Jimdo Review: Pros & Cons of Using Jimdo Website Builder

Jimdo Website Builder Review

Jimdo is known as an easy-to-use, all-inclusive website builder that is designed for people with no coding knowledge. They offer two options for website owners: a DIY builder that puts you in control of choosing a template and customizing it, or an AI website builder that uses artificial intelligence to build a template for you, then walks you through the various tweaks you can make.

See Jimdo’s Current Plans & Pricing

Recently, I gave Jimdo a try for a full Jimdo review. But before I get into the pros and cons of my Jimdo review, let’s dive into an overview about tools to build a website.

There are so many considerations to take into account when choosing a website builder — and really, there are a thousand ways to get what you want in the end in terms of functionality, convenience, pricing, etc. The thing to remember is: whether you’re building a simple personal website or running a business, the way you build your site has a lot of consequences.

In the long-term, it affects your versatility, functionality, and, of course, your brand. In the short-term, it can certainly add/take away a lot of headaches. That said, just like choosing a physical house or office, there is no such thing as an absolute “best” or “top” choice. There’s only the right choice relative to your goals, experience, and circumstances.

What Is Jimdo?

On the wide spectrum of website building solutions, Jimdo lives on the end that is all-inclusive and provides everything you need to get started and grow your website. It contrasts with solutions where you buy, install, and manage all the “pieces” of your website separately (ie, you buy a domain, hosting, and website software separately.).

Using Jimdo is sort of like leasing and customizing an apartment in a really classy development instead of buying and owning your own house. You’re still in control of decor, cleaning, and everything living-wise – but you leave the construction, plumbing, security, and infrastructure to the property owner. That point is key because there’s usually a direct tradeoff between convenience and control.

Everything may fit together just right with a website builder like Jimdo, but that may or may not be what you’re looking for.

As far as competition, Jimdo competes with all-inclusive website builders like Weebly, Wix, Squarespace, and WordPress.com.

Compared to their direct competition, they focus on using AI to create done-for-you templates and designs so you can focus on plugging in your content and getting up and running quickly.

They also offer a more traditional drag-and-drop builder for those who have more experience, making Jimdo appeal to beginners who have no design or development experience (think DIY-ers who need to create a website ASAP without having any website experience) and those who have a bit of website knowledge and want more customization abilities.

One other quick aside – a disclosure – I receive referral fees from all the companies mentioned in this post. My opinions & research are based on my experiences as either a paying customer or consultant to a paying customer.

Pros of Using Jimdo Website Builder

Here’s what I found to be the pros of using Jimdo — not just in comparison to popular website builders like Weebly and Wix, but as an overall website solution.

Straightforward Sign Up Process

One of Jimdo’s best features is how quickly you can get up and running. Signing up for the platform is a simple process that involves creating an account, verifying your details through your email, and then choosing which website builder you’d like to use.

Jimdo Product Options

One thing to note here — if you’re looking for the easiest, most hands-off way to create your website, the AI web designer is probably your best option. It goes through a series of questions and then creates your website for you, but follows the process up with a detailed, step-by-step tutorial of how to customize your base template. It’s perfect for DIYers who are brand new to building a website.

Jimdo Tutorial

Simplicity

Jimdo is also seriously simple to use, which makes it hard to mess up your website design. Once you choose a template (or have one created for you with the AI builder), you’re pretty much locked in to the layout provided.

The DIY website builder is drag and drop, but it has it’s limitation — you can add new elements to the page, but only within the template structure you’re already given (and limited to the elements provided — but more on that in a bit).

Jimdo Editor

And if you’re using the AI builder, you’re given even more structure (with that comes limitations, but again — we’ll get there). With this option, you have less drag-and-drop and more choose from what they give you. You can customize the styles on the page (like fonts and colors), and you can add premade sections and blocks, but you don’t get the ability to add elements willy nilly.

AI Editor Jimdo

The whole setup is like painting by numbers.

There are obvious drawbacks to this setup, which I will cover in the disadvantages, but it is a real advantage to having limited but accessible design options.

Website Builder Options

Part of what makes Jimdo unique is they offer two design routes — you can either use their AI website builder, which gathers information for you and creates a template based on your answers to questions like “what is your website for?” and “what is your preferred design style?”. From there, Jimdo walks you through a step-by-step tutorial for customizing your assigned website template.

Jimdo AI Set Up

Or, you can take the DIY-approach. In this approach, you select your industry and are provided with a selection of website templates to choose from. Then, you can customize the template with Jimdo’s drag and drop editor. This method is slightly more advanced, but still straightforward and controlled enough to keep newbies in check.

DIY Jimdo

One thing to note if you’re going the DIY route — I found that your industry selection doesn’t matter. I was given the same templates to choose from whether I chose business or healthcare or skipped the industry question all together.

*One additional note here. When using Jimdo for the purposes of this review, I created an additional Jimdo account through a new browser window to go through the sign up process again, and was automatically assigned to the AI website builder. Of course, there’s always a chance for user error, but as a brand new, inexperienced customer to the platform… it was confusing. It’s a potential con for using the platform, but not because of the actual user experience of the builder — it’s just a bit confusing and unclear when signing up.

Some Product Integration

Another benefit of Jimbdo is their product integrations. Aside from offering DNS and hosting services, Jimdo also offers ecommerce functionality with their paid plan (one thing to note — in order to get ecommerce functionality, you do need to choose between the two higher-priced tiers.)

Jimdo Ecommerce

We’ll talk more about pricing in a moment, but just know that you could get the same (or better) functionality for less elsewhere.

European Presence

For U.S. users, this isn’t really a pro or a con, but for those in the EU, Jimdo’s European presence makes it a strong competitor.

Jimdo is a German company and operates data centers in Europe. As a European company, this means that Jimdo’s data protection and privacy standards are much stronger thanks to the EU’s new laws on data and privacy.

Additionally, if you are a US company who needs an EU microsite for an EU audience, Jimdo makes GDPR a bit easier than some website builders focused on the US market.

Cons

But of course, no review would be complete without looking at the downsides. Every piece of software will have complaints. Let’s look at 3 specific cons I found.

Plans + Pricing

Jimdo’s pricing and plan structure is a bit confusing. When first signing up, You can see that paid plans start at $9/month paid annually, which includes your own domain, free hosting but only a 10 page limit.

Jimdo Pricing

However, if you choose a free plan and want to upgrade (which I did), the pricing options appear differently from inside your account.

Jimdo Pricing Part Two

Aside from the convoluted information, the actual competitiveness of the plans and pricing structure leaves something to be desired (err, actually a *lot* to be desired).

Compared to competitors like Wix, Gator, and Weebly, Jimdo is more expensive and has more restrictive limits.

Their free plan doesn’t even offer mobile-friendly site design (a pretty standard design feature in today’s world), and you can’t get basic Search Engine Optimization features until their mid-tier plans. Even the mid-tier Grow plans has hard limits on the number of pages and on bandwidth usage (which to me seems like a double-limit). And I’m all for over-delivering on low expectations, but the support options are seriously deficient.

Plus, there’s no option to may monthly, so you’re locked in for a year.

In short, using Jimdo is going to be more expensive than going with a competitor and more restrictive due to the design and technical limitations (more on that shortly), regardless of whether you’re using it for a year or just a few months.

Limited Feature Set – Design

With any technology product, there is almost always a trade-off between convenience and control (think Android vs. iOS)

And you can really see this trade-off with the Jimbdo website builder. The convenience of their design setup is great. It’s straightforward, fast, and not confusing at all. It puts your focus solely on getting your content onto the premade template and adding additional elements within the template that may enhance your design / user experience.

However, if you want to go anywhere beyond the basics of design, you are limited with Jimdo. In the DIY website builder, you can edit the color, the font, and the general ‘feel’ of the design. You can also choose from a few variations of the template, which essentially just have different navigation styles.

Jimdo Template Variations

With pages, you can delete and add sections and move them around, but you cannot add a page unless you add it to the navigation. You can alter the layout, but you certainly cannot edit the CSS, much less add any other design element outside of the pieces they give you.

And if you’re using the AI website builder, you’re limited even further. As I mentioned above, you can add sections and elements based on pre-built blocks, but that’s about it.

The best way to describe it is a ‘paint-by-numbers’ set up. It’s great to have the basics, but if you want to do anything extra or outside of bounds, then you’re out of luck.

If your website is growing, or becoming a bigger part of your business, the design limitations can be crippling.And unlike other website builders that attempt to solve this issue through apps, extensions, or access to the website code or HTML, there is no outlet for a Jimdo website builder website.

Limited Feature Set – Technical

The limitations on design also bleed over into technical limitations.

Technical limitations are features that you don’t know that you want until you want them, and then you find out you can’t have them.

These are things like integrations with Facebook, Pinterest, Twitter, Google Ads, social sharing options, blogging, and a whole host of every intermediate to advanced marketing tools on the internet. Now, as I mentioned above, Jimdo does give some integrations, like ecommerce and DNS/hosting services. However, there are a ton of technical features that Jimdo doesn’t provide or that are extremely limited.

For example, let’s look at Jimdo’s SEO features. I can edit the page title and description for individual pages, as well as assign noindex, nofollow, or noarchive settings. But aside from that, I’m pretty locked in to what I have aside from editing the HTML in text sections on the page. There’s no options for sitemaps, Schema, Open Graph settings – much less highly advanced options.

Jimdo SEO Options

Even the additional add-0n products are limited. There’s not much to address marketing your site, aside from adding code for Google Analytics and Facebook Analytics.

Jimdo Analtyics

Ultimately, Jimdo leaves much to be desired when it comes to product integrations and additional technical features that can help you better market your website.

Jimdo Review Conclusion

Jimdo certainly makes getting a website up and running easy, especially if you need something that’s done-for-you and requires little customization (just choose their AI website builder). They have a straightforward user-experience and easy-to-use editor/customizer that makes getting your content out there a breeze.

Check out Jimdo’s plans here.

However, there are trade-offs to consider with an all-inclusive website builder — specifically functionality, customization, and control. And this is where Jimdo falls short when compared to other all-inclusive website builders. They’re severely limited when it comes to technical features and integrations, which means if you’re looking to create a website with a base template but still have some flexibility over functionality and enhancements, Jimdo may not be the best option for you.

