Support for Setting Up Online Stores [E-commerce Platforms]

E-commerce platforms

Choosing the best e-commerce software is not as easy as it seems. In fact, it is one of the most important decisions you will make very early in your e-commerce journey. To help you decide how to choose the best e-commerce platform, we have put together this guide, which explains in detail all the factors and considerations you need to keep in mind.

Why does choosing an e-commerce platform matter for your business?
Building an e-commerce business is more than just putting your product listings online, and it is far more complex than you might imagine. Just like running a physical retail business or a production facility, the same level of strategic thinking and planning goes into building and running your e-commerce business. If you get this fundamental point right, you can take advantage of the digital environment, where you can automate and simplify many tasks and activities that used to require human intervention.
But when it comes to choosing an e-commerce platform, you have to remember that your e-commerce site will determine 4 things:
Growth: How fast will your business grow?
Operating costs: These include the cost of setting up the e-commerce platform, along with development and ongoing maintenance costs.
Customer engagement: How you control the way your customers interact with your business.
Goals: The right e-commerce platform will enable you to deliver the service you have set out to achieve.

It is important for us to point out that many e-commerce platform providers tend to focus on deep issues such as design, branding, user experience, and content. But the real e-commerce problems lie in the business process and in engaging and generating leads.
All of these processes can help you determine whether you are achieving a healthy return on investment on your e-commerce system.

Why use an e-commerce platform?

Simply put, if you do not have an e-commerce platform, it is impossible for you to compete online.

An e-commerce platform is the backbone of any online retail or services business, whether the business model is B2B, B2C, C2C, or any other business model, and the right e-commerce platform can help simplify how your business interacts with your customers and employees.

E-commerce platforms are essentially software applications that enable companies to carry out complex functions on both the front end and the back end, including CRM (Customer Relationship Management), inventory management, mobile commerce, web design, and warehouse fulfillment.

Before we even had specialized e-commerce solutions, companies had to build their own platform in-house through their IT and development teams, and this was an arduous and costly undertaking.

These self-built solutions were stressful and expensive to develop, difficult to work with, and unable to integrate with the other software solutions the company used.

Today, the build-your-own approach is used by a small minority of companies, but we now have a range of specialized solutions, including “free” open-source platforms that you can pay someone to build to your requirements, proprietary software that can also be customized with a team of developers, existing platforms such as Amazon and Noon where you sign up to sell your products, or ready-made platforms hosted in the cloud, such as Salla, ShopGo, or Zid.

We will explore each of these types of e-commerce platforms later in this guide.

What is the best e-commerce platform?

Choosing an e-commerce platform based on its popularity is not the best way. The best e-commerce platform is the one that successfully delivers the results and goals you have set for your business.
These goals can be simple things such as increasing revenue, improving customer engagement, or entering or creating a new market. Or they can be complex, where you have many stakeholders involved with conflicting goals.

This is where strong leadership is needed to get everyone on the same page; without it, the e-commerce project will struggle to be completed and to grow.

Also, the right e-commerce platform must fit the current technical expertise of your team.

For example, if you choose an e-commerce platform that is very popular but has a high barrier to entry, it will not work well with a team that has little technical experience. In that case, you will have to put together a technical team to help you achieve your end goal.

Another factor that can determine your choice is your company’s competitive landscape. If you compete in a fast-paced field where you are bound to face a great deal of technological disruption, you will need a platform that can move and adapt as fast as your business.

What are the different types of e-commerce platforms?

When it comes to choosing an e-commerce platform, you have 5 different types to choose from, as shown below.

Build your own e-commerce platform
Traditional e-commerce platform
Open-source e-commerce platform
Cloud e-commerce platform
SaaS e-commerce platform

Building your own platform

While this is more of an approach than a type of e-commerce platform, it requires you to hire someone in-house or externally to develop it. As we mentioned earlier, this is less common nowadays, but if your business is highly specialized and has a specific set of needs and requirements that no commercial e-commerce platform can meet, this may be your only option.

Traditional platforms

With this type of platform, you buy a license fee upfront, which you renew annually, and your IT and developer teams then build and customize the platform and install it either on premises or in the cloud. Examples of traditional platforms include Kentico, Hybris, Oracle Commerce, and IBM Digital Commerce.

