Have you always had an affinity for furry (or scaly) things? Have you ever needed money? If you answered yes to both these questions, you may want to consider starting a pet-sitting business.
But before you pick up the leashes and pooper-scoopers, it’s a good idea to sit down and plan out the trajectory of your business. If that sounds overwhelming, don’t fret. Below, we’ll lay out the steps you can take to start a pet-sitting business.
Decide On A Location
Since you’re going to be dealing with people’s pets, you’ll need to take into account your proximity to your clients. If they’re dropping their pets off with you, you’ll want to be located somewhere easily accessible to most of your customers, and one that can accommodate animals. Depending on where you live, this can be tricky as the space necessary to accommodate animals will usually be cheaper in less centralized locations.
On the other hand, if you’re going to your customers, you’ll need to take into account the amount of time you need to spend with each client’s pets, the costs of commuting to the job, and how animal-friendly/animal-hostile the infrastructure in your service area is (dog parks, etc.).
Register Your Business
Why should you register your business? Depending on your local laws, you may actually be required to register your business in order to legally pet-sit. But even in jurisdictions where it isn’t compulsory, there are some advantages to doing so.
The first is that you can do business under a name other than your own. So instead of Martha Swearingen, LLC, you can do business as Baron Bark’s Pet Pampering Service (you can have that one for free).
The default configuration for businesses is a sole proprietorship (or a partnership, if you’re starting it with someone else). This essentially means that you’ve started a business with your own name or, if you file a DBA (Doing Business As), a name of your choice.
Sole proprietorships have the advantage of being cheap and easy to start. Your taxes will also be easier to file (and lower) than they would generally be with other forms of incorporation. Keep in mind, however, that for liability purposes, sole proprietorships and the individuals behind them are essentially one and the same.
Other forms of incorporation will require a bit more work and come with their own advantages and disadvantages. Most pet-sitting companies aren’t going to be interested in forming C-suites for governance, so you can probably ignore S-Corps and C-Corps for now. You may, however, want to consider forming an LLC to provide some separation between your personal finances and liabilities and your business ones.
Here are the most popular ways to incorporate:
Limited Liability Corporations (LLCs): If you’ve seen LLC after a corporation’s name, you’re dealing with this type of company. LLCs offer limited liability protection for their owners without the full complexity of a corporation. Each state has its own rules for how to start and maintain an LLC, and you don’t necessarily have to register your LLC in the state where you’re doing business (although you’ll generally want to). LLC owners report their business earnings and losses on their personal taxes.
C-Corp:Â This is the “basic,” default form of incorporation. Shareholders are considered the owner(s) of the company and receive limited liability protection; however, the business decisions are made by corporate officers who may or may not be shareholders. The corporation is taxed separately and shareholders pay income tax on dividends. To form a C-corp, you’ll file articles of incorporation with your state.
S-Corp:Â S-corps are similar to C-corps in most ways, but come with a few additional restrictions: you have to have fewer than 100 shareholders and they have to all be U.S. citizens or residents. Unlike C-corps, profits and losses are reported on personal taxes, not unlike an LLC. In addition to filing articles of incorporation, you’ll also need to file IRS Form 2553.
Get Business Insurance
As a pet-sitter, you’re not just dealing with property, you’re dealing with animals whose owners often view them as part of their family. In other words, if something goes wrong, things could get ugly.
Depending on your local laws, you may be required to carry certain types of insurance.
The type of insurance that will probably be of most interest to you is general liability insurance. This protects you in the event of a lawsuit or accident, whether it’s an accidental injury to the animal or if you accidentally damage property within a client’s home. It doesn’t only protect you, however; it also makes you look like a safer option than a business that isn’t covered.
There are other, more specialized types of insurance that are worth taking a look at depending on the specifics of your business. These include:
Property Insurance: Protects the property needed to run your business (as opposed to damages you cause to clients’ property).
Business Interruption: Covers costs related to unforeseen events that make your business unable to function.
Professional Liability (Error and Omissions): Covers the costs of defending your company in lawsuits in cases where your business caused a financial loss.
If you aren’t sure where to look, we can help you.
Invest In Business Software
While not absolutely necessary, you can save yourself and your customers some hassle with strategically chosen business software. For pet sitting, there are probably three types most worthy of consideration.
Payment Processing
Doing business with cash can be convenient when you’re first starting out, but as you grow, you’ll probably be missing out on clients if you can’t accommodate other forms of payment.
Recommended Option: Square
Best Overall Mobile POS
Review Visit Site
Highlights
No contract or monthly fee
Instant account setup
Retail upgrade available
Restaurant upgrade available
For iOS and Android mobile devices
2.75% per in-person card swipe
Retail POS:Â Free trial ($60/mo value)
Â
Restaurant POS: Free trial ($60/mo value)
Â
Square POS: Always free
If you have an iOS or Android device, Square offers an extremely convenient way to accept mobile payments while on the go via a small add-on you plug into your device. It’s also a very scalable service; if you’re running a retail location, there are even more features and service options you can take advantage of.
Best of all, there aren’t any monthly fees to worry about. Square charges between 2.75Â – 3.5 percent per transaction (depending on whether you swipe or key in the info), so you’ll want to factor those costs into your expenses.
Scheduling Software
As you add clients, it will get harder to remember their particular preferences, not to mention more difficult to fit them all into your schedule. With booking or scheduling software, you can track your time, note customer needs, and efficiently plan your days’ work. Many of these offer their basic features free of charge.
Accounting Software
Most businesses can benefit from accounting software. What you don’t want is to spend money unnecessarily on one. Wave offers most of the features you need at no cost.
With no monthly fee, you’ll get invoicing, estimates, contact management, expense tracking, accounts payable, and inventory tracking.
Seek Funding
Pet-sitting, especially, if you’re going to your clients, doesn’t have a lot of overhead when you’re first starting out. In the event that you do need to scare up some money to cover starting expenses or equipment, there are a number of options available to you.
Personal Savings
If you can avoid taking on debt, it’s usually a good idea. It may hurt to part with some of your rainy day funds, but you won’t be accumulating expensive interest and fees.
Tap Your Support Network
If you do need money from an outside source, you can often get a better deal from your support system than you can from a private lender.
Keep in mind that this comes with its own risks. You may stress your relationships, especially if you aren’t able to pay back these so-called friendly loans quickly. One way to avoid this is to formalize any agreements you make with friends and family so that everyone fully understands what they’re getting into and what the expectations are. You may even want to draw up a formal contract that outlines any expected payments and return on investment.
Credit Cards
For the relatively low expenses you will encounter when you start a pet-sitting business, credit cards can probably suffice for most of your needs.
The general rules of thumb when it comes to using credit cards effectively are these:
Use credit cards for expenses that you can pay off within their interest-free grace period.
Pick a card with a reward program that matches your spending habits and needs.
Do not take out cash advances on your credit card.
If you follow these rules, you can actually save money by using your credit card to make purchases.
Recommended Option: American Express SimplyCash Plus
SimplyCash Plus Business Credit Card from American Express
Compare
Annual Fee:
$0
Purchase APR:
14.49% – 21.49%, Variable
Required credit: Good, excellent
Bonus offer: None
Purchase intro APR: 0% for the first 9 months
Balance transfer intro APR: N/A
Foreign transaction fee: 2.7%
Rewards:
5% cash back at U.S. office supply stores and on wireless telephone purchases, up to $50,000 per year
3% cash back on a category of your choosing (airfare, hotel rooms, car rentals, gas stations, restaurants, advertising purchases, shipping, or computer hardware, software, and cloud computing), up to $50,000 per year
1% cash back on all other purchases
Notable perks & benefits:
Expanded buying power â buy above your credit limit with no penalty fees
Employee cards available
Extended warranty & purchase protection
Car rental loss & damage insurance
More card details (click to expand)
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Amex’s SimplyCash Plus offers one of the best cash back programs available without an annual fee. You’ll get 1 percent back on generic purchases, 5 percent back on wireless telephone purchases and office supply stores in the U.S. But it’s the middle tier that’s most interesting. You can select a category of your choosing (airfare, hotel rooms, car rentals, gas stations, restaurants, advertising, shipping, or computer hardware) to get 3 percent back.
It also carries an introductory 0% APR for the first nine months, which can be helpful if you’re just starting out.
Recommended Option: Amazon Business Prime American Express Card
Amazon Business Prime American Express Card
Compare
Annual Fee:
$0
Purchase APR:
16.24% â 24.24%, Variable
Required credit: Good, excellent
Bonus offer:Â $125 Amazon.com gift card upon approval (if you have an eligible Amazon Prime membership)
Purchase intro APR:Â N/A
Balance transfer intro APR: N/A
Foreign transaction fee:Â None
Rewards:
If you have an eligible Amazon Prime membership:Â 5% back or an extra 90 days interest free on purchases at Amazon Business, AWS, Amazon.com and Whole Foods Market
If you do not have an eligible Amazon Prime membership: 3% back or an extra 60 days interest free on purchases at Amazon Business, AWS, Amazon.com and Whole Foods Market
2% back on purchases at U.S. restaurants, U.S. gas stations, and on wireless telephone services purchased directly from U.S. service providers
1% back on other purchases
Notable perks & benefits:
Employee cards available
Employee purchase control with multi-user accounts, shared payment methods, approval workflows, and spending limits
Purchase protection, extended warranty, and travel coverage
Access to Amex Offers
More card details (click to expand)
Hide
This one’s a little more niche. But if you find yourself buying supplies and random pet-related doodads on Amazon frequently, you can get a lot of value out of the Amazon Business Prime American Express Card.
If you have a Prime membership, you’ll earn a whopping 5 percent back on purchases made at Amazon.com, Amazon Business, AWS, and Whole Foods Market — or an extra 90 days interest-free grace period for purchases made at those places. Even if you’re not a Prime member, you’ll get 3 percent or 60 days, respectively. You’ll need to spend around $6,000 to recoup the cost of a $119 Prime membership with points alone, but that’s without factoring in money saved through Prime’s programs (shipping, deals, etc).
Personal Loans
If you need more money than you can safely put on a credit card, or need longer to pay it off, you should consider getting a personal loan that can cover business expenses.
There are some disadvantages to taking this route, namely that you’re on the hook rather than your business, but if your credit is good, it’s not the worst option out there.
Recommended Option: Lending Club Personal Loans
Review
Check Rate
Time in business: N/A
Business revenue: N/A
Personal credit score: 600
Credit history: 3 years
Borrower requirements for personal loans (click to expand)
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Lending Club is a good option for individuals who may not have the strongest credit, but have a good debt-to-income ratio. The borrowing range is fairly narrow at $1k to $40k, but when you’re just starting out, you don’t want to go too deeply into debt anyway. You’ll have three-to-five years to pay it off, which makes it fairly manageable.
Recommended Option: Lendio
Review
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Time in business: 6 months
Business revenue: $10,000 per month
Personal credit score: 550
Borrower requirements (click to expand)
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If you’re just entering the alternative loan market for the first time, it can be pretty overwhelming. Lendio takes some of that burden off of you by allowing you to effectively apply to their whole network of lenders with one application.
Need more options? Check out our feature on startup loans.
Create Contracts
If you’ve just been watching your friends’ pets, you’ve probably had an informal agreement about the services you’d provide and the expectations of safety and liability involved. And that was probably enough.
When you’re dealing with strangers in a professional capacity, however, it’s smart to formalize these elements in a contract. This can save you a lot of headaches, if not legal troubles, down the road. You’ll want to include critical information about the pet (when and what they eat, how they are with strangers, pertinent medical history, etc.), what’s included in your services, and the client’s expectations for how their home will be treated under your care (if applicable). You’ll also want to include your fees and rates.
If you can, have a lawyer look it over to make sure it checks out legally.
Market Your Business
Getting the word out is always one of the most challenging parts of getting a business off the ground. The easiest place to start is through word of mouth. Are you already looking after the pets of a family or two? Let them know you’re looking to take on more clients, along with your friends, family, and social contacts.
At some point, you’ll probably want to expand outside the reach of your current contacts, which means advertising. It doesn’t have to be fancy. You can post flyers on bulletin boards and leave business cards in places trafficked by pet owners. Online classified sites like Craigslist can also cover a large audience in your area.
Bolster Your Web Presence
When it comes to promoting small business, the internet is one of those things that’s easy to both over- and underestimate. On the one hand, simply buying an ad and hoping for the best likely won’t yield amazing results. On the other, you do need an internet strategy to grow your business.
It doesn’t have to be fancy, but you’ll probably want a website that details your basic services and contact information. Don’t overthink it. There are a lot of great tools available that can help you build a website.
Remember, too, that social media isn’t just for sharing pictures of your dinner with your friends. You can use to communicate with customers, make engaging content that makes them keep your brand in mind, and announce special deals and service changes.
Final Thoughts
Hopefully, everything we covered doesn’t look too intimidating. If you’re good with animals and don’t mind turning that love into a source of revenue, you can get a pet-sitting business up and running in no time!
Having second thoughts about pet-sitting but are still looking to open a business? Check out our other beginners’ guides.
The post How To Start A Pet Sitting Business: The Complete Guide appeared first on Merchant Maverick.
If you’ve arrived at our comparison of Shopify and Etsy, I’m guessing you’re an online seller (or an aspiring one) of the “artsy” or “craftsy” variety. Perhaps even “artsy-craftsy.” Whichever identifier you prefer, you’ll be pleased to know that both Shopify and Etsy can help you sell all sorts of unique, handcrafted, and/or vintage items.
I’ll admit that in some respects, it’s a little unfair to compare Shopify and Etsy head-to-head. Shopify is a shopping cart platform/website builder you can use to create and manage your own, standalone ecommerce store. The Shopify brand itself operates almost completely in the background from your shoppers’ point of view. (If you build your store correctly, no one will know that it’s really powered by Shopify.)
By contrast, Etsy is an online marketplace that allows you to set up shop directly alongside other ecommerce vendors, all with a similar artsy and/or craftsy vibe. All the while, Etsy’s involvement in the whole operation is directly front and center for your shoppers.
You could also argue that a direct comparison between Shopify and Etsy is quite fair and appropriate. People often wonder 1) which of the two software platforms provides the best starting place to sell online, 2) under what circumstances it makes sense to use one or the other (or both), and 3) at what point a seller might need to transition from Etsy to Shopify.
Plus, the introduction of Pattern by Etsy a few years ago made the comparison between Shopify and Etsy even more apropos. For a monthly fee, Pattern makes it possible for Etsy sellers to maintain a standalone, inventory-synced site of their own. Sites built with Pattern can even offer additional products and services that don’t meet the handmade/vintage/craft supply restrictions of normal Etsy shops.
Pattern aside, a huge draw of Etsy in its original form is the built-in traffic and existing customer base from which you can directly benefit as a seller. (You don’t get that with a standalone Pattern site.) The downside, of course, is that you must share your customers with similar stores.
So, with Pattern thrown in, can Etsy compete directly with Shopify? Does the magic combination of Etsy and Pattern render Shopify completely unnecessary for some Etsy-type sellers? You can already tell from our chart at the top of this article that we are still fans of Shopify, but we think all sellers should understand precisely how these two services stack up on all the important dimensions. Ultimately, the right fit is up to you.
Shopify’s eCommerce Options
Mobile
POS
Online
Social Media
Mobile App + Free Card Reader
Point of Sale
Online Store
Social Media Selling
Get Started
Get Started
Get Started
Get Started
Low-cost POS for iOS and Android with free hardware
All-purpose POS integrated with all sales channels
Build a store or integrate with your current website
Sell on Facebook and other platforms
Starts at $9/month
Starts at $29/month
Starts at $29/month
Starts at $9/month
Free Trial
Free Trial
Free Trial
Free Trial
Pricing
Winner: Tie
Despite some overlap, there’s no getting around the fact that Shopify and Etsy have very different pricing structures. The differences are significant enough that we can’t call a clear winner for cost.
Here’s a very generalized way to compare the two:
Sellers who are just getting started, are very concerned about cash-flow, and simply can’t afford a monthly subscription fee will find an initially cheaper option in Etsy.
Once you have a moderate and fairly predictable stream of transactions and need a full website for your store, Shopify starts to become more cost-effective.
That’s the condensed version of our pricing comparison. For the full breakdown, strap in and keep reading!
When comparing these two platforms, you should first wrap your mind around the main categories of fees involved. It will also help to keep the following overarching difference in mind: Shopify’s main charge is a monthly fee for using the service, while the main component of Etsy’s cost is a fixed 5% transaction fee charged on every sale that occurs on the platform.
Here are the different categories of costs you should keep in mind when comparing Shopify and Etsy:
Monthly Fee: Subscription fee for using the platform.
Listing Fee: Cost of listing a product (or group of products that make up one listing) in your shop.
Transaction Fee:Â Percentage commission per sale charged by Etsy or Shopify itself.
Payment Processing Fee: Not the same as a transaction fee! This is a per-sale fee (usually a percentage and a dollar amount) charged by your credit card processor/payment gateway. While this entity is usually a third-party company, it turns out both Etsy and Shopify have an in-house, pre-integrated option that most sellers use (Etsy Payments and Shopify Payments, respectively).
Standalone Website:Â Cost of having your own, hosted website with a customizable theme template.
Let’s take a close look at the numbers, shall we? All prices will be shown in USD.
Shopify Pricing
Shopify plans have a monthly fee, no listing fee, and a variable transaction fee that only comes into play if you do not use Shopify Payments as your credit card processor. Starting at the $29/month level, you get your own store website. This involves choosing a free Shopify template or purchasing a premium template from the Shopify theme store. As you look through Shopify’s five pricing plans, remember that you can completely avoid Shopify’s extra transaction fee if you use Shopify Payments as your credit card processor.
Shopify Lite PlanÂ
Monthly Fee: $9/mo.
Transaction Fee:
If Using Shopify Payments: None
If Using External Gateway: 2.0%
Payment Processing Fee (Online)
Shopify Payments: 2.9% + $0.30
External Gateway:Â Varies
Standalone Website: Unavailable. Sell on an existing website, Facebook, or in-person only.
Basic Shopify Plan
Monthly Fee: $29/mo.
Transaction Fee:
If Using Shopify Payments: None
If Using External Gateway: 2.0%
Payment Processing Fee (Online):
Shopify Payments: 2.9% + $0.30
External Gateway:Â Varies
Standalone Website: Included. Templates are $0-$180/ea.
Shopify Plan
Monthly Fee: $79/mo.
Transaction Fee:
If Using Shopify Payments: None
If Using External Gateway: 1.0%
Payment Processing Fee (Online):
Shopify Payments: 2.6% + $0.30
External Gateway:Â Varies
Standalone Website: Included. Templates are $0-$180/ea.
Advanced Shopify Plan
Monthly fee: $299/mo.
Transaction Fee:
If Using Shopify Payments: None
If Using External Gateway: 0.5%
Payment Processing Fee (Online):
Shopify Payments: 2.4% + $0.30
External Gateway:Â Varies
Standalone Website: Included. Templates are $0-$180/ea.
Shopify Plus: Custom pricing. Reserved for enterprise-level customers.
With each bump in subscription level, Shopify sellers have access to additional features, as well as more staff accounts for their stores. Check out our full Shopify review, or our quick guide to Shopify pricing, for a more complete breakdown of features by plan.
Basic
Shopify
Advanced
Monthly
$29.00/mo
$79.00/mo.
$299.00/mo.
Yearly
$26.10/mo.
$71.10/mo.
$269.10/mo.
2 Years
$23.20/mo.
$63.20/mo.
$239.20/mo.
3 Years
Same as above
Same as above
Same as above
Etsy Pricing
Etsy has two main plans — Standard and Plus — and a Premium plan that will launch sometime in 2019. Most Etsy sellers use the Standard plan with no monthly fee, whereas the Plus plan is $10/month. Other components of Etsy’s cost include a fixed listing fee, as well as 5% transaction fee on every sale. There is no avoiding this 5% fee, even when you use Etsy Payments as your credit card processor.
Also, keep in mind that your only web presence is your shop page within the Etsy marketplace. If you’d like your own store website separate from (but synced to) your Etsy shop, you can create and maintain a Pattern site for an additional $15/month.
Here are the plans:
Etsy Standard
Listing Fee: $0.20/ea.
Lasts 4 months
Charged when listing is first published or when renewed
Standalone Website: None, or $15/month with Pattern. Pattern site templates are free.
Etsy Plus
Monthly Fee: $10/mo.
Other Costs Same As Above
Additional Features:
A monthly budget of credits for listings and Promoted listings ads
Access to a discount on a custom web address for your Etsy shop
Restock requests for shoppers interested in your items that have sold out
Advanced shop customization options
Access to discounts on custom packaging and promotional material like boxes, business cards, and signage
Etsy Premium
Launching 2019
Will include premium customer support and advanced management tools for businesses with employees
One final note about pricing before we sum up this section: if you want a standalone site built on Pattern, you’ll also need to purchase and/or connect a domain name. The annual cost varies, but should be comparable to purchasing a domain for a Shopify store. Of course, if you stick to just selling on Etsy and not on Pattern, you don’t need your own domain URL.
Again, this is one of those comparisons you’ll have to decide the winner of for yourself. You can see that once you have a steady flow of significantly-sized transactions, avoiding that 5% Etsy fee on every sale and ponying up $29/month for Shopify instead (and using Shopify Payments to have the Shopify transaction fee waived) starts to make more sense.
Hosting
Winner: Tie
Shopify and Etsy stores are both fully-hosted solutions based in the cloud. You don’t need to download or install anything to use either. If you create an Etsy-connected website using Pattern, your site’s hosting is covered by your $15/month Pattern subscription. Similarly, Shopify store hosting is covered by the monthly fee.
Specific Size Of Business
Winner: Shopify
Shopify deserves the win in this category for accommodating a much wider range of business sizes. For just $9/month, you can start selling on Facebook with no additional transaction fees (beyond payment processing itself) if you use Shopify Payments. From there, Shopify scales all the way up to enterprise-level merchants. Etsy, on the other hand, is better geared toward small to mid-sized operations and doesn’t scale nearly as well. That said, for those who just want to test the ecommerce waters and dabble in selling a few handmade or vintage products, Etsy is ideal.
Hardware & Software Requirements
Winner: Tie
No special hardware or software is required to open and manage a shop on either platform. You do have the option to add hardware (like card readers) if you wish to sell in-person.
Ease Of Use
Winner: Etsy
Shopify usually earns our top rating for ease of use in the ecommerce software category, and with good reason. In this case, however, I’m awarding Etsy the narrow win. As a marketplace with a uniform structure across all web shops on the platform, the whole Etsy setup process is much less open-ended, so it’s easier to start selling right away. Once you fully dive into the admin dashboard and start manipulating individual features, however, I think the two platforms are equally easy to use.
Let’s peek inside the setup process and backend structure of each system, so you can see what I mean.
Shopify Setup
Shopify offers a two-week free trial of the platform — all you need is an email address. You’re free to test the software to your heart’s content, short of making actual sales.
Shopify Dashboard
Once you’ve started a trial account, you’ll gain immediate access to your store’s admin panel. The Shopify dashboard is quite streamlined, with daily operation menus contained in the left sidebar. There are even a few tips to get started setting up your store in the center area:
Shopify — Add A Product
Listing your first product is typically one of the first tasks inside Shopify, but it doesn’t have to be. Adding a product involves completing a simple interface:
In addition to configuring products and setting up the rest of the backend of your store, you can work on customizing your online storefront at the same time. We’ll have more on this process in the Web Design section.
While Shopify is easy to use, you are ultimately responsible for locating and configuring all the settings (shipping, tax, billing, etc.) to get your store going.
Etsy Setup
The cookie-cutter look of Etsy shops is no accident — it’s achieved through a simple, highly-controlled system behind the scenes. In fact, Etsy guides your hand to such a strong extent that by the time you’re taken through the basic setup process, you already have a store that’s up and running.
Unfortunately, there is no free trial of Etsy. Instead, you must enter a product, your bank account routing number, your credit card info, and other personal/business details before you can even enter the admin dashboard. Coming from the land of ecommerce software where no-credit-card-required free trials abound, I find this system annoying. However, I can’t deny that it is also very effective.
From my personal Etsy account, I’ve used to make Etsy purchases in the past, I simply clicked “Sell on Etsy.” I was then taken through a very detailed setup wizard, all the way from setting my country, to listing my first product, to inputting my billing and payment methods. As you can see from the dots across the top of the wizard interface, it’s a five-step process:
Etsy Dashboard
When you finally make it to the main admin panel (called Store Manager), you’ll find it’s actually fairly similar to Shopify. In my own testing, I could find all the menus and features I was looking for in the left sidebar:
Etsy — Add A Product
The most detailed piece of the store setup wizard is step three: adding products (a.k.a, listings). As I mentioned, you’re forced to list at least one item before you can even complete the Etsy signup process and see your main dashboard. Below is the third screen from the setup wizard. Yep, it’s long. Click it to enlarge, if you dare.