Not sure Jimdo fits your needs? Check out my quiz to find what the best website builder is for you based on your preferences.

The post Jimdo Review: Pros & Cons of Using Jimdo Website Builder appeared first on ShivarWeb.

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Site123 Review: Pros & Cons of using Site123 Website Builder

Site123 Review

Site123 is a fast-growing, independently-owned, website builder based in Israel focused exclusively on DIYers. They claim to be “the most intuitive and easy to use website builder on the market”.

Check out Site123’s Current Plans & Pricing

Recently, I gave Site 123 a try for a small project after receiving a few reader questions. But before I get into the pros and cons of my Site 23 review, let’s consider a bit of background on building a website in general.

There are so many considerations to take into account when choosing a website builder — and really, there are a thousand ways to get what you want in the end in terms of functionality, convenience, pricing, etc. The thing to remember is: whether you’re building a simple personal website or running a business, the way you build your site has a lot of consequences.

In the long-term, it affects your versatility, functionality, and, of course, your brand. In the short-term, it can certainly add/take away a lot of headaches. That said, just like choosing a physical house or office, there is no such thing as an absolute “best” or “top” choice. There’s only the right choice relative to your goals, experience, and circumstances.

What Is Site123?

On the wide spectrum of website building solutions, Site123 lives on the end that is all-inclusive and provides everything you need to get started and grow your website. It contrasts with solutions where you buy, install, and manage all the “pieces” of your website separately. I wrote a post on Website Builders, Explained for more background.

Using Site123 is sort of like leasing and customizing an apartment in a really classy development instead of buying and owning your own house. You’re still in control of decor, cleaning, and everything living-wise – but you leave the construction, plumbing, security, and infrastructure to the property owner. That point is key because there’s usually a direct tradeoff between convenience and control with all software, but especially with website builders.

Everything may fit together just right with a website builder like Site123, but that may or may not be what you’re looking for.

As far as competition, Site123 competes with all-inclusive hosted website builders like Weebly, Wix, Squarespace, Gator, and WordPress.com.

Compared to their direct competition, they focus on speed and ease by providing done-for-you templates and designs so you can focus solely on content.

Instead of operating like a traditional drag-and-drop website builder, Site123 has you pick your niche and then customize a curated template based on that niche, which appeals to beginners who have no design or development experience (think DIY-ers who need to create a website ASAP without having any website experience).

One other quick aside – a disclosure – I receive referral fees from all the companies mentioned in this post. My opinions & research are based on my experiences as either a paying customer or consultant to a paying customer.

Pros of Using Site123 Website Builder

Here’s what I found to be the pros of using Site123 — not just in comparison to other website builders, but as an overall website solution.

Straightforward Signup Process

One of Site123’s best features is how quickly you can get up and running. Signing up for the platform is a simple, three step process (hence the name Site123), and it’s straightforward, easy to understand, and efficient.

Site123 Set Up

Plus, Site123 builds in education through a simple, step-by-step tutorial that walks you through how to customize your assigned theme and add content to your website, which is an excellent feature for users who haven’t customized / built a website before.

Site123 Tutorial

Simplicity

Site123 is also seriously simple to use. As I mentioned before, Site123 provides you with a template based on your selected industry and type of business/website within that industry.

Site123 Template Selection

While the website builder is not drag and drop, you can choose from a menu of page elements to change the design within your selected theme.

Site123 Select Page Elements

The whole setup is like painting by numbers.

There are obvious drawbacks to this setup, which I will cover in the disadvantages, but it is a real advantage to having limited but accessible design options.

The site layout is mobile-friendly and maintains an acceptable look/design no matter what you do to the design options.

Product Integration

Another benefit of Site123 is their extensive list of product integrations. Aside from offering DNS and hosting services, Site123 also offers several plugins (software that you can “plug in” to your website to get additional functionality). From advertising software to analytics tools to marketing + support, their library is extensive.

Site123 Product Integration

Site123 also offers ecommerce functionality. One thing to note here though — to use the integrations, you have to have a paid plan.

And to get ecommerce functionality, you have have to choose between the two higher-priced tiers. We’ll talk more about pricing in a moment, but just know that you could get the same (or better) functionality for less elsewhere.

Cons

But of course, no review would be complete without looking at the downsides. Every piece of software will have complaints. Here are the cons I found with using Site123

Pricing

Site123’s paid plans start at $10.80/month, which includes a free domain for a year/the ability to connect your domain, 10 GB of storage, 5 GB of bandwidth, and the ability to send 100 email messages (side note – who counts email messages?) to your mailing list per month. It also removes the Site123 branding that comes with the free plan.

Site123 Pricing

But compared to their direct competitors like Wix and Weebly, Site123 is much more expensive and offers much less. At each stage, Site123 doesn’t even allow unlimited bandwidth or storage.

And compared to self-hosting (piecing domains, hosting, and email separately) – it’s not a good value at all.

If you’re using Site123 for more than a few months, it’s going to be more expensive than going with a competitor (and more restricting due to the design and technical limitations – more on that shortly).

Limited Feature Set – Design

With any technology product, there is almost always a trade-off between convenience and control.

And you can really see this trade-off with the Site123 website builder. The convenience of their design setup is great. It’s straightforward, fast, and not confusing. It puts your focus solely on getting your content onto the premade template by generating a curated template for you.

But here’s the thing — if you don’t like the template you’re given, changing it up is a pain. If you want to go anywhere beyond the basics of design, you are very limited with Site123.

For your theme, you can edit the color, the font, and the general ‘feel’/structure of the design.

Site123 Theme editing

With pages, you can choose certain layouts from pre-made choices.

Site123 Page Layout Editing

But you cannot change the layout. You cannot drag and drop. And you certainly cannot edit the HTML and CSS, much less add any other design element.

Site123 Page Editing Example 2

It’s even difficult and near impossible to edit the menu without changing other design elements on the website.

Site123 Menu

The best way to describe it is a ‘paint-by-numbers’ set up. It’s great to have the basics, but if you want to do anything extra or outside of bounds, then you’re out of luck.

If your website is growing, or becoming a bigger part of your business, the design limitations can be crippling. And unlike other website builders that attempt to solve this issue through apps, extensions, or access to the website code or HTML, there is no outlet for a Site123 website builder website.

Limited Feature Set – Technical

The limitations on design also bleed over into technical limitations. Technical limitations are features and functionality that you don’t know that you want until you want them, and then you find out you can’t have them.

These are things like integrations with Facebook, Pinterest, Twitter, Google Ads, social sharing options, blogging, and a whole host of every intermediate to advanced marketing tools on the internet. Now as I mentioned above, Site123 does offer additional features through plugins and apps, but due to the control you give up with the website, you’re fairly limited in how much you can integrate, add on, or even edit within the tools provided.

For example, let’s look at simply editing SEO elements on a page. With the Site123, I can add in a meta description and site slogan, but that’s about all I can do aside from adding header tags inside the content editor. Even basic SEO needs more than that.

Think of it like the difference between cooking in your own kitchen and building your own burrito at a fast food restaurant.

With Site123, you can certainly choose the ingredients that go into your burrito, but your choice is really an illusion because you’re limited to the ingredients that are offered by the restaurant. Like the design, that can be a good thing if you need something simple, and will always need something simple. But if you ever need to upgrade or do something unique or custom, it can be very limiting.

Culture & Lock-in

After looking at a lot of companies across domains, hosting, VPNs, website builders, ecommerce, and more – I’ve noticed that company culture, structure, and policies can speak more about a customer’s long-term experience than a feature matrix.

A website builder is inherently a global business. Every Internet company has remote employees and worldwide data centers. But I’m never a fan of companies not sharing their story or what they are all about. Site123 is incredibly vague about their story, their policies and your relationship to them as a customer.

For example – here’s their about page.

Site123 About Page

It’s a sales page. Here’s a couple answers to FAQs –

Site123 Data Export

Site123 Moneyback

Now – I get that they are a free, hosted website builder. Most website builders have trouble with website export. But their messaging is quite stark with no offer of help scraping or downloading even image files and text.

And the cancellation policy is very odd because it conflicts directly with the purported difficulty of providing a website download. A hosted website builder service should be able to be cancelled at a click of a button. There should be no manual reviews of forms.

Again – this point isn’t meant to raise a potential non-issue for no reason. Site123 might provide a fantastic long-term experience. However, difficult cancellation policies and vague about pages tend to correlate with less than ideal long-term experiences.

Site123 Review Conclusion

Site123 certainly makes getting a website up and running easy, especially if you need something that’s done-for-you and requires little customization. They have a straightforward user-experience and easy-to-use editor that makes getting your content out there a breeze.

Check out Site123’s plans here.

However, there are trade-offs to consider with an all-inclusive website builder — specifically functionality, customization, and control. And this is where Site123 falls short when compared to other all-inclusive website builders. If you’re looking to create a website with a base template but still have some flexibility over design and functionality, Site123 may not be the best option for you.

Not sure Site123 fits your needs? Check out my quiz to find what the best website builder is for you based on your preferences.

The post Site123 Review: Pros & Cons of using Site123 Website Builder appeared first on ShivarWeb.

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Shopify VS Etsy

Shopify VS Etsy

Tie

Pricing

Tie

Tie

Hosting

Tie

✓

Specific Size Of Business

Tie

Hardware & Software Requirements

Tie

Ease Of Use

✓

✓

Features

✓

Web Design

✓

Integrations & Add-Ons

✓

Payment Processing

✓

Customer Service & Technical Support

Tie

User Reviews

Tie

Tie

Security

Tie

Winner

Final Verdict

Review

Visit Site

Compare

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: 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: 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 Plan 

  • 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: 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: 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: 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: 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
  • Transaction Fee: 5.0%
    • Etsy’s commission per sale
    • Also charged on the shipping price
  • Payment Processing Fee w/Etsy Payments: 3% + $0.25
  • 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) 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%  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!

