Starting an ecommerce business is exciting. You can choose your business name, create your logo and branding, and build your website.
And while it’s easy to consider your needs now, it’s also essential to think about where your business is heading and what other tools you’ll need.
It’s not enough today to choose the best online store builder. Savvy entrepreneurs look for the best ecommerce platform: an ecosystem of tools that seamlessly integrate, giving you complete control over every aspect of your business and the ability to scale as you grow.
Let’s look at the best ecommerce platforms and how to evaluate which is best for your business needs.
An ecommerce platform is a way to build and create an online experience that allows you to make sales and fulfill orders—no matter where your customers are or where they like to shop.
While most people think their e-commerce platform is just a tool that lets them list products and accept payments online, a true e-commerce platform is much more than that. Your e-commerce platform should be a complete business command center where you control everything from inventory to marketing. It should allow you to process payments but should also give you seamless access to all of the tools you need to sell online, including (but not limited to!) your online store.
To make your online store accessible to the public, you have to have a hosting solution. You are hosting stores your information on a server, allowing internet users to visit your site and view all the content. Every website is hosted somewhere, meaning it has dedicated server space from a provider. Some ecommerce platforms have hosting built in, while others require self-hosting or open-source hosting.
Some website builders offer a hosted platform. In this case, you don’t need to worry about the mess of self or third-party hosting and the additional fees attached. Shopify stores, for example, include website hosting in every plan. All Shopify updates are automatic and hassle-free, so your site will always be up to date. Building on a hosted ecommerce platform gives you more freedom to focus on running your business—not on putting out fires caused by downtime and the need to fix bugs.
Self-hosted or non-hosted e-commerce platforms require merchants to use their own server space or pay to rent space from a hosting provider. This complicates ongoing website management, as you’re responsible for updates, maintenance, and bug fixes. This requires a lot of internal resources that you could otherwise allocate elsewhere.
Self-hosted platforms are typically open source; you use a third party to host your website data. Third-party sourcing options charge fees for their services and these costs quickly add up. These hosting services often use tiered pricing structures, so those on the lowest plans don’t get much in the way of customer support. This can leave you hanging at critical times, like traffic boosts after unexpected press coverage.
There are four types of ecommerce: B2C (business-to-consumer), B2B (business-to-business), C2B (consumer-to-business), and C2C (consumer-to-consumer).
Ultimately, the type of e-commerce business you run will help you dictate the best e-commerce site for that business.
When you’re deep into e-commerce comparison shopping, it’s easy to forget why you’re picking an e-commerce platform at all. Do you need to find the best ecommerce platform? There is no best choice for everyone. Instead, look for the right e-commerce platform that allows you to serve your customers the best e-commerce experience that makes shopping online feel easy.
Beyond simply being the best online store builder, consider the other business tools those platforms offer. Using a seamlessly integrated ecosystem consisting of your online store, payment processor, POS, and even small business lender is often beneficial. Shopify, for example, has an entire suite of tools that help you manage every aspect of your business and an App Store with over 4,000 apps to help you customize the experience for your customers and your team.
Again, the best ecommerce platform comes down to your unique business model and growth plan. Here’s an overview of some of the best ecommerce platforms for 2021 to help you evaluate the best option for your business:
Shopify is arguably the best platform for ecommerce. Our robust platform comes with complementary tools and features for multi-channel selling so that you can sell directly through your website, at your retail store, on social media and third-party marketplaces, and everywhere in between.
Plus, Shopify handles all aspects of your business—you can use our best-in-class suite of business tools to build a complete business command center. Shop Pay handles payment processing, Shopify POS administers in-person sales, and Shopify Fulfillment can help you get products into customers’ hands. And those are just a few of the many powerful tools and apps that work together seamlessly as part of the Shopify ecosystem. You can also tap into our extensive library of third-party apps that can extend your experience with Shopify even further.
With these powerful features, you can set up your business with little technical know-how and budget and scale to an international online brand without changing platforms along the way.
Wix is a user-friendly drag-and-drop website builder that offers customizable templates, web hosting, and domain name registration. You can build an essential website for free, but you’ll have to upgrade to a paid plan to use Wix’s ecommerce features.
As far as ecommerce functionality goes, Wix has a few helpful tools. The platform allows merchants to track orders, accept online payments, sell on multiple channels, and create abandoned cart campaigns.
