9 signs that online retailers are stuck in the technology trap

Gescher, November 27, 2023. Successful online retailers are usually not recognized for having the most beautiful shop frontend. E-commerce success is often decided in the backend. Regularly evaluating your tech stack is crucial to automating internal processes and quickly adapting to new trends. Shopmacher, the e-commerce agency based in Gescher, specializes in identifying weaknesses in system architectures and optimizing tech stacks based on specific needs. CEO André Roitzsch has summarized nine indicators that online retailers might be stuck in the technology trap.

1. Problematic load times cannot be significantly improved with standard tricks

Slow load times negatively affect user experience and can lead to lost sales. Causes may include outdated server infrastructure, poor scalability, unoptimized database queries, or excessive use of scripts and external resources. Complex system architectures, unclear dependencies, or the lack of a content delivery network further exacerbate the issue. To address slow load times, online retailers need to fix inefficiencies in their tech stack.

2. Updates are complicated and cause unexpected errors

In a complex tech stack, dependencies between components can lead to unexpected issues when updating one part of the system. Especially in monolithic systems, updating individual components may require extensive adjustments to the entire system. Missing or inadequate test environments make it difficult to thoroughly check for errors during updates, while poor documentation increases the risk of unexpected problems. To counter these challenges, retailers should aim for a modular tech stack, maintain clear documentation, implement effective testing processes, and ensure continuous training. A transparent update process will also boost system efficiency and resilience.

3. Time-consuming manual processes are required

A lack of integration between system components can result in data not transferring smoothly between systems, and routine tasks like importing product data are not automated. Outdated or incompatible software components, unclear data models, and missing interfaces or format standards can hinder seamless data integration. A well-thought-out and integrated tech stack minimizes manual processes by ensuring smooth data flow and automation.

4. New, potentially useful additions cannot be easily integrated

An inflexible IT architecture often hampers the integration of innovative tools and features, partly due to missing standardized interfaces or incompatibility with the current tech stack. An API-based architecture facilitates data exchange between systems and provides the technical foundation for online retailers to quickly adopt new developments and maintain their competitiveness.

5. Various standard components of a monolithic system are deactivated and replaced with external solutions

A reevaluation of system architecture is needed when standard components in a monolithic system are deactivated and replaced by external solutions. This can disrupt the seamless interaction of internal components, leading to compatibility issues and degrading overall performance and user experience. In such cases, a switch to modular, flexible structures with standardized interfaces is recommended, enabling more efficient communication between components and reducing reliance on external solutions.

6. Lack of scalability for future growth

An unscalable infrastructure can result in performance issues, such as slow load times and poor user experience, as traffic increases. Bottlenecks in data processing can arise when the tech stack is not designed to handle growing transaction volumes and user data. Additionally, security risks increase if the tech stack lacks adequate measures to protect against new threats associated with a growing online presence. Scalability issues can also lead to higher operational costs, as more resources are needed to keep up with increasing demand.

7. The software vendor announces the end of updates or stops providing patches and updates for existing security vulnerabilities

If a software vendor signals that their product will no longer be actively developed, online retailers must reconsider their tech stack. Failing to do so risks compromising the security and performance of their online shop, leading to outdated functionality and compatibility issues.

8. The software vendor is acquired by a larger company aiming to create a 360° solution

When a large vendor acquires various technologies to create a 360-degree software solution, it’s often held together by clever marketing. In practice, the promise of providing everything from a single source often proves unfeasible. Retailers who rely on such “integrated solutions” may face unexpected problems in daily operations. Larger vendors often need to adapt individual components to offer truly integrated solutions, which can result in losing the very assets that were key to the original purchase decision. In the worst case, the vendor’s integration plans may fail, and the solution is discarded, leaving customers uncertain about the future of their software. Retailers should minimize the risk of monopolization by keeping their tech stack flexible enough to integrate different solutions.

9. Experts for this stack are mostly 45+ years old

A dynamic tech stack requires a diverse team with a range of experiences and perspectives. Online retailers should strive to diversify their expert team, ensuring a balance of experience and fresh knowledge to maintain an agile, future-oriented tech stack. Additionally, if a system plays no role in the education of young professionals, it’s a sign that it will no longer be relevant in the future.

 “In many online shops, the system architecture becomes more unmanageable over the years,” explains Roitzsch. “Many online retailers only react when the problem can no longer be ignored. However, an efficient tech stack ultimately improves the profitability of a commerce platform.” Therefore, online retailers should critically review their system architecture regularly and modernize it if necessary. “This may initially cost more,” says Roitzsch, “but these investments usually pay off quickly.”

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