How to Choose an Ecommerce Platform for Your Retail Business
Right now, it is very important for every retailer to have a strong online identity and make sure that they have all that is necessary to capture that increase in online sales, which is expected to reach $129. 7 billion in 2024. That’s why choosing the right ecommerce platform is crucial.
You cannot discuss digital without talking about ecommerce platforms that aid in sales and other back-end functions and the customer. However, the question remains as to how you select the right one for your retail business.
Here, you will find all the information you need about the different options to help you make the right decisions for your brand and discover the key features of an ecommerce platform.
How to choose an ecommerce platform for your business
Before coming up with a decision about the platform that is most suitable for your business, you will need to know the basics about what ecommerce platforms are and start by familiarising yourself with the main platform types—SaaS, headless, and self-hosted solutions—and how they differ. Read our blog ‘What is an e-commerce platform tips for retailers‘ to learn more.
Never Miss a Retail Update!The platform that you choose has to be current with the latest changes in the digital and retail world. When evaluating options, look beyond immediate needs and consider your long-term business strategy. This approach helps ensure that the platform you select will not only serve your current sales channels but also support your future growth.
Here are the basic steps in your decisional process:
- Define your goals and target market
- Set your budget
- Ensure the platform meets security standards and compliance
- Consider product catalogue and business size
- Evaluate customer service support
Define your goals and target market
Before exploring the most common ecommerce platform features, you should know who (and if) you’re selling to and why. A great place to start is asking key questions to define your path:
- Are you targeting businesses, consumers, or both?
- Are you primarily looking to expand into international markets, or are you targeting customers in your area?
- How could your platform deliver a better retail experience that your customers are after?
This enables you to choose an ecommerce system that can support business growth and the achievement of these objectives in the future, as well as meet the requirements for scalability, user experience, geographical location, and others.
Set a budget
Knowing all the costs of an eCommerce platform will greatly help when deciding on which one to select for your retail business based on your budget.
A detailed budget should consider the direct and indirect costs, including:
- Subscription costs: These are the charges that you have to pay on a monthly or annual use basis. The monthly subscription fees of SaaS platforms depend on the plans and features that they include. They vary from small business packages to the most complex enterprise solutions.
- Transaction fees: Most service platforms charge for payment processing. Some of these charges may be a percentage of every transaction or through a certain fee. You will need to compare rates because these fees can accumulate as your business grows.
- Add-ons and plugins: Some in-house features might be provided by the platforms. Most of the platforms provide additional features to enhance your retail marketing strategy. This can include SEO, analytics, email marketing, and integration with CRMs to enhance what the platform offers. However, while these enhancements improve performance, they also increase the total costs.
- Maintenance costs: If you are using such solutions as self-hosted platforms or custom solutions, you will require server hosting, updates, and general maintenance. It may also involve getting dedicated staff or even outsourcing the technical support and troubleshooting to third-party companies.
- Scaling costs: However, you will incur some other costs when your website traffic and order volume increase more than you initially planned. Some examples are plan upgrades, cloud hosting fees, and implementation by a third party.
When all of this is factored in, and with the occasional costs that may occur, it is possible to develop a reasonable ecommerce budget. This supports your ecommerce retail strategy and provides room to expand without putting pressure on your finances.
Ensure the platform meets security standards and compliance
Security is something that should never be neglected when searching for an appropriate ecommerce platform. Retailers in ecommerce are constantly faced with the challenge of protecting the sensitive information of their customers, such as personal information, credit card details, and order history. If you do not offer your customers secure business solutions, then you are likely to lose their trust and harm the image of the brand.
Here are the most important ecommerce platform security features:
- PCI DSS Compliance: Standard protocol for secure payment systems to enhance protection of the cardholder data and reduce the incidence of breach. It is reassuring for businesses and customers alike.
- SSL Protection: HTTPS SSL encryption ensures that the information that is exchanged between your site and your customers is not intercepted by others. The SSL certification indicates that buyers can trust an ecommerce website: It also has a secure connection indicator in the form of the URL prefix “https,” along with a padlock icon that is displayed in the browser.
- Fraud Detection Tools: The use of smarter methods, such as fraud prevention tools that are able to analyse transactions, identify suspicious activities, and respond to them in real-time to avoid chargebacks, is also a proactive approach to fraud.
- Data Backup and Recovery: Select platforms that provide automatic backups and disaster recovery plans to restore customer/business-critical data following cyberattacks or IT outages.
