How Much a Website Costs Per Year Explained

Website Costs Per Year

So, how much does a website cost per year?

Wait for it…. it depends. 🙂

But yes – “it depends” is not helpful at all.

The Short Answer to Website Costs Per Year

Annual website cost = domain + hosting + software + labor + annualized upfront costs

  • Domain costs range from $9 to $15 per year for a .com or .org
  • Hosting costs range from $60 to $240 per year for shared web hosting
  • Software costs range from free to $100 per year for backups & security to much higher
  • Labor costs range from free to thousands of dollars
  • Annualized upfront costs are how you want to budget upfront costs like design & themes

I highly recommend “annualizing” your upfront costs because that is a big consideration in how you want to approach actually building a website.

If you use a “hosted website builder” like Wix, Weebly or WordPress.com, then you’ll be paying all these costs in a single bundled subscription price. Your annual costs are elevated, but predictable.

If you build your website a la carte with self-hosted WordPress (even if it’s with a “builder“), then you can control a lot of your costs and get access to a lot of features that a hosted website builder might take away (e.g., actually having a custom domain or SEO features).

The Long Answer to Website Costs Per Year

But here’s the thing, your annual website costs really do depend on your choices & goals. I’ll break down how much a website should cost, and what variables you can play with to make sure your costs fit what you want to get out of it.

Consider a few websites that I have personally been involved with.

Website #1 cost $0 upfront and now costs $8 per year to maintain. It is a single page and written in HTML/CSS that I wrote. It lives on a Google Cloud account with a $300 promo credit with my low-traffic website generating all of pennies worth of traffic every year. It runs on a custom domain name that is $8/yr to renew. That’s it.

Website #2 cost $20 upfront and now costs $0 per year to maintain. It is a personal photo blog that lives on WordPress.com. I bought a nice premium theme at the beginning for $20. Now I keep it on a free *wordpress.com subdomain with limited ads & links to WordPress.com in lieu of annual fees. That’s it.

Website #3 cost $120 upfront and now costs more than $1500 per year to operate. It started with a free WordPress theme and a year of shared hosting plus a custom domain. Now, it requires a VPS server with secondary backup & security software in addition to premium software plugins and a small budget for a few hours of developer / designer time.

Website #4 cost $300,000 upfront and now costs $30,000 per year to operate. It started with custom branding & design in addition to extensive custom development and deployment to dedicated hosting (now moved to cloud hosting). It also requires monthly staging for software updates, in addition to technical maintenance, and a extensive suite of 3rd party plugins for email, A/B testing, etc.

So there’s a lot of factors involved in website costs. But that’s not a reason to throw up your hands and just say that “it costs what it costs” – or worse, get started on a project and have to quit after a year because it’s more expensive than you wanted the project to be.

Let’s look at the factors individually, how they work, and how they add up.

And while we look at each factor, I’m going to use an analogy that has worked well for readers in my other post about ecommerce. I’m going to compare building a website to building a house since most people are somewhat familiar with what goes into living in a place.

Ecommerce Real Estate Tradeoffs

To start, begin imagining a hosted website builder like a townhome in a gated development. You have more control & say over your house than a Facebook page (a hotel room in the analogy), but a lot of things are taken care of with a Homeowner’s Association or Condo fee. A self-hosted website will be a detached single-family home in a neighborhood. There’s no recurring HOA or condo fee, but you are responsible for everything.

Domain Costs

Unless you want your website as a subdomain on someone else’s domain, then a custom domain name is the one critical cost variable for your website.

In our real estate analogy, a domain name is like your street address. You technically don’t need it…unless you want people to be able to find your house / website.

Thankfully, an annual domain does not cost that much. Even if you maintain a WHOIS privacy add-on, a .com domain should not cost more than $12 per year from somewhere like NameCheap which specializes in cheap long-term renewals.

In fact, many hosting companies will usually bundle a free domain for a year with the purchase of a hosting package. And other domain companies like GoDaddy will do very deep discounting (though will be more expensive at renewal). Some hosted website builders will bundle a domain name as well.

Either way, you really only need one, unless you have strong reasons to buy extras.

I’d budget $12 per year for this annual cost.

Hosting Costs

Hosting is where your actual website files live. Whether you are bundling with a website builder or self-hosting on your own hosting account, it’s a cost that you can’t really get away from.

In our real estate analogy, your hosting account is like your land / property. You not only need it, but it can dramatically affect how much of a headache / cost your website is.

Think about land in the real world, sure, there is plenty of super-cheap or even free land…but it usually has some tradeoffs. The land might be distant from highways or it might not have the best neighbors or it might not come with water or electricity.

Hosting is the same way. You can get super-cheap hosting for your website. But you will generally get what you pay for. In fact, paying for a good host can make a lot of your other costs much, much cheaper.

Many hosting companies include domain names, drag & drop tools, high-touch customer-support, and security / backups that take pressure off your domain, software, and labor costs.

For example, the host that runs this site (InMotion Hosting) has WordPress plans that are a bit more expensive than typical web hosting plans. But they come with a subscription to JetPack (speed, security & backups) in addition to high-touch support and a drag & drop design tool.

InMotion Support

 

And plenty of other hosts offer similar setups (like SiteGround, Bluehost, and others). But, of course, the extras can only go so far since hosting costs will likely be your single largest annual cost. Thankfully, it’s also a cost that will generally only rise as your number of visitors rises (and so, presumably, your ability to pay for it).

For a good shared hosting plan, I’d budget $120 per year.*

*Note that many self-hosting plans allow multiple websites on a single account. If you have several websites, then self-hosting makes your per website costs even less. And again, for a hosted website builder, this cost is bundled, but is per website no matter what.

Software Costs

Software is what you’ll use to actually build & operate your website. Now, technically, you don’t need software to build a website.

In our real estate analogy, your software is what makes your actual house. It’s the framing, plumbing, electricity, roofing, drywall – the actual pieces that make the house.

You can hand-code HTML / CSS files and upload to your hosting account for no costs. I’ve done that before. It can be useful. But…almost all website owners (and visitors) want the interactivity, ease of use, versatility, and management functions of modern website software (just like you could cut down trees to make a log cabin…or you could have a house).

Website Hosting HTML Files

There are also a lot of 3rd party software that you might want in addition to your actual website. Think about the costs for email marketing software or design costs / themes or specific plugins (like ecommerce). Sometimes these costs are even greater if you go the hosted website builder route, since sometimes they won’t have native features. You’ll have to add them via a premium app.

For software, you could do $0 per year…but I’d recommend adding in at least $100 per year for backup & marketing software.

Labor Costs

Every website requires time, thought & expertise to actually build & operate. This factor is where you’ll encounter a massive range of costs that is totally up to you.

In our real estate analogy, labor is literally who builds & maintains your property. Do you want to hire an architect or build off pre-made blueprints? Do you want to hire as things come up or have someone in charge of everything? Do you want to outsource cutting the grass or just electrical issues?

If you are self-hosting your website, your software will take care of most of the “bones” of the website, but you’ll still be in charge of choosing an off-the-shelf design / theme. You’ll need to run software updates. You will have access to support via your hosting company, but some things will be out of their scope & expertise.

If you go the hosted route, you’ll have labor pre-paid for that will take care of all the maintenance…but a lot of the design choices will still be up to you. Think of it like an interior designer – most everyone does it DIY…but you can also tell who has spent the money to hire everything out.

I’ve written a guide to hiring a web designer and a marketing consultant, but I also have a guide to building a minimally viable website. There’s a lot of way to budget – all depending on your goals & expertise. I personally do most everything DIY, and spend very little on labor to maintain my website.

But last year I also paid $100 for someone to remove a hack from a client site. I paid $50 for a few image designs. I’ve also paid $500 for a custom plugin. The costs can widely vary, but it’s important to think through your ideal budget and the “what if X happens” budget”.

Annualized Costs

Annualized costs are upfront costs that you smooth out over the course of a project to get a sense of true annual cost.

In our real estate analogy, there are going to be a lot of things that you purchase upfront for a house…that you use but don’t pay for year after year even though they will need to be replaced at some point. Think about your appliances, your roof, your HVAC, etc.

With a website, your annualized costs will mainly be things like a prepaid hosting bill (most hosting companies give big discounts for multi-year commitments), a premium web design or theme, a premium plugin purchase, setup costs, course subscription, etc.

Whatever you have budgeted to spend upfront, I’d recommend smoothing that out and combining it with your annual costs so that you have a good sense of the true cost of your website project.

Sticking with a commitment is usually a mix of good habits and good expectations. I’ve seen too many good website projects start and fizzle because expectations were set too low or too high.

Adding your total website costs will help you back into what your commitment will actually require.

Adding up Total Website Costs per Year

Now, let’s talk about adding it all up. The formula is pretty straightforward. Take all your costs and add them up.

For a small blog project that is self-hosted on WordPress, you’d likely end up with –

  • Domains = $10
  • Hosting = $100
  • Software = $100
  • Labor = $0
  • Annualized = $10 (for 5 years)
  • Total Annual Costs = $220 per year

For a small ecommerce store on Shopify, you’d likely end up with –

  • Domains = $15
  • Hosting = $0
  • Software = $400
  • Labor = $200
  • Annualized = $35 (for 5 years)
  • Total Annual Costs = $650 per year

But here’s the thing. Your costs won’t just vary based on your plans, but also based on what happens.

In large organizations (like the US Army), they refer to “scenario planning”. It’s where you map out several scenarios, determine what costs go with each scenario, and assign probabilities.

It sounds complex, but it doesn’t have to be. It just means that you need to come up with a range of costs depending on what actually happens.

For the small blog project, there’s a scenario where you find out that theme editing is quite easy and you don’t need a premium theme upfront. There’s also one where your site gets hacked and you need to pay Sucuri to clean it for $100.

For the small ecommerce store, there’s a scenario where you really need custom shipping rates and have to upgrade from Basic Shopify, thus increasing your software costs. In another scenario, you get the ropes of installing apps & editing designs, so you don’t need to hire anyone to setup the store.

Add up your range of website costs – you’ll be able to figure out what the project is worth. And what you want to get out of it.

Next Steps

So the true answer to “how much does a website cost per year?” really is… “it depends.”

But there is a way to breakdown your costs with your goals and your resources.

Thinking through your own costs can set the right expectations and set you up for success.

Learn how to find the best web host here and how to find the best website builder here and the best ecommerce hosting here.

Explore my other explainers here. If you found this post useful – do please share 🙂

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Subdomains Explained

Subdomains Explained

A subdomain is a domain that is attached to a root (or main domain) that can direct browser requests to specific files on a specific server.

You are currently looking at files on shivarweb.com – but more specifically, you are looking at files on the www.shivarweb.com subdomain, since I also use subdomains like app.shivarweb.com and other for experiments.

As an analogy, if a domain is like a physical address, but on the Internet, then a subdomain is like a Suite or Apartment number. Like a Suite number, they only make sense as part of the larger address, but they allow visitors to access a more more specific (and usually different) location.

That’s the short version, but there’s more to subdomains than just the definition and an analogy. I’ll cover questions like –

  • What Is a Subdomain?
  • What Is a Subdomain Used For?
  • Subdomain vs Domain
  • Subdomain vs Subdirectory
  • Subdomain Examples
  • How To Create a Subdomain

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 Is a Subdomain

Like I wrote in Domain Names Explained, the Internet is nothing but a bunch of connected devices with IP Addresses (usually a series of numbers like 192.168.0.1). IP Addresses are not only hard to remember, but they change frequently.

A domain name is a great way to provide a memorable way to locate your information on the Internet. It’s easier to say that your website is at shivarweb.com than at 70.39.148.106

But what if you have several different Internet applications that you want to all live on your domain name? That’s where subdomains come in.

Subdomains always come before the root domain and before the top level domain (TLD). For this website, www.shivarweb.com

  • www is the subdomain
  • shivarweb is the root domain
  • com is the top level domain

A subdomain is a part of the root domain, but remains different. You can “point” different subdomains via the Domain Name System (DNS) to completely different server locations.

cPanel documentation says that it is “a subsection of your website that can exist as a new website without a new domain name.”

You can have an infinite number of subdomains and even sub-subdomains. A website can also have no subdomain. If you just see https://website.com (note that lack of anything between https:// and website) – then you are on a site with no subdomain.

That’s how companies can have their website at www.shivarweb.com and their customer portal at login.shivarweb.com and their blog at blog.shivarweb.com – these resources are all at shivarweb.com…but all in different server locations.

What Is a Subdomain Used For

A subdomain is used for providing different resources all within a single domain name, but usually the resources will need to be on a different server.

Since a domain can have an infinite number of subdomains, subdomains are often used to limit confusion, maintain a primary online brand, and cut costs (since a new domain name costs money).

For example, a small company might have an employee dashboard that they run with a 3rd party software app but they also might have a main site that they run with WordPress on their own server. They also might have a merchandise store that they run with Shopify.

All three resources need to live under the company’s domain name, but they all live in different places. They would have to setup – employee.natecompany.com and www.natecompany.com and store.natecompany.com.

Subdomain vs Domain

So what is the difference between a subdomain and a domain name? The short version is that a subdomain needs a domain name to work, but a domain name does not need a subdomain to exist.

A domain name is a core part of you and your brand on the Internet. A subdomain is more of a technical workaround. In fact, you don’t even really need the default “www” subdomain (even though it does make some technical items easier, which is why it sticks around).

As far as using a subdomain vs a domain, it’s often simply a preference. Some companies prefer to have their separate projects on separate domain names entirely. Some companies like to have a nice system of subdomains.