This may seem like a lot of work, and it kind of is. Mercifully, Etsy makes it all extremely straightforward. You just need a touch of patience. As part of this process, you’re actually also setting up a shipping profile that can then be reapplied to other products. And, once you choose the type of product you’re selling, Etsy is very good about predicting the type of attributes and variations you might need for that product. I walked away from the processing thinking, “Wow, Etsy knows its sellers and their products really well.”
Side note: Once you finally make it to your dashboard, you can load additional products with a similar interface:
As soon as I was (finally)Â done with the initial setup wizard, my shop was online and ready to sell. I received so much guidance steering me directly to the goal that I almost felt like I was tricked into suddenly having an active store. In a good way, I guess!
I’ve focused on getting a store up and running in this section as an illustrative example — there are lots of other components of each platform to consider. As you’ll see in our Feature section below, though, Etsy has fewer features than Shopify overall. This makes it easier to quickly get a handle on the entire software platform’s capabilities and scores Etsy another point for user-friendliness. Still, the ease of going from zero to ready-to-sell is what really puts Etsy on top.
Features
Winner: Shopify
Let’s acknowledge right away that comparing the features of Etsy and Shopify is hardly an apples-to-apples endeavor. One is an online marketplace including multiple sellers, while the other is a platform on which to build a website that you ultimately own. Etsy has a specific target market of crafters, vintage resellers, and the like, while Shopify’s merchant pool is much wider. The feature sets of each platform work really well for sellers within their specific contexts. Once we add Etsy’s Pattern to the mix, the comparison gets a little closer, but it’s still slightly unfair to both systems.
I do think the best “features” of Etsy have already been highlighted — it’s very easy to get started selling, and you’ve already got a built-in traffic base. Beyond these important advantages, there’s not a lot you can do on the back or front end of your Etsy and/or Pattern shop that you can’t do with Shopify. And, if the core Shopify platform doesn’t have a specific tool you’re looking for, I can almost guarantee you’ll find a solution in the immense app store (more on that later).
All in all, I’m giving Shopify the win because I think it’s a more advanced system for ecommerce. Shopify adds several features that Etsy and Pattern are missing, like checkout on your own domain (customers are redirected back to Etsy if they purchase through your Pattern site), manual order creation, a built-in POS system, and bulk product import/export/editing. In addition, many of the features the two platforms share in common are more robust or flexible with Shopify (I’m thinking of their respective discount engines, abandoned cart recovery systems, SEO tools, etc.).
Despite their core differences, Shopify and Etsy/Pattern still have a lot of great things in common. Thus, I’d like to end this section with a list of some features both platforms share:
Sell unlimited products
Sell physical or digital products
Free SSL certificate (with Pattern)
Built-in blog (with Pattern)
Social media sharing
Automatically calculate shipping & tax
Purchase/print shipping labels
Shipping discounts
Inventory & order management
Create discounts & coupons
Abandoned cart recovery
Guest checkout
Analytics & reports
SEO tools
Mobile store management app
Web Design
Winner: Shopify
Shopify easily wins this category, even after you throw Etsy’s Pattern software into the mix. Shopify’s frontend template options have Pattern’s beat on all counts — the sheer number of options, the variety of styles, and the overall quality of designs. Not to mention that once you’ve chosen a theme, Shopify gives you much more flexibility to perform further customizations. Allow me to illustrate!
Shopify Design
Shopify offers 70 templates, most with 2-4 style variations. Ten themes are free and supported by Shopify developers, while the remaining third-party themes are offered at $140-$180 as one-time purchases.
I think most of the free themes from Shopify outshine Pattern themes, but we’ll get to Pattern in a moment. For now, you should know that Shopify has tools to adjust fonts and colors (via the Theme Editor), and to drag-and-drop page elements up and down your layout (via the “Sections” tool) — all without touching any code. You can also make further adjustments with code if you have those skills, but this is not necessary for the average user.
Here’s a quick screen-grab of Shopify’s visual, non-coding editor:
For more information on how these tools work, check out our full Shopify Review.
Etsy Design
Your Etsy shop comes with just one design template that’s the same as everyone else’s on the marketplace. You already saw the default store layout that popped up when I initially created my store. In the backend admin panel, you can customize your homepage by adding a banner image, your logo, a featured area to highlight products, an About section, and a few other basic elements. Each piece is fixed in place, though — no drag-and-drop tool to be found. Anywhere there is a little “+”, you can add a specific element:
With the $10/month plan, you have a bit more flexibility in your design. For example, you can insert a rotating image carousel in lieu of a fixed banner image across the top. And yet, there’s still no dragging nor dropping allowed.
If you decide to create a standalone website with the Pattern feature (remember, that’s another $15/month), you can choose from 10 possible templates. Pattern will recommend an option for your shop depending on your current Etsy store, but you can easily swap it out later:
Once you’ve chosen a theme, you have the option to customize your colors, fonts, text, and images — but again, all with pre-defined placement: Here’s the interface after I added a logo and header:
You can also add a few select pages to your site, like an About or Contact page. You just have to be okay with your layout being completely fixed for each page. Even if you wanted to try tweaking the template code, it’s just not an option.
Sorry, Etsy. Shopify has some of the best designs and editing tools of all shopping cart platforms on the market, so I’m not surprised that Etsy is completely overshadowed in this area. Pattern is only ideal for the most basic of websites. Fortunately, it does offer a 30-day free trial of a live site (once you’re already signed up for Etsy) if you’d like to test the site builder for yourself.
Integrations & Add-Ons
Winner: Shopify
Etsy and Shopify each offer a collection of free and paid add-ons to integrate with your shop. The big difference is in the quantity. Etsy’s selection of a couple dozen apps just can’t compete with Shopify’s approximately 2500 offerings. If you’re worried about the quality of these Shopify add-ons, you have access to thousands of user reviews in the app store. You’re likely to find anything and everything you need to expand your store beyond the core Shopify platform.
A large selection is certainly great, but with the important caveat that the vastness of it all could end up becoming too overwhelming, costly, and unnecessary for small sellers. I was happy to see that Etsy at least offers a few well-known accounting and tax integrations (e.g., Quickbooks, Wave, TaxJar, TaxCloud) and email marketing apps (e.g. AWeber, or MailChimp if you use Pattern). You’ll need to decide if you will ultimately need the store expansion capability that Shopify provides, or can settle for Etsy’s offerings. If you set up a Pattern store, you’ll definitely want to add a good SEO integration.
Payment Processing
Winner: Shopify
Payment processing is a complicated and nuanced topic, so we’ll just cover some basic comparisons. Your mileage on this verdict in favor of Shopify will vary depending on your location, currencies, risk level, etc.
We’ve already mentioned that Shopify and Etsy both have their own self-branded payment gateways. Do note that Shopify Payments is actually built on Stripe’s infrastructure, while Etsy Payments is largely powered by Adyen, another big payment gateway company.
At any rate, most sellers on either platform end up using these pre-integrated options. Why? Well, even though you have over 100 processor options with Shopify, recall that you’re penalized with a separate transaction fee (usually 2%) if you don’t pick Shopify Payments. Meanwhile, Etsy Payments (formerly Etsy Direct Checkout) is essentially your only credit card processor option with Etsy. The only reason you wouldn’t use Etsy Payments is if it’s not yet available in your location. If you’re not operating from one of the approximately three dozen approved countries, you can only accept PayPal or manual payment methods (like check or money order) that you arrange separately with your buyers.
Etsy Payments allows you to accept credit and debit cards, Etsy gifts cards and credit, PayPal (pre-integrated), a few bank transfer services, Apple Pay, and Google Pay. Shopify Payments offers similar options but adds Amazon Pay and Shopify Pay to the mix. Meanwhile, Etsy Payments does allow you to accept a few more currencies than Shopify Payments (Danish or Norwegian krone, anyone?).
Below is a quick look at the processing fees for Shopify Payments versus Etsy Payments (shown in USD). As you’ll see, Shopify Payments it the better processing deal, especially as you climb the subscription ladder. Of course, you need to factor this into the larger picture of costs we discussed earlier.
Shopify Payments:
$9 Lite Plan
2.9% + $0.30 Online (including manual entry)
2.7% In-Person
$29 Basic Plan
2.9% + $0.30 Online
2.7%Â In-Person
$79 Shopify Plan
2.6% + $0.30 Online
2.5% In-Person
$299 Advanced Plan
2.4% + $0.30 Online
2.4% In-Person
Etsy Payments:
3% + $0.25 Online
In-Person (with Square integration only):
2.75% Swiped/dipped/NFC
3.5% + $0.15 for manually-entered online transactions
+ $0.20 for any Square product not synced with your Etsy store
An “in-house” payment processor can really streamline this aspect of your business, so it’s nice that both platforms offer one. Neither is a 100% perfect processor for everyone, as you’ll see when we discuss user reviews later. Nevertheless, Shopify Payments comes out ahead because it offers better rates, more payment methods for shoppers, and a native system for in-person transactions. Plus, if Shopify Payments doesn’t work for you, you’ve got plenty of other gateways from which to choose. Not so with Etsy.
Customer Service & Technical Support
Winner: Shopify
This particular contest was closer than I expected. Both platforms offer 24/7 email and phone support, but Shopify adds a third contact channel via 24/7 live chat. That’s really the main reason for Shopify’s win here. I know a lot of online sellers prefer this option over email and phone, since it works like a nice blend of the two. Etsy does offer a callback option when waiting on hold, which is very handy. On the flip side, I’d like to see Etsy’s contact number and ticket system more easily accessed from the help center page — it’s much too buried for my taste at the moment.
While both platforms also offer great self-help resources such as blogs, forums, knowledgebase articles, and videos, the information for Etsy sellers is mixed in with support resources for Etsy shoppers. This can feel a bit cluttered and confusing at times.
I will say that Etsy does go beyond the support of a typical ecommerce platform in a unique and specific way. As a marketplace that gathers lots of merchants together in one place, sellers are automatically part of a built-in community. There’s even an opportunity to join Etsy Teams — groups of sellers in the same location, selling the same types of products, or with other unifying aspects to their stores. Some teams even meet up in real life or organize special events together. While Shopify users can tap into the strong community of developers and merchants offering mutual support in forums, the overall camaraderie can’t compete with Etsy’s community vibe.
You also may have more access to seller protections as part of a marketplace, but this can heavily depend on the specific situation. Etsy aims to look out for its shoppers as well!
User Reviews
Winner: Tie
Because Etsy is a marketplace full of buyers as well as sellers, buyer complaints abound. When something goes wrong with a sale, it’s more accessible and more public for a shopper to point a finger at Etsy than the actual seller, even when the seller was primarily at fault. Shopify mostly operates behind the scenes from a shopper’s point of view, so it’s easier to isolate feedback about the platform that’s specifically from store owners.
For these reasons, Etsy’s reputation on review sites can be skewed quite negatively, so I can’t make a truly fair comparison with Shopify. Nevertheless, I’ve teased out some seller-specific feedback, just so you can get an idea of the common threads that appear.
First, the good. Not surprisingly, Etsy sellers like how easy it is to set up shop. They enjoy access to an existing customer base and the effective site search tools that make it easy for shoppers to find their products. Some users have mentioned their positive experiences with Etsy’s customer service, and the help they’ve received resolving disputes with customers (or even other sellers).
Of course, some Etsy sellers mention bad experiences with customer service, saying the marketplace isn’t taking enough responsibility for regulating seller behavior. I found several complaints that Etsy gets away with being a “neutral” party, shifting blame to its users on either end of transactions. At the very least, people are confused about Etsy’s role.
Other Etsy shop owners contend that the marketplace is too saturated with similar sellers, and that competition is simply too tough to sustain their shops. Still others have issues with payments or chargebacks or claim their shops were suddenly closed without warning. I’ve also seen plenty of sellers lament the increase in Etsy transaction fee from 3.5% to 5% in mid-2018 — that wasn’t so popular.
On the Shopify side, the top accolade is typically its ease of use. Sellers also like the opportunity to add functionality and scale their stores using add-ons from the app store. Shopify’s web design is highly praised, especially among those who appreciate the ability to easily customize their sites without code.
Like with Etsy — and many other large software companies — Shopify’s customer support receives mixed reviews. Other common Shopify complaints include the added cost of integrations and the extra transaction fees if you can’t use Shopify Payments. Sellers do sometimes have problems with the payment system itself as well — their funds were held, or their Shopify Payments accounts were terminated due to various factors.
If that all sounds a bit scary, understand that a lot of the problems that pop up for Etsy and Shopify are common across the ecommerce world. The good news is that the research you’re doing now will help protect you against some of the more avoidable issues!
Security
Winner: Tie
Etsy and Shopify are both PCI complaint systems, offering site-wide SSL certificates for data encryption. If that all sounded like nonsense and jargon, don’t worry. You should know, however, that part of the reason Pattern websites meet security requirements set out by the data regulatory folks is that your shoppers are directed back over to Etsy checkout pages to complete their transactions. This kind of ruins the illusion that your site was actually your own site, but it does at least help with security. With Shopify, your customers can check out directly on your site with the same level of security in place.
Final Verdict
Winner: Shopify
Shopify won this battle handily, coming out ahead in most of our individual comparison categories. And yet, I’ll be the first to admit that the one-sidedness of our comparison does not do the key selling points of Etsy justice. The main advantages to Etsy — the ability to get a shop up and running quickly on a shoestring budget, and built-in access to the traffic of an entire online marketplace — are absolutely huge for beginning sellers. If you’re not ready to go whole-hog into selling online and would prefer to test the waters first, Etsy is definitely the way to start. For first time sellers, it’s akin to setting up your craft booth at an established craft fair, versus plopping your stall on a street corner in the middle of nowhere.
This is all to say that Shopify only really wins if you’re ready to take responsibility for maintaining and drawing traffic to your own website. You’ll need to learn and implement an effective SEO and marketing strategy, for example. This is no small feat for the budding online seller and should not be taken lightly. If done well, however, any customers you obtain are your own, and this is the big reward that accompanies your efforts with Shopify. Your sales and growth will not be limited by super-direct competition with other sellers within a marketplace. You’ll completely sidestep this major downside to Etsy.
When we start talking about actual ecommerce features and web design, Shopify is a more powerful ecommerce tool. Specifically, we’ve seen that Etsy’s Pattern software can’t compete with the standalone storefront-building capabilities of Shopify. For most sellers who are ready to launch their own websites, I’d suggest skipping over Pattern and heading for Shopify. Yes, a Pattern subscription is cheaper than Shopify, but it seems like too much of an intermediate, half-way step that won’t get you fully where you want to go. Besides, there’s no reason you can’t keep your Etsy shop open in the meantime as you grow your Shopify-based store — and, you could ultimately connect an app to sync up your inventory between the two. Etsy could then become one marketing channel of many for your main online store’s top products. Something to consider!
I think if you’ve made it this far, you’re probably ready to at least test the capability of Shopify with a free 14-day trial. Of course, if you’re already an Etsy seller, you can also play around with Pattern’s tools for free before even connecting a domain and going live with your site. Since you’ve got nothing to lose with either platform in that respect, why not set up your own mini-showdown between Pattern and Shopify?
Let us know how it goes in the comments. Happy artsy, craftsy, or artsy-craftsy selling!
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Have you ever looked around your local bar and thought, âI could run a place like thisâ? For many, itâs easy to get caught up in the excitement of potentially opening a bar, but for a select few, this is more than just a fleeting idea. These aspiring entrepreneurs want to make this dream a reality.
Opening your own bar or sports pub seems like a fun and exciting experience. After all, who doesnât love gathering with friends and family to watch the big game with a cold drink in hand and appetizing snacks on the table? Behind-the-scenes, though, itâs a little different. While it may seem exciting to become a small business owner and call the shots, thereâs also a lot of planning and work involved in starting a profitable business.
If opening a little corner pub sounds like a dream come true but you donât know quite where to begin, youâre in the right place. In this article, weâll share our top tips for starting the exhilarating and lucrative path to owning your own bar. Weâll go over what you need to legally open a bar, expenses to start and maintain your business, and the importance of a business plan. Weâll also help you decode one of the biggest pieces of the small business puzzle: getting financing for your new business.
If youâre ready to stop dreaming and start doing, keep reading!
Begin With Branding
One of the first things you need to do before you take off running is to visualize a name, a theme, and an overarching concept for your bar. Do you picture yourself running a neighborhood pub where all of the locals gather? Or maybe youâd rather open a thriving nightclub where young club hoppers from around your city come to dance the night away?
Evaluate your different options, considering the type of patrons youâd like to attract as well as where you plan to open your bar. For example, if you want a younger crowd, a nightclub in a trendy part of town makes sense. If you want to attract an older, more sophisticated crowd, consider opening a wine bar, martini bar, or cigar bar in a thriving downtown area. You could also target sports fans by opening a sports bar or draw in foodies with a new gastropub.
Speaking of your barâs name, it goes without saying that youâll need one. Because itâs your bar, youâre free to name it anything you want. However, you want to make sure that you choose a name that reflects your concept. âJohnâs Neighborhood Barâ may incorporate your name, but it doesnât stand out. When brainstorming ideas, think about the audience you want to bring in and pick a moniker thatâs attention-grabbing — a name that lets customers know what to expect when walking through the doors of your bar.
Find A Location
One of the most important first steps in opening your own bar is choosing a location. There are a few options you have at this stage of the game:
Purchase an existing bar
Start from scratch
Buy a franchise
There are advantages and disadvantages for each option. If you purchase an existing bar, you inherit the existing clientele and may see immediate income. However, you could pay a steep premium if the bar is extremely successful at the time of sale. You may also rack up high costs if the bar doesnât mesh with your vision and you have to pay for renovations.
If you start from scratch, youâll be able to see your vision through from start to finish. However, it may take many months (or even a year or longer) to open your doors, and the costs can really rack up if you have to completely renovate a space or build a new bar from the ground up. With this option, careful planning, budgeting, and at least some knowledge of the bar and restaurant industry are needed for the highest chance of success.
Finally, you could purchase a franchise. This option could shield you from some of the mistakes you’d almost certainly encounter if you attempted to go it alone. However, you wonât be able to fully showcase your creativity with a franchise.
Finding a location takes planning and a dedicated eye on financials. Sure, putting your bar in a trendy and popular neighborhood could help your business become your cityâs next hotspot, but real estate costs may be prohibitively high. Before you put down money on a location, make sure to do your market research and understand the costs.
Create A Business Plan
Every successful business starts with a solid business plan, and a bar is no exception. Not only will your business plan act as a blueprint for starting, operating, and growing your business, but itâs also a necessity if you plan to apply for business loans from a bank or other lender.
No two business plans are exactly alike, but there are some standard sections you should have in yours. This includes:
Executive Summary: Basic information about your business and why it will be a success
Company Details: Specific details about your business
Organizational Chart: Outline of your company structure
Marketing Strategy:Â How will you market your business?
Financial Projections: Show the financial outlook of your business
Your business plan should showcase the goals of your company and serve as a map for you to follow, keeping your business on the right path. Lenders will want to see a business plan that demonstrates thought, intelligence, research, and reasonable plans for success in the future.
Register Your Business
Before you open your bar and begin serving customers, you have to register your business. First things first: register the business’s name with your state. This can be completed via the county clerk’s office in the state where youâll operate.
Next, youâll need to determine your formal legal structure. Do you plan to be a limited liability company or a corporation? Your business structure will determine how much you pay in taxes, what paperwork needs to be filed with the government, and your personal liability. If youâre unsure of which structure is right for your new business, consult with an attorney, accountant, or business counselor.
Your business will also need to be registered with the state revenue office and the Internal Revenue Service. Because your business will have employees, youâll be required to apply for an Employer Identification Number. Youâll also need a sales tax permit.
Finally, youâll be required to obtain the proper licenses and permits to legally operate your business. Because your bar will serve alcohol, a liquor license is required. If your bar serves food, youâll need a license from the health department. You can find out more about the requirements in your area by contacting your state Department of Commerce.
Obtain A Liquor License
In the previous section, we touched on acquiring the right permits and licenses. One of the most important things you need to open a bar — if not the most important thing — is a liquor license. This license makes it legal for you to sell alcohol in your business. This should be a top priority, as getting approval from your stateâs Alcohol Beverage Control agency typically takes at least one month. In some cases, it may take up to six months to get approved.
The steps required to obtain your liquor license vary by state. In all states, though, you will be required to fill out an application. You may be required to submit additional documentation with your application, such as a certificate of incorporation, your proposed menu, and the certificate of title for your bar. You may also be required to pay a processing fee.
Once your application is reviewed and approved, youâll have to pay for your license. Fees vary by state and range from a few hundred dollars to several thousand dollars. Your license will last for at least one year, and you must pay a fee when itâs time to renew.
Even though getting your liquor license is a hassle and can get very expensive depending on your state, this is a critical step that canât be overlooked. To learn more about the process, fees, and type of license required for your business, contact your state ABC agency.
Seek Funding
Business licenses. A construction loan or lease. Renovations. You havenât even stocked your bar, and the expenses are already piling up. Unless youâre already a successful entrepreneur with plenty of money in the bank, these expenses may seem completely overwhelming.
Very few small business owners have the resources to launch a business on their own. Instead, they turn to lenders for money to fund startup costs. Even after you launch your business, there will always be a need for more capital, whether an emergency has popped up, you need to expand, or a slow period has affected your day-to-day operations.
Even if your credit history is blemished, youâre a startup with no business history, or you face other challenges, thereâs funding out there if you know where to look. Start with these options.
Personal Savings
Many new business owners have at least a little bit of money put away in their savings accounts. If youâve been socking away pennies for a rainy day, now may be the opportunity to put these savings to use. By using your own money, you wonât be indebted to a lender (or at least not as much). You wonât have to worry about making scheduled payments, and there wonât be interest or fees to worry about. On the downside, if your business is unsuccessful, you lose part — or all — of your savings.
Loans From Friends & Family
If you have a friend or family member with extra money to invest, pitch them your business idea to see if theyâre interested. But be careful! Even though you have a more personal relationship with this person, donât just have a casual conversation asking to borrow funds. Instead, give them your business plan and present your pitch just as you would with a bank or other lender. Show them why you think your business will be a success, and give them a good reason to invest in you.
If you come to a loan agreement, get everything in writing, including the total borrowing amount, rates, and terms of the loan. Put your personal relationship aside and make sure you follow all terms of the loans just as a responsible borrower should.
Personal Loans For Business
Getting a startup loan from a bank or other lender can be tough. Sure, there are options, such as Small Business Administration loans, but these loans can be very difficult to receive — especially if you have a short time in business or low annual revenue. However, if you have a solid personal credit profile, more low-cost loan options are available to you.
Instead of going directly for a business loan, try applying for a personal loan for business. With a business loan, lenders consider your time in business, personal and business credit histories, and annual revenues. But with a personal loan, your personal credit score and income are used to determine if you qualify.
By going this route, you may be able to avoid many of the high fees and interest rates of alternative business loans. Depending on your credit history and the lender you select, your cost of borrowing could be much lower with a long-term, low-interest personal loan.
Recommended Option: Upstart
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Time in business: N/A
Personal credit score: Minimum 620
Business revenue: N/A
Borrower requirements (click to expand)
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You may qualify to receive a personal loan of between $1,000 and $50,000 through Upstart. These loans have competitive interest rates starting at 7.74% and going up to 35.99% based on your creditworthiness. Repayment terms of 36 or 60 months are available. The application process is quick, easy, and completely online.
To qualify for an Upstart personal loan, you must meet a few basic requirements, including having a valid email address, verifiable personal information, a source of income, and a U.S. checking account. You also have to meet the lenderâs credit requirements, which include:
A credit score of 620 or above OR 580 or above for California residents
A solid debt-to-income ratio
No bankruptcies or public records
No delinquent accounts or accounts in collections
6 or fewer inquiries on your credit report over the last 6 months
Lines Of Credit
A more traditional financing option is a flexible line of credit. The one drawback with a line of credit is that business performance is typically a qualifying factor. If you havenât made any sales, you wonât qualify, so this isnât a good financial option if youâre not in business yet.
As you build your business, though, a line of credit can be very useful. It can be used to purchase supplies, inventory, or cover that emergency that pops up when you least expect it. You can also use your line of credit to cover payroll or daily operational expenses.
