • 2.9% transaction fee for credit card.
  •  2.7% transaction fee for offline sales with Shopify Payment.
  • 2% for external payments.
– Customizable website editor.

– Website hosting and free TSL certificate.

– Unlimited number of products.

– Analytical reports

– Localization: currency conversion, website translation, regional domains. 

– Inventory Management.

– Shopify POS.

– Shopify Email.

-Shopify Payment.

– 24/7 Customer service. 

– 2 staff accounts.

– 4 inventory locations.

– Basic reports.

Businesses who have just entered or intend to enter the eCommerce world and look for comprehensive eCommerce solutions.

Shopify

  • $79/month.
  • 2.6% transaction fee for credit card.
  • 2.5% transaction for offline sales with Shopify Payment.
  • 1% for external payments.
– 5 staff accounts.

– 5 inventory locations.

– Standard reports. 

Steadily growing eCommerce businesses.

Advanced 

  • $299/month. 
  • 2.4% transaction fee for credit card. 
  • 2.4% transaction fee for offline sales with Shopify Payment. 
  • 0.5% for external payments. 
-15 staff accounts.

-8 inventory locations.

– Advanced reports.

– Automation tools. 

Large-scale businesses that sell internationally

Plus 

Từ $2000/month. However, businesses can contact Shopify for a custom estimate.  – 9 expansion websites.

– Up to 100 themes. 

– Exclusive Merchant Success Program, Shopify Plus Academy, Shopify Plus Partner , Shopify Plus Community on Facebook 

Enterprise-level businesses that manage and operate multiple eCommerce websites.

Table list of price, and features of Shopify solution packages.

First and foremost, because it is a SaaS platform, the cost to get started is usually quite low. Despite the fact that businesses must pay monthly fees, transaction fees, theme fees, and extension fees, Shopify is still significantly less expensive than open-source platforms such as Magento, WooCommerce, and others.

The development of an open-source platform necessitates the assistance of experienced programmers and takes a long time to deploy, whereas the SaaS platform is the inverse. That is the reason why starting with a SaaS platform, specifically, Shopify, will save businesses both time and expense.

Another cost highlight is that SaaS platforms, in general, and Shopify in particular, require an ongoing monthly fee rather than a one-time purchase fee to use the platform. This reduces the risk of businesses investing too much money in the platform but not meeting their expectations during the implementation process.

Furthermore, the Shopify platform is appropriate for different-sized businesses in the market. The Starter, Lite, and Basic packages are appropriate for SME businesses engaged in eCommerce. Shopify, Advanced, and Plus packages are ideal for large-scale businesses that require advanced features to run an effective eCommerce website.

Ease of Use

The only way to adapt to the ever-changing market and quickly reach a wide pool of potential customers is for businesses to deploy eCommerce websites as soon as possible to avoid being left behind in the competition of the digital transformation race. One of the important factors when building an eCommerce website is choosing the right platform.

In particular, the top goal to consider when choosing an eCommerce platform is the ease of use. If a platform takes users too long to learn and implement or makes users dependent on external support, then the platform is not easy to use

Shopify has an easy-to-use interface for users with little programming knowledge. Moreover, Shopify is a SaaS eCommerce platform with a pre-designed system that offers hosting, interface, features, and technology infrastructure maintenance, allowing businesses to easily build and operate the website system with just drag and drop without worrying about technical issues.

Simple steps to get started with the eCommerce website implementation with Shopify:

  1. Choose from one of the solution packages depending on the business needs
  2. Choose a business domain
  3. Choose an appropriate theme and template
  4. Choose essential features
  5. Optimize the eCommerce website and add products
  6. Go-live

24/7 Available Customer Support

This is one of the most crucial factors influencing users’ decision to use Shopify. Difficulties and obstacles are inevitable when building an eCommerce website, so Shopify has assembled a reliable and trusted team to assist users.

As a result, if your business requires assistance, assistance is available 24/7. Businesses can reach Shopify via email, chat, and a hotline worldwide. What’s more, users can access community forums and useful documents for developing eCommerce websites on this platform, mostly through the Shopify Support Center.

Security and Data Backup

The Shopify platform runs on PCI (Peripheral Component Interconnect) compliant servers, allowing merchants to accept credit card payments. Secure Sockets Layer (SSL) encryption is enabled on all Shopify websites to secure visitor data, while a backup system allows businesses to store and save data regularly by exporting data to a CSV file.

As an outcome, the platform encourages the addition of an advanced backup solution from the Shopify Store, such as the Rewind app, as it is seen as a lifesaver if users accidentally delete content such as products or images or a video demonstration. To keep your eCommerce website secure, simply back up your data on a regular basis and use a strong enough admin password.

Variety of Themes

The interface is the appearance of a business’s eCommerce website. The more appealing the website interface, the more likely it is to retain customers, attract more visitors, as well as generate more conversions.

Shopify understands the importance of a website interface, so it has made a host of available themes, both free and paid, suitable for a wide range of businesses and fields, making it simple for businesses to choose from.

The free Shopify themes are ideal for startups, small and medium-sized businesses, and individuals. Businesses can customize their eCommerce website according to their needs and brand features by using features such as responsive web design, product filters, and product color display templates.

However, free themes have some downsides, including a limited number of themes, limited design, and a lack of advanced and specific features, which makes website customization difficult.

In fact, free themes are great for launching an eCommerce website. Premium interfaces, also known as paid themes, will be more suitable for large-scale businesses or businesses on the rise, with an average cost of around $140-$180/theme.

Shopify’s paid themes include advanced integration features such as live chat support, newsletter popups, upsell features, faster page loading, and much more. Thereby, businesses can run an eCommerce website automatedly and smoothly.

The Cons of using Shopify for an eCommerce website

weigh-significant-pros-and-cons-of-using-shopify
Cons of using Shopify for an eCommerce website

Not Easy to Keep Track of Expenses Incurred

The cost of using Shopify, besides the notable pluses, the platform has a small but enough minus to make some businesses hesitate to start.

In addition to the monthly fee for using the enterprise platform, businesses must pay for other costs such as themes, applications, extensions, marketing features, sales, and SEO on a monthly basis with no long-term possession.

For example, to use the Free Shipping & Hello Bar application that offers free gifts, free shipping, or other types of promotions, users will buy for $8.95/month, which means ongoing monthly in regards to other expenses, businesses will pay an additional $8.95 for this app until it is no longer used. 

When there are small expenses incurred each month, it is difficult to control cash flow for large-scale businesses that have to manage and operate many websites at the same time.

Meanwhile, open-source platforms require a one-time purchase fee rather than an ongoing monthly fee. Although the features are not yet available and take a long time to program, businesses can possess those features for eCommerce websites in the long run. Thereby, it makes cash flow management more convenient and effective.

Difficulty with Content Marketing

It is a great way to promote your eCommerce website. Users can use Shopify to blog and optimize SEO, drive free traffic, and improve brand positioning.

However, this blogging feature on Shopify is not as user-friendly as WordPress. Some of the criteria Shopify can improve regarding blogging and content writing include:

  • The outdated editor.
  • The blog layouts are inflexible
  • No categories force users to use tags
  • Cannot add related blogs
  • Cannot embed products in blogs
  • Not easy to integrate third-party add-ons

This will be a barrier for businesses when using Shopify to promote eCommerce websites by optimizing SEO if the content is a core element of the business’s marketing strategy.

Limited Customization

Another limitation of Shopify is that the platform’s interface is customized using the Shopify Liquid setup. Meanwhile, many website developers are already familiar with the PHP programming language to customize the themes and templates of the website, it is a common technique used by WordPress.

