Online store development analysis — specify the cost of the project and avoid costly mistakes
Every online store development project starts with the preparation of an offer — it gives a general size, but is not a detailed analysis. Bidding is never nuanced enough to estimate the true cost of development. For a larger and more complex project, it is recommended to order a separate analysis to provide certainty about the budget and scope.
The Lumav analysis method involves your team, analyst AND developers at the same table — we also involve top specialists from outside the company to achieve the best results. The analysis is often done in parallel with the UX analysis. The result is a technical baseline that is commercially viable and technically feasible — with an accurate investment estimate. You can use the obtained result in the business plan to defend the construction of a new business line to the board. That way you know before the development if there is enough budget and what you will get for it.
Why does an online store need analysis before development?
Many companies start online store development with the thought “we already know what we want”. The reality is more complicated — and it’s better to involve the parties in the analysis right from the start than to fix costly mistakes later.
The customer may not realize what is best for the growth of his online store. In 15+ years and over 300 projects, we have seen the client’s initial vision change 60% of the time after technical analysis. Why? Because it is only in the analysis that the real limitations and possibilities are revealed — whether to build a special solution, adapt a free software solution to the needs, find a suitable module or an external service. A small process change can dramatically change the cost of development.
It also often turns out that one person in the company asks for a quote, but the actual customer within the company is someone else. Analysis brings all parties to the table.
Specific risks identified by the analysis:
- The ERP system does not support the desired e-business structure — for example, inventory is not real-time, because the API does not support the logic of multiple warehouses.
- Finding solutions suitable for the data needs of the business side — the real complexity of e-business integrations becomes clear only when the development team evaluates the data flows.
- The desired features are not in the platform standard or are not sufficiently in the desired form — this means custom development, which significantly changes the schedule and budget.
- The designer described a solution that is disproportionately expensive — a beautiful prototype is one thing, its technical implementation is quite another.
- The analysis gives certainty about the budget of the online store, because you avoid turning around halfway.
What happens if the analysis is skipped?
Imagine: you have already invested 30,000 euros in the development of the online store. In the middle of the project, it turns out that the ERP integration needs a custom solution instead — the final price is 60,000 euros. You have two options: pay double or leave the project unfinished. Neither option is good.
This is not a hypothetical scenario. We know of several large development projects that have remained unfinished precisely because a thorough analysis was not carried out and the budget ended halfway. A quote is never nuanced enough to estimate the true cost of development. The client’s needs are not sufficiently analyzed, including the business side. Even more, we know projects whose budget is many times more expensive than planned.
3 main risks without analysis:
- The project goes 50-100% over budget. Initially, one amount is promised, but in the middle of the project it turns out that the integration needs custom development. The analysis would have predicted this.
- An important internal party is left out and the “wrong” thing is started to be built. Not understanding what is in and what is out of the offer. The money has been spent, but the online store has not been put into operation. Worst case scenario — you lose both money and time.
- The desired functionality cannot be achieved with this software. “We want a standard solution because it’s cheap and fast” — 6 months later it turns out that the platform does not support B2B wholesale price logic or ERP integration.
We already know what we want — why do we need analysis?
The experience of 300+ projects shows that the client’s initial vision changes in 60% of cases after technical analysis. It often turns out that the desired solution is too expensive or the ERP does not support it. You don’t know what you don’t know — that’s what analysis finds out.
How does the Lumav assay method reduce risk?
The analysis usually goes like this: the analyst describes the business requirements on paper and sends them to the developers. Developers start working — and it turns out that half of the things are unrealistic or very expensive. Lumav does it differently.
Why does it work? Because the developers are present during the analysis and immediately say: “This functionality is expensive to achieve, but there is another way.” You will receive an ongoing assessment of whether to proceed with this process, not an optimistic sales offer.
Lumav’s 3-way method:
- Your team — describes business requirements, goals and processes
- Lumav Analyst — Structures business requirements into technical specifications
- Development Team — Evaluate feasibility, time and complexity IMMEDIATELY
Step 1. Initial consultation
We understand the strategic goals of e-business and what is important. This is often done in parallel with UX analysis.
Step 2. Business requirements workshop
Your team describes processes, developers ask technical questions. Here it becomes clear what is easy and what is difficult. According to the established scope and thoroughness — if any part is business critical, separate workshops are held for it.
Step 3. Technical baseline task
The analyst structures the business requirements, the developers estimate the time consumption of each functionality. It becomes clear when it is a module and when it is a special development, when it is external software.
Step 4. Investment appraisal
Based on the source task, you will get an accurate price or an estimate that offers a range, divided by stages.
Step 5. Decision point
You decide whether to start development, adjust the scope or take the offer with you to another developer.
What do you get during the analysis?
Depending on the scope and detail of the analysis, the final result may contain different elements. We decide the detail according to which elements we focus on:
Functionalities and stages
Detailed description of functionalities — what exactly is being developed. In addition, a recommendation on which developments to leave for the next phase and a breakdown by phase: design, development, integrations, testing, launch.
Integrations and data flows
List of integrations and data flows, for example ERP → online store: products, stock, prices. Also used external software, including marketing.
SEO, Marketing and Competitors
SEO analysis, marketing analysis with an external partner and e-business analysis of competitors with an external partner.
Business process analysis
Let’s review how order processing, returns and other internal processes work.
Wireframes and testing
UI wireframes when the design is not complete. Scope of testing — what is tested and how.