When you receive a line of credit, a lender provides you with a credit limit. You can make as many draws as you need against the line of credit up to and including the credit limit. Once you initiate a draw, the lender will transfer the money directly to your bank account, giving you access to the money you need. Over time, youâll make payments that are applied to the principal (the amount youâve borrowed) and any fees and/or interest charged by the lender.
A line of credit is a revolving account, so as you repay the lender, money becomes available to draw again.
Recommended Option: Fundbox
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No time in business requirements, but must have used a compatible accounting or invoicing software for at least 2 months, or a compatible business bank account for at least 3 months.
Business revenue: $50,000 per year
No specific personal credit score requirement
Borrower requirements (click to expand)
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You may qualify to receive a line of credit of up to $100,000 through Fundbox. Fundbox lines of credit have no restrictions and can be used to cover any business expense. Once approved, youâll be eligible to make draws immediately and receive funds as quickly as the next business day.
The Fundbox application process takes just minutes, and itâs easy to qualify. The lender focuses on the performance of your business — not your business or personal credit history — so even borrowers with credit challenges can qualify. You do, however, have to meet the following requirements:
Own a U.S.-based business
Have a business checking account
At least 3 months of transactions in your business bank account or at least 2 months of activity in a supported accounting software
At least $50,000 in annual revenue
Once you make a draw on your line of credit, automatic drafts are made weekly from your linked business checking account. If you do not use your funds, you do not pay. Repayment terms are 12 or 24 weeks and fees start at 4.66% of the total borrowing amount.
Business Credit Cards
Business credit cards work just like the personal credit cards in your wallet, only theyâre used to pay business expenses. Business credit cards are great for emergency expenses or any time your cash flow is a little short. You can also make recurring payments, such as your utility bills, using a business credit card. This is especially beneficial if you have a rewards card that gives you cash back or other rewards simply for making qualified purchases.
When you apply for a credit card, your lender will set a credit limit if youâre approved. You may spend up to and including this credit limit with one or multiple transactions anywhere credit cards are accepted. Each month, youâll make a payment that is applied to the principal, interest, and fees charged by the lender. As you pay down your balance, funds will become available to use again. If you donât have a balance, you wonât pay any interest, although you may have to pay annual fees depending on the card you select.
Recommended Option: Chase Ink Business Unlimited
Chase Ink Business Unlimited
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Annual Fee:
$0
Purchase APR:
15.49% – 21.49%, Variable
Required credit: Good, excellent
Bonus offer: $500 cash back if you spend at least $3,000 on purchases in the first 3 months
Purchase intro APR: 0% for the first 12 months
Balance transfer intro APR: 0% for the first 12 months
Foreign transaction fee: 3%
Rewards:Â
Unlimited 1.5% cash back rewards on all purchases
Notable perks & benefits:
Employee cards at no additional cost
Travel and purchase coverage
More card details (click to expand)
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If you have an excellent credit score of at least 740, you may qualify for the Chase Ink Business Unlimited credit card. This is a rewards card that provides you with unlimited 1.5% cash back on all purchases made for your business. As a new cardholder, you will also be eligible to receive a $500 cash back bonus if you spend $3,000 within 3 months of opening your account.
The Chase Ink Business Unlimited card comes with a 0% introductory APR for purchases and balance transfers for the first 12 months. After the introductory period, the card has a variable APR of 15.49% to 21.49%. This card comes with no annual fee. You can also receive additional cards for employees at no extra cost.
Rollover For Business Startups (ROBS)
Do you have a retirement account? If so, you can legally leverage these funds to pay your startup costs without facing tax or early withdrawal penalties. With a Rollover for Business Startups (ROBS) plan, you can put your retirement account to work for your new business.
It’s possible to access your retirement account funds with no penalties in just a few easy steps. First, create a new C-corporation. Next, create a qualified retirement plan for the corporation. Then, the funds from your qualified retirement account are rolled over into the new retirement plan. Finally, the funds that were rolled over can be used to purchase stock in the corporation, giving you access to the capital you need to start or grow your business.
Throughout the process, you do have to remain compliant and follow legal guidelines. For most new business owners, the process can get confusing, which is why ROBS providers are available to help. A ROBS provider will set up your ROBS plan to ensure everything is by the book. To get started, youâll need to pay a setup fee, then pay a monthly maintenance fee for maintaining your account.
The great thing about ROBS plans is that you are using your own money, so you wonât have to pay interest on a loan. You will, however, have to pay a monthly fee to maintain your account. You also risk losing your retirement funds if your business is unsuccessful.
Recommended Option: Benetrends
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Varies based on the type of financing you seek.
Must have a personal credit score of 660 or above.
Borrower requirements (click to expand)
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Benetrends is a pioneer of ROBS, launching its Rainmaker Plan in the 1980s. This visionary-plan is the longest-running ROBS plan, and Benetrends offers many benefits that outshine its competitors.
With just four easy steps, Benetrends can get the capital you need from your qualified retirement plan. With the Rainmaker Plan, you can have your funding is as little as 10 days.
To qualify, you must have an eligible retirement plan with at least $50,000. Most retirement plans are eligible, with the exception of Roth IRAs, 457 plans for non-governmental agencies, and distribution of death benefits from an IRA other than to the spouse. There are no time in business, annual revenue, or personal credit score requirements.
To get started with Benetrends, youâll be required to pay a setup fee of $4,995. After paying this fee, your C-corporation and ROBS plan will be set up. After your plan is set up, youâll be required to pay a monthly maintenance fee of $130. This fee covers ongoing support and services including legal support, audit protection, and compliance.
Purchase Financing
Paying your vendors will be an ongoing expense for your business. You have multiple options available to pay your vendors. You can pay out-of-pocket, you can use a credit card or line of credit, or you can take advantage of purchase financing.
With this type of financing, your vendors are paid immediately, while you get more time to pay. A lender pays your vendors up front, then you repay the lender over a set period of time. The lender will add fees and/or interest to your loan balance for paying your expenses upfront.
By using purchase financing, youâre able to pay your vendors immediately to receive the supplies, inventory, or services you need for your bar. Then, you can spread out your payments over time to make these purchases more affordable for your business.
Recommended Option: Behalf
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No specific time in business, revenue, or credit score requirements.
Borrower requirements (click to expand)
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Behalf offers purchase financing of up to $50,000 for qualified borrowers. Repayment terms of up to 180 days are available. Behalf charges fees of 1% to 3% of the borrowed amount per month for using this service. There are no additional fees. You can repay on a weekly or monthly schedule.
Behalfâs financing can be used to pay merchants for inventory or services. However, there are some restrictions. You canât pay bills, cover payroll, or pay other existing debt through Behalf.
Behalf analyzes the performance of your business when making its approval decisions. There are no time in business or business revenue requirements. Behalf does not have a minimum personal credit score for approval, although your credit history will be considered during the application process.
Create Your Menu
Before you open your bar, you need to know what food and drinks you plan to serve and what equipment is needed to properly prepare each menu item.
When planning your menu, think about your theme and the type of customers you plan to attract while also keeping your budget in mind.
Decide what type of drinks youâll serve. Most bars serve a variety of wines, beers, liquors, and mixed drinks, but what you serve may be different based on the theme of your bar. For example, in a sports bar, your drink menu may feature a wide selection of beers. If you open a nightclub, you want to have a variety of liquors and mixers on hand to create many different types of drinks. If you have a cigar bar, wines and craft beers may make up the bulk of your menu. Again, the type of bar you want, the theme, and your target audience can help you determine what you serve.
If your bar will serve food, think about the types of food youâll serve. In a neighborhood bar, appetizers like fried cheese sticks or nachos may be enough to keep your customers happy. If you have a gastropub, meals made with high-quality ingredients should make up your menu. Remember, creating the perfect menu takes careful planning, so take the time to brainstorm your ideas.
Itâs also wise to start off small and add new items as your business grows. If you have a huge menu that features every type of food and beverage you could think of, your bar will require more equipment. More equipment equals more expenses. Working with a smaller menu can also ensure that your bartenders and kitchen staff arenât overwhelmed and can focus on creating high-quality food and drinks. As you draw in customers to your bar, you can tweak your menu based on what customers are ordering, what gets rave reviews, and what falls flat.
Once youâve determined what your bar will be serving, youâll need to talk with suppliers to get estimates of costs. As you approach opening day, youâll place your order with your selected suppliers.
Still stuck on your menu? Check out our tips for creating a great menu.
Purchase Your Equipment
Once youâve secured a location and have moved further into the process of building your bar, itâs time to think about the equipment and fixtures that you need. What your bar needs depends on the theme youâve selected and what youâll be serving, but some items you may consider include:
Bar & barstools
Benches
Tables & chairs
Industrial ovens & other kitchen equipment
Coolers, refrigerators & ice bins
Blenders & other bar equipment
Big-screen TVs
Sound system
Microphones & other audio equipment
Beer taps
After youâve leased, purchased, or built your building, itâs important to create a detailed layout of your business. You want to ensure that you have enough room for everything required to run your bar, while also leaving enough space for seating, a dance floor, and other features that will be important to your customers. As you grow your business and need to add or update equipment, consider equipment financing to make these expenses more manageable.
Lender
Borrowing Amount
Term
Interest/Factor Rate
Additional Fees
Next Steps
$2K – $5M
Varies
As low as 2%
Varies
Visit Site
$5K – $500K
24 – 72 months
Starts at 5%
Yes
Compare
Up to $250K
1 – 72 months
Starts at 5.49%
Varies
Compare
Select Your POS System
Gone are the days when most businesses just needed a cash register or two for their customers. With the rising use of credit cards, debit cards, and mobile payments, businesses — especially bars — need a more advanced system for accepting payments.
A point of sale (POS) system is one of the most important pieces of equipment youâll need for your new bar. A POS system combines software and hardware to create a centralized point for business operations. Through this system, youâll be able to take orders and accept payments, but thatâs not all.
Some of the most advanced POS systems come with features beneficial to bars. This includes built-in tipping systems, inventory management that allows you to track your stock levels, and an open ticket system for creating bar tabs.
Your POS system plays an important role in your business, so itâs important that you know what to look for before making your purchase. Check out our top picks for POS systems for bars and nightclubs.
Lightspeed Restaurant
ShopKeep
Toast
TouchBistro
Breadcrumb
Lightspeed Restaurant
ShopKeep
Toast
TouchBistro
Breadcrumb POS by Upserve
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Review
Visit SiteÂ
Review
Visit SiteÂ
Review
Visit SiteÂ
Review
CompareÂ
Review
Monthly fee
$69+
Get a quote
$79+
$69+
$99+
Cloud-based or Locally Installed
Cloud-based
Hybrid
Cloud-based
Locally installed
Cloud-based
Compatible credit card processors
Cayan or Mercury in US; iZettle in Europe
Shopkeep Payments & some others;Â contact your processor to see if they are supported
Toast only
TouchBistro Payments, Square, PayPal, Moneris, Cayan, Chase Paymentech & more
Upserve Payments only
Business size
Small to medium
Small to medium
Small to large
Small to medium
Small to large
Hire Employees
To make sure your bar is a success, you need to have the right employees working for you. If you havenât done so already, you need to apply for an Employer Identification Number for tax purposes. Next, you need to determine how many employees you need and what their roles will be in your business.
Youâll need at least one bartender that prepares and serves drinks in your bar. You will need to add additional bartenders based on the number of bar areas you have in your business, as well as the number of customers you have to serve.
If your bar will serve any type of food, you will also need a kitchen staff. This includes at least one cook, but you may also need prep cooks, dishwashers, and other staff as your business grows.
Youâll also need servers to distribute food or pass out drinks to customers not seated at the bar. The number of servers you have is based on the size of your bar and how busy it gets.
While your servers may be able to handle cleaning tables at first, as your business grows, you may want to add a busser or two, who are responsible for cleaning off tables for new customers.
You may also require additional staff. For example, you may hire a doorman that checks IDs before customers enter the door. A security guard may also be a staff member you hire to handle tempers that flare from customers whoâve had one too many.
You also need at least one manager to oversee the staff. A managerâs role may include hiring employees, firing employees, training, making schedules, and making sure that all staff members are doing their jobs properly.
Before you start seeking job applicants, make sure to create an in-house organizational chart to know exactly who you need to hire. You also need to do your research to figure out what salaries you will offer, as well as any benefits.
Unsure of where to hire new employees? You have a few options. First, post a job ad on online job boards or classified ads to find potential employees. This is an inexpensive (or even free) way to find candidates.
You can also ask for referrals. If you know someone in the industry, ask if they have any new hires to recommend. Donât know anyone in the industry? Ask other colleagues, family, and friends for recommendations.
Bolster Your Web Presence
After completing all of these steps, youâll be that much closer to opening your bar. However, you want to make sure to spread the word about your business, and thereâs no better way to do that than with the internet.
One of the easiest ways to get the word out about your business is through social media. Facebook, Instagram, and Twitter are just a few of the ways you can reach your target audience, and Yelp For Business is a must. Best of all, these accounts are free to use. As you grow, you may consider moving past the free advertising you get through your posts and pictures and invest in advertising on these social platforms.
You also need a good website. Keep your barâs theme in mind when you design your site. Make sure that your website reflects the image you want to project. There are many small business website builders you can look into if you want to create your website yourself. These make it easy for you to create a professional website with no prior web design experience required.
Service
Pricing
Hosted or Licensed
Templates & Themes
Compatible Credit Card Processors
Next Steps
$14 – $179/month
Hosted
Excellent
Many
Go to Site
Free – $29.90/month
Web-Hosted
Excellent
Many
Go to Site
Free – $25/month
Web-Hosted
Average
Many
Go to Site
$0/month
Hosted
Good
Square Payments
Go to Site
Make sure that you include your address and phone number on your website. Information about your bar including dress code and hours of operation are also extremely useful for customers. You can also include your menu, photos of your establishment and patrons, and news and updates on your website.
Also, remember that word-of-mouth is one of the best forms of advertising for a bar. If your customers love your drinks, food, service, and atmosphere, theyâll tell others. If they dislike your bar, theyâll also tell others ⦠who will make sure to avoid your establishment. Whether your bar is brand new on the block or youâve been in business for some time, keep customer satisfaction high so that customers online and off will have nothing but positive reviews for your business.
Final Thoughts
As you can see, creating a bar where everyone gathers to have a great time takes a lot of hard work. But just as Theodore Roosevelt said, âNothing in the world is worth having or worth doing unless it means effort, pain, difficulty.â Running your own bar means planning, budgeting, and always being ready for growth. While your bar wonât make you an overnight millionaire, you can become a successful entrepreneur with this potentially-lucrative venture if you put in the work.
The post Want To Open Your Own Bar? Top Tips To Get You Started appeared first on Merchant Maverick.
WooCommerce and Shopify are both wildly popular software systems that can help you build a thriving online store. Behind-the-scenes, however, the two platforms work quite differently from one another. Before we jump into comparing these juggernauts of the ecommerce software realm, let’s quickly get oriented on the basics of each.
At its core, Shopify (read our review) is a SaaS (software as a service) online shopping cart platform. Starting at just $9/month, you can upload products to an online catalog and sell them on Facebook, or post them on an existing website of your own via embeddable “buy” buttons. You can even sell your products in-person with the Shopify POS app. Then, beginning at $29/month, Shopify facilitates the creation and hosting of a fully-fledged ecommerce website.
By contrast, WooCommerce (read our review), is a free and open-source ecommerce shopping cart plugin that was created specifically for installation inside the WordPress dashboard. The WooCommerce plugin turns a WordPress website or blog into an ecommerce storefront. In other words, WooCommerce has no actual website-building capabilities of its own — WordPress handles that part.
To understand WooCommerce and how it works, you need a little familiarity with WordPress itself. To put it simply, WordPress is a website builder/CMS (content management system) that exists in two forms: WordPress.org and WordPress.com. WordPress.org is the self-hosted version, whereas WordPress.com uses the same basic software as WordPress.org, but provides web hosting for your site as part of its services. Either WordPress version can actually be combined with WooCommerce, but each setup has different implications for cost, site maintenance, etc.
For the purposes of our Shopify versus WooCommerce comparison, we’ll focus on combining WooCommerce with WordPress.org, the self-hosted option. Most ecommerce sellers are attracted to WooCommerce because they already use WordPress.org for their websites, and/or they like the WooCommerce plugin’s “free” price tag in conjunction with WordPress.org. While the WooCommerce plugin itself is always free, you can only add plugins to the dot-com version of WordPress if you’re on the $25/month WordPress.com subscription.
Now that you know the basics, we’ll break down the two platforms into their various components — usability, features, comprehensive cost, and more. It’s basically the same old compare-and-contrast essay we were all forced to write in middle school. The stakes are a bit higher with this particular essay, however. By the time we’re done, you’ll hopefully have a good sense of which ecommerce platform (if either) is best for your online business.
Pricing
Winner: WooCommerce
You might be tempted to think WooCommerce immediately takes this category without contest. After all, both the WooCommerce plugin and the WordPress.org software download are free, whereas Shopify automatically involves a monthly subscription. In reality, you need to invest in a few services (e.g., web hosting) to get a WooCommerce + WordPress.org ecommerce store off the ground. The bottom line is, WooCommerce may be a bit cheaper at the outset, but it’s not 100% free. Just wanted to clear that up first!
Before we run a more detailed cost comparison of the two platforms, here’s a quick look at why WooCommerce wins this category:
You can launch an online storefront up for well under $29/month, which is the starting price for a full online store with Shopify.
All WooCommerce features are included with the free plugin. You don’t automatically need to jump to higher subscription levels for additional features or staff accounts (you just may need some add-ons as time goes on). In other words, you pay only for exactly what you need.
Neither WordPress nor WooCommerce charge any additional transaction fees per sale, beyond those charged by your credit card processor. Shopify only waives its extra transaction fees (that start at 2%) if you use Shopify Payments as your credit card processor, and not everyone is eligible for Shopify Payments.
WooCommerce is the budget option of the two, but only if you have the skills to run your own website and don’t need to hire extra help for web development, site maintenance, security, backups, etc. If you do need lots of extra help, you could still end up paying more with WooCommerce + WordPress in the long run. Fair warning.
That’s the summary explanation. Now, here’s a more detailed pricing breakdown if you’re interested:
Shopify Pricing
Monthly Subscription Fee: $9 (no standalone storefront), $29, $79 or $299/month.
Domain: Unless you want your store URLs to end in “myshopify.com” (and you probably don’t), you’ll need to purchase or connect a custom domain. Domains from Shopify start at $11/year, or there are lots of third-party options.
Web Hosting: Included
SSL/TLS Certificate: Included
Additional Transaction Fees:Â 0.5%-2.0% depending on your Shopify subscription — unless you use the in-house payment processor (Shopify Payments), in which case these extra fees are waived. Note: these transaction fees are on top of regular credit card processing fees you must pay per sale with any processor.
Additional Cost:Â Primarily add-ons from the marketplace, and perhaps a one-time purchase of a premium theme.
WooCommerce + WordPress.org Pricing
Monthly Subscription Fee: None if you set up a free WordPress.org site. The WooCommerce plugin itself is always free.
Domain:Â Varies, but can start at less than a dollar per month from third-parties.
Web Hosting:Â Rock-bottom hosting can cost as low as around $3/month, but most people end up paying at least $10 per month, depending on the size and traffic levels of their stores.
SSL/TLS Certificate:Â Often included with your hosting or domain provider, but may need to be purchased separately. Basic certificates cost just a few dollars per month.
Additional Transaction Fees:Â None. Neither WooCommerce or WordPress charge a commission per sale.
Additional Cost: Add-ons, themes, and any web development and ongoing site maintenance if you’re not taking care of all that yourself.
Sample WooCommerce + WordPress.org hosting
Cloud-Based Or Locally-Installed
Winner: Tie
As we’ve mentioned, a major difference between Shopify and WooCommerce is that your Shopify subscription includes web hosting. No downloads or installations are required. To use WooCommerce, however, you first must download the WordPress.org software and install it on a web hosting server. Then, you add the WooCommerce plugin to that setup. Some web hosts do offer preloaded WordPress + WooCommerce packages or “one-click” installations.
Is the Shopify or WooCommerce method better? This one really comes down to personal preference and ability. The self-hosted setup of WooCommerce requires more hands-on involvement and skill from the user, but you may be just fine with that.
Specific Size Of Business
Winner: Tie
Both WooCommerce and Shopify are scalable, working for small to enterprise-level businesses.
Shopify has predetermined subscription brackets. While none of these put hard limits on your revenue, number of products, bandwidth, or storage, the implication is that you’ll increase your subscription as your store grows. The exception is the jump to Shopify Plus, which is required if your revenue reaches over $1 million per year. These plans cost a couple thousand a month to start, but it can be worth the investment in return for a service that’s tailored specifically for enterprise-level merchants.
You will also need to change your Shopify subscription as you add more staff accounts to your store. For example, the $29/month plan accommodates two admin seats in addition to the owner’s account, while the $299/month plan gives you 15 spots.
WooCommerce also has the potential to grow with your store, but the system is much more fluid. You have 100% flexibility to expand your operation (and perhaps employ more help with your site) in a piecemeal fashion, exactly when and how you see fit. As your site traffic increases, for example, you’ll want to adjust your hosting service accordingly to accommodate more bandwidth.
Hardware & Software Requirements
Winner: Shopify
As a fully-hosted, SaaS platform, Shopify takes care of nearly all technology requirements on your behalf. All you really need is an internet connection and an up-to-date web browser.
With WooCommerce and WordPress.org, most of the hardware and software requirements are functions of your hosting environment. Your server needs to support specific versions of PHP and MYSQL, for example. You’re responsible for staying on top of the evolving requirements for both WooCommerce and WordPress.org when you set up a WooCommerce store. This includes installing updates of both the Worpress.org and WooCommerce software as they are released. Plugins are available to help automate some of these steps for you, but you’re still ultimately responsible for finding and updating those plugins!
Because dealing with hardware and software issues with WooCommerce is more nuanced and requires more vigilance from the user than Shopify’s arrangement, we award Shopify the win.
Ease Of Use
Winner: Shopify
It’s hard to beat Shopify in terms of user-friendliness. Even compared with other all-in-one SaaS platforms designed with the complete ecommerce novice in mind, Shopify usually comes out on top. Open-source software like WooCommerce, on the other hand, is not generally known for its ease of use. You’re trading some degree of ease and simplicity for increased flexibility and customization.
It should be noted, however, that WooCommerce actually isn’t all that bad when it comes to ease of use, especially compared with most open-source solutions. For starters, many folks are already somewhat familiar with WordPress, which gives them a head start in navigating WooCommerce. (Keep in mind that the reverse will apply if you’re not already familiar with WordPress — you’ll be learning two systems at once.) Once you get everything installed and up and running, day-to-day operations and manipulation of features are all pretty straightforward with WooCommerce.
WooCommerce offers to install some additional free plugins (like Jetpack and WooCommerce Services) from the get-go that help bring the system more in line with a fully-hosted solution like Shopify, but you still end up with a sort of cobbled-together setup that is more difficult to manage than an all-inclusive platform.
Have a look at our full Shopify and WooCommerce reviews if you’d like more information on the topic of ease-of-use, but I’ve included just a quick peek at the dashboards of each platform, as well as what it’s like to add a product.
Shopify Dashboard:
After signing up for a free 14-day trial, you’re taken to a clean and easy-to-navigate dashboard, with all your major functions in the left menu, and a few tips to get started in the center:
Shopify — Add A Product:
Shopify has a super-simple product interface. All fields are completed simply by scrolling down the page.
WooCommerce Dashboard:
Below I’ve shown a WordPress dashboard with WooCommerce already installed. If you look closely at the left menu, you’ll see that WooCommerce is just one item of many. I haven’t even expanded its own menu yet, nor the “Products” menu right below. In the center of the dashboard, I’m faced with additional suggested configurations and plugin choices. Do I need them all? Should I set them up now? Just “Dismiss?” It’s certainly all doable, but I find it bit cluttered and overwhelming to get started. Plus, this is all after I completed the setup wizard.
WooCommerce — Add A Product:
Once you scroll past the plugin suggestions, adding a product is quite straightforward with WooCommerce. If you’ve ever used WordPress, it’s a lot like creating a blog post. You’ll just need to configure ecommerce settings like price and inventory levels.
Another aspect to consider is that you won’t be able to test WooCommerce (like you can test Shopify with its free trial) unless you have a host and server already set up to install WordPress.org. Ease of use is always a bit subjective, and it’s hard to get a good feel for usability without testing the software yourself.
