Choosing the right e-commerce platform

One of the most fundamental questions that any new time founder will face is: what e-commerce platform is the best for your business? 

From industry leaders to advanced open-source solutions to free options— choosing the right platform for your online store doesn't have to be intimidating. First and foremost, here’s what you need to understand — there are two main types of e-commerce platforms:

• Third-party marketplaces: A third-party marketplace includes product listings from many sellers across product categories. Platforms like Amazon and Etsy help you create your own branded storefront within their ecosystems. While they are more affordable initially, they have higher fees and fewer customization options.

• Online store builder: As a seller, you can choose to run an independent e-commerce website, where shoppers purchase goods directly from the website. Platforms like Shopify, BigCommerce, WooCommerce etc allow extensive customization options to build and launch your own branded storefront, independent of any online marketplaces or platforms. 

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But what’s the difference and what should you choose? Let’s find out: 

Pros and cons of selling in a third-party marketplace vs an e-commerce website

1. Choosing a Marketplace

Pros: 

• Third-party marketplaces have already existing infrastructure, which can save you the hassle of setting up a store from scratch. 
• Marketplaces offer instant access to large, established customer bases, eliminating the need to build website traffic or app installs from scratch.
• All transactions and payments are directly handled on the third-party marketplace, which makes it easier for you. 

Cons: 

• Fierce competition and resource-rich brands overshadow new entrants in marketplaces.
• Shoppers focus on the product, not the brand, when purchasing from a marketplace, making businesses easily replaceable.
• High marketplace fees, up to 20% can make expanding your store challenging in the long run.
• Restricted seller-buyer communication limits promotional opportunities and customer relationship building.
  

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2. Choosing an e-commerce website 

Pros: 

• Allows you to completely customize your store, in terms of themes, colors, user journey, or even checkout flow. No cookie-cutter guidelines or limits.
• Gives you direct access to your customers, which ensures a better customer experience and more upsell possibilities through email lists, promotional activities, etc. 
• Ensures better margins, since you’re not paying any fees/profits to the middlemen aka e-commerce marketplaces. 

Cons: 

• Building your own site could include a lot of effort, time, energy, or even money. 
• Includes multiple checkpoints to get a store up and running, with a lot of work dumped on your plate.
  

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The answer is clear: building your own e-commerce website is far more beneficial in the long run, than just selling on a third-party marketplace. But how do we start?

Let’s open this can of worms and create the best online store for you, to help make your first sale. 

To support your decision-making, we've compared and reviewed 3 top e-commerce platforms for online businesses in 2024 for you to make the ultimate choice: 

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Shopify vs WooCommerce vs Big Commerce

For an in-depth explanation, please check this article.

Based on all the factors, Shopify seems to be the clear winner. 

Shopify is one of the most popular cloud-based, multichannel platforms. It is the ultimate all-in-one commerce platform to start, run, and grow a business. Chosen by over 1 million online stores, Shopify serves small and medium-sized businesses (SMBs), solopreneurs, and enterprises, to make business better for everyone. 

Pro tip: Shopify in May 2024, launched 4 new updates to build a unified e-commerce platform. Read more here.