eCommerce Cost Optimization – How to Reduce Online Store Expenses

E-commerce expenses can be divided into several main categories. The most important are the store platform (licenses, subscriptions, hosting), development and technical support (programmer, integration, design costs), order fulfillment (warehousing, picking, shipping), payment processing (gateway fees and transaction fees), marketing and advertising (online campaigns, SEO, content marketing), customer service (call center, CRM systems, returns), and IT and maintenance (servers, security, updates). The total cost of ownership (TCO) of an online store includes both direct costs (e.g. software, implementation, salaries) and indirect costs (e.g. hosting, payment fees). For example, fixed costs include warehouse rent, employee salaries, and website maintenance fees, while variable costs include shipping and sales commissions. Simply ignoring the optimization of these expenses can reduce margins, limit investment opportunities, and weaken the company's competitiveness. In practice, this means that e-store owners must consciously analyze each cost area to avoid the so-called "budget burnout error" (e.g. poorly configured advertising campaigns) and find financial reserves.

June 18, 2025
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Aleksander Olszewski

Cost reduction without loss of quality

Cost optimization does not mean tightening your belt at the expense of quality - it is about spending money wisely. Key activities include:

  • Using SaaS solutions - platforms such as Shopify or other SaaS eliminate the need for your own infrastructure and constant server support. According to experts, in the SaaS model, the provider takes care of hosting and software updates, which simplifies budgeting and eliminates server costs. For example, external service and continuous security patches are included in the Shopify subscription, so you do not need to keep specialists to update the code.
  • Outsourcing fulfillment - outsourcing the picking and shipping process to a proven logistics company can be cheaper than building your own warehouse. Fulfillment specialists offer efficient handling of all steps, from receiving goods to shipping and handling returns. External logistics operators often have contracts for large volumes of shipments, which translates into significant discounts on shipping costs. In addition, by outsourcing fulfillment, the company pays a single fee for the service (storage, packaging, shipping), which simplifies cost calculation and allows you to focus on sales.
  • Process automation – introducing automatic solutions can significantly reduce labor costs. For example, chatbots and automated customer service tools take over simple, repetitive tasks (answering questions, tracking orders, abandoned carts). Gartner's research shows that this can reduce customer service costs by up to 30%. Marketing automation (e-mails, remarketing, segmentation) also allows you to increase the effectiveness of activities with lower labor input.
  • Using ready-made solutions instead of custom development – installing ready-made applications (modules) is usually faster and cheaper than creating functionality "from scratch". Shopify and similar platforms have rich app stores that cover the needs of marketing, inventory management, reporting, etc. (e.g. apps to connect to popular marketing tools or ERP systems). Thanks to this, you don't have to hire expensive developers for every integration - just choose a proven solution from the App Store.
  • Reduce marketing redundancies - optimize your advertising budget, focusing on channels with a high return on investment. As practice shows, as many as 80-90% of start-up stores fail due to excessive advertising expenses. It is worth using more effective forms of promotion (e.g. content marketing, SEO) and constantly monitoring the ROI indicators (e.g. ROAS) of the campaign. A focused strategy based on data analysis allows you to reduce advertising costs without losing the quality of the traffic you acquire.
  • Improve customer service and returns policy - clear procedures and automation (e.g. notifications about the status of orders) reduce the number of queries to consultants. In addition, better product information and transparent return policies reduce the return rate (which on average affects over 30% of online orders). Each return costs return shipping and restocking, so reducing the number of returns is a measurable saving. Removing unnecessary difficulties and investing in UX improvements can reduce these expenses while maintaining customer satisfaction.

How Shopify helps reduce costs

Shopify is an example of a SaaS e-commerce platform that simplifies many aspects of running an online store. First, the subscription model eliminates the costs of your own servers and ongoing administration - everything is included in the subscription. As experts emphasize, the SaaS provider takes care of regular updates, security and hosting, which simplifies budgeting. In practice, this means that regardless of the plan (Basic, Advanced, Plus), the Shopify store does not require hiring specialists to update or optimize servers.

The Shopify platform is in the cloud, which significantly reduces IT costs. The ready-made environment allows for quick store implementation and scaling without investing in your own infrastructure. Thanks to this, small companies can use technologies available to large players, and larger brands avoid constantly increasing expenses for servers and administrators.

Another advantage of Shopify is ready-made integrations and automations. For example, Shopify Flow is a workflow system that allows you to easily automate repetitive tasks (e.g. inventory management, marking high-risk orders). This allows you to relieve the operational team and reduce human errors. In addition, the Shopify ecosystem offers thousands of applications (marketing, accounting, logistics, etc.), thanks to which many store functions can be implemented without custom development. Instead of ordering a costly custom solution, just install a proven application and configure it to your needs.

For companies planning international expansion, theShopify Markets function is important. It allows you to manage sales in different markets from a single panel: you can set local currencies, languages ​​and tax rules for different countries. Thanks to this, you do not have to create separate stores for different regions - we save time and money on administration. The Marketplace allows for global expansion "from a single login", which makes it easier for Shopify companies to quickly enter new markets without additional setup costs.

Finally, in the context of total cost of ownership, IDC indicates that cost efficiency and low TCO are key for e-commerce companies. At the same time, research shows that the Shopify platform stands out in this field - the conducted analyzes suggest that the TCO of using Shopify is lower than that of competing solutions. For store owners, this means real savings in the long run: lower maintenance costs allow you to invest funds in sales development, not in constant technological improvements.

