Interview with Insales, SaaS in e-commerce
Not so long ago, I sorted out services for renting online stores, and unknowingly called SaaS a lease, and I wrote Insales into ordinary tenants. Even then I received an explanatory letter from Alexandra Brovchuk, what Insales is and what SaaS is. The latter especially interested me.
SaaS - is translated as “software as a service”, that is, to some extent, the rent of software. The service has been successfully developing for a long time in the western market, it has its leaders, including in online commerce.
In Russia, there are about 30 companies participating in this very young market. One of them, domestic, offers SaaS-based online shopping. I decided to ask the representatives of the company InSales for an explanation of what SaaS e-commerce in Russia is.
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Alexander Brovchuk and Timofey Gorshkov agreed to answer my questions.
T.G.
The “software as a service” (SaaS) approach is really very young in Russia. There are many reasons for this: a strong lag in the depth of penetration of broadband access to the regions, and a lack of confidence in the fact that data is stored on the provider’s side, and well-established sales schemes for traditional software.
The volume of the SaaS market in Russia in 2008 is estimated at about $ 1.8 million. And if we compare its share of the IT market in the United States and Russia, then the Russian services have great potential. The largest providers in the USA (SalesForce, Omniture, RightNow) were founded before the 2000th year. In Russia, the first SaaS-providers appeared only a couple of years ago. This direction is not at all shrouded in gloom, but only takes its first steps. This spring, for example, the first SaaS conference took place, which is likely to turn into a regular event.
The traditional field for SaaS services is CRM systems and collaboration systems (collaboration and project management). Most Russian providers also offer solutions to similar problems. Although there are exceptions, for example, Moysklad.ru and our service InSales.ru. In total, there are about 30 companies in Russia that provide SaaS services, both independently and by offering foreign products.
As for the crisis, it is certainly in the hands of SaaS providers, and most likely it will be the catalyst for the active development of such services in Russia and in the world.
A.B.
Indeed, in recent times, the interest of traditional retail to online sales has increased greatly. The crisis has forced a thorough review of the policy of increasing retail space. With this, it was still necessary to at least preserve the sales volume, prevent stockpiles from accumulating and thereby freezing the working capital of companies. Therefore, even those companies that previously did not consider the Internet at all as a potential sales channel began to study new possibilities in more detail.
Also, many enterprising people were out of work or on the verge of losing it. Opening an online store is a relatively simple and inexpensive way to start a business.
These "newcomers" in e-commerce are primarily trying to solve their business problems - attracting customers, organizing the work of the store and delivery, and not developing a technical solution. It is interesting for businessmen to start selling on the same day, to understand which sources of visitors are effective, which sales model brings the greatest benefit - and immediately apply the result of the analysis to business. The desired dates for launching the store have been reduced, no one wants to wait 2-3 months before opening.
Therefore, we believe that the arrival of traditionally offline companies in Internet sales will contribute to the development of SaaS. For them it is more convenient and more profitable. Why now to invest money in the purchase of a license, refine it for yourself and in addition to spend time on the formulation of TK, performance monitoring, administrative tasks? It is much more effective to think more about sales and attracting customers.
T.G.
Thanks for the question, I love to answer it. If by rent we understand only the scheme of monthly payments, then it really seems that there are no differences. In fact, the difference becomes clear if you look for what exactly the payment goes: either it is a box set by the studio for hosting, or it is a platform where all the shops are interconnected and can receive additional benefits from the fact that it is a common site. For example, merchandise stores can automatically appear on the general trading floor. Promotional media can be integrated with stores. It is much easier for the platform to organize backup and data security. Significantly simplified software update. Correction of errors and the emergence of new functionality is much faster, because instead of waiting for the new version and updating the site of each client, the SaaS service is constantly updated as a living organism.
I discussed this issue in more detail in an article on the InSales blog “How to distinguish a real SaaS platform for an online store from a fake store lease?”
T.G.