Therefore, users who do not have much experience in programming will face many obstacles when using Shopify’s tools to customize the interface of the eCommerce website.

However, businesses of all sizes can still use other useful Shopify features like Shopify Themes, Shopify App Store, Shopify Blog, 24/7 support team, and more to set up an eCommerce website quickly and effortlessly.

Cannot Possess Source Code and Data 

Because the entire business’s website system is hosted on Shopify’s server, the ownership and control of the website source code will belong to Shopify, not the business. Similar to other SaaS platforms such as BigCommerce, Squarespace, Wix… Shopify has a Lock-in feature, which means that when converting a website from one platform to another, businesses will no longer be able to use the old website source code and have to rebuild from scratch on a new platform.

Similar to the source code, business data is also stored on Shopify’s servers, so data ownership and control are quite limited. This makes it difficult for businesses to connect data among internal departments or users’ personalization, etc. Especially when switching platforms, data loss or misalignment is often unavoidable.

Shopify will not assist in the event that businesses stop using the platform for any reason. The only asset businesses can keep and take away is a CSV report containing website information.

Hence, before starting an eCommerce website on the Shopify platform, businesses need to carefully consider the benefits and disadvantages of stopping using it to conclude whether Shopify is the best fit for business in the long run. 

Going by this article,  Shopify is one of the eCommerce platforms that many businesses would love to choose when deploying an eCommerce website. However, besides the outstanding advantages, there are still certain downsides, so businesses need to carefully consider and compare with other platforms before starting out. 

With many years of experience in implementing eCommerce in many countries, SECOMM provides free consulting services with professional eCommerce solutions.

Contact us today for free support and advice!

 

Ready to Maximize Your eCommerce Potential? Let’s talk

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Top 10 Best Must-Have Magento Extensions in 2024 (Free & Paid)
Top 10 Best Must-Have Magento Extensions in 2024 (Free & Paid)

Using Magento extensions isn’t just a trend; it’s a critical factor for the success of an eCommerce website. With the ever-growing market, delivering an optimized online shopping experience has become a must for attracting and retaining customers.

In this context, integrating best-suited Magento extensions into the website system will enhance performance, streamline management, and enrich customer engagement. Let’s explore the top 10 Magento extensions worth integrating to ensure your eCommerce website stands strong amidst fierce competition.

1. What are Magento extensions?

Before delving into the list of top Magento extensions, let’s gain a deeper understanding of this concept. Magento extensions are simply additional software integrated into the Magento platform to extend the functionality and capabilities of Magento websites. These extensions can provide new features, enhance user experience, optimize management, and upgrade core functions such as marketing, payments, shipping, and more.

These extensions are developed by the Magento community, including software development companies and eCommerce service providers. Most of them are available in both free and paid versions. While the free versions typically offer basic features, the paid versions often include advanced features and deeper support services.

2. Benefits of using Magento extensions

Choosing the right Magento extensions is a crucial part of building and managing a successful eCommerce website on the Magento platform. Let’s explore four benefits that using Magento extensions brings:

2.1 Extend functionality

Extensions help expand the functionality of Magento websites by adding new features and capabilities that the core system doesn’t provide. For example, businesses can integrate advanced search features to make it easier for customers to find products, add filters for customers to sort products based on various criteria, or integrate social features to encourage sharing and interaction on social media. As a result, Magento websites can offer a more engaging shopping experience, retaining and attracting more customers.

2.2 Optimize management

One of the significant challenges of managing eCommerce websites in general and Magento websites in particular is efficiently managing inventory, orders, and customer information. Magento extensions provide smart inventory management tools, user-friendly order management interfaces, and integration with customer relationship management (CRM) systems. Thus, businesses can save time and effort in managing daily business operations and focus on more critical development goals.

2.3 Enhance customer engagement

eCommerce websites are not just places for online shopping but also forums where customers can interact with each other and with the brand. Magento extensions offer interaction features such as product review and rating systems, loyalty points programs for loyal customers, and CRM software, helping businesses create a rich and engaging online shopping space.

2.4 Boost conversion rates

Lastly, using Magento extensions helps improve business performance by enhancing conversion rates, increasing sales revenue, and optimizing marketing strategies. Thanks to the flexibility and diversity of these extensions, businesses can customize and adjust their business strategies to meet market needs and achieve sustainable growth.

3. Top 10 leading Magento extensions

At the time of writing, the Magento platform offers over 4000 eCommerce extensions across a range of functions including marketing, payment processing, shipping, reporting, and analytics. Here are the top 10 most powerful extensions to consider adding to your Magento website:

3.1 KlaviyoKlaviyo

Klaviyo is a powerful tool for email and SMS marketing. With Klaviyo, businesses can create custom and automated email campaigns based on customer behavior, track performance, and interactions to optimize conversion rates and establish closer customer relationships.

Key features:

  • Seamless integration with 300+ third-party systems. Top integrations with Klaviyo include Facebook, Trustpilot, Zendesk, Ordergroove, Stamped, and many more.
  • Provides an easy-to-use email and SMS builder with customizable templates, allowing personalized form customization for each customer segment.
  • Real-time data synchronization with Magento websites, including order data, cancellations, refunds, and order fulfillment for all customer segments

Pricing:

  • Free version available
  • Paid version: starts from $20/month depending on the number of email contacts.

3.2 HubSpot Contact SyncHubSpot Contact Sync

This extension integrates Magento with HubSpot CRM, allowing businesses to automatically synchronize customer information between the two platforms. This facilitates more efficient tracking and management of customer information and enables optimized marketing campaigns.

Key features:

  • Synchronize new customer data registered on the Magento website to HubSpot
  • Synchronize newsletter subscriber data from the Magento website to HubSpot
  • Synchronize previously existing data to the HubSpot system
  • Be compatible with Magento Open Source and Magento Commerce

Pricing: Free to use

3.3 LiveChatLiveChat

LiveChat is a powerful online customer care solution for Magento. LiveChat helps businesses enhance interaction and provide quick and professional support. This helps businesses improve the shopping experience for customers and increase conversion rates.

Key features:

  • Ability to send personalized messages to website visitors on Magento
  • Enable cart tracking while chatting with customers.
  • Improve the efficiency of customer service by conducting multiple chat sessions simultaneously
  • Seamless integration with third-party systems: Zendesk, Messenger, HubSpot CRM, WhatsApp, Mailchimp, Salesforce, etc.

Pricing:

  • Free version: allows for a 14-day free trial
  • Paid version: starts from $20/month

3.4 eDeskeDesk

eDesk is a preferred centralized customer service and support management platform by many Magento businesses. This tool helps efficiently manage and respond to customer inquiries in an automated manner. This improves the efficiency of customer service teams and enhances customer satisfaction.

Key features:

  • Providing a unified inbox and allowing centralized management of all support channels
  • Segmenting customers based on products, order history, and lifetime value
  • Integrating automated response features
  • Responding to customers faster with pre-made templates
  • Personalizing customer service with a 360° view feature

Pricing:

  • Free version available
  • Paid version: starts from $69/month

3.5 Payment servicesPayment services

This is an Adobe Commerce extension that simplifies the payment process for businesses and allows customers to pay for orders the way they prefer. This extension ensures security for payment data and transactions, allowing admins to manage orders and payments in one central location while still providing a seamless payment experience.