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

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Find The Best eCommerce Website Builder For Your Business

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

3dcart

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

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: 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: 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: Some website templates come free with the software, but premium themes typically have a one-time purchase cost.
  • Web Development: 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: 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: 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: Check your level of comfort with both finding and manipulating features like inventory and order management, discount creation, etc.
  • Simplicity VS Flexibility: 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:  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: 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: 

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
  • Extensive sales channel & marketplace integrations (eBay, Etsy, Amazon, Google Shopping, etc.)
  • Mobile store management via Shopify App

Storefront & Checkout

  • Checkout on your domain
  • Real-time shipping calculations
  • Automatic tax calculation
  • Coupons, discounts & gift cards
  • Abandoned cart recovery
  • Expedited checkout with Shopify Pay

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: 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
  • Multiple SSL certificate options (shared, dedicated, custom)

Storefront & Checkout

  • Single-page checkout
  • Real-time shipping quotes
  • Product ratings & reviews
  • Coupons, discounts, & gift certificates
  • Faceted/filtered product search
  • Abandoned cart recovery
  • Public & private wish lists
  • Recently viewed products
  • Akamai Image Manager & Accelerated Mobile Pages (AMP)  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

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: 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: 

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. 

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
  • Customizable, automated email & chat responses
  • Mobile app for store management
  • Integrate with Square POS
  • Free stock photo library

Storefront & Checkout

  • Checkout on your own domain
  • Offer discounts & coupons
  • Customizable product sorting & filtering
  • Customer login/member area
  • Multilingual storefronts
  • Multifunctional sites (including bookings, event management, restaurants, etc)
  • Live chat with customers
  • Advanced frontend design features

Best Fit

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

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

3dcart

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.

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Website Builders Explained

Website Builders Explained

Website builders are a type of software that turns visual design elements into HTML / CSS files that browsers can show as a website. Modern website builders are usually bundled in some form with hosting to provide storage & server abilities for those files.

As an analogy, imagine a website is like a physical home. Website builders are a bit like pre-built houses or condominiums with infrastructure & services provided. Usually the land (hosting), address (domain) and services are bundled with the home. There are usually costs & limitations, but also much more convenience compared to building a home from scratch.

That’s the short version. But there’s more to website builders than the definition. I’ll cover common questions like –

  • What Are Website Builders?
  • How Do Website Builders Work?
  • Are Website Builders Worth It?
  • Are Website Builders Good for SEO?
  • What Makes a Good Website Builder?
  • What Website Builders Are Best?
  • What Website Builder Should I Use? & Next Steps

Disclosure – I receive customer referral fees from companies mentioned on this website. All data & opinions are based on my professional experience as a paying customer or consultant to a paying customer.

What Are Website Builders?

Website builders are a type of software that turns design and content elements into valid HTML / CSS that can show up in an Internet browser. They have a long history, but have dramatically changed in recent years.

As long as the Web has been around, people have wanted to create websites without writing the underlying HTML & CSS programming languages. Back in the early days, website builders were actual desktop computer programs that you had to download and use (FrontPage FTW!!). They were called WYSIWYG (What You See Is What You Get) software.

But as the Internet, software, and consumers developed, website builders started rapidly evolving and changing. Nowadays, very few people write HTML & CSS from scratch.

Everybody, including seasoned front end web developers, use some form of what used to be called a “website builder”. Everyone is looking to build websites faster with more features and better design elements. The “website builder” market has shifted so that now it’s much more common to hear people using templates, libraries, themes, theme frameworks, content management systems, scripts, etc to build faster and better.

Because of this shift, what we now call a “website builder” really refers to a web-based software that provides not only the actual HTML & CSS conversion but also the hosting, security, customer support, integrations, media storage, and marketing tools that most people want when they say “I want a website”. The technical term should be “hosted website builder.”

For an analogy, think about different housing types. Originally, a “website builder” was simply pre-cut construction material to help you build a house quickly. Nowadays, a “website builder” is more like a condominium or townhome development. You have way less say over what you want. But – you have a home that you can customize while simply paying a fee for garbage pickup, lawn care, maintenance, etc.

For the rest of these FAQs, we’ll be focused specifically on hosted website builders that not only build your website’s HTML & CSS but also bundle hosting, security, support, etc into a single subscription fee.

How Do Website Builders Work?

Website builders usually use proprietary software, so it’s hard to say *exactly* how they work, but they all work in broadly the same way.

When you sign up for an account, hosted website builders will carve out server space that runs proprietary software that provides both a “backend” where you can login and manage your design & content along with your actual website files that browsers will use to create the “frontend” that visitors will see.

Here’s a backend example from the Wix backend…

Wix MenuAnd what shows up on the front-end…

Double Arrow Vet

This setup is exactly the same as it would be if you bought your own hosting and installed your own software (ie, WordPress).

But – their software is built to have a drag and drop interface that allows you to literally drag and drop and edit your website. When you save your work, the software will convert your backend work into a combination of HTML, CSS and JavaScript files that will render in an Internet browser. And – your hosting usage is automatically optimized and calibrated to their platform.

Are Website Builders Worth It?

It depends on your goals, need & knowledge.

If you are confident in your abilities to solve problems and you want to build a long-term project with lots of versatility, then I highly recommend that you stay away from hosted website builders, and learn how to set up a website on your own hosting account – that goes for a multitude of different types of websites.

If you value convenience and speed, have budget for the monthly fees, and want to DIY, then yes, website builders are absolutely worth it. They provide most everything you’d need in a single, predictable monthly price. They have tailored customer support and handle all the updates.

It really is like shopping for a house vs. a condominium. Homeowners may swear up and down about owning a home. But the thing about a house is that…like you are responsible. Even if you don’t cut the grass, you have to pay someone to. And you have figure out who to call. You can build a pool…but you have to maintain it.

Condo owners just cut a check to the Homeowners’ Association. But – they also have to abide by the HOA’s rules and are inherently limited to what they can do to their property,

Are Website Builders Good for SEO?

It depends on your goals, needs & knowledge. This question is a bit like asking whether a condo is good for hosting parties.

There’s a few variables to clear up – like, how hands-on are you with parties? Do you just want the place to look nice so that you can focus on the food or are you looking to build out the ultimate party pad over the course of a couple of years?

Website builders do have a bit of notoriety with SEO because of Flash. Back in the day, every website builder used Flash for their drag & drop functionality. They would also have some weird URL structures. Due to that the old school Googlebot had an impossible time crawling & indexing websites built with common web-based website builders.

SiteBuilder SEO Duplicate Content

Most of the big brand website builders do not have this issue any more, and Googlebot is much better than circa-2012. Some website builders do still have lingering issues, but general “SEO” is no longer the main purchasing concern in my opinion. The main concern should be what *you* want to do with SEO. Here’s some examples from past clients / readers of mine.

Client A wanted to build out a large presence in a sub-market of the senior housing industry. They wanted to rank for certain high-competitive terms and wanted to update & revise many pages with Schema markup and roll out a regular content strategy. They were using Wix. My first recommendation? Stop everything and leave Wix. Spend money to rebuild the entire site on self-hosted WordPress. Using a hosted website builder like Wix would simply not have the flexibility to run the type of content & integrations that we needed.

Client B wanted to build a website for a hyper-local deli & restaurant. They wanted to rank for specific local terms & brand names. They had no time or budget to keep the site updated – other than the menu, which they needed to edit every week via smartphone. They had used Wix in the past, and knew how to add food integrations. I told them to go with it – and they do very well with the SEO that they need (ie, Google Maps, local terms, and menu terms).

Client C launched a side-project on personal fitness. They didn’t have huge plans for it – and just wanted to get going. Due to time and simplicity, they just got going on Squarespace. It worked for a few years until all of the sudden, their blog took off. They need plugins & capabilities that you can only get with your own hosting account. So they bit the bullet and built their own site with WordPress on a self-hosted VPS account and migrated away from Squarespace. Organic traffic has since dramatically improved but mainly because they can easily manage the content – not because Squarespace’s SEO was “bad”.

As so on – see it depends on what “SEO” you need. Website builders are not “bad” for SEO. But they aren’t “good” for SEO unless they match what you want to do.

What Makes a Good Website Builder?

A good website builder is one that helps you succeed at your project. That’s all.

If the “BEST!” website builder has so many features or limitations or whatever that it keeps you from achieving your goals, then, well, it’s not the “BEST!”.

Sure, there are absolutely some website builders that are better than others. Some I wouldn’t touch with ANY project – no matter what.

But for yourself, write out some features that you want. Rank the features. Write out what your goals are. What you write is not as important as the fact that you are thinking through what you want.

For some people, drag and drop might not be as important as data export…which might not be as important as phone customer support.

A good website builder should, though, produce readable, crawlable, and indexable HTML & CSS that visitors can access. Beyond that – it’s up to you.

What Website Builders Are Best?

Again – the implied preposition here is “for you.” With that in mind, I created a little quiz and summary to help you find the best website builder for you.

I’ve reviewed some of the big name brands like Wix, Weebly, Squarespace, GoDaddy and WordPress.com. But there are plenty of options out there – and even some hybrid options like BoldGrid which overlays a drag and drop functionality over a self-hosted WordPress install. There are brand new ones like GATOR and plenty of others. Read all my website builder reviews here.

What Website Builder Should I Use?

It depends! Go to these resources to figure out some ideas –

  • Best Overall Website Builder
  • Best Simple Website Builders
  • Best Online Store Builder
  • Best Wix Alternatives
  • Best WordPress Alternatives

Next Steps

Your next steps should be to go research based on your goals – and get started with your project! Most website builders offer a short free trial period. Take advantage of those to make a final call.

The post Website Builders Explained appeared first on ShivarWeb.

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How To Advertise on Quora Effectively

Quora Ads

Quora Ads are one of the myriad options for advertising online. Like eBay, Reddit, and LinkedIn, Quora is one of those Web 2.0 properties that feels like it should be dated, but remains surprisingly relevant.

In fact, while Quora is itself has been around since 2009, Quora’s self-serve Ad Platform only rolled out in 2016.

Quora has 300 million active users and some interesting reasons to advertise.

Why Use Quora Ads

First, you have access to both social data and search intent.

Like Pinterest and Reddit, you can reach people based on demographic and psychographic data AND you can reach people who are actively searching for answers OR you can layer both to run hyper-targeted campaigns to people who are both your target customer and actively researching.

Second, you have access to lots of qualified organic traffic. Quora has plenty of internal usage. But their organic search traffic is their secret weapon.