These companies are giants in the west, in Russia both large companies and young Russian companies are practically on equal terms. The first SaaS conference showed this. It is also clear that all players need to engage in the development of the SaaS market as a whole. Until the stage of highly competitive struggle is still far.
T.G.
The application is rented collectively, but the functionality may vary. Firstly, because in some cheap tariff plans some of the functionality has been made inaccessible. Secondly, because the websites of online stores are quite flexible customizable using templates, and the site owner has the opportunity to make their own logic of work. One platform brings together different customers and different stores.
A.B.
We analyze customer needs. We receive a fairly large stream of feedback and suggestions, which significantly affect the formation of the roadmap of service development. The most requested features receive top priority in terms of development. If the requested functions are interesting and can be claimed by some other stores, then we also discuss the approximate dates of release and include them in the development plan. In some cases, we offer the client to make payment for the service for several months in advance. If the requirements are unique and will not even be in demand in the future by other stores, then we either recommend carrying out the development of the store to order in another company, or offer integration options with other (third-party) services to cover the desired functionality.
Updates may appear every few days (one of the advantages of the SaaS platform is the ease of releasing new functionality).
An information letter, sent about once every 2-3 weeks, draws the attention of our customers to the newly released new features. (further there was a long list of recent updates, - ed.)
T.G.
Most new online stores without additional services simply can not do. We assist in the promotion of online stores. For our customers who have started to pay for one of their tariff plans, we provide a free, brief audit of the site, during which we select keywords for seo-promotion and / or contextual advertising. If necessary, we help to get accounts and run promotion. A more comprehensive promotion service is also possible, when our specialist leads client advertising companies, selects and corrects a large number of requests, balances the promotion budget between various channels.
In addition to promotion, we help online stores to develop an individual design. For this service, we recommend partner studios that have experience developing stores on the InSales service, and in some cases we do projects ourselves.
A.B.
We conclude a contract with clients legal entities. Most of our clients are limited to our public offer (terms of service) laid out on our website. In any case, the choice of the form of work and payment - for the client.
T.G.
Basically it is not the warnings of experts, but the fears of customers. It is really important for customers to know how to work with their confidential information. At the same time, the risks of losing or disclosing data are far from limited only by the platform used by the online store. The risks associated with the human factor are significantly higher: from system administrators, from orders processing managers, and so on.
The InSales platform backs up data between two independent sites (different data centers), and regularly backs up information. Our administrators are constantly updating security auditing tools. The measures applied by our company to ensure reliable and stable operation of the online store are significantly more than any small or medium online store can afford. By the way, this is another plus SaaS-provider compared to renting a store on a hosting.
A.B.
There have been no such cases in our practice. Even if the client decides to buy the engine, he will have to organize his own technical team, which will be engaged in its support and development. And of course, he will no longer receive all the functionality updates. The benefits of using the InSales platform as a service outweigh.
We adhere to an open approach. If the client knows from the very beginning that they will not put sticks in the wheels when trying to change the service, then his risks from using the service are reduced. A convenient and risk-free start is one of the advantages of SaaS solutions. At the moment, the service supports the export and import of themes, the import database of goods. Soon export orders and export of commodity bases will be realized.
SaaS - is translated as “software as a service”, that is, to some extent, the rent of software. The service has been successfully developing for a long time in the western market, it has its leaders, including in online commerce.
In Russia, there are about 30 companies participating in this very young market. One of them, domestic, offers SaaS-based online shopping. I decided to ask the representatives of the company InSales for an explanation of what SaaS e-commerce in Russia is.
')
Alexander Brovchuk and Timofey Gorshkov agreed to answer my questions.
ON. (author)
Honestly, I found very little information about SaaS in Russia. Anyway, about SaaS in Russian. It turns out that in Russia this is a very young direction, shrouded in darkness? (besides the answer, please add a few sentences describing the service)
Many experts predict a threefold increase in SaaS services in the Western market in the near future, what can you say about Russia? What are the prospects? Are the forecasts associated exclusively with the crisis, or are there any other factors?