Key features:

  • Deployment of multiple payment methods including debit cards, credit cards, PayPal, Venmo, Apple Pay, and Buy Now Pay Later
  • Provides an integrated payment experience, where all transaction and payment data can be easily accessed in the Adobe Commerce admin interface
  • Offers comprehensive reports on orders and payments on the Magento website, including detailed information on processed orders, payment balances, and transaction-level reports for financial reconciliation

Pricing: Free to use

3.6 Stripe paymentsStripe-payments

Stripe Payments is a prominent extension of the Magento platform, allowing for easy and secure online payment integration via Stripe, one of the leading payment gateways in the market. Stripe enables businesses to accept various forms of payment, providing convenience and flexibility for both customers and businesses.

Key features:

  • Increase conversion rates by automatically adding payment information and shipping addresses.
  • Automatically convert to the appropriate language, currency, and payment methods for each customer segment. As of the time of writing, Stripe supports over 25 languages, more than 135 currencies, and over 20 payment methods.
  • Allow selling subscription packages on a weekly, monthly, or yearly basis, while supporting promotions and free trials to encourage subscription purchases.
  • Handle refund processes, returns directly within the Magento Admin interface.

Pricing:

  • No free version available
  • Pricing structured for every business scale: 2.9% + 30¢ per successful transaction with local debit/credit cards.

3.7 Smart One-Step Checkout Subscription

Smart One Step Checkout Subscription

This extension provides a quick and convenient payment experience for customers, helping to reduce the time and steps required to complete an order. This contributes to increasing order completion rates and reducing cart abandonment rates.

Key features:

  • Allows for one-page checkout deployment
  • Enables configuration of the checkout page based on the specific needs of each business
  • Provides in-depth reports on the performance of the checkout page

Price:

  • No free version available
  • Free version: $13.99/month

3.8 ShipStationShipStation

ShipStation is an integrated shipping platform that helps businesses easily manage and ship orders from various sources. By automatically integrating with leading carriers, businesses can save time and effort in processing and shipping orders.

Key features:

  • Automated synchronization and centralized management of order data from various sales channels: Magento website, offline stores, Amazon, eBay, Walmart, and Alibaba.com
  • Streamlines the order fulfillment process, automating the selection of shipping service providers
  • Supports integration with a variety of carriers
  • Allows printing of hundreds of shipping labels with just a few clicks
  • Provides marketing tools such as branded order tracking pages, custom confirmation emails, branded stickers, and custom packing slips to enhance the customer experience.

Pricing:

  • No free version available
  • Paid version: starts from $9.99/month

3.9 Google Tag Manager & AnalyticsGoogle-Tag-Manager-_-Analytics

One of the noteworthy Magento extensions to consider integrating is Google Tag Manager & Analytics. This is a Google management and analytics tool that seamlessly integrates with the Magento website system, allowing businesses to track and analyze customer behavior on the website more effectively. With this extension, businesses can easily manage tags and track the performance of marketing campaigns.

Key features:

  • Simplifying the tag management process
  • Supporting remarketing strategies
  • Seamless integration with Google Analytics. Providing detailed reports on purchase behavior, payment behavior, sales performance, etc.
  • Seamless integration with Facebook Pixel, allowing businesses to track conversion rates to enhance sales funnel and marketing strategies.

Pricing:

  • No free version available
  • Paid version: $149 one-time payment

3.10 Reward PointsReward Points

This extension allows businesses to create attractive reward point programs on the Magento website. This contributes to encouraging customer loyalty and increasing conversion rates. By providing rewards for every shopping action, customers are incentivized to return and shop more frequently.

Key features:

  • Allowing the setup of rules and conditions for the point system
  • Providing advanced options to efficiently manage loyalty programs
  • Personalizing programs for specific customer segments
  • Using CSV files to transfer reward point data between stores

Pricing:

  • No free version available
  • Paid version: $199 one-time payment

Final Words

Above are the 10 best Magento extensions, ranging from free options to paid solutions. Using extensions provides many opportunities to improve business performance and create the best shopping experience for customers.

Need advice on choosing the best-suited extensions for your Magento store? Contact SECOMM today!

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Top 10 largest eCommerce websites in Singapore 2024
Top 10 Largest eCommerce Websites in Singapore 2024

Online shopping has become an indispensable trend in Singapore. Therefore, consumers in this city have set higher demands for their online shopping experience, driving businesses to strive for optimizing their eCommerce websites to provide a unique and best shopping experience for customers.

Below are 10 brands heavily investing in the online shopping experience in Singapore, as collected by SECOMM from BuiltWith, AfterShip, and Similarweb.

1. Charles & KeithCK

Charles & Keith, a leading fashion brand in Singapore, was founded in 1996 by two brothers Charles and Keith Wong. Focusing on footwear, handbags, and fashion accessories, Charles & Keith quickly gained attention in the market for its modern, youthful fashion style at affordable prices.

Charles & Keith has chosen Salesforce Commerce Cloud to build its website. Thus, Charles & Keith’s website features a range of functions to create the most convenient and comfortable online shopping experience for users. These include advanced search with filtering and sorting, detailed product views with high-quality images and customer ratings, secure shopping cart and payment, along with order tracking and purchase history. Additionally, customers can enjoy loyalty rewards, seek customer support, read fashion blogs, and connect on social media to stay updated on the latest trends. With this diversity and convenience, Charles & Keith’s eCommerce website in Singapore has provided an excellent online shopping experience for users.

  • Website: https://www.charleskeith.com/
  • Industry: Fashion
  • Platform: Salesforce Commerce Cloud
  • Traffic: 2.412M/month
  • Ranking: #18,543 (Singapore) & #24,487 (Global)

2. FortyTwoForty Two

FortyTwo is a furniture and home accessories brand established in Singapore in 2007. FortyTwo offers a range of products from bedroom furniture, living room, kitchen to household items and interior decoration. The brand is known for providing quality products at competitive prices with fast delivery and attentive customer service. FortyTwo regularly updates and expands its product portfolio to meet diverse customer needs.

FortyTwo’s website is built on the Magento Open Source platform (Adobe Commerce free version). With this website, users can easily search and filter products, explore a variety of product categories from furniture to household items. Additionally, the website offers the ability to integrate attractive promotional campaigns and customer support, along with fast and secure delivery services.

  • Website: https://www.fortytwo.sg/
  • Industry: Furniture
  • Platform: Magento Open Source
  • Traffic: 625,855/month
  • Ranking: #493 (Singapore) & #107,563 (Global)

3. COURTSCOURTS

COURTS is a leading electronics retailer in Singapore, Malaysia, and Indonesia. With over 40 years of experience, COURTS offers customers a wide range of product choices, convenient services, and competitive prices.

COURTS uses Magento Open Source to build its eCommerce website. This website provides diverse and convenient online shopping experiences for users with functions such as product categories, specific product search, store information, and order tracking on the website. COURTS also provides support services and information about promotional programs and product news.

  • Website: https://www.courts.com.sg/
  • Industry: Electronics
  • Platform: Magento Open Source
  • Traffic: 510,240/month
  • Ranking: #502 (Singapore) & #105,498 (Global)

4. Guardian SingaporeGuardian

Guardian is a retail chain specializing in health care, cosmetics, and other consumer products. Guardian has a presence in many countries and regions around the world, including Singapore, with a range of products from famous and reliable brands.

Guardian’s website is built on the SAP Commerce Cloud platform, offering many useful features for users. Customers can easily search and purchase products, manage their shopping carts, and make convenient payments. At the same time, the website offers promotions and online support services to help customers have a comfortable and safe online shopping experience. Moreover, customers can also rate and provide feedback on products, providing useful information for other users.