Due to their brand and enormous amount of content, they rank well in Google & Bing for highly qualified search terms. I’ve written how you can use Quora for “barnacle” SEO and content.

But – that approach requires work. With Quora Ads, you can pay to jump to the front of the line. Advertise on pages that rank well for target keywords.

Quora Ad Alternative

Third, you get to define best practices & deal with lower competition.

Every big brand and agency is on Google & Facebook. Best practices and budgets are well-defined. Quora requires more work and thought to succeed.

I’ll share my experience in this post, but my main takeaway is that there is no “right” answer. Quora is still wide-open and open for testing & experimentation. If you have more time / skills than budget, Quora is a great place to go.

How To Setup Quora Ads

Quora has done an excellent job with self-service. The platform is straightforward and comes with a surprisingly useful email course.

To get started, all you need is some basic business information.

Within your Ads Manager Dashboard, you can Manage Ads, setup a Quora Pixel, manage your retargeting audiences, and setup email reports.

Whether you setup an ad campaign or not, I highly suggest that you immediately implement your Pixel, dabble with Audiences and setup a couple curated Email Reports.

Quora has a the familiar menu of retargeting audiences. Standard setup is for Website Traffic.

In the next step, you’ll setup your Quora Pixel to tag visitors. You can pre-segment your Website Traffic to make retargeting a bit easier.

3 Quora Remarketing

If you have a lot of educational content on your site, I would start with that segment. Quora is a common research tool, especially with high-consideration purchases. If you can reach users doing intensive research across platforms, you’ll be less likely to lose them.

Additionally, once you’ve built an audience, you can create a Lookalike Audience.

This feature is huge because you can reasonably expand your reach across Quora to reach someone who you *know* is familiar with your brand.

Remember how I mentioned that Quora is hybrid social / search? This is where that power comes in.

For example, imagine you are recruiting entry-level engineers out of college.

You have the ability to tag visitors to your site, and then reach them throughout Quora whenever they are asking career related questions.

Plus – you’ll get insight into the types of questions that you your audience asks. This feeds back into a successful content strategy based on data that *only* you have access to.

Lastly, if you have permission, you can upload a list of current contacts to rebuild your existing customers within Quora.

It’s a lot of work, but for high consideration campaigns, it’s worthwhile.

Like any & all retargeting strategies – Audiences can be creepy, invasive, and sometimes illegal in the European Union without explicit consent.

Most people either consent or live in jurisdictions that do not require explicit consent. These tools do exist and are worthwhile for many businesses. Retargeting is here to stay. The key is to keep it classy. Time, thoughtfulness, and testing creates the best outcome for advertisers, publishers, and customers.

Email Reporting is straightforward. But I would set the settings you like so that you actually view the reports rather than automatically deleting them.

4 Quora Email Reports

Now you’ll need to set your Quora Pixel, which is the snippet that “fires” on your webpage to track website visitors.

The setup depends on your website, but you’ll need to place it wherever you have your Google Analytics tag.

5 Quora Pixel

Now you can get started on a campaign! Head to Manage Ads and select your objective.

6 Quora Ads Create Campaign

If you select Conversions, you’ll need to select a conversion type to pass to your Quora Pixel. You’ll also have to manually tag any actions (like Add to Cart).

Conversion Tracking is accurate and can be worthwhile. But unless you are running large campaigns, some of this Conversion Tracking might not be worth the effort.

8 Quora Ads Conversions

For my campaigns (and most advertisers), I use the Traffic objective. But I also tag all of my ads so that I can track conversions within my existing Google Analytics setup.

9 Quora Ads Objective

Once you’ve created your Campaign objectives, you’ll need to set up a new Ad Set.

Ad Sets each have their own targeting and bids. After setting up an Ad Set, you’ll write individual Ads for each ad set.

But Ad Sets are where the fun really happens.

You have 4 primary targeting methods. I’ll cover each below. But the short version is that you can do –

  • Topic Targeting – Target content that falls within a category regardless of user interest.
  • Question Targeting – Target specific questions on Quora regardless of topic or user.
  • Audience Targeting – Target your audiences everywhere on Quora (see above).
  • Interest Targeting – Target people who are interested in a topic regardless of content.

After that, you can choose several secondary targeting methods. You can focus your ads by Location or Device. You can also exclude specific questions or audiences (ie, people who have successfully purchased from your site).

10 Quora Ads Targeting

Topic and Question Targeting are my favorite options. They both target based on content not the user.

When you are looking to expand reach or target based on intent – this is the option that you should use. Topic Targeting lets you quickly target a bunch of questions quickly.

The key to Topic Targeting is to provide Quora with a relevant but broad set of keywords. There’s a bit of an art to it, but be sure to play around with different combinations before committing to a set of Topics.

Additionally, make sure you go and manually explore those Topics to vet the questions, the likely audience, and and related Topics that you are missing.

11 Quora Ads Topic Targeting

But if you have time, the best targeting option is Suggested Questions.

With this option, you can advertise with specific ads on specific questions.

From a purely data perspective, this targeting option is the only place to get Weekly Views stats for Quora questions, which can help your content marketing efforts separate from any paid campaigns.

13 Quora Question Ad Suggestions

Interest Targeting targets the user rather than the content that they are looking at. This option is great for casting a wide-net to reach your audience everywhere on Quora.

However, note that you’ll reach them even when they are looking at irrelevant questions. This option is great to layer with other options (like exclude questions). Be careful using it alone though.

12 Quora Ads Interest Targeting

There are also options for targeting an existing audience and also a Broad Topic option.

After selecting your targeting with exclusions and bids set, you’ll need to create your actual ads.

Quora provides lots of space and encourages “content-like” ads. They want complete sentences that are relevant to your targeting. They are not great for hard-sells, but pair *very* well with custom landing pages or educational content.

Be sure to add UTM parameters to your landing page URL to effectively track visits throughout Google Analytics.

 

14 Quora Ad CreationThat’s how you setup Quora ads. But keep in mind that the magic is in customized ads, landing pages, targeting and constantly improving each metric.

That said – how do Quora ads perform “out in the wild”? I’ve run a few campaigns for myself and for clients. Here’s the results of my most recent campaign.

My Experience with Quora Ads

Now – I almost exclusively use Question Targeting for my Quora ads. I also commit to spending probably too much time on research for my small campaigns (although some of that research gets re-used for content campaigns).

The campaign highlighted below was a fairly small content promotion campaign. I had a new piece of content that I wanted to promote without traditional, manual outreach.

I found several questions that aligned with the content. I devoted around $100 to promotion.

Quora Campaign Results

This campaign aligned with the common takeaways from my Quora campaigns.

  • The impressions were high for such a niche topic – and surprisingly consistent day to day.
  • The CTR was uncommonly high for online ads.
  • Conversions were solid.
  • Cost per click was a bit higher than expected, but nowhere near Google Ads territory.

Additionally, I did not have to filter or account for a lot of spam (I’m looking at you, Google Display and Facebook…).

My numbers in Google Analytics lined up perfectly with Quora. Engagement was high and as I’d hoped.

Quora Ads Experiment

All in all, this (and all my campaigns) go back to the same general takeaways for Quora Ads.

  • Quora Ads are hard to roll out “at scale” but are very effective with the right amount of time devoted to set up & research.
  • They are great for high consideration ads and great to reach new, smart audiences.
  • You have to have the right website content to provide good, engaging landing pages.
  • Often small campaigns are worthwhile simply for the data.

In many ways, they remind me of both Pinterest and Reddit Ads. They aren’t for everyone, but certainly a solid opportunity for the right advertisers.

Next Steps

Quora Ads are not for everyone. There’s not a ton of inventory. To do it well, you really need to spend some time on your research and ad setup.

However, in an increasingly crowded and expensive online ad market, the market represents a solid opportunity.

At the very least, you should go set up an account and grab the Quora Pixel to build an audience.

From there, you can reach you existing users on yet another platform. You can expand your reach based on small tests and the time you have to research interests.

If you found this article useful, please link, share or bookmark. Happy advertising!

The post How To Advertise on Quora Effectively appeared first on ShivarWeb.

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The Best eCommerce Platforms For Your Small Business

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

3dcart

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

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 “styles”) of those themes. Seven of these themes (25 styles) are free; the rest are available for $145–$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

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: Email only
  • Venture: Email & live chat
  • Business: Email, live chat, & phone; 2 hours of custom development (annual plan)
  • Unlimited: 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: Callback service open Monday-Friday, 5AM-5PM Pacific
  • Email: 24/7
  • Live Chat: 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

3dcart

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.

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19 Reasons To Get A Business Loan (And How To Get Started)

business loan reasons

There are so many good reasons to get a business loan that you probably haven’t even considered half of them. For example, have you ever thought about taking out a loan to hire a new employee or getting a loan for the sole purpose of building your business’s credit? Those are both valid reasons to apply for business financing, and there are many other reasons that might not have ever crossed your mind.

While many small businesses are debt-averse — afraid to apply for financing because they don’t think they have good enough credit, or unsure if they can afford repayments — it’s a simple fact that you need money to make money. In some ways, living debt-free can actually hinder your business’s growth or even its ability to stay afloat. You might also be surprised at the wide variety of financing products available for almost any type of business pursuit.

Even if you’ve never applied for financing before, a business loan is definitely something to think about if you are short on funds or are considering a new opportunity or investment that could advance your business.

Read on for a look at 19 reasons you might want to take out a business loan.

Or, skip down to the “Types of Business Loans” section to see if what type of loan you should pursue for your particular business need.

1. Start A Business

Want to get your brand-new business off the ground with a running start? A startup loan can help you do just that. A few startup-friendly lenders will lend to brand-new businesses with no time in business, while others will want to see that you have 6 months’ worth of revenue.

However, startup loans are not by any means easy to get for spanking new businesses lacking in experience, especially if your business is still in the “idea stage.” If this sounds like you, you might consider a crowdfunded loan or small business grant in lieu of traditional financing.

2. Increase Working Capital

Working capital—the money required for day-to-day business operations—is a big reason businesses might need to apply for financing. For myriad reasons, your business may simply be short on cash. Sporadic cash flow, business growth spurts, and seasonal sales fluctuations are just a few reasons businesses apply for a working capital loan.