T.G.
The “software as a service” (SaaS) approach is really very young in Russia. There are many reasons for this: a strong lag in the depth of penetration of broadband access to the regions, and a lack of confidence in the fact that data is stored on the provider’s side, and well-established sales schemes for traditional software.
The volume of the SaaS market in Russia in 2008 is estimated at about $ 1.8 million. And if we compare its share of the IT market in the United States and Russia, then the Russian services have great potential. The largest providers in the USA (SalesForce, Omniture, RightNow) were founded before the 2000th year. In Russia, the first SaaS-providers appeared only a couple of years ago. This direction is not at all shrouded in gloom, but only takes its first steps. This spring, for example, the first SaaS conference took place, which is likely to turn into a regular event.
The traditional field for SaaS services is CRM systems and collaboration systems (collaboration and project management). Most Russian providers also offer solutions to similar problems. Although there are exceptions, for example, Moysklad.ru and our service InSales.ru. In total, there are about 30 companies in Russia that provide SaaS services, both independently and by offering foreign products.
As for the crisis, it is certainly in the hands of SaaS providers, and most likely it will be the catalyst for the active development of such services in Russia and in the world.
ON.
You are a young company, but probably already have some data. I know that now many companies are switching to online commerce, how has this affected SaaS in the retail industry? What are the predictions?
A.B.
Indeed, in recent times, the interest of traditional retail to online sales has increased greatly. The crisis has forced a thorough review of the policy of increasing retail space. With this, it was still necessary to at least preserve the sales volume, prevent stockpiles from accumulating and thereby freezing the working capital of companies. Therefore, even those companies that previously did not consider the Internet at all as a potential sales channel began to study new possibilities in more detail.
Also, many enterprising people were out of work or on the verge of losing it. Opening an online store is a relatively simple and inexpensive way to start a business.
These "newcomers" in e-commerce are primarily trying to solve their business problems - attracting customers, organizing the work of the store and delivery, and not developing a technical solution. It is interesting for businessmen to start selling on the same day, to understand which sources of visitors are effective, which sales model brings the greatest benefit - and immediately apply the result of the analysis to business. The desired dates for launching the store have been reduced, no one wants to wait 2-3 months before opening.
Therefore, we believe that the arrival of traditionally offline companies in Internet sales will contribute to the development of SaaS. For them it is more convenient and more profitable. Why now to invest money in the purchase of a license, refine it for yourself and in addition to spend time on the formulation of TK, performance monitoring, administrative tasks? It is much more effective to think more about sales and attracting customers.
ON.
As far as I understand, SaaS is mostly software rental. Is SaaS different from renting online stores, and how?
T.G.
Thanks for the question, I love to answer it. If by rent we understand only the scheme of monthly payments, then it really seems that there are no differences. In fact, the difference becomes clear if you look for what exactly the payment goes: either it is a box set by the studio for hosting, or it is a platform where all the shops are interconnected and can receive additional benefits from the fact that it is a common site. For example, merchandise stores can automatically appear on the general trading floor. Promotional media can be integrated with stores. It is much easier for the platform to organize backup and data security. Significantly simplified software update. Correction of errors and the emergence of new functionality is much faster, because instead of waiting for the new version and updating the site of each client, the SaaS service is constantly updated as a living organism.
I discussed this issue in more detail in an article on the InSales blog “How to distinguish a real SaaS platform for an online store from a fake store lease?”
ON.
Now advanced Western systems are actively entering the Russian market. Salesforce and NetCommerce. How can you characterize these competitors? How do you feel next to the giants?
T.G.
These companies are giants in the west, in Russia both large companies and young Russian companies are practically on equal terms. The first SaaS conference showed this. It is also clear that all players need to engage in the development of the SaaS market as a whole. Until the stage of highly competitive struggle is still far.
ON.
I would like on the example of your company to consider the work of SaaS services in e-commerce.
How is the process of providing a leased solution? Is your software rented collectively (one functionality for all), or do you install software separately for each hosting, with the possibility of individual configuration and connection of modules?
