The digital revolution has completely changed how businesses operate, with e-commerce platforms at the forefront. As more customers buy online, choosing the appropriate e-commerce platform is important for companies of all sizes. The right platform can improve client satisfaction, simplify sales processes, and promote expansion for any company.
This blog will explore what is an e-commerce platform, the various types available, and key features to consider when choosing one. We will also review top e-commerce management platforms and highlight common mistakes to avoid.
Looking for eCommerce Software? Check out SoftwareSuggest’s list of the top eCommerce software for your business.
What Is An E-Commerce Platform?
An e-commerce platform is software that helps companies manage their online sales activities. It allows companies to create, run, and manage an online. It also helps with product management, transaction processing, and customer interaction using a range of marketing platforms.
The purpose of an e-commerce platform goes beyond being used as a shopping cart. From order and inventory management to customer relationship management (CRM), it includes multiple aspects of business management.
E-commerce platforms make things easier for customers and company owners alike. It comes with features for monitoring orders, maintaining product catalogs, collecting payments, and producing reports.
Now that you know the e-commerce platform definition, let’s move ahead with its types.
Almost 50% of customer journeys begin and conclude on retailer websites or mobile apps.
Types of E-commerce Platforms
It’s essential to understand the different types of e-commerce platforms available when selecting one. The right platform depends on your specific needs, budget, and business size.
1. Hosted Platforms
Hosted platforms are completely managed systems in which the platform provider handles hosting, security, upgrades, and maintenance. These platforms are ideal for companies without a specialized technical team, as they provide everything in one simple bundle.
With hosted platforms, you can focus on expanding your company instead of worrying about technical issues or server administration.
Example: A well-known hosted platform, Shopify offers a user-friendly interface, integrated payment processors, and a number of applications to improve operation.
Shopify takes care of everything, including software upgrades and hosting, so company owners can focus on growing their companies.
Over 4.4 million stores are powered by Shopify globally, showcasing its appeal to companies of all kinds.
2. Self-hosted Platforms
Businesses have more control over the running of their stores with self-hosted platforms. With self-hosted solutions, companies are responsible for software maintenance, server security, and platform setup. This option gives more flexibility and customization options, but it also demands more technical skill.
Example: One well-known self-hosted platform is WooCommerce, an open-source plugin for WordPress.
It is suitable for companies with technical resources or those wanting to customize every element of their shop, as it gives complete control over your e-commerce site, including design, security, and performance optimization.
WooCommerce drives over 30% of online stores, making it one of the most popular e-commerce platforms.
3. Open-source vs. SaaS-based Options
When comparing open-source vs. SaaS-based options, it’s important to understand the difference:
Open-source e-commerce platforms enable total customization by giving users full access to the underlying code. Businesses must, however, spend money on technical resources to create and manage the platform.
Shopify and BigCommerce are examples of subscription-based SaaS (Software as a Service) e-commerce platforms that offer fully managed solutions. These platforms are ideal for companies that need a quick and hassle-free solution because they are simpler to use and don’t require technical knowledge.
Example: WooCommerce is open-source, allowing companies to own their website but needing additional management resources. BigCommerce, on the other hand, is SaaS-based and offers continuous support, scalability, and secure hosting with little technical involvement.
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Key Features Of E-commerce Platforms
There are a number of significant features to consider when assessing an e-commerce platform that can promote business expansion, improve customer experience, and simplify operations.
1. Order and Shipping Management
Order and shipment administration are important for every online company to run well. A quality platform allows for effective order processing, inventory management, order status updates, and connectivity with outside shipping companies.
Example: Shopify’s advanced order management tools automate a range of tasks, including creating shipping labels directly through integrated partners like UPS and USPS, maintaining stock levels, and providing customers with tracking information.
Over 70% of global shoppers expect real-time order tracking, highlighting the need for efficient shipping management.
2. Multi-language and Currency Support
Support for several languages and currencies is crucial as companies increasingly want to attract clients from outside. By providing local languages and currencies, a platform with these characteristics enables you to serve clients in many geographical locations.
Example: BigCommerce is a great option for international e-commerce sites as it supports a wide range of languages and currencies. It allows the development of a customized purchasing experience for clients in various nations.
3. Analytics and Reporting
By analyzing important indicators like sales, conversion rates, customer behavior, and traffic sources, analytics and reporting tools assist organizations in keeping an eye on their performance. Making data-driven decisions to enhance business goals requires these insights.
Example: WooCommerce, through a smooth integration with Google Analytics, offers extensive data on sales, consumer behavior, and website performance.
4. Customer Support Integration
Maintaining client satisfaction and loyalty requires first-rate customer service. The customer experience may be greatly enhanced with a platform that includes customer support features like live chat, ticketing systems, and automated answers.