Subdomains can create some technical issues (ie, cross-subdomain tracking, security certificates, etc), but they also solve and simplify other issues.

It’s usually preference.

Subdomain vs Subdirectory

A subdomain is a different domain under the root domain. It appears before the root domain in the URL (ie, subdomain.domain.com.) A subdirectory is a place on a server where certain files live. It appears after the top level domain in the URL (domain.com/subdirectory/).

In an analogy, imagine your website as filing cabinets (remember those?). A subdomain would be different cabinets while a subdirectory would be a folder inside of a cabinet.

Now, there is an ongoing & complex debate on whether it’s better to use a subdirectory or a subdomain for distinct sections / campaigns / microsites.

For example, if you have a Spanish and an English language website, is it better to use es.yoursite.com & en.yoursite.com or yoursite.com/es/ & yoursite.com/en/?

Or, if you have a blog that uses WordPress (and the rest of your site uses Drupal), is it better to use blog.yoursite.com or yoursite.com/blog/?

The short, unhelpful version is that it depends on what software you are using, what your plans are, what your marketing strategy is, and what your technical skills are.

Now, based on my experience as a marketer with a focus on organic traffic & analytics, I say that unless you have a specific, firm reason to use a subdomain, then you should always default to using a subdirectory.

Why? Because Occam’s Razor – a problem-solving principle that states, “Entities should not be multiplied without necessity” or, the simplest solution is most likely the right one.

Subdomains are seem easier to implement upfront without planning. But, they introduce a lot of complexity both upfront and forever into the future. For languages, ecommerce, SEO, analytics, development, security, etc – maintaining a single website location is almost always better.

The only caveat where subdomains usually wins is online software that you want to associate with your domain…but not with your website. Customer portals, some forums, and any internal uses work better with subdomains, since subdomains inherently separate those functions from the rest of your website.

Subdomain Examples

You probably navigate among subdomains constantly and do not realize it. But here’s a few diverse examples of websites who execute subdomains well.

Wikipedia – Languages

Wikipedia

Wikipedia is a heavy user of subdomains. They have subdomains for every language, and sub-subdomains for mobile versions.

Curbed – Brand Identity

Curbed

Curbed is VoxMedia’s real estate & interior design website. Due to the nature of real estate news, they have each focus city on a subdomain with its own independent publishing software. While it is debatable from a purley SEO standpoint, it is a perfect setup to capture local interest & traffic while building a national publishing brand.

NPR – Ecommerce

NPR

NPR is a radio network, first and foremost. Their main domain NPR.org has to be 100% focused on their member stations, news & content. But, they also have merchandise that they would like to sell on their domain to serious fans. A custom Drupal setup runs their content site, but they use Shopify for their shop. This setup is a perfect example for subdomain use.

Kopywriting Kourse – Customer Portal

Kopywriting Kourse

Kopywriting Kourse covers, well, copywriting. They have an extensive free section on their blog that uses WordPress, but they also have a members’ area that runs off customized 3rd party forum software. They want members to stay on the “Kopywriting Kourse” branded site, though the members’ area lives on a subdomain.

*Disclosure – Kopywriting Kourse is a client of mine. I actually helped them setup cross-domain analytics for their subdomains. Again, it was a bit complex, but worthwhile for their specific needs. We certainly considered hosting a forum or social network on a subdirectory, but ruled it out due to their business goals, technical needs, and the spam / security risks of not using 3rd party forum software.

How To Create a Subdomain

So let’s say that a subdomain is right for you. How do you actually make that happen?

To create a subdomain, you need to go wherever your DNS records live (not your domain registration). If you have a hosting company that is separate from your domain registrar, then you’ll likely go to your hosting company.

If it’s at your hosting company, then you’ll navigate to your cPanel and/or account dashboard. There will likely be a shortcut called “subdomains” where you can select your domain and add your subdomain. You’ll need to name it, and then tell it where the software lives on your server. Here’s a screenshot from InMotion Hosting’s subdomain area.

Create Subdomain

Now, that path is simple if both websites will live on the same server. If your websites live elsewhere, then you’ll likely need to edit the DNS records directly. To do this, find where you can edit the “Zone Records”. Once again, here’s a screenshot from my account at InMotion Hosting.

Adding Subdomain

You’ll notice that there will be several records that already exist. You’ll need to add a “Record” based on the software instructions from your software provider. Usually, this will involve setting an A record and a CNAME record. It usually depends on your software’s exact setup.

Next Steps

Subdomains are a useful, but often misunderstood part of the Web. They can be a cost-effective and versatile way to make the most of your domain name, but they can also be a clunky and complex solution to common website setup issues.

Either way, be sure to understand the tradeoffs and what tradeoffs your subdomain setup involves.

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Yahoo! Website Builder Review: Pros, Cons, and Alternatives

Yahoo! Website Builder Review_ Pros, Cons, and Alternatives

Yahoo! Small Business Website Builder is known as an all-inclusive website builder that’s tailored to helping small business owners get up and running online quickly and easily. They’re also known for offering responsive websites, which means the site fits on any device (i.e. a tablet, phone, computer).

See Yahoo’s Current Plans & Pricing

Recently, I gave Yahoo! a try for a full Yahoo! review. But before I get into the pros and cons of my Yahoo! Website Builder 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 Yahoo! Website Builder?

On the wide spectrum of website building solutions, Yahoo! 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.

Using Yahoo! 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 Yahoo!, but that may or may not be what you’re looking for.

As far as competition, Yahoo! competes with all-inclusive website builders like GoDaddy, Wix, Squarespace, Jimdo, and WordPress.com  (and Shopify for online stores).

Compared to their direct competition, they focus on speed, ease of use, and responsive design (again, web jargon for making your website mobile device-friendly). Yahoo! offers several website templates you can customize, and it also allows you to build your own pages from scratch using their premade sections that you can drop onto the page.

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 Yahoo! Website Builder

Here’s what I found to be the pros of using Yahoo! website builder — not just in comparison to direct competitors like GoDaddy and Wix, but as an overall website solution.

Straightforward Sign Up Process

One of the biggest pros of using Yahoo! Sitebuilder is how easy it is to get up and running on the platform. It’s basically just two steps — pick your theme, enter your information to create your account, and you’re in! Yahoo! automatically sets you up with their free plan, so you don’t even have to pull out a credit card.

Yahoo Sign Up Process

This is great for DIYers who want to get up and running as quickly as possible without the hassle of creating a detailed account, selecting a niche, etc.

Template Design / Functionality

Yahoo! also offers a wide selection of template designs that are responsive (AKA they look good on a mobile device, tablet, and computer). There are a wide variety of options to choose from, and all of the templates are really well designed.

Yahoo Website Options

Yahoo! Site Builder isn’t technically drag-and-drop (you choose from premade sections and “drop” those onto your page), but it is fairy intuitive to use. 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.

I did like how the software automatically matches a new “section” to your overall theme for you, so you don’t have to worry about changing the fonts and colors to match what you already have.

Yahoo Apply Website Style

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. It makes Yahoo! Site Builder a great option for small business owners / DIY-ers who want a website that looks professionally designed without having to hire someone to build something custom or spend much time tweaking the design themselves.

Free Starter Plan

Another benefit Yahoo! Site Builder is their free starter plan. In comparison to their direct competitors, Yahoo!’s free plan is fairly extensive.

While some website builders cap your pages or even your access to support with a free plan, Yahoo! offers unlimited pages, support, and even built-in SEO functionality on a page-by-page basis.

Yahoo SEO Elements

There are some cons with the free plan, such as limited storage, having to use a subdomain (ex: yourname.yahoosites.com), and extremely limited integrations — but if you’re looking for a simple site for a short-term project, this could be a solid option.

Some Product Integration

Another benefit of Yahoo! Site Builder is their product integrations. Aside from offering DNS and hosting services, Yahoo! also offers email functionality in their paid plans.

Yahoo Plan Options

You can also get ecommerce functionality, but Yahoo! separates ecommerce websites into an entirely different category (“stores” instead of “websites”) with their own unique pricing plans — which we’ll touch more on in a bit!

Cons

Of course, no review would be complete without looking at the downsides. Every piece of software will have complaints. Let’s look at the specific cons I found with using Yahoo! as your website builder.

Pricing + Plans

While Yahoo! is fairly easy and convenient for DIYers and small businesses, they do leave a lot to be desired when it comes to pricing. All of their plans come with storage caps, which means you’re limited to the photos, documents, files, etc. you store on your website.

It’s confusing to having ecommerce websites in an entirely different category. These websites come with different pricing plans, functionality, and specifications.

On the one hand, this is fine if you know that you want to build a shop from the get-go. But if you wanted to start with a website then add on ecommerce functionality, this structure makes it more complicated.

Yahoo Ecommerce

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 Yahoo! website builder. The convenience of their design setup is great. It’s straightforward and fast, and puts your focus on getting your content into a premade template. You can add pages and sections based on your specific needs, but for the most part, it’s got everything you need.

However, if you want to go anywhere beyond the basics of design, you are limited with the builder. You can’t add anything within the premade sections, you can’t create your own sections, and the elements you can change on the overall template are fairly limited.

Yahoo Design Functions Limited

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 Yahoo! website builder website (in fact, it reminds me a bit of Google Sites).

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, Yahoo! does give some integrations, like DNS / hosting services and email on their paid plans. They also allow you to insert code into the header of your website for things like analytics tracking (even on their free plan).

Yahoo Site Header Code

However, there are a ton of technical features that Yahoo doesn’t provide or that are extremely limited.

For example, let’s look at Yahoo’s SEO features. I can edit the page title, description, and keywords for the site, as well as edit the visibility. But aside from that, I’m pretty locked in to what I have. There’s no options for sitemaps, Schema, Open Graph settings – much less highly advanced options.

Yahoo SEO Limits

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 or putting code into the header of your website.

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

Ownership & Company Structure

My team, my clients and I have seen and worked with a lot of different software companies. One thing that I’ve noticed over the years is that companies have to follow not only the demands of their current customers, but also the demands of their business model. A company might be “good” or “bad” right now, but to know how they’ll be in a few years, it pays to spend a couple minutes thinking about their business model and how they’ll evolve to meet customer and market demands.

For example, anyone who understands that Facebook’s customers are their advertisers, not their users, can understand how & why they do the things they do. There is no inherently “bad” or “good” business model. Every model has tradeoffs. It just pays to know where you, the customer, fit in the picture, especially when you are building something as critical to your business as your website.

Yahoo! Small Business is a division of Oath, now called VerizonMedia. During the break-up and sale of Yahoo! in 2017, Yahoo! Small Business was bundled with other Yahoo! properties like Tumblr, Yahoo! Mail and bought out by Verizon, the American telecommunications giant.

In other words, Yahoo! Website Builder is a product of a division of a subsidiary of one of the largest corporations in the world.

That makes the 5 year outlook of Yahoo! Website Builder…complicated.

The potential upside is that if Verizon gives Yahoo! Small Business budget, resources, autonomy and a super-smart leader…Yahoo! Small Business could have the best products and best pricing on the Internet.

The huge downside is that if Yahoo! Small Business gets lost in the shuffle of corporate bureaucracy, then they could end up like Tumblr (another VerizonMedia property) where they’ve bled engineers, killed brand equity, and sent users fleeing for other solutions.

But in all likelihood, Yahoo! Small Business will probably end up like Blogger. A fine product, but one that is treading water within a much larger organization, especially compared with direct competitors who are either publicly-traded & focused on the SMB market (like Wix or Gator) or private & founder-driven like WordPress.com or Website Creator.

Yahoo! Review Conclusion

Yahoo certainly makes getting a website up and running easy, and given how intuitive it is to use, it makes the platform an okay choice for small business owners who need something that’s simple.

Check out Yahoo’s plans here.

However, like most all-inclusive website builders, there does come a point where there’s a tradeoff between convenience and control, especially when you factor in price. Yahoo’s pricing leaves something to be desired, especially when you get into the higher priced plans and take into account the technical limitations, even with the higher priced options. If you’re looking for something that offers more control and scalability, you’re better off elsewhere.

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

The post Yahoo! Website Builder Review: Pros, Cons, and Alternatives appeared first on ShivarWeb.

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How to Accept Online Payments With Square

When you are ready to start selling online, Square (read our review) offers a wide variety of options depending on your skill level and needs. For example, if time is of the essence or you don’t want to fuss with code, build a free online store from Square’s templates and get up and running by the end of the day.

Already have a site? Choose a plugin integration from the Square Dashboard that solves your problem — without the need for code.

But those aren’t all of your options. If you do have developer expertise, you can build your checkout flow with Square Transactions API and start accepting all major credit cards with digital wallet support, too.  Square Checkout is yet another developer option that requires less coding with a pre-built payment form and digital wallet support.

In this post, we’ll explore each path so that you can get the facts and navigate to the choices right for you. Before you know it, you’ll have launched your own online store and can move on to more exciting business matters.

Note: If you’re also curious about in-store payments, check out our related post, How To Use Square To Accept Credit Cards In Person.

