Skip to main content

How Much Should You Spend Integrating E-Commerce Into Microsoft Dynamics AX, GP, or CRM?

by Jamie Lippay
Chief Executive Officer, Keyora Inc.,

Our clients often ask us whether they should integrate an e-commerce solution into their Microsoft Dynamics GP, AX, or CRM system. When we tell them it has become easier than ever, their next question is this: how much they should spend?

This last question requires a more involved answer. With all the many choices in the marketplace ranging from a few thousand dollars to a couple of million for a large enterprise solution, it is hard to know just how much you should be investing.


Think about it this way: if I charged you $500,000 for an integrated e-commerce solution that could generate $2,000,000 in additional gross margin each year and save you another $1,000,000 in operating costs, then would the $500,000 investment be A LOT? The answer, of course, is no. 

Positive Cash Flow: $2,000,000 + $1,000,000 - $500,000 = $2,500,000

The point is simple: you've got to figure out how much money an e-commerce solution will make you before you draw a conclusion of whether or not the cost is too much. So how do you do that? It's actually pretty easy.

Here is a simple process for determining the Return on Investment (or ROI) of an e-commerce storefront. First, you've got to know how much profit you make on each sale. For instance, if you buy whatever it is you sell for $50 and you sell it for $80, your gross profit is $30. That's easy enough. Now take that calculation up a level and do the same thing for all of your products together. Hint: start with the Income Statement.

<... class="become-member ms-auto me-auto">

FREE Membership Required to View Full Content:

Joining gives you free, unlimited access to news, analysis, white papers, case studies, product brochures, and more. You can also receive periodic email newsletters with the latest relevant articles and content updates.
Learn more about us here

About Jamie Lippay

Jamie Lippay is the Chief Executive Officer and co-Founder of Keyora Inc., makers of Webfoot® Integrated E-Commerce for Microsoft Dynamics AX and Dynamics GP. Prior to starting Keyora Inc, Jamie implemented Microsoft Dynamics GP for over ten years as a Solution Architect and Project Manager with a leading value-added reseller in Toronto, Canada. Jamie holds an M.B.A. from the Schulich School of Business in Toronto and is a Certified Management Accountant.

More about Jamie Lippay