Example: Shopify and Zendesk combine to offer a comprehensive customer support solution that includes email assistance, live chat, and a knowledge base.
5. Third-Party App Integrations
The option to link with third-party apps is important for companies wishing to improve the functionality of their e-commerce sites. Connecting with other systems, such as marketing, accounting, or logistics, can simplify operations.
Example: BigCommerce simplifies business process automation by integrating with well-known applications such as Mailchimp for email marketing, QuickBooks for accounting, and Zapier for automation.
6. Omnichannel Support
Omnichannel integration is becoming essential as more companies sell through multiple channels. A platform with omnichannel features allows businesses to sell through social media, marketplaces, and online storefronts.
Example: Due to Shopify’s omnichannel support, retailers can sell goods not just on their website but also on Facebook, Instagram, and even in-person with Shopify POS.
You May Also Read: Dropshipping vs E-commerce
How to Choose the Right E-commerce Platform?
Selecting the best e-commerce platform requires carefully weighing a number of variables that complement your company’s objectives. Let’s take a look:
1. Business Size and Requirements
Choose an e-commerce platform based on your company’s needs and size. While larger organizations may require advanced skills like multi-currency support, customized processes, and integration with other business systems, small businesses might choose a simpler platform with limited customization options.
2. Budget And Pricing Plans
Evaluate the various platforms’ pricing and economic strategies. While self-hosted solutions may include extra expenses for hosting, security, and upkeep, hosted platforms frequently demand monthly fees. Make careful consideration of both one-time and continuing costs.
3. Scalability and Growth Potential
Choose a platform that will grow with your company. Your platform must be able to accommodate more orders and traffic as your client base and product catalog expand without experiencing any performance issues.
4. User-Friendliness and Customization Options
Selecting a platform that balances customization and ease of use is important. In addition to being user-friendly for non-technical users, a strong platform should provide enough versatility for companies that wish to customize the website to meet their unique requirements.
5. Integration and Compatibility With Tools
Make sure the platform works with the tools you now use, like email marketing platforms, CRM systems, and accounting software. Time will be saved, and operational effectiveness will increase.
Interesting Read: Benefits of a Fully Integrated Ecommerce Platform
3 Best E-commerce Platforms
This Shopify, WooCommerce, and BigCommerce analysis is based on available data and expert insights. We recommend evaluating each platform’s features and pricing based on your business needs to make the most informed decision.
| Feature | Shopify | WooCommerce | BigCommerce |
|---|---|---|---|
| Ease of Use | Very Easy | Moderate | Easy |
| Customization | Limited | Highly Customizable | Moderate |
| Pricing | ₹ 1499 - ₹ 175000/month | Free (Hosting and plugins required) | ₹ 4999 - ₹ 26000/month |
| Support | 24/7 Support | Community-based Support | 24/7 Support |
| Security | PCI DSS Compliant, SSL | Depends on hosting | PCI DSS Compliant, SSL |
| Best for | Ease of use, Quick Setup | Customization & Control | International Expansion |
| Scalability | High | High | High |
1. Shopify
Shopify
Shopify is among the most well-known hosted e-commerce sites. It has strong features, a user-friendly interface, and reliable customer service. Shopify is the best option for companies seeking a managed solution that takes care of software upgrades, security, and hosting.
Features
- Customizable branding
- Gift card management
- Inventory management
- Refund management
- SSL security
Pricing
- Basic: ₹ 1499/month
- Shopify: ₹ 5599/month
- Advanced: ₹ 22680/month
- Plus: ₹ 175000/month
- Free trial available
- Shopify is highly user-friendly, making tasks like checking orders, updating products, and setting up promotions simple.
- It offers excellent templates that are easy to customize, providing flexibility for small businesses.
- With almost unlimited plugin and integration options, Shopify stands out as a robust e-commerce platform.
- Limited accuracy in tracking the origin of sales, especially when using tools like Google Analytics and Ads.
- High upfront costs for beginners, including a monthly subscription fee, even before making any sales.
2. WooCommerce
WooCommerce
WooCommerce is an open-source platform for WordPress users. Given its excellent degree of customization, it’s ideal for companies that wish to have complete control over their stores. Although WooCommerce is free to use, companies must pay for additional plugins and hosting. It works well for businesses with technical know-how or those whose websites are already built using WordPress.
Features
- Inventory optimization
- Shipping management
- SEO management
- Order management
- Inventory optimization
Pricing
- Custom pricing
- WooCommerce provides an excellent e-commerce platform with a variety of features at no cost.
- It is simple and quick to set up, making it ideal for beginners.
- Saves significant development costs while offering a comprehensive shopping solution for WordPress.
- Limited documentation within WordPress may frustrate non-DIY users.
