Having a primary platform where your customers can shop your products online can considerably boost your revenue and growth.
Your social media profiles are a convenient space where you and your audience can easily connect. Your website enhances this space and hosts your brand and merchandise, giving you a one-stop shop where your customers can find everything about your business.
What is an eCommerce platform? What features does it have to offer? How can your business benefit from it? We answer these questions and give you a head start with tips on choosing and setting up your platform at the end of this article
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What is an eCommerce Platform?
In 2021, eCommerce sales reached $4.9 trillion worldwide and are projected to grow by 50% over the next four years. It’s the prime time to set up your online shop and expand your audience reach.
eCommerce is the process of buying and selling products or services on the Internet, and it occurs on various platforms. We’ve deconstructed its components below to introduce eCommerce platforms for your business.
3 eCommerce Business Models
An eCommerce portal is the online version of your physical store. It’s where your customers can purchase your merchandise from anywhere; they can access the Internet and your online shop.
The three primary types of eCommerce business models are:
- Business-to-business (B2B) - a business providing services to other businesses
- Business-to-customer (B2C) - a business offering products directly to consumers
- Customer-to-customer (C2C) - a customer trading goods with fellow consumers
It stands apart from a typical website where you showcase your brand and feature your products. With an eCommerce site, your audience can browse your catalog, purchase orders, and receive their items sent to their delivery address.
As for businesses that offer services rather than physical products, it’s a much simpler transaction.
Since there's no need to set up storage and logistics, you can set up a platform where you can establish communication lines with your clients, whether it’s on your website or through email.
Functions of an eCommerce Platform
How does eCommerce work? These are the core functions of running a store, whether you have a physical or a digital shop:
- Receiving – Clients select the products and proceed to checkout. Then, your team is informed and can assist your customers as needed. With an online shop, you can list your products, create descriptions, set prices, apply discount codes, and use similar processes your customers use to interact with them. These are all tools to guide your customers through shopping.
- Processing – This step involves checkout and payment, which can be managed by your customers or with the help of your team. You typically require cash or card details, followed by a billing or shipping address if the item requires delivery.
- Shipping – Once they’ve submitted their order details, your team processes the shipping and delivery logistics. With an eCommerce platform, you have a reference point and queue for the orders you need to fulfill. Both you and your customers can track and manage shipping from your website.
You can follow the same basic principles if transitioning from a physical business to an online shop. The difference is the tools you use and the level of interaction between your customers and your team.
Types of eCommerce Platforms
There are different types of eCommerce platforms, and your choice depends on how you plan to use it. We discuss each of them below to help you determine the best match for your needs.
Subscription-Based Platform
While it can be pricey for smaller businesses just starting, the features of subscription-based platforms make the payment model worth the financial investment.
There’s value in having convenient mechanics, such as:
- Customer relationship automation tools
- Automated billing and tax computation
- Logistics management features
- Performance analytics and report tools
Open-Source Platform
The primary benefit of open-source platforms, whether for eCommerce websites or other software, is the ability to customize them to your needs and preferences.
The goal is to integrate the best features of a full suite of services from a subscription-based platform, but one you can personalize without the added cost. You’ll need to set up these features or consult a specialist who can help you.
The benefits of the DIY approach of an open-source platform:
- Cost-effective to build and maintain
- Custom-tailored to the features you need
- A secure space you can manage
Headless Platform
A headless platform means the website's front and back end are separate systems that can be updated individually as needed.
Traditional eCommerce platforms have established categories and settings to make them faster to set up, but this can be limiting or outdated. A headless platform has the basic structure to host your content and function as an online shop for your merchandise, but with more convenient advantages to meet your needs:
- Customize frontend and backend independently
- Integrations to improve ease of use
- Faster to develop, set up, and update
- Easier and quicker to scale
How To Choose the Right eCommerce Platform for Your Business
Different teams have different capabilities. Fortunately, there’s a variety of eCommerce software solutions available. You just need to find the right fit for your business.
Here are the types of platforms ideal for different business sizes:
- Small teams who don’t specialize in web development can opt for subscription-based platforms because they have the best features and tools ready to go.
- Medium-sized businesses that have figured out their process and preferences may choose headless platforms, which they can customize and launch rapidly.
- Large enterprises with highly experienced tech teams and an established workflow may prefer to work with an open-source platform they can personalize to their business needs.
- Once you’re familiar with your operations and what works well with your team, you can choose the right platform.
Selecting the right eCommerce platform is crucial for the success of your online business, and partnering with an experienced enterprise software development company can ensure a seamless integration tailored to your specific needs.
Features of eCommerce Platforms
eCommerce platforms come in different shapes, sizes, and offers. Having an online shop can be even more challenging than managing a typical website because you’re also maintaining a catalog and managing and fulfilling orders on the backend.
Whatever platform you use, there are features to look out for that can help optimize your everyday workflow.
Feature #1: Available at Any Price Point
You can access great platform features from a variety of price points. Naturally, the lower the price, the more you’ll have to set up yourself.
That said, there are available platforms from providers offering more ready-to-use tools. Determine your budget and if it’s an investment worth the value, especially if the features are exactly what you need for your website.
Feature #2: Ease of Use and Accessibility
With a well-designed website, you can increase your conversion rate by up to 200%. You can start with the basics and list your products so your customers can shop online, and you can process their orders.
Choosing the right eCommerce platform needs to be a good fit for your team’s workflow and be easy to use for your customers.
Feature #3: A Flexible and Scalable Tool
Most platforms will have ready-made templates to help you set up your website, which you can also personalize to your brand design. These are designed to be simple and fast to update, so making changes and growing your platform should be easy.
It can be just as quick for open-source platforms despite the editable templates, especially if you're working with highly skilled web developers and designers.
Feature #4: Integration With Different Programs and Plugins
You can add different integrations to your eCommerce platform to help you get specific functions to boost your operations.
Look into the following plugins available for some of the leading platforms online:
- WordPress plugins
- Shopify plugins
- Wix plugins
- Stripe plugins
- WooCommerce plugins
Like the platforms, plugins will be free; some may require subscriptions or upfront fees. Gauge how beneficial the addition would be to your website and consider if it’s worth the price.
Feature #5: Customizability To Match Your Brand Design
Infusing your brand’s personality into your website design helps your business stand out from its competitors. This makes web design a vital part of your eCommerce strategy and your sales and marketing methods.
Having consistent brand design can aesthetically connect with your customers. It also establishes credibility throughout your online platforms and informs your audience whether it’s an official channel.
eCommerce Platform Takeaways
Establishing your website and online presence requires a robust marketing strategy to help customers find their way to your website. This can be through ads, social media, and word of mouth from previously satisfied customers.
This is why up to 41% of brands invest more into their paid and organic search rankings.
If you’d like to work with a web development specialist, you can send an eCommerce RFP. This will introduce information about your project and how they can help bring it to life.
Below are the essential steps to getting it done:
- Populate your website with pages informing about your business and your brand
- List your products and include item descriptions with the appropriate keywords
- Add the links to your social media profiles as needed
- Regularly update your shop and make sure your orders are fulfilled
A professional eCommerce development agency can also help you with this process, so we advise looking for the right agency to partner with for your project.