- Ensure Compliance with Privacy Regulations: Check whether the platform also fulfils the requirements of the data privacy policies such as the GDPR, CCPA or HIPAA, depending on the location of your business and the customers you target. This shows that you are committed to the protection of the customers’ information, and you are also protected from any legal actions to be taken against you.
Security is of utmost importance for online retail stores that host online transactions. In protecting your company and your consumers’ information, it is imperative that you take steps to ensure their data is secure at all times.
Product catalogue and business size
The products that you offer and the size of the business that you are running determine the type of commerce software that will be most suitable for your business. It should be a system that would work well with your current processes and one that would grow with your business.
Here are some considerations that you should think about:
- How many products do you have to offer? This is because product catalogues are managed in different ways on various platforms. If you are looking for a platform that can fully support a large product catalogue, then you want to make sure that you are selecting the right tool for the job. If you are offering a large number of products that come in different sizes and colours, it is crucial to select a system that is easy to navigate and effectively provides options for search and filters that would enable the customers to find what they are looking for with ease.
- Are powerful inventory management tools something you need? Companies that want complex inventory management features, such as warnings when stocks are low, real-time stock updates, or a system that can be connected to other systems, must have powerful tools. These features make processes efficient, thus reducing the chances of errors and increasing customer satisfaction.
- Are you a small business or a large enterprise? Small businesses with little or no technical experience can opt for the ready-made platforms, for example, Shopify or Wix, which offer intuitive interfaces, a set of templates, and basic functionalities as the foundation. On the other end of the spectrum are larger companies or fast-growing companies. These may require platforms like BigCommerce or Magento that have a more advanced level of customisation, are scalable, and have more features to handle large volumes of traffic, in-depth, large-scale operations, and a large number of customers.
- What is your growth potential? When considering ecommerce platforms for retailers, it’s important to assess your brand’s growth potential. If your business means aiming higher at traffic, growing volume exponentially, and selling internationally, the selected ecommerce platform should be able to support multiple currencies and languages, allowing you to easily expand into new markets.
Customer service support
It is always important to offer good customer service in a retail business, but it’s equally important to have reliable technical support for your ecommerce platform and maintain your ecommerce site always up and running.
Look for platforms offering robust customer support:
- Customer support available 24/7 through various channels, including e-mail, live chat, and phone.
- Detailed guides and help documents are also available, as well as the forum to visit in order to get necessary information.
- Proactive customer service that prevents all kinds of issues and solves all your problems as soon as possible.
Key features of an ecommerce platform
Evaluating your future ecommerce website features can be daunting, but it is a critical process that demands careful consideration. Investing time in this analysis is essential as this choice could make it or break it.
Prioritise these essential features based on your business needs:
- Payment gateways
- Robust product catalogue
- Flexible shipping options
- User-friendly interface
- Customer review system
- Automatic tax and accounting
- Centralised order processing
- Website security
Payment gateways
Payment gateways and various ways of payment are something that should be considered a must in all ecommerce platforms. You must provide credit cards, PayPal, Apple Pay, Google Pay, and other local payment methods that are acceptable for your target audience.
Another way is to provide the guest check-out option so that the customers buying from your website for the first time or those who do not want to create an account can do so without any hassle. If your product will be sold internationally, this should be a top priority, as customers expect it.
Robust product catalogue
A robust catalogue is a systematically organised, comprehensive list of items essential in both traditional retail and ecommerce. A high-quality and well-structured product catalogue can boost sales by providing detailed product information while also improving your ecommerce store visibility on Google. Some features include the management of products in bulk, detailed product information, high-resolution product pictures, and filters to help the customers find what they need.
Flexible shipping options
Seamless shipping is especially important for enhancing customer satisfaction.
In order to facilitate it, platforms should offer:
- Options such as location, weight, or product value-based shipping rates.
- Real-time integration with the transportation carriers, including FedEx, UPS, and DHL.
- Option to generate shipping labels and create shipments with a single click of a button
- Opportunity to get the product same day, pick up from the store, or use environmentally friendly delivery options.
User-friendly interface
A clean, intuitive design makes the site more user-friendly for both the users and the administrators, particularly when working on product pages as well as modifying inventory. It is advisable to select a responsive design so that the users can have a seamless experience when browsing and shopping on the site, whether they are using a desktop or a mobile device.
Customer review system
A survey by Fan & Fuel, a digital marketing agency, found that nearly all respondents (97%) consider customer reviews before making a purchase decision, with 35% saying that a single negative review is enough to deter them from making a purchase. This is why platforms that enable verified reviews can be considered as building trust and having real authenticity. Implementing a star rating system, requesting written feedback, and featuring positive reviews in prominent places can help boost trust and conversion.