T.G.
The application is rented collectively, but the functionality may vary. Firstly, because in some cheap tariff plans some of the functionality has been made inaccessible. Secondly, because the websites of online stores are quite flexible customizable using templates, and the site owner has the opportunity to make their own logic of work. One platform brings together different customers and different stores.
ON.
How do you work with clients who need some additional modules? You once mentioned the “features”, how often do updates occur, of which plan? (to the second question, please give an example of the last update and the difference between the last two updates)
A.B.
We analyze customer needs. We receive a fairly large stream of feedback and suggestions, which significantly affect the formation of the roadmap of service development. The most requested features receive top priority in terms of development. If the requested functions are interesting and can be claimed by some other stores, then we also discuss the approximate dates of release and include them in the development plan. In some cases, we offer the client to make payment for the service for several months in advance. If the requirements are unique and will not even be in demand in the future by other stores, then we either recommend carrying out the development of the store to order in another company, or offer integration options with other (third-party) services to cover the desired functionality.
Updates may appear every few days (one of the advantages of the SaaS platform is the ease of releasing new functionality).
An information letter, sent about once every 2-3 weeks, draws the attention of our customers to the newly released new features. (further there was a long list of recent updates, - ed.)
ON.
What additional services do you provide? Do you advise your clients on the development and promotion of the store?
T.G.
Most new online stores without additional services simply can not do. We assist in the promotion of online stores. For our customers who have started to pay for one of their tariff plans, we provide a free, brief audit of the site, during which we select keywords for seo-promotion and / or contextual advertising. If necessary, we help to get accounts and run promotion. A more comprehensive promotion service is also possible, when our specialist leads client advertising companies, selects and corrects a large number of requests, balances the promotion budget between various channels.
In addition to promotion, we help online stores to develop an individual design. For this service, we recommend partner studios that have experience developing stores on the InSales service, and in some cases we do projects ourselves.
ON.
Do you enter into a contract or lease terms - this is the only thing that holds together the relationship between you and your customers?
A.B.
We conclude a contract with clients legal entities. Most of our clients are limited to our public offer (terms of service) laid out on our website. In any case, the choice of the form of work and payment - for the client.
ON.
Among experts, there are many cautions about working with SaaS solutions that you can counter them with, here is a list:
• How do you implement the protection of customer data from external attacks, what tools does the protection include?
• Backup and restore data?
T.G.
Basically it is not the warnings of experts, but the fears of customers. It is really important for customers to know how to work with their confidential information. At the same time, the risks of losing or disclosing data are far from limited only by the platform used by the online store. The risks associated with the human factor are significantly higher: from system administrators, from orders processing managers, and so on.
The InSales platform backs up data between two independent sites (different data centers), and regularly backs up information. Our administrators are constantly updating security auditing tools. The measures applied by our company to ensure reliable and stable operation of the online store are significantly more than any small or medium online store can afford. By the way, this is another plus SaaS-provider compared to renting a store on a hosting.
(continued from caution list)
The realities of the market are such that after a certain time most tenants want to buy out the engine and work without rent. What do you do in such cases?
A.B.
There have been no such cases in our practice. Even if the client decides to buy the engine, he will have to organize his own technical team, which will be engaged in its support and development. And of course, he will no longer receive all the functionality updates. The benefits of using the InSales platform as a service outweigh.
(continued from caution list)
Import and export data from other solutions, including boxed and rental-online stores? For example, I read that Salesforce cleverly tries to prevent the transition from their decisions, make export impossible: they change formats, complicate the process, and so on.
We adhere to an open approach. If the client knows from the very beginning that they will not put sticks in the wheels when trying to change the service, then his risks from using the service are reduced. A convenient and risk-free start is one of the advantages of SaaS solutions. At the moment, the service supports the export and import of themes, the import database of goods. Soon export orders and export of commodity bases will be realized.
Source: https://habr.com/ru/post/60491/
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