The CPQ Blog

Ecommerce vs. CPQ: Which Solution is Right?

Written by Magnus Fasth | Mar 28, 2023 6:00:00 AM

CPQ software and ecommerce are two popular solutions that can help streamline sales processes, but it's important to understand the key differences between them. CPQ software is designed specifically to help companies sell complex or highly configurable products, while ecommerce is a more general approach to buying and selling products online.

Sales Focus

One of the biggest differences between CPQ and ecommerce is their sales focus. CPQ is more consultative and personalized, and is best suited for companies that sell complex products that require customization. On the other hand, ecommerce is more focused on high-level self-service and is best for businesses that sell simple, standard, or off-the-shelf products.

Cost

Another difference between the two solutions is the cost. CPQ software is typically more expensive than an ecommerce solution, but it also offers more advanced features and capabilities. Ecommerce, on the other hand, is often an open-source solution that is easy to install and use, but may not be suitable for complex or customizable products.

Advantages and Disadvantages of CPQ and ecommerce

In order to determine which solution is right for your business, it's important to understand the advantages and disadvantages of both CPQ and ecommerce.

Advantages of CPQ:

  • Efficiently selling and managing complex products
  • Product customization
  • Creating instant quotes and sending updates to the CRM
  • Manages complex pricing easily
  • Integration of orders in ERP

Advantages of ecommerce:

  • Lower cost (often open-source solution)
  • Easy to install, easy to use
  • Allows online selling, with additional plugins or extensions

Disadvantages of CPQ:

  • Higher cost than an ecommerce solution
  • Requires knowledge of the business, products, and internal processes
  • Requires some training to use

Disadvantages of ecommerce:

  • Not suitable for complex or customizable products
  • No native and limited quote management
  • Cannot manage complex pricing

Hybrid Solution: Integrating CPQ and ecommerce

While CPQ and ecommerce both have their advantages and disadvantages, a hybrid solution that integrates the two can provide the best of both worlds. By integrating CPQ with ecommerce, companies can create a seamless sales flow, with CPQ handling configuration and price management and ecommerce managing lead generation and order management.

For example, a customer could browse a company's ecommerce portal, add configurable items to their shopping cart, and then be redirected to a CPQ platform to complete their configuration and calculate the accurate price. The customer would then take their configured products back to the ecommerce platform to finalize their order.

This hybrid approach can improve the overall customer experience and increase efficiency in the sales process. It's important to keep in mind that even if you have an ecommerce platform, implementing a CPQ solution is still essential for businesses that sell complex products.

Conclusion

The best solution for your business will depend on your specific needs and the nature of your products and services. Whether you choose a standalone CPQ solution, an ecommerce platform, or a hybrid approach that integrates the two, the goal is to sell your products and services effectively and efficiently. If you are interested in learning more about CPQ software and its potential benefits for your business, consider reaching out to cpq.se and their team of expert consultants.