Webstore Integrations Developers

Build Your Webstore Quickly & Easily

Integrate With Popular eCommerce Software

Developer-Friendly Tools For Customization

Get Started

Get Started

Get Started

Highlights:

  • No coding required
  • Free personalized URL
  • Premade customizable themes
  • No hosting fees
  • Manage from your Dashboard
  • Mobile-ready storefront
  • Integrate with your in-person store

Integrate with:

  • WooCommerce
  • BigCommerce
  • Ecwid
  • 3dcart
  • OpenCart
  • Zen Cart
  • Weebly
  • WordPress.com
  • Wix
  • +More

Highlights:

  • API for custom solutions
  • In-person solutions
  • Online solutions
  • Card reader SDK
  • Customer management solutions
  • PCI and EMV compliance
  • End-to-end encryption
  • Dispute management
  • Fraud detection

Instant Account Setup

Fast Funding

No Monthly Fees

2.90% + $0.30 for online sales

Instant Account Setup

Fast Funding

No Monthly Fees

2.90% + $0.30 for online sales

Instant Account Setup

Fast Funding

No Monthly Fees

2.90% + $0.30 for online sales

How Much Does Square Charge For Online Payments?

The cost question can be a very loaded one when it comes to payment processing. The great news is that Square offers a transparent pricing model.

To process credit cards online with Square, you’ll pay 2.9% + $0.30 per transaction. The significant thing to note is that this flat fee encompasses much more than is typical with traditional merchant accounts. For instance, you don’t need to worry about a payment gateway (and the expenses that go with it) when you process through Square. Read on below to learn the differences between Square and a traditional merchant account — and why they matter.

Traditional Merchant Account Vs. Square

Square’s hardware and services encompass an end-to-end processing system that captures payment information and encrypts it through the payment chain with no need for a separate payment gateway.

What this means for you is cost-savings compared to a traditional merchant account. You won’t be paying initial set-up fees, PCI compliance fees, monthly account fees, batch fees, or higher rates for processing cards like American Express. Square also doesn’t assess any chargeback fees and offers merchants up to $250/month in chargeback protection. All of this is a pretty big deal because Square spares business owners from the laundry list of itemized charges that can come with traditional merchant accounts.

So if Square isn’t a traditional merchant account, what is it? Square is a third party processor. This means that instead of opening a merchant account directly, you are basically a sub-user on Square’s giant merchant account, along with all of Square’s other customers. Square acts as a payment processor and also assumes the financial risk associated with your business to do so. The whole premise behind Square is that it makes setting up a shop very easy for the busy entrepreneur. In fact, you can get an account set up and running to take payment the very same day. The Square sign-up process doesn’t even require a credit check!

While you don’t need to jump through a lot of hoops to open up an account with Square (as you would working directly with a bank), Square is more apt to terminate or put a hold on an account if certain red flags are raised. While the overwhelming majority of businesses will never have a problem with an account hold, it can be disconcerting if it happens to you. Check out our post How to Avoid Merchant Account Holds, Freezes, and Terminations to find out more. Again, most merchants will likely never have to face this issue, but it helps to cover your bases.

Now that we have covered Square Payments as a third party processor and the cost of processing, let’s dig into Square’s offerings when it comes to going live and selling online.

Option 1: Build A Free Square Online Store

Square Store Template

As I said in the introduction, you can get a free Square store up and running today with no technical expertise needed. This whole process is powered by Square Payments and Weebly (read our review). After creating a Square account, you can go back into your dashboard and select “Online Store” in the menu. Then, Square leads you through the process of selecting the categories that most closely apply to your business. You’ll get a suggested template, but you can choose a different one if you fancy another one better. You can also add your logo, choose from limited fonts, and have some color choices, but overall the design freedom here is limited to the template itself.

Again, for being free, there isn’t much to complain about. A Square store is the simplest solution to get your shop up and running. All you need to do is add your products — your eCommerce shop syncs with Square POS and all of the other Square software and tools. Your inventory automatically updates when you sell an item, too.

One potential drawback to the freemium option, however, is that you are bound to the Weebly logo in your domain name and the footer of your website, and your shipping options are minimal. The screenshot below shows the shipping options available when setting up the free Square store with Weebly. Note that you must upgrade your Weebly plan to calculate real-time shipping rates:

Square Free Store Shipping Setup

If you want a bit more customization and dynamic shipping calculations (among other upgrades), you can purchase a domain and upgrade to a professional or premium account through Weebly.

Square Online Store Upgrade Options

Square and Weebly

The free online store option, although robust in its own way, limits you a bit. As you can see from above, for example, if your company relies heavily on shipping items with large size or weight ranges, it may be worth it to you to go to the Premium eCommerce plan for the real-time shipping rate calculator and accurate rates for UPS, FedEx, or other third party carriers.

The free store also has a 500 MB storage space limit, which could limit the number of photos on your site. The paid tiers give you a considerable upgrade with unlimited space, along with website analytics and insights.

As far as accepting payment goes, you can accept all major credit cards. Digital wallets like Apple Pay are not supported at this time, but I suspect they will be soon. For more about the pros and cons of this solution, check out our Square Online Store and eCommerce Review.

Option 2: Connect Square To An eCommerce Platform

Square eCommerce Apps

Whether you already have your site up and running or you are building your site from the ground up (or somewhere in between), you can probably find what you need in the Square App Marketplace. Square integrates with many eCommerce platforms, including:

  • 3dcart (read our review)
  • Wix (read our review)
  • BigCommerce (read our review)
  • WooCommerce (read our review)
  • Ecwid (read our review)

And of course — let’s not forget that Square also integrates with Weebly, as well as WordPress and WP EasyCart.

On the topic of app integrations and Square, it’s worth noting that Square can easily integrate with a range of different types of apps that you can shop for right from your dashboard. You can find everything from accounting to invoicing, employee management, loyalty and rewards, and marketing, to name a few. Pricing depends entirely on the apps themselves, but the Square App Marketplace is set up to compare costs easily.

All of Square’s basic eCommerce features integrate with these apps, so you’ll be able to enjoy the same payment processing rates, security protection, and inventory updates as you sell. Of course, each app platform has specific features and benefits, so the finished product (and look) varies depending on the integrated solution you choose. Check out The Best eCommerce Integrations That Work With Square Payments for our top picks!

Option 3: Build Your Own Checkout With Square APIs

If you already have your own site and you have developer expertise, then you have two more options thanks to Square API: Square Checkout and Transactions API. The most significant difference between the two is that Square Checkout is much closer to an out-of-the-box solution. With Square Checkout, Square is actually hosting the payment form, and the UI is already done for you. If you want more freedom in the checkout and payment UI and you want to host the payment form on your site with customized branding, you can opt for Square Transactions API.

Here is a handy side-by-side comparison chart to give you an overview of what you can expect with each solution. Note: All Square APIs and SDKs are free to use. As always, you pay only the payment processing fees.

Square Checkout Feature Square Transactions API
Yes Requires Developer Support Yes
No Can Customize Yes
Yes Square Hosted No (You host)
Yes Store Customer Data Yes (With integration)
No Card on File & Recurring Payments Yes (With integration)
Yes (Customer data
& itemization)
Detailed Dashboard Reports No (Transaction
amount only)
Recommended,
not required
SSL Needed Yes, with
separate integration
Yes Eligible for Chargeback Protection Yes (with conditions)
Yes Data Encryption Yes
Yes PCI Compliance Included Yes
Yes Itemization Yes, with Orders API
No Dynamic Shipping Calculations No
Yes Accept Google Pay Yes
Yes Accept Apple Pay Yes
No Accept MasterPass Yes
Yes Accept All Major Credit Cards Yes
Yes Inventory Syncing Yes, with Inventory API

The choice between Square API and Transactions API largely depends on your particular needs and what you find most important in the customer journey.

Other Ways To Accept Online Payments With Square

Square Developer In-App

Though we have explored several options in Square payments, there are yet a few more to keep in mind. Before we go on, it’s worth mentioning that you can’t add an embeddable “Buy Now” button to any site like you can with PayPal or even Shopify. However, there are still ways to take payments online — even without a website! Let’s check out the last two ways you can take payments via Square from your customer online — through invoices and in-app payments.

Invoices

Square Invoices

You don’t need an online store to send and collect payment from your customers if you use invoices. Square allows you to send one-off invoices for single orders, or to set up recurring invoices for subscriptions or even installments. It’s easy to track the status of invoices and follow up right from your Square Dashboard, too. Want more info on invoices? Check out How To Use Square Invoices To Ensure You Get Paid On Time so you can leverage this option for your business.

In-App Payments

With all the cash being exchanged through in-app purchases, it was only a matter of time before Square decided to join the party. That’s right; now Square offers in-app payment support with a few lines of code! You can update elements to match your app’s style and have the freedom to customize the look and feel however you want. It’s all in Square’s Transaction APIs and completely free for you to use with your Square account.

Is Square Online Payments Right For You?

Square offers solutions for both the tech-savvy and those who want something ready to run out of the box. With that being said, the more appropriate question is, “Which of Square Online Payment solutions are right for you?” And that answer comes down to your needs. From a quick-to-set up Square Store to Transaction APIs that are customizable and free to us, or plug-ins apps that add eCommerce to your existing site, there are many solutions to choose.

Keep in mind that you can add or subtract Square’s services and other integrations to scale up or down with you as needed, so you don’t have to make a final decision today. Setting up a Square account is the first step to get the ball rolling and see the options along the way. With no sign-up fees, binding contracts, or credit checks, Square is one of the least intimating companies to deal with if you are just checking things out.

The post How to Accept Online Payments With Square appeared first on Merchant Maverick.

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How To Start And Fund A Coffee Shop


opening a coffee shop

Coffee shops are vital places. Not only do they sell brewed happiness, without which I could not function, but they are important for communities as well. A coffee shop is where people meet up, whether to catch up with friends, go on a first date, or conduct a casual business interview. Thanks to the WiFi revolution, coffee houses have also become destinations where remote workers and freelancers can connect from their laptops and students can study for exams.

Coffee shops these days even have significance in the culinary world. Ten or fifteen years ago, you could go to a coffee shop to get a coffee and a muffin. No one had heard of third-wave coffee, latte art, single-origin pour-overs, acai bowls, or even avocado toast, but today, these are probably standard fare at the most happening coffee shop near you.

The high customer demand for an enhanced coffee house experience means lucrative opportunities for local business owners who want to enter the coffee shop business. By opening a coffee shop, you have the potential to create a unique business that could become one of the hottest destinations in your city. But first, you’ll need to do your research on how to establish a successful coffee shop, and perhaps most importantly, figure out how you’ll fund your business venture.

In this post, I describe the main steps for opening a coffee shop. I also outline the best ways to finance a new coffee shop business, with suggestions for recommended lenders in each category.

Preparing To Start A New Coffee Shop Business

If you’ve decided you want to open your own coffee shop (or are at least pretty sure), here’s what you need to do to get started.

1. Decide Whether To Buy A Franchise

Becoming a franchisee isn’t for everyone, but it might be right for you. There are a lot of benefits to purchasing a turnkey business where most of the elements you need to run the business are already in place. You might want to at least consider which coffee shop franchises you could potentially open in your area, and the costs associated with franchise ownership vs. the costs of opening and operating an independent coffee shop.

2. Determine What You’ll Sell

What do you envision your coffee shop’s menu looking like? Do you want to sell only coffee/espresso drinks and pre-made pastries, or have a larger offering that would require a kitchen where food is prepared onsite? Will you serve lunch or just snacks? What about mugs, t-shirts, or other non-food merch? It’s important to have at least a general idea of what you’ll sell early on in the process because this will determine what type of business space you’ll need, as well as your overall vision for your business.

3. Choose A Name & Theme

Next to your menu, the overall vibe and branding of your coffee shop will play a huge part in determining your success. A lot of thought must go into your business’s name and logo, both of which should reflect your theme. If you want to set your business apart from other offerings in your area, it will need to have a unique appeal. In marketing, this is called your business’s “unique value proposition” or “unique selling proposition.” Determining your UVP now will also help you down the road when you’re applying for financing — and also when marketing your business with signage, on social media, etc.

4. Create A Business Plan

Your business plan is essential in guiding the development of your business. In fact, it’s a document that most lenders will require when you apply for financing. Your plan will describe your UVP, and will also have information about how you intend to run your coffee shop. The plan might include specific information about how much financing you need, projected profits, information about ownership and management, relevant market research, competitors in your area, and other details. You should be able to find some sample business plans for coffee shops online to help you get started.

Some more things to consider when creating your coffee shop business plan include:

  • Business hours
  • Floor plan, including the layout of outlets for laptops, whether you’ll have community tables, etc.
  • Decor—Will you go eclectic hodgepodge or streamlined/modern? Keep your theme in mind.
  • What type of music you’ll play
  • Whether you’ll appeal to kids with offerings such as board games and kids’ drinks
  • Community events you might host—For example, open mic night, family board game night, jazz night, etc.

5. Find A Location

An essential component of starting any business is finding a place to set up shop. Maybe there is a vacant business space in town that you’ve already been eyeing, or perhaps you aren’t sure where to look yet. The design of the space itself needs to meet your needs, while the location in relation to other places of interest is just as important. Foot traffic, proximity to competitors, and convenience for university students are all aspects to consider. You should also consider whether you want to have the sort of space where people can feel comfortable working all day, or if you’d rather have minimal seating so people will be on their way shortly after making their purchase. Depending on your budget and theme, you might consider choosing a former coffee shop or restaurant space so that you won’t have to do extensive remodeling.

Funding Your Coffee Shop

business line of credit loan

Assuming you don’t have personal savings to open your business, you’ll need to get creative in order to secure financing for your brand-new business—traditional lending institutions such as banks and credit unions will usually want to see that you have at least two years in business. However, once you have a solid business plan and prospective location for your coffee shop, it will be easier to find parties who are willing to lend to you. Prospective business owners with good credit and business experience will have the most options, but there are even options for startups with bad credit.

