E-commerce software vs. shopping cart software: What’s the difference? —

you’ll need to know exactly what you’re looking for. When you first start looking at e-commerce options, you’ll find that vendors and users often refer to them as either “e-commerce software” or “shopping cart software.” Some also use the two terms interchangeably, adding to the confusion. Before you make a decision, it’s important to know which one is best suited for your business

So what’s the difference? E-commerce software and shopping cart software are pretty much the same thing. They both help you launch, run and manage an online store, as well as process payments and work together with the rest of your operations. But the key differences are in their specific functions.

If you need a full-featured, all-in-one e-commerce solution, choose an e-commerce software. E-commerce software include everything from website hosting and Web design, to setting up a storefront, processing payments, and providing merchant tools, marketing, security and everything else you need to build and grow your online business. You can either build your website using the e-commerce software, or integrate it with an existing website or blog.

Shopping cart software, on the other hand, is best if you already have a website and simply need to set up a way to list products and services and process payments. Compared to e-commerce software, shopping cart software often come in the form of website plug-ins or extensions and are often limited to helping you set up a virtual storefront, payment processing and some merchant tools. Some customizations may also be possible, depending on the website and software.

As mentioned above, the terms e-commerce software and shopping cart software may be used synonymously. Make sure to do your research and ask your vendor for specifics.

Do you need e-commerce software?

Small businesses have many options when it comes to selling online. One way is to sign up with marketplaces that allow you to list your products in a hosted storefront, such as eBay, Amazon and Etsy. But if you want more control over your e-commerce business, setting up your own website with an e-commerce software or shopping cart software is the way to go.

If any of the following apply to you, investing in e-commerce or shopping cart software is the best choice for your online business.

You want your own website. When you use an e-commerce marketplace to sell your products and services, your storefront resides on their website with their branding. With e-commerce software, you get your own website and domain name to give your online store its own home and make your e-commerce business completely yours.

You want control over your online store. Offering a wide range of features and customization options, e-commerce software gives you plenty of control over your online store. You can design your website however you want, designate your own workflows, choose your own pricing models and more, so you can set up your store in any way that fits your business’s changing needs.

You want a simple, easy-to-use solution. Not a programmer? Not a problem. Most e-commerce software can get you up and running in no time, without the need to code or manually install anything. Although some customizations and additional functions may require some tech skills, if you’re just getting started, most solutions can be set up in just a few steps and takes almost no work to maintain. Many also offer website templates and DIY website-building tools, so you can drag-and-drop your way to launching an online store.

You want help with marketing. Besides merchant tools to help you sell online and process payments, e-commerce software typically include marketing tools to help you get the word out about your store. These include social media marketing — and social-sharing capabilities that let customers share product pages and their purchases with followers — promotions and special discounts, loyalty programs and more.

You want to keep all your profits. Online marketplaces make their money by taking a cut of every sale on top of credit card processing fees, with some also charging monthly fees. With an e-commerce software or shopping cart software, you keep all your profits and only pay the provider’s subscription and payment-processing fees.

You want to simplify your operations. One of the biggest benefits of using e-commerce software as a small business is that it can integrate with other business solutions you already use. This makes it easy to streamline your operations, and you’ll always have access to the latest data in real time. Read more about third-party integrations below.

You want your own website. When you use an e-commerce marketplace to sell your products and services, your storefront resides on their website with their branding. With e-commerce software, you get your own website and domain name to give your online store its own home and make your e-commerce business completely yours.

You want control over your online store. Offering a wide range of features and customization options, e-commerce software gives you plenty of control over your online store. You can design your website however you want, designate your own workflows, choose your own pricing models and more, so you can set up your store in any way that fits your business’s changing needs.

You want a simple, easy-to-use solution. Not a programmer? Not a problem. Most e-commerce software can get you up and running in no time, without the need to code or manually install anything. Although some customizations and additional functions may require some tech skills, if you’re just getting started, most solutions can be set up in just a few steps and takes almost no work to maintain. Many also offer website templates and DIY website-building tools, so you can drag-and-drop your way to launching an online store.

You want help with marketing. Besides merchant tools to help you sell online and process payments, e-commerce software typically include marketing tools to help you get the word out about your store. These include social media marketing — and social-sharing capabilities that let customers share product pages and their purchases with followers — promotions and special discounts, loyalty programs and more.

