How to select the Best eCommerce Platform

The eCommerce industry has transformed the way we consume and it not set to stop anytime soon. If today the industry is worth $6.3 trillion, it’s set to nearly double and reach a staggering $8 trillion by 2027. 

To help you decide how to choose the best platform for your needs, we’ve put together this guide that details all the factors and considerations you need to keep in mind.

Choosing the best eCommerce software is not as straightforward as it we think. In fact, it is actually one of the most complex and important decisions a business needs to make. Get it wrong, and it’s an expensive mistake to fix. Get it right, and your business can easily scale going forward.

Why selecting the best eCommerce platform matters for your business

Building an eCommerce business is more than just simply putting up your product listings on the web. It is far more complicated than you actually imagine. Just like running a physical retail, or a production facility, the same level of strategic thinking and planning also goes into building and running your eCommerce business.

And if you get this fundamental spot on, then you can take advantage of the digital environment where you can automate and streamline many of the tasks and activities that would have required human intervention.

But when it comes to selecting an eCommerce platform, you have to remember that your eCommerce site will dictate the following 4 things:

• Growth: How quickly is your business able to grow?

• Running costs: This includes the cost of building your software and ongoing development and maintenance costs.

• Customer engagement: How you can control how your customers interact with your business.

• Objectives: The right platform will enable you to deliver the service you set out to achieve.

It is important for us to point out that many eCommerce vendors tend to focus on “skin” deep issues like design, UX branding and content. But the real eCommerce issues are found within the business process, customer engagement and lead generation. All these processes can help you determine whether you’re making a healthy ROI on your software investment.

Why use an eCommerce platform?

An eCommerce platform is the backbone of an online retail enterprise, whether it is for a B2B or B2C company. Even the most traditional businesses are now moving online as there is no way around it. If you do not exist on the internet, then you will fade.  

The right platform isn’t just for ecommerce and logistics, but can also help to streamline how your business interacts with your clients, customers and employees.

eCommerce platforms are essentially software applications that enable businesses to execute complex functions both in the front-end and back-end. This includes CRM, inventory management, mobile commerce, web design and warehouse fulfilment. 

Before we even had specialized eCommerce solutions, businesses had to build their own platform in-house by their IT and development team. This was a laborious and costly affair. 

These self-built solutions were usually unscalable, difficult to manipulate and were not able to integrate with other software solutions used by the business.

Today, the build-your-own method is used by a small minority of companies, but we now have a range of specialist solutions: Open-source eCommerce platforms, Saas eCommerce platformsand even marketplaces like Amazon and Walmart. 

We’ll explore each of these eCommerce platform types later on in this guide.

So, how to determine what is the the best eCommerce platform?

When looking for the best eCommerce platform, you should first define your needs. What is good for a business may not be for another. By defining your needs and requirements, you will be able to make an informed decision.

You can checkout our eCommerce RFP template here to give you ideas on what to look for.   

“The best eCommerce platform is the one that successfully delivers the outcomes and objectives that you have set; not the one that’s popular.”

These goals can be simple things like an increase in revenue, improving customer engagement or entering or creating a new market. Or they could be complex where you have many stakeholders involved that have conflicting objectives. 

This is where strong leadership is required to get everyone on the same page; without it, your eCommerce project will struggle to take off.

Also, the right online store platform should fit well with the current technical expertise of your team. For example, if you select eCommerce software that is extremely popular but has a steep learning curve to get right, this will not sit well with a team who have a low technical expertise. 

In this case, you will have to draft in a technical team to assist you towards your end-goal.

In today’s world, being able to pivot quickly and launch new products/lines/business models fast will help you stay ahead of your competition. 

We saw it with Covid. Companies that were able to adapt and shift their business model online were able to survive the hard pandemic days. 

In this case you will need a platform that can move and adjust fast without requiring an entire overhaul. 

Pro tip: Understand your business goals in detail before you begin your search for a platform. Find out what is possible and what impacts that change will have on the people, clients and vendors you deal with.

What are the different types of eCommerce platforms?

When it comes to selecting the right software for the job, you have 6 different types of eCommerce platforms to choose from, as shown below.

1. Build your own

While this is more of a method than a type of eCommerce software, choosing the build-your-own route requires you to contract someone either internally or externally to develop it. 

As mentioned earlier, this is less common nowadays. But if your business is very niche and has a specific set of needs and requirements that none of the commercial platforms can offer, then this might be your only option.

2. Traditional platforms

With this type of platform, you purchase a licence fee upfront, which you renew annually. Your IT team and team of developers will then build and customize on top of the platform and then install it either on-premise or into the cloud. Examples of traditional platforms include Kentico, Hybris, Oracle Commerce and IBM Digital Commerce.