However, it needs certain features that are imperative for product-based businesses. Shortcomings include the absence of low stock alerts and other critical inventory management features. If you have more than ten or so products, you’ll want a platform with more robust inventory tracking tools. Plus, you need to use a third-party app for social commerce integrations.
BigCommerce is an ecommerce platform well-suited to enterprise-level software companies. Like Shopify and Wix, BigCommerce offers web hosting and customization options. However, you can’t register your domain name through BigCommerce, so you must purchase and register elsewhere and port it over.
Connect your BigCommerce store to HubSpot CRM and sync your BigCommerce data by HubSpot BigCommerce Integration to bring more exposure to your growth.
Valuable features include international selling, SEO tools, and multichannel selling on social and third-party marketplaces. However, with these powerful features also comes complexity.
Lack of flexibility and ease of use were significant factors in Grace & Lace’s decision to migrate from the platform. It moved over to Shopify Plus, Shopify’s enterprise solution, to take advantage of more than just the ecommerce platform—the brand quickly reaped the benefits of having an entire ecosystem of business tools from Shopify.
Magento is a non-hosted ecommerce platform for developers who want a powerful, flexible system they can customize. And while this offers many benefits for brands that want a wholly tailored platform, it also presents a lot of hurdles in the form of complexity and cost. You need advanced coding and development skills to build and manage the entire infrastructure.
Magento also needs more tools to create a seamless multichannel strategy. There’s no easy way to turn on social commerce or marketplace selling with Magento, and the same rings true for foreign currencies. So, if going global is in your plans, Magento may not be the best e-commerce platform for you.
Ecommerce site Character.com maintained its complex Magento site with thousands of products, tons of integrations, and solid SEO—despite its poor UX. Magento was limiting and too difficult, so it migrated to Shopify. Conversions increased by 40%, and its success soon pushed it to upgrade to Shopify Plus to take advantage of even more features.
WooCommerce is especially familiar to those who know WordPress—WooCommerce is essentially an add-on to the popular blogging platform. WordPress is traditionally for content-driven websites, not ecommerce, so WooCommerce is WordPress’s answer to those who want to sell online.
Because WordPress is a content management system (CMS) first and an ecommerce platform second, many of the selling features are simple or rely on adding apps. And while there are plenty of apps and plug-ins you can add to your store, the more you use, the more likely it is you’ll break something. And this isn’t always a risk worth taking, considering limited support options.
Learn more: Monetize your WordPress blog without migrating to an entirely new platform with the Shopify Buy Button. You can embed the button and start selling on your blog starting at only $9/month.
Overall, WooCommerce’s fragility and unreliability makes it difficult not only to build an online store but also to maintain it. Plus, it’s not hosted so you’ll have the added task and cost of managing your website hosting. It also lacks PCI compliance, which puts your business at risk when processing payments.
Prestashop is an affordable open source ecommerce platform that’s great for beginning businesses that have a somewhat technical background. There’s no built-in customer support and integrations can be hit or miss, so PrestaShop users do a lot of troubleshooting themselves with the help of the community.
Business tools and features include inventory tracking, online shopping cart, international selling, and analytics reporting. You also have lots of control over the privacy and security settings on your Prestashop site.
Overall, maintaining your ecommerce site with Prestashop can be cumbersome when it comes to third-party hosting, the multitude of unvetted add-ons and modules, and the cumbersome setup.
The next website builder with an ecommerce platform option is Squarespace. Like Wix, Squarespace uses drag-and-drop functionality which requires little technicality. Both platforms are primarily website builders, not online selling platforms, so they require a fair amount of tweaking to add ecommerce functionality.
Squarespace requires time and patience to set up if you want to sell online, not to mention there are only two payment integrations. If you have the budget, you may even outsource it. Once you’ve set up the ecommerce function, Squarespace has decent inventory tracking tools. Higher-tiered plans also come with the ability to sell gift cards or subscription-based products.
If you don’t want to deal with the hassle of the backend in Squarespace to turn your website into a full-blown online store, you can simply add the Shopify Buy Button. For just $9/month, you can add a small embeddable code to your Squarespace site and leverage Shopify’s advanced ecommerce tools to handle the rest. With them, you get to add unlimited products, use secure checkout with more than 100+ compatible payment gateways, track sales and growth trends, easily integrate orders and shipping, and get global tax and currency support.