Features
Winner: Tie
Although one is software-as-a-service and the other is open-source, both Shopify and WooCommerce actually take a similar approach to features. The basic components to get a store launched and managed on a day-to-day basis are included with the software, but you’re expected to add a few extensions and integrations to either platform in order to tailor your store to your exact specifications.
With Shopify, this occasionally even means bumping up your subscription level, whereas with WooCommerce, features are always expanded through separate add-ons. WooCommerce has also been known to test new features by treating them as extensions first, and then eventually incorporating the features into the core offering once all the kinks are worked out by users. It’s really a community effort with Woo.
However you slice it, a common complaint about both platforms is that extra plugins can cause extra cost and extra headaches. Each system is kept as simple (yet functional) as can be from the outset, so that new users are not immediately overwhelmed by all that’s ultimately possible with these powerful software programs.
Let’s do a couple of quick sample feature comparisons. WooCommerce lets you add unlimited product variations, sell digital products, and incorporate product reviews without separate extensions, while Shopify requires (free) add-ons for each of these functions. Meanwhile, Shopify already includes abandoned cart recovery, invoice creation, and pre-integrated shipping software (Shopify Shipping). You’ll need extensions for these features in WooCommerce.
I’m tempted to give Shopify the win because I feel it comes with a slightly more well-rounded ecommerce feature set out-of-the-box without any plugins. And yet I also don’t want to overlook the enormous capability that comes with an entire WordPress.org ecosystem at your fingertips, nor dismiss the potential to customize each feature to your liking in an open-source environment. There are just too many factors at play to declare a clear winner here. The best advice I can give is to check for the features you need, as well as how they are obtained with each platform.
Web Design
Winner: Tie
I know this makes our compare-and-contrast essay less exciting, but it’s difficult to call a winner in this category as well. Each platform has advantages and disadvantages, and your own perception of what actually qualifies as an advantage or disadvantage will differ depending on your situation.
Below is a quick summary of each system’s approach to the design and customization of your storefront, along with some screenshots to help illustrate.
Shopify Overview:
67 total templates, most with 2-4 style variations
10 templates are free and supported by Shopify developers
Remaining third-party themes cost $140-$180
Built-in theme editor with drag-and-drop capability
Additional customization available with HTML, CSS, and Shopify’s own theme coding language (Liquid)
Shopify Theme Marketplace:
Shopify Theme Editor:
The Shopify theme editor consists of two elements: “Theme Settings” (for changing fonts, colors, etc.) and “Sections” (for dragging and dropping widget blocks up and down your pages).
WooCommerce Overview:
Access to thousands of free and commercial/supported WordPress.org themes (over 900 show up when filtering for “ecommerce” in the marketplace)
WooCommerce recommends its free “Storefront” theme for foolproof compatibility and web ticket support
14 Storefront “child” themes available (two free, premium are $39 each)
Theme editor allows color changes and placement of widgets (but without drag-and-drop)
Storefront expansion bundle ($69) allows further customization without coding
Theme modification also possible with HTML and CSS (no proprietary coding language involved)
Add a free plugin (such as Elementor) for drag-and-drop design editing of WordPress.org pages without code
WordPress.org’s new Gutenberg editor provides additional non-coding customization for your overall WordPress site
WooCommerce Storefront Themes:
WooCommerce Theme Editor:
Below, I’ve shown the portion of the built-in theme editor where you can choose widget blocks for various spots within your pages.
So, how do WooCommerce and Shopify stack up when it comes to web design? Does Shopify win for having a drag-and-drop theme editor and font tweaking built-in, or does it lose for making you learn a proprietary coding language if you want to do further template customizations? The new Gutenberg block editor for WordPress enhances your theme editing capabilities without code, and lets you easily place WooCommerce products wherever you’d like within your larger WordPress site — so that’s another factor to consider going forward. It’s issues like these that make this category a toss-up depending on your point of view.
Integrations & Add-Ons
Winner: WooCommerce
Even though I’ve already spoiled the winner of this category, we need to highlight the fact that Shopify also has an amazing app marketplace with around 2500 integrations at your disposal. With Shopify, you have the opportunity to connect with many of the most popular third-party software platforms associated with ecommerce (think shipping, marketing, accounting, and the like). Thousands of developers have invested in creations for the Shopify extension ecosystem. In most ecommerce software battles, Shopify easily wins this category.
All that said, open-source systems like WooCommerce + WordPress.org typically offer more integration possibilities than even the most well-connected SaaS platforms. The whole point of an open-source platform is for users at large to jump head-on into the codebase to customize and build connections. In the open-source world, WordPress has a particularly enormous and active community of developers extending the platform. As a WooCommerce user, not only do you benefit from hundreds of WooCommerce-specific extensions, but also from the over 50,000 plugins available in the WordPress.org marketplace. Even Shopify can’t fully compete.
Some argue that because many WooCommerce integrations are one-time installations, it works out cheaper in the long run, or point out that more WooCommerce plugins are free. In truth, integrations can add to your monthly cost with either Shopify or WooCommerce — especially if your integrations are to third-party software platforms with their own monthly subscription fees (and not just one-off feature installs). Be cognizant of the potential for ballooning add-on costs with either system.
Payment Processing
Winner: WooCommerce
The complete freedom WooCommerce offers to choose a payment processor and associated pricing model that best suits your particular store’s needs is the reason we award the open-source plugin the win in this category.
While Shopify technically offers more pre-built payment integrations than WooCommerce in its respective marketplace, you are actually penalized with an extra 0.5% to 2.0% Shopify commission on every sale if you don’t select the in-house Shopify Payments option. This percentage — 2% for most merchants starting out — is applied on top of the fees charged by your payment gateway itself. Trust me, that extra 2% adds up fast.
Shopify Payments has its own advantages and disadvantages, but for starters, some merchants don’t even qualify to use this processor in the first place. While Shopify Payments definitely works well when it works, a lot of merchants end up stuck in no-man’s land when it comes to payment processing with Shopify. Caught between an extra fee and a hard place, as it were. (Insert your own, better metaphor here.)
While you may need to pay a one-time fee to integrate your favorite processor with WooCommerce (Stripe and PayPal come as free, built-in options), you can ultimately select an option that fits perfectly with your risk level, sales volume, and transaction size. You can also select for any customer support and feature requirements you may have for your payments system.
Customer Service & Technical Support
Winner: Shopify                 Â
Both WooCommerce and WordPress have produced a plethora of self-help resources and documentation. Moreover, both boast thriving communities of developers and merchants working with the software who readily share problem-solving advice via forums. This is all very good and helpful.
WooCommerce can’t compete with Shopify when it comes to personalized support, however. A “help desk” is offered with WooCommerce from which you can submit a web ticket for specific purchased items, but a personal response is not always guaranteed.
Meanwhile, along with great self-help resources and community forums of its own, Shopify offers 24/7 phone, email, and chat avenues for contacting live representatives in real time. This is part of the all-inclusive nature of the Shopify platform, and part of the reason you pay that monthly subscription fee.
Now, this is not to say you couldn’t potentially receive personalized assistance from your hosting provider if your site goes down, for example. The quality and availability of this sort of third-party tech support will vary widely by company, though. Not to mention, things can get complicated very quickly regarding exactly who holds responsibility for whatever’s gone horribly wrong with your online store in the middle of the night. Once again, our point is that neither WooCommerce nor WordPress.org has a team of service reps standing by waiting for your distress call. You’re largely on your own.
User Reviews
Winner: Tie
Shopify and WooCommerce each have devoted followings of satisfied users, and both platforms tend to score very highly on user review websites. Shopify merchants love the user-friendliness of a powerful SaaS platform where most things are taken care of for you, while WooCommerce devotees appreciate that most things are not taken care of for you — it gives these users the flexibility and control they desire.
Of course, neither ecommerce platform is perfect. Here are a few of the complaints that arise most often:
Shopify
Extra transaction fees when not using Shopify Payments
I’m still calling this one a draw. One platform does not dramatically outshine the other when it comes to real user feedback.
Security
Winner: Shopify
Shopify wins this category because all Shopify stores are automatically PCI compliant out-of-the-box and come with a built-in SSL certificate. With WooCommerce, your store’s security falls more directly upon your own shoulders. You’re ultimately responsible for choosing a secure and PCI-compliant web host and payment gateway, obtaining an SSL certificate, performing Woodpress.org and WooCommerce plugin updates, and staying on top of the latest security patches. As WooCommerce reminds you in its own documentation, “a given WooCommerce site is overall exactly as secure as the WordPress installation itself.”
There’s no doubt that a WooCommerce store can be just as secure in as a Shopify store, as long as all the right pieces are in place and carefully managed. There’s just a higher chance for site security to go (horribly) awry due to mismanagement or innocent mistakes.
Final Verdict
Winner: Shopify
This was a tight race, folks. Shopify and WooCommerce have both earned their popularity in the ecommerce world, even if for different reasons and for different segments of online sellers. Based on our experience, as well as our sense of the needs of our Merchant Maverick readership overall, we’re still more likely to recommend Shopify over WooCommerce.
The majority of online sellers will have an easier time with Shopify right out-of-the-box. Shopify is much more “foolproof” and all-inclusive than WooCommerce, with technical aspects like installation, hosting, updates, and security all handled on your behalf. This allows you to expand your focus beyond just building and maintaining your store, even as an absolute web-beginner. The opportunity for 24/7 personalized customer support with Shopify is also a huge factor in our verdict.
All Shopify gushing aside, we firmly maintain that this SaaS platform is not a magic bullet solution for all online merchants, and WooCommerce may be just the alternative you seek. As an open-source software plugin combined with WordPress.org’s vast ecosystem, WooCommerce offers a degree of ownership, control, and flexibility that isn’t possible with Shopify. It’s the perfect platform for the technically-inclined among us who have the time and skill to tinker with code, updates, and integrations to customize their stores at a finely-tuned pace. The freedom to select your own web host, as well as a payment processor that works best for your specific country and risk level without financial penalty (hello, Shopify’s extra transaction fees) is also a big draw for a lot of business owners using WooCommerce. The power truly is in your hands if you go this route.
As the old adage goes, however: with great power comes great responsibility. If you choose an open-source platform like WooCommerce, you should definitely heed this nugget of graphic novel-based wisdom.
Have you worked with Shopify or WooCommerce? Let us know if the comments — particularly if you have experience with both!
The post WooCommerce VS Shopify appeared first on Merchant Maverick.
For many aspiring entrepreneurs, opening a boutique seems like a dream. After all, how many people can say theyâre making the world a little more stylish all while bringing in an income? In the past, boutique owners faced lots of challenges, such as finding retail space and acquiring necessary business licenses, but the internet has made opening a boutique easier than ever.
Of course, it still takes hard work and a little know-how to successfully set up, fund, and operate an online boutique. Whether youâve delved into the world of online business before or youâre new to entrepreneurship, this post is for you. Weâll break down the critical steps to setting up an online boutique, explore how to secure funding for your new business, and give other tips for running your online store. Letâs dive in!
Decide What To Sell
In order for your online boutique to be a success, you have to make sales. Obviously. However, before you can start bringing in money, you need to first decide exactly what your boutique will sell. In other words, you need to find your niche.
It may be tempting to go overboard and carry a little something for everyone. However, especially in the early stages of starting an online boutique, itâs wise to start small and hone in on one particular area. If your focus is on designer clothes, plan to carry only womenâs clothing or only children’s clothing. Or maybe you want your boutique to feature custom jewelry and accessories. In that case, don’t muddy the waters with random sweaters and leggings.
Once youâve got a broad overview of the customers you want to attract, itâs time to narrow down your niche further. For instance, do you want to carry affordable yet trendy styles for the 13-18 crowd, or would you rather sell high-end, classic pieces for professional women? Remember, you want to start small. If your boutique becomes a success and you see a demand for other products, add them. For now, though, take the time to find out whatâs a hit ⦠and whatâs a miss.
Deciding what to sell will not only help you determine what inventory to keep on hand and what products to promote, but it will also help you determine your branding strategy, from the colors you use on your website to the design of your logo.
Create A Business Plan
Whether you operate a traditional retail store or an online boutique, thereâs one thing all businesses need: a good business plan. Think of a business plan as a map of your business, outlining your goals and the steps youâll take to reach those goals. A solid business plan is critical for new businesses seeking financing from investors or traditional lenders like banks and credit unions.
Your business plan should include information such as:
Executive Summary
Company Description
Market Overview
Sales & Marketing Strategy
Operating Plan
Organization & Management Team
Financials
Source Inventory
With your niche selected and your business plan in place, youâre getting closer to opening your boutique. However, before you launch your website and begin to make sales, you have to find and purchase inventory that will be used to stock your online store.
There are a few ways to source inventory. One of the most common ways to source your inventory is by using a wholesaler. Through a wholesaler, you can purchase items in bulk at a reduced rate. Typically, the more you purchase, the more you save. Wholesale suppliers can easily be found in the U.S. and overseas with a quick online search.
Keeping your niche in mind, search online and create a list of possible wholesalers to use for your business. Keep an eye on available items, pricing, minimum order requirements, and shipping costs to determine which wholesaler will be the best partner for your business.
One of the biggest benefits of purchasing from a wholesaler is that you will have more control over shipping your products to customers. Youâll be able to control how products are shipped, as well as the packaging that your customers receive. This offers a better opportunity for branding your business.
However, purchasing your inventory through a wholesaler also has its drawbacks. This option may be more expensive based on minimum purchasing requirements. Packaging and shipping your own items could add on to your expenses. You may also incur additional overhead costs for the storage of your inventory.
If you donât want to work with a wholesaler, dropshipping is another option to consider for your boutique. With dropshipping, a third-party supplier fulfills the orders of your customers. Your customer places an order, the order is manually or automatically sent to your supplier, and the supplier is responsible for packing and shipping the order to your customer.
There are a few drawbacks associated with dropshipping. The supplier or manufacturer handles packaging and shipping, so you wonât be able to personalize the packaging and branding of your shipped orders. You may also encounter some issues with inventory. If you house your own inventory, youâll be able to better account for whatâs in stock. A miscommunication with your dropshipping supplier could result in canceled orders or backorders, which could lead to unsatisfied customers.
Also, you have to consider that if something goes wrong, you are ultimately the face of your brand and you will be liable. If the wrong item is sent or thereâs another issue with an order, this reflects poorly on you, even if itâs the supplierâs fault.
No matter what route you take, itâs important to properly vet any supplier youâre using for your boutique. Request samples to check out the quality of products, find out if youâll have a dedicated contact to reach when there is a problem, and work with reputable businesses with a history of success in their industry.
Register Your Business
Before you start peddling boutique items, youâll need to register your business. For an online boutique, the process isnât too difficult.
Choose Your Business Structure
When you start your business, youâll need to select your business structure. For an online boutique, your best options are to operate as a sole proprietorship or limited liability company (LLC). An individual can operate as a sole proprietorship without having to file paperwork. However, itâs often wise to take a few extra steps to set up an LLC, which will protect you in most cases from being held liable for your business’ debt. You may also opt to operate as a corporation, which may be a good idea if you plan to bring on outside investors.
File State Paperwork
To form an LLC or corporation, youâll file paperwork with the state. For most business owners, this will be the state where you live and the business is formed. Youâll not only file documents within this state but also pay a filing fee, which varies by state.
Take Care Of Finances
Before you start making money, you have to obtain a federal tax ID number from the Internal Revenue Service. If youâre a sole proprietor or single-member LLC, you can use your Social Security Number.
If you donât have one already, you also need to open a business bank account to keep your business finances separate from your personal finances.
Meet Sales Tax & Licensing Requirements
As an online seller, youâll have to collect and pay sales tax for transactions that occur within your state. You can learn more about the requirements in your area by calling your state tax department.
You should also consult with city or county authorities to find out about business license requirements in your area.
Choose An eCommerce Platform
To boost your odds of running a successful online boutique, itâs important to choose the right ecommerce platform. Your shopping cart software serves as a storefront for your customers while also providing you with the backend tools you need to keep your business operating smoothly.
Most entrepreneurs opt for a Software as a Service, or SaaS, platform. The benefits of a SaaS platform is that you donât have to download, host, or install anything on your own server. Instead, you pay a monthly subscription fee that covers hosting and software updates.
There are multiple platforms to choose from, and you can narrow down your choices by considering what factors are most important to you, such as pricing, add-ons and features, ease of use, and design options.
Unsure of which ecommerce platform is right for you? Take a look at our picks for the best ecommerce platforms for your small business.
Shopify
BigCommerce
3dcart
Ecwid
Wix
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Review Visit Site
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Monthly Cost
$9 – $299
$29.95 – $249.95
$19 – $229
Free – $99
$25 – $40
Core Features
Great
Excellent
Excellent
Good
Good
App Store
Very Large
Large
Moderate
Moderate
Small/Moderate
Ease Of Use
Very Easy
Easy
Moderate
Very Easy
Easy
Web Design
Great
Good
Good
OK
Excellent
Customer Support
Great
Great
Good
Good
Good
Build Your Website
What do you think when you walk into a brick-and-mortar store thatâs cluttered and disorganized? Does it make you want to spend hours shopping there, or do you immediately run for the door? The same principle applies to your online boutique. No customer wants to browse a website thatâs a complete mess.
The good news is you donât have to be an experienced web designer to get a professional-looking website. There are plenty of great website builders available online. You can even set up your store in just minutes with your ecommerce software.
Platforms like Shopify have tools that make it easy for anyone to build their online store, even if they have no design experience. With SaaS platforms, you can take advantage of features including drag-and-drop interfaces, mobile optimization, color and font customization, and your choice of store theme.
When building your website, keep in mind your branding and your audience. You want your website to reflect the type of items you sell in your boutique. If you cater to the professional male, a pink floral theme will completely miss the mark.
You want to make sure your website is user-friendly. Categorize your products so theyâre easy to find. Add in high-quality photos of your products and detailed descriptions. In a brick-and-mortar store, customers are able to touch, try on, and inspect items before they purchase. With online shopping, customers have to rely on photos and descriptions to ensure theyâre making the right purchase. Make sure your customers know exactly what theyâre purchasing to keep customer satisfaction high.
Another important step in creating your website is selecting the right domain name. There are a few key points to remember here. First, you want to make sure your company name is front and center. You also want to keep your domain name as short as possible. Avoid adding numbers and hyphens. Keep it simple to make it easier for customers to find you.
When setting up your website, youâll also need to determine how youâll ship your orders. Will you offer only domestic shipping, or will you ship internationally? Do you plan to offer a flat rate, or will you charge by weight? Will customers be able to choose from several shipping options (such as next day), or will you offer just one option?
You also need to set up your payment processor. This allows your customers to pay for the products in their shopping carts. Many ecommerce platforms come equipped with tools for shipping and payments, including shipping calculators, built-in payment processors, and dropship integration.
Finally, make sure that your contact info is prominently featured on your website. If your customers have questions about your products or have a problem with an order, they need a way to get in touch with your business. Include your business phone number, email address, and links to your online boutiqueâs social media websites. You may even consider adding additional features such as a live chat option as your business grows.
Before you go live with your boutique website, test it out. Make sure all links are working and there are no broken images. Hire a proofreader (or take on the job yourself) to make sure there are no typos in your copy or product descriptions. Take the time to make sure your website looks professional and is easy to navigate. Now, itâs time to go live and unveil your boutique to the world!
Secure Funding
Starting an online boutique is more cost-effective than opening a brick-and-mortar store, but it doesnât come without its costs. Sure, you donât have to lease commercial space or purchase a point-of-sale system, but your business will have startup and operational costs.
Unfortunately, as a new online business, youâre going to run into some obstacles when it comes to loans and other financial products. Traditional financing routes like bank loans will be unavailable to you because of time in business and annual revenue requirements. This doesnât mean youâre stuck funding everything out-of-pocket, though. Read on to learn more about the funding options for your online business.
Personal Savings
While you donât have to pay for your startup costs out-of-pocket, you certainly can by tapping your personal savings. By going this route, you donât have to worry about paying interest to a lender or being stuck on a repayment schedule. You also don’t risk going into default if you donât pay back the loan. Using your personal savings isnât without its risks, though. If your business fails, youâve lost your savings.
Friends & Family
Pitch your online boutique to a friend or family member with money to invest in a new business. Just because you know this person, however, doesnât mean that you should just casually ask for money. Instead, prepare your pitch and have your business plan ready. If you decide to move forward with a loan, make sure to have a contract with all details in writing. All parties need to agree to all terms of the contract before signing.
What stands out about this option is that you are able to work out the borrowing amount and repayment terms that work best for you. And, of course, it goes without saying that you treat your friend or family member as you would any other lender by following the terms of the contract and repaying your loan.
ROBS
If you donât want to go the traditional loan route and want to bypass paying interest or making monthly payments, consider a Rollover for Business Startups plan, also known as a ROBS. If you have a qualifying retirement account, you could leverage these funds to finance your startup expenses.
Taking out your retirement savings early could result in financial penalties, but a ROBS offers a way to avoid paying these penalties. A ROBS can help you get the funding you need in just four easy steps:
Create a new C-corporation
Create a qualified retirement plan
Roll over the retirement funds into the new C-corp plan
Access your funds by purchasing stock in the corporation
Using a ROBS to fund your business is legal if done correctly. This is why business owners who choose this type of financing hire a ROBS provider to ensure everything is done by the book. With a ROBS provider, you typically have to pay a setup fee, as well as a monthly maintenance fee.
Be aware: You wonât have to repay a lender or worry about interest charges, but if your business is unsuccessful, you do risk losing your retirement savings. Think carefully before moving forward with this option.
Recommended Option: Benetrends
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Varies based on the type of financing you seek.
Must have a personal credit score of 660 or above.
Borrower requirements (click to expand)
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Benetrends is a ROBS pioneer, launching its innovative Rainmaker Plan in 1983. With this plan, you can cash in on your retirement plan to get the funding you need for your online boutique.
To qualify for a ROBS Rainmaker plan, you must have an eligible retirement account with at least $50,000. Most accounts qualify. However, Roth IRAs, 457 plans for non-governmental agencies, and distribution of death benefits from an IRA other than to the spouse do not qualify. There are no time in business, annual revenue, or credit score requirements.
Because this isnât a loan, there are no interest rates or repayment terms. However, to set up a ROBS Rainmaker plan, a setup fee of $4,995 is required. Youâll also pay a monthly maintenance fee of $130, which covers audit protection, compliance, and other features.
Personal Loans
If you have at least a fair credit score, you may qualify for a personal loan that can be used to cover business expenses. Because this is a personal loan — not a business loan — you wonât have to worry about your business credit score, time in business, and annual revenue requirements. Instead, approval will be based on your personal income, credit score, and credit history.
Recommended Option: Lending Club Personal Loans
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Time in business: N/A
Business revenue: N/A
Personal credit score: 600
Credit history: 3 years
Borrower requirements for personal loans (click to expand)
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Through Lending Club, you can borrow $1,000 to $40,000 with repayment terms of 3 or 5 years. Interest rates start at 5.32% and go up to 30.99% based on your personal credit profile. An origination fee of 1% to 6% of the total borrowing amount is deducted from your loan. No collateral is required to receive a Lending Club personal loan.
To qualify for a Lending Club personal loan, you must:
Be at least 18 years old
Have a solid debt-to-income ratio
Have a credit history of at least 3 years
Have a credit score of 600 or above
You can receive funds as quickly as 3 days after applying. However, there may be delays if additional documentation or information is required during the application process.
Lines Of Credit
As you get your online boutique off the ground, youâll encounter recurring expenses — think web hosting, SaaS subscriptions, and inventory. While your incoming cash flow should cover these expenses, itâs not uncommon to come up a little short. When this happens, having a flexible line of credit in place will give you a financial boost when you need it.
How does a line of credit work? Itâs simple. A lender provides you with a set credit limit, similar to a credit card. When you need additional cash, you can make draws from this credit limit. When you initiate a draw, the money is deducted from your available funds and transferred to your business bank account. With many lenders, you can receive funds as quickly as the next business day. Youâll repay the loan each week or month, along with interest and/or fees. As you repay the loan, funds will become available to use again.
A line of credit is a good thing to have because you can initiate draws as needed. If an emergency expense pops up or you have a sudden influx of orders that deplete your inventory, youâll have on-demand access to the cash you need for your business.
Recommended Option: Fundbox
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No time in business requirements, but must have used a compatible accounting or invoicing software for at least 2 months, or a compatible business bank account for at least 3 months.
