What is eCommerce Software? Analysis of Features, Benefits and Pricing
Posted on 21st Jun 2021
An online store consists of many intricate components and processes, which ecommerce software streamlines through an easy-to-use interface that even non-tech persons can operate. Further facilitating things is the ability of the system to integrate with other platforms and services such as CRM, CMS, ERP, payment gateways, email marketing tools, accounting software, fulfillment services, and social media networks.
In this article, we’ll go beyond answering what is ecommerce software and examine its many aspects from what it does and how it works to its key features and examples of the leading tools on the market. This way, it’s easier for you to discern how you can use it for your operations.
Despite the gloom and doom surrounding the pandemic, it has proven to be a mighty catalyst for speeding up digital transformation—59% faster according to IBM’s estimates. The biggest gainers are the ecommerce industry and the underlying fintech industry that supports and enables it.
Numbers vary, but 2020 ecommerce growth rate estimates range from 16.1% (Statista) to 19% (Oberlo) and 27.6% (eMarketer). In the US, Digital Commerce 360 puts the 2020 ecommerce growth rate at an incredible 44% YoY. No matter which figures you might want to favor, it’s clear that ecommerce remains largely unscathed by the pandemic. In fact, the exact reverse is what happened: the pandemic bolstered the credentials of ecommerce going forward.
As of 2020, there were an estimated 2 billion digital purchasers worldwide. More importantly, 93.5% of global internet users have purchased products online. There are around 24 million ecommerce sites across the world. Together, all of them accounted for an estimated global ecommerce sales of $4.2 trillion in 2020. Global ecommerce user penetration will be 50.8% in 2021 and is expected to hit 63.1% by 2025. Meanwhile, ecommerce penetration rate in the US stands at just 21.3%, which means there is still much room for newcomers with compelling products or services to offer.
Pandemic-proof, colossal growth rate, and with more than ample space for new players, ecommerce is where all the industry action is for a long time coming. If these preposterous numbers are making you itch to get into the ecommerce arena, consider expanding your battle arsenal with the crucial information we’re presenting next.
There are two general classifications of ecommerce software and they pertain to the type of deployment:
On-Premise. Installed on a local server or computer and managed on-site by a team that handles manual updates, fix problems, and do general troubleshooting. Online sellers early on initially went with on-premise solutions because they allowed greater hands-on management compared to hosted solutions.
Software as a Service. SaaS or hosted solutions are technically the hands-off option since all updates, patches, and newly-released features are done automatically or with one-click integrations. Hosted ecommerce software has evolved dramatically to allow wide customization and flexibility, previously exclusive to on-premise, making it now a sufficient solution for most online retailers. Furthermore, SaaS software can be launched quickly and comes in affordable packages.
By: Shaun Baker