In many circumstances, you might not know exactly how much money you need, but expect you’ll need some extra working capital in the near future. In such cases, you might be wise to apply for a short-term business line of credit that you can draw from as needed.

3. Purchase Inventory

Businesses new and old, large and small, commonly apply for financing to cover the cost of purchasing inventory or raw materials to make products. A healthy inventory allows you to have enough product on-hand to meet demand and keep customers happy.

Retail businesses, in particular, often require financing to replenish stocks, particularly is your store sees a big sales up-tick during certain seasons. For example, a company that sells a popular holiday gift might take out a short-term loan to purchase product ahead of the holiday season, and then repay that loan with the proceeds of their seasonal sales.

4. Purchase Equipment

Almost all businesses require equipment of some sort — especially businesses involved in manufacturing, as well as those in the food and service industries. Whether you need professional gym equipment or even a business vehicle, such assets can represent a major expense to a new, struggling, or expanding business.

Purchasing equipment may necessitate a business loan, or perhaps you’d rather charge it on your business credit card if your credit limit is high enough. One popular way to buy business equipment is equipment financing, as this type of loan typically does not require any collateral other than the equipment itself.

5. Hire New Talent

According to the National Small Business Association, data going back as far back as 1993 shows a strong connection between businesses’ ability to hire employees and their ability to get financing. Indeed, payroll is a significant expense businesses must contend with, including not just wages, but healthcare and other benefits, as well as employee training. In some cases, businesses even have to reduce their number of employees or scale back employee benefits if they don’t have sufficient access to financing.

While taking out a loan to hire someone is always a risk, it’s true that employees are a business’s greatest asset; if the employee is worth their salt, they will eventually justify the expense of the loan.

6. Expand Products/Services

Businesses in the growth stage, as well as stable businesses trying to increase revenues and/or stay competitive with peers, will need to expand their offerings from time to time. Regardless of how you’re going to achieve a product or service expansion, an installment loan or another type of business loan can help you make the necessary investments to keep your offerings fresh and relevant.

7. Open A New Location

Your business is growing fast and you need to open a new location. Expanding to a new location is a major undertaking requiring a lot of capital, but one that can pay off tremendously in time.

If you have at least two years’ time in business, you may be eligible for a long-term business expansion loan with low interest rates. Businesses purchasing real estate to open a new location be eligible for a commercial real estate mortgage such as those offered by the SBA through the  SBA CDC/504 program. There is even such a thing as real estate crowdfunding for businesses.

Or, say you own an online business and want to establish your first physical location, you might consider a startup loan to help get your new operations up and running.

8. Pay Taxes

Ideally, you will set aside enough money throughout the year to pay your business taxes when the tax man comes a knockin’. But alas, life doesn’t always work out that way, which is why small businesses frequently take out loans to pay taxes.

Rather than get in trouble with the IRS for not paying your taxes, you are much better off using a business loan or even a cash advance to pay your taxes.

9. Create A Safety Net

A safety net is a cash or credit “cushion” you can use to fall back on during slim times. Perhaps you own a seasonal business or simply have cash-flow problems from time to time; even though you don’t require any extra working capital at the present moment, you feel good knowing it’s available if and when you need it.

You’re probably especially aware of the need for a safety net if you’ve been caught without one in the past, and had to pay overdraft bank fees or get an expensive short-term loan to cover unforeseen shortfalls.

A revolving line of credit, working capital loan, or even a business credit card can all help provide a safety net for a future rainy day. If there are no rainy days on the immediate horizon, you will have some peace of mind knowing you’re prepared for anything.

10. Refinance Another Loan

While it may seem strange to take out a loan to pay off another loan, debt refinancing is a popular and sometimes necessary reason to take out a business loan. You might choose to refinance your business debt because you are offered a loan with better rates and fees, or you might choose to consolidate multiple loans into one loan.

If you’re considering refinancing a loan you are currently paying on, check out our Complete Guide To Refinancing Small Business Debt.

11. Buy A Business

A business acquisition loan, or a loan to buy a business, is another popular category of business loans. You can take out this kind of loan to expand your current business’s offerings with the purchase of another business, or to buy a business even if you don’t have an existing business (in which case you will probably need a startup loan).

Depending on your business credentials, the health of the business you want to purchase, and other factors, you may be able to get a business acquisition loan through a bank or the SBA. You might also finance your business purchase through a business expansion loan or a startup loan from an online lender. There are also franchise loans available to individuals looking to purchase a new or existing franchise.

12. Buy Out A Partner

business loan vs personal loan

Sometimes it just doesn’t work out with a business partner. But just because your partner agrees to be bought out doesn’t mean you’ll necessarily have the money to do so. In these circumstances, you can get a business loan to execute a partner buyout.

There is not really a specific type of loan for partner buyouts but you can use many standard business loans for this purpose, including an SBA standard 7(a) loan.

13. Cover Construction Costs

Perhaps you want to expand or improve your physical business location(s) with renovations or improvements, or maybe you want to construct a brand-new building for your business. Either way, a commercial real estate loan—also called a commercial mortgage or commercial construction loan—is the type of financing you need.

You can use a commercial construction loan, typically obtained through a bank or credit union, to pay for construction costs such as labor, materials, and land development. Hard money loans are another option to pay for business construction.

14. Cover Unpaid Invoices

Businesses with a lot of outstanding invoices can free up pending earnings using a type of loan called invoice factoring.

The financer fronts you the money that your customers owe you, and then you repay them as the customers pay off their debts. With this type of financing, your business does not necessarily need to have good credit, as the invoice factor is more concerned with your customers’ credentials than with your business’s.

15. Buy Insurance

Insurance is a major business expense. Business insurance requirements vary by state and industry. Liability insurance, property insurance, employee healthcare insurance, malpractice insurance, and flood insurance are just a few types of insurance your business might need. For certain business loans, you even need insurance in order to get the loan in the first place. For example, you may need life insurance and various other types of insurance to qualify for an SBA loan.

While, ideally, insurance costs will be included in your budget as a percentage of your gross sales, a business loan or line of credit can help your business pay your insurance policy during times you cannot afford to do so.

16. Cover An Unexpected Expense

Remember that safety net we talked about earlier? Well if you don’t have it, you could have no choice but to take out a loan after-the-fact to cover an unexpected business expense that you didn’t budget for. This could be anything from replacing some expensive equipment that failed unexpectedly to making repairs after a natural disaster. Fortunately, an emergency business loan can help your business cover the expense of just about anything life can throw at ya.

17. Advertise Your Business

Marketing/advertising is a business expense that can cost a lot of money upfront but will hopefully pay off in the long run. SEO and online advertising, commercials, billboard advertising, radio ads, and promotional materials are all types of marketing for which you could need a loan, especially if you’re hiring a marketing agency to try to achieve big results.

18. Build Credit

A lot of small businesses don’t have much of a business credit history, even though the business owner herself might have good credit. Taking out a business loan is one way of establishing a business credit history rather than using your personal credit for your business. Building business credit will allow you to separate your personal and business credit profiles, and will also put you in a good position if you need to ask for a business loan in the future.

For more information on this and other ways to build your business credit history read my Ultimate Guide To Improving Your Business Credit Score.

19. Take Advantage Of A Business Opportunity

Every now and again, your business may be presented with an awesome opportunity that is just too good to pass by—even if you can’t afford the whole thing up front. Business success requires a lot of pragmatism and planning, but there is also some degree of risk-taking and, dare I say it, magic. Whatever that special something is, if you get a “spidey sense” that a certain opportunity will help take your business to the next level, it can pay off handsomely to trust your intuition and go out on a limb to make that investment.

Of course, going out on a limb in this case likely means taking out a business loan. Just make sure you’re not so focused on the opportunity that you rush things and say yes to the first loan offer you come across. It’s absolutely essential to compare multiple loan offers to make sure you are getting the best deal.

Types of Business Loans

I’ve discussed many types of business loans in this post, and it can be confusing to sort through all the different loan categories if you don’t know what you need. To help simplify things, I’ve made a chart with brief explanations of different loan types discussed, and below that, I included longer descriptions of some popular loans you should know about.

Resource Description

Startup Loan

Financing for businesses 6 months old or younger.

Crowdfunded Loan

Funds sourced from a network of backers or investors. 

Small Business Grant

Free funds granted to businesses, normally for a specific project. 

Working Capital Loan

Financing to cover daily operating expenses of running a business.

Business Line of Credit

A credit facility from which your business can borrow money at any time. 

Short-Term Loan

Usually a higher-interest loan that you pay back quickly, typically within a year. 

Business Credit Card

Credit card used for business expenses.

Equipment Financing

Self-securing loan to finance major equipment purchases.

Installment Loan

A standard type of business loan also called a term loan, repaid in regularly scheduled installments.

Long-Term Business Expansion Loan

Usually a large, low-interest loan, repaid over 5 or more years.

Real Estate Crowdfunding

Crowdfunded capital to purchase real estate for a business.

Merchant Cash Advance

Expensive but quick source of business financing for merchants who need fast funds.

Business Acquisition Loan

Loan to purchase a business.

Franchise Loan

Loan to open a new franchise or purchase an existing franchise.

SBA 7(a) Loan

Standard business loan backed by the U.S. Small Business Administration.

Commercial Real Estate Loan

Long-term loan to purchase commercial real estate for a business.

Hard Money Loan

Shorter-term real estate loan similar to a mortgage, requiring the property you’re purchasing as collateral. 

Invoice Factoring

Service which converts your small business’s outstanding invoices to cash.

Emergency Business Loan

Fast loans to cover business funding emergencies. 

Installment Loan

Term loans, also called “installment loans” are a broad category of business loans. This type of funding is paid back in periodic installments, with interest. It may be a short- or long-term loan. Higher-quality term loans typically give you a longer amount of time to repay the loan, and let you pay via monthly installments (vs. weekly or daily installments with short-term loans). However, you will need at least 2 years in business, plus good credit and strong revenues, to qualify for a long-term business loan, particularly if you borrow from a bank; online lenders have less strict requirements.

Long- and medium-term loans are useful for established businesses making long-term investments in fixed assets like property or renovations, though they can also be used for working capital.

