E-commerce is not just a trend; it’s a booming industry with long-term staying power. Data from eMarketer revealed that 2022 online retail sales will exceed $5 trillion globally, making up over 20% of all retail transactions. By 2025, this figure is expected to grow to over $7 trillion.
If you’re a retailer contemplating the digital landscape, one of your critical decisions will be picking the right e-commerce platform. These digital platforms enable online businesses to control their website, sales, marketing, and day-to-day functions. Solutions like Shopify come packed with e-commerce functionalities and can integrate seamlessly with various business tools.
The implications of your choice are numerous:
- Make products easily accessible to consumers who engage with your brand.
- Giving your team the tools they need to execute marketing and sales campaigns.
- Having a positive impact on your revenue growth while considering the cost of operation and upkeep.
Let’s examine the factors you need to weigh and some top platforms to consider.
What Choices Do I Have in E-commerce Platforms?
Your critical choices in e-commerce platforms can be categorized into:
- Open-Source
- SaaS (Software-as-a-Service)
- Headless Commerce
About Open-Source Platforms: You can host these on a cloud or an on-premises environment, but you must manually implement any updates or patches. Open-source platforms can alter any part of the software’s code, appealing to tech-savvy companies wanting complete control. You’re responsible for security, hosting, compliance, and other issues. Cloud-based open-source solutions differ from on-premise versions only in hosting managed by a service provider.
Don’t underestimate the manual work and technical expertise required to manage an open-source platform, leading many businesses to prefer SaaS or Headless Commerce solutions. While initially appearing cost-effective, open-source can have hidden security, maintenance, and compliance costs.
Software-as-a-Service (SaaS) Platforms: Hosted in the cloud, SaaS e-commerce platforms are generally easier to use, more secure, and quicker to deploy. They manage all software-related tasks, from updates to hosting. They’re often championed by marketing teams who appreciate their speed and simplicity. However, they might be less flexible in customization. Some platforms, like WooCommerce, offer “Open SaaS,” combining SaaS ease with open-source flexibility.
Headless Commerce Platforms: Also hosted in the cloud, these platforms separate the shopping cart functionality from the content management system. You can pair them with a design experience platform like Adobe or a CMS like WordPress. They are often used for their low cost and flexibility.
The switch to SaaS and cloud-based solutions has disrupted the traditional model of IT departments controlling e-commerce operations. Headless Commerce allows for quicker launches and lower operating costs.
Companies like Burrow have built unique customer experiences using Headless Commerce. As co-founder Kabeer Chopra states, being headless enables them to modernize their platform creatively, offering a unique digital experience across different channels.
In summary, choosing the right e-commerce platform depends on cost, scalability, and your specific business needs. Whether you opt for an Open Source, SaaS, or Headless solution, ensure it aligns with your business goals and strategy.
Two Modes of E-commerce Hosting: Self-Managed and Cloud-Based
You can host an e-commerce website in one of two ways: self-managed hosting or a cloud-based solution. These are not platforms themselves but rather methods of hosting your site. A self-managed platform involves on-site hosting that you control and manage, whereas cloud-based hosting is typically managed by third-party services like Amazon Web Services (AWS).
Self-Managed E-commerce Solutions
In self-managed hosting, e-commerce business owners are responsible for finding their hosting provider and often have to install and update software manually. This arrangement demands ongoing maintenance by developers, which can be expensive and time-consuming. WooCommerce, a WordPress plugin, is an example of a self-managed e-commerce option. Its advantages include:
- Complete control over your e-commerce environment.
- Total visibility into your data.
- An enhanced grasp of data security.
However, it may result in increased expenses and potentially lower revenue.
Cloud-Based E-commerce Solutions
Cloud-based hosting offers server management through third-party providers like AWS, ensuring constant uptime. This model is generally less expensive since there is no need to purchase or maintain servers. You also benefit from the hosting service’s customer support. However, the downside includes recurring licensing fees and reduced control over server customization.
Top 5 E-commerce Platforms to Explore As you look for an e-commerce platform, weighing the pros and cons is essential since each has unique strengths and weaknesses. Here are five noteworthy platforms to consider:
BigCommerce
This open Software-as-a-Service (SaaS) platform caters to businesses of all sizes and is known for its wide-ranging tools in marketing and analytics. Its benefits include ease of use, 65+ payment gateways, an expansive list of 600 app integrations, and 24/7 professional support. Drawbacks include the costs of migrating to another platform and a limited, albeit growing, app store. Pricing tiers:
- Standard: $39/month
- Plus: $105/month
- Pro: $399/month
- Enterprise: Custom pricing
Adobe Commerce (Formerly Magento)
Adobe Commerce provides real-time inventory tracking, search engine optimization capabilities, and marketing automation tools. However, it’s complex to set up and has a history of security vulnerabilities. Pricing starts at $22,000 for on-premises and around $40,000 for cloud-based solutions.
Commerce tools
Originating from Germany, this SaaS-based, headless e-commerce platform operates globally and is constructed on MACH architecture. It allows customization and scalability but has a small partner ecosystem. Pricing is individually tailored.
Shopify
Shopify is a widely used SaaS platform that excels in PCI compliance, security, and uptime. It’s user-friendly and particularly well-suited for beginners, offering over 4,100 apps for additional features. However, it’s less suitable for large product catalogs.
Pricing options:
- Basic: $39/month
- Standard: $105/month
- Advanced: $399/month
- Shopify Plus starts at $2,000/month