Business revenue: $50,000 per year
No specific personal credit score requirement
Borrower requirements (click to expand)
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Through Fundbox, you can receive a line of credit up to $100,000. Repayment terms are 12 weeks or 24 weeks. Fees start at 4.66% of the draw amount. You only pay for the funds that you use, and remaining fees are waived when you pay your balance off early.
Itâs easy to qualify for a Fundbox line of credit. All you need to be approved is:
A business checking account
Business bank statements from the last 3 months
At least $50,000 in annual revenue
You can be approved just minutes after filling out Funboxâs application, and you can initiate draws immediately once approved.
Purchase Financing
If you need extra time to pay your vendors, consider applying for purchase financing. With purchase financing, you can get the money you need to purchase inventory, equipment, or other business necessities immediately while breaking the total amount into smaller, flexible payments.
With this type of financing, the lender sends a payment directly to your vendor. Youâll then repay the lender the balance — plus any fees and/or interest — on a weekly or monthly repayment schedule. You wonât have to pay the total amount upfront, and paying over a longer period of time may be more financially feasible for your new business.
Recommended Option: Behalf
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No specific time in business, revenue, or credit score requirements.
Borrower requirements (click to expand)
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Through Behalf, you can pay your eligible vendors between $300 and $50,000. You will have up to 6 months to repay your loan, and you can make payments on a weekly or monthly basis. Monthly fees start at 1% and are based on your creditworthiness. There are no hidden fees, no maintenance fees, and no costs to apply.
To qualify for financing through Behalf, there are no time in business or annual revenue requirements. Although the lender does not have minimum personal credit score requirements, credit history is taken into account and a hard pull will be performed to determine your eligibility.
Vendor Financing
If you make sales on a platform like Shopify or PayPal, you may qualify for vendor financing. With vendor financing, the performance of your business is the most important qualifying factor. Often, there are very low or no personal credit score requirements, so this may be a good option if you donât have a solid credit history.
With vendor financing, youâll receive a lump sum of money based on the performance of your business. In exchange for receiving the loan right away, youâll agree to give the lender a portion of your future sales until the loan plus fees and/or interest is repaid.
The only drawback to this option is that you must be making sales in order to qualify. If you need financing for startup costs and havenât yet made any sales, youâll need to explore one of the other options discussed in this article.
PayPal Working Capital
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Time in business: 3 months
Business revenue: Minimum $15,000 per year if you have a PayPal Business account, or $20,000 per year if you have a PayPal Premier account
Personal credit score: N/A
Borrower requirements (click to expand)
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If you accept PayPal payments, you may qualify for PayPal Working Capital. Through PayPal Working Capital, you can receive a loan of up to 35% of your annual PayPal sales. Repayments are based on a percentage of your future sales. Repayments are made daily when you have sales. If you donât have sales, a payment will not be made.
However, you must pay a minimum of 5% or 10% of your loan amount every 90 days to remain in good standing.
Youâll pay just one fixed fee for receiving your loan. Your fee is determined by:
Amount of your loan
Repayment percentage
PayPal sales history of your business
PayPal Working Capital does not perform a credit check, and you can pay your loan off early with no prepayment penalties. You must be a PayPal seller to qualify for this loan program.
Recommended Option: Shopify Capital
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Shopify monitors your account and extends a financing offer if your business is eligible. To qualify, you must:
Be located in the United States
Have Shopify Payments enabled
Have a profile that is considered low-risk
Process a certain amount of gross merchandise volume (GMV)
Borrower requirements (click to expand)
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Shopify users may qualify for the Shopify Capital program. Through Shopify Capital, you can receive a merchant cash advance (MCA).
Shopify Capital is available by invitation only to qualified Shopify users. Once you receive an invitation, youâll be able to view your funding options. You can receive up to $500,000 through this loan program based on the performance of your business. Once you select the amount youâd like to borrow, youâll receive the loan, which is repaid through a fixed percentage of your daily sales until the loan plus fees are repaid.
There are no minimum credit score, annual revenue, or time in business requirements, but you must receive an offer from Shopify in order to apply.
Business & Personal Credit Cards
A business credit card is a flexible financing option if you want access to financing without having to wait for a lenderâs approval. Once youâre approved, youâll receive a credit card with a set credit limit. You can then use your credit card anywhere itâs accepted to purchase inventory, software, or pay for other business expenses.
Once youâve used your credit card, youâll repay the borrowed portion of the funds, plus interest, on a monthly basis. As you pay down your balance, it will once again become available to use again. Some credit cards come with 0% introductory rates, bonus offers for new cardholders, and rewards programs, which can provide you with cash and other benefits just for using your card.
When applying for a business credit card, youâll need to include information about your online boutique, including your business name, federal tax ID number, and annual revenue. If youâre just getting started or donât yet have your business set up, you can apply for a personal credit card. With a personal credit card, youâll sign up under your name using your own income — no business name or annual revenue required.
Recommended Option: Chase Ink Business Cash
Chase Ink Business Cash
Apply Now
Annual Fee:
$0
Purchase APR:
15.49% – 21.49%, Variable
Required credit: Good, excellent
Bonus offer: $500 cash back if you spend at least $3,000 in the first three months of opening your account
Purchase intro APR: 0% for the first 12 months
Balance transfer intro APR: 0% for the first 12 months
Foreign transaction fee: 3%
Rewards:
5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone purchases each account anniversary year
2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
1% cash back on all other purchases
Notable Perks & Benefits:Â
Employee cards at no additional cost
Travel and purchase coverage
More card details (click to expand)
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If you have excellent credit, Chase Ink Business Cash is a card you should consider. With Chase Ink Business Cash, youâll receive 5% cash back for the first $25,000 spent on internet, cable, and phone services and office supply purchases each year. Youâll receive 2% cash back for the first $25,000 spent at gas stations and restaurants each year. Youâll also receive 1% cash back on all other purchases.
Chase Ink Business Cash has no annual fee and an introductory APR of 0% for the first 12 months. After the introductory period, the card has a variable APR of 15.24% to 21.24%.
Final Thoughts
With careful planning, strategic financing, and a little hard work, you can start and operate your own online boutique. Take the time to learn about local regulations, build your brand and website, and curate a collection of high-quality products, and youâll soon be on the road to becoming a successful entrepreneur.
If you want to learn more about starting an online store, download our free ebook, The Beginner’s Guide to Starting an Online Store. Then, when you’re ready to scale your business, take some helpful tips from The Advanced Guide to Growing Your Online Store.
The post How to Start And Fund An Online Boutique appeared first on Merchant Maverick.
When opening an online store, one of your most important tasks is finding the right website builder. In truth, selecting the proper software fit for your needs can make or break your whole operation. It goes without saying (but we’ll say it anyway, because it’s our job) that a small online shop offering its own home-based inventory has different software requirements than a large network of websites offering thousands of products sourced from all over the world.
To assist in your search, we’ve rounded up the top ecommerce software contenders. Two of our recommendations (Wix and Squarespace) began as traditional website builders for business or personal use, but have since added ecommerce capability. The others are ecommerce shopping carts at their core but have also made advanced online storefront-building capacity a major feature of the service. These include Shopify, BigCommerce, and 3dcart.
Shopify
BigCommerce
3dcart
Wix
Squarespace
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Review Visit Site
Review Visit Site
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Monthly Cost
$9 – $299
$29.95 – $249.95
$19 – $229
$25 – $40
$26 – $46
eCom Features
Excellent
Excellent
Excellent
Good
Good
Ease Of Use
Very Easy
Easy
Moderate
Very Easy
Easy
Web Design
Great
Good
Good
Excellent
Excellent
Customer Support
Great
Great
Good
Good
Good
In recommending these particular sitebuilders, we should note that our focus is on the DIY end of the website-building spectrum. If, on the other hand, you are confident in your coding skills (or can hire a dedicated developer) and prefer the infinite flexibility of an open-source platform for frontend design and content creation, you might try a CMS like WordPress to use in conjunction with a shopping cart plugin, such as WooCommerce or Ecwid.
However, if you’re looking for an all-in-one, fully-hosted, and simpler-all-around system for online store-building, you’ve come to the right place. The great news for you is that the online storefront creation and editing capabilities of the all-inclusive platforms we’ll highlight in this roundup have only improved over time.
How To Choose An eCommerce Website Builder
If you haven’t shopped for an ecommerce platform before, the first step is to become oriented with this type of software so you know what you’ll be examining in the first place. Fortunately, each sitebuilder we’ll cover here offers some sort of free trial, so you’ll have the opportunity for hands-on experience with the software before making a final selection.
Here are the main things you should consider when choosing ecommerce software:
Cost
Monthly Subscription: Most DIY sitebuilders these days are SaaS (Software as a Service), so check for the monthly cost of each plan level, which features are included at each price point, and any plan limits such as number of products you can list, revenue caps, etc.
Per Sale Commission: Some ecommerce sitebuilders charge a percentage commission per sale under certain circumstances, so investigate if and when this extra fee might apply to your store.
Add-On Features:Â Many features may only come as add-ons from an app marketplace. While some add-ons are free, other apps you may want to integrate with your store (like shipping, marketing, or accounting software) are fully-fledged SaaS platforms with their own monthly subscriptions.
Payment Processing:Â You’ll need to connect an online payment gateway to your store — usually a third-party processor like Stripe or PayPal — to accept payments from customers, so check out the available options that work with the platform in your country, and the processing rates charged.
Design Template:Â Some website templates come free with the software, but premium themes typically have a one-time purchase cost.
Web Development:Â While most ecommerce sitebuilders are DIY when it comes to getting things up and running, you may still decide to hire a developer or designer to fine-tune your site at some point.
Website Design
Template/Theme Options: Browse the theme marketplace and get a feel for several templates you could see yourself using.
Customization Options: Go beyond admiring templates and work with a few yourself. In particular, explore the storefront editing tools that come with the software. Look to see if and how you can move elements within page layouts — there are varying degrees of flexibility in this area.
Features
Admin Features: Look at the options for configuring storewide settings such as shipping methods, currencies, languages, tax calculation, and sales channels. Also, consider the ways in which you’ll be able to manipulate the specifications for individual products (pricing, SEO data, discounts, product variants/attributes, etc).
Storefront Features:Â This includes how products are displayed, organized, and marketed to customers on your site, as well as all aspects of the checkout experience.
Quantity VS Quality: Just because a certain feature exists, doesn’t mean it’s very robust or will work well for your needs. Similarly, you don’t want to get bogged down with (nor pay for) a bunch of features you don’t need.
Fit: Do the available features cater well to your business type, size, location, etc?
Scalability: Online stores grow in different ways, so it helps to anticipate how your operation will most likely expand over time. Growth dimensions, like number of products and their variations, number of staff accounts, file storage, revenue, marketing needs, and traffic levels, are often handled differently by different platforms.
Ease Of Use
Onboarding & Store Setup:Â All the software apps we cover in this article falls under a larger umbrella of “easy to get started,” but pay attention in your free trials to exactly how self-explanatory each step is, and to any additional guiding resources that are available.
Dashboard Navigation & Feature Manipulation:Â Check your level of comfort with both finding and manipulating features like inventory and order management, discount creation, etc.
Simplicity VS Flexibility:Â User-friendliness is a good thing, but make sure that the tools you need aren’t so basic that they can’t accomplish precisely what you want them to.
Coding Skill Requirements: Â In most cases, the basics of admin and storefront customization will be covered without coding, but advanced customization can require advanced knowledge. Do your best to push the limits of non-coding customizability during your trial.
Tech Support:Â Know what resources you’ll have if you get stuck or if something goes wrong with your site. Since online stores operate 24/7, you’ll probably want at least one support channel (email/web tickets, live chat, or phone) that’s open 24 hours.
Between your own testing experiences, perusing the software’s website, reading reviews (like ours!), and interacting with customer service to answer any lingering questions, you should have a very good handle on how a particular sitebuilder will work for your online store before coughing up a single cent in subscription fees.
Now, let’s take a look at some software! We can’t cover absolutely everything we’ve discussed above (check out our full reviews of the software for more info), but we’ll hit some key points to help guide your choice.
1. Shopify
Pricing & Payment Processing
While there is a $9/month Lite plan with Shopify, you’ll need to sign up for the Basic plan ($29/month) or higher to build a full ecommerce website using the software. As you continue upward in plan level, you’ll see a few added features and the option to increase your number of staff admin accounts. Here are the subscription options:
Shopify Lite: $9/mo. Embeddable cart, but no standalone store website.
Basic Shopify: $29/mo.
Shopify: $79/mo.
Advanced Shopify: 299/mo.
Shopify Plus: Custom pricing. Reserved for enterprise-level customers.
You have over 100 gateway possibilities for accepting payments from your customers with Shopify, but note that if you don’t use the in-house option — Shopify Payments, powered by Stripe — you will be charged an extra Shopify commission per sale of up to 2% on top of the card processing fee from your payment gateway. On the flip side, if you do use Shopify Payments, you’ll receive a processing discount (i.e., pay less than the going rate for Stripe on its own) on the Shopify and Advanced Shopify plans.
We’ve put together a complete breakdown of Shopify Payments, and I’d definitely recommend reading that before you sign up for Shopify. For now, just remember that you’ll face an extra transaction fee from Shopify if you don’t use Shopify Payments.
Shopify also has one of the most extensive app stores you’ll find among SaaS ecommerce platforms. This can be a great resource for your store, but be careful to take the added cost of the apps you might need under consideration as you evaluate pricing.
Ease Of Use
Shopify users appreciate how easy it is to jump right in and start selling with the software. Once you open your free 14-day trial, your dashboard guides you toward a few steps to begin setting up your store:
Our tests of both admin navigation and individual feature manipulation have demonstrated that everything is easy to find and use. If you do run into problems, Shopify offers phone, email, and live chat support 24/7 at all subscription levels — a rare support trifecta amongst ecommerce website builders. The company has also curated an impressive library of self-help articles, videos, and even full online courses. All in all, Shopify earns an A+ for user-friendliness.
Web Design & Editing
Theme Options:
Choose from 10 free themes (made by Shopify) or 60 paid themes for $140-$180, most with multiple style variations. Even the free themes are good quality, and I’m always struck by the pleasant experience of shopping in the theme store. When a shopping cart platform is good at showcasing its own products, this gives me confidence in its ability to serve the needs of ecommerce sellers who are trying to accomplish this exact same task with their own products.
Editing Tools:Â
To move elements around on your site’s pages, you’ll have access to a drag-and-drop tool called “Sections.” It’s not as flexible as the visual editors from traditional sitebuilders like Wix and Squarespace, which allow more freedom of placement, but you can at least add, subtract, and change the order of elements. You can also change fonts and colors under “Theme Settings.”
If you wish to further customize your theme, you’ll need to learn Shopify’s own templating language called Liquid. This open-source language is written in Ruby and is the backbone of Shopify templates. Of course, you may not need to further code your Shopify theme at all — we just always like to include the heads up in case.
Features
While Shopify has a strong, highly-capable core feature set, advanced features often come as add-ons (even free ones) to keep the base platform streamlined and easy to use. Here are some of the Shopify features we like:
Admin
Unlimited products, bandwidth, and storage on all plans
Built-in shipping software (Shopify Shipping)
Manual order creation (virtual terminal)
Shopify POS & other POS integrations
Extensive order fulfillment & dropshipping integrations
Along with the features we’ve highlighted above, check individual templates for special storefront features such as parallax scrolling, customer testimonials, social media feeds, and more.
Best Fit
From an overall software quality standpoint, it’s hard to go wrong with Shopify. This platform remains our default recommendation for the typical online seller who wants to quickly launch an attractive and functional store, but who also hopes for a scalable solution that easily accommodates growth in product listings and store revenue. As far as shopping cart software goes, it’s also one of the easiest platforms to use.
Shopify not-so-subtly guides you toward using Shopify Payments as your processor by rewarding you with reduced processing fees if you do and punishing you with an extra commission per sale if you don’t. If you’re not in one of the 10 locales currently supported by Shopify Payments or don’t qualify to use the processor for another reason (such as risk level or type of products sold), you should probably take a closer look at some of the competing ecommerce platforms as well.
2. BigCommerce
Pricing & Payment Processing
Each bump in subscription level with BigCommerce gives you added features, but also implements annual revenue caps. Meanwhile, BigCommerce never charges an additional commission per sale, regardless of which payment processor you choose. You’ll have around 60 payment gateway options, one of which is Braintree (a division of PayPal), which gives access to discounted processing rates as you move up the BigCommerce subscription ladder.
Here are the plans, all of which allow you to create a full ecommerce storefront:
Standard: $29.95/month (sell up to $50K/yr.)
Plus: $79.95/month (sell up to $150K/yr.)
Pro: $249.95/month (sell up to $400K/yr.)
add $150/mo. for every additional $200K/yr. in sales, up to $3M
Enterprise:Â Custom pricing
BigCommerce also offers an app store with hundreds of connections to ecommerce-related software and feature plugins. While this platform attempts to include a few more native features than Shopify, you should still be aware of the cost of additional integrations purchased through the app marketplace.
Ease Of Use
BigCommerce offers a 15-day free trial (probably just to one-up Shopify by a day). The admin dashboard you’ll encounter upon signup is arranged in a standard ecommerce fashion — navigational menu on the left, tips to get started on the right:
I would qualify BigCommerce’s backend as quite intuitive to use, although you might find it slightly more complex and detailed than Shopify’s interface. Part of this comes down to personal preference and experience, though. If you happen to run into a snag, BigCommerce offers 24/7 phone, email, and live chat support at all plan levels, as well as good documentation and community forums.
Web Design & Editing
Theme Options:
With over 120 themes (and multiple style variations per theme) available at the BigCommerce theme marketplace, you’re bound to find a good match for your store. Seven of the themes are free, and the rest range from $145 to $235 each.
Editing Tools:
Theme editing with BigCommerce is more restricted than with Shopify. The visual editor (now called Store Design) lacks a drag-and-drop component, for example. In other words, you should carefully choose a template you really like, because you are stuck with its basic format. Alternatively, you can add a page builder app from the marketplace with drag-and-drop capability, but just be careful to factor in the added cost. You can also make customizations with HTML and CSS if you’re skilled in these areas.
Features
As always, check which features are included with each subscription level (and which come as apps), but take a look at a few of BigCommerce’s standout features:
Admin
Unlimited products, storage, & bandwidth
Unlimited staff accounts
Sell digital and service-based products without adding an app
Support for numerous product variations
Manual order creation & editing (virtual terminal)
Square POS integration
Marketplace integrations (Amazon, eBay, etc)
Shipping label printing (USPS) and discounts
Complimentary Avalara AvaTax account
Customer segmentation with loyalty program capability
Akamai Image Manager & Accelerated Mobile Pages (AMP)Â for mobile-friendliness
Integrate consumer financing options at checkout
Best Fit
BigCommerce strikes a good balance between ease-of-use and powerful out-of-the-box functionality, which we think a lot of online sellers will appreciate. Individual feature quality is also quite robust. Like Shopify, BigCommerce works for a wide variety or catalog sizes and scales well. However, if you have a nuanced catalog with a lot of product variations or custom fields, and like being really hands-on with your product SEO, you might be drawn to BigCommerce.
BigCommerce is also a great option to consider if you want or need the freedom to choose a payment processor without the “threat” of extra transaction fees if you don’t select an in-house option. If you’ve already looked at Shopify but need more flexibility when it comes to payments, definitely check out BigCommerce as an alternative.
3. 3dcart
Pricing & Payment Processing
3dcart shares pricing structure components with both BigCommerce and Shopify. Like BigCommerce, 3dcart subscription packages have revenue caps. Another similarity is that 3dcart never charges its own fee per sale (and over 160 compatible payment gateways are available, some with discounted processing rates at higher subscription levels).
Like Shopify, you get more staff accounts at each 3dcart level. And, like both Shopify and BigCommerce, each step in plan offers a few additional features.
Do also note that the Startup plan with 3dcart has an item limit of 100 products. Here’s a quick pricing summary:
Startup: $19/month (sell up to $50K/yr and list 100 products.)
Basic: $29/month (sell up to $100K/yr.)
Plus: $79/month (sell up to $200K/yr.)
Pro: $229/month (sell up to $400K/yr.)
Enterprise:Â Custom
For building a complete online storefront with the software, 3dcart comes in at a lower starting price than both BigCommerce and Shopify (at just $19/month). You’ll also note that the 3dcart $29 plan accommodates twice the annual store revenue of the $29.95 plan on BigCommerce. For these reasons, 3dcart is often considered a less expensive choice.
3dcart boasts a lot of built-in features, but watch out for the ongoing monthly cost of software integrations for shipping, accounting, and other services available in the 3dcart app store.
Ease Of Use
3dcart also comes with a free 15-day trial (and if you think everyone’s just copying each other on this, 3dcart has been around the longest!). The dashboard functions just like those of the other two ecommerce platforms we’ve discussed so far, but some advanced features are built-in modules you must find and turn on to use.
While 3dcart is easy to use, it is definitely more complex and layered than Shopify or BigCommerce. You may find, however, that you appreciate the flexibility and advanced capability of 3dcart’s features. Tech support is available 24/7 via phone, live chat, and email, but note that you must be on the $29/month plan to access phone support. The community forums are also helpful, and the knowledgebase provides step-by-step articles on most of the important features.
Web Design & Editing
Theme Options:
3dcart offers just shy of 50 themes in its marketplace, and close to half are free. The rest are $150-$200.
Editing Tools:Â
If you want to customize your theme, you can make color, content, and some typography changes in the visual editor, but more significant changes require tweaking HTML and CSS. In other words, there is no drag-and-drop capability. My overall hunch is that 3dcart expects most users to eventually tinker with the code if they really want to hone their designs.
Features
Below is just a sampling of 3dcart’s features — be sure to check the website for the full breakdown by plan:
Admin
Unlimited product options/variants
Inventory & order management
Dynamic, unlimited product categories
Return management
Manual order creation & editing (virtual terminal)
Advanced SEO tools
Create/print shipping labels from multiple carriers
Multichannel selling
Email marketing & drip campaigns
Unlimited email hosting
Built-in CRM
Built-in iPad POS software (or integrate with Square POS)
Built-in B2B selling features
Storefront & Checkout
Single-page checkout
Real-time shipping calculations
Gift certificates (on all plans)
Wide variety of discount/coupon types
Daily & group pricing deals
Make-an-offer pricing
Offer financing options
Wish lists & gift registries
Reviews & product Q&A
Waiting list & pre-orders
Gift wrap
Loyalty program & rewards points
Abandoned cart recovery
Best Fit
In some ways, we’ve been climbing up the ladder of built-in complexity as we’ve progressed through this software roundup so far. The tradeoff between simplicity and flexibility starts to lean more noticeably toward the flexibility side when we arrive at 3dcart. I think it’s safe to say that 3dcart works well for users who are perhaps not coding experts, but still fancy themselves on the generally tech-savvy end of the spectrum. While still easy to use in the grand scheme of things, this platform requires a bit of initiative on the part of the user to take full advantage of what it has to offer.
Starting at just $19/month, 3dcart is also a cost-effective option for sellers on a tight budget who still require workhorse-style ecommerce software underpinning their websites (versus a traditional website builder with added ecommerce capability). Speaking of budgets, 3dcart is also a great option for sellers who may feel Shopify’s software is a good fit, but are stuck with an extra transaction fee because they can’t use Shopify Payments. With well over 100 options at 3dcart, you’re bound to find a compatible processor that suits your needs.
4. Wix
Pricing & Payment Processing
To create an ecommerce website with Wix, you’ll need to sign up for one of the “Business” plans designed for online sellers. As is common with traditional website building software, Wix advertises a monthly price for plans when paid annually, rather than a true month-to-month price. We like to focus on with the month-to-month price, so you can better compare between platforms:
Business Basic: $25/month (20GB storage)
Business Unlimited: $30/month (35GB storage)
Business VIP: $40/month (50GB storage)
If you decide to pay annually, the above prices drop to $20, $30, and $35, respectively. (To be fair, all the platforms in the article offer some type of discount for paying annually — it’s all a matter of advertising strategy). The package levels are defined by file storage, customer support, and whether or not email marketing campaigns are included.Â
Wix never charges an extra commission per sale, regardless of which of the close to 20 gateway options you select for accepting payments.
As we’ve mentioned with the other software platforms we’ve discussed so far, you may want to add some apps to expand what your site can do. Wix apps often have both free and premium versions, so just confirm which type will work for your store so you can accurately calculate your true monthly costs.
Ease Of Use
You can dive right in and start testing Wix for free as long as you’d like — you just can’t start accepting payments through your store until you sign up for a paid plan. At that point, you have 14 days to cancel and receive a full refund on your subscription fee if you change your mind.