You want to keep all your profits. Online marketplaces make their money by taking a cut of every sale on top of credit card processing fees, with some also charging monthly fees. With an e-commerce software or shopping cart software, you keep all your profits and only pay the provider’s subscription and payment-processing fees.

You want to simplify your operations. One of the biggest benefits of using e-commerce software as a small business is that it can integrate with other business solutions you already use. This makes it easy to streamline your operations, and you’ll always have access to the latest data in real time. Read more about third-party integrations below.

E-commerce software features

E-commerce software products offer a wide range of features to help you sell online and manage your online store. When we spoke with small business owners, the two most important features they said they look for in an e-commerce or shopping cart software are ease of use and customization capabilities.

“The perfect commerce solution would be easy to set up and get running, but still retain the ability to change as much or as little as you would want from vanilla build,” said Alice Pai, founder and CEO of My Pichi, an online seller of mobile phone cases.

It also helps that the software automates processes and maintains itself.

“A ‘perfect’ shopping cart platform is one that is customizable, and once it is set up you can forget about it,” added James Fayal, founder of Zest Tea, an online specialty tea store.

Here’s what else e-commerce software have to offer and how it can help you launch and run your online business:

Everything you need to build a website. From Web hosting and domain names to storage and bandwidth, e-commerce software is an all-in-one solution to start your online business — without any tech skills. Many also offer additional functionalities, such as built-in blogs, content management systems, Web design and even DIY website-building capabilities.

Online storefront. Showcase your products and services with your virtual storefront. E-commerce software products make it easy to set up your storefront, as well as add and edit inventory, product descriptions, pricing and more.

Payment processing. No need to implement third-party credit card processors on your own. E-commerce software and shopping cart software automatically include payment gateways, such as Stripe and PayPal, and link them to your bank account, so you can get paid fast.

Merchant tools. Find and retain customers with marketing tools, abandoned cart reminders, social sharing capabilities and the ability to offer daily deals, gift certificates, loyalty programs and special discounts.

Drop-shipping options. Don’t have your own inventory? Some e-commerce software enable you to sell wholesale and retail products from different brands and manufacturers.

Third-party integration. Make your life easier by connecting your e-commerce software with apps you already use — such as point-of-sale (POS), customer relationship management (CRM), accounting software and email marketing — to streamline your data.

Mobile commerce. Provide customers with mobile-friendly versions of your online store so they can shop anytime, anywhere using their smartphone or tablet. This also enables you to accept mobile payments, such as in-app purchases and mobile credit card processing.

Customer support. Be there for your customers with phone, email, live chat, community forums and other customer service solutions.

Security. Protect your business’s and customers’ information with SSL encryption, compliance and fraud protection tools.

How much does e-commerce software cost?

Because there are so many different types of e-commerce and shopping cart software, costs vary greatly. For a full-featured e-commerce software, expect to pay anywhere from around $10 per month up to $200 per month. There are several factors that go into determining costs, such as the features your business needs, storage capacities, domain names, customization capabilities, credit card processing fees and more.

Shopping cart plug-ins and extensions, on the other hand, are typically free and offer many add-ons at no charge. However, some plug-ins and extensions charge for additional functions and services, which also vary depending on the software provider and platform.

Benefits of using a shopping cart software

In addition to setting up and maintaining an online store, e-commerce software and shopping cart software offer many benefits that make running an online business easier, so you can focus on more important aspects, such as sales, marketing and customer service.

Here’s what e-commerce business owners we talked to said they love most about their e-commerce and shopping care software.

