When choosing an e-commerce platform for your business, you’ll find a wide range of options with different features, pricing, and capabilities. The right platform can simplify how you manage sales, inventory, marketing, and customer service, both now and as your business grows.
This guide explains how e-commerce platforms work, which features and costs to compare, and how to select the best fit for your business.
What is an e-commerce platform?
E-commerce software refers to the application businesses use to showcase and sell products or digital assets to consumers or companies online. The platforms have product pages and a shopping cart. Many include built-in payment processing, whereas others let you integrate a third-party solution.
Aside from physical products, some e-commerce platforms provide space to promote virtual assets, like subscriptions and digital downloads. For example, some allow small businesses to accept deposits for reservations or bookings, while others support membership business models.
The main types include:
- Stand-alone e-commerce platforms. These systems are custom-built for e-commerce. Typically, they are highly scalable for growing a high-volume online business with advanced features for shipping, abandoned cart recovery, and international sales. Vendors include Shopify and BigCommerce.
- Website builders with e-commerce functionality. No-code website builders are beginner-friendly e-commerce sites that often cost less than stand-alone e-commerce platforms. These are a good option for startups and small businesses. Squarespace, Wix, and Weebly are popular e-commerce website builders.
- Payment processors offering e-commerce sites. Several credit card processing companies provide online stores for clients. These are less ideal, because they’re tied to the merchant account provider, but they can be a decent option for brick-and-mortar stores without an online presence. Helcim has an e-commerce checkout solution.
- E-commerce plugins for content management systems (CMSs). E-commerce plugins tie into an existing site, such as a WordPress or Drupal website. Companies that want to turn their website into an e-commerce store can add a plugin to start accepting payments online. Options include WooCommerce and WP EasyCart.
Businesses launching their first online store can follow our guide to building an e-commerce website from scratch.
[Read more: How Whatnot's Live Shopping Platform Boosts Small Business Sales]
What does it cost to run an online store?
Online store costs vary by platform, sales volume, and required features. Hosted e-commerce plans can range from less than $30 to a few hundred dollars per month, with costs generally increasing with more advanced capabilities.
When budgeting, consider:
- Platform subscription: Monthly or annual fees may include hosting, security, and core selling tools.
- Payment processing: Payment gateways generally charge 2% to 3% of each sale, plus a fixed fee.
- Transaction fees: Some platforms charge an additional percentage when businesses use a third-party payment processor.
- Apps and add-ons: Optional tools for marketing, reviews, accounting, and shipping can significantly increase monthly costs.
How do I process payments through an e-commerce platform?
Most e-commerce platforms offer integrated payment processing. This means that when you set up the site, the credit card processing feature is already installed.
When a customer places an order, the payment gateway encrypts their payment details, and the processor requests authorization from the customer’s bank. Once approved, the funds are transferred to the business’s account, minus applicable fees. Authorization typically takes seconds, while final payouts may take 24 to 72 hours.
Built-in payment processors are integrated directly into the e-commerce platform, simplifying setup and store management. Third-party processors may offer greater flexibility, but they must be compatible with your chosen e-commerce platform. Compare percentage-based and fixed fees, additional platform transaction fees, supported payment methods, and payout schedules before choosing a processor.
[Read more: E-Commerce Credit Card Processing: An Ultimate Guide to Accepting Payments]
What features should an e-commerce platform have?
Many e-commerce platforms include the following types of features to support your store’s customer service and sales growth:
- Inventory and order management. Track stock levels, receive low-stock alerts, and manage product variations.
- Shipping and fulfillment. Calculate rates, print labels, provide tracking, and support multiple delivery options.
- Flexible payments. Accept credit cards, digital wallets, buy now, pay later services, and other payment methods.
- Analytics and integrations. Monitor sales and customer behavior while connecting accounting, CRM, and other software.
- Omnichannel selling: Synchronize products and inventory across websites, marketplaces, social media, and physical stores. Businesses expanding to Amazon can follow this step-by-step guide to building an Amazon store.