You can get term loans from a bank or credit union, though the lenders below offer reasonably quick installment loans as well:

Lender Borrowing Amount Term Req. Time in Business Min. Credit Score Next Steps

smartbiz logo

$30K – $350K 10 – 25 years 2 years 650 Apply Now

$2K – $5M Varies 6 months 550 Apply Now

$25K – $500K 6 months – 5 years 2 years 620 Compare

lending club logo

$5K – $300K 1 – 5 years 12 months 600 Compare

Short-Term Loan

Short-term business loans—installment loans that are repaid in 3 years or less, or sometimes in a matter of months—usually come in smaller amounts with higher rates when compared to long-term loans. Short-term loans also tend to require weekly or daily repayments. Although they are more expensive and less desirable than long-term loans in a lot of ways, short-term loans are relatively fast and easy to get and don’t have as stringent borrower requirements in terms of credit score, income, or time in business.

Because they have such a short repayment schedule, short-term loans are good for short-term problems, such as one-time expenses/investments.

The following lenders offer good terms and reasonable rates if you need a short-term loan:

Lender Borrowing Amount Term Interest/Factor Rate Req. Time in Business Min. Credit Score Next Steps

$5K – $500K 13 – 52 weeks x1.029 – x1.1872 9 months 550 Apply Now

$5K – $300K 6, 9, 12, 15, or 18 months x1.15 – x1.31 1 year 600 Apply Now

$5K – $500K 3 – 36 months x1.003 – x1.04/mo 12 months 500 Apply Now

$2K – $5M Varies As low as 2% 6 months 550 Apply Now

Merchant Cash Advance

Merchant cash advances are not technically loans; rather, they are advances on your future sales or revenue. With a cash advance, you’ll receive a lump sum, which you’ll then begin repaying out of your daily credit card sales.  The interest charged on MCAs is usually calculated in terms of a factor rate rather than interest rate—for example, you might have a factor rate of 1.3, which means you’ll have to repay 1.3x the amount you borrowed. A typical factor rate for an MCA is between 1.2 and 1.4.

An MCA is good for an emergency situation where you need a large sum of money quickly and/or have bad credit, but you have a healthy daily cash flow. It does not help you build business credit because it’s not actually a loan and these lenders don’t usually report to credit agencies.

Generally, we don’t recommend MCAs if you’re eligible for another type of financing, but the following cash advance providers are reputable:

Lender Borrowing Amount Min Credit Score Time To Funding Next Steps

$5K – $500K 550 1-3 Days Apply Now

$2K – $5M 550 1-2 Days Apply Now

$5K – $500K 500 2-5 Days Apply Now

$5K – $250K 500 2-5 Days Apply Now

Business Credit Card

Business credit cards are useful the same way personal credit cards are useful—they allow you to pay for large or small expenses even if you don’t have the cash on hand, while also earning you rewards and building your credit history. Of course, you can get yourself into trouble if you don’t pay off the balance in a reasonable amount of time. With that said, business credit cards are super handy for any type of business expense that doesn’t exceed your credit limit, particularly if you can find a card with a 0% introductory rate, like the ones below.

Credit Card 0% Introductory Period Next Steps
American Express Blue Business Plus 0% APR on purchases and balance transfers for the first 15 months Compare
Chase Ink Business Unlimited 0% APR on purchases and balance transfers for the first 12 months Apply Now
American Express SimplyCash Plus 0% APR on purchases for the first 9 months Compare
Capital One Spark Cash Select For Business 0% APR on purchases for the first 9 months Compare
Bank of America Business Advantage Cash Rewards Mastercard 0% APR on purchases and balance transfers for the first 9 months Compare

Even if you don’t have an expense looming on the immediate horizon, a business card is just good to have in case you need it.

Business Line of Credit

A business line of credit is an amount of money available for you to draw from as needed. You only have to pay back what you borrow (plus interest). Similar to term loans, you can get a line of credit from a bank or online lender. Not unlike a business credit card, a line of credit is useful to have just in case you need to make up for any type of shortfall or gap. An LOC can come in handy especially if you have a seasonal business or a business with occasional cash flow problems. Additionally, a line of credit, like the ones offered by the lenders below, can help you build business credit.

Lender Borrowing Amount Draw Term Draw Fee APR Next Steps

$6K – $100K 6 months None Starts at 13.99% Apply Now

$2K – $5M Varies Varies Varies Apply Now

$5K – $5M 6 months 1.50% per draw 21% – 65% Apply Now

$1K – $100K 12 weeks None 12% – 54% Apply Now

Invoice Factoring

Invoice financing, sometimes called invoice factoring, is when you sell your business’s unpaid invoices to a credit facility. The facility fronts you the amount of the unpaid invoice (minus a percentage they charge as a fee), and you then repay the lender as your customers repay you. Note that you do still need to repay the lender even if your customer never pays you.

Invoice financing is a useful type of financing for businesses with a lot of unpaid invoices that want to free up some cash. The borrower requirements are usually pretty relaxed, as invoice finance companies are more concerned with your customers’ creditworthiness rather than your business’s.

Equipment Financing

Equipment financing is useful for the purchase of any type of equipment or machinery your company needs but can’t afford outright. This type of “self-securing” financing does not require any collateral other than the equipment itself, and you usually don’t need to have excellent credit or much else in the way of borrower credentials. If you default on the loan you could lose the equipment, but if you make all your payments, you will eventually own the equipment.

We recommend the following equipment financers:

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

Do You Need A Business Loan? Next Steps

If you’ve decided you need a business loan, it’s time to take the next steps to secure one.

1. Compare the different types of small business loans discussed above and determine which type of loan best suits your need. Or, read more about common types of business loans.

2. Take a look at our free guide to small business loans.

3. Calculate how much you can afford to borrow.

4. Take a look at our favorite lenders.

Once you complete your initial research by taking these steps, you should have a very good idea of what to look for in a loan and which type or types of financing are best for your situation. You’re now ready to start applying!

To save time applying to multiple loans, you might consider using a lending matchmaker service like Lendio, which allows you to compare multiple loans tailored to your needs.

Final Thoughts

Applying for business financing can be daunting, given all the myriad types of loan products out there, and the possibility of being rejected for financing. You might also be worried about your ability to make payments on the loan.

However, if you have a good reason to apply for a business loan, there is a very decent chance that there is a lender willing to lend to you with feasible, realistic terms. With those funds, you’ll be able to address whatever needs your business has while building up your business credit profile with each repayment.

Lender Borrowing Amount Term Interest/Factor Rate Req. Time in Business Min. Credit Score Next Steps

$5K – $500K 13 – 52 weeks x1.029 – x1.1872 9 months 550 Apply Now

$5K – $300K 6, 9, 12, 15, or 18 months x1.15 – x1.31 1 year 600 Apply Now

$5K – $500K 3 – 36 months x1.003 – x1.04/mo 12 months 500 Apply Now

$2K – $5M Varies As low as 2% 6 months 550 Apply Now

The post 19 Reasons To Get A Business Loan (And How To Get Started) appeared first on Merchant Maverick.

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GoDaddy WordPress Hosting Review: Pros & Cons of Using GoDaddy

GoDaddy WordPress Hosting Review_ Pros & Cons of Using GoDaddy

GoDaddy is one of the world’s largest “web services” companies. Although they were founded as a domain registrar, they provide a whole range of services from web hosting to website builders accounting to email to digital storage to online security and much more.

See GoDaddy’s Current Plans & Pricing…

Over the years, you’ve probably seen GoDaddy’s Super Bowl commercials, GoDaddy girls all around the Internet, and most recently their “Helping Small Business” commercials. They have brand recognition if nothing else.

With the popularity of using WordPress for setting up websites, GoDaddy has made a big product push for their “WordPress Hosting” product.

Like any product, there will be tradeoffs, advantages and disadvantages – depending on your particular goals, preferences, and resources. However, this product not only competes with other competitors but also with GoDaddy’s own regular web hosting product.

So. Here are GoDaddy’s WordPress Hosting pros, cons, how it compares to “regular” web hosting, and next steps.

Disclosure – I receive customer referral fees from companies mentioned on this website. All data and opinions are based on my experience as either a paying customer or a consultant to a paying customer.

GoDaddy Managed WordPress Hosting vs. Web or “Regular” Hosting

Here’s the thing. The entire industry move to “WordPress Hosting” services is kind of a weird, confusing, maddening mess. I’ve written an entire post on Web Hosting vs. WordPress Hosting, Explained – but here’s the short version.

  1. WordPress is simply software that can run on any Linux server with PHP (aka “regular shared hosting).
  2. Again – WordPress can (and does) run just fine on web hosting.
  3. WordPress does use some server resources at an above average rate and others at a lower rate.
  4. WordPress also has very predictable problems & needs. It needs to be regularly updated. Some plugins create temporary security vulnerabilities.
  5. So – hosting companies saw an opportunity to create whole clusters of servers with only WordPress websites.
  6. Since they were all together, they could also provide dedicated support and some add-on services at a cost-effective rate.
  7. Hence, “WordPress Hosting” plans were created – which added a further opportunity for marketers & pricing specialists.

For some companies, WordPress Hosting plans became a way to increase revenue and decrease costs with little value-added. For other companies, WordPress Hosting plans became a way to create a huge value-add to differentiate from competitors and pass the cost savings to customers. For other companies – it was a mix. And in the end, it’s been thoroughly confusing for everyone.

But – the key takeaway is to identify your own needs & goals rather than going right for a company’s “WordPress Hosting” plan.

These pros & cons of GoDaddy WordPress Hosting will look at the tradeoffs between both GoDaddy’s web hosting plans and direct competitors in the WordPress Hosting space.

7 Pros of GoDaddy WordPress Hosting

Here are the 7 big advantages that GoDaddy has with WordPress Hosting.

Sticker Pricing

Their plans start at $8.99/mo at renewal – and go up to $19.99/mo at renewal. Additionally, GoDaddy is always running sales & promotions, so you’re likely able to lock-in even cheaper pricing for over a year. Sometimes, you can even lock-in a $1/per month pricing.

Current pricing & promotion.

Even though GoDaddy’s specialty is not hosting (they started as a domain registrar) – they are using their capital and market presence to really push down on prices.

If you go with them, you won’t have to worry if you are paying too much. Their WordPress Hosting prices are somewhat fudged by total value pricing (see disadvantages) but if you are looking for the cheapest option to get started – you won’t find anyone cheaper in the short-term.

