Over the past few months I’ve been looking into the shopping cart recovery software market. There’s been a few changes which might be of interest to you. Whether you’re buying or selling the software – it’s worth knowing this.
Over recent years, there have been more and more companies entering this market for the shopping cart recovery market. SeeWhy was the first in 2003, then companies SaleCycle followed in 2010. But it’s only been over the last years that the number of companies offering this software has proliferated.Triggered Messaging, Wired Marketing, Rejoiner among others are to name just a few.
This is generally a wider reflection of the general software market. As the cost of producing software has plummeted, and the ‘open-ness’ of APIs and plugins has risen – it’s easier than ever to create a tech startup. That means that more exist. As cart recovery software can offer so much value, and is such a lucrative market, it’s perhaps unsurprising that so many companies have joined in.
Naturally, with more competition comes falling prices. If you look at some of the newer startups in the market such as CloudIQ, they’re charging a fraction of what some the older-companies are charging.
This is generally because they’re looking to attract volume, rather than big clients. In their business plan, it’s better to have 1000 people paying you £100 a month. Rather than 100 businesses paying you £1000 a month. From the companies I’ve spoken to they’ve said they’re making this move to be more sustainable. That way you’re not too reliant on relationships that your key account managers and salespeople could hold onto if they switched companies.
That’s not to say that paying that extra money isn’t worth it. If you’re a Marks and Spencer or a big brand. You’ll want a SeeWhy or a SaleCycle because they’ll sort it all out for you. They’re at your beck and call. That support is all yours. Whereas if you’re a small e-commerce site, you probably need something much smaller, with self-service to fit your budget.
When I started writing about cart recovery, I came across the cart recovery pure plays like SaleCycle. But a lot of companies appear to offer cart recovery as part of a wider range of solutions and products. Barilliance for example, offer it alongside product recommendation tools.
Some companies would prefer to stay pure-plays, for simplicity’s sake. And others want to branch out to offer e-commerce tools.
As the price drops, and cart recovery software becomes a lot more affordable, it means more small businesses can use it. Small e-Commerce sites can now use software that was once limited to companies like Amazon and mega-corporate companies.
This is good news because everyone can start recovering more sales from their abandoned shopping carts.
The market for cart recovery software is changing, and becoming more commoditised like lots of things in the world. But it’s still growing at a ferocious pace. Only 14% of online retailers use the software at the moment according to a few surveys I’ve seen.
If you’re buying this means it’s probably better to not tie yourself into a long contract, because prices are likely to come down in future, and you’re likely to get more for your money.
If you’re a software provider, more competition isn’t necessarily a bad thing. The companies I’ve spoken to seem be making fairly healthy profits and have fairly stretched resources. However as the market matures a bit more, there’ll need to be more innovation and constant A/B testing to hold onto big clients and get a fatter chunk of the market.