  • Website: https://www.guardian.com.sg/
  • Industry: Cosmetics
  • Platform: SAP Commerce Cloud
  • Traffic: 429,041/month
  • Ranking: #462 (Singapore) & #110,350 (Global)

5. Sephora SingaporeSephora

Similar to Guardian, Sephora is a global retail chain of cosmetics and beauty products, known for offering a range of cosmetics, skincare, and beauty products from leading brands worldwide. Currently, Sephora has a presence in the Singapore market with physical stores in major shopping centers and an eCommerce system, including a website and app for customers. Sephora is favored for its product diversity, customer care services, and innovation in the online cosmetics shopping experience.

Sephora’s eCommerce system in Singapore is built on the Vue.js and Nuxt.js programming languages. With this system, Sephora customers can quickly search and explore products through smart search and various filters. The online shopping experience is optimized with detailed product information, sharp images, and customer reviews.

Sephora’s app is also highly rated, making shopping easier for customers with features like “Virtual Artist” and receiving notifications about promotions. In general, Sephora offers a range of features and services to meet customers’ cosmetics shopping needs, creating a professional and convenient online shopping experience.

  • Website: https://www.sephora.sg/
  • Industry: Cosmetics
  • Programming Languages: Vue.js, Nuxt.js
  • Traffic: 396,282/month
  • Ranking: #714 (Singapore) & #136,020 (Global)

6. Pet Lovers CentrePet Lovers Centre

Pet Lovers Centre is a leading pet products and services retailer in Asia. Established in 1973 in Singapore, Pet Lovers Centre now has over 160 stores in 5 countries: Singapore, Malaysia, Thailand, the Philippines, and Vietnam. Pet Lovers Centre is committed to providing quality products and services from reputable brands at competitive prices.

The Pet Lovers Centre website is built using PHP programming language and has outstanding features to provide users with a convenient online shopping experience. Users can search for products based on various criteria and use filters to select suitable products. The multi-layered product categories are classified by pet type, ensuring diversity and richness. The VIP Member program brings benefits to customer loyalty strategies. Integrating customer reviews on Google Maps helps users evaluate the quality of products and services provided by Pet Lovers Centre. Additionally, the website builds a quick shopping function to save time, customer management feature, and reorder support to efficiently manage customer information and orders.

7. HipVanHipVan

HipVan is an online retail website specializing in furniture and home decor, headquartered in Singapore. The brand was founded in 2013 with the aim of providing customers with high-quality furniture products at affordable prices, along with a convenient shopping experience and excellent customer service.

HipVan’s website is built using the Ruby on Rails and React framework, with Ruby being the primary programming language. Its notable features include building a community for sharing interior design ideas, image-based product search, and allowing customers to upload images of desired products. Particularly, the augmented reality (AR) feature enables customers to view products in their real-life space before making a purchase. Additionally, HipVan offers free interior planning services to help customers conveniently plan and design their living space.

  • Website: https://www.hipvan.com/
  • Industry: Furniture
  • Frameworks: Ruby on Rails, React
  • Traffic: 215,919/month
  • Ranking: #1,034 (Singapore) & #225,419 (Global)

8. The Hour GlassThe Hour Glass

The Hour Glass is a premium watch retailer in Singapore founded in 1974. Currently, The Hour Glass has over 50 stores worldwide and is an authorized distributor for many leading watch brands such as Rolex, Patek Philippe, Audemars Piguet, Omega, Cartier, and more.

The Hour Glass’s online store is built on the WooCommerce platform and CMS WordPress, providing a convenient platform for customers to explore and purchase watches from renowned brands like Rolex, Patek Philippe, Audemars Piguet, and other luxury brands. In addition to product offerings, the website also provides detailed information about the services offered by The Hour Glass, including repairs, maintenance, and polishing of watches, to help customers maintain and preserve their products effectively. Furthermore, the website continuously updates the latest news in the watch industry along with special events organized by The Hour Glass, creating a comprehensive and immersive experience for users.

  • Website: https://www.thehourglass.com/
  • Industry: Watches
  • Platform: WooCommerce
  • Traffic: 206,204/month
  • Ranking: #3,305 (Singapore) & #201,956 (Global)

9. MegafurnitureMegafurniture

Megafurniture is a furniture retail company in Singapore, specializing in providing a range of furniture products for living rooms, bedrooms, dining rooms, and various other spaces in homes. Megafurniture is known for offering affordable and high-quality products, attracting the interest of many consumers. Additionally, the furniture brand is also renowned for its early investment in the online store, allowing customers to conveniently shop for furniture online.

Megafurniture’s website is built on the leading Shopify Plus platform, with basic and advanced features optimized for the furniture industry. The purchasing process is designed to be simple and straightforward, providing a convenient online shopping experience for customers. Secure online payment support through various methods increases flexibility for consumers. Megafurniture also offers multiple delivery and installation options to meet customer needs. Moreover, features like quick product view and product comparison assist users in making smart and efficient purchasing decisions. This, combined with fast checkout features, significantly enhances the online shopping experience.

  • Website: https://megafurniture.sg/
  • Industry: Furniture
  • Platform: Shopify Plus
  • Traffic: 145,329/month
  • Ranking: #3,630 (Singapore) & #382,030 (Global)

10. Skin IncSkin Inc

Skin Inc is a skincare brand specializing in manufacturing and distributing high-quality skincare products. The company focuses on providing skincare solutions, including brightening, moisturizing, anti-aging, and treating various skin concerns.

Skin Inc transitioned from the Magento platform to Shopify Plus in 2019, aiming to enhance the customer experience by deploying multiple website versions for different markets and customer segments. Using the LaunchPad feature, Skin Inc employees can create sales events without developer assistance. Additionally, Shopify Plus seamlessly integrates with marketing tools and loyalty programs, enabling personalized communication and data-driven marketing strategies.

Conclusion

The above is a list of the top 10 eCommerce websites in Singapore. By implementing leading platforms such as Magento Open Source, Shopify Plus, and various others, these brands provide optimized online shopping experiences, attracting the interest of customers both domestically and internationally.

During its development process, SECOMM has collaborated with numerous clients from Singapore to create notable eCommerce websites, with the most prominent being the project to develop an online liquor supply system at Changi Airport.

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Top 10 Reasons to Choose Magento for B2B Commerce
TOP 10 REASONS TO CHOOSE MAGENTO FOR B2B COMMERCE

Over the past decade, Magento has solidified its position as one of the leading eCommerce platforms in the market. With its robust capabilities, the platform serves not only B2C businesses but is also a popular choice for enterprises.

By combining Magento’s strength with the specific requirements of B2B Commerce, you can leverage this platform’s powerful benefits. In the following part of the article, let’s explore 10 reasons why Magento is the ideal choice for deploying this great business model.

What is B2B Commerce?

Business-to-business commerce (B2B Commerce) refers to the buying and selling of goods or services between businesses rather than between a business and end consumers (B2C). In the B2B environment, transactions often occur on a large scale and involve large orders, long-term contracts, and strategic partnerships.

This business model has distinct characteristics and requirements compared to B2C Commerce. In the B2B world, businesses typically have more complex demands regarding product management, order management, customer management, and compatibility with enterprise resource planning (ERP), customer relationship management (CRM), and other systems.

Additionally, the business model often requires features such as order confirmation, complex payment processes, batch ordering, and wholesale pricing. For B2B enterprises, choosing a suitable eCommerce platform is crucial to ensuring business efficiency and delivering the best user experience for their partners and customers.

What is Magento?

Magento is a powerful and flexible eCommerce platform developed by Magento Inc., a subsidiary of Adobe. Launched in 2008, it quickly became one of the top choices for you looking to build and operate professional online stores.

It allows you to create custom eCommerce websites. This platform provides a range of features, including product management, order management, payment integration, customer management, and many others, enabling you to easily manage and operate your online stores efficiently.

It is built on open-source code, meaning that you can access and customize the platform’s source code based on specific technical requirements.

Ten reasons why you should choose Magento for B2B Commerce

Reason 1: Customization and scalability

Top 10 Reasons to Choose Magento for B2B Commerce
Customization & Scalability

Magento’s open-source platform characteristic enables businesses to easily and effectively expand their business scale. This is particularly important as businesses grow and must enhance the system’s scalability.

Additionally, the platform provides high customization capabilities, allowing businesses to adjust to their specific business needs flexibly. This also means that the shopping experience can be customized to become unique and tailored to the target customers.

Reason 2: The Comprehensive B2B platform

TOP 10 REASONS TO CHOOSE MAGENTO FOR B2B COMMERCE
Reason 2

In addition to offering built-in Magento B2B features, the platform allows businesses to seamlessly and quickly integrate with many third-party applications and systems, thereby creating a comprehensive and automated eCommerce system. Some integrated systems may include:

  • Enterprise Resource Planning (ERP) systems
  • Customer Relationship Management (CRM) systems
  • Product Information Management (PIM) systems
  • Point of Sale (POS) systems, and so on.

Reason 3: Order management

Top 10 Reasons to Choose Magento for B2B Commerce
Order management

Magento B2B provides a variety of order management features, from creating and editing orders to tracking and processing orders efficiently. This helps B2B businesses easily monitor and manage their orders accurately and consistently.

Additionally, it offers tools and features that allow tracking and analysing their orders’ performance. From generating overview reports to tracking order history and purchasing trends, the eCommerce model deployed, you can better understand your activities and make informed strategic decisions.

Reason 4: Payment and shipping options

Top 10 Reasons to Choose Magento for B2B Commerce
Payment & shipping options

Implementing Magento B2B allows you to offer more payment methods to customers, from online payments through electronic payment gateways to cash on delivery (COD).

Additionally, you can integrate various payment gateways through Magento, such as PayPal, Stripe, Authorize.Net, and many more. This ensures security and convenience in the payment process for both businesses and customers.

Reason 5: Segmentation

Top 10 Reasons to Choose Magento for B2B Commerce
Segmentation

Magento B2B provides features and tools to implement customer segmentation strategies effectively. Among these, the most notable is the Advanced Reporting feature, which provides a dashboard for tracking and analyzing sales data.

With this feature, businesses can segment customers and customize experiences based on web browsing behavior, purchase history, and various other criteria.

Reason 6: Custom user roles and permissions

Top 10 Reasons to Choose Magento for B2B Commerce
Custom user roles

Customizing user roles and permissions is an important part of optimizing the B2B purchasing process. This feature allows B2B customers to create multiple accounts with different contact details for purchasing, ordering, quoting, negotiating, and payment. Additionally, Magento B2B allows sellers to create and assign admin accounts to manage specific customers.

Reason 7: Manage pricing through shared catalogs

Top 10 Reasons to Choose Magento for B2B Commerce
Manage pricing

In B2B Commerce, Magento helps manage quotations through shared catalogs, which effectively provides product information and prices to B2B partners and customers. These catalogs can be created based on criteria such as product type, product group, or other suitable business needs.

Within each shared catalog, administrators can define prices and special conditions for each product or product group. This helps create customized quotations that meet the specific requirements of each customer.

Reason 8: Advanced inventory management

Top 10 Reasons to Choose Magento for B2B Commerce
Advanced inventory management

Inventory management is a challenging task for businesses implementing B2B Commerce. The eCommerce platform provides advanced features to effectively manage and control your inventory levels. These features allow administrators to track inventory quantities and forecast future inventory needs.

Additionally, Magento B2B helps manage special types of inventory such as damaged goods, special inventory items, or batch inventory.

Reason 9: Enhanced security

Top 10 Reasons to Choose Magento for B2B Commerce
Enhanced security

Security is an important issue when building and developing online stores in general. Magento provides many advanced features to help B2B businesses to secure their eCommerce systems. Among these, PCI Compliance, 2FA, WAF, DDoS protection, and preventing CSRF and XSS attacks are notable.

Reason 10: Technical support

Top 10 Reasons to Choose Magento for B2B Commerce
Technical support

Technical support plays a crucial role in maintaining and operating an efficient online store. Magento B2B provides tools and support services to help users address technical issues and optimize the performance of their eCommerce websites.

This includes expert support via phone, email, or online. Additionally, Magento has a large and vibrant community of developers, experts, and end-users. You can search and ask questions on the forum to receive assistance from the community.

Build your first Magento B2B site today!

In the context of the increasingly developing and fiercely competitive eCommerce market, using a powerful eCommerce platform is extremely important to ensure the success. With its unique features and superior flexibility, Magento has proven to be a top choice for building and developing B2B stores.

Need more deep advice? Contact SECOMM or call (+84)28 7108 9908 now!

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IT Outsourcing Destination China India Or Vietnam
IT Outsourcing Destination: China, India Or Vietnam?

The IT Outsourcing market worldwide is projected to grow annually by 10.99%, reaching a market value of US$777.70 billion by 2028.

While India and China have long been the go-to nations for IT dedicated teams, new players like Vietnam are gaining ground. Companies have various choices based on language, cost, culture, and government support.

In this blog, SECOMM will explore the advantages and disadvantages of outsourcing IT functions to India, China, or Vietnam. This analysis will help companies make informed decisions about which country aligns best with their resources and strategic objectives.

1. Key Considerations for Choosing an IT Outsourcing PartnerKey Considerations for Choosing an IT Outsourcing Partner

Before going further into the main points of the three countries, there are some key points that companies should be aware of when choosing an IT outsourcing partner.

1.1 Balancing Cost And Value

Selecting a partner who can provide both quality and competitive pricing is vital for the company’s campaign success. When assessing cost benefits, look beyond immediate savings. Consider the long-term expenses of communication, travel, staff turnover, and management tasks. These factors can impact your financial outcomes over time. For example, a company outsourcing to a country with low English proficiency may lead to communication challenges. To address this, the company might need to employ a local translator to ensure smooth operations.

1.2 Evaluating The Experience And Expertise Of The Outsourcing Units

A Deloitte study reveals that 59% of companies outsource software development for specialized skills and expertise. It’s important to choose partners known for providing skilled IT professionals and delivering projects akin to yours. Experience in similar projects or industries is a plus, as partners with relevant domain knowledge can offer valuable insights and tailored solutions. For example, in Vietnam, SECOMM is one of many companies proud of its ability to handle big projects globally easily due to its past experiences of working with many big names in the eCommerce industry.

1.3 Communication & Cultural Alignment

Cultural alignment and good communication are important but often ignored in outsourcing partnerships. Your partner should have values, work ethics, and communication methods similar to your company’s. Communication should be transparent and frequent throughout the project. Choosing a partner with staff who speak a language that both parties understand is important to avoid language barriers that could slow down progress.

1.4 Quality Assurance & Security Measures

Quality control is vital for software that’s free of bugs. Your outsourcing partner should follow the best practices in data security and software development. Quality assurance tests should be part of the development process to catch and fix issues early. Security is equally important for outsourced DevOps services. Check their security measures, data protection policies, and compliance with industry standards. They must protect sensitive data according to industry regulations and have clear methods for protecting intellectual property and confidential information.

