9 hidden costs of delaying your platform migration

You know it's time to move on from your current ecommerce platform, but hesitation creeps in as you weigh the potential risks? Your existing system might still be running, and the costs of migration seem daunting.

Here’s the truth: sticking with an outdated platform can end up costing you far more. Let’s break it down:

#1 Load times

An outdated platform often results in slow load speeds, subpar mobile performance, and an outdated user interface – frustrating your customers and increasing cart abandonment rates. The impact? A 1-second delay in page load time can cut conversions by 7%. [1] For a business generating $100,000 in daily revenue, this adds up to $2.5 million annually in lost sales due to sluggish site performance.

#2 Mobile optimization

In 2023, 54% of all ecommerce sales were generated via mobile devices. Experts estimate that this share will even rise to 63% by 2028. [2] If your platform isn’t fully optimized for mobile, you’re likely missing out on a huge slice of the market – and leaving revenue on the table.

#3 Rising maintenance costs

Older platforms demand frequent maintenance, patches, and updates. Annual maintenance costs can climb by 15-20% as legacy systems age. Many businesses report spending 2-3 times more on IT support for outdated platforms compared to modern, cloud-based alternatives. Thus, US companies spend 85 billion US dollars annually on the maintenance of outdated technologies. [3]

#4 Scalability challenges

Growing businesses often find that outdated systems can’t handle increased traffic, transactions, or a growing catalog. During peak periods like Black Friday, 30% of businesses experience downtime due to scalability issues. For some, a single hour of downtime during a major sales event could mean losing tens of thousands – or even millions – in revenue. The 2,000 largest companies even incur costs of 400 billion US dollars annually due to downtime. [4]

#5 Security and compliance risks

Legacy platforms often lack the robust security needed to combat modern cyber threats. Non-compliance with regulations like GDPR or PCI DSS further compounds the risk. According to IBM’s 2024 report, the average cost of a data breach is $4.88 million, factoring in fines, legal fees, loss of customer trust, and recovery efforts. [5]

#6 Operational inefficiencies

Outdated systems lead to inefficiencies like slower order fulfillment or manual inventory management. According to Forrester, these inefficiencies can inflate costs by as much as 30%, reducing overall profitability and increasing labor expenses.

#7 Cart abandonment

Poor user experiences on older platforms are a major driver of cart abandonment, which can soar to 70-75%. For example, if your average cart value is $100 and you see 1,000 carts abandoned each month, a better user experience could recover $70,000 to $75,000 in monthly revenue.

#8 Lost growth opportunities

A 2021 McKinsey report revealed that businesses failing to modernize risk losing 15-20% of their market share to competitors within five years. In competitive industries, this could translate into millions in lost revenue.

#9 Lower business valuation

If you’re seeking investment or preparing for acquisition, outdated technology could reduce your business’s valuation. Potential investors or buyers may see your platform as a costly liability. Accordingly, PwC recommends that companies evaluate their IT landscape at an early stage in order to identify risks and opportunities for improvement. [6]

Conclusion: The devastating opportunity costs of delaying migration

Postponing a much-needed platform migration can lead to unnecessary expenses, lost revenue, and long-term risks for your business. Act now – Shopware can help you overcome these challenges and future-proof your ecommerce success.

We’d be happy to discuss your needs in a personal consultation: Get in touch today.

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