• Ease of use. Brandon Howard, owner of online toner store Toner Emporium, said his shopping cart plug-in requires no tech skills, making it easy to launch an online store from the ground up and add or edit products as you grow.
• Save time. Pai, of My Pichi, said one benefit of using e-commerce software is that there’s no need to waste time worrying about the different aspects of running a website. Their solution handles everything from servers to SSL certificates and credit card processing.
• Save money. Nima Noori, CEO and founder of online vapor store Toronto Vaporizer, said their software is very cost-effective, as it offers all the extensions and plug-ins you can imagine, and you can easily implement them without the expense of hiring developers to build and set them up for you.
• Support. Brandon Ackroyd, head of customer insight at mobile deals website TigerMobiles.com, appreciates that the company’s shopping cart software lets users solve problems quickly — it is well-supported by the vendor’s team and comes with a community of users who are eager to help, he said.
• Boost sales. Lisa Cash Hanson, CEO of interactive baby pillow company Snugwugg, said their online store has made thousands in potentially lost sales, thanks to their e-commerce software’s abandoned cart emails, which automatically remind customers to go through with the checkout process. This takes zero effort on the company’s part, but creates a big return, she said.
• Accept multiple currencies. Heidi Hecht, owner of the Nothing in Particular Blog, where she also sells writing services, loves that the company’s shopping cart software lowers their payment processing fees while giving customers more payment options by accepting multiple currencies, including cryptocurrencies like Bitcoin and Litecoin.
• Additional apps. Samantha Laliberte, co-founder of hair accessories retailer Ezzy Lynn, likes that the software offers a number of free and paid apps you can install to take your business to the next level, like visitor data, social sharing, analytics, and recover abandoned carts.
• Get paid fast. Jim Letourneau, vice president of marketing and technology at Design.UX, which designs and sells accessories for wearable fitness trackers, said he loves the e-commerce software’s seamless integration with the preferred payment gateway and credit card processor. Not only was it easy to set up, but the money goes directly into the company’s bank account and they could quickly issue refunds to custome

Choosing the right shopping cart software

Ready to invest in an e-commerce software? Choosing the right one is key to your online business’s success.

To find the best e-commerce or shopping cart software for your business, here’s what small business owners we spoke with said you need to ask potential vendors:

• How easy is it to set up and use?
• Is it designed for small businesses?
• Is it customizable to fit my business needs?
• Does it automate workflows to make my life easier while delivering a good customer experience?
• Can it help me boost profits with marketing tools, abandoned cart reminders and other features?
• Does it require a lot of maintenance, or can I forget about it once it’s set up?
• Are there any service limitations, for instance, the number of products or transactions I can handle every month?
• Does the software work with third-party business solutions I plan to or already use?
• If I have a physical store, can I integrate the software with my store’s data, operations and resources?
• How is my data backed up? Can I access and restore my data immediately when there is an outage?
• What security measures do you have in place to protect my customers’ information?
• What is the total cost? Are there any setup, maintenance or additional fees?
• What types of tech support and customer service do your provide — phone, email, live chat, knowledge base, FAQ section, support forums? Can I reach you any time?

Here is a full list of e-commerce software and shopping-cart vendors, and a summary of what each company claims to offer. This alphabetical list also includes our best picks.

1ShoppingCart — Sell everything from products and services to digital goods. This shopping cart and e-commerce software focuses on selling, promoting and growing your business, providing you with all the tools you need to be successful with your e-commerce startup. 1shoppingcart.com

3dcart — Use this online store builder and shopping-cart software to easily launch an e-commerce website or an online store on your existing website. It requires no coding or Web programming skills — simply choose a template, add your logo, upload product images, and add descriptions and pricing, and you’re good to go. 3dcart.com

Ashop Commerce — Get your online store up and running without all the fuss. Ashop Commerce provides fast and simple setup, so you can start selling right away. It also focuses on helping you increase sales and growing your business by providing robust tools to measure your store’s performance and further improve your website. ashopcommerce.com

Avactis — Avactis is a full-featured PHP shopping cart that includes cloud-based hosting options and mobile commerce. In addition to getting an online store, you can build a custom mobile app, so customers can shop wherever they are. Avactis online stores can also be customized using a wide range of themes and extensions. avactis.com

Big Cartel — Designed specifically for artists, the Big Cartel shopping-cart software lets fashion designers, bands, record labels, jewelry makers, crafters and other creative professionals launch an independent online store on their own websites. The service features both free and paid packages using a monthly subscription, so they don’t take a cut of your sales. bigcartel.com

Bigcommerce — One of our runner-ups, Bigcommerce lets small businesses with big visions create scalable, powerful online stores for all types of products. A full-featured e-commerce software, Bigcommerce provides you with a website and domain name, secure shopping cart and product catalog, payment gateways, email accounts, marketing tools, mobile optimization and much more. bigcommerce.com

Claim the Web — More than an e-commerce software, Claim the Web provides expert consulting and evaluation services to make sure your online store is optimized for success. It also features conversion-based website designs and custom functionalities to help you increase sales and simplify your operations. claimtheweb.com

CoreCommerce — Affordability and ease of use are key for any small business. CoreCommerce provides an all-in-one hosted shopping cart that offers no transaction fees, simple setup, plenty of customization options and fast customer service. Additional features include responsive themes for mobile access, social capabilities, search engine optimization (SEO) and many more tools to help your e-commerce business grow. corecommerce.com