Key WordPress Hosting Features

One key pricing difference between regular web hosting plans and WordPress hosting plans is the pricing per visits vs pricing per features.

In other words, instead of looking at memory, databases, etc – companies simply promise to serve an estimated number of visitors.

GoDaddy Limitations

In other words – you are paying for results rather than features.

Like any subscription, you will be technically overpaying for the features you get…but that also assumes that you know how to use the features in the first place. There are tons of ways to speed up & make WordPress more efficient – but, there’s also a lot of value in letting someone else just do it for you.

For example, I once managed 10,000 visitors in a single day on my shared HostGator server with some heavy caching and lean plugin usage. I also routinely took this site past 50,000 monthly visitors on a regular shared InMotion Hosting server. I saved a ton of money using regular web hosting and adding a simple caching plugin like WP Super Cache or WP Fastest Cache…but I also like doing that kind of thing.

On the flip side, I have a client who cares exactly 0% about WordPress – but likes the platform and just wants to publish his content. He pays $$$ not just for WordPress Hosting but Managed WordPress Hosting at WP Engine – which charges a pretty penny.

Additionally, GoDaddy provides SFTP and staging areas on their upper plans. They also provide WordPress specific support. It’s nothing amazing (which I’ll cover in the disadvantages) – but they take care of the key features.

Backend & Usability

One of the *the* biggest hurdles for new website owners is the learning curve of a new setup. Running your own website can be daunting – and dealing with settings, drop-downs, and jargon only adds to the stress of actually running your website.

Backend design, usability, and “onboarding” help a ton with this problem. GoDaddy has made serious improvements in this area over the past 10 years. Even with a sprawling product line-up, they still make it pretty straightforward to shop, purchase and get on with your project.

Their WordPress Hosting product does away with some WordPress installation headaches on web hosting and provides a good setup to get on with your project.

The simplicity is a big advantage compared to their web hosting product and their design is a big advantage compared to their technically-oriented competitors.

Product Integration

Full disclosure, I’m a fan of buying your domain and email services separately from web hosting (ie, I use NameCheap for long-term domains & Google Apps for email hosting). It provides diversification – and allows you to choose providers that focus on a specific product.

But, having one company manage your domain name, email, and hosting can make things much more convenient. Several of my friends & clients do this – and it works well for them. Their domains are cheap and their email is straightforward. They have professional online security. GoDaddy even offers bookkeeping & accounting services nowadays.

GoDaddy offers the full gamut of services and ties them all in together well. There’s no pointing your DNS records or futzing with SMTP settings. It’s all there and it all works together. Big advantage to GoDaddy.

Scale & Resources

Like any large hosting company, they have issues with security. They represent a huge target to takedown…especially when political controversy erupts.

But – GoDaddy has the scale and resources to preemptively tackle security problems that smaller hosts simply can’t work with. This feature has to do with their huge scale (they have plenty of technology directed at thwarting spam and hackers), but also with GoDaddy’s restrictive policies (which will be a Con) but for now, it also keeps out spam and the attacks.

For example, when GoDaddy needed to beef up their online security product, they simply went and bought Sucuri – the go-to the web security company.

And scale has advantages too. When GoDaddy says that they can “increase your resources to deal with additional load” – yeah, they can actually do that. When a mass hack or DDoS attack happens – they actually have resources to throw at the problem.

For example, one of the largest exclusively Managed WordPress Hosting is WP Engine. They have 429 employees. They’ve been growing rapidly. GoDaddy has 6,000 employees and 17+ million customers. That can be a bad thing…but on the Internet, it can be a good thing.

Phone Support & Improved Down-Time

Some internet veterans will scoff at this (GoDaddy used to be absolutely notorious for support) but recently GoDaddy has greatly improved their customer service since the mid-2000s. They have improved even more so under their new CEO, and the new direction they set out in July of 2013.

And more importantly for many customers – they offer 24/7 phone support, which is not common among hosting companies – even those famous for customer service.

It’s not world-class, but for a huge corporate entity with super-discounted hosting… good support is a Pro in my book.

And they fulfill the *basic* duty of every web host… 99.9% uptime.

Brand Recognition & Stability

Yes. This is an advantage no matter what Internet hipsters say. Sometimes buying a big brand is an advantage even when a small upstart might be “better.” Big brands stick around and are stable. In an environment like the Internet where companies launch and fizzle daily, there’s an advantage to going with a company that has been around since the early days of the consumer Internet.

7 Cons of GoDaddy WordPress Hosting

Here are the 7 big disadvantages that GoDaddy has with WordPress Hosting.

Total Value Pricing

 

GoDaddy WP Pricing

Like I said about the advantages of pricing, WordPress Hosting plans are a little different in that you are basically paying for a recurring service rather than anything tangible. That might be what you are looking for but if you are trying to get full value for your money, WordPress Hosting and GoDaddy’s WordPress Hosting, in particular, is a very poor value.

On all of GoDaddy’s WordPress Hosting plans, you are severely limited on the number of websites and the storage space you’re getting – not to mention all the other freedoms you’re losing compared to a similarly priced web hosting plan.

For example, on my similarly priced InMotion Hosting Business Hosting (ie, regular web hosting plan) – I’ve got 6 small, but decently trafficked WordPress websites plus a self-hosted RSS reader plus I use it to triple-backup a few special family videos (ie, several gigabytes right there). When priced out by dollars per storage or by dollars per website – it’s an incredible value.

And that is ditto compared with GoDaddy’s regular web hosting plans.

Additionally, even in the world of WordPress Hosting plans – GoDaddy’s plans are cheap…but a seriously poor value when you look at the features that you actually get.

For example, HostGator provides unmetered storage space and unlimited email accounts on their WordPress Hosting plans. Not technically a “WordPress feature” – but still higher feature value.

And if you look at InMotion Hosting’s WordPress Hosting plans or SiteGround’s WordPress Hosting services – you’ll see that they both provide actual WordPress Hosting features that add value beyond their standard web hosting plans. They both provide built-in NGINX (a very advanced way to speed up WordPress) and built-in SSLs. InMotion even provides a staging environment at the lowest-priced tier.

Customer Protections & Politics

Remember the whole black out the Internet back in January of 2011 because of SOPA and PIPA? And remember when that same issue has come up again and again and again?

Yeah – everyone in favor of Internet Freedom was against those bills…except GoDaddy.

They eventually became against it…but only after customers transferred thousands of domains to competitors because of it.

Most of us will never forgive GoDaddy – especially because…

EDIT: This point is still true. GoDaddy is still exhibiting behavior that indicates they do not respect privacy or ethics (recent story here). They are a big brand that many argue can do things simply because they are the big brand. They are aware of this perception – which is why they recently took preemptive action on the Daily Stormer, but they don’t have a super-consistent protocol.

Branding, Marketing & Company Culture

GoDaddy has built their brand with odd market positioning and weird “talk about me” ad campaigns.

And weird in a bad way. For example, their CEO shoots elephants. And they use blatantly sexist advertising. All this among other just bad controversies.

GoDaddy has recently sanitized their site and said that their 2017 Super Bowl commercial would not revolve around sex. Their new campaign is to be the “champion of small business.”

However, they still want to maintain their “edgy” brand. That’s all an improvement, but I’m still wary of companies who do tons of interruption-style advertising over focusing on their product.

I don’t know how this brand & positioning transfers to their company culture but I personally don’t see it as a positive in the “doing business with companies that I love” category.

Hosting Feature Limitations

As mentioned in the Total Value Pricing section – GoDaddy’s WordPress Hosting plans have surprisingly tight limits on features – even compared to direct competitors in the WordPress Hosting space.

Then again, I’ve also noted how they have hard & low limits on their web hosting compared to both big brands like Bluehost – but also to independent brands like InMotion and SiteGround.

Additionally, they are notorious for their own proprietary setup which can lead to email & hosting issues that are unique to GoDaddy. They have plenty of seemingly random caps on databases and bandwidth that you never really encounter until you really need to break those caps.

Account Lock-in & Diversification

This con relates to #1 above…but deserves its own spot.

Mainly because when you choose a web host – it’s a pretty big time commitment. You’ll be investing a lot of energy into your website – assuming that the host is doing their job.

And even though moving web hosts should be simple…there’s a lot of little things that can make it go wrong. GoDaddy isn’t famous for helping its customers leave. That’s a con.

EDIT: Yes, as of 2018…this is still true. It’s a bit easier since it is WordPress after all, but their domain transfer is needlessly interrupted with annoying upsells and obstacles. I recently did a client site redesign and scoped the project to migrate to another host. But – since my client had had email, domains and hosting there for years, the move simply wasn’t worth the hassle.

Upsells & Cross-sells

I mentioned this in my comparison of both GoDaddy’s native website builder product and their domain registration services – but wow, they are masters of upsells and cross-sells.

On one hand, it’s fine. They do own and operate a ton of complementary products. And it is convenient to keep all your services under one umbrella. But at a certain point, you’re not sure what you’re being pitched and what you’ve bought – and wow, you just want to get on with it.

With their WordPress Hosting plan – they promise “thousands” of free themes…when those are WordPress.org themes available to anyone, anywhere – but then upsell premium themes and even custom web design packages. They build in security to your WordPress website…but then pitch their upsell online security product. They promise “free SEO plugins” (which BTW, I’ve done a tutorial on here) while upselling marketing services.

It’s a bit exhausting – especially compared to other competitors.

Conclusion & Next Steps

GoDaddy’s WordPress Hosting plans are an interesting option for anyone looking to build a WordPress powered website. They offer brand-name stability, core features, and affordable pricing.

If you are looking to build a single site, want to save money, and really only care about simplicity and results, then go get GoDaddy’s current WordPress discount here.

If you are looking for a WordPress Hosting plan with better support, features, and performance, then I’d recommend InMotion’s WordPress Hosting plans here.

If you aren’t sure, then check out my Buzzfeed-esque quiz on WordPress Hosting here.

And if you are simply looking for a guide to setup & install WordPress on a regular web hosting plan, check out my step by step guide here.

