Service Level Agreements

Service Level Agreement

What it is: A Service Level Agreement (SLA) is a formal agreement that defines the expected level of service between a merchant and their technology or service provider. In ecommerce, SLAs often cover uptime guarantees, response times for support, resolution timelines, and performance standards for hosting, platforms, or third-party vendors.

Why it matters for ecommerce merchants: Every second of downtime, delayed support ticket, or underperforming vendor can cost sales and hurt customer trust. SLAs provide accountability and clarity—setting expectations for both merchants and partners. With clear SLAs in place, merchants can operate with confidence that critical systems will be maintained and supported when it matters most.

Challenges:

• Defining measurable metrics—vague promises don’t protect merchants
• Balancing vendor limitations with merchant needs—finding realistic commitments
• Monitoring compliance—tracking whether vendors actually meet SLA terms
• Handling enforcement—knowing what recourse exists if standards aren’t met