Open-source platforms

Similar to traditional platforms, in that they follow the same development procedures, the main difference is that you do not bear an upfront cost to purchase a license. However, you have to pay for the initial development and implementation as well as ongoing development and upgrades. E-commerce platforms such as Magento and WooCommerce are examples of open-source e-commerce platforms.

Cloud platforms

Cloud platforms are a little ambiguous. Some traditional and open-source platforms have been installed on a hosting system and now call themselves cloud platforms. Examples include Magento Enterprise Cloud, Demandware, Salesforce Commerce, and Volusion.

SaaS platforms

These are software as a service (SaaS) platforms. E-commerce platforms delivered as SaaS are generally built on a single database. Everyone who uses a SaaS e-commerce platform enjoys the same technology for a fixed monthly fee that covers server usage, maintenance, security, and upgrades.

Why cloud-hosted and SaaS e-commerce platforms are not the same

Many people often assume that a cloud-hosted platform is a SaaS product. This is not true.

Many cloud-hosted platforms are simply legacy platforms hosted on a cloud platform that still require you to carry out maintenance and install upgrades, much like traditional and open-source platforms.

Also, when you use a cloud-hosted e-commerce platform, you still need to carry out the initial development and customization as you would with traditional and open-source platforms, so you need to turn to a technical assistant to do this work. But once that is complete, the platform is largely yours.

With SaaS platforms, you do not need to maintain a hosting provider based on a physical server.

You only pay a monthly subscription to access the developed software application through your browser.

Unlike cloud-hosted solutions, you do not need to worry about maintaining the software, because the SaaS provider maintains it for you. Examples include Salla, ExpandCart, ShopGo, Zid, Ecomz, Matajer, Matjary, Shopify, BigCommerce, and others.

What are the costs of setting up, maintaining, and updating your e-commerce platform?

When deciding on an e-commerce platform, many people tend to underestimate the actual costs of running an e-commerce site. While the initial setup and development costs are obvious, there are other costs you must keep in mind:

Maintenance costs

If you decide to go with a traditional or open-source platform, it will be your responsibility to take care of maintenance so that your e-commerce site runs as required.

Depending on the size and complexity of your e-commerce site, these maintenance costs can vary, and they will require you to bring in technical help.

Upgrade costs

Open-source platforms in particular require you to download and install updates whenever they are released.

If you do not install these updates in time, your platform is exposed to the risk of hackers and cyberattacks.

Installing these updates requires a certain level of technical knowledge, so once again you will need to bring in outside help.

Costs of adding new features and improvements

Consumer behavior changes over time, which is why you need to make sure your e-commerce site stays relevant by implementing improvements and adding features whenever necessary.

Costs of user experience (UX) changes

Besides adding features and improvements, you may have to change the overall user experience of your e-commerce platform.

Again, this comes down to changes in consumer trends and behavior. If your current e-commerce platform becomes too stagnant, you may have to replatform to another system that allows you to make UX changes, and this can be costly.

What factors should you consider when choosing an e-commerce solution?

Besides looking at development and operation, there are other factors you need to take into account when choosing your e-commerce platform.

The platform provider’s experience

Check whether the platform provider actually has the specific experience and technical skill to meet the needs and complexities of your requirements.

Also, check whether they have knowledge and experience in your line of business.

Take the time to look into case studies, customer reviews, and forums to find out whether the platform provider is well equipped to handle more than just development.

When things go wrong, and they can go wrong, will the vendor provide you with the support you need to help you resolve the problem? Always look for vendors that offer 24-hour emergency support and can be reached through various channels, including email, online chat, and phone.

Scalability

As your business grows, will your e-commerce platform grow with you? Your e-commerce platform is the central hub of your business.

A platform that is hard to scale can hold back the growth of your business.

Search engine optimization (SEO) compatibility

E-commerce platforms that come with comprehensive SEO features will enable your e-commerce site to rank high in search engine results.

Important factors to consider when looking for an SEO-friendly e-commerce platform include:

- Adding a blog to your e-commerce platform
- Using your own domain name
- Allowing customers to leave reviews

Mobile friendliness

A mobile-friendly platform is a must.

A report by BigCommerce predicts that mobile commerce in Germany, the United States, and the United Kingdom will account for one third of total retail e-commerce sales.

Perhaps the most important thing to consider is security. Since e-commerce is a digital platform that carries out financial payments, you want to make sure your e-commerce provider has the necessary security protocols in place.