Automatic tax and accounting
International ecommerce companies have to deal with the issues that are related to taxes. Some of the features that can prove useful include automated tax calculation, for instance, on VAT, GST, and other local taxes, which greatly reduce the time spent and the chances of errors. It is also possible to get financial support from accounting tools like QuickBooks or Xero, integrated with the platform.
Centralised dashboard for order management
An all-in-one dashboard is a place where you can set up fast order processing, confirmation emails, and returns for order control. For instance, SMS-enabled shipping notifications and low-stock alerts ensure that operations run smoothly and customers are well-informed without having to get involved.
Website Security
Security is something that you cannot compromise when it comes to eCommerce platforms. Your platform must contain SSL certificates, which help in sending information to the channels that are encrypted with the aim of avoiding loss of customer data. Prevention includes the use of firewalls, fraud detection and avoidance, and the constant updating of software to ward off hackers.
Additional ecommerce platform features
The ecommerce features listed above are essential for any ecommerce platform. However, there are lots of other features you can find in an ecommerce software that could benefit your online store:
- Suggestions for upselling
- ecommerce analytics & reporting
- SEO and marketing tools
- Integrations
- Support for POS systems for offline sales
Suggestions for upselling
Recommendation systems that incorporate AI can tremendously increase the order value per customer on these platforms. They track the customers’ behaviour and suggest relevant products and services in the meantime. For instance, through suggesting ‘frequently bought together’ products during the checkout process. Personalisation is a key aspect of the shopping experience and enhances the likelihood of making more purchases.
Ecommerce analytics & reporting
Analytics tools are integrated to help you understand how well you are performing in business.
Consider marketplaces that provide detailed reports on sales trends, client behaviour, and product performance. Understanding metrics such as cart abandonment rates, average order values, and repeat purchases allows you to act accordingly. That is why it would be great if the platform of your choice could give you the possibility to build custom dashboards or export data to a tool like Excel or Google Sheets.
SEO and marketing tools
In order for an ecommerce to be successful, your retail site has to be easily found on Google. Built-in SEO features help in optimising sites for search engines with features such as the ability to alter meta tags, URLs, and even structured data. These include marketing features that are integrated with email automation, social media advertising, loyalty programs, discount coupons, and many more. To boost your conversion rates and build lasting loyalty, A/B test your promotions or landing pages to perfection.
Integrations
The most competitive ecommerce businesses of today leverage the use of omnichannel strategies to improve the effectiveness of their operations. Choose platforms with integrations for popular marketplaces such as Amazon, eBay, and Etsy, Google Merchant integration, and shipping and productivity tools like shipping software and Google Analytics. Third-party integrations via APIs or plug-and-play apps allow for seamless connectivity between various touchpoints and help minimise the chances of lost revenue.
Support for POS systems for offline sales
For businesses that have both an online and offline aspect, having a smooth integration with an ecommerce platform and a POS is very impactful. This is to make sure physical stores are reflected properly in stock levels and to prevent having a digital store out of sync with a physical store. Cross-platform unified customer profiles, sales data, and purchase histories provide a seamless, personalised shopping experience.
Such features can help achieve operational efficiencies, improved customer engagement, return on investment maximisation, and easier scaling and adapting to changing market requirements.
Final thoughts
Selecting the right kind of ecommerce solution is not just a technical decision but can revolutionise the approach to your retail and ecommerce dynamics for your online business. The platform you choose will affect how well your operations flow, how riveting your customer experience is, and how easily you can scale as your business takes off.
So always keep in mind your goals—whether they are venturing into new markets, building the right audience for your business, or even more of repeat business—and then choose. Learn how your budget works in the real world, including how you may need to spend more in the short run for things like plugins, maintenance, or scaling up. And then, consider your techno-functional requirement.
If you have a small team or if you are working with small operations, then you need a solution that is very easy to use, comes with pre-built templates, and has basic features.
The right platform doesn’t just power your website but enhances the process of providing a good, seamless customer journey. The appropriate platform ensures that the customers can easily search for the products they need and then make their purchases without any hassles. These activities ultimately result in increased conversions and brand loyalty.
ecommerce is a rapidly evolving concept, and one has to be prepared for changes that may occur in the future. This is why it is important to select a solution that offers the ability to integrate new technologies, expand your channels, and adapt to evolving consumer behaviour. This means that growth will be captured, and your business will be able to keep on growing and grasp opportunities in the current dynamic market.
Your brand’s success hinges on the decisions you make today.
Do you want to know more? Then, join us at the Ecom North event to explore the latest trends and innovations in the ecommerce industry. Register now!
