What Is an Ecommerce Platform? The Tech that Powers Online Shopping

Every online purchase is powered by an ecommerce platform. This is the technology that makes online shopping possible. Ecommerce platforms provide tools for businesses to create and manage ecommerce websites, engage with customers, provide online customer service, and complete sales. Whether you’re an entrepreneur selling a small catalog of products or an enterprise business that completes thousands of orders per second, an ecommerce platform is a vital tool for success. Here’s how it works.

• What is an ecommerce platform?
• Main features of an e-commerce platform
• How your business type and size affect your platform requirements
• How to choose the right ecommerce platform for your business
• The future of ecommerce platforms

At its most fundamental, an ecommerce platform is a software solution that allows businesses to create and manage online stores. It enables the presentation of product catalogs, inventory management, payment processing, and customizations of a website’s front-end. The best ecommerce solutions also include tools to improve the online shopping experience for customers and make it easier for businesses to operate efficiently.

Robust, complete ecommerce platforms will include additional features that cater to the diverse needs of a business, rather than just the storefront experience. For example, these may include integrated marketing tools for targeted promotions, comprehensive analytics for data-driven decision-making, and customer relationship management (CRM) capabilities to foster meaningful customer interactions. With a wide range of features and an ecommerce platform that is connected with other backend systems of a modern business, a brand can create a cohesive, engaging online presence that drives sales and customer loyalty.

Certain features are critical to create user-friendly shopping experiences. Consider what it’s like to browse your favorite brand’s website and make a purchase: It’s likely easy to find what you want using site search and filters, the product images are accurate, and the descriptions have the right level of detail. Payment processing is smooth, convenient, and secure. All of these things add up to a pleasant shopping experience. And they are all results of thoughtfully implemented features of an ecommerce platform. Here are some of the key features that define a successful commerce solution.

Storefront technology:

If you want to convert shoppers into paying customers, your storefront needs to be inviting and intuitive. The right ecommerce platform will come with tools to make this happen, like storefront templates and technology equipped with easy navigation, clear product displays, efficient checkout processes, and responsive design for mobile users.

Content management tools:

Things change fast in commerce and you need to be able to update your site to reflect new trends, new seasons, and new business priorities. That’s why ecommerce platforms offer robust content management tools so you can showcase and update product descriptions, images, videos, and other relevant content for your brand. This allows you to customize product pages, highlight product features, and craft compelling marketing messages. Ultimately, these ecommerce platform tools help you effectively communicate your brand story, highlight your product, and get customers to buy.

Tools for customer acquisition and loyalty:

To help your business thrive, your ecommerce platform should have tools built in for customer acquisition and loyalty. This includes features like unified customer profiles, which ensure that you don’t duplicate marketing efforts and help you personalize experiences more effectively. Ecommerce platforms should also have integrations with social channels to help you market and sell products to millions of shoppers on platforms like TikTok and Instagram.

Data and analytics:

When it comes to creating stellar shopping experiences, data and analytics are critical. Ecommerce platforms should be equipped with reporting tools that illuminate website traffic, sales performance, and customer interactions. Platforms should also help you safely and securely collect customer data, such as shopper behavior on your site, product search trends, order history, and more. Gleaning insights from this data is how you gain a deeper understanding of your customers and cater to their preferences, shopping habits, and unique needs. Data intelligence and analytics tools will help inform successful strategies for customer acquisition and retention.

Shipping and fulfillment options:

Ecommerce experiences don’t end at checkout. Your ecommerce platform should come equipped with technology to handle post-purchase events, such as inventory management, order routing and status monitoring, and returns management. This allows you to integrate with various shipping carriers, manage inventory levels, and track orders in real time. These features streamline the order fulfillment process, ensure timely delivery, and enhance overall customer satisfaction.

Privacy and security:

Customer trust is the cornerstone of any successful business, and it becomes even more important as technology evolves. In fact, 68% of customers say that advances in AI make trust in companies more important. That’s why an ecommerce platform should come with built-in security features to safeguard customer data and payments. This includes features like secure payment gateways, SSL certificates, and fraud detection systems. By making security a priority, businesses can create a safe shopping environment and inspire customer confidence.

Integration with critical backend systems:

Commerce isn’t an island. There are myriad systems that allow your business to run smoothly, such as payment processing, order management systems, customer service platforms, and more. Your ecommerce platform should easily integrate with these key systems to ensure operational efficiency, a consistent user experience, better data management, and more. If your ecommerce platform doesn’t integrate seamlessly with your other critical systems, your IT and development teams will spend much more time and resources on configuration and maintenance.

These fundamental components of an ecommerce platform are the building blocks for successful online stores, stellar customer experiences, and business growth.