Big Cartel is a fully hosted ecommerce platform and website builder that is specifically designed for makers, artists, and crafters—the types of businesses you’d expect to see on Etsy. Big Cartel has customizable templates, domain name registration, and marketing tools.
While you can change the look and feel of your site, Big Cartel limits merchants to five images for each product. Payment and integration options are also limited, so this platform makes it much harder to scale as a multichannel business.
Pricing is based on how many products you sell, so it can get pretty costly as your business and product collections grow.
If you’ve figured out how to start an online store and are ready to choose which ecommerce platform is best for you, there are a number of considerations. The best ecommerce platform for you might be different from the best platform for another merchant—you need to consider your unique business needs and goals.
Many merchants choose the easiest and most affordable online store builder, which often leads them to Shopify. But there’s more to the decision than day to day use and cost. You need to think about where your business is headed and anticipate your future needs—and find a platform that can anticipate those needs as well.
Now, it’s about finding the best platform for commerce—online and in-store and everything in between. This means you need a best-in-class online store and best-in-class suite of business management tools. Look for a platform that consistently invests in its technology and stays ahead of the curve when it comes to commerce. Your website builder can become so much more than just a platform where you do business—it can be a vehicle for growth.
When evaluating your choices, think through the following scenarios:
While budget shouldn’t be the only deciding factor, it’s certainly an important one. You can get started for as little as $100, but you’ll likely put more than that into your business before you start recuperating your investments, especially upfront. According to our research, most small business owners spend about $40,000 during their first year—and only 9% of that goes to online business needs. (Though Shopify merchants spent an average of $38,000, while non-Shopify merchants came in closer to $41,000.) And when you have a platform that supports your business needs, you can make the money back or offset it with your profit margins.
With so many other aspects of your business to fund, it’s important you find an ecommerce platform that won’t suck your budget dry but still has the features you need to operate your business and make a profit.
When evaluating costs, look at more than just the setup and monthly fees. You’ll also want to account for payment processing fees, costs for adding integrations, and potential fees for customer support (PrestaShop, for instance). Remember, if hosting isn’t included, you’ll need to figure that in as an added expense too.
Selling online takes many forms. You might sell tangible products or digital products, and other business models have emerged as well. If you dropship, for example, you’ll want an ecommerce platform that can easily connect in the backend to streamline operations.
A platform like Shopify has tons of apps you can add to your site to make selling easier for different business models. There are apps for print on demand and subscription businesses, for example, that make it easier to run on Shopify compared to other platforms.
Checkout is a core component of your ecommerce site. You need a protected and dependable way to accept payments, while ensuring the process is quick and painless for shoppers. Shop Pay, for instance, increases checkout speed by 4x. Shopify also offers simple integrations with over 100 payment gateways, so you can offer the most relevant options for your audience, no matter where they are in the world.
Plus, it’s extra important to instill trust at this stage, so you’ll want to accommodate familiar payment methods like mobile wallets and PayPal. These known platforms can make customers more comfortable providing payment information and make their checkout process easier at the same time.
While your business might have humble beginnings, you likely have a vision for where you want to take it in the future. These goals are important to think about even if you don’t plan to become a global brand.
You might also want to add physical retail to your business at some point. With a limiting ecommerce platform, POS integrations may be cumbersome. You risk having inaccurate inventory data due to disjointed online and in-person systems. With a platform like Shopify, everything is tracked and synced in a single place. So you’ll have accurate inventory and sales data at any time—and you can be up and running for in-person sales in a matter of minutes. And you can also add services like local delivery and take advantage of the Shopify Fulfillment Network.
Many businesses need additional funding down the line. In fact, as many as two-thirds of entrepreneurs pull from personal savings to fund their business in the early stages, as many as 23% borrow from friends and family, and 21% use personal loans, according to our analysis. But there are other business funding options that pose less risk to personal relationships. Look for ecommerce platforms that provide assistance to merchants, like Shopify Capital small business lending.
Each ecommerce platform is best-suited for different types of businesses:
Shopify is the best ecommerce platform for a small business. It’s easy and affordable to set up, and it can help you seamlessly manage everything from inventory to accounting and marketing.
Yes, Shopify is one of the best ecommerce platforms. Shopify is the best platform because:
