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Wix vs. Shopify: Which is better for eCommerce in 2021?
Business managementWix vs. Shopify: Which is better for eCommerce in 2021? Wix vs. Shopify: In a nutshell Wix is one of the best website development platforms out there and provides you with most of the necessary tools you need to create a smooth and successful online store. Since it’s primarily a website development platform, Wix does lack some functions and features related to running an eCommerce website – things that Shopify does better. On the other hand, since Shopify was launched as an online store development platform, it admittedly lacks a little bit in the area of creative design. Those weaker spots are counterbalanced by the strengths Shopify exhibits in terms of backend business management tools and features. So which is better Wix or Shopify? Keep reading to get the final verdict! Wix: An overview Although Wix commands only about 6% of eCommerce market share, it does a great job at staying competitive against other players in the marketplace. Wix ranks high when it comes to SEO tools, provides outstanding user support, doesn’t charge any transaction fees, and even includes abandoned cart recovery with every plan they offer! Wix also offers a 14-day money back guarantee for anybody looking to start a website, but doesn’t have a free-for-life plan for ecommerce stores just yet. Paid plans for online businesses start at $28 per month (annually) or $30 per month (monthly). Shopify: An overview Compared to other eCommerce platforms, Shopify actually ranks lowest in terms of market share (a mere 3.7%). Despite its small size, Shopify offers its online merchants a big bang for their buck. The user interface is extremely intuitive, allowing users to do virtually anything with a click or drag of the mouse. That means getting your website the way you want doesn’t take you hours or even days learning how to do web design. Beyond the ease of using the platform, the extensive number of Shopify apps mean that there’s almost always a way to ‘fill in the gaps’ which Shopify doesn’t address directly. Similarly to many eCommerce platforms, Shopify lets you give them a try for 14 days free of charge. After that, plans start at $29 per month. Who is Wix for? Wix is best for small businesses that want a quick way to start their online presence. Learning how to code isn’t necessary for tailoring the look and functionality of your website. Plus, if you’ve already developed a social media marketing strategy, you can easily sync your social media pages with Wix and bring in leads from existing audiences. Who is Shopify for? Shopify is best for business owners who want to develop an online store with all of the necessary pieces already included. Shopify stands out by offering a much wider array of features even in its most affordable pricing plan (including discount codes, gift cards, abandoned cart recovery, a Shopify POS app, and more). It’s an ideal choice for businesses of all sizes. Still curious about Wix ecommerce vs Shopify? If it’s about eCommerce, Shopify is the clear choice. Wix pricing Since Wix is a website development platform that isn’t exclusively for e-commerce businesses, be sure that you’re evaluating the business pricing plans (not website plans). Under the business pricing plans, there are three options to choose from: Business Basic starting at $28/monthBusiness Unlimited starting at $33/monthBusiness VIP starting at $56/month Each of those plan options also offer lower rates if you pay for a year in advance, or even two or three years in advance with progressively lower rates. So is wix cheaper than Shopify? The answer is yes. Free trial While there’s no ‘free trial’ per se, Wix does provide a 14-day money back guarantee on all of their premium plans – “no questions asked”. Shopify pricing Unlike Wix, Shopify is designed with e-commerce businesses in mind, so the only plans they offer are designed specifically for online stores. Whether you want just the bare minimum or all the bells and whistles, Shopify has a plan for you. Shopify Lite starting at $9/monthBasic Shopify starting at $29/monthShopify starting at $79/monthAdvanced Shopify starting at $299/monthShopify Plus starting at $2,000/month With so many plans to pick from, you can use Shopify to get your business up-and-running online no matter the size or what your broader goals are. You can also save 10% on those plans by paying for a year in advance, or save 20% by paying for two years in advance. Wix pricing vs Shopify – which comes out on top? See below… Free trial Shopify offers a true 14-day free trial that requires you only to enter a valid email address and confirm it to get started. Wix: How long does it take to build a website? There isn’t a one-size-fits-all answer to the question of how long it takes to develop a website with Wix. While you can theoretically publish a website in a single day, we wouldn’t advise you to do so. After all, if you intend on running a successful online store, you’ll want your website to be as near to perfect as possible. That means outlining the sitemap structure, visualizing the website in finer detail, setting up all of the features you’ll need on each page, testing it, and ironing out any wrinkles that remain. Even with those steps in mind, there’s no telling for sure just how long it will take. We estimate at least a month, but every business’s website is different. What we can say for sure is that using Wix drastically reduces the complexity of building a website. You won’t need to study coding or web design to put the pieces together – you’ll just need time, creativity, and patience to get it done right before going live with your online store. Shopify: How long does it take to build a website? Building a website with Shopify is a very quick process compared to using a platform like WordPress, but that doesn’t mean it should be done as fast as possible. Again, you could get a website up and running with Shopify in a single day, but chances are it would have quite a few bugs throughout. Similarly to our recommendation for building a website with Wix, we suggest taking at least 3-4 weeks to develop your website with Shopify (design, test, and optimize) before going live. You only get one first impression, so you’ll want to make sure your online store is as good looking and functional as can be prior to letting your audience interact with it. Wix usability It’s hard to give Wix too much credit for its usability – they’re simply one of the best. The platform’s interface is a breeze to get a hang of, even for novice website designers. And it makes sense that that’s the case, since Wix was founded first and foremost as a website development tool (whereas Shopify is primarily focused on eCommerce). On the other hand, while Wix excels at website design, it does lack a bit in online sales functionality. We get to more on that further in the article. Shopify usability As we mention above, Shopify was not created with the express goal of providing the best website development tool. Compared to Wix, Shopify is a bit ‘clunkier’ and doesn’t have exactly the same level of smooth usability that Wix has. With all of that said, Shopify still does a great job of giving online businesses the functions and features they need to get their ecommerce shops set for success. That’s one of the key places where Shopify has an edge on Wix. Wix themes & design With over 800 templates to choose from, Wix is an absolute powerhouse when it comes to premade themes and designs. Whatever eCommerce niche you’re in, chances are there’s an existing Wix template that can provide you with a strong concept to build on. And if you don’t really vibe with any of those hundreds of templates that Wix already has (somebody’s picky!), you can always create your own from a blank template! Uploading your own images, customizing fonts & texts, and rearranging page layouts are all easy to do on Wix. Shopify themes & design As you might imagine, Shopify has a much smaller number of predefined themes to pick from compared to Wix (“over 100” according to Shopify’s website). Additionally, the vast majority of Shopify themes are behind paywalls that typically cost between $150-$300, with a mere 10 themes available free of charge. Let’s be clear though – you do not need to pay for a premium Shopify theme to build a strong online store. Every theme comes with the essential components of a functioning eCommerce website, even the free ones. Your choice of theme will ultimately boil down to factors like how many products you intend on selling, what niche you’re selling in, whether you want to focus more on text or on images, and so on. To that extent, Shopify provides enough variety to select from – plus you can still customize aspects such as font, CTA locations, images, and more. Wix plugins/integrations This is another area where Wix falls a bit behind. While the platform itself includes some very strong apps that you can get from the Wix App Market, there aren’t quite as many third-party developers that have integrated with Wix. The number of apps in the Wix App Market totals at just over 250, most of which are entirely free, and many of which offer free or paid versions. Whether you want to auto-generate product descriptions, display your customer reviews, start using upselling techniques, or anything in between – Wix is likely to have a plugin to help you get it done. Shopify plugins/integrations Remember when we said Wix is a powerhouse when it comes to design templates? Well, that would make Shopify a bonafide behemoth in the app game. The platform hosts over 6,600 different apps – yes, you read that right! That means Shopify has more than 26x the number of apps that Wix has. What’s even better is that more than half of those 6,600 apps are either entirely free or offer a free version – can you say “cha-ching”? The sheer number of Shopify apps that exist means that you can find one to address virtually any and every issue, function, or feature you can dream of. One of the best apps that exists for both Wix and Shopify users is the BeProfit Profit Tracker app. This all-in-one profit and expensing tracking app gives you the power to: Track your profit history over timeGet intuitive visuals and graphsUnderstand complex business metricsConnect metrics once with smart integrationsSpot what factors need improvement to increase profitsMake data-driven decisions to optimize your storeAnd much more You can try any BeProfit plan for 7 days free of charge and discover how the app can help you optimize your profitability. Wix payment processing It’s important to note that, in order to accept payments on any Wix website, you must have a premium Business & eCommerce Wix account. That said, accepting payments on your Wix website can be done several ways. Possibly the easiest form of payment processing on Wix is the built-in Wix Payments system which allows you to accept pretty much every major brand of credit/debit card and a few other types of payment including iDeal and Pay Now by Klarna. The second option to accept payments on Wix is to integrate PayPal. If you already have a PayPal account, essentially all you need to do is log in using the email address you use for PayPal. If you don’t have a PayPal account yet, it’s very easy to create one! The downside to using PayPal on your Wix store is that customers will be taken off of your website in order to complete a purchase. Apart from those two options, there are an array of other payment processing tools that Wix offers – a few too many to list in great detail here. Suffice it to say that there is flexibility in the payment processing area of Wix’s platform. Shopify payment processing Shopify also offers a wide range of payment processing options – in fact, Shopify gives business owners even more routes to accept payments than Wix. Similarly to Wix, the simplest and quickest way to set up payment processing with Shopify is through the built-in Shopify Payments. With Shopify Payments, your store will be able to accept payments with all major credit and debit cards, along with Apple Pay, Google Pay, Shop Pay, Facebook Pay, and more! Of course, Shopify also allows you to accept payments through PayPal if you prefer to do so. Additionally, there are a number of third-party payment processors you can use within your Shopify store. As far as payment processing goes, there isn’t such a huge difference between Shopify and Wix. But, given the fact that Shopify offers a broader range of payment options, it manages to come out on top. Wix speed & performance Judging speed and performance can be tricky to do, since every website incorporates a different array of elements that can weigh down on loading speed and website performance. That said, one study found that Wix does tend to work a bit faster and perform a bit better than Shopify – but not by huge margins. Again, if you choose to upload lots of high quality images, include product videos, add in a moving user review bar, and so on, then your online store will take longer to load all of those heavy elements regardless of which platform you use. One thing that stands out about Wix is its mobile load speed, which is faster than Shopify by a large enough margin that it’s worth highlighting. This makes Wix the better choice if m-commerce is a big focus of your business. Shopify speed & performance Despite the fact that Wix has it beat on this point, Shopify is still one of the fastest and best-performing eCommerce platforms available to choose from. Again, your online store’s loading time is strongly correlated with the complexity of the elements you include throughout your site’s pages. To keep speed up and customer experience positive, be sure to compress all images and videos so that they will load more quickly. Another ‘best practice’ is to place more complex elements lower down on pages so that they have time to load before your website visitors scroll down. Whichever platform you end up using, you’ll need to pay attention to what you include and how you organize your content so that your customers won’t be pushed away by slow load times or poor performance. Dropshipping on Wix The question of dropshipping on Wix can be reframed as a question of running a business in general on Wix. In that regard, Wix is at a bit of a disadvantage for a few reasons. First off, as we’ve mentioned several times above, Wix was created as a general website development tool – not as an online store development tool specifically. That means that, while Wix makes it easy and intuitive to create a snazzy, eye-catching website, it lacks the backend functionalities that Shopify has to manage your online store. Secondly, and again as we mentioned earlier, Wix has drastically fewer apps in its app market. So, even though you can certainly run a dropshipping store through Wix, the integrations with dropshipping platforms are much, much more limited compared to Shopify. Dropshipping on Shopify Since Shopify is an eCommerce development platform above all else, it naturally has a much more immersive experience in terms of business management. That goes for built-in features that are already part of Shopify as well as the vast number of apps that you can download to enhance your store. In terms of dropshipping specifically, Shopify has an extensive list of integrations available with top dropshipping platforms like Oberlo, Dropified, AutoDS, EPROLO, and so on – which are not available on Wix. Furthermore, the Shopify platform itself is much more focused on making