What are eCommerce platforms?

What are eCommerce Platforms?

An eCommerce platform is essentially the virtual engine that powers an online store. It’s a one-stop shop for managing all aspects of selling online, from displaying your products to processing payments and fulfilling orders.

“Broadly, eCommerce platforms can be classified into three types: SaaS (Software as a Service), open-source, and custom-built solutions. SaaS platforms like Shopify offer a subscription-based model with a ready-to-use framework, while open-source platforms like Magento provide more customization options but require technical know-how. Custom-built eCommerce platforms are tailored specifically to your business needs but can be costly and time-consuming to develop.” – said Ihor Prudyvus, Engineering Director at Artelogic, about what an e-commerce platform is and its types.

Here’s a breakdown of what an eCommerce platform does:

For the seller:

Website builder and storefront: Design your online store, customize layouts, and showcase your products with attractive visuals.
Product management: Add, edit, and organize your product catalog in your online store, including descriptions, pricing, inventory levels, and variations.
Order processing and fulfillment: Manage orders from purchase to delivery, tracking inventory and shipping arrangements.
Payment processing: Securely accept payments through various methods like credit cards, digital wallets, and bank transfers.
Marketing and analytics: Promote your store through various channels, track website traffic and customer behavior, and gain insights for growth.
Customer relationship management (CRM): Manage customer interactions, handle inquiries and support, and build relationships for repeat business.

For the customer:

Browse and search: Easily find the products they’re looking for using search bars, filters, and product category navigation.
Product information: Access detailed descriptions, specifications, reviews, and high-quality visuals to make informed purchase decisions.
Shopping cart and checkout: Add products to their cart, manage quantities, and securely complete their purchase with chosen payment methods.
Account management: Create an account to track orders, save shipping information, and manage preferences.

“eCommerce platforms are not just about selling products online; they’re about creating a seamless and efficient shopping experience for customers. They help businesses manage inventory, process orders, handle customer service, and analyze sales trends,” – said Volodymyr Khitsiak, Chief Marketing Officer at Artelogic, about what e-commerce platforms mean for business.

What Does E-commerce Platform Mean for Different Business Sizes?

We figured out what e-commerce platforms are. But what does an eCommerce platform mean for businesses of all sizes? Whether at the beginning of your online journey or looking to expand your existing presence, this comprehensive guide will provide you with the necessary information to make well-informed decisions about your e-commerce platform.

Small Businesses: Accessibility and Growth

For small businesses, an eCommerce platform often represents the first step in entering the digital marketplace. These businesses typically require platforms that are user-friendly, cost-effective, and provide essential features without overwhelming complexity.

Example: A local artisanal soap maker decides to expand their market by selling online. They choose a platform like Shopify or WooCommerce, known for their ease of use and affordable pricing. These platforms offer a simple way to list products, process payments, and handle basic inventory management without extensive technical expertise. The scalability of these platforms also means that as business grows, the platform can accommodate an increasing range of products and higher customer traffic.

Medium-Sized Businesses: Customization and Integration

Medium-sized businesses often seek eCommerce platforms that offer more customization and integration with tools like CRM systems, email marketing software, and advanced analytics. They need a balance between out-of-the-box functionality and customizable features to fit their specific business processes.

Example: Consider a medium-sized business specializing in fitness equipment. They might opt for a platform like Magento or BigCommerce, which offers a higher degree of customization and integration capabilities. The business uses the platform’s advanced features to integrate with its existing CRM and email marketing tools, allowing for personalized customer interactions and targeted marketing campaigns. The platform’s analytics capabilities help them understand customer behavior, leading to more informed business decisions.

Large Enterprises: Robustness and Scalability

Large enterprises require robust, highly scalable eCommerce platforms that can integrate complex supply chains and logistics. They also need platforms that can handle high traffic volumes, extensive product catalogs, and international sales, often with multilingual and multicurrency support.

Example: A global electronics retailer requires a platform to manage its vast product range and handle traffic from millions of users worldwide. An enterprise-level solution like Salesforce Commerce Cloud or Adobe Commerce (formerly Magento Commerce) fits their needs. These platforms allow this business to handle multiple storefronts across different countries, manage large-scale inventory, and integrate with enterprise resource planning (ERP) systems. They also offer advanced security features, essential for maintaining customer trust at such a large scale.

“The choice of an eCommerce platform is crucial in determining the business’s ability to operate efficiently online. Small businesses benefit from the accessibility and simplicity of user-friendly platforms, while medium-sized businesses enjoy the balance of customization and advanced features. Large enterprises rely on the robustness and scalability of comprehensive solutions to meet their complex needs.

As businesses grow, their platform choice may evolve, underscoring the importance of choosing a platform that not only meets current needs but also supports future growth and expansion,” – said Oleksandr Trofimov, Chief Technology Officer at Artelogic.

Factors to Consider When Choosing Your eCommerce Platform

Choosing the right eCommerce platform can be the difference between a thriving online business and a frustrating dead-end. Let’s delve deeper into the six key factors to consider, exploring them with questions, facts, and examples:

Ease of Use:

Studies show that complex platforms can increase abandoned carts by 25%. Shopify and Wix are known for their user-friendly interfaces, while Magento requires more technical knowledge.