1. Family & Friends

While most of us aren’t blessed enough to have a wealthy aunt willing to fund our wildest dreams, if you do have such an aunt, now is the time to hit her up. You can even hire a lawyer to draw up a contract for a loan between you and your aunt (I’m starting to feel like I know her now—let’s call her Aunt Judy), or use a service like LoanBack that formalizes loan contracts between friends and family.

If you don’t have an Aunt Judy but have personal and/or business contacts that might be willing to invest smaller amounts in your business, you might consider using a platform like Kiva. Kiva lets you crowdfund a small business loan up to $10K, provided you meet their terms and have a certain number of friends/family members from your personal network willing to back your loan.

2. Short-Term Business Loan

Most traditional business loans, which are repaid in installments over a number of years, require you to have at least a couple of years in business. An alternative business lending option available to newer businesses (and sometimes even startups) is a short-term loan. These loans can potentially carry high interest rates and you could be required to repay your loan in a matter of months, or sometimes even weeks. However, STLs can be a viable lending option for businesses that don’t have much time in business or business revenue, and many such lenders don’t even require you to have good credit.

Recommended Option: Lendio

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Lendio is an online loan marketplace where you can apply for and compare multiple business loans at once — including short-term loans — potentially up to $500,000. Lendio offers terms as long as 1–3 years, which is a more comfortable repayment frequency compared to many of the predatory short-term lenders you’ll find online. If you don’t have much business experience and aren’t sure what business loans you might qualify for, Lendio is a good place to start. When you can compare multiple loan offers as you can with Lendio, it is much easier to choose the best loan you qualify for.

Lendio Borrower Requirements:

Lendio’s borrower requirements vary depending on which of their lender partners you’re applying with, but the majority of loans in Lendio’s marketplace have these minimum requirements:

  • Time In Business: 6 months
  • Credit Score: 550
  • Business Revenue: $10K/month

3. Personal Loan

A personal loan can be used to fund a business startup such as a coffee shop, as long as the terms of the lender allow you to do so. Personal loans typically have an upper borrowing limit of $30K–$50K and carry higher interest rates than a business loan. You also usually need to have good personal credit. You do not need to have good business credit or any particular business credentials.

Recommended Option: LendingPoint

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LendingPoint is a reputable online lender offering personal loans that can be used for business. These loans are quick and easy to apply for, and you can qualify even if you have a fair personal credit score in the 600s. These are smaller loans—the upper borrowing limit is $25K—but they are accessible to almost anyone with decent credit. You will have between 2–4 years to repay, which is pretty good for an online loan.

LendingPoint Borrower Qualifications:

  • Time In Business: N/A
  • Credit Score: 600
  • Business Revenue: N/A
  • Personal Income: At least $20K/year

4. Short-Term Line Of Credit

Like short-term loans, short-term lines of credit are also open to young businesses that are just getting started. With this type of business financing, you only have to repay what you borrow, similar to a credit card. The downsides are that you’ll have to pay back the principal pretty expediently, with potentially high interest rates and other fees. Nevertheless, a line of credit can be an important source of working capital or expansion funds for a new business. It’s also a smart choice if you don’t know exactly how much money you’ll need.

Recommended Option: Fundbox

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Fundbox is a short-term LOC you might want to consider once you’ve opened up shop and have at least a couple months of coffee-brewing under your belt.

Fundbox offers one of the quickest and easiest business lines of credit with Fundbox Direct Draw. The main requirement for this revolving line of credit is to have been using Fundbox-compatible accounting software for at least two months. Fundbox will use your software account information to evaluate the health of your business, but there are no time-in-business requirements or specific credit score requirements. They will want to see that you’re on course to make at least $50K/year, however. You can borrow up to $100K (depending on how much they approve you for) and will have 12–24 weeks to repay the principal.

Fundbox Direct Draw Borrower Qualifications: 

  • Time In Business: N/A
  • Credit Score: N/A
  • Business Revenue: $50K/year
  • Other: Use of compatible accounting software for 2+ months

5. Startup Loan

A startup loan is a loan specifically for startup businesses with 6 or fewer months in operation. Often, these loans do not have any time-in-business requirements. Similar to a personal loan, a startup lender will want to look at your personal track record as far as credit history, and may possibly even delve into your job history and education level. It is pretty difficult to get this type of loan from a bank, but there are several online lenders that cater to startups.

Recommended Option: Upstart

upstart logo

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Upstart is an online lender aimed at younger borrowers, though applicants of any age can apply. Upstart helps fund startup businesses, as well as personal expenses and debt refinancing. Through Upstart, you can borrow up to $50K to finance your coffee business, with up to 5 years to pay back the loan. The main criterion Upstart cares about is your personal credit score, but having a strong job history and/or a college degree will also help you secure a loan with a good interest rate.

Upstart Borrower Qualifications:

  • Time In Business: N/A
  • Credit Score: 620
  • Business Revenue: N/A

6. Vendor Financing

Some popular coffee shop POS systems offer vendor financing. That is, a POS vendor may offer users of their point of sale system or payment processing service a business loan. These financing products usually have a low barrier to entry and are suitable for coffee shops that have recently opened. Typically, the main requirement is that you are an active user of the vendor’s product.

Recommended Option: Shopify Capital

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If you use Shopify Payments at your coffee shop, you may be eligible to get a short-term loan or merchant cash advance through Shopify Capital. You cannot apply for this loan; rather, Shopify will let you know if you are eligible. You can borrow a maximum of $500K, and Shopify will deduct a portion of your sales each day until the cash advance is fully remitted (paid off). With a STL from Shopify Capital, you have up to a year to pay it off. We like Shopify POS system a lot, but if you use another POS system, you will not be eligible for Shopify financing.

If you use Square as your coffee shop POS, Square Capital is a similar financing product you may be eligible for. Or, if you let customers pay with PayPal, PayPal Working Capital is an option.

Shopify Capital Borrower Requirements:

  • Time In Business: N/A
  • Credit Score: N/A
  • Business Revenue: N/A
  • Other: Have a US-based Shopify Payments account, with a low-risk profile, and process a certain amount per month

7. ROBS

Rollovers As Business Startups (ROBS) is a strategy to leverage your retirement account to start a new business. Because this method is technically a rollover, you won’t be penalized for removing funds from your 401(k), IRA, or another retirement account prematurely. Also, since you’re not borrowing money, there is nothing to pay back and no borrowing fees. The downside is that if your business fails, you could lose your investment, and potentially your chance to retire comfortably if you don’t have any other savings. A ROBS is a somewhat complicated transaction, but a ROBS provider will help you set up the new account to fund your business in exchange for a setup fee and a monthly service fee.

Recommended Option: Benetrends

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Benetrends’ financing options include ROBS as well as loans. Benetrends’ popular ROBS “Rainmaker” plan has financed more than 15,000 small business owners to date and is one of the top ROBS plans out there. Benetrends has clear, fair terms and excellent customer service. This ROBS provider charges a one-time $4,995 setup fee, and an ongoing monthly service fee of $130/month.

Benetrends Rainmaker Borrower Qualifications:

The only borrower requirement is that you have an eligible retirement account with at least $50,000. Eligible accounts include:

  • 401(k)
  • 403(b)
  • Traditional IRA
  • Thrift Savings Plan (TSP)
  • Simplified Employee Pension (SEP)
  • Keogh

Ineligible plans include Roth IRAs, 457 Plans for non-governmental agencies,  and distribution of death benefits from an IRA other than to the spouse.

8. Purchase Financing

Similar to purchase order financing, purchase financing is an alternative lending product that allows you to repay your vendors for business purchases in installments. The purchase financing company pays your invoices upfront, and then you repay the financing company in installments. Purchase financing lets newer businesses, such as a coffee shop startup, acquire the materials and equipment needed to open up shop, without having to pay for their supplies all at once. You can think of purchase financing as somewhere between a line of credit and a credit card.

Recommended Option: Behalf

behalf logo

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Behalf is a purchase financing company that offers financing for business purchases, at interest rates of 1%–3% per month. Behalf pays your merchants, and then you repay Behalf in weekly or monthly installments over a period as long as 6 months. This service has a very simple application, with transparent terms and no hidden fees. You can borrow up to $50K, depending on how much you are approved for.

You can use Behalf to fund purchases for most inventory or services, such as coffee beans or business consultant fees, but you cannot use the service for things like paying off existing debt or covering payroll.

Behalf Borrower Requirements

  • Time In Business: N/A
  • Credit Score: N/A
  • Business Revenue: N/A

Note that even though there is no stated credit score minimum, Behalf does do a hard pull on your credit during the application score, and will evaluate your business finances as well.

9. Credit Card

A business or personal credit card has its limitations, as your credit limit probably won’t be high enough to pay for all your startup costs. However, a credit card is a lot easier to get than a business loan, and if you play your cards right (ha ha) you might not have to pay any financing fees at all. Credit cards offer more cash-back and other rewards than ever before, particularly for business cards, and many cards also offer a 0% introductory APR for the first year. Moreover, opening a business credit card will help your new businesses establish and build your business credit profile.

Recommended Option: Chase Ink Unlimited

Chase Ink Business Unlimited


chase ink business unlimited
Compare 

Annual Fee:


$0

 

Purchase APR:


15.49% – 21.49%, Variable

There’s a lot to like about Chase’s newest business card, Ink Business Unlimited℠. This card offers unlimited 1.5% cash-back on all purchases, combined with no annual fee, a $500 credit if you spend $3K in the first 3 months, and a 12-month 0% introductory APR. This card also carries other useful benefits such as purchase protection against damage and theft, and additional employee cards at no extra cost.

Ink Business Unlimited℠ Eligibility

To be eligible for this card, you need to have good to excellent credit.

If your credit score isn’t your strong suit, no worries. Check out this list of Business Credit Cards For People With Bad Credit.

Opening Your Cafe

Now that you have your business vision, location, and funding in place, it’s time to get ready to open to the public. If you take all of these steps, you should have everything you need to run a successful business, including a demand for your product.

1. Assemble Your Professional Team

Starting a business usually requires you to hire professionals such as accountants, attorneys, architects, and business consultants. At the very least, you will want to have an accountant you trust, as this person can also act as your business consultant in many ways. Professional fees can be high, but can save you a lot of money and headaches down the road.

2. Begin Remodeling

Unless you are building from scratch, you will most likely need to do at least some remodeling to your coffee shop business space to make it fit your needs and vision. At the very least, you’ll need to add signage and repaint. Be thoughtful when choosing the decor, from floor to ceiling. If you need to do extensive remodeling, an SBA 504 Commercial Construction loan might help you finance the renovations. Of course, if you are renting, there will likely be limitations on what changes you can make to your business space.

3. Acquire Equipment & Materials

Before you can start brewing, baking, and all that, you’ll need the proper equipment and raw ingredients. This will require careful consideration, particularly when choosing vendors for coffee beans and other food and drink materials. Make sure you do your research and do plenty of taste tests, because the worst thing a coffee shop can have is yucky-tasting coffee. When selecting vendors for your coffee beans and other raw ingredients, be sure to consider things that your customers might care about, such as whether the coffee comes from sustainable farms or is organic.

In terms of coffee shop equipment, you may have the option to lease or buy. Equipment financing is one way a lot of restauranteurs acquire kitchen equipment, and one you might consider also. Proceeds from SBA 504 loans can also be used to purchase kitchen equipment.

4. Create A Buzz With Marketing

There are so many innovative ways to start creating a buzz around town before your coffee shop even opens. Some of these include:

  • Giving out samples of your coffee at local events
  • Updating your building’s exterior with signage and other eye-catching improvements
  • Setting up a direct mail campaign in targeted regions
  • Alerting the media to your grand opening
  • Social media marketing (more on that in a minute)

Essentially, you want people to be excited about your coffee shop before it even opens. Fortunately, social media and the internet makes this easier than ever.

5. Bolster Your Web Presence

Your business website and social media profiles need to be in place before your coffee shop opens. If you don’t have the time or budget to hire a web designer, you can still create a functional and attractive website using a website builder such as Squarespace or Wix. Posting to Instagram and other social sites before the grand opening will also help you create a buzz and establish an online presence.

Here are a couple of resources that will help you build your online presence for your coffee shop:

  • Guide to creating/maintaining a web presence
  • Guide to social media marketing

6. Hire & Train Employees

Your employees and the level of customer service they provide will ultimately make or break your coffee shop. You will need to be smart and careful in your hiring process, and train the employees thoroughly so they know not only your processes but also the atmosphere you are trying to create. It’s important to value your employees and offer competitive wages and perks, even if that means cutting costs somewhere else; if you pay minimum wage, employees will ultimately be grumpy with one foot out the door. By establishing a positive corporate culture and showing employees you value them, you will create an awesome team that will take your business to the next level.

7. Choose A POS System

Your point of sale is where you make all your money, so it’s super important that you choose a good one! You do not want a system that is unreliable or only pairs with a crappy merchant service provider that charges exorbitant swipe fees. Thus, you will need to test out multiple systems and read reviews before selecting a system. You’ll also need to figure out which features you need and which you can live without. Many modern cloud-based POS systems are essentially complete business management software programs, with built-in inventory management, employee management, accounting integration, loyalty software, and even more functions. You also have the choice to go all out with POS hardware add-ons such as digital menu boards and self-order kiosks, or keep it simple with a single iPad register.