it simple to set up an online store. That makes it much easier to build product pages and include all the necessary details and information straight away, such as product names, descriptions, images, price ranges, multiple variants, and so on. So in the battle of Wix vs Shopify dropshipping, Shopify comes out as the better option. Wix SEO Here’s another area where Wix has a slight leg up on Shopify. Broadly speaking, the major SEO tools and components that you can find in Wix are also available on Shopify, there’s one aspect in particular that gives Wix an edge: keyword support. It’s not a huge difference, but getting suggested keywords can help you expand your SEO strategy without increasing the amount of effort you put in. Without suggested keywords, you might turn to a third-party service to present those suggestions instead. Of course, that comes with a monetary cost and simultaneously increases the time it takes to manage your SEO strategy. Shopify SEO Virtually all of the SEO tools you’ll need to run a successful eCommerce store are already included in Shopify, including customizable meta titles, meta descriptions, URLs, headings, image alt text, and so on. As per usual, anything that’s not already built into Shopify is usually available in the shape of a Shopify app. Additionally, since Shopify is designed primarily for online sales, its SEO features are specifically shaped to address the needs of your online business and optimize your store’s exposure on search engine results. Conclusion So which is better Wix or Shopify? As far as creating an online store is concerned, Shopify gets the winning spot in our opinion. Shopify’s platform is designed and developed to address all of the key aspects that an online business owner will need to hit on in order to create a strong and successful store. On the other hand, even though Wix meets most of the requirements to help you build an eCommerce website, it’s a platform designed to help you create a website – not a store. That means there’s a heavier focus on design than there is on internet sales functions. Of course, there are a range of very good reasons as to why we compared Wix to Shopify in the first place. If Wix couldn’t compete, it wouldn’t have warranted this article! Is Shopify or Wix better? The answer may change depending on where you look and who you ask. The bottom line is, whichever way you decide to go, be sure to take into account all that was laid out for you in this breakdown of Wix vs Shopify! FAQs: Wix vs. Shopify What’s better for selling online, Wix or Shopify? Shopify is a better fit for eCommerce stores, since it’s specifically developed to provide online business owners with all the tools, features, and functions they need to manage a shop. You can sell online with Wix, but it’s more focused on design features than it is on online sales. Which is more affordable, Wix or Shopify? Wix lets you sell online using their platform for as little as $28 per month, while Shopify starts at $29 per month. Although those starting rates are nearly identical, the more advanced eCommerce plans are more affordable on Wix than they are through Shopify. Which is more customizable, Wix or Shopify? Wix offers built-in tools that allow for more customizations for the layout and design of your website, while Shopify hosts a much larger number of third-party apps that also give you the power to customize your online store. Which is better for giving customers discounts, Wix or Shopify? Shopify is somewhat better than Wix when it comes to offering customers discounts. With Wix, you can only offer specific monetary amounts for discounts, while Shopify allows you to give customers discounts in the form of percentages as well.
WooCommerce vs Shopify: Which is better for E-Commerce in 2022?
Business managementWooCommerce vs Shopify: Which is better for E-Commerce in 2022? WooCommerce vs Shopify: In a nutshell WooCommerce is one of the most flexible and customizable website development platforms available on the market today. While we call it a ‘platform’, WooCommerce is actually a free plugin for WordPress (winning the Shopify vs WooCommerce cost competition). Still, we’ll call it a platform for the duration of this article. WooCommerce gives you full freedom to create a uniquely tailored online store. With so much freedom and flexibility though, WooCommerce can be more difficult for beginners that don’t have experience launching their own eCommerce website – something that Shopify does better. Since Shopify was intentionally designed to be an easy online store development platform, it’s much more fitting for those who are less tech-savvy to get a new store up-and-running than WooCommerce. On the other hand, Shopify is much more rigid than WooCommerce in terms of how personalized you can make your website; there are pretty clear limits on what you can and can’t do with Shopify. So is WooCommerce better than Shopify, or is Shopify better than WooCommerce? It’s an important question to ask, particularly if you’re considering replatforming your eCommerce store. We give you the full answer, piece by piece, in this detailed guide! WooCommerce: An overview WooCommerce is the second most powerful eCommerce platform in terms of market share, commanding more than 23% of the eCommerce market. WooCommerce ranks high when it comes to affordability, customizability, SEO tools, and they don’t shut down websites for ‘questionable practices’ the way other platforms do. While WooCommerce itself is completely free, there are a variety of costs that will need to be covered including hosting, purchasing a domain name, security plans, transaction fees, and so on. All-in-all, running a WooCommerce store could run you at least $10 per month and, for more ‘bells and whistles’, could be upwards of $30 per month. Shopify: An overview Shopify ranks lowest in terms of eCommerce platform market share with a mere 3.7% of the total pie. While it is small in size, Shopify provides its users with a range of powerful features and tools for building a successful online store. Creating a fully functioning e-commerce store can be done much more quickly than with WooCommerce thanks to the highly intuitive user interface that lets users do nearly anything with a simple click or drag of the mouse. Aside from how easy it is to use Shopify, the enormous number of Shopify apps means that there’s almost always a solution for the things that Shopify doesn’t do on its own. You can try Shopify with a 14-day free trial. After the trial ends, paid plans start at $29 per month. Who is WooCommerce for? WooCommerce is best for small businesses that want a cheaper way to develop their online presence. That said, learning how to code is a prerequisite for using WooCommerce, since you’ll have to make changes on your own to personalize the look and functionality of your website. But even though it’s more demanding in terms of the technical expertise you’ll need, you can do a lot more with WooCommerce in terms of personalizing your store since it’s an open-source platform. Who is Shopify for? Shopify is best for beginner business owners who want a simpler, user-friendly way to start an online store. Shopify stands out by including all of the necessary features of an eCommerce store right off the bat, even in its most affordable pricing plan. Plus there are many additional built-in features that are helpful for newer online business owners, including discount codes, gift cards, abandoned cart recovery, a Shopify POS app, and more. Still curious about WooCommerce vs Shopify? If it’s about ease of use, Shopify is the clear choice. WooCommerce pricing WooCommerce is a free plugin for WordPress, which is also a free website development platform (that isn’t exclusively for e-commerce businesses). That