A good platform should combine functionality and simplicity. It should be easy for both the customer and the business owner. For example, a dashboard that shows a summary of sales, orders, and customer actions can greatly improve productivity.

Questions to consider:

Can I easily add and manage products?
Can I customize the storefront without needing technical expertise?
Is the platform intuitive for customers to navigate and checkout?

Customization and Flexibility:

A study by BigCommerce found that 80% of online shoppers value a personalized shopping experience. Platforms like Shopify and BigCommerce offer a wide range of themes and plugins, while Magento allows extensive custom development.

Your business requires a platform that can adjust to its growth and transformation. This means it should provide various customization options, from design templates to functional plugins. For example, you’re a growing clothing brand. You might start with a basic Shopify theme, but as you expand, you might need a custom platform like Magento to handle complex product variations and marketing automation.

Questions to consider:

Can I change the look and feel of my store to match my brand?
Can I add features and functionality as my business grows?
Can I integrate it with my existing marketing tools?

Scalability:

According to Statista, global eCommerce sales are expected to reach $5.5 trillion by 2027. Moreover, by 2024, 21.2% of total retail sales will happen online. Imagine millions of visitors to your platform during Black Friday. No sweat. A scalable platform distributes the load seamlessly, ensuring your website remains nimble and responsive, welcoming every visitor with a warm embrace.

Platforms like Shopify Plus and BigCommerce Enterprise are built for high-volume stores, while smaller platforms might struggle with rapid growth.

Questions to consider:

Can the platform handle increased traffic during peak seasons or marketing campaigns?
Can it support my projected growth in sales and product volume?
What is an e-commerce platform for my business?

Security:

Data breaches can cost businesses millions of dollars and damage customer trust. Give your customers peace of mind and unlock their wallets. By prioritizing security with SSL certificates, data encryption, and PCI compliance, you create a safe haven for online transactions, attracting and retaining loyal customers. For example, BigCommerce and Magento offer robust security features, while some smaller platforms might not be as secure.

Questions to consider:

Does the platform comply with PCI DSS standards to protect customer data?
Does it offer fraud prevention tools and regular security updates?

Integration Capabilities:

Streamlining workflows through integrations can save businesses time and money. Integrating your CRM with your email marketing tools allows for automated personalized email campaigns based on customer data, boosting engagement and conversion rates. Similarly, synchronizing your accounting software with your inventory management system ensures real-time financial visibility and efficient stock control. For example, Shopify and BigCommerce offer many built-in integrations and APIs.

Questions to consider:

What are e-commerce platforms, and can I integrate one with my accounting software, email marketing tool, and CRM system?
Does it offer APIs for custom integrations?

Customer Support and Documentation:

Evaluate the level of customer support provided by the platform’s team. Find out if they offer 24/7 support, live chat, email, or phone support. Additionally, look for extensive documentation and self-help resources.

Questions to consider:

What kind of customer support options are available?
Is there an online knowledge base or community forum?

Remember, the perfect platform doesn’t exist. By considering these factors and asking the right questions, you can choose the platform that best suits your specific needs and sets your online business on the path to success.

What is the Best E-commerce Platforms: Features and Factors to Consider

When selecting an eCommerce platform, businesses must consider various factors such as ease of use, scalability, customization options, integration capabilities, and cost. Here, we analyze some top platforms, outlining their strengths and ideal use cases.

Shopify

Ideal for: Small to medium-sized businesses.

Key Features:

Pros:

User-friendly interface, ideal for beginners.
Extensive app store for adding features.
Robust customer support.
Integrated payment solution with Shopify Payments.

Easy to set up and manage.
Reliable and secure hosting.
Excellent for beginners with minimal technical skills.

Cons:

Additional transaction fees if not using Shopify Payments.
Limited customization capabilities without coding knowledge.

Pricing:

Plans start from $29/month for the Basic Shopify plan, $79/month for Shopify, and $299/month for Advanced Shopify.

Magento (Adobe Commerce)

Ideal for: Medium to large businesses and enterprises.

Key Features:

Highly customizable and flexible.
Strong community and extensive marketplace for extensions.
Scalable for large businesses and enterprises.
Supports B2B and B2C models.

Pros:

Extensive customization and scalability.
Large selection of extensions and themes.

Cons:

Requires significant development resources and expertise.
Higher total cost of ownership.

Pricing:

Adobe Commerce pricing is not publicly listed and varies based on customer requirements. It’s typically higher than other platforms and best suits businesses with larger budgets.

WooCommerce

Ideal for: Small to medium-sized businesses with WordPress websites.

Key Features:

Seamless integration with WordPress.
Extensive plugin options.
Open-source and highly customizable.
Large community support.

Pros:

Flexibility with WordPress.
Wide range of plugins and themes.
Control over data and privacy.

Cons:

Can become expensive with many extensions.
Requires WordPress, which might not suit all businesses.

