In this era of Internet connectivity, aspiring entrepreneurs will find starting their own eCommerce store easier than ever. There are many different options to choose from like eCommerce platforms like eBay and Amazon, to eCommerce integrated website builders like Wix and Shopify.
Before the eCommerce revolution, those looking to sell their goods over the internet ran into complications around web development and design, hosting costs, and payment processing. With these easy eCommerce tools, it may seem like selling your wares on the internet is a breeze—but there’s always another side of the coin. With these built-in features, eCommerce sellers are often faced with a multitude of fees that take chunks out of their bottom line.
eCommerce Platform Fees
If you are a seller and don’t want to go through the hassle of building a website and promoting your products, using an eCommerce platform may be the way to go. But before you create your listing, know a little more about what to expect from these popular platforms.
When you create a listing on eBay, you are mainly subjected to two fees: an insertion fee and a final value fee when your item sells. The insertion fee is mostly based on what sellers set their minimum opening bid or reserve price as. There are certain fees associated with different ranges of opening bids/reserve prices. If you’re listing one product at a time, the insertion fees are not that costly, but if you wish to list your product in several categories, the fee can stack up.
There’s one more big fee eBay levies against sellers, and that’s the final value fee. If your item sells, eBay usually takes about 9% of the final value of your listing to a maximum of $50. There are other fees associated with selling on eBay, check out the table to learn more.
Amazon is by far the most trafficked eCommerce platform. So, if you’re looking for a large consumer base, Amazon may be for you. However, selling on Amazon is highly competitive. You compete with merchants such as yourself, and more recently, Amazon’s own private label brand. On top of that, you have to muck through Amazon’s numerous seller’s fees. There are selling fees, shipping fees, per-item fees, referral fees, and the list goes on.
Website Builders May Be The Way To Go
The above eCommerce platforms may be alright if you are looking for a short-term selling strategy or if you are looking to extend your brick and mortar retail business online. But, for those that are looking to maximize their profits as eCommerce business-owners, building your own eCommerce site will give you more control of your operating costs. Let’s take a look at the two top website builders Shopify and Wix.
Off the bat, Shopify offers four plans to choose from: Lite, Basic Shopify, Shopify, and Advanced Shopify. These plans range from ~$30 to ~$300 a month. They all (except Lite) offer their eCommerce website and blog builder, unlimited product listings, and 24/7 support. They have over 100 professional looking templates available in their Theme Store and some themes are free to use.
If you want to expand the usability of your Shopify site, they have over 1,200 plugins you can choose from in their App Store. From plugins to help with social media engagement, SEO, or inventory management, Shopify can make building, optimizing, and maintaining your site very easy and user-friendly.
As far as payments go, Shopify can tack on some transaction fees depending on your subscription plan. They recently rolled out their own payment processing platform, Shopify Payments, that provides some benefits, but they will not process payments for high risk merchants. So, if your business falls in a high risk processing industry, you would need to find an alternative payment processor to manage your high risk merchant account to accept credit card payments.
Wix is by far the most user-friendly website builder on the market. No coding experience is needed to get an eCommerce shop up and running quickly. The website editor is a simple drag and drop layout, and you can build a shop from the ground up within a few hours. Wix’s Online Store templates have pre-build designs for virtually any business type and new styles are added every month. Need your shop to be mobile? Wix has got you covered, each template was designed to be mobile responsive, ensuring you never miss a potential sale.
But what about payments? We recently caught up with Eric Benayoun, Head of Payments at Wix, during the October 2018 Money 20/20 conference in Las Vegas, Nevada. Benayoun detailed what makes Wix stand out amongst the other CMS and website builders out on the market. They are focused on research and development, on offering their users the latest technology to help them build their brands and their businesses. They recently released Wix Code for advanced web applications and further customizability and Wix Answers to handle customer service for your products across multiple channels.
What really is beneficial to users is Wix Payments. They have partnered with payment processors including PayPal, Square, Sofort, iDeal, Alipay, and they even offer payment processing in India through Citrus Pay. The best part is that Wix does not charge any transaction fees. They have subscription packages that range from a max $25 to $5.
The Low Down
So, if you are itching to launch an eCommerce shop of your own and have a long-term plan, going through a CMS or website builder like Wix or Shopify will be your most affordable and best option. Combined with their drag and drop tools and their seamless payment integrations, Wix eCommerce is a great place to build your eCommerce shop.