2. Deep Dive into Each Country 

2.1 China

Outsourcing to China is a strategic choice for many Western companies, largely due to the cost-effective services and access to a highly skilled workforce. China’s e-commerce market is the largest globally, and the country offers a stable economic environment, low corporate taxes, and numerous top-tier seaports. Moreover, China boasts one of the world’s largest and most proficient tech talent pools, adding to its appeal as an outsourcing hub.

A. Why Should You Choose China?China

Inexpensive Workforce

Outsourcing IT to China offers clear financial benefits. Chinese developers provide services at competitive rates, which can lead to significant cost savings for businesses. This affordability doesn’t come at the expense of talent, as China has a large pool of skilled developers. The salaries for these developers are generally lower than in the US where Chinese professionals often charge around $50 to $100 an hour, with an average of around $29,840 a year.

Skilled Workforce

Moreover, China is a leading tech hub with one of the largest and most skilled IT dedicated teams in the world. By 2024, the global number of developers is expected to reach 28.7 million, with China contributing significantly to this growth. The country’s developer population is growing at a rate of 6% to 8%. China also prioritizes high-quality education, with 24 of its universities ranked among the top 200 worldwide. The Chinese government is actively launching educational initiatives to enhance technical skills, preparing its citizens for the evolving digital world.

Supportive Government Policies

The government invests in projects and infrastructure to aid these companies and streamline outsourcing. In 2020, China announced a massive $1.4 trillion investment to enhance public digital infrastructure. This investment is a boon for companies considering China for digital outsourcing, as it simplifies the integration of local talent.

B. Issues When Outsourcing To China

Additionally, there are still some issues that companies need to be aware of when contacting the IT dedicated team in China. Firstly, language barriers are significant when outsourcing to China, as not all IT professionals are proficient in English, potentially causing miscommunications and project delays. Cultural variances can also affect how communication is perceived and managed.

Additionally, on the topic of intellectual property, China’s laws may vary from those in other nations, posing a risk to the security of your ideas. Moreover, stringent data privacy and security regulations by the Chinese government can pose operational challenges for foreign IT service providers.

2.2 India

India has consistently been a dominant force in the global IT outsourcing sector, attributed to its extensive talent pool of IT experts and a favorable business ecosystem. The industry is projected to witness a compound annual growth rate (CAGR) of 17.58% between 2024 and 2028, culminating in a projected market value of USD 20.09 billion by 2028.

Clients within India’s IT outsourcing market demand cost-effective, high-caliber services. They seek partnerships with firms that offer comprehensive services, including software development, maintenance, and support, and value providers with industry-specific experience who can deliver solutions tailored to their precise needs. Additionally, India is ideal for businesses seeking experienced developers with strong communication skills for complex projects.

A. Why Should You Choose India?India

Cost-Effective

Local outsourcing providers efficiently manage the entire process, including procurement, installation, and testing, ensuring a cost-effective and seamless experience. For example, establishing a website or developing a mobile application can be expensive, but outsourcing to India can reduce these costs by nearly 50%.

Furthermore, India’s lower living costs result in more affordable labor compared to countries like the United States. To illustrate, the average yearly salary for an IT employee based on Glassdoor in India is around $20,464, starkly contrasting the U.S. average of $109,829.

Large Labour Pool

The country’s diverse population contributes to a workforce that includes programmers, scientists, financial experts, MBAs, journalists, and virtual assistants with exceptional skills.

India’s government-funded higher education system is the third-largest globally, after the US and China. According to Statistica, India has over 6.5 million graduates each year, significantly more than the Philippines, which is a major competitor in the BPO and outsourcing sector.

B. Issues When Outsourcing To India

Communication

While Indians are proficient in English, the accent may sometimes lead to misunderstandings in verbal communication. It’s advisable to conduct most communication in writing, through emails and chats, to reduce miscommunication risks and maintain a written record for reference if needed.

Privacy And Security Legislation

In software development and IT, the risk of intellectual property (IP) being copied is significant. Without proper safeguards, there’s no guarantee of protection, as projects might be resold.

To protect your interests, it’s wise to sign an NDA with your outsourcing partner. Be careful with IP issues and consider getting legal advice for big projects with substantial financial stakes.

2.3 Vietnam 

Vietnam has gained prominence in the IT outsourcing industry over the last ten years. It’s now a significant force globally, with a focus on software development, digital content, and BPO. The growth of Vietnam’s IT outsourcing sector is attributed to its youthful, talented workforce, competitive labor costs, and supportive government policies. Plus, its strategic position in Southeast Asia adds to its appeal as an outsourcing hub for regional and international businesses.

A. Why Should You Choose Vietnam?Vietnam

Cost-Effectiveness

Outsourcing to Vietnam offers a key benefit: access to skilled tech talent at affordable rates. Vietnam, located in one of the world’s most cost-effective regions, has leveraged this to become the 6th top destination for software development. In 2022, Vietnam was rated 99.6/100 for low manufacturing costs by US NEWS and is among the lowest in Asia.

This results in significantly reduced IT outsourcing costs compared to other countries. For instance, the average annual income for a developer in Vietnam is approximately $7, 173, which is the lowest among the three. This represents a cost reduction of up to 94% compared to the US, 65% compared to India, and 76% compared to China.

Qualified IT Human Resources

Vietnam’s pool of highly educated and tech-savvy young professionals, many of whom have studied or worked abroad, makes it an attractive destination for outsourcing. Additionally, Vietnam offers technical training in various programming languages through its universities and technical schools, producing around 400,000 IT engineering graduates and 50,000 IT students annually.

Overall, Vietnam is well-equipped to meet the skilled workforce demands of employers seeking outsourcing opportunities, with a lower turnover rate compared to other countries in the field. Companies in Vietnam experience an IT-related turnover rate of less than 5%, making it an appealing choice for businesses.

Capable Of Working With The Giants

Major multinational companies and tech giants, including Intel and Microsoft, have established a strong presence in Vietnam by outsourcing software development and IT support services. Additionally, other firms like IBM, Cisco, and Bayer are also expanding their IT roles in Vietnam.

Comparison of IT Outsourcing in China, India and Vietnam
                                                                                Comparison of IT Outsourcing in China, India and Vietnam

The involvement of these esteemed organizations serves as a testament to Vietnam’s adeptness in managing substantial outsourced or offshore software development initiatives, despite its status as a relatively small emerging nation in contrast to larger, more developed counterparts such as India and China.

3. Choosing the Right Partner!

Overall, China’s large, albeit aging, labor force and developed infrastructure are offset by rising costs and regulatory concerns. While India shines with its vast, young talent pool, cost-effectiveness, and robust infrastructure, making it a strong contender for scalability and quality. Finally, Vietnam emerges as a compelling choice with its youthful, tech-savvy workforce, competitive costs, and rapidly improving infrastructure.

Read more: IT Outsourcing in Vietnam: Benefits and Challenges

SECOMM stands out with over a decade of experience for organizations seeking a reliable IT-dedicated team in Vietnam. Engaging with SECOMM means your IT projects are in the hands of exceptional talent, driving innovation and advancing your business objectives. To explore a partnership with SECOMM, reach out or dial the hotline at (+84) 28 7108 9908 for a collaboration that can elevate your IT capabilities.