said, there are other costs that must be calculated if you want your website to actually be live on the web. Those costs include: Hosting starting at around $7/monthDomain name starting at around $15/yearSecurity protocol starting at around $10/yearTransaction fees (dependent on sales volume) There are many other pieces that come into play when running an online store through WooCommerce, but their costs only become relevant if/when your store starts scaling up. Those expenses would include additional plugins, developer (and theme-development) fees if you hire a pro to spruce up your site, plus higher costs for the factors mentioned in the list above. Still, the question stands: is WooCommerce cheaper than Shopify? The answer is (usually) yes. Free trial While there’s no ‘free trial’, you don’t need one! WooCommerce and WordPress are free to use. Shopify pricing Unlike WooCommerce, Shopify is not free to use. To start an online store with Shopify you’ll need to select one of the plans they offer; whether you’re looking to start a store with the basic essentials or to go all-in and create a sparkling online shop with all the bells and whistles, Shopify has a plan for you. Shopify Lite starting at $9/monthBasic Shopify starting at $29/monthShopify starting at $79/monthAdvanced Shopify starting at $299/monthShopify Plus starting at $2,000/month You can also choose to pay a full year or even two years in advance to get a discounted rate on those plans (10% and 20% respectively). WooCommerce vs Shopify pricing – which comes out on top? The answer depends on many factors, but typically WooCommerce is the winner in this regard. Free trial Shopify offers a 14-day free trial, all you need to do is enter an email address and then confirm it to get started with your eCommerce store. Side note: Shopify vs WooCommerce transaction fees (for their built-in payment solutions) are basically the same – 2.9% + $0.30 USD for transactions in the United States with U.S. credit cards in U.S. dollars. Different rates/additional fees may apply for transactions made in other countries, with credit cards issued in other countries, and/or if customers pay in a currency other than U.S. dollars. WooCommerce: How long does it take to build a website? Given the number of variables that come into play, there’s no way to give a blanket answer to the question of how long it takes to develop an online store with WooCommerce. While you can certainly rush the process and publish a WooCommerce site in a day, that’s not going to bring you the best results. If you want a well-developed, successful online store, you’ll want to take the time to make it as near to perfect as possible. That means: Setting up all of the necessary pluginsConfiguring the website’s structure on WooCommerceFilling content for different pages and menusVisualizing and designing your product pages as well as the shop itselfSetting up paymentsSetting up shippingSetting up taxesTesting the site’s functionsMaking corrections and adjustments where necessaryAnd more As you can gather, it’s nearly impossible to determine exactly how long it will take to launch a fully-fledged WooCommerce shop. All-in-all, it’ll take at least 10 hours to do all of the essentials, but could take upwards of 40 hours if the project is larger and if greater attention is given to the finer details. What we can say for sure is that using WooCommerce to build an online store is more complex than Shopify. You’ll need to sharpen up on coding and/or web design to get your website right, which requires time, creativity, and patience. Shopify: How long does it take to build a website? Launching an eCommerce store with Shopify is an extremely quick process compared to using a platform like WooCommerce. That said, if you want your online shop to come out right, you’ll still need to invest a decent amount of time and effort. Theoretically it’s possible to have a website developed with Shopify in one day, but rushing things isn’t advised. Regardless of which platform you end up using, we recommend putting around 20 hours into the development of your website before going live. Why? Because studies have shown that visitors will judge your website in a fraction of a second, meaning you want to make sure your online store is as visually appealing and properly-functional as can be before going live. WooCommerce usability For most people, WooCommerce is not going to be the easiest eCommerce platform to use. Although the platform gives extreme flexibility in terms of how you can customize your website, it’s not very intuitive for the less technologically apt; there’s certainly a learning curve. And even if you do manage to get a grip on how the platform works, making further changes (e.g. adding new plugins) can have unexpected consequences and cause problems that you’ll then need to work out on your own. Shopify usability Compared to WooCommerce, Shopify is an absolute breeze to use. That’s because it was created with the precise goal of being a simple eCommerce website development platform. In plain language, Shopify is much more intuitive and has a ‘smoother’ interface than WooCommerce. All of the key functions and features needed to set up an eCommerce shop for success are already built into the platform, with a lot less fiddling required on the user’s side. Without question, usability is one of the strongest advantages Shopify has over WooCommerce. WooCommerce themes & design With well over 2,300 templates across a wide variety of theme marketplaces, WooCommerce has no shortage of premade themes and designs to choose from. Whatever sort of style you think would vibe best with your store, you’re likely to find an existing WooCommerce template that can give you a solid foundation on which to build. And if you don’t have any luck finding the specific design you had in mind (and if you have time to spare), you can always design your own template! Shopify themes & design Despite the fact that Shopify has fewer themes to pick from compared to WooCommerce (“over 100” according to Shopify’s website), the quality and functionality of those themes are often better simply by virtue of having passed Shopify’s approval process. Since WooCommerce is open-source, there are inevitably going to be a portion of templates that have technical issues that you’ll need to work around. It should also be noted that the majority of Shopify themes must be paid for if you wish to use them. Typically they cost between $150-$300, and only 10 themes are currently available free of charge. Ultimately, you should choose a theme based on factors like: How many products you’ll be sellingWhat niche you’re inIf you want your site to be heavier on text or on imagesAnd so on To that extent, Shopify provides enough variety to select from – plus you can always tailor certain aspects such as the font, CTA locations, images, and more. WooCommerce plugins/integrations As far as plugins go, Shopify has got WooCommerce beat. That’s not to say that WooCommerce doesn’t have plugins – it most certainly does, including some specifically for abandoned carts on WooCommerce. What it’s short on is the number of official extensions that you can get from the WooCommerce Extensions Store. With only a few hundred extensions available through that store, many WooCommerce users resort to using third-party plugins that can sometimes cause problems with the platform or with other plugins. Still, WooCommerce has some powerful extensions that address a variety of needs faced by online store owners, including: Store contentPaymentsShipping, delivery, and fulfillmentMarketingConversionCustomer serviceStore managementAnd more Whatever your goal may be, WooCommerce probably has at least one plugin that can help you get it done. Shopify plugins/integrations Shopify is