Keep the customer experience in mind when choosing an e-commerce platform

The way you deliver the customer experience will affect the success of your e-commerce initiative.

One of the decisive factors that determine the customer experience is the user experience (UX) of the e-commerce platform.

An easy-to-use, intuitive platform can improve user satisfaction and help your team achieve their goals.

This is why it is essential to find out whether your platform’s user experience reflects the needs of your company.

But besides ease of use, the customer experience nowadays also depends heavily on the platform’s flexibility and adaptability.

As we are deep into the age of the Internet of Things, we have seen a great deal of technological disruption, such as voice assistant devices, smart refrigerators, and wearables.

E-commerce platforms must adapt easily to these changes and innovations, but you have to do so without causing disruption to your team.

In addition, personalization is now a key element of the customer experience, meaning that e-commerce platforms must be able to integrate with artificial intelligence and machine learning tools so they can understand the consumer patterns of individual customers and use this data to deliver a personalized service.

12 must-have features when choosing an e-commerce platform

Every e-commerce platform has its own set of unique features and functions.

But for your business, you need to make sure your e-commerce platform has the following features:

Robust catalog
Flexible pricing
Site personalization
Flexible shipping
E-commerce analytics
Google Merchant integration
Facebook integration
Customer review system
Tax calculation and automatic calculation
Multiple payment gateways
Headless commerce

Robust catalog

The product catalog is the heart of your inventory. Check whether the catalog is easy to update and intuitive. But more importantly, check whether the product catalog meets the requirements of your sector. For example, if you work in the fashion or apparel sector, your product catalog should come with a feature that allows your customer to select the size or color of the product. Further examples include product bundles and cross-linking between product pages.

Flexible pricing

You will want to run promotions, sales, or discounts easily, but that is not all. Multi-currency support is another consideration, while you may also want to charge different rates for different geographical locations.

Website personalization

Online shoppers now want a personalized experience. Look for e-commerce platforms that come with a recommendation engine that sends customers personalized suggested items to buy based on their previous purchases and the product they were looking for.

Flexible shipping

Shipping demands have changed dramatically in recent years. Customers want items delivered on the day of purchase or the next day. Make sure the platform is well supported by a decent distribution and logistics company.

E-commerce analytics

There is a range of vital e-commerce metrics and key performance indicators you need to monitor, and a built-in analytics system is the ideal way to do so. Fortunately, most e-commerce platforms have their own analytics platforms.

For those that do not, or if you want access to more in-depth analytics, you need to be able to sync or merge data from the e-commerce platform with another analytics platform.

Google Merchant integration

Google Merchant allows companies to upload and maintain product information so it can be displayed in relevant Google Shopping results.

It helps increase traffic to your product listing page, and having this feature is extremely useful for reaching customers beyond the boundaries of your website.
Facebook

Integration with your Facebook business account lets you sync your products with Facebook, Instagram, and Facebook Messenger. After creating a catalog, you can use it for various business cases, such as showing products in a collection ad or tagging products on Instagram.

Customer review system

Built-in customer review systems, or third-party integrations that allow customer ratings and reviews, can significantly affect the conversion rate. In fact, one study revealed that positive reviews increase trust for 72 percent of consumers, while millennials in particular trust user-generated content 50 percent more than any other media.

Tax calculation and automatic calculation

If you are a global e-commerce company, you need to comply with the tax laws of different countries along with their currency requirements. Failure to comply with tax laws can lead to legal action against the company.

Multiple payment gateways

Having multiple payment options, including PayPal, credit cards, and debit cards, has proven to increase the conversion rate.

In addition, if you plan to grow your e-commerce store internationally, you will need to use local payment gateways to gain the trust of local markets and tailor the experience to them.

Single customer view
This feature lets you track your customers and their interactions across every channel, and it also lets you know what they are buying.

Headless commerce

Commerce sales from voice assistant devices and smart wearables are expected to rise.

You need a platform that enables you to deliver e-commerce activities to different touchpoints, and you can only do this through headless commerce.

Common mistakes to avoid when choosing an e-commerce platform

Here are the most common mistakes companies make when choosing an e-commerce platform:

Investing in a rigid monolithic platform
Choosing a platform that is hard to scale
Too many features
Having no goals
Customizing the wrong way

Investing in a rigid platform

An e-commerce platform built on a rigid monolithic infrastructure leads to slow performance. In addition, if you want to update a small component of your platform, you will have to take the entire system down, which can lead to long periods of downtime.