CS-Cart — Offering a more advanced e-commerce solution, CS-Cart is a feature-rich shopping-cart software built for businesses of all sizes. In addition to a website, shopping cart and payment processing, it offers a built-in content management system (CMS), advanced SEO tools and customizable PHP/MySQL-based templates to fit your vision for your online store. cs-cart.com

Easy Digital Downloads — If you wish to sell digital goods and are a fan of the WordPress platform, Easy Digital Downloads is for you. This shopping-cart plugin lets you easily sell digital downloads on your WordPress website or blog and comes complete with a shopping cart, payment gateways, customizable themes, detailed reporting and more. The best part? It’s completely free. easydigitaldownloads.com

Ecwid — Loved by many of the small business owners we spoke to, Ecwid lets you add an online store to your existing website in as little as 5 minutes. For even more selling opportunities, Ecwid online stores also work on mobile devices and can be added everywhere, from social media (including Facebook and Tumblr) to marketplaces like Google Shopping, Yahoo and Shopping.com. ecwid.com

fortune3 — An all-in-one e-commerce solution, fortune3 is a robust shopping-cart software that includes everything you need for your e-commerce business. On the e-commerce side, it offers a website builder, shopping cart, payment processing, mobile commerce, social commerce and marketing tools. On the business side, fortune3 helps you better run your business with order fulfilment, inventory management and shipping tools. fortune3.com

GoDaddy Online Store — Like its registration service, the GoDaddy Online Store software is all about simplicity and ease of use. This DIY website and online store builder gives you professionally designed themes and built-in payment processing, so you don’t have to worry about the tech side of owning an e-commerce business. It’s also backed by GoDaddy’s award-winning 24/7 customer support. godaddy.com/ecommerce/online-store.aspx

King Cart — King Cart offers two types of shopping carts: a completely customizable e-cart system and a turnkey e-commerce software that lets you get started instantly. It’s also a super affordable solution for small businesses, as there are no application or setup fees, gateway fees, bank fees, statement fees, monthly minimums, cancellation fees or long-term commitments. king-cart.com

LemonStand — If your online store is outgrowing e-commerce software that’s built for startups, check out LemonStand. Tailor-made for growing businesses, LemonStand is a cloud-based e-commerce platform for online stores that make more than six figures per year in sales. The software also aims to help you sell quickly and simply, so you can sell more while being better able to manage your growing business. lemonstand.com

*Magento — Get a completely customizable online store that works for your business. This open-source e-commerce software can be used as-is out of the box, or you can change everything from how your online store looks to how it functions in a way that best works for your brand and operations. Some technical skills may be necessary. https://magento.com/

Modular Merchant — From shipped products to digital goods and subscription services, Modular Merchant makes it easy to sell shippable items, downloads and services with recurring billing. It’s also an affordable e-commerce solution that includes free shopping-cart templates and free customer support. modularmerchant.com

osCommerce — A runner-up on our top picks of best e-commerce software, osCommerce lets you build a secure, self-hosted online store for free. One of the most widely customizable e-commerce software products, osCommerce is an open-source solution that also offers more than 7,000 free add-ons, so you get total control over how your online store looks and works. The company has been around for 14 years, making it one of the most reputable e-commerce solutions for small business. oscommerce.com

PayPal — Simplify your e-commerce business, and use your PayPal account. If you already have a website, PayPal’s shopping-cart solution lets you add Buy buttons, product images and complete shopping carts. The company has also partnered with Yahoo Stores to provide a comprehensive e-commerce solution for your business. paypal.com/webapps/mpp/shopping-cart

Pinnacle Cart — Is your business focused on growth? Even if you’re just starting out, it never hurts to plan ahead. What makes the Pinnacle Cart e-commerce software stand out is that it focuses on scalability, so it grows as your business grows. This takes away the hassle of having to switch e-commerce software once your business expands, and makes it easy to stay on your growth trajectory. pinnaclecart.com

PrestaShop — Create a free online store quickly and easily. Just download the software or use the cloud version; upload your product catalog; add your desired features; and start selling immediately. This open-source software is also backed by a community of more than 700,000 users, as well as offers training opportunities and expert support, so you’re sure to find help when you need it. prestashop.com

ProductCart — Established in 2002, ProductCart offers a designer-friendly shopping-cart software that’s completely customizable to fit your business’s needs. There are no design limitations, and you can change everything using HTML5 or CSS3 Web languages. It also includes responsive design for mobile devices and different browsers, allowing you to optimize your store for all types of customers. productcart.com