a true powerhouse in the app game, hosting over 6,600 different apps (whoa!). And as if that wasn’t good enough, more than half of all Shopify apps are either completely free to use or at least have a free version available. Whatever the feature, function, or issue is that you have in mind, there exists an app (or a few apps) to help you out. You can even use one of their apps to address the issue of Shopify vs WooCommerce conversion rates! One of the best apps for Shopify is the BeProfit Profit Tracker app. This all-in-one profit and expensing tracking app gives you the power to: Track your profit history over timeGet intuitive visuals and graphsUnderstand complex business metricsConnect metrics once with smart integrationsSpot what factors need improvement to increase profitsMake data-driven decisions to optimize your storeAnd much more You can try any BeProfit plan for 7 days free of charge and discover how the app can help you optimize your profitability. WooCommerce payment processing As is the case with virtually every other aspect of a WooCommerce store, if you want to accept payments you have tons of options in the form of plugins. In fact, on the WooCommerce Extension Store alone, there are 80 payment extensions to choose from, covering all of the big names in payment processing including: StripePayPalSquareAmazon PayKlarna PaymentsAnd many more What might come as a small surprise to you is that WooCommerce actually offers its own payment processing solution: WooCommerce Payments. As you might imagine, WooCommerce Payments offers some great perks over other third-party payment extensions. Those advantages include no setup costs, no monthly fees, the ability to manage recurring revenue from your WooCommerce dashboard, and more. One thing is for sure – regardless of what payment processor you prefer, WooCommerce lets you do it your way. Just don’t forget that if you choose a third-party payment processor, it will take some technical know-how to get it set up. Shopify payment processing Shopify also allows you to choose from many different payment processors – in fact, Shopify actually integrates with even more third-party payment processors than WooCommerce (over 100 according to the Shopify website). Similarly to WooCommerce, Shopify also has a built-in payment processor called Shopify Payments which gives your store the ability to accept customer payments with all major credit and debit cards, along with Apple Pay, Google Pay, Shop Pay, Facebook Pay, and more! As far as payment processing goes, there isn’t such a huge difference between Shopify and WooCommerce. But, given the fact that Shopify offers a broader range of payment options and doesn’t require you to do the setting-up of third-party processors yourself, it comes out on top. WooCommerce speed & performance Judging an eCommerce platform’s load speed isn’t always such an easy task since every store’s website ends up using a different assortment of features that can slow down speed and performance. Still, you’re probably wondering about Shopify vs WooCommerce performance… With that said, one study found that WooCommerce tends to be a slower option compared to Shopify, with home pages taking nearly a full second to load and shopping cart pages taking more than 1.3 seconds to load. To be clear, load times will always be impacted by the elements you choose to use, including: ImagesProduct videosDynamic user review sectionsAnd so on If you add lots of heavy elements your online store will take longer to load, so be sure to optimize all of those bits and pieces before adding them to your website! Shopify speed & performance As we mentioned above, Shopify has WooCommerce beat on this point. Shopify is one of the fastest and best-performing eCommerce platforms, with web pages loading at a breakneck 309 milliseconds. Again, your online store’s load time will be closely correlated to the ‘weight’ of the elements you include throughout your site. Make sure to use high-quality compressed images and videos – that will help them load more quickly. Aside from that, one of the recommended ways to keep customer experience positive is to put ‘heavier’ elements lower down on a page. That way they have time to load before visitors scroll down to them. It doesn’t actually decrease load times, but it does decrease visitor frustration with elements that take longer to load. Dropshipping on WooCommerce Shopify vs WooCommerce dropshipping – it’s a close call, but we give this one to WooCommerce. One of the prominent reasons for launching a dropshipping business is to keep overhead costs low, and WooCommerce is the better option in that respect. Plus it’s super flexible in terms of the types of products or services you can sell, something that Shopify is more strict about. On top of that, and as we mentioned earlier, WooCommerce has way more extensions, giving you broader freedoms for integrating the dropshipping platform of your choice. Dropshipping on Shopify In terms of dropshipping, Shopify does have a long list of integrations available with top dropshipping platforms like Oberlo, Dropified, AutoDS, EPROLO, and so on – but WooCommerce has more. And even though Shopify is more user friendly and makes it simple to set up a dropshipping store, there’s a price tag for the development that’s been done for you. WooCommerce is cheaper because it takes more effort on your end, but that balances out by the fact that you have a much larger degree of customizability for the design and functions in your store. WooCommerce and Shopify are both good options for dropshipping, but WooCommerce still takes the cake. WooCommerce SEO This is yet another aspect where WooCommerce has an edge on Shopify, primarily due to WooCommerce being a plugin for WordPress – which is filled to the brim with SEO tools and features. It’s simple to edit content and meta content so that you can put your all into developing a strong SEO strategy. Generally speaking you’ll be able to get all of the necessary SEO tools on Shopify as well, but (and you might be getting tired of hearing this) WooCommerce’s flexibility proves more valuable than Shopify’s ease of setup. Shopify SEO Continuing with the matter of SEO Shopify vs WooCommerce, if there’s one advantage that Shopify has when it comes to SEO, it’s that the platform was specifically designed for eCommerce stores. That means that the core SEO tools you’ll need to build a strong online store are already included in Shopify, including customizable meta titles, meta descriptions, URLs, headings, image alt text, and so on. And as you already know, the numerous apps in the Shopify App Store can usually fill the gaps that the Shopify platform doesn’t already address. If you compare WooCommerce and Shopify on a scale of ‘SEO power’, WooCommerce will be the winner. Of course, there are plenty of other eCommerce platforms for SEO to choose from – don’t limit yourself to these two options! Conclusion So which is better, Shopify or WooCommerce? It’s a tough call, but after weighing all of the factors throughout this article, WooCommerce is the winner in our opinion. WooCommerce is more affordable, way more flexible/customizable, has more themes to choose from, is stronger for dropshipping, and better for SEO practices. At the same time, Shopify is faster to set up, easier to use for beginners, has more apps officially hosted by the platform, and has better website load times. Needless to say, opinions on whether WooCommerce is actually better than Shopify may differ depending on what the goals are in developing an eCommerce store. In any case, you’ll be starting off on the right foot by choosing either of these two eCommerce platforms. And if you still aren’t sure and you’d like to explore more options, check out our Wix vs Shopify breakdown.
