The State of Ecommerce Platforms: Cloud Commerce, Open Saas and The Api Economy (Updated 2020)
The State of Ecommerce Platforms: Cloud Commerce, Open Saas and The Api Economy (Updated 2020)
The State of Ecommerce Platforms: Cloud Commerce, Open Saas and The Api Economy (Updated 2020)
Meeting your business objectives isn’t easy – no matter how many Inc., Entrepreneur, Fast Company or
Medium posts go viral within the executive community explaining why this or that strategy produced
hockey stick growth.
Your unique combination of these aspects is unlike that of any other ecommerce business out there –
and is why no FUD headline like “Why Your Business Will Fail” or “8 Innovative Ways to Skyrocket
Growth” will ever fully apply to your brand.
Of the many decisions you make to drive success for your online
business, one of the biggest is which pipes you install.
That is, which ecommerce platform you choose to power your business and ready it for scalable, long-
term growth.
For most growing mid-market businesses, this technology is typically provided by BigCommerce,
Magento, Salesforce Cloud Commerce (formerly Demandware) or Shopify.
The selection of one of these four platforms is where you can truly
unlock performance.
Understandably, this decision has wide-ranging implications –– to your customers in engaging with your
brand and reducing friction of getting the product they need, to your employees that have to implement
The following ecommerce platform comparison and explanations will help you evaluate the key criteria
and make an honest assessment of which solution best suits the needs of your business.
We’ll cover:
4. What the heck cloud even means these days (hint: it’s just where your hosting environment is).
6. Important features + questions to ask your ecommerce platform solutions in your consideration
set.
Ecommerce platforms like BigCommerce o er the powerful features needed to run a business, while
also integrating with common business tools — enabling businesses to centralize their operations and
run their business their way.
Building one from scratch, which is out of the question for most businesses — and only justifiable
for multimillion (or multi billion) dollar companies.
Using a plugin, which isn’t an option if you’re looking to build and grow a legitimate business –
even a small one.
Open-Source.
Headless Commerce.
Beyond this, there are two ways in which ecommerce platforms o er a hosting environment for their
customers.
All business owners need a hosting environment to run their ecommerce store.
Hosting Environment: Cloud or On-Premise, though all patches and platform updates require
manual implementation across the board.
Open-source ecommerce platforms are ecommerce solutions in which you can modify all aspects of the
code.
Using an open-source ecommerce platform means you – the brand – are responsible for:
PCI Compliance.
Keep in mind that just because your ecommerce platform is hosting your store using a
cloud environment doesn’t mean you have unlimited bandwidth like you would see on a
SaaS solution. Ask about specific bandwidth allowances, specifically if you are evaluating
Magento or Volusion.
Security issues.
CRM.
CMS.
ERP.
For many brands, open-source ecommerce platforms are too cumbersome, expensive to maintain, and
require too much technical knowledge.
SaaS.
In fact, open-source ecommerce platforms hosted via the cloud (i.e. not on-premise) are today only 46%
of the consideration set for large ecommerce brands.
Why?
Because on average, open-source ecommerce platforms and sites have a 6x annual cost of ownership
versus SaaS or Headless Commerce models.
Brands can get to market materially faster with SaaS and Headless
Commerce, in an average of 55 days.
And we live in an incredibly competitive environment, where a slowdown to beautiful and innovative
UX, product or backend optimizations can give your competition the leg up.
SaaS ecommerce platforms remove much of the complexity from running an online business because
instead of managing the so ware yourself.
When factoring in development cost, this is a vastly cheaper option than open-source solutions.
Marketing and growth teams at ecommerce brands are o en the internal cheerleaders for SaaS
ecommerce solutions at their organizations. This is due to a SaaS solutions ability to go-to-market
quickly and a ordably.
Platforms that meet the above criteria are o en referred to as “Open SaaS.”
Discover why brands like SONY and PEPSICO use open SaaS to tackle:
Headless Commerce is a version of CaaS ecommerce in which the shopping cart is decoupled from the
CMS.
In these use cases, brands o en use a design experience platforms (DXP) such as Adobe Experience
Manager and Bloomreach or a content management system (CMS) like WordPress or Drupal. Then they
Historically, with on-premise hosting, open-source platforms or proprietary platform builds, IT and
development departments at large brands have been controllers of the business.