3. Open source

Similar to traditional platforms where you follow the same development procedure, the main difference is that you don’t incur an upfront cost in purchasing a license. However, you do have to pay for initial development, implementation, ongoing development, upgrades and migration. An example of an open source eCommerce platform is Magento.

4. Cloud platforms

Cloud-based eCommerce platforms are online solutions hosted on remote servers that allow businesses to manage and sell products without needing on-site infrastructure. Examples include Magento Enterprise Cloud, Demandware, Salesforce Commerce and Volusion.

5. SaaS platforms

SaaS eCommerce platforms are generally built on a single codebase. Everyone who utilizes that platform experiences the same technology for a fixed monthly fee that covers server use, maintenance, security and upgrades.

6. Headless commerce

A headless commerce platform separates the front end (the part that your customers see) from the back end (the admin and functionality part). This makes it much more customizable, scalable, and personalizable. 

What headless commerce brings to the eCommerce game is total channel design freedom. This means if you have large developer resources then you can create tailored customer experience for each channel your business uses. From in-store kiosks to mobile apps, and websites. 

This is a great choice for unique businesses or businesses who want to build different experiences.

The rise of mobile eCommerce platforms

But it’s not just the cloud that’s becoming important. Today’s shoppers are much more likely to buy directly from their mobile (and no, that doesn’t mean they want another app).

As a result, businesses need to meet this demand with responsive mobile eCommerce platforms. Customers don’t just expect this — they desert businesses that don’t have this, and 59% of shoppers admit that being able to buy on mobile is a decision that drives them.

Okay, so what can your eCommerce platform do about it? Make sure you find a platform that accommodates mobile design, and work with your vendor to implement it. 

Our pro tip? Plan for mobile first, not desktop first. That way, your platform will be future proofed.

Future trends: AI & increased personalization

You won’t be surprised to hear that AI is also bursting onto the scene in the ecom world, either. Even though AI chatbots, personalized experiences, and AI email campaigns have only recently been developed, they’re already things that your customers expect to see online.

Because AI doesn’t just impact the shopping experience, it also boosts conversions. Personalized features, campaigns, and more are now standard, and so businesses that don’t utilize AI strategically are left behind. 

This is why it’s vital to choose an eCommerce platform that can support AI as it changes. Choosing something that is expensive to change and adapt (like a build-your-own 100% customizable solution) will cause problems later down the road, as you'll have to constantly configure and reconfigure to accommodate new technologies.

A breakdown of eCommerce platform costs

In deciding on a digital commerce solution, a lot of people tend to underestimate the actual eCommerce platform costs. 

While the initial build and development costs are obvious, there are other costs you need to keep in mind. Let’s take a look.

1. Maintenance costs

If you decide to go for a traditional/open source platform, then it is your responsibility in looking after maintenance so your eCommerce site performs to its requirements. And depending on the size and complexity of your eCommerce site, these maintenance costs can vary and will require you to hire technical help. With SaaS platforms, on the other hand, maintenance is taken care of in exchange for the fixed monthly fee.

2. Upgrading costs

Open source platforms, in particular, require you to download and install updates whenever they are released. If you don’t install these updates in time, then your platform is at risk to hackers and cyber attacks.

Installing these updates does require some level of technical knowledge, so again, you will need to hire outside help. With SaaS platforms, just like maintenance, any updates are covered in the monthly fee.

3. Adding new features/improvement costs

Consumer behavior changes over time. Make sure your site stays relevant by making improvements and adding new features. If you don’t have an easily customizable solution, you’ll find this is where the eCommerce platform costs really add up.

4. UX changes costs

Changes in consumer trends and behavior might require more complex UX updates. If your current eCommerce becomes too rigid, then you might have to replatform into another system that allows you to make these UX changes— which can be costly.

5. Hidden fees

Be careful of sneaky platforms that ramp up fees once you’re on their platform. This could be bandwidth charges, support costs, third-party provider costs, or scalability costs (where fees are tacked on if you exceed limits like bandwidth, traffic, or more). These can be costly, and can appear out of nowhere, so make sure you understand the platform’s pricing model before you commit.

6. Transaction fees

Finally, transaction fees are another cost of doing business on an ecommerce platform. While they may hook you with low installation fees, transaction fees are costs that are paid on every purchase, and which eat into your margins over time. Look out for transaction fees and ensure that you understand the costs of using your platform even as your business grows

What factors should you consider when selecting an eCommerce solution?

Besides looking at development and operating, there are other factors that you need to consider when selecting your eCommerce software. Let’s look at some here.

1. Vendor experience and expertise

Check to see if the vendor actually has the experience and the technical skill set in meeting the needs and complexities of your requirements, and experience of working with your industry.