There are two ways to get a site started with Wix. You either let Wix ADI (Artificial Design Intelligence) create a website for you by asking you a series of detailed questions about your business, or you select a pre-made template and go from there. Either way, the ecommerce portion of your site is built on the Wix Stores app, which seamlessly integrates into the rest of your dashboard:
The backend ecommerce features of Wix are very easy to use, if sometimes not quite as powerful or flexible overall as the features of the other shopping cart software we’ve discussed so far. Wix actually takes user-friendliness to a whole new level by incorporating several visually-engaging interfaces that carefully hold your hand through important processes such as setting up email campaigns, creating discounts, configuring SEO for your site, and more. On a personal note, I really enjoy using Wix for this reason.
If you still need extra help, phone support is available Monday-Friday from 5AM-5PM PT on all plans, or you can submit an email ticket 24/7. Online self-help resources are good quality, but not as extensive in the ecommerce department as those you’d find for a platform like Shopify.
Web Design & Editing
Theme Options:
Approximately 80 templates offered by Wix are built upon the Wix Stores app, but it’s easy to add the app to any of the 500 or so templates offered. Happily, all templates are included free with a Business subscription to Wix. And, as you might expect from a platform that specializes in frontend design, your options are very elegant and modern.
Editing Tools:
While you can’t switch templates midstream with Wix, you have loads of flexibility in customizing what you’ve chosen. The drag-and-drop capability of Sections in Shopify pales in comparison to the “place anything anywhere” possibilities with Wix. Use the gridlines as a guide to ensure your site is mobile-friendly, and away you go:
If, on the other hand, you decide to have your base website constructed for you using Wix ADI, you’ll have access to a theme editor that’s more in line with Shopify’s drag-and-drop system:
I think one common path to design customization with Wix is to have Wix ADI create a base site to begin with, and then shift over to the more flexible Wix Editor for fine-tuning. You just can’t go back to Wix ADI and its simpler editor once you’ve made the switch.
Features
Once again, we’re just including a sampling of key features here. Most of those listed below are available on all three Wix Business plans:
Admin
Unlimited products & bandwidth
Sell physical, digital and service-based goods
Up to 6 options and 300 variants per product
Inventory & order management
Send & manage invoices
SEO tools
Track traffic with Google Analytics
Personalized email address that matches your domain/brand
20 email marketing campaigns (100,000 total emails/mo) included in subscription
We love Wix as a solution for stores with aesthetically-nuanced products. as well as for brands that highly prioritize visual quality and uniqueness overall. Those who feel boxed in by the somewhat limited design customization options of ecommerce platforms like Shopify will appreciate the freedom to fine-tune everything about the look and feel of their online storefronts, as well as their communication and marketing materials — all without touching a line of code. And, for those who want a visually-unique site with minimum effort, Wix ADI can hold your hand every step of the way.
If you are thinking of scaling to offer a very large number of products, or wish to significantly expand your shipping and fulfillment needs over time, Wix probably isn’t your best choice. Meanwhile, we think a lot of multifunctional businesses (like hotels, restaurants, photographers, artists, musicians, bloggers, etc.) who also want to sell a few products online will love the seamless integration of a native ecommerce app into their dashboards.
5. Squarespace
Pricing & Payment Processing
Similar to Wix, Squarespace leads with pricing figures that assume you’ll pay for a complete year at a time. Adjusted for true-month-to-month costs, here are the Squarespace plans with fully-integrated ecommerce functionality:
Business: $26/month
Commerce Basic: $30/month
Commerce Advanced: $46/month
There’s a pretty big jump in the number of features between the Business and Commerce Basic plan, and a smaller jump in available features to Commerce Advanced. Another difference between the Business Plan and the two Commerce plans is that the Business plan comes with a 3% Squarespace commission per sale. If you’re serious about creating an ecommerce website with Squarespace, it will likely be worth it to have a Commerce package for the additional ecommerce-specific features and the elimination of the extra transaction fee. Meanwhile, you only get two payment gateway options with Squarespace (Stripe and PayPal), which will also charge their own transaction fees.
Squarespace doesn’t have an app store — any third-party integrations come already connected to your store. However, when activating one of these connections, you should be aware that some of them do have premium versions with ongoing monthly costs. ShipStation and MailChimp are two good examples.
Ease Of Use
Squarespace offers a 14-day free trial. If your trial expires before you upgrade and you haven’t made up your mind yet, you can simply create another trial site under the same registration email.
Before you reach the dashboard, you’ll need to select a template (but you can change it later). You’ll see a few ecommerce-geared options first if you enter “to sell” something as your site’s purpose. Unlike any of the ecommerce sitebuilders we’ve discussed so far, your admin dashboard incorporates a frontend preview on the right:
I find it a little difficult to start adding products with Squarespace — you have to create a separate product page first, and the software doesn’t do a great job explaining this. Once you conquer this initial hurdle, however, the overall learning curve for ecommerce functions is relatively small.
I also like all the direct links to applicable support articles within the dashboard that guide you directly to the right knowledgebase article if you become stuck. Squarespace email support responds 24/7 and is quite effective, but the tradeoff is that there’s no phone support offered. Meanwhile, live chat is available Monday-Friday 4AM-8PM Eastern time.
Web Design & Editing
Theme Options:
Squarespace offers approximately 90 themes grouped into 21 families. Since you’ll eventually be adding some sort of product page no matter what, any of them can be used for ecommerce, even though some are specifically suggested for online stores.
As far as traditional website builders go, the sheer variety of templates is low, but the quality is high. We’re looking at a carefully-curated selection of polished, classy, streamlined designs offered by Squarespace:
Editing Tools:
Squarespace lands somewhere in between Wix and Shopify when it comes to the amount of freedom you have to drag-and-drop page elements. You can add and arrange large sections up and down each page, insert various types of “content blocks” (including spacers and lines), and adjust the alignment of pieces within those blocks to a certain extent. Fonts and colors are also adjustable, but often exist as site-wide style settings in order to maintain a unified look.
In summary: Squarespace offers more no-code design flexibility than Shopify and less than Wix. However, if you’re comfortable adding CSS to your site, there’s an easy CSS editor available.
Features
Below are some Squarespace features that caught my eye. A handful of these features (i.e., abandoned cart recovery, gift cards, and subscription payments) are only available on the Commerce Advanced plan. Always check the full and most complete breakdown by plan on the company website!
Admin
Unlimited products, bandwidth, and storage
Sell physical, digital, and service-based products out-of-the-box
Unlimited staff contributors on all ecommerce plans
G Suite integration (full year free)
Shipping & accounting integrations
Inventory & order management
Set store manager permissions
Mobile app for store management
Logo creation software
Commerce analytics & reports
Advanced image/photo management & editing
Storefront & Checkout
Checkout on your domain
Customizable checkout forms
Promotional banners & pop-ups
Offer gift cards
Offer subscriptions to products & services
Accept donations
Offer coupon codes and discounts
Real-time shipping rates from multiple carriers
Abandoned cart recovery
Guest checkout & customer accounts
Express checkout for single-product stores
Best Fit
The target audience for Squarespace amongst ecommerce website owners overlaps significantly with Wix’s demographic. Both sitebuilders are great for smaller product catalogs with visual interest, but Squarespace is nice if you specifically want a posh, classy, or even minimalist vibe for your store. This sitebuilder is also great for those who enjoy the freedom to easily tweak a design but don’t feel hemmed in by a bit of built-in structure for ensuring a consistent style overall.
As far as standard ecommerce features go, it’s a tough call between Wix and Squarespace. The two platforms take a slightly different approach, so you’ll have to decide which features are a priority to you. For example, if you want an abandoned cart recovery tool and the ability to connect with popular third-party apps like accounting and shipping/fulfillment software, Squarespace will suit you better. I’d recommend skipping over the Business plan and going straight for one of the Commerce plans if you’re at all serious about selling.
Quick Pricing Comparison
Before I share my final thoughts on choosing the best ecommerce website builder for your store, here’s a quick rundown of the monthly subscription costs for each of the platforms we’ve discussed:
Pricing Levels
Differences Btwn. Levels
Shopify
Lite: $9/mo.
Basic: $29/mo.
Shopify: $79/mo.
Advanced $299/mo.
Plus: Custom
Available features
Number of staff accounts
Shopify’s commission per sale
BigCommerce
Standard: $29.95/mo.
Plus: $79.95/mo.
Pro: 249.95/mo.
Enterprise: Custom
Available features
Annual store revenue
3dcart
Startup: $19/mo.
Basic: $29/mo.
Plus: $79/mo.
Pro: $229/mo.
Enterprise: Custom
Available features
Annual store revenue
Number of products
Number of staff accounts
Wix
Business Basic: $25/mo.
Business Unlimited: $30/mo.
Business VIP: $40/mo.
Storage
Customer service
Available features
Squarespace
Business: $26/mo.
Commerce Basic: $30/mo.
Commerce Advanced: $46/mo.
Available features
Squarespace’s commission per sale
Remember that traditional website builders like Wix and Squarespace typically lead with “when paid annually” pricing, so we’ve adjusted the figures to reflect the cost if you pay month-to-month. All five services offer some sort of discount if you pay for at least a year upfront.
Final Thoughts
If you’ve made it this far, I hope you’re excited about test-driving one or more of these ecommerce website builders. My guess is that you’ll probably figure out if you’re in the Shopify/BigCommerce/3dcart or the Wix/Squarespace camp first, but there’s no reason you can’t check out both types of software.
That said, anyone planning to scale their product and sales numbers dramatically over time should probably stick with one of the three ecommerce workhorse platforms. There’s a reason sitebuilders like Wix and Squarespace cap their ecommerce plan subscriptions at under $50/month, while platforms like 3dcart, BigCommerce, and Shopify can charge upwards of $200 per month for their best ecommerce packages. You’re usually paying for a larger quantity and better quality of features that help you manage the complicated logistics of selling online.
It’s a safe bet, in this case, to use pricing as a general guideline for the ability to shore up and scale your backend functions as your store grows by various dimensions. Still, Wix and Squarespace would not be included here at all if they weren’t both excellent options for smaller stores.
The thing that’s hard to nail down in a summary article like this is the quality and usefulness of the features you’ll need for your store. By listing a few highlights for each sitebuilder, we’re just giving you a flavor of the software. While we can confidently say that all the platforms in this article cover the “basics” of running an online store, that assurance is no substitute for your own experience. If you’re still stuck or confused after your research and testing, turn to the platform’s customer service and sales support for clarification. You need a good excuse to put those support systems to work before signing up anyway, so go for it!
Happy software testing!
Shopify
BigCommerce
3dcart
Wix
Squarespace
Review Visit Site
Review Visit Site
Review Visit Site
Review Visit Site
Review Visit Site
Monthly Cost
$9 – $299
$29.95 – $249.95
$19 – $229
$25 – $40
$26 – $46
eCom Features
Excellent
Excellent
Excellent
Good
Good
Ease Of Use
Very Easy
Easy
Moderate
Very Easy
Easy
Web Design
Great
Good
Good
Excellent
Excellent
Customer Support
Great
Great
Good
Good
Good
The post Find The Best eCommerce Website Builder For Your Business appeared first on Merchant Maverick.
Selecting the best ecommerce platform for building your online store can be tough. I find it helpful to keep in mind that shopping for this type of software is similar to shopping for any other product (you just happen to be shopping for shopping cart software, which I’ll grant is slightly strange). You ultimately need your ecommerce software to do two primary things: to serve your particular online selling needs, and to accomplish this for an affordable price.
If you’ve heard of any ecommerce software up to this point, you’ve probably heard of a platform called Shopify. Shopify often receives top billing in this category, and with good reason. Still, it’s by no means the perfect solution for everyone. Along with Shopify, we’ve compiled a few other great options worth considering in your search for an online home for your store.
Shopify
BigCommerce
3dcart
Ecwid
Wix
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Monthly Cost
$9 – $299
$29.95 – $249.95
$19 – $229
Free – $99
$25 – $40
Core Features
Great
Excellent
Excellent
Good
Good
App Store
Very Large
Large
Moderate
Moderate
Small/Moderate
Ease Of Use
Very Easy
Easy
Moderate
Very Easy
Easy
Web Design
Great
Good
Good
OK
Excellent
Customer Support
Great
Great
Good
Good
Good
From a bird’s-eye view, our main reasons for recommending these platforms are user-friendliness, a solid feature set, and an accessible price. Notice that they’re also all SaaS (Software as a Service) platforms, meaning you are not responsible for downloading, installing, and hosting the shopping cart on your own server. Instead, you subscribe to the service (most often for a monthly fee), and all the hosting and software updates that underpin your online store are automatically handled for you. Easy! eCommerce software has been trending in this direction over the past several years, and the available SaaS options have only become more robust and customizable over time.
What To Look For In An Ecommerce Platform
Before we discuss the individual recommendations further, here’s a quick overview of the key factors we consider when evaluating ecommerce software:
Pricing: How does the monthly subscription system work (what factors determine the different pricing levels), and what are the options/costs associated with accepting payments from shoppers?
Features & Add-ons: How strong is the core feature set of the software, and how well can these features be expanded upon using the platform’s associated app marketplace?
Ease Of Use: How steep is the learning curve for ecommerce beginners (particularly those without any coding experience)? What is the balance between user-friendliness and the capability of the platform to accomplish both basic and advanced tasks?
Web Design: How attractive, modern, and functional are the available theme templates for designing storefronts? What customization options are available, and how robust/flexible are these tools?
Customer Support: What is the availability and quality of email, live chat, and phone support for the software, along with any other self-help resources provided by the company and user community?
And, of course…
User Reviews: What are real store owners (like you!) saying about the software, both good and bad?
That’s our basic guideline. Now, we’ll take a closer look at each platform, highlighting the main benefits and drawbacks of each one, along with the types of online sellers we think the software typically suits best. We’d definitely recommend reading our full review of each platform before making your final choice. We’ve also posted one-on-one comparisons for several of the platforms if you’d like to check out those in-depth articles as well.
1. Shopify
As mentioned, Shopify is our most commonly recommended ecommerce platform. The combination of strong core features, an exhaustive app marketplace, and high ease-of-use put Shopify at or near the top of most SaaS ecommerce platform rankings.
Pricing
There are technically five Shopify plans, but the three subscription levels in the middle are considered the standard options for most SMB owners needing an online store. The price jumps between the three middle plans are based primarily on additional features and the ability to set up more staff accounts. Here are all five levels:
Shopify Lite: $9/mo. Embeddable cart, but no standalone store website.
Basic Shopify: $29/mo.
Shopify: $79/mo.
Advanced Shopify: 299/mo.
Shopify Plus:Custom pricing. Reserved for enterprise-level customers.
When it comes to accepting payment from your customers, you should note that this is the only platform on our list that charges an extra commission per sale. This goes above and beyond the normal processing fees you’ll need to pay to your credit card processor. Shopify’s commission decreases incrementally as you climb the subscription ladder: 2% on Basic, 1% on Shopify, 0.5% on Advanced.
You can avoid these extra Shopify transaction fees if you sign up for the in-house payment processor — Shopify Payments (powered by Stripe) — but this gateway is only available in 10 countries. In addition to eliminating the extra transaction fee, Shopify struck a deal with Stripe to offer lower payment processing fees with Shopify Payments than if you were to use Stripe (or a similar processor) by itself. These discounts apply to your processing if you’re on the Shopify Plan or the Advanced Shopify Plan.
Shopify does provide over 100 alternative gateway options. You’ll just be saddled with that extra percentage Shopify charges per sale when you stray from Shopify Payments.
Features & Add-Ons
Shopify is defined by a quality core feature set that works well for a wide variety of sellers. Moreover, Shopify has a very large app marketplace (of around 2500 apps) that will provide virtually any additional feature you might need. If there is one disadvantage to this system, it is that these integrations can add to your monthly operating costs. Meanwhile, merchants appreciate how many of Shopify’s third-party apps are fully-fledged software platforms that are commonly used to support ecommerce, rather than just simple extensions that add a small feature or two (the app store does have those as well, though!)
Here are a few Shopify features we like:
Abandoned cart recovery
Built-in shipping software (Shopify Shipping)
Real-time shipping calculations
Manual order creation (virtual terminal)
Automatic tax calculation
Shopify POS & other POS integrations
Extensive order fulfillment & dropshipping integrations
Coupons, discounts & gift cards
Ease Of Use
Shopify has one of the easiest learning curves in the ecommerce software market. Simplicity is the name of the game for Shopify — it’s clear they’d rather offer the ability to expand the platform’s capability with optional add-ons than to overwhelm the newbie with a complicated dashboard or intricate customization options from the get-go.
The Shopify dashboard is clear and well-organized, and any built-in feature can be manipulated easily with zero coding knowledge.
Web Design
Shopify offers 10 free themes (made by Shopify), as well as 67 paid themes (made by third-parties) that range in price from $140-$180. Technically, the total theme count is a bit higher, because each theme has multiple style variations that swap out colors and whatnot. Shopify themes are some of the more elegant and functional options we’ve seen. As a nice bonus, the theme marketplace can be searched by desired theme features.
While the Shopify theme editor may not be as flexible as that of a top-notch website builder (like Wix), the drag-and-drop editor makes it easy to stack and rearrange page elements, called “Sections.” (Perhaps don’t go quite as far as I did with awkward colors and fonts — just showing you what can be changed):
Beyond the theme editor, you also have the opportunity for more customization with a combination of HTML, CSS, and Shopify’s own theme templating language (called Liquid). Most novices won’t open that coding can of worms straight away, but it’s good to know it’s there.
Customer Support
Shopify offers 24/7 phone, email, and live chat support at all subscription levels. Although no customer support system is perfect, we’ve found Shopify’s responses helpful and timely in the grand scheme. On top of this, the strong community of users and developers currently working with Shopify makes finding resources, reviews, and feedback a breeze. The library of self-help articles, tutorials, courses, and videos produced by Shopify is also impressive.
Who Is Shopify Best For?
If this were a little kids’ recreational sports league, Shopify would receive the “Most Well-Rounded Player” award, if not the full MVP as well. Shopify is suited to the widest variety of store types and sizes. When Shopify works for merchants, it works really well. Store owners who benefit the most from Shopify will most likely be based in one of the 10 countries in which Shopify Payments is available, because that’s the only way Shopify’s extra commission per sale is avoided. However, the quality of Shopify’s platform is strong enough overall that many merchants are willing to accept those extra transaction fees, even if they can’t (or won’t) use Shopify Payments.
Of course, we can’t mention Shopify without also mentioning one type of merchant in particular: dropshippers. Shopify is definitely the dropshipper’s go-to platform.
2. BigCommerce
If you asked most experts at large, they’d probably tell you that BigCommerce is Shopify’s most direct ecommerce SaaS competitor. BigCommerce also has an enterprise solution (BigCommerce Enterprise) that’s comparable with Shopify Plus.
Pricing
Subscription levels with BigCommerce are organized by added features at each level, but also annual revenue caps. This means you’re automatically bumped to a higher subscription once you reach a cap. Here are the plans and their associated sales limits:
Standard: $29.95/month (sell up to $50K/yr.)
Plus: $79.95/month (sell up to $150K/yr.)
Pro: $249.95/month (sell up to $400K/yr.)
add $150/mo. for every additional $200K/yr. in sales, up to $3M
Enterprise: Custom pricing
Unlike Shopify, BigCommerce never charges an additional commission per sale. For payment processing gateways, you have about 60 options. One of these is Braintree (a division of PayPal), which gives access to discounted processing rates as you move up the BigCommerce subscription ladder.
Features & Add-Ons
BigCommerce has a particularly strong set of native features, while also maintaining a sizable app marketplace for optional add-ons (ballpark 600 in total). The balance of out-of-the-box features versus add-on apps leans more toward the former, especially when compared to Shopify. Offered features include:
Faceted (filtered) search
Single-page checkout
Customer groups & segmentation
Abandoned cart recovery
Real-time shipping calculations
Product ratings & reviews
Up to 600 product options/variants
Coupons, discounts, & gift certificates
Square POS integration
Ease Of Use
Some may argue that the balance toward more features included from the get-go can make BigCommerce harder to use at first. Personally, I wouldn’t let fears about user-friendliness stop a beginner from using this software. Extensive out-of-the-box features don’t complicate BigCommerce dashboard beyond reason, and the included features are intuitively configurable without any coding knowledge.
Web Design
BigCommerce offers around 125 themes, along with close to 500 total variations (or âstylesâ) of those themes. Seven of these themes (25 styles) are free; the rest are available for $145â$235. Quality of design is always subjective, but BigCommerce definitely has a wide variety of elegant templates from which to choose.
It’s a good thing this variety and quality of templates pre-exists, because customization options without coding knowledge or adding a separate integration are somewhat limited with BigCommerce. The theme editor lacks a drag-and-drop element, and you’ll be stuck with the theme’s fonts and colors for the most part.
Customer Support
Like Shopify, BigCommerce offers 24/7 phone, email, and live chat support at all plan levels. We’ve had mixed experiences with BigCommerce’s support, but find that more users praise the service than knock it. You can definitely make the argument (and we have) that BigCommerce support is just as good or better than Shopify’s. There are also active community forums and plenty of BigCommerce-produced support materials available online.
Who Is BigCommerce Best For?
The target market for BigCommerce overlaps significantly with Shopify’s. Much of your decision will come down to the appeal and specific fit-to-business of the extra features that come built-in with BigCommerce at your targeted subscription level. For example, I think B2B and wholesale merchants would do well to take close look at BigCommerce’s feature set. Support for more product variants or discount types will be interesting to other sellers. If you’re confident you’ll actually use most of the native features BigCommerce offers, you could definitely end up saving money and headaches. You’ll just need to be prepared for the automatic subscription bumps as your revenue grows.
Perhaps the most obvious appeal for BigCommerce is the freedom to choose your payment processor with no penalty of an extra transaction fee. That extra cut Shopify takes from your sales feels especially unfair if you’re not even based in one of the 10 countries where Shopify Payments is supported.
By the same token, maybe you already have a merchant account and/or payment processor that you like, or are looking for a specialized payment processor for your particular sales volume and/or risk profile. We often recommend merchants processing over around $100K per year look into credit card processors that offer your own dedicated merchant account with interchange-plus pricing. These accounts can provide more transparency and account stability (and often cost savings) than a standard flat-rate processor like Shopify Payments, PayPal or Square. With BigCommerce, your payment acceptance options are quite open.
3. 3dcart
This platform has been around longer than any other on our list, and I’d actually heard of it before I’d even heard of Shopify. Over the years, 3dcart has developed a substantial and nuanced core feature set and continues to add and improve features at a steady clip. The software’s low monthly cost, extensive features, and plentiful payment gateway options make it worth a look when opening an online store.
Pricing
Subscription packages with 3dcart are delineated mainly by annual online revenue, number of staff accounts, and available features. You can sell up to 100 products on the Startup plan, while the other plans allow you to list unlimited items.
Startup: $19/month (sell up to $50K/yr.)
Basic: $29/month (sell up to $100K/yr.)
Plus: $79/month (sell up to $200K/yr.)
Pro: $229/month (sell up to $400K/yr.)
Enterprise: Custom
3dcart comes in at a lower starting price than BigCommerce or Shopify (if you exclude the Shopify Lite plan that doesn’t let you build a standalone store website). At the same time, the $29 plan level with 3dcart accommodates twice the annual store revenue of the $29.95 plan on BigCommerce.
On top of this, 3dcart never charges its own fee per sale, regardless which of the over 160 compatible payment gateways you select. For US merchants, there also are several “preferred” processor options (e.g., Square, Stripe, PayPal, and FattMerchant) that may give you access to discounted processing rates at the Plus and Pro subscription level.
Features & Add-Ons
3dcart prides itself on a rich supply of native, built-in features. We can vouch that the feature set is robust, especially for the price. And, while it’s true that 3dcart has managed to avoid some of the excessive “app creep” from which Shopify suffers, you can still connect with lots of useful third-party software via the app store.
We’ve mentioned that packed-in features can result in sacrificed user-friendliness. 3dcart keeps some of its complexity at bay by offering advanced features and modules that can simply be turned on and off depending on whether you need them.
Here are just a few of 3dcart’s noteworthy features:
Unlimited product options/variants
Single-page checkout
Robust discount/coupon engine
Real-time shipping calculations
Create/print shipping labels in-dashboard
Gift certificates on all plans
Wish lists & gift registries
Customer reviews & product Q&A
Abandoned cart recovery
Waiting list & pre-orders
Ease Of Use
When it comes to actually working with all of 3dcart’s plentiful features, we’re still looking at a user-friendly platform overall. You should just be aware that the learning curve you encounter may be slightly steeper than it is for Shopify (and perhaps BigCommerce as well) depending on your experience.