More important than having a POS with all the bells and whistles, it is essential that the POS system you select integrates with a high-quality merchant services provider (or choice of merchant service providers). Your merchant service provider will determine what percentage of your credit card sales you’ll hand over, how issues such as chargebacks are handled, and how much you’ll pay to exit the contract if you’re not happy with the level of service.

To start your POS research, I recommend reading our article on the best POS systems for coffee shops.

Final Thoughts

There are so many things to consider when starting any business, particularly a business in the restaurant industry. However, as long as you have a solid business plan and financing in place, the rest is really just details. Opening a coffee shop is a practical choice for a lot of prospective business owners, as there will always be demand for good coffee and a place to drink it. Not only that, but it’s also a choice that will allow you to express your individuality and become a vibrant part of the local community in a way that many business types aren’t suited for.

If all this sounds good to you, I encourage you to get started so you can open the go-to coffee shop in your city before someone else does.

Oh, and don’t forget the free WiFi!

The post How To Start And Fund A Coffee Shop appeared first on Merchant Maverick.

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InMotion Hosting Website Creator Review: Pros, Cons & Alternatives

Website Creator Review

Website Creator is a stand-alone website builder product built & sold by InMotion Hosting, one of the largest independent web hosting companies in the world.

See Website Creator Plans & Pricing here.

InMotion Hosting has been in the web hosting business since 2001. Unlike many hosting companies, they remain staunchly independent and focused primarily on website products for small businesses. They have an emphasis on customer support and raw performance.

While they still have a range of hosting products (my InMotion Hosting Review), they have also been quick to respond to changes in customer demand. Website Creator came out of that effort.

The big demand of the past 5 years has been for easy to use, bundled, drag and drop website builders. But popular website builders pose some risks for business owners investing in a long-term project.

Website Creator was created for small business owners who need to easily DIY their own website, but also are thinking seriously about how to best build their website for scalability, versatility, and long-term success.

Since I’ve been a user of InMotion’s hosting products for quite some time, I recently decided to give their new website builder, Website Creator, a try for a small, quick project.

Before I dive into pros and cons, let’s talk about some basics.

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

What Is Website Creator?

Imagine website builders on a spectrum of convenience and control.

On the maximum convenience end, you have Instagram. It’s super-easy to use. But you have zero control over how your account design or function.

On the maximum control end, you have a server that you own an operate. You hand write all the HTML & CSS. It offers maximum control, but zero convenience. Most people tends toward to the middle options.

Self-hosted WordPress is software that you install on your own hosting account. It has a learning curve, but offers a lot more convenience while still providing total control over your files & server.

Wix is a popular drag & drop builder that has much less of a learning curve & more convenience than self-hosted WordPress. But they also have to limit data exports & your server access.

Some small business owners don’t like either tradeoff – and that’s the slice that Website Creator is focused on. I’ll get to this in the Pros & Cons, but Website Creator is actually built on top of WordPress on a hosting account that you own. So even though it has the drag & drop and streamlined website launch of a popular website builder, it’s still creating actual files on an actual server that you can access and export should you ever need to grow or rework your website.

In other words, think about a single-family home, a condominium, and a townhome. Self-hosted WordPress is a single-family home where you own & are responsible for everything. Hosted website builders are like a condominium where you own everything within the walls but outsource the rest to the Condo Owner’s Association.

Website Creator tries to be like a townhome. You have contracted landscapers, plumbers, and a Homeowners’ Association, but when it comes down to it – you still own the land and the structure.

With all that said, here are some of the Pros & Cons of Website Creator as a general website solution.

Pros of Using Website Creator

Here’s what I found to be the pros of using Website Creator, not just compared to Site123 and Gator, but as a website builder in general.

Convenience AND Control

Website Creator’s biggest pro is the fact that it combines convenience and control — which is typically where business owners have to make a trade off when it comes to website builders (even the best ones).

Website Creator is actually a bundle that combines hosting (on InMotion), a website software or CMS (WordPress), and a drag & drop tool (BoldGrid). Which means when you sign up for Website Creator, you’re actually getting a self-hosted WordPress website with an installed drag-and-drop website builder (and tons of base templates to use) that you fully own and that any developer or marketer can work with. You don’t have to go piecing all the elements together or put off getting started until you have the “right” web designer.

You can just DIY and rest easy knowing that when the time comes, you can upgrade your content, design & marketing as your business needs.

Ownership

Again, Website Creator does a great job of giving users control — and that includes ownership.

Now, when it comes to website builders, I generally think of website ownership in 3 ways.

The first point is brand asset & copyright ownership. There is no website builder that would ever be able to “own” your website. Not even Instagram does that. If you author the text, images, video, logos, etc. then you own the copyright.

But when it comes to the other two points of ownership, not all website builders are created equally.

The second facet of ownership revolves around “website look and feel”. Websites are simply files that a browser can render. The look and feel is inherently not only your content, but also the combination of actual files used to render your site. This is where ownership gets tricky. Some website builders do not give you access or copyright to the actual files that are generated with your content. Some give you copyright and limited access. Some give you full copyright and full access.

Why would you need full access? Well, let’s say you want to sell or move your website to another provider. If you do not have access to the actual CSS files or actual JS files, then you cannot sell or transfer the site exactly as it currently is.

And the third point is practical ownership. So even if you own your entire website – JS, CSS, HTML, images, text, etc – if you cannot download it to your computer or transfer it to another server… do you truly own it? This gets tricky. It doesn’t really matter, until it does.

If you have a 10 page website for your dental office, this point really doesn’t matter. But if you are building a reference site for your organization that will eventually have thousands of pages… then it could matter a lot.

In Website Creator’s case, your site’s files live on an actual server that can be accessed and downloaded. Which means you have full ownership in all three facets — a great feature if you think you’ll ever need to move or recreate your website elsewhere.

Simplicity

Another pro of Website Creator is that once you’re set up, it’s fairly easy to use. As I mentioned above, Website Creator uses BoldGrid, a website builder, to actually create your website.

Website Creator Bold Grid

BoldGrid isn’t technically drag-and-drop. You don’t actually “drag” elements and drop them where you want them. Instead, BoldGrid uses Inspirations, which serve as your base template.

BoldGrid Inspirations

From there, you can add or remove pages, customize the branding (i.e. colors and fonts), or even go so far to add widgets on individual pages.

BoldGrid Inspiration Customization

The range of customization here is extensive. Given Website Creator uses WordPress, you can also install plugins (pieces of software that “plug in” to your website to add functionality), so you essentially create anything you want – that includes things like ecommerce, SEO, appointments, and flying unicorns.

But if you’re trying to keep it simple, BoldGrid’s Inspirations (and customization options within them) provide enough flexibility that you can create something that feels custom without having to totally build something from scratch.

Integrations

And speaking of customization… the ability to add integrations through plugins is a HUGE pro for using Website Creator. Given WordPress is the most popular CMS platform out there, the integrations are practically limitless.

Chances are, there’s been a plugin created to do whatever you need your site to do. And if it hasn’t been created yet, there’s a developer out there who could probably get it done.

Additionally, since you have an actual hosting account running Website Creator, you can integrate with any business email service or analytics package that you need.

Sign Up + Customer Service

Depending on your needs, this could be a pro or a con. Signing up for Website Creator does take some time. They actively try to weed out spam users, which means they review accounts before granting access. Their sign up process says it should take a few minutes to get a confirmation email, but after about an hour, we had to reach out to support to get our account approved and up and running.

The pro here is that you’re dealing with a company that take its software seriously and actively tries to maintain the integrity of it. They don’t let spammers in, and their customer service department is more than willing to expedite the process if you reach out and explain how you plan to use your site.

Flexibility

It’s rare that you get so much flexibility in an all-inclusive website builder, but Website Creator certainly gives you more than any other. The best example of this?

Website Creator actually lets use WordPress themes / custom themes outside of BoldGrid.

Flexibility Website Creator

This essentially means that you have a totally customizable, self-hosted WordPress site with the *option* to use an all-inclusive website builder that has pre-built themes and easy-to-use customization options. It’s a win-win.

Onboarding/Training

Using Website Creator does require a bit of a learning curve (more on that in a bit). However, InMotion’s onboarding and training resources are amazing. With any piece of software, there’s always a moment of “What comes next?”

With InMotion, they cover all the bases. From the moment your account gets approved, you’re given instructions on how to finish your account set, start your website, and get up and running.

Website Creator Onboarding

The account dashboard is refreshingly simple.

Website Creator Backend

They also offer training inside WordPress, so you can learn how to use BoldGrid and customize various elements.

Training Website Creator

Cons of Using Website Creator

Like any piece of software, there are always trade-offs. So here are the cons of using Website Creator:

Slower Sign Up Process

Yep… it can be a con that Website Creator takes time to actively weed out spammers. Why? Because this means the sign up process is slower.

Cumulatively, it took about two hours for us to get our account up and running — which isn’t great if you’re looking for a quick and easy solution to get a website up ASAP.

Learning Curve

Once you get through the sign up and installation process, using BoldGrid is simple (plus InMotion offers a TON of resources to help you through the process). But that doesn’t change the fact that getting up and running with Website Creator isn’t very intuitive. The sign up process is more extensive than most all-inclusive website builders, as is the installation process.

For example, before even getting started, you must have a domain name. There’s no option to use a free subdomain to get you up and running like you can with WordPress.com.

After that, you have to install BoldGrid, which then brings you into WordPress to edit.

Website Creator Getting Started

Again, the training provided by InMotion is stellar — but you do need to take the time to read it. Popular pure-play website builders like Wix, Weebly, Squarespace, Shopify – and even GoDaddy GoCentral all have in-screen on-boarding to show you how to do things while you build it.

If you’re looking to just dive on in and figure it out without having any website building experience, Website Creator probably isn’t the best solution for you.

Website Creator Review Conclusion

Website Creator does come with a learning curve, but it offers a ton of customization, flexibility, and ownership for users. Plus, it gives you the best of both worlds: a self-hosted WordPress website without the hassle of tracking down your hosting, website builder, and CMS.

Check out Website Creator’s plans here.

However, there are trade-offs to consider here. If you’re looking for a quick, easy, intuitive website builder that you can use to throw up a quick project, Website Creator probably isn’t the best choice for you.

Instead, check out my quiz to find what the best website builder is for you based on your preferences.

The post InMotion Hosting Website Creator Review: Pros, Cons & Alternatives appeared first on ShivarWeb.

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WordPress.com Review: Pros & Cons of WordPress.com as a Website Builder

WordPress.com Review

WordPress is one of the most popular pieces of software in the website space. WordPress powers over 25% of the Internet and is famous for its versatility and ease of use.

Its is so well-known, that it’s common for people with some web design experience to generally say “just use WordPress” when referring DIYers and freelancers to a website solution.

But for those who are unfamiliar with the general WordPress world, there is a major point of confusion: WordPress.com vs. WordPress.org.

In this article, I’ll be reviewing WordPress.com as a website builder and general website solution for DIYers.

See WordPress.com’s Plans & Pricing here.

But before I dive into specifics, let’s talk about the difference between WordPress.com and WordPress.org.

WordPress.com vs. WordPress.org: What’s the Difference?

WordPress is the name of a piece of software that can “power” your website on a server. So instead of uploading individual files to a server to create a website, you can use WordPress to create a “backend” where you can log in to your website to create, edit and manage web pages, blog posts, images – any sort of content.

It’s a “content management system” in web development jargon. WordPress is also “open-source” – which means that a community maintains it. A for-profit corporation does not own it. A non-profit foundation technically manages the trademark while leaving the software open under a General Public License.

The software & open-source community live & function at WordPress.org – where anyone can grab a copy of the software.

Note that I still haven’t said anything about it running a website. The other two pieces needed to run a website are hosting (ie, a server to run WordPress and render your website) and a domain name, which allows people to navigate to your website.

WordPress.org is also known as “self-hosted WordPress” because you have to provide the server for the software to live on. You pay for hosting and domain registration fees separately. You can learn how to setup a self-hosted WordPress website here.

And then there’s WordPress.com. It is a for-profit company owned by Automattic and founded by Matt Mullenweg – one of the original developers of WordPress.

WordPress.com is a service (not just the actual software & community) that offers websites / blogs powered by their install of WordPress software. They bundle hosting, support, services, and software into a single subscription. I refer it to as “hosted WordPress”, because you’re buying a hosted version of the software.

The renting vs. buying in real estate works well as an analogy.

WordPress.com = Renting a building for your living space (aka your website). You can pay for upgrades, but ultimately everything is up to your landlord (WordPress.com). That said – your landlord also has to pay to keep everything in working order.

WordPress.org = Owning a building for your living space. You own everything on your own hosting space. You do whatever you want. That said – you are responsible for everything.

If you want to get into the weeds, I wrote a whole post about the differences between WordPress.com and .org. But that analogy says it all.

The key tradeoff here is between convenience and control. WordPress.com is what we call an all-inclusive website builder. It competes directly with other hosted website builders like Squarespace, Weebly, Wix, GoDaddy GoCentral, etc. You sacrifice some control (like FTP access) to get a lot more convenience (like not installing security patches or crashing your own site).

Compared to its direct competition, WordPress.com focuses on scalability, support, and flexibility. Let’s dive further into my WordPress.com review to see how it really compares.

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 WordPress.com as a Website Builder

Here’s what I found to be the pros of using WordPress.com website builder — not just in comparison to direct competitors, but as an overall website solution.

Easy Sign Up Process

One of WordPress.com’s biggest pro is how easy it is to get started. To get your website up and running, you just follow a simple, 6-step process that includes creating an account, filling in your website information, and confirming your email address.