*Selz — Sell e-books, software, video streams, music, PDF files and other digital products with our top pick for the best e-commerce software for digital downloads. Just set up your storefront, and Selz automates everything from order processing to download distribution, so you can focus on growing your business. https://selz.com/

*Shopify — Our top pick for the best e-commerce software for business is Shopify, which lets you create an online store quickly and easily. The full-featured e-commerce software includes an online storefront, payment processing, Web hosting, a website builder, marketing and analytics tools, third-party integration and more. https://www.shopify.in

Shoppable — Want to monetize your blog or website? Shoppable connects you with retailers so you can sell their products on your self-hosted website. Included in the service is a multiretailer checkout system, so you only need to install one shopping cart that lets customers purchase from multiple retailers featured in your store. shoppable.com

Shopping Cart Elite — If you need a sophisticated e-commerce software, check out Shopping Cart Elite. In addition to an online storefront, website builder and merchant tools, Shopping Cart Elite offers a wide range of advanced backend capabilities, such as ERP and CRM integration, warehousing solutions, shipping tools, B2B opportunities and automation to take the leg work out of running your e-commerce business. shoppingcartelite.com

ShopSite — Need an online store fast? ShopSite lets you launch your e-commerce website in just 15 minutes. Your store can be hosted anywhere and includes a shopping cart, payment gateway and mobile commerce functionality. ShopSite also lets you sell anywhere on the Web with a Facebook store and the ability to add order buttons on emails, newsletters, blog posts, affiliate websites and more. shopsite.com

SIDE-Commerce — SIDE-Commerce offers an affordable, all-in-one B2C and B2B e-commerce solution without the headache of complicated infrastructures. The platform comes complete with features like responsive web design, secure shopping cart, robust analytics and a native CMS. Marketing tools include discount and coupon codes, social commerce, trigger/event-based emails and abandoned-cart recovery. SIDE-Commerce also integrates with leading marketplaces like Google Shopping and Amazon, as well as popular payment gateways, ad networks, affiliate programs and other services to help you meet your revenue and business goals. sidecommerce.com

Spark Pay — Build a professional online store complete with a custom shopping cart, payment processing, merchant tools, mobile commerce, social media capabilities, email marketing and more. Services include a storefront with custom Web design, free responsive themes and custom HTML/CSS; third party app integration; marketing and SEO; shipping tools; and the ability to run multiple online stores. Spark Pay is a Capital One company. sparkpay.com

Spree — Save time while fulfilling orders. Spree e-commerce software goes beyond letting you sell online. What makes it stand out is that it can automate your order fulfillment process. Just connect your storefront to Spree’s Wombat service, integrate solutions you already use and watch your business grow. Spree is also completely scalable, allowing you to add additional suppliers, shippers and other vendors as your business expands. spreecommerce.com

Squarespace — Use the popular Squarespace website builder for your e-commerce business. It offers the same features of regular Squarespace websites, such as Web hosting, professional and customizable templates, domain names, social sharing, SEO, analytics and 24/7 support. Moreover, Squarespace online stores include inventory management, order processing, marketing tools and PCI-compliant payment processing. squarespace.com/tour/ecommerce-website

Volusion — A very close runner-up for our pick for the best shopping-cart software for small business, Volusion offers an easy-to-use, robust, all-in-one solution that lets any business quickly sell online. Whether you’re just starting out or you have a growing business, Volusion offers beautiful website designs and shopping-cart themes that require no coding or tech skills to get started. Plans also include hosting, merchant tools and order management capabilities, so you have everything you need to grow your e-commerce business in one place. volusion.com

*WooCommerce — Build your e-commerce business on WordPress, or add an online store to your existing self-hosted WordPress website or blog. WooCommerce provides you with a shopping cart, payment processing, back-end integration, online store management tools and more. Like WordPress, WooCommerce can be customized with different themes, extensions and plugins, giving you limitless options for your online store. https://woocommerce.com

X-Cart — X-Cart is all about making e-commerce as easy to use, maintain and modify as possible. With this open-source, full-featured e-commerce solution, you can choose from a vast collection of design templates, and then customize it to fit your business’s needs. Unlike other e-commerce software products, X-Cart doesn’t require any setup, monthly or add-on fees — just pay a one-time licensing fee, and the software is yours to use as you please. x-cart.com

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