E-commerce Platforms: How They Compare + How to Choose One

What is an e-commerce platform?

An e-commerce platform, also called e-commerce software, is an application that facilitates the buying and selling of products online. Businesses use e-commerce platforms to manage their websites and operate their sales and marketing functions. According to Statista, 2022 saw over $5.3 billion in retail e-commerce sales, up from $4.9 billion in 2021, and projects that e-commerce sales will reach $8 billion by 2027 [1]. 

In today’s e-commerce economy, buyers can purchase almost anything online. Trending e-commerce categories in 2024 include vitamins and supplements, skincare, coats and jackets, bicycles, arts and crafts supplies, motor vehicle parts, bedsheets, and more, according to popular e-commerce platform Shopify’s sales data [2].  

If you’re considering e-commerce solutions for your business, you might wonder how to get started. This article covers popular e-commerce platforms, how they compare, and the steps to choosing a platform for your business.

E-commerce platform comparison

One of the most important first steps in selecting a platform is investigating the key features available and how they compare. Explore the table below to start the process.

*Prices are based on information available February 2024. 

How to choose an e-commerce platform

In this section, you will use our process to choose the best platform for your e-commerce business needs. Build from the information in the table above, adding additional e-commerce platforms as needed, and follow the steps below to investigate further platforms, pricing plans, key features, and more.

1. Identify necessary e-commerce platform features.

When you have clarity on what you need an e-commerce platform to do, you can confidently choose among the numerous features. List the key features essential to selling your products and operating your business effectively. For example: 

• Integrations for offering customers multiple payment options

• A customer relationship management (CRM) system for organizing a growing list of leads and customers

• An analytics dashboard for examining multiple performance metrics 

• Integrations for dropshipping (selling your products online without having to store inventory yourself)

• Simple, intuitive admin panel for quick setup 

• Custom domain 

2. Conduct a cost-benefit analysis. 

Your next step is to compare the cost of using essential features on different platforms. Take into account what features you may need now and those you may need as your business grows. Most platforms unlock different features, such as increased storage and additional integrations, when you upgrade from a basic plan to a more expensive price tier.

Your goal is to balance making an economical selection with gaining access to essential features.

3. Test the user experience.

With the information you’ve gathered from the first two steps, begin narrowing down your list to two or three most appropriate platforms for your business. Sign up for a free trial on these platforms to test the experience of using them as a site administrator. 

• What’s the ease of setting up the customer-facing components of the site, including product pages, checkout pages, and blog articles?

• Do the platform’s features, such as the checkout process and payment processor, allow you to create a seamless customer journey and buying experience?

• How intuitive is it to navigate the admin panel? 

• How helpful do you find the support documentation and customer service experience? 

5. Examine SEO settings.

While most website platforms, including those for e-commerce, allow you to customize your SEO (search engine optimization) settings, some platforms may offer more extensive SEO features, such as blogging tools and the ability to change ALT tags for images. 

SEO is important for an e-commerce website because it means you can rank higher in search engine results for inquiries related to your products. In other words, the right SEO settings help customers find your site and purchase your products. 

Before making your final e-commerce platform selection, be sure that the SEO tools will support you as your business grows so that you can attract more internet traffic.

E-commerce platforms key takeaways

Remember: As the e-commerce industry grows and your online business evolves, finding the best platform for your e-commerce website is important. Remember the cost, functionality, and scalability of your options as you choose a platform and even upgrade to premium versions.

Get started in e-commerce with Coursera.

Taking online courses can be a great way to learn more about e-commerce, from building online stores to nurturing customers through email marketing. Explore this and more in the Google Digital Marketing & E-commerce Professional Certificate.