When you’re choosing an ecommerce platform, it’s important to consider your unique business characteristics and goals. For example, an entrepreneur selling a hundred different physical products will have different platform needs than an enterprise company that sells software solutions. These are the kinds of business aspects that should guide your ecommerce platform decision.

Physical vs. Digital Goods: Selling physical items like clothing and home furnishings is different than selling digital items like software subscriptions. If you sell physical goods, your platform should offer robust inventory management and shipping capabilities. On the other hand, businesses selling digital products can opt for platforms that prioritize content delivery and subscription management.

B2B vs. B2C: Business-to-business (B2B) transactions often involve complex pricing models, multiple stakeholders, and extensive negotiations. To address this, a B2B ecommerce platform should come equipped with a scalable, user-friendly B2B ordering portal as well as pricing, payment, and ordering customization. Business-to-consumer (B2C) platforms should focus on user experience, ease of purchase, and marketing automation.

Industry-Specific Needs: When it comes to ecommerce, most shoppers think of retail and consumer goods industries. But every business is an ecommerce business — and that includes many other sectors. Some industries (such as healthcare and finance) have stringent regulatory compliance requirements. It’s important to choose a platform that meets these industry-specific standards to ensure you’re legally compliant and to maintain customer trust.

Business size and budget: Small, mid-sized, and enterprise businesses have different needs — and often, vastly different budgets. A solo business owner who’s just getting started with a new venture might simply need an online store to display products, take orders, and collect payments. But this business owner should also consider scalability. For example, it’s important to ensure that a sudden surge in traffic and orders won’t cause any issues with site reliability. After all, what if your products go viral? You want to be able to accept and fulfill all resulting orders.

On the other hand, larger businesses often need more advanced features such as omni-channel selling, robust marketing tools, and integration capabilities. If you have an extensive product catalog, high order volumes, and complex supply chains, you’ll need robust advanced inventory management, automation, and customization capabilities to meet the demands of large-scale operations.

Understanding your business type and size will guide you in selecting an e-commerce platform that aligns with your specific needs and supports your growth aspirations. By considering these factors, you can make an informed decision and set your business on the path to e-commerce success.

Your ecommerce platform can have a major effect on the success of your business. And with so many platforms to choose from, it’s important to carefully consider which one is best for your business — now and in the future. Here are a few questions to ask as you navigate your ecommerce platform decision.

Does the platform align with your business goals and objectives? Clearly define your short-term and long-term goals. For example, if you plan on entering new markets or selling in new locations, you will want to make sure your ecommerce platform can support those endeavors with features like foreign currency acceptance and cross-border sales tax calculations and remittances. Choose a platform that can support your current needs and has the potential to grow with your business as it evolves. Consider factors such as scalability, flexibility, and the platform's ability to integrate with other systems and tools you may use.

What is the ecommerce platform’s total cost of ownership? Ecommerce platforms can have a wide range of costs, including initial setup and monthly fees, and ongoing maintenance expenses. It’s important to consider the resources you have available to manage and maintain the platform, such as technical expertise and staff capacity. Some platforms may require more technical knowledge or dedicated staff for setup and maintenance, while others are more user-friendly and require minimal technical expertise.

Will your ecommerce platform partner be responsible for uptime and maintenance? An ecommerce platform partner that takes responsibility for the uptime and maintenance of your storefront will significantly reduce the strain on your IT team. With a skillful, trusted partner, your teams won’t be left on their own to build and manage complex infrastructure — which can be costly and time-consuming. Determining this upfront will help you develop a reasonable plan for ongoing maintenance and ensure the reliability of your ecommerce site.

Will you be able to make any necessary customizations? Some platforms offer extensive options for tailoring your online store to your brand's identity, such as a range of different types of storefronts and architectures, as well as broad, best-of-breed partner networks. On the other hand, some ecommerce platforms only offer rigid templates and will only allow you to work with certain partners. By assessing your requirements and selecting a platform that enables any necessary modifications, you can ensure the best fit for your business.

Generative AI has already changed the ecommerce market in major ways. A whopping 80% of commerce leaders credit AI with moderate to major improvements in personalization, operational efficiency, employee productivity, and revenue growth. It’s clear that to stay ahead, businesses will need to thoughtfully implement AI — and ecommerce platform partners should help by innovating new ecommerce AI solutions that solve real problems and enhance the customer experience.

Along with AI, other ecommerce trends offer possible clues about where platforms and the ecommerce market are headed in the future. For example, immersive shopping experiences like augmented reality are becoming increasingly popular, as well as composable commerce. As technology advances and new trends arise, it’s important to have a trusted ecommerce platform partner to help you stay ahead of the curve and build memorable experiences for your customers.