Best Products to Sell Online in 2022 for Big Profit Margins
Profit optimizationBest Products to Sell Online in 2022 for Big Profit MarginsIn 2020, more than two billion people bought something online. So, there’s a massive market of potential customers. Though, what products are most profitable to sell? Your product choices will depend primarily on whether you plan to sell locally or internationally, among other things. If your target audience is local, the top product to sell online will possibly not be the same as what’s trending globally. If you’re wondering what to sell online, here are some niche products for 2022 and other items to sell for profit. Is Selling Online Profitable? There are many high markup products to sell online. So, finding items with a high profit margin for businesses to sell is not necessarily the challenge. The trick is to see which products your target audience will like in order to personalize the customer experience. If you crack this code, you can definitely make money online. How much money? Well, that depends on several factors, including the type of product you sell, how good you are at marketing it, and how dedicated you are to making sales. To gain greater insight into how much an online store is likely to make, see our performing product profit analysis for an online store guide to learn more. Which Products Have the Highest Profit Margins? According to Shopify, a good margin for selling online products is around 45%, and according to Insider Monkey, the software industry was the most profitable in 2021. Alongside software, these winning products are also highly profitable: Jewelry Beauty products Kids' toysWomen’s and men’s apparelDesigner sunglassesEco-friendly products What Are the Low-Cost High-Profit Products? On the other hand, products with low margins can also be lucrative products to sell. While hygiene products are inexpensive to produce, there’s almost a daily recurring demand for them, which makes them some of the best consumable products to sell. On the one hand, offering lower-priced items can attract more buyers, help you stand out from your competition, and make your products available to a wider audience. However, there are also some disadvantages to selling low-cost items. For one, product margins are significantly less. Consequently, you’ll need to sell more products in order to make the same amount of money. It’s not all bad, though. To help attain the highest profit margins possible from low-cost items, tracking business expenses is a must. See our guide to optimizing online profit by tracking product expenses to learn more. It's also essential to understand the difference between gross profit and gross margin. What E-Commerce Products Are Trending in 2022? In 2021, some of the best things to sell online for profit include activewear, hair accessories, phone cases, and phone tripods. Some of the best consumable products to sell include pet food, quality tea, and craft drinks. With more people focusing on their health and the environment, you can expect that reusable water bottles will be in demand in 2022. According to Grand View Research, the global reusable water bottle market size is expected to grow at a CAGR (compound annual growth rate) of 4% until 2028. It’s also one of the best products to sell on Shopify. Grinders, drills, and other power tools commonly needed for home improvement projects are also good products to sell online in 2022. In fact, according to Global Market Insights, it’s expected to generate $1 trillion in sales by 2027. Which Products Are in High Demand Right Now? So what products are currently flying off the shelves? Taking a look at the most recent product trends, the following items are being purchased at a high rate: Pet accessories: Pet carriesCBD productsDog toothpasteCat treatsPet beds Lifestyle products: Decorative drink bottlesBags and totesGardening supplies Health products: SupplementsGym equipment and accessoriesTrainers and sports-specific shoes What Online Services Are in High Demand? If you’re not searching for just items to sell for profit, you can offer a wide range of online services. Print-on-demand, graphic design, website development, social media management, and app development are just a few of the other things to sell with a high profit margin. How to Increase Your Profit Margin There are many things that you can do in order to increase your profit margin while selling online. One of the simplest and most effective ways to do this is by improving your product selection. When you offer a wide variety of quality products, you make it easier for customers to find what they're looking for, and this increases the likelihood that they will make a purchase from your store. You can also improve your profit margin by increasing your prices. While this may seem like an unpopular suggestion, it's important to remember that customers are often willing to pay more for quality products. By increasing your prices, you can ensure that you're making a healthy profit on each sale. Finally, check out our guide on how to increase profit margins in e-commerce, where we break down how this can be achieved in more detail.