Take the time to research case studies, customer reviews and forums to see if the vendor is well equipped to handle more than just development.

2. Support

When things go wrong, will the vendor provide you with the necessary support to help you resolve the problem or issue? 

Always look out for vendors that provide 24-hour emergency support and can be contacted through different channels including email, web chat and by phone. Plus, choosing a secure eCommerce platform from the beginning will minimize the time you might need to spend chasing support.

3. Scalability

As your business grows, will your eCommerce software grow with you? A scalable eCommerce platform is the central hub of your business. A platform that is difficult to scale can hinder the growth of your business.

[CTA: Read this next: Scalable Web Architecture: How We Handled a 1031% Surge in Traffic [A Case Study]

4. SEO-friendliness

Seo is not just for content, is a big driver for eCommerce organic traffic too. Choosing an  eCommerce Platform that has built in SEO features can give you a competitive edge. 

Some of the things to look for when considering an SEO-friendly eCommerce platform are:

• A  robust CMS that supports all types of content

• Using your own domain name

• Allowing customers to leave reviews

5. Mobile-friendliness

Mobile commerce is becoming the number one revenue driver for ecommerce. As Statista predicts  mobile sales will represent 62% of all online purchases by 2027. Making sure your ecommerce platform supports mobile and can scale to mobile apps or PWA  is non-negotiable. 

6. Security

Perhaps the most important thing to consider is security. A secure eCommerce platform means customer trust when it comes to financial payments and storing their data, and choosing a provider for their security will prevent major reputation losses down the line.

7. The most important factor? The client experience

How you deliver your client experience will influence the success of your eCommerce initiative. One critical factor that determines client experience is the user experience (UX) of your platform.

A platform that is user-friendly and intuitive can improve user-satisfaction and help your team achieve their objectives. This is why it is crucial to know if a UX of your platform reflects your company needs.

But besides the user-friendliness, client experience nowadays also heavily relies on the flexibility and adaptability of a platform. Nowadays, with AI, customers expect technological aids, like chatbots, personalized content, and bespoke shopping experiences. eCommerce platforms must readily adapt to these changes and innovations, but do so without causing a headache to your team.

12 must-have eCommerce platform features

Every eCommerce platform has their own set of unique features and functions. When you’re selecting a digital commerce solution, look out for the following features recommended by our experts.

1. Robust catalog capabilities

Your product catalog represents the heart of your inventory. Making sure your eCommerce platform can integrate with your warehouse, inventory management system and ERP is essential to make sure you data is always up to date on all fronts.

Out of the box solution may seem appealing for a straightforward online store. More complex eCommerce stores need to have a platform that can be customized to their needs. For example, ClarkRubber a franchise business in Australia needed to integrated the inventory from 60 different stores to one consolidated online store. You can read about how they did that here. 

2.  Flexible pricing

You’ll want to easily run promotions, sales or discounts—but that’s not all. Support for multiple currencies is another consideration, while you may also want to charge different fees for different geographical locations or product configurations.

3. Website personalization 

AI has brought a new level of possibilities when it comes to personalizing online customer journeys. An API-first eCommerce platform means you will be able to integrate with any tool you would like to enhance your customers experience and increase conversions. 

4. Flexible shipping

Shipment demands have changed drastically in recent years. Now, customers want things to be delivered on the day of purchase or the next day. Ensure the platform is well-supported by a decent distribution and logistics company.

Core dna, for example, supports zone-based shipping rules, and also allows for integration with fulfillment companies.

5. eCommerce analytics

There’s a range of vital eCommerce metrics and KPIs that you should be monitoring, and a built-in analytics system is the perfect way to do that. Most digital commerce solutions have their own analytic platforms. For those that haven’t, or if you want to gain access to more in-depth analytics, then you need to be able to sync or integrate the data from your eCommerce platform with another analytics platform.

6. Google Merchant integration

Google Merchant allows businesses to upload and maintain product information so it can be displayed in the relevant Google Shopping results. It helps to drive more traffic to your product listing page. Having this feature is hugely beneficial to reach customers beyond the borders of your website.

7. Social Media Integration

Social commerce is becoming a big part of selling online. Integrating your Online store with your social selling will allow you to always have up-to-date inventory and data. Your eCommerce platform should allow you to centrally manage your product catalog while managing multiple channels. 

8. Customer review system

Built-in customer review systems — or third-party integrations that allow for customer ratings and reviews — can greatly impact your 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.

9. Automatic tax and account calculation

If you’re a global eCommerce business, then you need to abide by tax laws of different countries alongside their currency requirement. Can your platform support this?

10. Multiple payment gateways

Having multiple payment options increases conversion. Plus, if you’re planning to grow your eCommerce store internationally, you’ll want to use local payment gateways to gain the trust and custom of local markets. Make sure to choose a secure eCommerce platform that can handle this.

