Sustaining e-commerce sales growth isn’t cheap. Just ask Victor Castro, digital strategy and e-commerce director at fine wine and liquor retailer Zachys Wine and Liquor Inc. The 72-year-old family-owned company has grown its web sales by nearly 60% since 2013 when Castro started, and e-commerce now makes up about 25% of the retailer’s total sales, Castro says.

Zachys brought in Castro to keep online sales growing at a rapid clip, and to overhaul and improve the company’s web presence and infrastructure. This summer Castro is taking a big step in fulfilling his role by moving Zachys from an on-premise, homegrown e-commerce platform to a cloud-based version of Magento Inc.’s e-commerce platform. And he’s spending about $30,000 to make the move to Magento 1.0.

“Zachys’ technology investments have doubled every year since I started,” Castro says of the 120-person company.

Doubling technology spending might be on the high end of the retail technology spending pool, but research finds the majority of online merchants plan to increase their technology investments over the next year. In a recent Internet Retailer technology spending survey of around 80 online retailers conducted in early 2017, 85% of respondents planned to increase their technology spending over the coming year, 10% planned to maintain their current spending and just 5% of retailers expected to spend less on technology.

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