Advantages and Disadvantages of E-Commerce in 2022
Business metricsAdvantages and Disadvantages of E-Commerce in 2022Using electronic transactions conducted through the internet, the four business models making up the e-commerce industry are based upon transferring products or services directly from a vendor to a consumer with the help of modern tech and without ever having to visit a physical store or location. If you’re considering whether this business venture is a good fit for you, this article looks at the major benefits and drawbacks of e-commerce to help you make the right decision. Table of Contents Advantages of E-Commerce in 2022 i. Enhanced customer experience ii. E-Commerce benefits businesses iii. Businesses can target a global audience iv. E-commerce benefits the government sector v. Fewer overheads and more savingsDisadvantages of E-Commerce in 2022 i. No brick-and-mortar store to browse through ii. Shipping times iii. Shipping costs iv. No sales during a site crashAdvantages of Online Shopping During the COVID-19 Pandemic i. Many businesses were saved due to e-commerce ii. Customer confidence stays high, while infection stays low iii. Extended access to productsDisadvantages of Online Shopping During the COVID-19 Pandemic i. Disrupted postal services ii. Increased e-commerce fraud iii. Lower customer loyaltyIs E-Commerce Worth It Despite the Disadvantages? 5 Advantages of E-Commerce in 2022 1. Enhanced customer experience The advantages of e-commerce to consumers mainly deal with user experience and convenience. Not only can customers shop whenever and wherever, but they also have more options to compare products and prices. From reviews to detailed product descriptions, customers can access a range of information. Whether it be the convenience of shopping from home, the 24/7 availability, or access to a wider range of products that simply aren’t available downtown, more and more people are preferring to shop online over traditional brick-and-mortar stores. 2. E-Commerce benefits businesses While the benefits of e-commerce to consumers are clear, this business model can also work in favor of businesses. Not only can business owners scale their businesses quickly, but by improving and personalizing the experience that they offer their customers, they can ensure customer lifetime value and future sales. 3. Businesses can target a global audience Rather than being subject to the limitations of a finite localized customer base, e-commerce grants budding and established online stores the ability to reach an international customer base - meaning anybody with an internet connection is now a potential customer. 4. E-commerce benefits the government sector It’s not only customers and businesses that can reap rewards. Since the operation of e-commerce can minimize paperwork and make it easier to organize paper-based information, it also benefits the government sector. Increased resources and efficiency mean that delivering public services, like education and healthcare, is a more achievable outcome. 5. Fewer overheads and more savings No rent, no building or contents insurance, and fewer staff wages all mean that e-commerce stores are comparatively cheaper to establish and maintain. These savings are great for business owners and also a tremendous bonus for customers as the savings are reflected in product and service costs. 4 Disadvantages of E-Commerce in 2022 1. No brick-and-mortar store to browse through One of the major disadvantages of digital business and online shopping is that customers can not see the product in real life. For example, if you’re selling clothing and accessories, customers won’t be able to try on an item first to make sure it fits. If they're unhappy with the product, it could lead to refunds, returns, and bad reviews. 2. Shipping times Unlike in-person shopping, customers don’t get the product immediately. In fact, shipping times are one of the worst technical disadvantages of e-commerce to consumers. While same-day shipping is offered as an option by some online businesses, customers typically receive their orders locally within 2-7 days, while international shoppers have to wait between 2-4 weeks. 3. Shipping costs Another drawback of shipping is that the costs have to be covered by somebody, either the business or the customer. It's up to you to balance customer satisfaction with business expenses and decide what percentage, if any, of the shipping costs will be covered by you. 4. No sales during a site crash Sure, you’ll have the advantage of being open round the clock, but one of the more technical disadvantages of e-commerce includes site crashes. If your site unexpectedly goes down, you won’t be able to process any sales. Worse yet, potential customers won’t even be able to browse your product range and wishlist items for later purchase. 3 Advantages of Online Shopping During the COVID-19 Pandemic The COVID-19 pandemic has changed the way we do business forever, the e-commerce industry not escaping this fate. Here are the major advantages of e-commerce during this period. 1. Many businesses were saved due to e-commerce For many businesses, online shopping was the saving grace that allowed them to keep their doors open during one of the worst economic periods in modern history. Without the availability of online shopping, many businesses would have had to close their doors due to bankruptcy. 2. Customer confidence stays high while infection stays low Rather than donning masks, practicing social distancing, and risking infection, e-commerce has allowed customers to shop with confidence and convenience from the safety and comfort of their own homes. 3. Extended access to products During this recent time of raw material and component shortages, buying directly from manufacturers through local or international e-commerce stores has granted customers and online businesses access to previously unreachable markets. 3 Disadvantages of Online Selling During the COVID-19 Pandemic 1. Disrupted postal services As the COVID-19 pandemic has been playing out, postal services from around the world have been pushed to the limit. This has resulted in slowed or delayed shipping, increases in shipping rates, and decreased shipping options. Sometimes, shipping has been completely halted. For example, during December 2021, USPS halted their international mail services for some destinations because of COVID-19 related service disruptions. 2. Increased e-commerce fraud Fraud has always been an ongoing issue in the e-commerce industry. Although during the pandemic, things have only gotten worse. Both online and offline fraud has risen across all industries, and the e-commerce industry has faced many complications trying to combat fraudulent and nefarious activities. 3. Lower customer loyalty Spurred on by the pandemic, there are now more and more budding e-commerce stores popping up in all niches, causing a steady increase in competition. This has led to customers being spoiled for choice, making it tougher than ever to secure their loyalty and trust. Is E-Commerce Worth It Despite the Disadvantages? While the e-commerce industry has just experienced a huge purple patch thanks to COVID-19 restrictions limiting customer access to brick-and-mortar stores, it’s safe to say that many of the advantages won’t likely go away in a post-pandemic era. The e-commerce industry was here pre-COVID and estimates suggest that’s not going to change anytime soon. Plus, considering that there are ways you can reduce the impact of the disadvantages, such as improving your system security to limit the possibility of a site crash or improving your digital marketing strategies, the advantages of e-business can make it a lucrative venture for an entrepreneur with limited funding.