WordPress.com Sign Up Process

They also provide a ton of “onboarding” support (AKA the process of getting up and running with a website). I immediately received an email detail next steps, and was even prodded later in the day when I hadn’t finished a step in the set up.

There was really no part in the sign up process where I wondered, “What’s next?”. The steps were easy to follow, detailed, and included support once I got inside the dashboard.

If you’re looking for a simple, straightforward, and speedy way to go from having no website to having a site ready to build, then WordPress.com is a great choice.

All-in-One Solution

Again, WordPress.com is an all-in-one solution, which means everything you need — from hosting to domain registration to integrations (more on that shortly) to design options is included in the platform.

That means everything just works — there’s no figuring out if this app or extension is compatible or is going to break your site. There’s no troubleshooting or support needs outside of what they already offer. Even things like analytics are built into the platform.

WordPress.com Functionality

Spending less time on research and troubleshooting means you can spend more time on stuff that matters – like content, design, and marketing your site.

Plus, since WordPress.com uses WordPress as it’s CMS (and WordPress is the most popular CMS platform out there), the integrations are practically limitless.

Chances are, there’s been a plugin created to do whatever you need your site to do. And if it hasn’t been created yet, there’s a developer out there who could probably get it done. Just know that on WordPress.com, your advanced customization capabilities, like installing your own plugins and themes, are limited to their highest priced plan (more on that in a bit).

You also don’t have full control over the website functionality, because you don’t have access to your hosting. You still don’t have direct access to your files or your database. So if you want to do something in bulk or something super-technical, then you are out of luck.

That said, compared to other website builders (like Site123 or Jimdo), WordPress.com is inherently more open and accessible because it runs WordPress software. All of your content is in RSS and XML format, so it’s very easy to leave WordPress.com for another service or bulk export your content.

Template Design

When you set up your website with WordPress.com, you have a ton of pre-made templates (“themes” in the WordPress jargon) to choose from, including premium themes that come with higher-priced plans.

WordPress.com also indicates which themes are best for beginners, which is helpful for those who don’t have extensive website experience and are looking for the easiest way to get their website designed and ready to market.

WordPress.com Themes

Inside these themes, you have a range of customization capabilities based on the plan you have. You also have significant customization abilities on the individual pages themselves— even with the free plan. Inside the page builder, you can change the format by adding columns, embedding elements, and even editing the page code if you know HTML / CSS.

WordPress.com Page Customization

WordPress.com Page Code

One thing to note here — you cannot edit/customize the pages on the same screen that you edit the theme. This means that you’re basically designing the pages in a bubble. You can’t see how they play out in the context of the design until you actually go in and edit the theme. If you’re not looking to do any advanced designing, this may not matter to you, but it’s something to keep in mind if you are looking to build lots of websites for clients.

Customer Support

WordPress.com has a robust knowledge base and easily accessible support. In fact, their help button floats in the bottom corner of the Dashboard (and when you’re editing pages), so you can see relevant guides and articles to help you no matter where you are in your website.

WordPress.com Support

You can also chat with another WordPress.com using their “Contact us” button on the floating help section, giving you an additional option if you can’t find the answers you’re looking for.

Cons of Using WordPress.com as a Website Builder

But of course, no website builder review would be complete without looking at the downsides. Every piece of software will have complaints, because there is no website solution that is right for everyone. Let’s look at a few specific cons I found.

Pricing

WordPress.com is a bit pricier than its competitors when you take into account what features are available to you. WordPress.com limits the amount of storage space you get on your website (AKA the number of images, video, audio files, documents, etc. you can upload to your site).

WordPress.com Pricing

Now, there is one caveat. WordPress.com does have a free plan. You can’t use your own domain name. You have to use yourname.wordpress.com – and serve WordPress.com ads on your site. But – it’s free. This plan is certainly my favorite way to get a free, well built website online.

However, it’s not clear that there’s a free plan available unless you go through the pricing tab. For example, if you were to click “Get Started” and just start filling in your information, you’re kind of cornered into buying a plan. There’s no option there to select a free plan. It’s confusing, especially if you don’t know that there’s a free plan available (which technically, you’re automatically signing up for when you create your account).

WordPress.com Pricing No Free Plan

If you are trying to start just a basic informational website or blog and don’t want to deal with hosting, then WordPress.com’s Blogger and Personal plans are well-priced. But for a business or really any size (or website that is going to strive to make money), then it’s a bit hard to compete with running a self-hosted WordPress website or finding another solution like Website Creator (a website builder built on top of WordPress) or another drag & drop website builder.

Learning Curve

Based on your website experience, using WordPress as a CMS does come with a learning curve — and it’s no different when it’s bundled with hosting and DNS services through WordPress.com. Yes, you have various themes to choose from that guide your site customization experience… but even those can be more complicated to tweak than WordPress.com wants to let on. Check out the instructions on customizing this theme I selected.

WordPress.com Theme Customization

If you’re looking for the ease of a simple drag + drop website builder where you can literally drag elements onto the page, drop them in place, and customize your template that way, WordPress.com might not be the best choice for you.

Because here’s the thing. In many ways, WordPress is more than software. It’s like a whole platform / subculture. You know how Facebook has “Likes” and “Newsfeed” and “Groups” and all these other terms that make sense…but only once you’ve used Facebook? Ok – WordPress is like that. When you first start out, there’s all this jargon to figure out. It makes sense quickly, but that doesn’t make it any less weird.

Limited Functionality + Control

WordPress is known for how flexible and adaptable it is as a CMS. It’s a great way to build a website that you plan on keeping for the long haul, because it’s so customizable and scalable. But here’s the thing — those benefits don’t really kick in until you have a self-hosted WordPress (AKA WordPress.org), or until you pay for the premium business plan on WordPress.com, and even then you don’t have full accessibility with your website.

If you’re not looking for a website that you can customize and scale extensively, then this probably doesn’t matter to you. But if you are looking to create a website that you can scale, and you were drawn to WordPress as a CMS because of that, then going with “hosted WordPress” on WordPress.com probably isn’t your best option, because you’re giving up quite a bit of functionality and control.

WooCommerce & JetPack Addendum

At the risk of making this focused review too long, there are two remaining pieces to talk about in regard to WordPress.com and their services.

First is WooCommerce. WooCommerce is a software plugin for WordPress that brings a *ton* of amazing ecommerce functionality to any WordPress website. It is amazing. It has a ton of extensions and integrations only rivaled by Shopify. And it works on any existing website running WordPress. If you are using the WordPress.com, you can add it to your plan.

Since ecommerce has a lot more considerations than a publishing site, many ecommerce owners like to have a “hosted” solution. In this case, WordPress.com provides a great option for websites that are “content-first” but also want a large-ish online store.

Second is JetPack. You know how I mentioned that WordPress.com provides a lot of things like backups, security, and support that a self-hosted WordPress website does not have? Ok, so you can get most of that with JetPack. JetPack is a paid plugin software owned by Automattic that any self-hosted WordPress website can install and get automated backups, security scans, in dashboard support, remote management via the WordPress app and more.

In fact, this website uses JetPack. It costs between Free and $29/mo depending how many services / themes you want (security is free). Plus, there are some hosting companies that bundle JetPack in with your hosting fee, so that it’s super-affordable.

WordPress.com Review Conclusion

WordPress.com has many of the tradeoffs inherent with all website builders while capitalizing on the potential strengths of a website builder (ie, usability & support).

Compared to other established website builder brands, it lacks some pretty significant capabilities, like storage, pricing, and ease of use, but it does compete well on support, theme availability, design, technical aspects, and content publishing.

WordPress.com is a really good fit for anyone looking for a solid website builder that includes more advanced functionality and theme options but still takes the headache out of finding their own hosting and additional services. It’s a great option to just get started. And it’s great for content writers & publishers plus any businesses that have the budget for the Premium Plan.

Check out WordPress.com’s current plans & pricing here.

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

Are you working on a long-term project, need more freedom, or on a budget and don’t mind a learning curve? Check out my posts on trying out self-hosted WordPress and setting up self-hosted WordPress on your own server.

The post WordPress.com Review: Pros & Cons of WordPress.com as a Website Builder appeared first on ShivarWeb.

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The Best Mobile Credit Card Readers For iPhone and iPad

If you’re in the market for a mobile card reader and a credit card processing app, there’s no shortage of options. The trick is finding the right option for a given business. One of the big factors that determine which apps are suitable is what kind of smartphone or tablet you have. Fortunately, if you have an iOS device — that is, an iPhone or an iPad — you have plenty of options.

Our Top Picks For iOS-Based Credit Card Readers & Mobile Apps

The first decision when choosing a card reader and mobile processing app is selecting the device itself. For the most part, iOS-compatible mobile apps and readers support iPhones and iPads alike with no major issues. But after you’ve narrowed down the list of apps based on supported devices, you’ve still got several other factors to consider — transaction costs, monthly fees, essential features, whether you want a standalone mobile app or something that supports invoicing and online payments… and that’s just to get the list started! The cost of the card reader and accepted payment methods are just as important as app features when you’re dealing with mobile processing.

So without further ado, here’s a list of our favorite card swipers and mobile apps for iPhones and iPads, as well as why we like them.

App Name Square Shopify Lite Payment Depot Mobile Fattmerchant Mobile

Payment Depot merchant services review

Review

Visit Site

Review

Visit Site

Review

Visit Site

Review

Visit Site

In-Person Transaction Fees

2.75%

2.7%

2.6% + $0.10

Interchange + $0.15

Monthly Fee

$0

$9

$10

$99

Monthly Minimum

$0

$0

$0

$0

Type of Processor

Third-Party

Third-Party

Merchant Account

Merchant Account

Account Stability

Good

Good

Excellent

Excellent

Card Readers

Free magstripe reader (Contactless + Chip Reader $49)

Free Chip & Swipe Reader (retail price $29)

Free Swift B200 reader (chip and swipe)

BBPOS Chipper BT (chip and swipe, $75; swipe, chip and contactless, $100)

Payment Depot (Swipe Simple)

Payment Depot (read our review) offers a subscription-based pricing model for its merchant accounts, with a host of software options for businesses to choose from (including Clover). Standard pricing plans for Payment Depot start at $49/month, with transactions processing at interchange + $0.15. However, if you’re looking for a mobile solution that runs on an iPad or iPhone, Payment Depot offers the Swipe Simple app, and Merchant Maverick readers can get access to special pricing that’s competitive even for low-volume merchants.

With this exclusive plan, you’ll get the Swipe Simple app and payment processing at 2.6% + $0.10 per transaction, with only a $10 monthly account fee. Remember, this is a Merchant Maverick exclusive, so you’ll need to use our link in order to get the special pricing.

Swipe Simple is a very functional credit card processing app. It runs on iPhone and iPad devices, as well as Android hardware. It even comes with a demo mode so you can test out the app before you sign up, which is always nice to see. There’s limited inventory management, but you can track stock counts. There’s even an offline mode. Check out our Payment Depot Mobile/Swipe Simple review for a closer look at the software.

In addition to the app, Payment Depot offers a choice of two readers. The Swift B200, a Bluetooth-enabled reader that supports magstripe and chip card transactions, is available to merchants for free. If you’d like to add contactless payments, you can get the Swift B250 for just $25, which is a fantastic price for an all-in-one card reader.

Shopify Lite

Shopify (read our review) is mostly known for its ecommerce platform, but it has also developed a quite powerful POS app that integrates with its online shopping tools. Shopify POS is included for free in all standard Shopify ecommerce plans, but if you don’t plan to sell online or only need some very basic online sales tools, there’s another option: Shopify Lite (read our review), which lets you create “buy” buttons and run a Facebook store for online sales, as well as giving access to the Shopify POS.

Shopify Lite will run you $9/month and 2.7% per transaction, which is a reasonable cost. The POS app runs on both Android and iOS, but an iPad offers the best user experience and access to the most features. However, keep in mind that the Lite plan is still limited even with an iPad; specifically, there’s no support for a cash drawer, barcode scanner, or receipt printer. That feature is only accessible with the Shopify Basic plan, which costs $29/month and includes a full web store with unlimited products.

Shopify also offers a free Chip & Swipe Reader for its merchants. It retails for $29 normally, which is still a great price for a Bluetooth-enabled chip card reader. We’ve reviewed the Shopify Chip & Swipe reader already, and you can check that out for a closer look.

Square

Square’s mobile point-of-sale app, simply called Square Point of Sale, gets a lot of love, and rightfully so. The app is free to use and you only pay a per-transaction fee of 2.75%. Square’s pricing makes it very attractive for low-volume and startup businesses, and there is an assortment of hardware options available. The Square Point of Sale app supports both iOS and Android devices, but certain features are not universally supported. An iPad gives you access to the vast majority of these features, but the iPhone supports all of the core features and many of the secondary, non-universal features. Check out our in-depth Square POS review for a comprehensive look at the free POS app and its features. For a closer look at the rest of Square’s products, check out our complete Square review.

As far as hardware goes, let’s start with the basics. Square has been offering a free basic magstripe reader for a long time, and it still does. (Note: you can also get the Square reader in some retail stores for $10.) However, the removal of the 3.5mm headphone jack from newer iPhone models has complicated matters somewhat. Square responded by rolling out a Lightning port magstripe reader. When you sign up for your free Square account, you can choose which model of reader you need. Square no longer offers multiple free readers; after the first one, you’ll pay $10 per reader.