- Additional plugins can increase costs and complicate maintenance, especially in non-English setups.
3. BigCommerce
BigCommerce
BigCommerce is a software-as-a-service (SaaS) e-commerce platform built for companies seeking robust functionality and scalability. It is a great option for expanding companies since it allows multi-channel selling, worldwide sales, and comprehensive analytics. Many different types of businesses, from small startups to major big companies, use BigCommerce.
Features
- Content management
- Design management
- Newsletter management
- Order management
- Product Configurator
Pricing
- Standard: $39/month
- Plus: $105/month
- Pro: $399/month
- Enterprise: custom plan
- BigCommerce offers impressive customer service and creative problem-solving assistance.
- The platform is suitable for businesses ranging from simple to sophisticated e-commerce needs.
- Ideal for small businesses or those with limited budgets for starting their online store.
- Apps can conflict with other apps or the platform's native functionality, leading to technical issues.
- Limited server access restricts flexibility, occasionally requiring adjustments to plans.
Common Mistakes to Avoid with E-commerce Platforms
While choosing an e-commerce platform, avoid these common mistakes:
1. Overlooking Scalability
Many companies overlook scalability when choosing a platform. Selecting a platform that isn’t adaptable to your company’s demands might cause problems later. Always consider long-term growth.
2. Ignoring Mobile Optimization
Given the surge in mobile commerce, it is essential to ensure that your platform is mobile-optimized. A sizable percentage of potential clients will avoid platforms that do not provide mobile-responsive designs.
3. Choosing Price Over Features
Cost is important, but putting price over features might restrict the possibilities for growth of your company. As your company grows, a low-cost platform might not have the necessary features like scalability, multilingual support, or advanced analytics. By purchasing a platform that supports your long-term objectives, you can avoid future costly migrations and save time and money.
4. Not Prioritizing User Experience
The success of an online store is largely determined by the user experience (UX). Potential clients may be turned off by a complex navigation system, sites that load slowly, or a lack of search capabilities. To ensure a great buying experience, ensure that the platform you’ve selected has a simple, user-friendly layout and quick page loads.
By 2027, mobile commerce is projected to make up 62% of all digital sales worldwide.
The Future of E-commerce Platforms
E-commerce systems are expected to get increasingly more advanced as technology develops. The following new developments will influence digital commerce in the future:
1. AI-Powered Personalization
Platforms are gradually using artificial intelligence to provide dynamic pricing, customized marketing campaigns, and personalized product suggestions. 80% of consumers are more inclined to buy from a business that provides individualized experiences.
2. Voice Commerce
Voice shopping is expected to grow in popularity as smart speakers like Google Home and Amazon Echo become more widely available. Voice shopping accounts for $2 billion in consumer purchases.
Voice commerce features are starting to be included in e-commerce systems, enabling hands-free shopping.
3. Augmented Reality (AR)
By allowing customers to see things in their surroundings before making a purchase, AR is revolutionizing online commerce. For example, AR integrations for product previews are now supported by platforms like Shopify.
4. Blockchain for Payments and Security
With its decentralized, transparent, and safe payment options, blockchain technology is predicted to completely transform online transactions. This will simplify cross-border payments and increase consumer trust.
5. Sustainability & Green Commerce
E-commerce platforms are responding to consumers’ growing environmental consciousness by providing carbon footprint tracking, eco-friendly shipping choices, and support for sustainable products.
6. Headless Commerce
Headless commerce has grown more popular as a flexible e-commerce strategy that separates an e-commerce platform’s front end and back end. It allows companies to develop scalable and highly tailored omnichannel selling solutions.
Due to shifting consumer habits and technological breakthroughs, the global e-commerce revenue is projected to exceed $6.4 trillion by 2029.
“Choosing the right e-commerce platform is about empowering your business to scale, deliver exceptional customer experiences, and drive long-term growth in a dynamic digital landscape.”
-Achal Chhajed, Chief Revenue Officer
Conclusion
By understanding the e-commerce platform meaning, you must have realized that choosing the best e-commerce platform is a crucial decision for your business. You can improve customer satisfaction, optimize processes, and successfully grow your company with the right platform.
To guarantee long-term success, take into consideration factors like scalability, security, and integrations whether you choose a hosted solution like Shopify, a self-hosted platform like WooCommerce, or a SaaS-based choice like BigCommerce.
Priya is a seasoned writer with expertise in the SaaS industry. With over five years of experience in the field, she deeply understands the requirement of this specific industry, its techniques, and tools. Her articles, whitepapers, and blog posts are known for their clarity, practicality, and actionable insights. Priya also possesses in-depth knowledge of SEO and content marketing, which enables her to develop effective strategies to increase website traffic and improve brand visibility.
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