Payment cost optimization - an often overlooked reserve in eCommerce

Many online store owners do not analyze exactly how much they actually pay for card transactions, BLIK, PayPo or online transfers. Meanwhile, the differences between operators and settlement models can reach up to several percent of the basket value - which means tens of thousands of zlotys in savings per year.

Shopify allows flexible configuration of payment methods - both through Shopify Payments and external operators. Choosing the right settlement model (e.g. commission model vs. flat fee) and negotiating rates with payment providers is one of the easiest ways to improve the profitability of your store.

Do you want to check if you are not overpaying? Use our Shopify TCO calculator. See how much your store really costs and where you can find savings - also in the area of ​​​​payments. You can also watch our webinar on payment cost optimization.

Examples of process and tool optimization

Here are some specific examples of reducing costs while maintaining quality:

  • Fulfillment automation - thanks to integrations with warehouse systems (WMS) or using the company's Fulfillment Network service, you can automatically forward orders for fulfillment without manual clicking. For example, ready-made connections between a Shopify store and an external warehouse help minimize errors and speed up the fulfillment process. Dropshipping (a store that fulfills orders through external suppliers) is also a form of warehouse outsourcing – Shoper notes that it allows you to reduce the costs of storing and purchasing goods.
  • Marketing automation – email marketing systems (e.g. Shopify Email or Klaviyo) can be connected to Flow or Shopify Inbox to automatically send messages to customers (e.g. notifications about abandoned carts or product recommendations). This increases conversions with little work. Advertising campaigns should also be optimized through data analysis (A/B testing) and the use of tracking tools, which reduces budget burnout.
  • Choosing an application instead of custom development – often instead of creating new functions from scratch, you can use existing applications. For example, for customer relationship management (CRM), loyalty programs, opinions or accounting, there are ready-made solutions available in the Shopify App Store. This allows you to avoid the costs of hiring programmers, as well as quickly implement new functionalities.
  • Migrating to Shopify – switching from your own e-commerce platform to Shopify can provide significant savings. This is what happened to brands such as Dollar Shave Club, which, after migrating to Shopify Plus, reduced their technology maintenance expenses (by 40%) and accelerated their global expansion (source: internal Shopify case study). Although we do not always have access to statistics, similar effects are achieved by companies that give up extensive, independently maintained systems in favor of a ready-made platform. Shortening the implementation time and reducing technical support costs translates directly into lower TCO.

Long-term perspective: scalability and TCO

Cost optimization is not a one-time expense cut, but an ongoing process of long-term thinking. An online store must be scalable – as it grows with the business, it cannot generate higher and higher expenses in proportion to turnover. Here again, cloud solutions have an advantage: even with a sudden increase in traffic (e.g. Black Friday), a platform such as Shopify automatically increases the power of the servers and maintains the online store, without additional investment on the part of the owner. This ensures that sales success does not mean a sudden increase in costs.

It is also important to include TCO in investment decisions. Instead of looking only at a single invoice (e.g. platform price or equipment loan speed), you need to analyze the total expenses for the coming years. This assumes calculating, among others, the costs of updates, technical support, integration or data migration. A good understanding of TCO allows you to determine which investments provide the greatest value in the perspective of 3-5 years. It is worth remembering that a more expensive solution at the start (e.g. a more extensive Shopify Plus plan) may turn out to be cheaper in the long run thanks to built-in automation, premium support, and better infrastructure.

Proper scaling and planning also means paying attention tofixed costs. For example, renegotiating warehouse contracts or choosing a form of lease can bring savings, as long as it is not covered by a decrease in quality. The balance between price and quality is key here - according to Dealavo, companies that cut costs too aggressively often lose customers and reputation. Therefore, you should prioritize investments in key areas (such as customer service or UX), and implement smaller improvements in small steps, constantly measuring the effects.

Recommendations: where to start, how to measure effects, and traps to avoid

It is worth starting cost optimization with a thorough audit of expenses - it is best to collect financial data from recent months and identify the largest items. Then you can gradually introduce changes, starting with areas with the greatest potential for savings. Important tools include ROI analyzes of individual activities (e.g. ROAS in marketing) and operational indicators (order handling time, customer service cost, average customer acquisition cost). Thanks to this, each improvement can be measured and assessed whether it brings the expected return.

Practical steps include, for example, setting up automatic reports and monitoring key metrics after implementing each change. If, after optimizing a marketing campaign, sales increase for the same amount, it means success. On the other hand, an increase in customer dissatisfaction or an outflow of traffic after reducing some expense is a sign that a "critical point" has been exceeded - then it is better to restore the previous state.

During optimization, you should also watch out for "traps". Too aggressive cost cutting without analysis can result in a decrease in the quality of the offer or service - companies that neglect the balance between price and quality often lose their market position. It is also not worth delaying the introduction of analytical tools - delaying ROI monitoring causes uncontrolled expenses. Remember that lack of financial flexibility can freeze business development and block important investments. That is why we recommend systematic budget monitoring, choosing proven solutions (e.g. recommended applications or platforms) and stages of testing changes on a small scale (A/B method). Only then will the cost optimization process bring lasting benefits without the dangers described in industry guides.

To sum up, eCommerce cost optimization requires a holistic approach. The key is TCO analysis and focusing on automation and intelligent use of available tools (especially platforms such as Shopify). Thanks to this, stores can grow more effectively, investing in development, and not burning through unnecessary funds.

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