Instead, you should choose an e-commerce platform built on a microservices architecture, which is easy to update, upgrade, and manage, since all the individual components run independently and communicate with one another through API communication. This results in a more efficient experience for both your team and your customers.

Choosing a platform that is hard to scale

A platform that is hard to scale harms the growth of your business. The main reasons some platforms lack scalability are that they do not support multi-tenancy or multiple sites and that they rely on local servers or weak infrastructure.

Too many features

This also relates to scalability, where you invest in a platform with more features than you actually need. Not only do you get poor value for your money, but you also pay for features you do not use.

Choose a platform that meets the minimum “must-have” requirements but allows you to add new features and capabilities as your business grows. This helps keep your spending in line with the growth of your business.

Having no goals

Very early in this guide, we mentioned how important it is to set your goals before you go and choose e-commerce software. If you do not have predefined goals at the start of the e-commerce selection process, you will end up wasting a great deal of time, and you may end up choosing the wrong e-commerce system.

Here are some examples of worthwhile goals when launching an e-commerce store:

To launch your e-commerce store within 3 months
To prove product-market fit
To collect the contact information of 1,000 customers in the target market
To achieve at least 10,000 sales in the first quarter

Customizing the wrong way

Many brands choose a rigid platform and then try to tailor their internal systems and requirements to fit the platform. But if you know what your requirements and goals are, you should be able to choose a platform that suits your brand most of the time, and one flexible enough to be customized for everything else.

Here are some questions you should ask your e-commerce vendor

Questions about pricing

What are your monthly fees?

Are the fees fixed, or do they vary based on traffic or sales?

Do you take a percentage of our revenue?

Can we easily upgrade or downgrade our plan?

What is the contract term?

Questions about integration

Can we use APIs to build custom integrations?

Questions about SEO

Do you support Google sitemaps for the website?

Do you support search-engine-friendly URLs?

Do you support URL rewriting that gives full control over URLs?

Do you support metadata for products, categories, and content pages?

Can your platform automatically generate sitemaps for display on the site?

Questions about mobile

Does your platform support mobile-responsive templates or themes?

Do you have Google AMP support, or can we achieve AMP compatibility with your platform?

Does the site support Progressive Web Applications?

Is your checkout easy to use on a mobile phone?

Questions about technical support

Can you provide a history of your security track record?

What protocols do you follow in the event of a breach or attack?

What technology do you use to reduce the risk of cyberattacks?

Questions about scaling

Do you have multi-site support?

Do you take advantage of cloud computing?

Questions about the product catalog

Is there a limit to the number of products we can list?

Can we offer multiple options for products (such as T-shirts in different colors)?

Can we create different price points for different customer groups, such as wholesalers and retailers?

Questions about marketing

Can we display related products for upselling and cross-selling?

How do coupon codes work? Can we apply dynamic pricing and coupon rules to restrict coupons to specific stores, customer groups, time periods, products, and categories?

Can we offer tiered pricing?

Questions about shipping

Can we offer multiple shipping options?

Can your platform integrate with our shipping software?

Can we offer a bundle as a shipping option?

Questions about accounting and tax

Can your platform automatically generate tax to be applied to every sale based on location?

Does your platform generate revenue and profit-and-loss statements?

Does your platform store sales information so our accounting team can access it easily?

Questions about site management

Can we control multiple sites and stores from a single admin panel?

Can we define user permissions and roles?

Can we fully customize the templates, or are there restrictions?

Questions about the checkout page

Can we offer one-page checkout?

Can we offer a guest checkout option?

Can we offer the option to create an account at the start of checkout?

Questions about order management

Can we view, edit, create, and fulfill orders from the admin panel without leaving it?

Can we create a single invoice or multiple shipments?

Can we print invoices, packing slips, and shipping labels?

Questions about customer accounts

Can we give each customer an account and a dashboard?

Can we show customers the status and history of their orders in their dashboard?

Can we make it easy to reorder from the customer dashboard?

Questions about analytics and reporting

Do you support Google Analytics integration?

Does your platform generate a sales report?

Does your platform generate a tax report?

Questions about catalog search

Can we offer faceted search?

Can we offer automatically suggested terms?

Is there a limit on the number of images per product?