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Top 10 IT outsourcing countries
Top 10 IT Outsourcing Countries In 2024

With the economic challenges post-COVID-19, IT outsourcing has become a go-to solution for businesses aiming to use their budgets effectively. They’re partnering with outsourcing companies for IT tasks instead of solely depending on in-house teams.

Meanwhile, the IT sector is rapidly growing, fueled by ongoing tech advancements. Outsourcing is crucial to this growth, which is expected to soar to USD 525.2 billion by 2030, growing at a CAGR of 9.4% from 2023 to 2030. This points to a sustained high demand for IT outsourcing well into the decade.

When considering outsourcing software tasks, it’s crucial to identify the best countries for the job. The ideal locations are those that excel in technological expertise, offer favorable business environments, lead in innovation, and have strong English language proficiency. The following list will highlight the top 10 countries with stand-out IT dedicated teams that could be considered prime choices for IT outsourcing services.

1. IndiaIndia

India has consistently been at the forefront of the outsourcing sector and is renowned for its extensive pool of IT and software development talent. The country’s cost-effective services, proficiency in English, and solid tech infrastructure have established it as a preferred choice for global businesses. With more than 1.5 million IT graduates each year, India ensures a continuous influx of skilled professionals to satisfy the increasing demands of the outsourcing market in Asia.

Moreover, India’s cost structure is generally more affordable than Western countries, making it an attractive option for companies looking to outsource development tasks. For instance, according to Upwork, software developers in India typically charge between $18 and $39 per hour, which is significantly lower than the $50 to $60 per hour rate in the United States or Germany, with the average rate from $150 to $250 per hour. This combination of a large, skilled workforce and competitive pricing positions India favorably against other leading IT outsourcing destinations.

2. ChinaChina

Just like India, China’s massive talent pool and diverse skill set make it one of the best countries for outsourcing, and it has emerged as an IT outsourcing power dominating the labor market. With an education system that promotes Math and Science, China provides some of the world’s best technology and IT services.

In terms of talent pool, China is one of the largest producers of IT graduates worldwide, boasting over 3 million IT graduates a year (this number is quite significant compared to India due to its large population). This vast number of highly educated and skilled individuals further solidifies China’s position as a desirable destination for outsourcing.

Additionally, the Chinese government actively supports IT development and invests in education to build a strong talent base. It focuses on advancing STEM (science, technology, engineering, and mathematics) education, which is essential for the IT sector. This approach improves learning in science and math, which is foundational for IT expertise.

In 2024, China remains a competitive choice for outsourcing, with an average IT outsourcing salary of about $20-$45 an hour, striking a balance between cost-effectiveness and quality output. This affordable rate and the country’s commitment to technological advancement make China an appealing choice for businesses worldwide.

3. PhilippinesPhilippines

The Philippines is a sought-after hub for software development outsourcing and BPO is favored for its cost-effective labor and proficient workforce. English is the official language, simplifying communication and aligning with the country’s strong cultural connections to the US. This understanding of Western work culture is a significant advantage, especially since 94% of the population speaks English.

With around 190,000 developers stationed in key BPO centres like Manila, Cebu, Davao, and Bacolod, the Philippines is recognized as a leading IT outsourcing hub, especially in the healthcare and fintech sectors.

The educational system in the Philippines annually produces approximately 200,000 IT graduates, emphasizing IT and technical skills to create an adaptable and globally competitive workforce. In 2024, the average IT outsourcing salary stood at around $20-$60 an hour, affirming the Philippines’ position as one of the most economical offshore outsourcing destinations.

4. BrazilBrazil

Similar to the Philippines, Brazil shares cultural affinities with the US, which translates into high-quality IT services at competitive rates. This cultural resonance, coupled with its strategic location, makes Brazil a preferred partner for North American IT firms.

Brazil’s commitment to building a skilled tech workforce is reflected in the production of about 150,000 IT graduates each year. The government’s efforts to perfect the technological education infrastructure set Brazil apart as a top destination for offshore software development.

Although Brazil’s outsourcing costs are slightly high, with the average IT outsourcing salary at approximately $20-$50 an hour and an annual software engineer salary of around $12,000, it remains a competitive market. The country’s youthful population, 38% of which are young, positions Brazil as an ideal locale for hiring junior developers, underlining its robust and skilled tech workforce.

5. VietnamVietnam

Vietnam is advancing as a notable destination for IT outsourcing, backed by a vast pool of skilled IT professionals. The country’s educational system, with over 300 IT-focused universities and centres, produces around 57,000 IT graduates each year. The Vietnamese government’s dedication to the IT sector is evident through supportive policies and incentives, contributing to Vietnam’s ranking within the top 50 digital nations.

The IT outsourcing market in Vietnam is forecasted to reach $698.90 million in revenue in 2024, with an anticipated annual growth rate of 16.38%, leading to a market volume of $1,282.00 million by 2028. The enterprise software segment is expected to achieve a market size of $247.3 million by the end of 2024. Moreover, the average spend per IT outsourcing employee is projected to be $11.80 an hour in 2024. These figures highlight a dynamic IT outsourcing market with an outstanding IT dedicated team in Vietnam, with growing employment and increasing value per employee, reflecting the nation’s investment in education and technological infrastructure.

6. PolandPoland

Poland is a standout choice for IT outsourcing within Europe. Its central position in Europe and EU membership and a strong pool of software engineering talent make it an attractive base for businesses looking to grow in the European market.

The country’s IT industry is well-developed and supported by numerous universities that provide computer science education. Recent reports indicate that there are between 63,000 and 78,000 students enrolled in IT and ICT degree programs, with an annual graduation rate of about 10,500 to 13,500.

A significant draw for the IT Outsourcing market in Poland is the cost-effective yet highly skilled workforce, which is more affordable than in many other European nations. The cost for offshore software development services in Poland typically ranges from $40 to $56 per hour, depending on the project. This positions Poland as one of the leading Eastern European countries for cost-efficient programming expertise.

7. MalaysiaMalaysia

Malaysia is gaining traction in the IT outsourcing industry due to its cost-effective solutions and skilled workforce. Over 60% of Malaysians speak English, which, along with strong government support, makes the country an appealing outsourcing destination.

Annually, Malaysia produces around 100,000 IT graduates, reflecting its commitment to digital skills development. The government bolsters this with initiatives like tax incentives and funding for R&D.

In Malaysia’s tech sector, the average monthly salary is about $3,500, with an hourly rate of $14. These rates are lower than in the US or Western Europe. Moreover, a key development in Malaysia’s IT outsourcing is the growth of cloud computing and mobile app development. IT firms are investing in these technologies to offer better and more cost-effective services.

8. ArgentinaArgentina

Argentina’s IT industry is attractive to US and European clients due to English proficiency, cultural similarities, and time zone alignment. Competitive pricing and a highly skilled workforce add to its appeal. Web developers’ costs vary from $20 to $60 per hour, or around $14,100 yearly, based on experience.

With over 115,000 developers, many from top universities, Argentina’s education quality is evident. The country’s 2023 QS World University Rankings featured over 40 renowned computer science programs, 14 of which are in Buenos Aires, ensuring well-educated IT professionals.

9. EgyptEgypt

Egypt’s rise in the IT outsourcing market is attributed to its skilled workforce and cost-competitive services. The country’s low labor costs, combined with a large pool of engineering and development talent, make it a lucrative option for companies seeking IT outsourcing services.

The average hourly rate for IT outsourcing in Egypt in 2024 was between $25 and $50, presenting a budget-friendly choice for businesses. The ITIDA reports that an IT professional’s average annual salary in Egypt is about $10,000, significantly below the global average of $45,000.

