What Is a Request for Proposal (RFP)? With an RFP Template for PXM Solutions [DOWNLOAD]

You need a new partner to build out your ecommerce tech stack, so you’ve researched vendors that might offer what you need. But research can only take you so far and speaking with vendors to find your perfect match can be a time-consuming, labor-intensive process.

Sending requests for proposals can streamline this process while also helping you choose the ideal partner.

But what is a request for proposal (RFP)? It’s a way of asking potential vendors to send you bids explaining why they’re a good fit for the job.

Here’s a breakdown of RFPs, including how they can help you find the right ecommerce solutions and tips for writing an effective RFP.

What Is a Request for Proposal (RFP)?

A request for proposal (RFP) is a document sent to vendors or contractors asking them to bid on a project that your company wants to complete.

An RFP’s purpose is to efficiently collect vendor information from each prospect. It also helps you compare all vendors according to the same criteria, which leads to more informed decision-making.

RFPs generally include some basic information about your company and the project at the beginning. Then, they outline what would be expected from a vendor and ask respondents to answer some questions about their capabilities.

While every RFP differs slightly, some essential components typically include:

• Introductory company info.
• Basic project info, including budget, target timeline, and goals.
•  A summary of the scope of work expected from the vendor.
•  Details on what you’re looking for in potential vendors and how you’ll evaluate their bids.
• Questions for bidders to answer.
• Logistical info about how vendors should submit their proposals and the name of their point of contact.

How Are RFPs Used in Ecommerce?

Brands looking to grow their ecommerce business need partners for most of the technical aspects of digital sales — from data storage to performance analytics. Many brands turn to product experience management (PXM) solutions for the right tools that will help them better engage their online shoppers. 

However, some PXM vendors have differing opinions on what features are most essential to an engaging consumer experience.

RFPs help ecommerce brands partner with ecommerce software vendors who can provide the capabilities they need as well as the price and level of support that works for them.

Send an RFP to all the vendors you’re interested in to ensure that you get the next-generation PXM capabilities you want, including:

• A single source of truth for all your data;
• Enhanced content support;
• Workflow automation;
• Analytics; and more.

Get detailed about your desired features and outcomes. Then, the onus will be on the potential vendors to prove that they can offer you each feature and help you reach your goals.

How Do You Write a ‘Good’ RFP?

Of course, distributing an RFP doesn’t automatically guarantee that you’ll get helpful replies. You need to do your own due diligence to make sure you write an RFP that’s effective.

It helps to look at a few RFP template examples so you can become familiar with how they’re typically written and what’s generally asked of vendors. You can also download a pre-made RFP template to save yourself some time and effort.

While you’re still in the planning stages, take the time to solidify exactly what you want from a vendor. Meet with business stakeholders, executive decision-makers, and procurement advisors to discuss your project goals and how you’ll evaluate vendors to make sure they can help you attain them. Ironing out these factors ahead of time will help you decide what needs to be included in your RFP.

While writing your RFP, try to be as specific as possible while still being brief. Use straightforward language, and ensure the document gets reviewed by other stakeholders to guarantee that it’s easily understandable and error-free.

Common RFP Mistakes To Avoid

When creating your RFP, watch out for common pitfalls that could damage the quality of responses you receive.

Here are some frequent request for proposal pitfalls.

Failing To Be Specific in the Scope of Work

If you leave any expectations or responsibilities out of the RFP’s scope of work, you risk partnering with someone unable to do everything you need them to do. 

Besides, a vendor generally creates their proposed timeline and budget based on what’s in the scope of work, so any scope changes, later on, could cause problems on those fronts.

Writing Unclear Evaluation Criteria

Vendors should know exactly how they’ll be evaluated so they can put their best foot forward. Clear evaluation criteria make it easier for your team to assess vendors, too.

Not Leaving Enough Time for Vendors To Complete a Bid

If the deadline for proposals is too soon, many vendors that would otherwise be a good fit may not have time to submit a bid.

Including an Inaccurate or Non-Specific Budget or Project Timeline

Many vendors will look at your proposed budget and timeline first to make sure they can meet them. If there are any discrepancies in these items, that could create problems for both you and potential vendors down the line.

Failing To Identify Existing Vendors, Technical Equipment, Etc.

While you don’t need to name everything in your tech stack, vendors need to know if there are any solutions in place that they would need to either work around or integrate with.

Issuing an RFP Without a Clearly Defined Strategy

If you don’t know exactly how the vendor’s solution will fit into your current strategy, you can’t know what questions to ask in your RFP. Before writing an RFP, have your goals, key performance indicators (KPIs), and long-term strategy clearly defined.

Many of these mistakes boil down to failing to be specific enough, while others are a result of insufficient planning at the beginning of the process. Prioritizing clarity and planning can help you avoid most of them.

Find the Partner Who Understands Your Business

When you’re searching for the optimal PXM solution or any other type of ecommerce software, distributing an RFP is one of the most efficient ways to vet your potential partners.

Creating an RFP requires a little planning upfront, but you’ll likely be rewarded for that work with a PXM partner or other ecommerce vendor who truly understands your business’s needs and knows they can meet them.