However, due to the high cost of monolithic technology stacks and need for speed and innovation from
a marketing standpoint, SaaS and cloud hosting disrupted the model.
Using APIs, plug-ins, and occasionally decoupled technology, brands can maintain their single source of
truth monolithic systems on the operations end.
On the presentation layer, SaaS APIs allow for a modern SaaS technology stack, including ecommerce
SaaS platforms as well as everything from ESPs and even lighter weight ERPs like Brightpearl.
The individual pieces of the item are the microservices and, when put together, they create a final
finished project.
For many ecommerce brands, the first step toward this microservice architecture is being done via
Headless Commerce.
This allows the brand to have increased control over their ecommerce store, while out-sourcing PCI
compliance and security best practices and assurances to a commerce solution provider – either as a
decoupled solution or via the SaaS platform itself, the latter of which is the most common.
Let’s look back at our IKEA example and take the classic IKEA nightstand.
Using a di erent front-end piece that gives you an updated take on the original, but still with the same
foundation and utility (e.g. drawer = cart/checkout).
Self-Hosted.
Cloud.
They are merely how the site itself is hosted, with machines on-site (literally in a room that your IT or
development team control and manage) or o -site and managed in a warehouse (think Amazon Web
Services, for instance).
Self-hosted ecommerce platforms require online store owners to find hosting, deal with installations
and o entimes perform updates to the so ware manually.
The benefits of this option include more control over your online retail platform, greater visibility of your
own data, and a better understanding of data security.
While this route makes sense for some extremely complex businesses, it usually results in higher
expenses and lower revenues.
Cloud-hosted ecommerce platforms o er hosting for their customers via o -site solutions like Amazon
Web Services.
This means the cloud platform manages uptime for the brand. Cloud ecommerce platforms like
BigCommerce manage 99.99% uptime annually and have had 4 years of 0 downtime during Black Friday
and Cyber Monday, the highest tra icked times of the year.
This is where solutions like BigCommerce and Salesforce Cloud Commerce (both SaaS solutions) di er
from a solution like Magento Commerce (Cloud).
PLATFORM OF MA NY NA MES
Magento renamed their o ering within the last 6 months, which is a little confusing.
These include:
Merchandising.
Pricing.
Promotions.
Search capabilities.
The ability to personalize sales and services to your liking (e.g. payment options, marketing
features, mobile app, add-ons, etc.).
Ecommerce platforms o er business owners the ability to customize product information and how it’s
solicited to best fit their own online retail needs, which can be a mutual benefit for both the business
and its customers.
For larger organizations using their own ERP, PIM or OMS solutions,
ecommerce platforms o er open APIs for data syncing as to not disrupt
business as usual.
There are, however, some basic things you should find out about prospective provider.
Mobile optimized site, checkout and full experience (out of the box) and fully customizable.
Search Engine Optimization (SEO) features and fully customizable URLs throughout the site.
Built-in basic ecommerce features including promotions and discounts, analytics, catalog
management, WYSIWYG editors, etc.
Advertising to social media users is a must if you want to capture a massive and engaged audience.
Facebook alone boasts over 1.94 million active monthly users. That’s a
lot of potential customers.
BigCommerce o ers built-in integrations with Facebook, Instagram, and Pinterest, so you can market to
users directly in their news feeds or main accounts.
With the advent of Buyable Pins, Facebook Shop and Shopping on Instagram, you can even sell directly
to users without them needing to leave their platform of choice.
Please describe how we can publish our product catalog to Facebook Shop. Is there an additional
cost for this service?
Can users check out within Facebook or would they be redirected to our ecommerce store?
Can customers or end users login to our storefront using Social Login (Facebook, Amazon,
Google, etc)?
How can we display User Generated Content such as Pinterest or reviews in our store?
You don’t have to go digging around the internet for Shopping on Instagram examples. We did it for you.
Explore more than 80 real examples of Instagram Shopping in the wild, no more stalking to see
who is doing what
Draw inspiration to educate your own posts and your own strategy. Some folks are seeing as
much as a 1,416% increase in sales and tra ic!
Maybe you o er a wide assortment of products, or perhaps a significant number of variants for your
basic product line.
This can add up to a lot of SKUs, and some platforms are better than
others when it comes to SKU count.
Please describe how we can manage our product catalog within your system.
Can we preview our product catalog in any theme, without purchasing the theme?