Pricing:

WooCommerce is a free plugin, but costs will vary depending on web hosting, themes, and additional plugins. Hosting can start as low as $3-5/month with shared hosting providers.

BigCommerce

Ideal for: Medium to large businesses and enterprises.

Key Features:

Strong multi-channel selling capabilities.
Scalable for high-volume merchants.
Built-in features like SEO tools, reviews, and ratings.
Integration with various payment gateways.

Pros:

No transaction fees.
Strong focus on multi-channel retail.
Scalable and robust for large businesses.

Cons:

Can be complex for beginners.
Limited free themes are available.

Pricing:

Standard plans start at $29.95/month, Plus plans at $79.95/month, and Pro plans at $299.95/month. Enterprise pricing is custom.

Salesforce Commerce Cloud

Ideal for: Large enterprises looking for a comprehensive solution.

Key Features:

AI-powered personalization with Salesforce Einstein.
Robust cloud-based infrastructure.
Extensive B2B and B2C functionalities.
Global scalability and multi-language support.

Pros:

Comprehensive and powerful enterprise solution.
Advanced AI and analytics capabilities.

Cons:

High cost.
Complex setup and maintenance require skilled professionals.

Pricing:

Salesforce Commerce Cloud pricing is not publicly disclosed and is tailored to each business’s needs. It is generally at the higher end of the market.

Making the Decision: Choosing the Right eCommerce Platform

1. Business Needs and Objectives

Begin by defining what you want to achieve with your e-commerce store. Consider the type of products you will sell, your target market, expected traffic, and any specific features you need, like mobile compatibility, multilingual support, or advanced analytics. For example, a small boutique with a limited product range will have different requirements than a large retailer with thousands of products and a global customer base.

Questions to Consider:

What types of products or services will I be selling?
What is e commerce platform for your business?
Who is my target audience, and what are their shopping preferences?
Are there specific features I need, such as digital downloads, subscription services, or international shipping?
What are my goals regarding sales volume, market reach, and brand presence?

2. Features

Investigate the features offered by different platforms. Look for key functionalities like user-friendly design tools, payment gateway integrations, SEO capabilities, and customer service support. Platforms like Shopify and WooCommerce offer user-friendliness and simplicity, while Magento and Salesforce Commerce Cloud provide extensive customization options for more complex needs.

Questions to Consider:

Which platforms offer the features that align with my business needs?
How do these platforms handle SEO, mobile responsiveness, and social media integration?
Are there any unique selling points of these platforms that could benefit my business?

3. Technical Expertise and Resources

Evaluate your own or your team’s technical skills. If you lack technical expertise, platforms like Shopify or BigCommerce offer a more straightforward setup and management. Conversely, Magento and Salesforce Commerce Cloud might be more suitable if you have access to technical resources and require advanced customization.

Questions to Consider:

What is my level of technical expertise in managing an eCommerce platform?
Do I have access to technical support or resources, either in-house or outsourced?
How much time and effort will I invest in managing and customizing the platform?
What is an e-commerce platform for my business?

4. Scalability, Security, and Integration Capabilities

Think about your long-term goals. Will the platform grow with your business? Platforms like Magento and BigCommerce are known for their scalability. Also, consider security measures to protect customer data and integration capabilities with other systems (CRM, ERP, email marketing tools) that are critical for your business operations.

Questions to Consider:

How will my choice of platform accommodate business growth and increased traffic over time?
What security features do these platforms offer to protect my business and customer data?
Can the platform integrate seamlessly with other tools and systems I currently use or plan to use?

5. Total Costs, Including Development, Maintenance, and Transaction Fees

Analyze all potential costs. While WooCommerce might seem cost-effective initially, additional plugins and custom development can add up. Platforms like Shopify have straightforward pricing but charge transaction fees if you do not use their payment system. Enterprise solutions like Salesforce Commerce Cloud might involve higher upfront and ongoing costs but offer extensive features.

Questions to Consider:

What are the ecommerce platforms, and what are the initial setup costs, monthly or annual fees, and transaction fees for each platform?
Are there hidden costs, such as for additional plugins, themes, or custom development?
How do the long-term costs compare with the projected growth and revenue of my business?

6. Reviews, Case Studies, and Seek Advice from Existing Users

Research what others are saying about the platforms. Online forums, review sites, and case studies provide insights into user experiences and potential challenges. Networking with peers in your industry can also offer valuable first-hand advice and recommendations.

Questions to Consider:

What do current users say about the platform’s performance, reliability, and customer service?
Are there any recurring issues or limitations mentioned in reviews or case studies?
Can I connect with existing users in my industry to get firsthand insights and recommendations?

To Conclude

We found out what is an eCommerce platform and why should businesses use it. As you already know, choosing an eCommerce platform is a critical decision that can significantly impact the success and growth of your online business. Remember, the ideal platform doesn’t exist; the key is to identify your specific needs and match them with the features, strengths, and limitations of each platform. So, are you ready to launch your online store? Explore different eCommerce platforms today and discover the perfect match for your success!