In this article, the CFO of an e-commerce software startup directs the total cost of ownership (TCO) of running Salesforce Commerce Cloud (SFCC) alongside Manhattan order management 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 this?
| SFCC + Manhattan | fabric | |||
|---|---|---|---|---|
| Fee Type | % of GMV | Annual Costs | % of GMV | Annual Costs |
| Software ¹ | 2.95% | $14,755,000 | 0.72% | $3,616,000 |
| Software Hosting & Maintenence 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
submitted by /u/gibbiv
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