11. Single customer view

Track your customers and their communication across every channel plus their buying data. Then, you can use this to deliver personalized buying experiences.

12. Extensive content management

In a world where AI generated content is dominating the SERPs, brands that embrace storytelling and diverse content will perform better. Having an SEO-friendly eCommerce platform that supports different types of content is vital.

5 common mistakes to avoid when choosing an eCommerce platform

It’s easy to get bogged down in flashy eCommerce platform features, but what should you avoid? 

1. Not looking into Hybrid eCommerce platforms

While headless means freedom, it can also create unnecessary technical complications when it comes to simple things such as creating an online store website. Hybrid eCommerce solutions thatt allow you to get your online store up and running fast using templates while simultaneously working on headless integration with other channels are the best of both worlds. 

Choosing an online store platform that is built on a hybrid infrastructure will be easier to update, upgrade and manage. 

2. Choosing a platform that’s hard to scale

A platform that is hard to scale harms the growth of your business. Main reasons why some platforms lack scalability is because they do not support multi-tenancy and multi-site and they rely on either local servers or poor infrastructure.

3. Too many eCommerce platform features

This also relates to scalability where you invest in a platform that has way more features than you actually need. Not only are you getting a poor value for your buck, but you’re paying for features that you are not using.

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 to keep your spending inline with the growth of your business.

4. Having no objectives

Very early on in this guide, we mentioned how crucial it is to set your objectives before you go and choose an eCommerce software. Without pre-defined objectives at the very beginning of the selection process, you will end up wasting time and potentially choose the wrong platform for your needs.

5. Customizing the wrong way

Many brands choose a rigid platform, and then try to customize their internal systems and requirements to fit. But if you know what your requirements and goals are, you should be able to pick a platform that fits your brand and is flexible enough to be customized for everything else.

Four scalable eCommerce platforms ranked

So, now we’ve broken down what goes into a decision like this, it’s time to get serious about some of the platforms available. Let’s take a look at the top four.

1. Customizable enterprise eCommerce: Core dna

Core dna brings your online business to life. It’s a fully integrated solution with an advanced hybrid CMS and eCommerce solutions. It is designed to bring all the different aspects of your business together so you can manage it all from one central location. 

It can support the most complex requirements, like multi-warehouse management, subscription models, and personalized customer experiences. 

Randys worldwide has trusted Core dna to power their online presence. You can read about it here. 

2. User-friendly: Shopify

A popular, easy solution, Shopify is known for its easy-to-use interface. And it is easy to use, with apps and themes that can help it fit into any kind of business.

However, if you’re looking for the more advanced eCommerce platform features, then you should look elsewhere. Shopify’s app-based model means that the costs of your new eCommerce platform can quickly add up for more complex features. And be aware that transaction fees may apply, that could eat into your margins.

3. Robust features: BigCommerce

For high-vol sellers, Bigcommerce can be a good choice because there are no transaction fees, and it’s a scalable, SEO-friendly platform.

However, it’s a bit complex to get your head around, and lengthy customization and build times make Bigcommerce a clunky solution for smaller businesses or growing online stores. 

4. Enterprise platform: Adobe Commerce

Finally, Magento is a great choice for enterprise businesses because of its significant customization potential and scalability. It supports personalization for individual customers (which is great for businesses that need this functionality to run campaigns) and it also integrates well with other Adobe products.

However, once again, it’s difficult to build and scale. Certainly not for amateurs, you can expect to pay high costs for specific developers with appropriate technical expertise, and expect significant delays in customization (a challenge when you have to move fast). 

Choosing the right platform for tomorrow

Ultimately, the choice of how to choose the best eCommerce platform is a tough one, and it’s one that deserves significant thought.

If you’re a start-up business, you’ll want to look for a platform that can grow with you. If you’re an established brand who’s outgrown your earlier choice, you’ll need a digital commerce solution that will help you scale (without the need to switch again).

 And if you’re an enterprise business looking for a platform that will take your brand to the next level, then you need a solution that is future-focussed and ready to dive into uncharted technological territory alongside your marketing and sales team.

It’s the lynchpin in your growth plan. Choose correctly, and your ecommerce platform will help your business succeed. Make a poor decision without considering the true implications of your new platform, and it’s a choice you’ll pay for for years to come.

But the bottom line is that your solution needs to fit your business. It must be customizable, personalizable, buildable. It should be accessible, with low costs, and an easy learning curve that your team can get to grips with quickly. It should be future-proof, with elements that adapt to AI, mobile-first shopping, and technical advancements that we don’t yet know of.

For many businesses, that perfect eCommerce solution looks like Coredna. Learn more about our platform and what it’s capable of here.