Time to read: 8 minutes

The average ecommerce business uses 15-20 different software tools to run their operations. Yet in my experience working in e-commerce for 8 years, most companies waste 20-30% of their tech budget on underutilized, redundant, or simply wrong-fit solutions.

As your e-commerce business grows, your tech needs evolve—but many entrepreneurs fail to evolve their tech stack accordingly. The result? Thousands of dollars wasted monthly on tools that no longer serve their purpose.

Based on my experience optimizing tech stacks at my company, I’ve developed this comprehensive checklist to help you identify and eliminate wasteful spending while ensuring your technology actually supports your growth.

The Complete Tech Stack Audit Checklist

Step 1: Document Your Current Ecosystem

• List every tool and subscription your business pays for
• Note the monthly/annual cost for each
• Identify who in your organization uses each tool
• Document the primary purpose of each solution
• Record renewal dates and cancellation terms

Pro Tip: Create a shared spreadsheet with this information and assign one team member to keep it updated. Tools like Intello or Spendflo can help automate this process for larger organizations.

Step 2: Analyze Utilization and Effectiveness

• Calculate your “cost per order” for each tool (monthly subscription ÷ order volume)
• Review actual usage data (most SaaS tools provide this in admin dashboards)
• Survey team members on which features they actually use
• Identify any manual processes still existing alongside paid automation tools
• Calculate the time saved versus manual alternatives

Insight: From what I’ve observed in various e-commerce businesses, companies typically use less than 40% of the features they’re paying for in their most expensive tools.

Step 3: Identify Redundancies and Gaps

• Map feature overlaps between different tools
• Highlight capability gaps that are forcing manual workarounds
• Identify tools that were purchased for specific features but could be consolidated
• Look for “shadow IT” (tools individual team members have purchased without coordination)
• Compare your stack to industry benchmarks for businesses of similar size

Framework: Create a features matrix with your key business requirements as rows and your tools as columns. Circle places where multiple tools address the same need.

Step 4: Assess Scalability and Future-Fit

• Review pricing tiers and identify approaching breaking points
• Evaluate integration quality between critical systems
• Assess whether current tools can support 3X business growth
• Check for upcoming end-of-life or major version changes
• Evaluate vendor financial stability and market position

Warning Sign: If your business has grown but your tech stack hasn’t evolved in 18+ months, you’re likely either overpaying for enterprise features you don’t need or struggling with tools you’ve outgrown.

Step 5: Develop Your Optimization Strategy

• Identify immediate cancellation candidates (unused or heavily duplicated tools)
• List tools for potential consolidation or replacement
• Prioritize new solutions needed to fill critical gaps
• Create a 6-month transition roadmap
• Calculate projected savings and required investments

The 4-Tier Classification System

To streamline decision-making, classify each tool into one of four categories:

Core (Keep and Optimize)

Mission-critical systems that directly impact customer experience or operational efficiency. Focus on maximizing utilization and negotiating better terms.

Growth (Invest and Expand)

Tools that directly contribute to revenue growth or significant cost savings. Consider upgrading or expanding capabilities.

Questionable (Evaluate and Decide)

Tools with unclear ROI or significant overlap with other solutions. Set a 30-day evaluation period with specific metrics for keep/cut decisions.

Wasteful (Cut Immediately)

Tools with clear redundancy, low usage, or poor performance. Cancel as soon as contractually possible.

Actionable Tech Stack Optimization Hacks

1. Implement the “One In, One Out” RuleFor every new tool you add, challenge your team to eliminate an existing one. This prevents tech stack bloat and forces prioritization.
2. Conduct Quarterly “App-less” Days Once per quarter, have teams document workarounds when specific tools are made temporarily unavailable. This reveals which tools are truly essential versus merely convenient.
3. Negotiate Multi-Tool DiscountsMany vendors offer multiple products. Consolidating with fewer vendors can yield 20-30% discounts versus best-of-breed tools from different companies.
4. Calculate the “Full Burden Rate” For each tool, calculate: Subscription Cost + Implementation Time Cost + Training Cost + Maintenance Cost + Integration Cost. This true cost often reveals that “cheaper” solutions actually cost more.
5. Set Cost-Per-Order ThresholdsEstablish maximum cost-per-order thresholds for different tool categories. For example, no marketing tool should cost more than $0.50 per order.

Hypothetical Optimization Example

Let’s consider a typical scenario: An e-commerce business spending $9,000 monthly on their tech stack across 15 different tools. A proper audit might reveal opportunities to:

• Eliminate redundant tools, saving approximately $2,000 monthly
• Consolidate marketing tools into one platform, saving around $1,000 monthly
• Renegotiate core contracts, saving perhaps $1,500 monthly
• Add one new tool to fill a critical gap at $400 monthly

The net result could be $4,100 monthly savings (45% reduction) while actually improving operational efficiency.

The Tech Stack Golden Ratio

Based on industry observations, here are general guidelines for technology spending at different business stages:

• Early Stage (<$1M annual revenue): 10-12% of revenue on technology
• Growth Stage ($1-10M): 6-8% of revenue on technology
• Established ($10M+): 4-6% of revenue on technology

If you’re significantly above these ranges, immediate optimization is warranted.

Remember: The goal isn’t necessarily to spend less on technology, but to ensure every dollar spent generates a positive return. Sometimes investing more in the right tools while cutting wasteful spending is the optimal strategy.