- Marketing and AI tools. Create promotions, recover abandoned carts, personalize recommendations, generate content, and automate customer support.
When evaluating features, consider what will improve shoppers’ experience. For instance, AI-powered chatbots can assist customers who hover over sizing information for an extended time. Automated marketing software can send a discount code to encourage shoppers to purchase items left in their cart.
Most e-commerce platforms offer integrated payment processing. This means that when you set up the site, the credit card processing feature is already installed.
How to choose the best e-commerce platform
Choosing the right e-commerce platform requires balancing your current priorities with your long-term plans. Use the following process to compare options, identify trade-offs, and create a manageable shortlist.
Identify your business needs
Define what you sell, how many products or services you offer, where customers shop, and how your team fulfills orders. Consider whether you plan to accept bulk orders or sell wholesale, which may require minimum-order quantities, volume discounts, or tiered pricing.
Establish your budget and compare pricing
Set a realistic budget, then calculate each platform’s total cost rather than comparing advertised subscription prices alone. Include payment processing and transaction fees, hosting, themes, apps, maintenance, and development support. Estimate costs at both your current sales volume and projected volume to see how expenses may change.
Consider integrations and scalability
Document the accounting, inventory, marketing, shipping, and customer management tools your business already uses. Ideally, your chosen platform should connect with existing systems without costly custom work. Also consider whether it can accommodate larger catalogs, increased order volume, and new sales channels — or support future efforts to expand and diversify your business.
Demo platforms before buying
Narrow your list to two or three options, and use free trials or demos when possible to test them. During your trial, build sample product pages, complete purchases on desktop and mobile devices, process a refund, and review the administrative dashboard.
Top e-commerce platforms for small businesses
The right e-commerce platform for your business depends on your goals, size, industry, and market. Below are some of the top options for a range of small business needs.
- Shopify: Millions of merchants use Shopify to sell and ship products, process payments, and market to customers. It offers free and paid store themes, 24/7 support, and a built-in point-of-sale system.
- BigCommerce: With unlimited API (application programming interface) calls and headless capabilities, BigCommerce provides enterprise services for high-volume sellers. It has a full-featured online store with a fully customizable checkout.
- WooCommerce: Over 3.9 million online stores were built using WooCommerce because it’s a flexible option for extending your existing site or launching a new one. It supports many payment options, including Apple Pay, and it offers automated tax calculations.
- Salesforce Commerce Cloud: With a 99.99% historical uptime, Salesforce Commerce Cloud is a reliable and versatile digital storefront. It supports business-to-consumer (B2C), business-to-business (B2B), and direct-to-consumer (D2C) commerce.
- Wix: With over 900 free templates, Wix provides beginner-friendly tools for dropshippers, retailers, and service professionals. Subscriptions include 24/7 customer support and 2GB to unlimited storage space.
- Squarespace: AI-powered tools and order, inventory, and product management features make Squarespace a popular no-code e-commerce platform. Businesses can sell unlimited products, offer courses, or create custom merchandise.
[Read more: How to Choose E-commerce Shipping Software]
How to migrate to a new e-commerce platform
Migrating to a new e-commerce platform starts with auditing your existing store and backing up your products, content, customer records, order histories, integrations, and URLs. Clean up outdated or duplicate data before transferring it, carefully map fields to the new platform, and verify the migration for accuracy. Reconnect essential tools such as payment gateways, shipping providers, accounting software, and CRM systems, and rebuild any necessary workflows or functionality.
Before launch, test the new store thoroughly, including navigation, customer accounts, checkout, payments, shipping, emails, and mobile performance. Protect your search visibility by implementing 301 redirects for old URLs, preserving metadata, and submitting an updated sitemap. After launch, monitor traffic, rankings, errors, conversions, site performance, and customer feedback so you can quickly identify and resolve issues.
Jamie Johnson and Jessica Elliott contributed to this article.
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