Assessment, Timeline and Risk Analysis
Investment valuation — an exact price or a price that offers a range. Time schedule — when what stage will take place. Risk analysis — technical risks, business risks and recommendations to reduce scope if budget is limited.
Lumav’s analysis showed us that our original vision would have cost 2x more than the budget. We changed the scope and got exactly what we needed — without going over budget.
When to order an analysis?
Analysis is NOT necessary for everyone. Here is a clear breakdown.
When is the analysis recommended?
- For self-service portals where it is necessary to know the needs of the end customer very well
- For online stores with a complex product structure
- For projects with ERP/PIM integrations
- For projects with complex business processes — cooperation between different units
- To organize or build an international e-business system
When is analysis not necessary?
- If you don’t have an online store or a public product catalog yet and you just need to make yourself visible
- For a standard solution without integrations and custom functionalities — the market segment is not competitive and the competitive advantage is the price
- Niche products, very knowledgeable buyer — small budget, just want to experiment
When to order a detailed analysis?
- Then, if there is already a functioning system, i.e. the new solution is not time critical.
- If there is no contact with the developer, it is necessary to reverse engineer the functionalities.
- For a new online store, we recommend going live with the light version.
- We make analysis offers according to the scope of the project.
We are a small company — is analysis too expensive for us?
Analysis is recommended for larger and higher risk projects. B2C stores with a small assortment can be started even without a full analysis. You have to ask the question the other way around: can you afford a project that goes 50-100% over budget without an analysis?
Why Lumav and no one else?
Experience of 300+ projects
We apply best practices.
Adobe Bronze Partner
We can assess the complexity of an e-business platform: when a module and when special development, when external software.
20+ years of experience in developing business software itself
We can go deep into the company’s business processes. Experience in interfacing all known business software.
Certainty of the project budget
The analysis creates certainty about the project budget.
Book an analysis consultation
We specify the goals of your project, possible risks and the appropriate amount of analysis.
Frequently asked questions about online store analytics
How much does online store development analysis cost?
The price of the analysis depends on the complexity of the project. Simplified analysis (1 week) has a smaller investment, full analysis (2-4 weeks) more. We make analysis offers according to the scope of the project. Detailed analysis is done at the beginning of the project anyway — in this case, it is a separate phase separated from the project. Analysis costs 5-10% of the total project cost, but saves 20-30% of development costs because you avoid rollovers and unfinished features.
How long does the analysis take?
Simplified analysis: 1 week. Full analysis: 2-4 weeks, depending on the complexity of the project. It seems long, but it saves 2-3 months of development time because you don’t have to change the scope of the project halfway.
Is the analysis mandatory or can the development be started immediately?
Analysis is recommended for larger and higher risk projects. B2C stores with a small assortment can be started even without a full analysis. See the breakdown in the section “When to order an analysis?”.
What is done during the analysis?
During the analysis, the client, the analyst and the development team participate together. It can contain different elements according to the established scope and thoroughness. If any part is business critical (e.g. customer account view or product card), separate workshops are held for it. The result is a baseline + investment assessment + risk analysis.
Doesn’t the analysis make the project more expensive?
Analysis ensures greater customer satisfaction and competitive advantage through better planning. The team has the opportunity to take time off and find a solution together with the technical team. Analysis costs 5-10% of the entire project, but saves 20-30% of development costs. 300+ projects show that without analysis, projects go 50-100% over budget on average. The analysis is not an additional cost — it is insurance against more expensive mistakes.
Can we do the analysis for free?
Making an offer is a free analysis up to a certain limit. With this, it is possible to give a general order of magnitude for development, but small details may remain unmapped. Lumav’s detailed analysis pays for itself already in the first weeks of the project. You know BEFORE the development if the budget will continue and if there are any surprises in the integrations.
We already know what we want — why do we need analysis?
It is possible to save time and start development knowing the magnitude and limits. There are many clients whose in-house knowledge is strong and the team is stable, so that they can propose a high-quality starting task. However, 300+ projects show that the client’s initial vision changes 60% of the time after technical analysis. For example: “simple” ERP integration turns out to be 3x more complex because the API does not support multiple inventories. Analysis shows what you don’t know.
Does Lumav only analyze Magento projects?
We analyze the technical solution of e-business as a whole, and when making an analysis offer, we are honest about the business requirements when we recommend another software and/or partner. We know Magento better and are certified in this field — it’s the most feature-rich platform in the world with a free version available.
What is the difference between an online store analysis and an online store audit?
Analysis is done BEFORE development — describes what is being developed and how much it will cost. Customer: “I want to create or update an online store — where do I start?”
The audit is performed on the EXISTING store — assesses what is wrong and how to improve it. Customer: “My online store is not working well, what can I do to fix it?”
They may overlap if the existing store is not sufficiently documented and reverse engineering is required. The part of SEO analysis is especially important here.
What happens after the analysis — do we have to develop with Lumav?
No. In the analysis, you get our best knowledge and time estimate. With this document, you can ask for offers from other developers as well and, if suitable, proceed with them. In 90% of cases, clients continue with Lumav, because trust and a clear understanding of the project have been created during the analysis. After the analysis, the development of the online store begins — if you decide to continue.
Do we have to develop everything now?
You don’t have to do all the developments right away — we recommend going live with the light version. The worst online store is a store that doesn’t exist. The analysis helps to prioritize which functionality is critical in the first phase and which can wait.
Didn’t find an answer to your question? Contact us and we will answer you personally.
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