However, it’s important to also consider accepting EMV chip cards, especially if you’re doing a consistent volume of business or large transactions. Square’s Contactless + Chip Reader supports both EMV and contactless NFC payments. It includes a separate magstripe reader for swipe transactions.

The Contactless + Chip Reader sells for $49, but Square does offer financing for hardware purchases that cost at least $49 (convenient, isn’t it?). You can also purchase cash drawers, receipt printers, and even tablet stands directly from Square.

Want to know more about Square’s hardware? Check out A Guide to Square Credit Card Readers & POS Bundles for an in-depth look at your options.

Fattmerchant Mobile

Fattmerchant Mobile isn’t an option that I talk about a lot, mostly because it’s best targeted at high-volume businesses. However, until recently, it was an iOS-exclusive, and even now, the iOS platform is more robust than its Android counterpart. Fattmerchant (read our review) offers customers their own merchant accounts, which translates to a high degree of account stability. Its Omni platform, which includes the mobile processing app, invoicing, and a customer database and inventory management, combines many core features in a single platform. Check out our Fattmerchant Mobile review for a more comprehensive look at the app and its features.

Fattmerchant operates on a subscription pricing model, with a monthly fee that starts at $99/month. Mobile and invoice transactions cost interchange fees + $0.15 per transactions — there’s no percentage markup at all. However, if you opt for the mobile credit card carder, you’ll get the card-present rate of interchange fees + $0.08 per transaction. You can simply key in all the transactions if you prefer — just know that you’ll pay higher interchange fees in addition to the $0.15 markup.

Fattmerchant offers a choice of two different card readers, the BBPOS Chipper BT and the BBPOS Chipper X2 BT. The Chipper BT model supports both magstripe and chip card transactions and connects to your device via Bluetooth. It goes for $75. The Chipper X2 adds contactless payment support to the magstripe and chip card readers and also connects via Bluetooth. It goes for $100.

Honorable Mentions

While I have no qualms with saying the four options I’ve presented are the best of the best, there are a couple of other mobile apps and card readers that are good options for iPhone and iPad users. So let’s talk about them!

PayPal Here

PayPal Here integrates with the rest of PayPal’s services so that you can sell online and in person seamlessly, much like Square. While it doesn’t offer quite as many features as Square, it’s still a very functional mobile app. Check out our PayPal Here review for a closer look at all the features.

PayPal Here processes payments at 2.7% per transaction, with keyed entry at 3.5% + $0.15. PayPal no longer offers a free card reader. Instead, you’ll need to shell out $15 to get its magstripe reader. PayPal will also place limits on your account if you opt for the magstripe reader, making it viable mostly for very low-volume businesses. As an alternative, PayPal offers two Bluetooth enabled cardreaders, starting with the Chip and Swipe reader, for $24.99.

If you also want contactless support, PayPal’s Chip and Tap Reader (retail price $59.99; bundle with stand $79.99). However, there’s another option for iPad users who want a more robust software option: Vend (read our review) with a PayPal integration. You’ll get PayPal’s 2.7% rate for payment processing with no monthly fee from PayPal. Of course, you’ll have to choose your Vend plan as well — and get the appropriate hardware. You’ll need the PayPal Chip Card Reader, which goes for $99.

PayPal + Vend POS
Advanced POS software
Easy credit card processing integration
Get Started For $0

SumUp

SumUp (read our review) isn’t quite as complex or feature-laden as some of the other options on this list, but if you just need an iPad or iPhone credit card reader and app, SumUp will get the job done. Payments process at 2.65%, and there’s no monthly fee to use the software. For a better idea of how SumUp stacks up against the competition, I suggest checking out our Square vs SumUp comparison.

SumUp’s cardreader, at $69, is definitely a little expensive, but it’s a beautifully designed piece of hardware. It’s Bluetooth enabled and supports magstripe, chip card, and contactless payments. You can also occasionally catch it on sale for a reduced price. I suggest checking out our SumUp unboxing review for a closer look at the reader.

Which iPhone/iPad Credit Card Swiper Is Right For You?

In payment processing, especially mobile processing, it’s impossible to take a one-size-fits-all approach, so it’s really important that you, the business owner, spend some time figuring out what features you need in a credit card processing app. You should also consider what kind of pricing model works best for your business, and do the math to see what you’d really pay with each option on your short list. And of course, there’s the card swiper, too. While a free magstripe reader might be enticing, you should really consider upgrading to a chip card-capable reader to protect your business.

App Name Square Shopify Lite Payment Depot Mobile Fattmerchant Mobile

Payment Depot merchant services review

Review

Visit Site

Review

Visit Site

Review

Visit Site

Review

Visit Site

In-Person Transaction Fees

2.75%

2.7%

2.6% + $0.10

Interchange + $0.15

Monthly Fee

$0

$9

$10

$99

Monthly Minimum

$0

$0

$0

$0

Type of Processor

Third-Party

Third-Party

Merchant Account

Merchant Account

Account Stability

Good

Good

Excellent

Excellent

Card Readers

Free magstripe reader (Contactless + Chip Reader $49)

Free Chip & Swipe Reader (retail price $29)

Free Swift B200 reader (chip and swipe)

BBPOS Chipper BT (chip and swipe, $75; swipe, chip and contactless, $100)

The takeaway is that there is no shortage of great credit card processing apps for iPhone and iPad users! And you’ll get a great assortment of credit card readers to go with. Don’t forget to check out our companion article, The Best Credit Card Reader Apps to Android.

Thanks for reading! What’s your favorite credit card processing app and mobile card reader for iOS devices?

The post The Best Mobile Credit Card Readers For iPhone and iPad appeared first on Merchant Maverick.

“”

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

The post Shopify VS Etsy appeared first on Merchant Maverick.

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WooCommerce VS Shopify

WooCommerce VS Shopify

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Pricing

Tie

Cloud-Based Or Locally-Installed

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Tie

Specific Size Of Business

Tie

Hardware & Software Requirements

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Ease Of Use

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Tie

Features

Tie

Tie

Web Design

Tie
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Integrations & Add-Ons

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Payment Processing

Customer Service & Technical Support

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Tie

User Reviews

Tie

Security

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Final Verdict

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Review

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Review

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WooCommerce and Shopify are both wildly popular software systems that can help you build a thriving online store. Behind-the-scenes, however, the two platforms work quite differently from one another. Before we jump into comparing these juggernauts of the ecommerce software realm, let’s quickly get oriented on the basics of each.

At its core, Shopify (read our review) is a SaaS (software as a service) online shopping cart platform. Starting at just $9/month, you can upload products to an online catalog and sell them on Facebook, or post them on an existing website of your own via embeddable “buy” buttons. You can even sell your products in-person with the Shopify POS app. Then, beginning at $29/month, Shopify facilitates the creation and hosting of a fully-fledged ecommerce website.

By contrast, WooCommerce (read our review), is a free and open-source ecommerce shopping cart plugin that was created specifically for installation inside the WordPress dashboard. The WooCommerce plugin turns a WordPress website or blog into an ecommerce storefront. In other words, WooCommerce has no actual website-building capabilities of its own — WordPress handles that part.

To understand WooCommerce and how it works, you need a little familiarity with WordPress itself. To put it simply, WordPress is a website builder/CMS (content management system) that exists in two forms: WordPress.org and WordPress.com. WordPress.org is the self-hosted version, whereas WordPress.com uses the same basic software as WordPress.org, but provides web hosting for your site as part of its services. Either WordPress version can actually be combined with WooCommerce, but each setup has different implications for cost, site maintenance, etc.

For the purposes of our Shopify versus WooCommerce comparison, we’ll focus on combining WooCommerce with WordPress.org, the self-hosted option. Most ecommerce sellers are attracted to WooCommerce because they already use WordPress.org for their websites, and/or they like the WooCommerce plugin’s “free” price tag in conjunction with WordPress.org. While the WooCommerce plugin itself is always free, you can only add plugins to the dot-com version of WordPress if you’re on the $25/month WordPress.com subscription.

Now that you know the basics, we’ll break down the two platforms into their various components — usability, features, comprehensive cost, and more. It’s basically the same old compare-and-contrast essay we were all forced to write in middle school. The stakes are a bit higher with this particular essay, however. By the time we’re done, you’ll hopefully have a good sense of which ecommerce platform (if either) is best for your online business.

Pricing

Winner: WooCommerce

You might be tempted to think WooCommerce immediately takes this category without contest. After all, both the WooCommerce plugin and the WordPress.org software download are free, whereas Shopify automatically involves a monthly subscription. In reality, you need to invest in a few services (e.g., web hosting) to get a WooCommerce + WordPress.org ecommerce store off the ground. The bottom line is, WooCommerce may be a bit cheaper at the outset, but it’s not 100% free. Just wanted to clear that up first!

Before we run a more detailed cost comparison of the two platforms, here’s a quick look at why WooCommerce wins this category:

  • You can launch an online storefront up for well under $29/month, which is the starting price for a full online store with Shopify.
  • All WooCommerce features are included with the free plugin. You don’t automatically need to jump to higher subscription levels for additional features or staff accounts (you just may need some add-ons as time goes on). In other words, you pay only for exactly what you need.
  • Neither WordPress nor WooCommerce charge any additional transaction fees per sale, beyond those charged by your credit card processor. Shopify only waives its extra transaction fees (that start at 2%) if you use Shopify Payments as your credit card processor, and not everyone is eligible for Shopify Payments.

WooCommerce is the budget option of the two, but only if you have the skills to run your own website and don’t need to hire extra help for web development, site maintenance, security, backups, etc. If you do need lots of extra help, you could still end up paying more with WooCommerce + WordPress in the long run. Fair warning.

That’s the summary explanation. Now, here’s a more detailed pricing breakdown if you’re interested:

Shopify Pricing

  • Monthly Subscription Fee: $9 (no standalone storefront), $29, $79 or $299/month.
  • Domain: Unless you want your store URLs to end in “myshopify.com” (and you probably don’t), you’ll need to purchase or connect a custom domain. Domains from Shopify start at $11/year, or there are lots of third-party options.
  • Web Hosting: Included
  • SSL/TLS Certificate: Included
  • Additional Transaction Fees: 0.5%-2.0% depending on your Shopify subscription — unless you use the in-house payment processor (Shopify Payments), in which case these extra fees are waived. Note: these transaction fees are on top of regular credit card processing fees you must pay per sale with any processor.
  • Additional Cost: Primarily add-ons from the marketplace, and perhaps a one-time purchase of a premium theme.

WooCommerce + WordPress.org Pricing

  • Monthly Subscription Fee: None if you set up a free WordPress.org site. The WooCommerce plugin itself is always free.
  • Domain: Varies, but can start at less than a dollar per month from third-parties.
  • Web Hosting: Rock-bottom hosting can cost as low as around $3/month, but most people end up paying at least $10 per month, depending on the size and traffic levels of their stores.
  • SSL/TLS Certificate: Often included with your hosting or domain provider, but may need to be purchased separately. Basic certificates cost just a few dollars per month.
  • Additional Transaction Fees: None. Neither WooCommerce or WordPress charge a commission per sale.
  • Additional Cost: Add-ons, themes, and any web development and ongoing site maintenance if you’re not taking care of all that yourself.

Sample WooCommerce + WordPress.org hosting

Cloud-Based Or Locally-Installed

Winner: Tie

As we’ve mentioned, a major difference between Shopify and WooCommerce is that your Shopify subscription includes web hosting. No downloads or installations are required. To use WooCommerce, however, you first must download the WordPress.org software and install it on a web hosting server. Then, you add the WooCommerce plugin to that setup. Some web hosts do offer preloaded WordPress + WooCommerce packages or “one-click” installations.

Is the Shopify or WooCommerce method better? This one really comes down to personal preference and ability. The self-hosted setup of WooCommerce requires more hands-on involvement and skill from the user, but you may be just fine with that.

Specific Size Of Business

Winner: Tie

Both WooCommerce and Shopify are scalable, working for small to enterprise-level businesses.

Shopify has predetermined subscription brackets. While none of these put hard limits on your revenue, number of products, bandwidth, or storage, the implication is that you’ll increase your subscription as your store grows. The exception is the jump to Shopify Plus, which is required if your revenue reaches over $1 million per year. These plans cost a couple thousand a month to start, but it can be worth the investment in return for a service that’s tailored specifically for enterprise-level merchants.

You will also need to change your Shopify subscription as you add more staff accounts to your store. For example, the $29/month plan accommodates two admin seats in addition to the owner’s account, while the $299/month plan gives you 15 spots.

WooCommerce also has the potential to grow with your store, but the system is much more fluid. You have 100% flexibility to expand your operation (and perhaps employ more help with your site) in a piecemeal fashion, exactly when and how you see fit. As your site traffic increases, for example, you’ll want to adjust your hosting service accordingly to accommodate more bandwidth.

Hardware & Software Requirements

Winner: Shopify

As a fully-hosted, SaaS platform, Shopify takes care of nearly all technology requirements on your behalf. All you really need is an internet connection and an up-to-date web browser.

With WooCommerce and WordPress.org, most of the hardware and software requirements are functions of your hosting environment. Your server needs to support specific versions of PHP and MYSQL, for example. You’re responsible for staying on top of the evolving requirements for both WooCommerce and WordPress.org when you set up a WooCommerce store. This includes installing updates of both the Worpress.org and WooCommerce software as they are released. Plugins are available to help automate some of these steps for you, but you’re still ultimately responsible for finding and updating those plugins!

Because dealing with hardware and software issues with WooCommerce is more nuanced and requires more vigilance from the user than Shopify’s arrangement, we award Shopify the win.