Like many worthwhile endeavors, 3dcart simply requires you put in a bit more effort in order to get more out of it in the end. The menus go a little deeper, the dashboard screens are more complex, and some advanced functions can be a little tricky to locate and use at first. Still, the basic setup and navigation are comparable to the ecommerce platforms we’ve discussed so far. You won’t need coding knowledge to operate your store.
Web Design
3dcart recently streamlined its entire theme marketplace, resulting in less quantity and more quality. The revamp brought 3dcart into better stylistic alignment with the ecommerce competitors we’ve discussed so far, but we’re still missing a bit of variety and uniqueness amongst the remaining options.
Of the 45 total themes available, about half are free, and more than half were created by 3dcart. Premium themes range from $149-$249.
With 3dcart, you get a very basic theme editor to change out photos and font colors, but you can’t rearrange any page elements:
Beyond these simple changes, you must use HTML and CSS inside the template editor:
Customer Support
Another key reason 3dcart makes our “best” list is the availability of 24/7 phone, live chat, email support. The only subscription that doesn’t offer phone support is the $19/month plan, but you still have the ability to talk to someone in real time with live chat. Support quality and responsiveness receive mixed reviews, but this is typical of all the software apps on our list. No ecommerce solution has cracked the code for keeping 100% of customers satisfied, but we’ll let you know if any of them do!
You’ll also have access to plenty of online resources produced by 3dcart, as well as an active community forum. Just note that while the knowledgebase articles are helpful, they’re sometimes low on screenshots and high on text.
Who Is 3dcart Best For?
We think 3dcart is a solid option for small-to-midsize businesses owners on a budget who still appreciate lots of built-in features. If you’ve experimented with Shopify or BigCommerce and felt a little boxed in when it came to flexibility and customization, and as long as you’re not intimidated by a relatively detail-oriented system, 3dcart opens up options for you. Or, if you’re skeptical of jumping on the Shopify bandwagon just because “everybody’s doing it,” and you balk at feeling hemmed into Shopify Payments lest you pay a penalty, 3dcart may be just the alternative you seek. Not to mention, we appreciate your Maverick spirit!
3dcart has a tried-and-true and even somewhat old school vibe, but without feeling clunky or inflexible. It has managed to stick around amongst an onslaught of newer competitors by quietly improving the quantity and quality of its core offerings over time. Meanwhile, you can still add on plenty of extra features via the app market, or do a bit of template tinkering on your own with basic coding knowledge.
4. Ecwid
Ecwid diverges the most from the software options we’ve discussed so far. At its core, Ecwid is an ecommerce shopping cart plugin (or “widget,” as the name implies) you can embed into an existing website. In this way, Ecwid is similar to WordPress’ WooCommerce, except you can add Ecwid to any website, not just WordPress sites. Ecwid also allows you to create a very basic standalone website and sell up to 10 products — for free! The company claims over 1.5 million users, which is significantly more than Shopify’s 600,ooo. The availability of a free plan likely has a lot to do with that!
Pricing
Subscription levels are organized by several aspects: available features, number of listed products, file storage, customer service access, and number of staff accounts. We’ve described the details of each level in our main Ecwid review, but here’s a quick summary:
Free: $0/mo. (10 Products)
Venture: $15/mo. (100 Products)
Business: $35/mo. (2500 Products)
Unlimited: $99/mo. (Unlimited products)
Happily, Ecwid does not charge an additional commission per sale. Along with offering around 50 payment gateway options for your store, Ecwid also has a special partnership with a payments provider called WePay. Together, they created Ecwid Payments, which offers discounted payment processing rates for merchants in the US, UK, and Canada. And, if you accept ACH or direct bank payments at your store (which is cheaper than accepting credit cards), you also qualify for discounted rates on those transactions with Ecwid Payments.
Features & Add-Ons
With Ecwid’s freemium pricing model, you can expect several new features unlocked at each subscription level. The free plan will definitely get you started with a small online store, but we don’t see most serious sellers staying on this plan for long. Fairly basic features such as inventory management, discounts, SEO tools, and access to the Ecwid app store require a paid plan. The Ecwid app store is on the smaller side, but you’ll still find several ecommerce staples in the shipping, tax, and accounting categories. And, don’t forget that if you’re embedding the Ecwid shop widget into another website, you’ll have access to that sitebuilder’s integrations as well.
Noteworthy Ecwid features include:
Create & edit orders
Several POS integration options, including mobile POS
Abandoned cart recovery
Branded shopping app for your store
Automatic tax calculations
Wholesale pricing groups
Mobile store management app
Ease Of Use
Intuitive dashboard navigation and foolproof feature manipulation make Ecwid an extremely user-friendly platform. Ecwid’s ease of use closely rivals Shopify’s. The Ecwid backend was clearly designed with the ecommerce beginner in mind.
Web Design
Remember that Ecwid’s main purpose is to act as a shopping cart plugin for an existing website that already has an established look and feel. That said, Ecwid does provide one theme template for a standalone online store. Here’s my in-progress edit of the starter template:
There aren’t a lot of customizations you can make to this starter website besides adding your own main image, your store name, and your 10 products. If your store is embedded into an existing website, you can purchase a third-party theme that helps your shop tie in with the rest of the site. Basically, unless you’re using the Ecwid Starter Site, web design for your storefront is largely dependent upon whatever existing sitebuilder you’re using.
Customer Support
Availability of customer support with Ecwid depends on which plan you have:
Free:Â Email only
Venture:Â Email & live chat
Business:Â Email, live chat, & phone; 2 hours of custom development (annual plan)
Unlimited:Â Email, live chat, & priority phone support; 12 hours of custom development (annual plan)
Also, note that email and live chat are not open on the weekends, and phone support is on a callback system. Despite these limitations, most users rate the actual quality of Ecwid’s support quite highly. Knowledgebase articles and video tutorials are also good quality.
Who Is Ecwid Best For?
Generally, we think Ecwid is a great option for small-to-midsize sellers. We highly recommend Ecwid for newcomers to online selling — particularly those with an established online presence who simply need to add a store component. If you love the platform your current website is built upon, and you’re already nailing your brand’s image and following, there may be no need to rush off and migrate to an all-in-one “website + ecommerce” system like the ones we’ve covered so far.
If you don’t have a website but would like to dabble in selling a few products online, you could also get an Ecwid starter site going for free while you develop a full-blown website on the side. It’s hard to argue with free! If you’re really on a shoestring budget or you’re just starting out with ecommerce, I’d encourage you to compare Ecwid’s free plan to Shopify Lite (at $9/mo.) to see which system might work best for your needs.
5. Wix
So, Ecwid built an ecommerce shopping cart widget that goes inside other website builders, but Wix is a website builder that actually built its own ecommerce widget (called Wix Stores) to go inside itself. I know, it’s a bit confusing! The point is that Wix began as a traditional sitebuilder, but now has ecommerce capability built in as well. Combining new ecommerce tools with its existing popularity in the no-coding-required-website-design niche, Wix presents quite an attractive (both figuratively and literally) option for online sellers.
Pricing
You may have heard that Wix lets you create a website for free. While this is true, you need a paid plan to use Wix’s ecommerce features. Below are your ecommerce subscription options, defined by file storage, customer support, and whether or not email marketing campaigns are included:
Business Basic: $25/month (20GB storage)
Business Unlimited: $30/month (35GB storage)
Business VIP: $40/month (50GB storage)
We’ve listed the true month-to-month price here, even though Wix advertises its monthly price if you pay for a full year. This drops the prices to $20, $30, and $35, respectively. All of the other platforms we’ve highlighted also offer discounts when paying annually — Wix just leads with these discounted figures in its advertising.
Regardless of which payment processor you choose (there are currently close to 20 options), Wix never charges an extra commission per sale.
Features & Add-Ons
If you choose to build an ecommerce website with Wix from scratch, the core of your site will be built upon the Wix Stores app. If, however, you already have a different type of Wix website (e.g., restaurant, hotel, photography site, etc.) and want to add an online shop, you simply switch to a Business subscription plan and add the Wix Stores app to your dashboard.
Wix is still working on adding some features that are becoming more standard amongst ecommerce platforms (like abandoned cart recovery), but we like a lot of what it has on offer so far:
Email marketing
Integrate with Square POS
Mobile app for store management
Send & manage invoices
Checkout on your own domain
SEO Tools
Create discounts & coupons
Inventory & order management
Library of stock photos for your site
The Wix app marketplace includes hundreds of apps, but not all are ecommerce-specific. You may also notice limited pre-built connections to third-party integrations (shipping and accounting software, for example). These sorts of apps become more indispensable as a store grows, but are not as critical for a store that manages fewer products and orders.
Ease Of Use
Wix Stores integrates seamlessly with the rest of the Wix dashboard. eCommerce features and settings are simply added to the left sidebar menu, like in any other ecommerce platform. Further dashboards open as you explore each individual feature (like adding a product or creating a coupon). Wix is defined in the DIY web design market by its ease-of-use, and this extends to its ecommerce functionality as well.
Web Design
There are actually two ways to design an ecommerce storefront in Wix. The first begins in a familiar fashion — selecting a template.
Wix offers over 500 templates to choose from, with over 70 of these already built upon the Wix Stores app (although you can easily add the app to any template). A nice perk of Wix’s template system is that all are included free with a Business subscription to Wix. The only tricky part is that you can’t switch templates once get your store up and running!
Wix provides the most flexible no-coding-required theme editor of any ecommerce platform we’ve covered here. Rather than simply dragging and dropping elements up and down your pages, you can adjust and place page elements virtually anywhere.
The second (and even easier) method of creating an ecommerce website with Wix is via Wix ADI (Artificial Design Intelligence). If you choose this option, you’ll be asked a series of detailed questions about your business, and Wix will use this information to draft a storefront for you.
Sites created with Wix ADI also have a theme editor available, but this editor’s flexibility is more limited than the standard WIX editor. Nevertheless, it’s comparable to Shopify’s drag-and-drop editor. You can stack and arrange elements up and down your pages.
If you decide you’d like to micromanage your design a bit more after creating your Wix ADI site, you’re welcome to switch over to the more advanced theme editor. You just can’t switch back to Wix ADI without losing your changes.
Customer Support
Here’s a quick rundown of Wix’s customer support channels:
Phone:Â Callback service open Monday-Friday, 5AM-5PM Pacific
Email:Â 24/7
Live Chat:Â None
As you can see, the phone channel is somewhat limited, but we like that you have access to this channel of support on all plans. The Business VIP plan also offers priority support, meaning your emails and callback requests jump to the front of the queue. Wix doesn’t have as thorough a set of self-help resources specifically for ecommerce as some of the other platforms, but the resources it does maintain are well done and useful.
Who is Wix Best For?
Wix may differ from the other ecommerce platforms we’ve discussed, but we see this variety as a very good thing. This platform is a great option for merchants who need a multifunctional (but still user-friendly) website — not just an online store. The way native apps like Wix Stores, Wix Bookings, Wix Restaurants, Wix Hotels, and others weave together to form a seamless dashboard on the backend, plus an elegant web presence on the front end, is really slick.
Speaking of elegance, the other (sometimes overlapping) group of store owners Wix works nicely for are those with a smaller number of visually-detailed products. You’re probably not going to want to run a massive fulfillment and shipping operation with Wix, but small shops with aesthetic priorities are perfect for Wix.
Quick Pricing Comparison
We’ve covered a lot of ground in our comparison of these five good options for building an online store. Before we wrap this baby up, let’s recap the subscription plans for each one, along with the main ways the levels are distinguished from one another. As you’ve clearly seen, pricing is just one component of your final choice, but it’s usually where people start.
eCommerce Platforms Pricing Summary
Pricing Levels
Differences Btwn. Levels
Shopify
Lite: $9/mo.
Basic: $29/mo.
Shopify: $79/mo.
Advanced $299/mo.
Plus: Custom
Available features
Number of staff accounts
Payment processing discounts
Shopify’s commission per sale
BigCommerce
Standard: $29.95/mo.
Plus: $79.95/mo.
Pro: 249.95/mo.
Enterprise: Custom
Available features
Annual store revenue
3dcart
Startup: $19/mo.
Basic: $29/mo.
Plus: $79/mo.
Pro: $229/mo.
Enterprise: Custom
Available features
Annual store revenue
Number of products
Number of staff accounts
Ecwid
Free: $0/mo.
Venture: $15/mo.
Business: $35/mo.
Unlimited: $99/mo.
Available features
Number of products
Storage
Number of staff accounts
Customer service
Wix
Business Basic: $25/mo.
Business Unlimited: $30/mo.
Business VIP: $40/mo.
Storage
Customer service
Available features
Final Thoughts
Did you find your ecommerce match? We know it’s a lot to take in at once. The great news is that all of these platforms allow you to test the software before you buy. We’d suggest narrowing down our five suggestions to a couple that look like strong candidates for your store and starting a free trial of each. Test drive all the features you possibly can, work on customizing your storefront, and pepper customer support with questions at all hours. That’s the only way you’ll know which is the best fit, even with our attempts to simplify the decision-making process for you.
Generally speaking, the first three platforms we mentioned (Shopify, BigCommerce, and 3dcart) are quite similar and will work for a lot of the same types and sizes of stores. 3dcart is probably the most complicated and detailed of the three out-of-the-box, and typically requires a bit more out of the user. This is not necessarily bad, though. BigCommerce may be a good middle ground between 3dcart and Shopify, combining ease-of-use with a dense set of out-of-the-box features. And, even with Shopify’s super annoying transaction fees (if you don’t use Shopify Payments), Shopify is still a very solid recommendation — it’s just good software.
Ecwid and Wix each have their own advantages as well, especially for smaller stores. Both are well-designed and user-friendly. Ecwid has an enticing free plan and can be embedded in any existing website, while Wix allows you to develop a particularly elegant and multifunctional storefront using your choice of not one, but two different methods.
We think most small business owners will find a good solution from among these five options. And, we’ll let you in on a rather little-known secret: it’s not the end of the world if you end up needing to migrate platforms. That goes for right now if you’re looking to make a switch, or later if you decide your software isn’t working for you anymore. Nevertheless, you can still head into your decision with the confidence that you’ve done your research and tested the software thoroughly before handing over your credit card. (You’re going to test them first, right? Promise? Good.)
Do you have experience with one or more of these ecommerce platforms? Let us know how you think they compare in the comments. We love feedback from real users like you!
Shopify
BigCommerce
3dcart
Ecwid
Wix
Review Visit Site
Review Visit Site
Review Visit Site
Review Visit Site
Review Visit Site
Monthly Cost
$9 – $299
$29.95 – $249.95
$19 – $229
Free – $99
$25 – $40
Core Features
Great
Excellent
Excellent
Good
Good
App Store
Very Large
Large
Moderate
Moderate
Small/Moderate
Ease Of Use
Very Easy
Easy
Moderate
Very Easy
Easy
Web Design
Great
Good
Good
OK
Excellent
Customer Support
Great
Great
Good
Good
Good
The post The Best eCommerce Platforms For Your Small Business appeared first on Merchant Maverick.
Right away, Shopify and Squarespace both score points in my book for their names. Shopify is all about helping you build an online store where customers can shop — “shop-ify-ing” a regular website, as it were. Squarespace, by comparison, is a more traditional website builder, allowing you to create a literal “square space” (or series of square spaces) where people can view your content and images on the internet.
Thank you, Shopify and Squarespace. Your names actually make sense.
Indeed, Shopify is a household name in the world of shopping cart software, whereas Squarespace is well-known for its attractive and modern site design capabilities. Squarespace is more than just a pretty face, though. In the last few years, this platform has added ecommerce functionality at a surprising level of sophistication.
If you’re here for an epic cage match between Squarespace and Shopify, I’m guessing you’re thinking about both of these platforms in terms of ecommerce. You’re in luck, because this is the precise focus of our comparison. How does Squarespace’s ecommerce functionality and design measure up to the ecommerce powerhouse that is Shopify? How do they compare in terms of pricing, customer service, and payment processing? Keep reading for our take on these and other key facets of Shopify and Squarespace.
Donât have time to read an entire article? Take a look at our top-rated eCommerce solutions for a few quick recommendations. Every option we present here offers excellent customer support, superb web templates, and easy-to-use software, all for a reasonable price.
Pricing
Winner: Squarespace
Both Shopify and Squarespace offer free 14-day trials with no credit card required, and neither charge setup or cancellation fees. From there, the two platforms begin to diverge. Here’s how the differences play out:
Shopify
Price Range:Â Choose from $29/month (Basic), $79/month (Shopify), or $299/month (Advanced) plans. There’s also a $9/month plan (Lite) for selling in-person, for embedding little “buy” buttons on other sites, and for selling on Facebook — but you don’t get an actual online store at all, so we’re leaving this plan out of our comparison for the most part.
Annual Subscription Discount:Â Save 10% when your subscription is paid annually upfront, or 20% if you pony up for two full years. For example, the Basic Plan becomes $26 or $23/month, and the Shopify Plan becomes $71 or $63/month.
Subscription Structure: All Basic ($29/month) plans and above include unlimited storage, products, and bandwidth. Higher subscription levels add a few features and additional staff accounts. Subscription levels also affect your Shopify transaction fees and your payment processing fees. Which leads us to…
Additional Transaction Fees:Â If you choose Shopify Payments (powered by Stripe) as your payment gateway, you are not charged any separate transaction fees. As an added bonus, you also see a gradual decrease in your payment processing fees with Shopify Payments as you climb the subscription ladder. However, if you use an alternative payment processor and not Shopify Payments, Shopify does charge extra transaction fees, beginning at 2.0% on the Basic plan. Thankfully, these fees gradually decrease to 1.0% and 0.5% as you increase your subscription.
Squarespace
Price Range: For ecommerce capability, you must skip over the $16/month plan and start at the $26/month (Business) level. However, merchants who’d really want to take advantage of Squarespace’s ecommerce features in a manner that’s comparable to Shopify are likely opting for the $30/month (Commerce Basic) or $46/month (Commerce Advanced) plans.
Annual Subscription Discount:Â The Business plan drops to $18, Commerce Basic to $26, and Commerce Advanced to $40 per month when paid upfront in one annual lump sum. You also qualify for a free domain registration for one year when you pay your main subscription annually.
Subscription Structure:Â Similar to Shopify, features are added as you increase your Squarespace subscription level. Bumping up to Commerce Basic or Advanced will eliminate separate Squarespace transaction fees.
Additional Transaction Fees:Â A 3.0% fee (above your gateway fees) is incurred by Squarespace on every purchase if you’re on the Business Plan. This additional transaction fee is eliminated, however, on Commerce Basic and Advanced.
For a direct comparison with Shopify, use the smaller print, month-to-month figures for Squarespace (Commerce Basic $30 and Commerce Advanced $46). Shopify promotes month-to-month figures ($29, $79, or $299).
Confusing enough for you? With all these pricing components, you can’t actually perform a true apples-to-apples comparison of cost. In truth, both Shopify and Squarespace offer a fair market price for their services. I will say that the transaction fee issue is problematic with both companies, especially since many competing platforms have eliminated these extra charges altogether. The good news is that each platform at least offers some way out of these fees.
In the end, I’m primarily basing my pricing verdict on one key factor: Squarespace offers its complete arsenal of features for only $46/month ($40/month if paid annually). In contrast, Shopify reserves its premium features for sellers with much deeper pockets (six and a half times deeper, to be exact). The big question is: does Squarespace offer enough ecommerce features at that $46/month level? The answer will depend on your business needs, but you can keep reading to develop a clearer picture of each platform.
Cloud-Based Or Locally-Installed
Winner: Tie
Your Shopify or Squarespace store will be fully-hosted. No need to download and install either one locally.
Specific Size Of Business
Winner: Shopify
Both platforms allow unlimited bandwidth and products, but Shopify is better at accommodating a wider range of business sizes and product catalogs. In addition, Shopify provides a natural growth option via Shopify Plus, whereas Squarespace offers no enterprise-level plan at this time. On the other hand, if you happen to sell a handful of very expensive products (and that’s what makes your business “big”), Squarespace could still work swimmingly for you.
Hardware & Software Requirements
Winner: Tie
Since Squarespace and Shopify are both SaaS (Software as a Service) platforms, you only need a computer, an internet connection, and an up-to-date browser to use either service. Both also provide Android and iOS apps for managing and editing your store.
Regarding supported browsers, Squarespace edges out Shopify by offering Chrome and Safari support on Linux operating systems, while Shopify only works with Windows and Mac. Meanwhile, Shopify stores are optimized for Samsung Internet in addition to Chrome and Safari browsers when viewed on mobile. Depending on your point of view, these finer points may or may not make a difference, so I’m still calling it a draw in this category.
Ease Of Use
Winner: Shopify
With both platforms specializing in general ease of use, we really need to examine Squarespace and Shopify in terms of usability for ecommerce.
Neither platform has a dedicated setup tutorial inside the dashboard, but both have documentation and instructional videos handy. If you’re accustomed to using or testing popular ecommerce platforms like Shopify, Squarespace will definitely have its own learning curve. Once I got the hang of it, though, I could operate the backend quite smoothly.
When you create a trial account with Shopify, you’re taken to the main admin panel. Shopify’s admin is structured like most ecommerce dashboards I’ve seen. Although you can preview your storefront at any time, your backend functions are kept separate from the storefront.
Shopify Dashboard:
With Squarespace, however, you must choose a theme (you can change it later) before you even get to see your admin panel. Once the admin opens, your dashboard is actually a combination of your backend control panel on the left, and your storefront preview on the right.
Squarespace Dashboard:
Although I can vouch that both platforms are very easy to use in the grand scheme, I find navigation of Squarespace’s backend to be slightly trickier than Shopify’s. The Squarespace UI is structured so that there are more dashboard layers to dig through — and then dig back out of again. Additionally, the left control panel menu changes (or even disappears) depending on what layer you happen to be in at the moment, which can be disorienting. This is in contrast to Shopify’s menu, which remains a fixed anchor point for admin navigation.
Take a quick look at the following screens from each platform to see what I mean:
Add A Product — Shopify:
You can see above that my main menu remains fixed on the left side of the dashboard as I enter my product details.
Add A Product — Squarespace:
With Squarespace, I’m already a couple of dashboard layers in, my left sidebar is gone, and I must dive one more screen deep from here to even enter my price. Also, what is not shown above is that you can’t just jump right in and start adding products with Squarespace like you can with Shopify and other online store builders. Even with Squarespace’s ecommerce-friendly templates, you must create a separate product page for your website first. I admit I had to resort to Squarespace’s documentation to figure this out, since I’m accustomed to ecommerce dashboards that make adding your first product a completely frictionless process.
Adding and managing inventory is just one piece of running an online store, but it remains a reliable ease of use test case. While you can list unlimited products with Squarespace, I think the backend interface is better designed for sellers offering a relatively small number of aesthetically-oriented products. Merchants with a large inventory will appreciate Shopify’s clear menus, efficient navigation, and the way in which product data is ultimately organized.
Features
Winner: Shopify
Shopify is the deserving winner in the features category. With solid out-of-the-box functionality and a rich add-on ecosystem, the blunt truth is that Shopify has spent much more time and resources cultivating features specifically for online sellers.
That said, there are a few features Squarespace offers that even Shopify lacks. Another thing to keep in mind is that Squarespace’s comparatively small feature set may still be just right for certain sizes and types of companies.
Key features of both platforms include:
Unlimited products, bandwidth, and storage
Free SSL certificate
Sell physical or digital products
Shipping & accounting integrations
Inventory & order management
Offer gift cards
Create discounts and coupons
Checkout on your domain
Abandoned cart recovery
Guest checkout & customer accounts
Real-time, carrier-calculated shipping
Analytics & reports
SEO tools
I’d say the Shopify versions of some of the above features are stronger or more versatile than the Squarespace versions. For example, the discount engine is much more flexible with Shopify.
