How Does E-commerce Software Work for Your Online Store?

The eCommerce Software market is anticipated to witness notable growth in this year, with projected revenue of US$8.04bn in 2024. Not only this, this growth is expected to continue with a compound annual growth rate (CAGR) of 3.87% between 2024 and 2029, resulting in a market volume of US$9.72bn by 2029.

Now why we are giving you all this data, to get the answer you have to read further.

As a retail merchant have you ever wondered what happens inside an online store after you click “Add to Cart” or how your competitors are shipping thousands of products on a daily basis to your prospective customers? The thing all it happens through a robust e-commerce system that is like a bustling city where every system is interconnected. At the centre of this activity lies e-commerce software, managing inventory, processing payments, collecting data, and even predicting customer preferences. It’s the traffic controller ensuring orders reach their destinations and businesses grow steadily

See, you have to meet your customers in the right place with the right message, and at the right time to increase your sales, and as you know today’s customers increasingly want to connect and shop online. And for this only choosing the right e-commerce software can help you accomplish your online business goals. And that’s what we are going to cover today.

What Is eCommerce Software?

E-commerce software encloses all the tools and functionalities you utilize to build an e-commerce website, create and manage product listings, and transact with customers on your online product conversions, and sales. In fact, revenue from these channels (like your website, social commerce, and retail apps) often depends on the flexibility, scalability, and overall performance of your e-commerce software.

An e-commerce platform is not the core technology that enables businesses to operate e-commerce stores but also some of the strategies you are implementing to enhance your visibility and sales. It functions as an integrated hub for managing everything from product displays and inventory to payment processing and order fulfillment, ensuring smooth online sales operations.

What Do eCommerce Platforms Do?

For Sellers:

• Storefront Management: Customize designs and showcase products attractively.
• Inventory Control: Organize and monitor product details, pricing, and stock levels.
• Order Fulfillment: Handle orders seamlessly from purchase to delivery.
• Payment Processing: Securely accept diverse payment methods.
• Analytics & Marketing: Boost visibility, track performance, and refine strategies.
• CRM Tools: Build and maintain strong customer relationships.

For Customers:

• Product Discovery: Easy navigation with filters and search options.
• Detailed Information: Access specifications, reviews, and visuals for informed buying.
• Smooth Checkout: Enjoy secure, hassle-free purchases.
• Account Features: Manage orders and preferences through user accounts.

Types of eCommerce Platforms

1. SaaS (Software as a Service) eCommerce Platforms

Firstly, SaaS e-commerce is hosted in the cloud which means that it doesn’t require much effort to upgrade. You can keep your existing settings, and there’s no need to reconfigure your entire web store after each upgrade.

You can do all this for a convenient monthly fee which simply means that they are subscription-based highly feasible, cost-effective and performance-driven. Moreover, such platforms also eliminate the requirement to have technical know-how as they are regularly updated by the provider to ensure optimal performance and security. Ideal for those seeking simplicity with powerful features, SaaS solutions streamline the online selling process without the hassle of manual updates.

Notable Examples: Shopify, BigCommerce, Adobe Commerce Cloud.

2. Open Source eCommerce Platforms

Open-source e-commerce platforms are free-to-use software, plus these platforms are flexible and customizable, and give you complete control over your online store; however, these platforms require technical expertise to maintain and modify. Businesses can tailor their stores to unique requirements without being tied to a subscription model. However, ongoing maintenance and hosting costs should be considered.

Notable Examples: WooCommerce (for WordPress), Magento (Adobe Commerce), PrestaShop.

3. B2B eCommerce Platforms

As the name suggests, such platforms are created for b2b businesses, supporting bulk orders, custom catalogs, and personalized pricing. They often integrate with enterprise systems and provide account management tools for seamless interactions between businesses. B2B platforms also feature self-service portals for order placements and account management, making them highly efficient for corporate sales.

Notable Examples: OroCommerce, Handshake, Shopify Plus.

4. Headless eCommerce Platforms

Basically, in a headless architecture, the front end, also known as the “head,” is responsible for generating and portraying the user interface (UI), while the back end, or the “body,” focuses on organizing and managing data & business processes. Also, in this, the front-end presentation layer of an application is detached from the back-end content management system (CMS).

Now this type of technology enables developers to create highly customized shopping experiences optimized for various devices, such as websites, apps, and voice assistants. Moreover, in this, data is exchanged through APIs, allowing for flexibility in design while maintaining robust functionality.

Notable Examples: Commercetools, Elastic Path, Shopify Headless Commerce (Shopify Plus).

How Does eCommerce Software Work?

1. Setting Up the Store: The first and foremost step for any e-commerce software is to set up the foundation of your store. The initial step of having an eCommerce store is to set up the website with the help of a SaaS provider, custom development outsourcing agencies, or by signing up on eCommerce software/platforms such as Shopify, Magneto, and BigCommerce. It means, the brand logo, name, and products have been decided, also you have to wisely choose the e-commerce store or e-commerce software development provider because it is as important as the e-commerce software itself.
2. Product Management: Now either you as a merchant or your chosen development team can efficiently build and maintain product catalogues, complete with detailed descriptions, pricing, high-quality images, and inventory tracking.
3. Payment Processing: Then the most important process is handling payments, which is carried out via the listed payment methods such as debit cards, credit cards, Payoneer, PayPal, etc. The platform with integrated payment methods will ensure that payment is processed securely and that the funds are transferred to the business’s account.
4. Shipping and Handling: Every shopper expects different shipping options that cater to their choices. The e-commerce platform can integrate with shipping carriers like UPS, DHL, and FedEx to handle shipping that will offer different options and features. This includes generating shipping labels, tracking packages, and providing estimated delivery dates to customers.
5. Customer Management: E-commerce platforms provide businesses with tools to manage their customer base. This includes tracking customer information, providing customer support, and managing returns and exchanges. In case of any issues with delivery, the platform also provides an option for Customer Support chat service for the customers.

Why Is eCommerce Software Essential for Your Business?

Launch Your Online Presence with Ease: We can all see how most of us are purchasing products online, which is only possible through e-commerce software, as starting an e-commerce store becomes simple with pre-designed templates and features, saving time while crafting a professional site that showcases your products and services.

Enhance Efficiency: Today we are living in the age of AI, where most of the tasks are either automated or given in the hands of AI, now all this is helping merchants with integrated systems, businesses can manage inventory, track sales, process payments, and handle shipping seamlessly which ultimately reduces manual effort and minimizes errors, boosting operational efficiency.

Drive Higher Revenue: An online presence connects businesses with a broader audience, increasing the likelihood of sales. By providing customers with a convenient shopping experience, businesses can attract more buyers and secure repeat customers.

Expand Your Audience: eCommerce platforms allow businesses to attract not only their target market but also peripheral customers. Marketing integrations such as CRM systems provide insights into customer behaviour, enabling targeted strategies.

Save Resources: eCommerce tools consolidate multiple processes into one platform, saving time and operational costs. Inventory management, shipping coordination, and automated sales tracking help streamline workflows.

Increase Payment Options: Businesses can accept various payment methods with competitive processing rates, ensuring flexibility for customers and increasing sales potential.

Wrapping Up 

In conclusion, choosing the right e-commerce software is not a choice, but rather a necessity if you want that your online business grow properly without any challenges and hindrances. Moreover, for this you have to consider all the essential elements like security, SEO capabilities, responsiveness, scalability, and omnichannel marketing. So that your chosen e-commerce platform simplifies store setup, streamlines operations, boosts efficiency, and provides a seamless shopping experience for customers.