Egypt’s educational system contributes around 50,000 IT graduates each year to the industry, ensuring a steady supply of technically skilled professionals. The Egyptian government is proactively enhancing the IT sector by offering incentives and training to expand the talent pool. This initiative is expected to grow the industry significantly.

10. MexicoMexico

Mexico’s IT Outsourcing market is attractive for several reasons, including cost savings, access to a pool of skilled talent, and the ability to quickly scale operations.

In 2024, the average hourly rate for IT outsourcing in Mexico was estimated to be between $20 and $40. While this rate is slightly higher than some other outsourcing destinations, it is balanced by the advantages of geographical closeness, time zone compatibility with the US, and a deep understanding of Western business practices.

Mexico’s higher education system is on par with that of the United States and Europe, contributing to the supply of skilled IT professionals, with approximately 120,000 IT graduates produced annually.

The Mexican IT Outsourcing industry has seen steady growth over the past decade and is currently ranked as the fourth-largest IT outsourcing destination in Latin America. The industry’s expansion is expected to continue, driven by increasing demand for services such as software development, data analytics, and cloud computing.

To Sum Up!

The IT outsourcing market in 2024 is a strategic asset for businesses aiming to innovate and grow. It offers cost-effective access to skilled talent, driving operational efficiency and competitive advantage. Outsourcing is no longer just an option; it’s a strategic necessity that allows companies to focus on core competencies while outsourcing non-core activities to experts worldwide.

At Secomm, we can provide you with the best of our IT dedicated team, who have more than 10 years of experience in the IT sector. Feel free to contact SECOMM or call our hotline at (+84) 28 7108 9908 to ensure that your IT operations are handled by top-tier talent, fostering innovation and propelling your business forward.

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What is Cloud eCommerce Benefits from Cloud eCommerce
WHAT IS CLOUD ECOMMERCE? 4 KEY BENEFITS OF CLOUD ECOMMERCE

eCommerce has been booming more than ever, driving the demand for new technologies to adapt to the continuous growth of the market. Some emerging eCommerce technologies include VR/AR, MSI (Multi-Source Inventory), PWA (Progressive Web Apps), Headless Commerce, etc. However, among these, the technology that developers and businesses are currently paying the most attention to is Cloud eCommerce.

What is Cloud eCommerce?

Cloud eCommerce utilizes server clusters and cloud computing systems from cloud service providers to process large transaction volumes and online sales channel traffic. In simpler terms, Cloud eCommerce involves renting Internet servers based on cloud platforms to process, store, or use applications for various eCommerce business purposes.

What is Cloud eCommerce Benefits from Cloud eCommerce-What is Cloud eCommerce
What is Cloud eCommerce?

Before cloud-based eCommerce platforms and other solutions emerged, traditional eCommerce platforms like IBM WebSphere and Oracle ATG required on-premise server setups and continuous maintenance. Unlike those “on-premise” eCommerce solutions, cloud-based eCommerce allows companies to outsource their IT infrastructure without the need to invest in equipment and continuous maintenance as before.

This solution helps businesses adapt to the increasing demands of customers, enhance security, simplify maintenance, and integrate new eCommerce applications as needed. For these reasons, Cloud eCommerce is often combined with eCommerce platforms such as Shopify Plus, Salesforce, Magento, etc.

Cloud eCommerce Solutions

There are several cloud eCommerce solutions to choose from, including IaaS, PaaS, and SaaS, each with different resource requirements.

What is Cloud eCommerce Benefits from Cloud eCommerce-Cloud eCommerce Solutions
Cloud eCommerce Solutions: IaaS, PaaS and SaaS

IaaS eCommerce

Infrastructure as a Service (IaaS) is where businesses rent physical resources such as servers, databases, and network equipment to build a sustainable eCommerce architecture. IaaS eCommerce focuses on providing on-demand data storage on disks and virtual servers, making it easy for businesses to use database services rather than dealing with hardware. However, businesses are responsible for managing applications, data, runtime, middleware, and the operating system on this infrastructure.

Notable IaaS providers include Amazon AWS, Microsoft Azure, and Digital Ocean. IaaS is suitable for businesses wanting full control over the system without the complexity of on-premise eCommerce.

PaaS eCommerce

Platform as a Service (PaaS) is similar to IaaS but requires less infrastructure management, allowing more time to build eCommerce applications using predefined infrastructure with pre-defined operating systems and processes to handle resources, planning, and error correction.

For example, Google App Engine provides a PaaS environment for developers to build web applications without worrying about infrastructure. PaaS eCommerce is suitable for businesses needing to build specialized eCommerce applications and are willing to eliminate infrastructure-related factors in their technology stack.

SaaS eCommerce

Software as a Service (SaaS) provides ready-made eCommerce services, including complete eCommerce solutions or individual eCommerce applications like Product Information Management (PIM) software, Order Management System (OMS), etc. SaaS eCommerce providers are responsible for managing both the infrastructure and software and businesses only need to configure the desired software. Additionally, SaaS eCommerce developers can work outside the user interface with APIs to develop custom solutions without the need for custom software development.

SaaS eCommerce is suitable for businesses that want to quickly deploy eCommerce solutions without significant involvement in infrastructure and software management.

Cloud eCommerce benefits

What is Cloud eCommerce Benefits from Cloud eCommerce-Cloud eCommerce Benefits
Cloud eCommerce Benefits

High scalability

Cloud eCommerce inherits features from PaaS, making it easier to expand system functionality.

Typically, when fashion businesses start, they may not initially focus on scalability. However, from a strategic perspective, investing in technologies with scalability capabilities, such as Cloud eCommerce, can help businesses expand system functionality in each stage of eCommerce website development to foster business growth.

Improve page loading speed

According to Think with Google, if a website takes up to 6 seconds to load, the probability of users bouncing increases by 106%. That’s why businesses need to focus on page load speed.

When an eCommerce website leverages Cloud eCommerce with data stored on a cloud platform, the speed of processing queries and API calls is significantly faster.

Increase security

In the current era of the 4.0 technological revolution, the concern for data loss is a major focus for business leaders. As a response to this, numerous new technologies have emerged to address this goal.

According to PC Magazine, Cloud eCommerce provides control over data and storage locations, along with options such as physical backups and file synchronization to ensure data safety. Additionally, Cloud eCommerce supports businesses in obtaining PCI-DSS (Payment Card Industry Data Security Standard) certification, enhancing the credibility of their website.

Increased stability

Typically, businesses struggle to optimize storage capacity on their websites, especially when facing a massive surge in traffic during peak seasons, such as the “sale hunting” period. This sudden increase in workload poses a significant challenge to storage operations.

Cloud eCommerce offers a flexible solution to meet the demands of unpredictable spikes in traffic, whether seasonal or even hourly. It can dynamically scale up or down to support the real-time needs of a business. Overall, Cloud eCommerce is becoming a widely adopted technology in the digital transformation journey, helping businesses expand their functionality, improve page loading speeds, and enhance the security and stability of their websites.

However, mastering these new technologies requires programmers to possess a significant amount of specialized knowledge and hands-on experience with various complex projects. As a result, the costs associated with implementing Cloud eCommerce can be relatively high.

With over 9 years of experience designing complex eCommerce systems for companies like An Nam Gourmet, Laybyland, Jasnor, etc., SECOMM understands the challenges that businesses face when exploring new eCommerce technologies. 

Contact SECOMM today for a free consultation on detailed eCommerce system development solutions!

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