Can we add multiple images per product? Is there a limit to the number or size of images?
Do you support SKU level images with image switching on variation selection?
How easy is it to add video to PDP? Is there a limit on the size and length of videos we can
upload?
Please describe how product options and option sets are managed in your system
Is there a quick edit option available to modify stock levels or pricing change?
How do you support custom Product Pages? Can these be configured per category?
Is it easy for customers to share products with friends from the PDP?
And when that time comes, it’s good to know that you can get ahold of a real-life person to assist you
with the problem.
Some platforms outsource their customer service and make it di icult — or practically impossible — to
call in and get help when you need it most.
At BigCommerce, we feel that every one of our customers is entitled to personalized customer support.
Please provide details about your on-boarding processes for new clients.
Do you provide training and user documentation for the entire platform?
Please describe your support process (including tools) along with standard SLA’s.
Please describe your change management processes including the system audit logging
capabilities.
How does our historical data (orders, customers, products) migrate to your solution?
Do you have extended support hours for supporting an event’s onsite operation?
How big is your customer support team and where are they located?
Please detail your Phone Support o ering. Is it available 24/7? Is there an additional cost
associated with this service?
What ticketing system do you use? How can we track status of our tickets?
Issuing an RFP is the next step for brands considering a re-platform. However, RFPs can be tricky – and
what you include in them makes a world of di erence in terms of what you get from your new platform
(and also in making the right choice to begin with).
This free RFP includes 188 questions, from big ideas to minutiae, so you don’t miss a thing.
Here is an overview of the most popular ecommerce platforms, their advantages and disadvantages.
BigCommerce.
Magento.
Volusion.
Demandware.
WooCommerce.
3dcart.
Shopify.
Kibo.
Prestashop.
Squarespace.
Big Cartel.
Wix.
Ecwid.
Episerver.
OpenCart.
BigCommerce.
The platform o ers small business and start-up plans as well, with more built-in features and 100% URL
(SEO) control across the board than competitors. The integration options, like our headless WordPress
plugin, make the platform a frontrunner across headless commerce solutions.
BigCommerce’s initial learning curve is higher than some other SaaS platforms due to the complexity of
built-in features.
Magento.
Magento is historically an on-premise, open-source solution preferred by brands who have already
heavily invested in IT or development teams. Magento 2 (AKA Magento Commerce Cloud or Magento
Enterprise Cloud Edition) launched a cloud, open-source solution in more recent years.
The advantages to Magento include 100% control of your own ecommerce instance.
The disadvantages to Magento include manual patch and bug updates, requiring entire site and
integration QA.
Many of these have been high profile in news reports over the last few months.
BigCommerce v. Magento
See how BigCommerce and Magento compare for your specific business needs.
Volusion.
The company currently runs and supports two di erent platforms, which takes a heavy tax on
engineering resources as they are maintaining and building two completely di erent platforms.
BigCommerce vs Volusion
BigCommerce o ers more conversion-driving tools than Volusion without having to pay extra for:
Tra ic spikes.
This allows you to grow 28% year over year — 2x the industry average.
Salesforce Cloud Commerce, formerly Demandware, is a SaaS ecommerce platform provider preferred
o en by high-profile fashion retailers.
WooCommerce.
WooCommerce disadvantages include scalability without slowing down the live store and the high
developer costs associated with most open-source platforms. Here is more information about the
history of WordPress ecommerce.
3dcart.
3dcart advantages include multilingual support and advanced shipping solutions – no API required.
3dcart disadvantages include a lack of a CDN, resulting in poor site uptime during high tra ic volumes
for stores and di icult to reach customer service. They also lack modern responsive themes.
Shopify.
Shopify is a well-funded and public SaaS ecommerce platform provider. They are popular with starter
stores, hobbyists and brands with SKU counts of less than 100.
Shopify advantages include a quick learning curve for non-experienced ecommerce practitioners,
resulting in a quick go-to-market for new brands. They also have an enterprise solution called Shopify
Plus. For more information on the pros and cons of each platform check out this great Shopify Plus vs
BigCommerce comparison from Cart Consultants.
Shopify disadvantages include restricted API call volume, a URL structure that is not fully customizable
(sections of Shopify store URLs cannot be changed), high transaction fees for not using their proprietary
POS and a lack of built-in basic ecommerce features.