Difference Between Digital Marketing and E-Commerce
Business metricsDifference Between Digital Marketing and E-CommerceWhile digital marketing is an important component of e-commerce, the two are distinct by definition. Although they are so intertwined, it is hard to know where one ends and the other begins. Let's take a look at what makes them different and what the benefits of each discipline are. What Is E-Commerce? For a summary of e-commerce, it is an industry with a large and growing online market that has changed the way that companies and consumers alike do business. Consumers no longer have to go to the mall or a brick-and-mortar store to purchase the products that they want. Instead, they can simply jump online and purchase their items from the comfort of their own homes. The convenience factor cannot be overstated, and it has helped to drive the e-commerce industry to new heights. What Are the Three Types of E-Commerce? There are many different types of e-commerce, but the three main types are: Business-to-business (b2b) The exchange of one businesses’ products or services for another businesses’ products or services.Business-to-consumer (b2c) The sale of a businesses’ products or services to a consumer.Consumer-to-consumer (c2c) The exchange of one consumer’s products or services for another consumer’s products or services. Benefits of E-Commerce There are a number of distinct advantages of e-commerce for both the seller and buyer. These include: Buyer Accessibility The consumer has 24/7 access to the product from anywhere in the world.Choice The consumer has access to a wide range of products to choose from.Assurance The consumer can research the product at their leisure. Seller Low cost Sellers can set up a business that is run from anywhere with an internet connection.Little to no overheads No need to worry about paying for inventory, as it will be shipped as orders are taken.No overstocks Pay for only the products that are sold, no need to pay for storage or insurance of products that are not sold. What is Digital Marketing? Digital marketing is the promotion and advertisement of a brand with the end goal of connecting a business with potential customers. This is facilitated through the use of the internet and other forms of digital communication. What Is a Digital Marketing Strategy? Digital marketing is a plan that analyses how you can integrate your budget, your manpower, and your time to create the most effective marketing campaign for your business. A digital marketing strategy generally follows these steps: Define a set of goals. Set a budget to create a schedule.Research the target audience.Develop a plan for each channel.Implement and monitor its success.Modify if needed. Examples of Digital Marketing Digital marketing can include a wide range of activities such as search engine optimization, social media marketing, email marketing, mobile marketing, and content marketing. Benefits of Digital Marketing There are a number of advantages of digital marketing. These include: Timeliness It allows brands to reach their target audience with the right message at the right time.Specific targeting Increased brand awareness and greater customer engagement through targeted advertising.Wide-reach It provides a great opportunity to promote your business and services to a potentially endless audience. E-Commerce vs Digital Marketing: What Is the Difference? Although often confused, digital marketing and e-commerce are not synonymous. However, they can be closely related. E-commerce is the practice of doing business over the internet, while digital marketing is the practice of reaching your audience over the internet. Can E-Commerce and Digital Marketing Work Together? While e-commerce and digital marketing are different aspects of online commerce, they can definitely work together. In fact, it's arguable that, without one another, perhaps they wouldn't share the same level of success as they do today.
How to Calculate Cost of Goods Sold (COGS) for Your Shopify Store
Profit calculationHow to Calculate Cost of Goods Sold (COGS) for Your Shopify StoreLike any business owner, Shopify store owners need to keep track of their revenue. One of the most essential metrics used to determine a business’s revenue is the cost of goods sold (COGS). But what is COGS, and how do you calculate it? To help you determine your Shopify store’s COGS, we’ll break down everything you need to know about this business metric, including how to track COGS with Shopify, how to include COGS in Shopify, and give you some tips on a Shopify COGS app. That way, your next tax season will be a little bit more bearable. How Do We Define COGS? Simply put, COGS is the amount of money a business spends to produce a product. There are two key components of your COGS: The cost of materials to manufacture the productThe cost of the labor necessary for a business to sell each unit while ignoring indirect overheads like the cost of marketing. COGS is deducted from a business’s revenue in order to calculate sales metrics like gross margin and gross profit, meaning: The higher the cost of goods sold, the lower the revenue margins. Included and Excluded Expenses in COGS Reports Included expenses So, what’s included in the cost of goods sold? In short, COGS consists of all expenses that are required to manufacture a good or service, such as: The cost of laborMaterialsManufacturing overheads Excluded expenses Some expenses aren’t included in the average cost of goods sold. COGS items exclude: Distribution costsMarketingAdministrative expenses Calculating COGS To find the COGS, implement the following method: Calculate the cost of beginning inventory at the start of the allotted period - whether that be for the year, the quarter, or the month.Add the purchases of products, materials, and labor costs during this period.Subtract the ending inventory costs. Formula for COGS: (Beginning inventory + purchases) – ending inventory = cost of goods sold (COGS). For clarity, here’s a cost of goods sold example calculation: Let’s say your beginning inventory is $10,000 at the start of the year.During a 12 month period, you spend an additional $5,000 on materials, products, and labor.At the end of the year, you calculate your ending inventory to be $8,000.That means your cost of goods sold is equal to $7,000. It's important to understand that finding the average cost of goods sold is the same for small businesses as for large differences, whereas the actual values may change significantly. Direct and Indirect Business Costs As a quick summary, direct costs (cost of goods sold) are the immediate costs that go into manufacturing a good or service. In contrast, indirect costs are those general business expenses that are necessary for keeping your business operating. Here’s a quick breakdown of each so that you can see which is which: Direct costs Raw materials used in production Conversion costs Direct labor costs Indirect costs Maintenance, utilities, and repairs Depreciation on production machinery Other factory overhead costs Importance of Knowing COGS Among other costs to a business, the importance of measuring COGS is to determine whether a company has a positive or negative gross profit. Subtracting the COGS from your revenue can help determine your gross margins and gross profits. If the COGS is too high, gross profit will be significantly impacted, making your business less economically viable in the long run. Knowing your COGS can help you determine what areas of your business you need to change in order to maximize profit. Importance of Keeping an Accurate Inventory Aside from the obvious reasons for keeping an accurate inventory, such as allowing potential customers to see how many products you have in stock, an accurate inventory is also vital in allowing you to accurately calculate COGS. Without an accurate estimate of inventory, your COGS will be inaccurate, which will ultimately impact how your business’s profit is calculated. How to Make COGS Tracking as Easy as Possible Keeping on top of everything while running an e-commerce store certainly isn’t easy. Thankfully, with the help of Shopify apps, you are able to perform many tasks easily, such as pricing your products, shipping your order, managing inventory, and staying on top of your COGS. This is where the BeProfit app comes in. Our service integrates seamlessly with your Shopify store, allowing you, amongst many other things, to track your inventory, stay on top of your overheads, monitor COGS tracking, and calculate COGS in a simple way. As such, you can get onto what’s most important while BeProfit takes care of the rest. Discover the benefits of our service here.