Now, here are a few features that differentiate the two platforms:
Shopify
App store with thousands of integrations
Point of sale integration (Shopify POS or third-party POS)
Manual order creation (virtual terminal)
Proprietary shipping platform (Shopify Shipping) for carrier discounts and label printing
Extensive dropshipping capability
Enterprise expansion available via Shopify Plus
Abandoned cart recovery at cheaper plan level
Squarespace
Unlimited staff contributors on all ecommerce plans
G Suite integration (full year free)
$100 Google AdWords voucher
Free domain for a year if you pay annually
Customizable checkout forms
In-dashboard product image editing
Third-party calculated shipping rates at cheaper plan level
Web Design
Winner: Squarespace
Both platforms offer elegant, modern templates that are fully mobile responsive. Here’s a quick comparison of template stats:
Shopify Themes
67 total templates, most with 2-4 style variations
10 templates are free and supported by Shopify developers
Remaining third-party themes cost $140-$180
Squarespace Themes
90 templates organized into 21 template families
All templates are free and supported by Squarespace developers
Within these themes, both platforms facilitate the adjustment of fonts, colors, and layouts without any coding experience. In fact, I’d say both services offer more flexibility in this area than the average ecommerce store builder. If you still run into design limitations or simply want to alter the code, each site builder makes it relatively easy to customize your store with HTML, CSS, and Javascript.
The overall web design winner is a tough one to call, because that decision really depends on the type and number of products you intend to sell, with Squarespace catering to smaller catalogs with visual interest. If we were deciding strictly based on the variety of pre-made templates designed for stores selling lots of stuff, Shopify would snag the win.
That said, here are some ways Squarespace stands out when it comes to design:
All templates are free, and all are created and supported by Squarespace.
Offers a more versatile drag-and-drop editor for page layout customization.
Allows you to edit your product images from within your dashboard.
Uses a common templating language (JSON), versus Shopify’s own invented language (Liquid).
Was this category too close to call? Share your thoughts in the comments!
Integrations & Add-Ons
Winner: Shopify
Shopify has an impressive app store with around 2500 integrations —Â more than the vast majority of SaaS ecommerce platforms at large. While add-ons can certainly increase your monthly expenditure with Shopify, there’s no denying that your choices are plentiful. Plus, since a huge community of developers and merchants interact with Shopify apps, you also have access to thousands upon thousands of detailed user reviews.
Squarespace takes a completely different approach to integrations. No app store is offered, but Squarespace spins this as an advantage. Any pre-built integrations (about 70 in total) are already incorporated into your dashboard and fully tech-supported by Squarespace. Aside from payment providers (Stripe, PayPal, Apple Pay) and shipping carriers (UPS, USPS, and FedEx), there are just a small handful of official Squarespace integrations specifically related to ecommerce. Here are a few key add-ons:
ShipStation: Order fulfillment
Xero: Accounting
MailChimp: Email marketing
Zapier: Workflow automation, multi-app connector
Just like many Shopify apps, several Squarespace apps have monthly subscription fees of their own. And, just like with Shopify, you can always build custom integrations if you have those skills or can hire someone who does. To put things in quick perspective, however, Squarespace has one official shipping/fulfillment app in ShipStation. Shopify has over 280 choices in its “Orders & Shipping” category, and over 600 results pop up if I simply type “shipping” in the app store’s search bar.
The win in this category goes to Shopify, the reigning monarch of ecommerce integrations. Besides keeping decision-making overload at bay, the trick with Shopify add-ons is to always check the quality (including quality of developer support) and ongoing cost of each integration.
Payment Processing
Winner: Shopify
Shopify wins at payment processing for one primary reason:Â flexibility. Consider the sheer number of gateway options with Shopify — over 100. With Squarespace, Stripe and PayPal are your only choices. More gateway options means availability in more countries and currencies, more ways for your customers to pay, better odds of finding the perfect processor for your specific needs, and even the opportunity to customize your own pricing model and rates in some cases. With Shopify, you can also accept cryptocurrencies or set up manual payment methods like cash on delivery, money orders, and bank transfers.
This is not the end of the story, however. Factor in the additional transaction fees that may be charged by either platform depending on your situation, as well as Shopify’s payment processing discounts with Shopify Payments (powered by Stripe), and the comparison becomes more nuanced.
As we examine these complications further, keep in mind that the going rate to process ecommerce transactions with most gateways these days is 2.9% + $0.30.
Here’s how your processing will work with Squarespace according to your subscription level:
Squarespace + PayPal and/or Stripe
Business ($26/mo.): 2.9% + $0.30, + 3.0% Squarespace fee = 5.9% + $0.30 per transaction
Commerce Basic ($30/mo.):Â 2.9% + $0.30
Commerce Advanced ($46/mo.):Â 2.9% + $0.30
Those are the only potential processing costs you’re looking at with Squarespace. That additional 3.0% Squarespace fee on the Business plan is pretty brutal, but as soon as you upgrade to Commerce Basic for an extra $4/month, it disappears. For this reason, I don’t think the Business plan is a sustainable option for most ecommerce stores.
Now, let’s take a quick look at Shopify, remembering that using Shopify Payments as your gateway provides two perks: 1) no extra Shopify transaction fee on any plan, and 2) decreased payment processing fees as you upgrade your overall Shopify subscription.
Another twist is that Shopify Payments is currently only available for businesses located in 10 countries, so you’re stuck with an alternative gateway and that pesky Shopify transaction fee if your country isn’t included. (Squarespace at least doesn’t punish you for something you can’t control — your location.) On the flip side, if you are in one of the supported countries, you could opt to use Shopify Payments in addition to any of the other gateways Shopify offers to increase your customers’ payment options.
In a perfect world, both platforms would let you pick your own processor from among many, and never penalize you with extra transaction fees for any reason! Both Shopify and Squarespace have their own flaws in this regard.
So, what does this all mean for your business? The short answer is math. To determine the real winner in this category for your own company, you must consider your monthly subscription cost to either platform, your average number of transactions per month, and your average transaction size — not to mention the countries and currencies involved. Because the best platform and subscription level for your business depends on these and other factors, I award Shopify the payment processing win for at least making things interesting!
Customer Service & Technical Support
Winner: Shopify
In terms of overall quality of customer support, both Shopify and Squarespace receive mixed user reviews. That said, Merchant Maverick’s own experiences with customer service and technical support would award Shopify the victory in this category. We’ve had better luck contacting the Shopify support team through the available channels — even when they’ve been unaware that we are software reviewers on the prowl.
Shopify also has more available support channels and more open-hours. Take a look:
Shopify
Phone: 24/7
Email: 24/7
Live Chat: 24/7
Squarespace
Phone: None
Email: 24/7
Live Chat: Monday-Friday, 4AM-8PM
Squarespace publishes a whole manifesto on its website explaining why no phone support is offered if you’d like to read it for yourself. Although they don’t come right out and say it, the bottom line is that this helps keep overall costs down. Meanwhile, not being able to contact a live person (even via live chat) after 5pm Pacific time is pretty brutal if you’re running an online store. Squarespace should know better — ecommerce never sleeps:
One final note in this category: both platforms provide several self-help resources — community forums, blogs, video tutorials, webinars, knowledgebase articles, and the like. However, note that Shopify resources are 100% geared toward ecommerce, whereas you’ll have to wade through other topics to find ecommerce resources at the Squarespace site.
Negative Reviews & Complaints
Winner: Squarespace
When comparing user reviews for these platforms, it’s important to keep in mind the difficulty in teasing out feedback on Squarespace that is specifically related to ecommerce. Despite its growing ecommerce capability, Squarespace typically ends up in the generic website builder category on most review sites, with users discussing traditional website building issues.
Those caveats aside, here are some of the most common issues that come up for each platform:
Shopify
Extra transaction fees when not using Shopify Payments
Costly add-ons
Poor customer support
Frustration with Shopify Payments
Squarespace
Glitches & bugs
Poor/limited customer support
Limited theme customization
Of course, traditional website builders tend to get raked over the coals for the slightest theme customization limitations. We’ve already said Squarespace’s design capability is quite good overall, particularly when compared to a lot of shopping cart builders. When customers do criticize Squarespace specifically on ecommerce, there are no consistent patterns emerging so far. For this reason, I award this category to Squarespace based on a “no news is good news” argument. We’ll keep checking back for patterns.
Positive Reviews & Testimonials
Winner: Tie
Both Shopify and Squarespace tend to rate highly for overall customer satisfaction on user review websites. On top of that, both platforms are known for their ease of use and elegant templates. And, along with all the negative review of customer support both software programs have received, users of both platforms have been known to also sing praises for customer support. The combination of these factors led me to call this one a draw.
Once again, we’re faced with the dilemma that there’s not a whole lot of feedback about Squarespace’s ecommerce offerings. I have definitely seen several generic comments, such as “good for ecommerce!” Honestly, I think people are mostly pleased (and perhaps a bit surprised) that there’s some solid ecommerce capability available with Squarespace at all. I haven’t come across many users directly comparing their experiences with the two platforms.
Security
Winner: Shopify
Our combatants are quite close in this category. Both offer PCI (Payment Card Industry) compliance, a free SSL (Secure Socket Layer) certificate for your site, two-factor authentication for logging in to your account, a CDN (Content Delivery Network), and even provide methods for complying with the GDPR (General Data Protection Regulation) laws implemented by the EU in 2018.
The main difference I can see is that Shopify’s checkout pages are covered by an industry-standard, 256-bit shared SSL certificate. Squarespace’s checkout pages are covered by a less-robust, 128-bit certificate. My understanding is that while 128-bit encryption may end up working slightly faster, it’s technically less secure.
Final Verdict
Winner: Shopify
Squarespace put up a good fight in several categories, but Shopify emerges victorious as the better ecommerce website builder. Shopify’s pricing, core feature set, and vast app store can serve budding sellers on the Lite plan, all the way up to enterprise clients using Shopify Plus. Meanwhile, ecommerce was quite literally an afterthought for Squarespace. The platform’s developers have done an admirable job adding features for online selling, but they just can’t compete with Shopify’s dominance here.
As we’ve said time and again in this comparison, Squarespace still provides an interesting option for sellers who’d like to feature a small number of products with aesthetic appeal. Especially if you’ve already been using Squarespace to develop your company story and brand, I’d definitely recommend fully exploring the ecommerce feature set — perhaps by bumping up your subscription for just month or two — before completely abandoning ship for Shopify or another dedicated shopping cart builder.
I’ll offer one more interesting twist before you head off to test Shopify and/or Squarespace for yourself. Some users have actually used the two services in combination. How? By integrating those “buy now” buttons from a $9/month Shopify Lite plan into an existing Squarespace website. It’s a roundabout option, to be sure, but it also gives you access to in-person selling with the Shopify POS app. At any rate, take that as some final food for thought, and best of luck in your search for the perfect ecommerce platform.
The post Shopify VS Squarespace appeared first on Merchant Maverick.
If you know anything about web development, you know about WordPress. WordPress is now the most popular Content Management System (CMS) in the world, powering over 31% of websites globally. In fact, WordPress is the software behind the very website you’re currently on!
As an everyday WordPress user myself, I can say with confidence that WordPress is a great CMS for many purposes, including online selling. The software is open-source and popular, meaning that itâs fully customizable and that there are plug-ins available to extend the functionality of the software.
While itâs true that WordPress was originally built as a blogging platform, several eCommerce plugins make it possible to transform your website into a full-fledged online store. In this article, weâll be taking a look at three of the most popular eCommerce software systems that work with WordPress.
But first, letâs take a look at WordPress as a stand-alone software.
Is WordPress Easy To Use?
WordPress is a very learnable software. The software is fairly easy to use once you get the hang of things. However, this initial learning process may take some time.
This is particularly true if you are new to web development. As open-source software, WordPress is not exactly plug-and-play. In order to get your site online, youâll have to find your own web host and then install WordPress on your hosting account. In addition, you will be responsible for maintaining your siteâs security.
Once youâve finished setting everything up, you will find that when it comes to daily operations, WordPress is very usable.
As you consider using WordPress for your online store, youâll have to keep in mind the pros and cons of the software. Hereâs a quick breakdown of those advantages and disadvantages:
Pros
Open Source: Because WordPress is open source, you have the freedom to modify the software however you choose. In addition, you can choose to sell your modifications to other users!
Free: WordPress is free to download and use. However, you should note that operating a website comes with other expenses. Take a look at our âConsâ list for more information.
Large User Community: With so many bloggers, sellers, and developers using WordPress, you can expect to find lively community forums in WordPressâs support resources. Get help from fellow users or purchase plug-ins from a wide range of developers.
Reliable Software:Â You can depend on WordPress as a glitch-free CMS.
Lots Of Plug-Ins Available: WordPress and third-party developers alike have put out thousands of plug-ins that you can purchase and install to add features to your platform.
Cons
For Do-It-Yourselfers Only: When you use WordPress, you will be responsible for managing your web hosting and site security.
Some Experience Required: You either must have some experience editing HTML/CSS or you must be willing to learn.
Limited Technical Support: WordPress offers some support via email and live chat. However, for the most part, youâre on your own when it comes to technical issues.
Common Target For Hackers: Open source software is often the target of security attacks. Youâll have to keep an eye out for any new security patches.
Difficult To Estimate Total Costs: Although WordPress is free to use, you will still have to pay the typical costs of operating a website. Youâll need to pay for hosting, an SSL certificate, a theme, and any plug-ins you choose to use.
Now you know a bit more about the usability of WordPress, letâs start talking about our favorite eCommerce plug-ins for WordPress! All three of the following plug-ins are affordable, easy-to-use, and easy to integrate with any WordPress website.
Letâs get started!
WooCommmerce
WooCommerce is a free, open source eCommerce plug-in that is designed specifically to be used with WordPress. WooCommerce fits businesses of all sizes, from startup to enterprise. In fact, WooCommerce has been downloaded over 48 million times, making it one of the most popular eCommerce solutions in the world.
WooCommerce is easy to incorporate into your WordPress site. All you have to do is install and activate the WooCommerce app in your âPlug-insâ tab. Activating this plug-in turns your blogging back-end into an online store admin. Take a look:
In this dashboard, you can manage everything for your online store. For example, you can create products, access pending orders, adjust shipping setting, enter product information, and set up inventory tracking.
WooCommerce provides enough features to handle all the basic operations of online selling. Everything else is available as an extension. Here are a few of the features built-in:
Sell Digital & Physical Products
Inventory Management Features
Shipping Calculator & Shipping Options (Pickup, Local Delivery, Calculated Shipping)
SEO Features
Coupons & Discounts
WooCommerce offers lots of themes to choose from. Most of these are designed by third-parties; however, WooCommerce also creates its own designs called âWooThemes.â We recommend you stick with these WooThemes as they tend to work best with WooCommerce updates. For the most part, in order to change large aspects of these designs, you will be required to edit the HTML and CSS.
Like WordPress, WooCommerce offers very limited customer support to their customers. You are mostly on your own. Fortunately, WooCommerce does have a detailed knowledge base as well as a supportive user community to help you through any difficulties.
We love WooCommerce for its customizability, its scalability, and of course, its price. To learn more about WooCommerce, take a look at our full review of the software. Or, download WooCommerce today to test it for yourself.
Ecwid
Another plug-in you might consider using is Ecwid. Ecwid is an eCommerce software that lets you incorporate shopping cart widgets–such as buy buttons or a full online store–into any pre-built website. Ecwid is a perfect solution for small to medium-sized businesses that want a simple way to add an online store to their website. Over one million merchants currently use Ecwid for their online selling.
Ecwid is a SaaS (software as a service) solution, which means that although you have to find hosting for your WordPress site, hosting for your Ecwid store is already included. Instead, you’ll just have to pay a monthly price to use the software. This price depends primarily on the number of products you plan on listing. Each step up in pricing also includes more advanced features. Take a look below for a quick breakdown of pricing:
Free Plan: $0/Month
10 Products
Venture: $15/Month
100 Products
Business: $35/Month
2,500 Products
Unlimited: $99/Month
Unlimited Products
To add Ecwid to your WordPress account, sign for an Ecwid account at ecwid.com. Then, install and activate the app in your WordPress dashboard. Completing these actions will let you make changes to your Ecwid store from WordPress.
Hereâs a look at Ecwidâs dashboard within WordPress:
Alternatively, you can choose to manage your store from Ecwidâs own dashboard. Since the two programs are now connected, every change you make in Ecwid will be reflected in your WordPress site. Here’s Ecwid’s dashboard:
We recommend using Ecwidâs dashboard to manage your online store. We think Ecwidâs dashboard is more intuitive and easier to use in general.
Using Ecwid will give you access to many of the necessary selling features. Here are a few of our favorites:
Buy Buttons
Multi-Channel Selling
Real-Time Shipping Rates
Promotions & Discounts
Sell Digital Products
Mobile Management App
Ecwid supplies users with one Starter Site theme that you can use to develop your storefront using drag-and-drop tools. There are also third-party themes available as well as HTML and CSS editors for more in-depth customization.
As is typical with SaaS solutions, Ecwid provides technical support through several channels. Your pricing plan will determine how you are able to reach customer support, whether that is through email, live chat, or phone. Everyone has access to a knowledge base and community support forums. Remember, Ecwid can only help with issues related to their software. They do not provide WordPress support.
Ecwid is a great solution for any merchant whoâs looking for a simple way to sell products on their website. The app is easy to use with WordPress, itâs affordable, and it works. For more information, read our full review or sign up for Ecwidâs free plan to try it out.
Selz
Selz is another SaaS shopping cart solution that plugs into any website. Like Ecwid, Selz offers users both ease of use and versatility. Selz gives merchants the option of adding eCommerce features to any website in a variety of ways. You can choose to add an online store to an established website, embed buy buttons for select products, sell directly on social media, or set up a fully hosted online store.
Selz is designed for startups, artists, writers, and musicians, and the platform currently serves over 100,000 merchants worldwide. Ease of use is Selzâs strongest feature, which is wonderful for many beginning merchants.
On the other hand, sometimes Selzâs ease of use can be a limiting factor for sellers who are looking to grow. Selz does not offer many advanced features or integrations. Nevertheless, many sellers find that Selz fits their needs perfectly.
As a SaaS solution, Selz charges a monthly fee for the use of their software. There are four plans to choose from. These plans are organized by the number of products you plan to list. Additional features are available on higher level plans. Hereâs a quick overview of pricing:
Free Plan: $0/Month
5 Product Maximum
2% Transaction Fee
Lite Plan: $19/Month
Unlimited Products
2% Transaction Fee
Standard Plan: $29/Month
Unlimited Products
1% Transaction Fee
Pro Plan: $49/Month
Unlimited Products
0.5% Transaction Fee
No Transaction Fee If Using Selz Pay
To add Selz to your WordPress site, youâll have to create a Selz account and then install and activate the Selz app in your WordPress dashboard.
Then, head back into your Selz dashboard. Using this dashboard, you can create products and discounts, process orders, and manage shipping settings. In order to test your setup with WordPress, you should add at least one or two products.
Now, you can decide how youâd like to add eCommerce to your site, whether that’s via buy buttons or an entire online store. When you make your decision, youâll just have to follow Selzâs instructions to add products to your WordPress site.
During my testing, I decided to add my entire Selz store to WordPress. I looked into Selzâs instructions, but I had a bit of difficulty locating the correct buttons. I eventually figured out that WordPressâs new Gutenberg editor was complicating the process. Selz has not yet updated their support documentation to provide instructions for this new WordPress version. When I switched back to WordPressâs older Classic Editor, I was able to quickly integrate my store.
While both WooCommerce and Ecwid give you access to store management features within your WordPress dashboard, this is not the case with Selz. In order to add new products, process orders, etc. you will have to log back into your Selz dashboard.
Selz offers the basic features you need for online selling. Although Selz focuses mostly on the basics, they do include a few advanced features such as abandoned cart recovery and digital downloads. Take a look at a few of Selzâs features:
Sell Anywhere
Sell Physical & Digital Products
Real-Time Shipping Rates
Pay What You Want
Discounts & Coupons
Multi-Currency Capabilities
Abandoned Cart Recovery
When it comes to web design, Selz users are all set. There are 25 beautiful, image-focused designs to choose from, and theyâre all free. Users can customize these designs by using the drag-and-drop editor or the HTML/CSS editors.
Support is available for all Selz users in the form of 24/7 live chat and email. There is also a Help Center full of useful documentation for users who prefer a do-it-yourself approach. As always, youâll have to keep in mind that while Selz representatives love to help you use their software, they canât help when it comes to WordPress difficulties.
Selz is a perfect solution for makers and startups who want to get their online stores started quickly. In particular, Selz works well for merchants who want to offer lots of digital products. If this sounds like you, head over to our full Selz review for more information. Or, you can take a look at Selz yourself.
Final Thoughts
So, is WordPress easy to use for eCommerce? We certainly think so, especially when you use the right eCommerce plug-in.
Take a deeper look at any of the three options we present above, and donât be afraid to test out the plug-ins before you commit. All of these eCommerce solutions offer a free platform (or free download) so you can integrate the software with your WordPress site without paying a dime. And if you decide it isnât a good fit for you, itâs easy to deactivate the integration. In fact, it just takes a few clicks.
So, what are you waiting for? Head over to our reviews or sign up for one of these shopping carts and get testing!
The post Is WordPress Easy To Use For eCommerce? appeared first on Merchant Maverick.
As a reviewer of website builders, you might say I have a vested interest in promoting the main idea undergirding the DIY website builder: The notion that anybody, given access to inexpensive online editing tools, can create a perfectly functional website for their business or for themselves. However, there are plenty of reasons why a prospective website owner might seek to go another route. Perhaps you want more functionality out of your website than Squarespace or Wix can provide. Or maybe you simply have more pressing business or personal priorities than personally creating the website you want.
An obvious alternative to using a website builder is to hire a web designer to create your site. Sadly, this option is out of the reach of anybody who doesn’t have thousands of dollars (or more) on hand to spend on a website. That’s where intermediary web companies like Webbased.com come in. Webbased.com is a company that offers a variety of web services, including web design, SEO, support, and marketing. It’s meant to be kind of a one-stop shop for getting your website created, marketed, and monetized. Let’s take a closer look at what they have to offer.
Webbased.com: Services Offered
Here are the service packages webbased.com has to offer:
Web design services
5 to 15 unique page designs
$99/month to $249/month
Local search engine optimization
Get found by local clients
$299/month to $999/month
National search engine optimization
Boost your search rankings in Google, Yahoo, and Bing
Get a marketing dashboard with stats
$698/month to $2978/month
Pay-per-click management (eCommerce)
ECommerce PPC management — best for businesses with products with SKUs
$158/month to $298/month
Pay-per-click management (local)
Increase brand exposure in a specific geographic area
$218/month to $1480/month
Pay-per-click management (national)
PPC management services
$478/month to $3198/month
Pay-per-click management (retargeting)
Boost your ROI by re-engaging previous users
$158/month to $398/month
Animated video explainer
Boost your conversion rates with explainer videos
$199/month to $529/month
Video production services
Get videos made for any marketing purpose
$249/month to $625/month
Social media management
Social media team manages your social media presence
Detailed auditing and reporting
$199/month to $999/month
Logo design services
$299 (one-time charge)
Landing page design
$229/month
WordPress maintenance and hosting
Get maintenance, security, and updates for your WordPress site
$44.99/month to $99.99/month
WordPress optimization and performance tuning
$99/month to $369/month
WordPress support and help
Get updates and maintenance on your WordPress website
$59 (one-time charge)
Merchant services
 Better rates than PayPal and Square
Fully integrated into your site
$20/month
Additionally, if you have an existing business website, webbased.com will analyse your site, free of charge, and send you a report assessing your site based on a number of metrics: speed, security, page views, conversion rate, mobile-compatibility, and SEO.
Here’s webbased’s full list of services, detailing everything that’s included in their product packages along with pricing.
Customer Service & Support
Webbased.com provides a plethora of ways to get in touch with a company rep. In addition to the standard email contact form, there’s a phone support line and live chat. There’s even a chat room you can join between the hours of 9:30 AM and 2:30 PM Pacific in which you can chat with Webbased’s developers about any issues you might have with your website.
Reviews Of Webbased.com
On its website, webbased.com actually directs users to review their services on both Google and Yelp — a sign of confidence in its products. The reviews posted by customers on these two sites are almost entirely complimentary, with users praising both the services offered and the customer support they received. One user’s opinion is fairly representative:
They provided creativity, valuable feedback, analysis and guidance in designing our logo, website, SEO optimization and producing our live company video.
The users with complaints get replies from the company — it’s always good to see companies responding in good faith to the complaints of their users.
Final Thoughts
Not everybody has the time and/or patience to build a website on their own, and it’s not easy for the layperson to personally negotiate with individual web designers over the particulars of services and pricing. Services like webbased.com help give aspiring webmasters the ability to select from a menu of services to get exactly what it is they need in a website. If you feel like passing on the heavy cyber-lifting to a team of experts, webbased.com is worth investigating.
The post Webbased.com: An Alternative To Website Builders appeared first on Merchant Maverick.
Etsy Dashboard