BigCommerce vs Shopify
According to Internet Retailer, BigCommerce and Shopify are the two fastest-growing platforms serving
B2B and B2C sites selling more than $1 million per year online — but BigCommerce outranks Shopify in
both adoption and growth rate. Read more to see BigCommerce and Shopify compare.
Kibo.
Kibo is an omnichannel platform provider which acquired the SaaS ecommerce platform Mozu in 2016.
Mozu was built from the ground-up, o ering, in theory, the most modern of ecommerce SaaS solutions.
Prestashop.
The platform can be used in 60 di erent languages and is popular outside of English-speaking countries
where other platform providers dominate including:
BigCommerce.
Demandware.
Shopify.
Magento.
Squarespace.
Squarespace is a SaaS website platform provider. They are best known for their work with the creative
community. Their ecommerce platform was spurred o by a need from that creative community for a
light-weight cart to sell items.
Squarespace disadvantages include limited shipping & payment gateway solution as well as limited
discounting and complexity for basic built-in ecommerce features.
Big Cartel is an ecommerce solution designed for smaller merchants who do not need a sophisticated
platform. Typical Big Cartel merchants are bands, clothing designers, jewelry makers, cra ers, and other
types of artists. The platform is very easy to use but has a limited feature set. Big Cartel likely won’t fill
your needs if you have a large product catalog.
Wix.
Similar to Squarespace, Wix is best known for its easy website set up. Keeping it simple with a drag and
drop interface, competitive pricing, and modern for purchase and free themes. Wix is most o en used by
entrepreneurs and other small business creatives. The platform prides itself on being a solution for both
beginners and experts who seek creative freedom in their website work. They are an acceptable solution
for beginning stages, but lack advanced ecommerce capabilities.
Ecwid.
With over 1 million online users, Ecwid has become a popular solution for small business owners. This
solution is not a platform, but rather a widget which is intended for users who want to add a store to an
existing website. If you have less than 10 products in your catalog, Ecwid is a free solution. A er that,
plans start at $15/month.
Episerver.
Episerver’s platform puts a focus on content and personalization. Another headless commerce solution,
the platform strives to combine digital marketing, content management and digital commerce into an
all-in-one solution. The solution is a popular choice for mid-market and enterprise-level merchants. The
platform is designed to pair well with other Episerver solutions like Episerver Find and Episerver
Campaign.
OpenCart.
BigCommerce, Shopify and WooCommerce. are the most common ecommerce platforms for small
businesses.
Depending on your experience and your specific brand needs, each platform has its advantages and
disadvantages.
SaaS ecommerce platforms allow brands to rent the technology at a low cost, making the barrier to
entry to online selling extremely low.
Custom solutions require immense monetary resources to build, and have delayed go to market times.
Ecommerce website costs vary. Most open-source platforms are technically free in that you aren’t paying
a licensing fee, but there is a high cost in terms of hosting and development.
Most ecommerce platforms are written in commonly used programming languages, including:
Ruby on Rails.
PHP.
Javascript.
CSS.
Many SaaS companies use an abstraction layer for their programming language.
Shopify, for instance, used their proprietary Liquid as an abstraction layer for Ruby on Rails.
BigCommerce uses Handlebars.
There are tons of ecommerce platform comparisons out there. I’ve chosen this one for a deep dive as the
methodology is sound and comprehensive.
Here is a brief summary of how Ecommerce CEO found the data to do the research:
2. Pulled a giant spreadsheet for all the ecommerce websites on each platform (our Magento list
had 23,887 sites)
3. Used RAND function in Google Sheets to assign a random number to each row
4. Collected data on the first 100 websites on each platform (100 sites x 20 platforms = 2000 sites)
Price.
Performance, including: site speed for desktop and mobile, mobile UX, platform SEO.
Features, including: SEO tools (sitemaps, customizable metadata and URLS, bulk editing), fuzzy
and exact product search, ability to send abandoned cart emails, blog functionality, mobile best
practices, coupons and discount capabilities, integrated ratings and reviews, multiple product
photos with zooming capability, ability to handle subscriptions/recurring product orders,
dropshipping integration, ability to sell customizable products, fulfillment by Amazon
integration, real-time shipping and tracking, reward points program compatibility, Google trusted
stores.
Ease of use, including: phone support, 24/7 support, chat support, certified additional
dev/marketing support, free templates.
Here are the results of the study (in depth here and via screenshot below).