GoDaddy WordPress Hosting

GoDaddy WordPress Hosting is GoDaddy's hosting product focused exclusively on WordPress websites.
GoDaddy WordPress Hosting
Date Published: 10/22/2018
GoDaddy WordPress Hosting is an affordable, brand-name option for anyone with a single site who doesn't need advanced hosting features.
3 / 5 stars

The post GoDaddy WordPress Hosting Review: Pros & Cons of Using GoDaddy appeared first on ShivarWeb.

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Do High-Risk Merchant Accounts With Instant Approval Exist?

Instant approval

It all started with the telegraph. Invented in 1837, this technological advance enabled nearly-instantaneous communication across vast distances for the first time ever. Its introduction into commercial use disrupted a courier system that had been the only available method of communicating from one distant place to another for thousands of years. In 1861, the completion of a telegraph line connecting the west and east coasts of the United States rendered the fledgling Pony Express obsolete practically overnight.

Today, of course, we take instantaneous communication for granted. Thanks to computers and the internet (and the fiber optic cables that actually connect them), we can send huge amounts of data anywhere in the world in practically no time at all. Given all this wonderful technology, if you’re a high-risk merchant, you might be wondering why it takes so long to get approved for a merchant account. You might also be sorely tempted by claims of “instant approval” from merchant account providers who advertise directly to the high-risk community, especially if you’re running an eCommerce business and you absolutely need to be able to accept credit cards. In this post, we’ll explain what “instant approval” really means and why it’s usually not a good idea, no matter how desperate you are to get a merchant account. We’ll also delve into how the high-risk merchant account approval process works and what you can do to make it run a little smoother – and faster. Finally, we’ll recommend a few reputable high-risk specialists that can get you set up with a stable and fairly priced merchant account.

What Is “Instant Approval”?

We get it. It’s no fun trying to run your business with an “In God we trust; all others pay cash” sign posted next to your cash register because you can’t get a merchant account. It also means disappointed customers and lost sales. Under these circumstances, the temptation to sign up with the first provider who will actually accept your business can be pretty overwhelming. Unfortunately, it’s also a really bad idea.

The simple reality is that it always takes longer to obtain final approval for a high-risk merchant account than it does for a low-risk business. While traditional low-risk businesses can expect to be approved within a day or two, high-risk merchant accounts require a minimum of three to five business days to be approved, and this process can sometimes take as long as three to five weeks. Why so long? Approving a high-risk business requires a far more extensive investigation into the credit history of both the business and the business owner. Poor personal credit on the part of the owner is one of several reasons why a business might be classified as high-risk in the first place. You’ll have to submit far more documentation and wait far longer for this process to be completed than a low-risk business would.

So, how can some providers even claim to offer “instant approval”? Well, for one thing, it’s not really instantaneous at all. If you see a provider advertising “instant approval,” there’s usually some fine print included with the offer specifying that approval actually takes 24-48 hours. While that’s a lot faster than the normal time-frame, it’s still not exactly “instant.” What these providers aren’t telling you is that approval for your merchant account is actually a two-step process. First, you must be approved by your merchant account provider. Second, you must be approved by the acquiring bank or backend processor that is actually going to underwrite your account and process your transactions.

Getting approved by your merchant account provider is actually pretty easy, but not for good reasons. The truth is that your merchant account provider’s business model is based on signing up as many merchants as possible in order to generate a profit. They’re also quite eager to have you sign a long-term contract, guaranteeing that you’ll be on the hook for three years or even longer. And if you close your account or go out of business, they’ll usually collect a hefty early termination fee (ETF). Because these early termination fees can run into the hundreds of dollars, it’s possible in some circumstances that your provider will make more money from the ETF than they will from your processing fees. High-risk businesses tend to fail at a higher rate than low-risk enterprises, and most of these providers will not hesitate to charge you the full ETF even if you’re going out of business. Although more and more providers are now offering month-to-month billing with no early termination fees to low-risk businesses, it’s still very unusual not to be required to sign a long-term contract – with an ETF – if you’re a high-risk business. Even the most reputable high-risk specialists almost always impose these terms, so be prepared for it and be sure to review your contract documents very carefully before you sign up for an account, even with a reputable provider.

The second step of the approval process, getting your acquiring bank or processor to approve you, is where the delays and difficulties come into play. The risk departments at these institutions really don’t like to approve high-risk merchant accounts due to the increased chance that you’ll run into problems later on. Every processor has their own criteria for determining whether you’re high-risk, and their own documentation requirements you’ll need to meet before they’ll even consider approving you for an account. While your merchant account provider is highly motivated to approve your account, your processor has every reason in the world not to approve it. Getting approved for a high-risk merchant account is an uphill battle, and the chance of being turned down is very high. Fortunately, there are some really good providers out there who specialize in getting high-risk accounts approved, and they’ll work with you to get your paperwork in order and find a bank that can approve you for an account.

Unfortunately, providers offering “instant approval” sometimes take some shortcuts with this process so they can get you on the hook for that long-term contract (and usually that ETF as well). What they advertise as “instant approval” (or being “pre-approved”) in most cases really means that they’re approving your account – and getting you to sign your contract – before your acquiring bank or backend processor has completed all the necessary steps to determine whether to approve your account. In some cases, your merchant account provider won’t even complete a credit check before approving your account.

This practice is all fine and dandy as long as your processor eventually approves your account. However, there’s a high chance that they won’t approve you, and by the time they make that determination you may very well be up and running with your credit card terminal or payment gateway. If this happens, you may suddenly find your account frozen and your funds being withheld. Even worse, you may have your merchant account closed altogether. (Note that in this case, you usually won’t be liable for an early termination fee since you aren’t the party deciding to close the account). In some cases, depending on the reason for your processor closing your account, you may even find yourself being placed on the Terminated Merchant File (TMF, also known as the MATCH List). Getting put on this list is really bad news, as it can completely prevent you from getting approved for a merchant account, even with another provider, for up to five years.

If you haven’t guessed by now, we highly recommend that you avoid any merchant account provider claiming to offer “instant approval” of your high-risk merchant account. This approval process is incomplete and can easily lead to your account getting shut down shortly after you start using it. No matter how inconvenient it is to wait for the approval process to run its course, in the long run, it’s a worthwhile trade-off to get a fully-approved account that will be stable and reliable.

How To Expedite Approval Of Your High-Risk Merchant Account

Get your merchant funds fast. Image description: Clock with money underneath it

While the approval process is unavoidably a lengthy one, there are steps you can take as a merchant to move things along a little quicker. These actions mainly serve to avoid the kinds of problems that might lead to delays in getting your account approved. Here’s what you’ll want to do:

  • Work With A Reputable High-Risk Specialist: The signup process can be sped up by ensuring there is a good chance of approval beforehand. This means working with a partner that has a proven track record and experience in your industry. High-risk specialists such as Durango Merchant Services will work with you to ensure that your paperwork is in order and can also work with a network of acquiring banks and processors to find one that will approve your business.
  • Have Your Paperwork In Order: You’ll need to provide far more information when applying for a merchant account as a high-risk business owner. If you can present all of this information with your initial application, it will save a significant amount of time during the approval process. We recommend that you scan all required documents as PDF files so you can simply email everything you need to your provider as part of your application. See below for a discussion of specific documentation requirements.
  • Be Completely Honest About Your Business: Are you selling medical marijuana (in a jurisdiction where it’s legal)? Do you have a personal bankruptcy on your record? Have you previously had a merchant account shut down by your provider? High-risk merchants who are desperate to get approved for a merchant account are often tempted to misrepresent these and other facts that might lead to them being disapproved for an account. Don’t do it! Intentionally failing to disclose important information or getting caught in a lie will almost always lead to you being turned down for an account — or having your account closed immediately once the processor discovers your dishonesty. You’re much better off being completely honest about your background. In many cases, you can still be approved for an account despite a little negative information.

As we’ve mentioned above, there’s a lot of paperwork involved with getting approved for a high-risk merchant account. While specific requirements vary from one provider to the next, here’s a generic list of the most commonly requested information:

  • Completed Merchant Account Application (from your merchant account provider)
  • Résumé or CV of business owner
  • Photo ID or Passport
  • Business Plan
  • Personal Utility Bill (used to verify your address)
  • Processing statements for at least the last three months (if you’re switching providers)
  • Copies of supplier’s agreements (for retail merchants)
  • Copies of your personal banking statements (usually for the last three months)
  • Personal reference letter from your bank
  • Copies of your business bank account statements (usually for the last three months)
  • Articles of Incorporation (or sole proprietorship documentation)
  • Articles of Association (if applicable)
  • Screenshot of your business website’s home page (if applicable)

Final Thoughts

If you’re a high-risk merchant, we understand that merchant accounts are not easy for you. Okay, they’re not easy for anyone, but high-risk factors make them even more complicated (and expensive) than they are for everyone else. Unfortunately, it’s too easy to get turned down a few times and start feeling like you have to sign up with any provider who will take you. Also, the inevitable delays in getting your account approved can make the possibility of “instant approval” seem very tempting. Resist that temptation. Instant approval isn’t what its promoters claim it is, and it’s a good way to set yourself up for much more serious problems down the road.

The difficulties that high-risk merchants encounter in getting a merchant account have, unfortunately, created a market opportunity for unscrupulous providers who use the lure of “instant approval” (or, sometimes, “guaranteed approval”) to lock you into a prohibitively expensive long-term contract with high fees, high processing rates, and an onerous early termination fee to discourage you from canceling your account on your own. Do a Google search for “high risk merchant” account, and you’ll quickly find ads from plenty of predatory merchant account providers looking to take advantage of your desperation.

Fortunately, it doesn’t have to be this way. There are reputable providers who specialize in working with the high-risk community and will go out of their way to get you fully approved for an account. While their prices and contract terms won’t be as great as what a low-risk business could obtain, they’re still reasonable and backed up by top-notch customer support. We’d also note that none of the high-risk specialists we’ve found offer “instant approval.” Instead, they’ll work with you and help you to get your documentation squared away so you can be approved by one of their partner processors for a stable account that won’t get shut down the moment you actually try to use it.

Of all the high-risk specialists we’ve reviewed, we’ve found Durango Merchant Services and Easy Pay Direct to be among the best of the best. They both have strong track records of providing high-quality service at reasonable prices. For more recommendations, check out our post The Best High-Risk Merchant Account Providers or see the chart below.

Durango SMB Global Host Merchant Services Soar Payments

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