Ease Of Use

Winner: Shopify

It’s hard to beat Shopify in terms of user-friendliness. Even compared with other all-in-one SaaS platforms designed with the complete ecommerce novice in mind, Shopify usually comes out on top. Open-source software like WooCommerce, on the other hand, is not generally known for its ease of use. You’re trading some degree of ease and simplicity for increased flexibility and customization.

It should be noted, however, that WooCommerce actually isn’t all that bad when it comes to ease of use, especially compared with most open-source solutions. For starters, many folks are already somewhat familiar with WordPress, which gives them a head start in navigating WooCommerce. (Keep in mind that the reverse will apply if you’re not already familiar with WordPress — you’ll be learning two systems at once.)  Once you get everything installed and up and running, day-to-day operations and manipulation of features are all pretty straightforward with WooCommerce.

Still, as we’ve already touched on, it can be quite overwhelming to stay on top of updates, extension compatibility, security issues, and the various tertiary systems underpinning your WooCommerce store. The cliché I’ve often read about WooCommerce is true — you have to be willing to get your hands dirty. Shopify is a much more plug-and-play, hands-free system.

WooCommerce offers to install some additional free plugins (like Jetpack and WooCommerce Services) from the get-go that help bring the system more in line with a fully-hosted solution like Shopify, but you still end up with a sort of cobbled-together setup that is more difficult to manage than an all-inclusive platform.

Have a look at our full Shopify and WooCommerce reviews if you’d like more information on the topic of ease-of-use, but I’ve included just a quick peek at the dashboards of each platform, as well as what it’s like to add a product.

Shopify Dashboard:

After signing up for a free 14-day trial, you’re taken to a clean and easy-to-navigate dashboard, with all your major functions in the left menu, and a few tips to get started in the center:

Shopify — Add A Product:

Shopify has a super-simple product interface. All fields are completed simply by scrolling down the page.

WooCommerce Dashboard:

Below I’ve shown a WordPress dashboard with WooCommerce already installed. If you look closely at the left menu, you’ll see that WooCommerce is just one item of many. I haven’t even expanded its own menu yet, nor the “Products” menu right below. In the center of the dashboard, I’m faced with additional suggested configurations and plugin choices. Do I need them all? Should I set them up now? Just “Dismiss?” It’s certainly all doable, but I find it bit cluttered and overwhelming to get started. Plus, this is all after I completed the setup wizard.

WooCommerce — Add A Product:

Once you scroll past the plugin suggestions, adding a product is quite straightforward with WooCommerce. If you’ve ever used WordPress, it’s a lot like creating a blog post. You’ll just need to configure ecommerce settings like price and inventory levels.

Another aspect to consider is that you won’t be able to test WooCommerce (like you can test Shopify with its free trial) unless you have a host and server already set up to install WordPress.org. Ease of use is always a bit subjective, and it’s hard to get a good feel for usability without testing the software yourself.

Features

Winner: Tie

Although one is software-as-a-service and the other is open-source, both Shopify and WooCommerce actually take a similar approach to features. The basic components to get a store launched and managed on a day-to-day basis are included with the software, but you’re expected to add a few extensions and integrations to either platform in order to tailor your store to your exact specifications.

With Shopify, this occasionally even means bumping up your subscription level, whereas with WooCommerce, features are always expanded through separate add-ons. WooCommerce has also been known to test new features by treating them as extensions first, and then eventually incorporating the features into the core offering once all the kinks are worked out by users. It’s really a community effort with Woo.

However you slice it, a common complaint about both platforms is that extra plugins can cause extra cost and extra headaches. Each system is kept as simple (yet functional) as can be from the outset, so that new users are not immediately overwhelmed by all that’s ultimately possible with these powerful software programs.

Let’s do a couple of quick sample feature comparisons. WooCommerce lets you add unlimited product variations, sell digital products, and incorporate product reviews without separate extensions, while Shopify requires (free) add-ons for each of these functions. Meanwhile, Shopify already includes abandoned cart recovery, invoice creation, and pre-integrated shipping software (Shopify Shipping). You’ll need extensions for these features in WooCommerce.

I’m tempted to give Shopify the win because I feel it comes with a slightly more well-rounded ecommerce feature set out-of-the-box without any plugins. And yet I also don’t want to overlook the enormous capability that comes with an entire WordPress.org ecosystem at your fingertips, nor dismiss the potential to customize each feature to your liking in an open-source environment. There are just too many factors at play to declare a clear winner here. The best advice I can give is to check for the features you need, as well as how they are obtained with each platform.

Web Design

Winner: Tie

I know this makes our compare-and-contrast essay less exciting, but it’s difficult to call a winner in this category as well. Each platform has advantages and disadvantages, and your own perception of what actually qualifies as an advantage or disadvantage will differ depending on your situation.

Below is a quick summary of each system’s approach to the design and customization of your storefront, along with some screenshots to help illustrate.

Shopify Overview:

  • 67 total templates, most with 2-4 style variations
  • 10 templates are free and supported by Shopify developers
  • Remaining third-party themes cost $140-$180
  • Built-in theme editor with drag-and-drop capability
  • Additional customization available with HTML, CSS, and Shopify’s own theme coding language (Liquid)

Shopify Theme Marketplace:

Shopify Theme Editor:

The Shopify theme editor consists of two elements: “Theme Settings” (for changing fonts, colors, etc.) and “Sections” (for dragging and dropping widget blocks up and down your pages).

WooCommerce Overview:

  • Access to thousands of free and commercial/supported WordPress.org themes (over 900 show up when filtering for “ecommerce” in the marketplace)
  • WooCommerce recommends its free “Storefront” theme for foolproof compatibility and web ticket support
  • 14 Storefront “child” themes available (two free, premium are $39 each)
  • Theme editor allows color changes and placement of widgets (but without drag-and-drop)
  • Storefront expansion bundle ($69) allows further customization without coding
  • Theme modification also possible with HTML and CSS (no proprietary coding language involved)
  • Add a free plugin (such as Elementor) for drag-and-drop design editing of WordPress.org pages without code
  • WordPress.org’s new Gutenberg editor provides additional non-coding customization for your overall WordPress site

WooCommerce Storefront Themes:

WooCommerce Theme Editor:

Below, I’ve shown the portion of the built-in theme editor where you can choose widget blocks for various spots within your pages.

So, how do WooCommerce and Shopify stack up when it comes to web design? Does Shopify win for having a drag-and-drop theme editor and font tweaking built-in, or does it lose for making you learn a proprietary coding language if you want to do further template customizations? The new Gutenberg block editor for WordPress enhances your theme editing capabilities without code, and lets you easily place WooCommerce products wherever you’d like within your larger WordPress site — so that’s another factor to consider going forward. It’s issues like these that make this category a toss-up depending on your point of view.

Integrations & Add-Ons

Winner: WooCommerce

Even though I’ve already spoiled the winner of this category, we need to highlight the fact that Shopify also has an amazing app marketplace with around 2500 integrations at your disposal. With Shopify, you have the opportunity to connect with many of the most popular third-party software platforms associated with ecommerce (think shipping, marketing, accounting, and the like). Thousands of developers have invested in creations for the Shopify extension ecosystem. In most ecommerce software battles, Shopify easily wins this category.

All that said, open-source systems like WooCommerce + WordPress.org typically offer more integration possibilities than even the most well-connected SaaS platforms. The whole point of an open-source platform is for users at large to jump head-on into the codebase to customize and build connections. In the open-source world, WordPress has a particularly enormous and active community of developers extending the platform. As a WooCommerce user, not only do you benefit from hundreds of WooCommerce-specific extensions, but also from the over 50,000 plugins available in the WordPress.org marketplace. Even Shopify can’t fully compete.

Some argue that because many WooCommerce integrations are one-time installations, it works out cheaper in the long run, or point out that more WooCommerce plugins are free. In truth, integrations can add to your monthly cost with either Shopify or WooCommerce — especially if your integrations are to third-party software platforms with their own monthly subscription fees (and not just one-off feature installs). Be cognizant of the potential for ballooning add-on costs with either system.

Payment Processing

Winner: WooCommerce

The complete freedom WooCommerce offers to choose a payment processor and associated pricing model that best suits your particular store’s needs is the reason we award the open-source plugin the win in this category.

While Shopify technically offers more pre-built payment integrations than WooCommerce in its respective marketplace, you are actually penalized with an extra 0.5% to 2.0% Shopify commission on every sale if you don’t select the in-house Shopify Payments option. This percentage — 2% for most merchants starting out — is applied on top of the fees charged by your payment gateway itself. Trust me, that extra 2% adds up fast.

Shopify Payments has its own advantages and disadvantages, but for starters, some merchants don’t even qualify to use this processor in the first place. While Shopify Payments definitely works well when it works, a lot of merchants end up stuck in no-man’s land when it comes to payment processing with Shopify. Caught between an extra fee and a hard place, as it were. (Insert your own, better metaphor here.)

While you may need to pay a one-time fee to integrate your favorite processor with WooCommerce (Stripe and PayPal come as free, built-in options), you can ultimately select an option that fits perfectly with your risk level, sales volume, and transaction size. You can also select for any customer support and feature requirements you may have for your payments system.

Customer Service & Technical Support

Winner: Shopify                                  

Both WooCommerce and WordPress have produced a plethora of self-help resources and documentation. Moreover, both boast thriving communities of developers and merchants working with the software who readily share problem-solving advice via forums. This is all very good and helpful.

WooCommerce can’t compete with Shopify when it comes to personalized support, however. A “help desk” is offered with WooCommerce from which you can submit a web ticket for specific purchased items, but a personal response is not always guaranteed.

Meanwhile, along with great self-help resources and community forums of its own, Shopify offers 24/7 phone, email, and chat avenues for contacting live representatives in real time. This is part of the all-inclusive nature of the Shopify platform, and part of the reason you pay that monthly subscription fee.

Now, this is not to say you couldn’t potentially receive personalized assistance from your hosting provider if your site goes down, for example. The quality and availability of this sort of third-party tech support will vary widely by company, though. Not to mention, things can get complicated very quickly regarding exactly who holds responsibility for whatever’s gone horribly wrong with your online store in the middle of the night. Once again, our point is that neither WooCommerce nor WordPress.org has a team of service reps standing by waiting for your distress call. You’re largely on your own.

User Reviews

Winner: Tie

Shopify and WooCommerce each have devoted followings of satisfied users, and both platforms tend to score very highly on user review websites. Shopify merchants love the user-friendliness of a powerful SaaS platform where most things are taken care of for you, while WooCommerce devotees appreciate that most things are not taken care of for you — it gives these users the flexibility and control they desire.

Of course, neither ecommerce platform is perfect. Here are a few of the complaints that arise most often:

Shopify

  • Extra transaction fees when not using Shopify Payments
  • Costly add-ons
  • Poor customer support
  • Frustration with Shopify Payments

WooCommerce

  • Costly add-ons
  • Lack of personal customer support
  • Steep learning curve
  • Technical difficulties (i.e., extensions, themes, updates, etc.)

I’m still calling this one a draw. One platform does not dramatically outshine the other when it comes to real user feedback.

Security

Winner: Shopify

Shopify wins this category because all Shopify stores are automatically PCI compliant out-of-the-box and come with a built-in SSL certificate. With WooCommerce, your store’s security falls more directly upon your own shoulders. You’re ultimately responsible for choosing a secure and PCI-compliant web host and payment gateway, obtaining an SSL certificate, performing Woodpress.org and WooCommerce plugin updates, and staying on top of the latest security patches. As WooCommerce reminds you in its own documentation, “a given WooCommerce site is overall exactly as secure as the WordPress installation itself.”

There’s no doubt that a WooCommerce store can be just as secure in as a Shopify store, as long as all the right pieces are in place and carefully managed. There’s just a higher chance for site security to go (horribly) awry due to mismanagement or innocent mistakes.

Final Verdict

Winner: Shopify

 

This was a tight race, folks. Shopify and WooCommerce have both earned their popularity in the ecommerce world, even if for different reasons and for different segments of online sellers. Based on our experience, as well as our sense of the needs of our Merchant Maverick readership overall, we’re still more likely to recommend Shopify over WooCommerce.

The majority of online sellers will have an easier time with Shopify right out-of-the-box. Shopify is much more “foolproof” and all-inclusive than WooCommerce, with technical aspects like installation, hosting, updates, and security all handled on your behalf. This allows you to expand your focus beyond just building and maintaining your store, even as an absolute web-beginner. The opportunity for 24/7 personalized customer support with Shopify is also a huge factor in our verdict.

All Shopify gushing aside, we firmly maintain that this SaaS platform is not a magic bullet solution for all online merchants, and WooCommerce may be just the alternative you seek. As an open-source software plugin combined with WordPress.org’s vast ecosystem, WooCommerce offers a degree of ownership, control, and flexibility that isn’t possible with Shopify. It’s the perfect platform for the technically-inclined among us who have the time and skill to tinker with code, updates, and integrations to customize their stores at a finely-tuned pace. The freedom to select your own web host, as well as a payment processor that works best for your specific country and risk level without financial penalty (hello, Shopify’s extra transaction fees) is also a big draw for a lot of business owners using WooCommerce. The power truly is in your hands if you go this route.

As the old adage goes, however: with great power comes great responsibility. If you choose an open-source platform like WooCommerce, you should definitely heed this nugget of graphic novel-based wisdom.

Have you worked with Shopify or WooCommerce? Let us know if the comments — particularly if you have experience with both!

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