The Ultimate Checklist for Selecting Software for 8-Figure E-commerce Brands

The Ultimate Checklist for Selecting Software for 8-Figure E-commerce Brands

Choosing the right software becomes critical as your e-commerce brand scales to 8 figures. If you leave software selection to operational leaders without experience, they might overlook essential factors that can lead to costly mistakes. Don’t learn system limitations the hard way—use this checklist to evaluate vendors effectively.

Out-of-the-box integrations work fine at 7 figures

Out-of-the-box integrations work fine at 7 figures. But as you grow to 8 figures, these integrations can break during peak periods or product launches. Review integration specs and API limits carefully. Ensure your budget includes an integration platform from day one. Overlooking this can lead to expensive issues down the line.

Revenue or Volume-Based Pricing

SaaS companies often tie pricing to your revenue or usage, which can be unavoidable. However, ensure the pricing model doesn’t scale linearly with your growth. Negotiate terms so that costs taper off as your numbers rise.

Contract Terms

When selecting major systems like ERP or WMS, take your time and aim for a 3-year deal at a good rate, rather than hedging your bets on year-to-year contracts. Everything else can go month-to-month or annual. Be vigilant about data ownership—some platforms may retain your data when you decide to leave.

Negotiate Like a Pro

Software vendors often operate with 90% margins, and prices can increase significantly for 8-figure brands. Use the weaknesses you identify during the buying process as leverage for a better deal. Be cautious of revenue pricing that starts at contract signature—this is common in ERP contracts. To get the best terms, aim to buy at the end of a quarter or year when salespeople are eager to close deals.

Long List and Shortlist Against Criteria

Start by compiling a long list of potential tools—using resources like a list of 750+ tools—and then refine it based on clear criteria. Seek recommendations from communities and other founders, then document why certain tools didn’t make the shortlist. Remember, treat vendors as partners; a strong relationship will help you secure the best deal.

Conclusion

Save this checklist to avoid costly software pitfalls as your e-commerce brand scales:

Inspect integrations
Revenue or volume-based pricing
Contract terms
Negotiate like a pro
Long list and shortlist against criteria

By following these steps, you’ll make smarter software choices, avoid common pitfalls, and ensure your brand grows smoothly.