What is Ecommerce Software?

Whether you run a small online shop or an enterprise business, ecommerce software is table stakes for companies of all sizes, in any industry. Ecommerce software offers the potential to reach a global audience and deliver convenient, easy, and memorable shopping experiences, which are essential for staying competitive. Ecommerce software is the engine that makes online shopping possible; it offers various tools and features to help businesses streamline operations, enhance customer engagement, and increase revenue.

Here’s everything you need to know about ecommerce software, different types of ecommerce software and some key considerations if you’re changing systems or rolling out a new ecommerce solution.

• What is ecommerce software?
• How does ecommerce software work?
• Types of ecommerce software solutions
• Benefits of using ecommerce software
• How much does an ecommerce software cost?
• What is a SaaS ecommerce platform?
• How to make ecommerce software work for you
• How has ecommerce software changed — and what’s next?
• Best ecommerce Platforms of 2025

Ecommerce software is a type of application that enables businesses to conduct online transactions, manage their online stores, and handle various aspects of digital commerce. It provides the tools and infrastructure needed to create and run a seamless online shopping experience.

Ecommerce software is a collection of tools and systems that help retailers run their online shops Whether this online business takes place between two businesses (B2B) or between businesses and consumers (B2C), ecommerce software offers various tools and features to help businesses streamline operations, enhance customer engagement, and increase revenue. Whether you run a small online shop or an enterprise business, ecommerce software is for companies of all sizes, in any industry. It includes everything needed to operate an online store smoothly, including managing inventory, adding or removing products, processing payments, calculating taxes, and fulfilling orders.

Ecommerce software encompasses all the tools you need to build an ecommerce website, create and manage product listings, and transact with customers on your digital sales channels. 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 ecommerce software. This software defines how you merchandise your products online, accept and process payments, keep track of inventory, and more.

This type of software combines all the complex aspects of running an online store into one user-friendly platform. Thanks to intuitive interfaces and features, even those with minimal technical skills can generally use ecommerce software effectively.

Alongside making management possible, one key objective of e-commerce software is enhancing the customer experience. It ensures that customers can easily find products, add them to their carts, and complete their purchases straightforwardly.

Thanks to intuitive interfaces and features, even those with minimal technical skills can generally use ecommerce software effectively, combining all the complex aspects of running an online store on a single, user-friendly platform.

Additionally, ecommerce software can connect with other platforms and services such as CRM (Customer Relationship Management) solutions, CMS (Content Management Systems), ERP (Enterprise Resource Planning) solutions, payment gateways, email marketing tools, accounting software, fulfillment services, and social media networks.

Ecommerce software offers the potential to reach a global audience and deliver convenient, easy, and memorable shopping experiences, which are essential for staying competitive and ensuring sustained growth.

Some ecommerce software platforms offer more robust, advanced features that amplify your online presence and customer engagement. These tools will aid with customer relationship management (CRM) and data intelligence to give you a better understanding of your customers and their needs. In turn, these insights help you to create more personalised marketing and shopping experiences. You can also take advantage of sophisticated reporting and analytical tools to identify trends and sales opportunities.

It may come as no surprise that there are many types of ecommerce software, built to facilitate different types of transactions and stores. You may initially imagine a solution that serves business-to-consumer sales with a desktop site and mobile app – the type a fashion or homeware brand may use. However, there are also solutions facilitating bidding, business-to-business transactions, social media integrations and more.

Before diving into specific ecommerce tools and functionalities, let’s look at the broader categories of ecommerce software that shape how businesses sell, operate, and engage customers.

• Ecommerce websites
• Auctions
• CX and ecommerce suites
• Point of sales
• Mobile applications
• Shopping carts
• Marketplaces
• PIM systems
• Inventory management systems

Now, let’s take a closer look at some of the key tools businesses in India use to run their daily ecommerce operations efficiently:

1. Online storefront software:
   Serving as the foundation of an online store, Digital Storefronts allow businesses to showcase their products or services to customers in addition to offering integrated capabilities like personalised recommendations, add items to their virtual shopping cart, calculate taxes and shipping costs, and securely process payments. Designed to deliver a seamless shopping experience across devices and integrate with backend systems for inventory, customer data, and promotions, Salesforce Commerce Cloud supports modern, AI-powered storefronts and seamless customer experiences across every touchpoint.
   
   Read: Salesforce unveils Agentforce for retail to boost productivity with digital labour and retail cloud to unite in-store and digital shopping
2. Payments processing software:
   This is a must-have for any ecommerce business. It securely manages online payments and ensures smooth, reliable transactions. This software makes it possible for your business to accept a variety of payment methods, including credit cards, Unified Payments Interface (UPI), Apple Pay, and instalment payments. It also provides features like fraud detection, PCI compliance, and currency conversion to support global transactions.
   
   Salesforce Payments, integrated directly within Commerce Cloud, simplifies online payment processing while offering fraud protection and support for multiple payment options.
3. Inventory Management Software:
   This software helps you monitor stock levels so you always have items available when customers want to purchase them. Inventory management software should offer real-time updates on product quantities, automate reordering processes, and offer omnichannel capabilities. It supports accurate forecasting, reduces overstocking, and enables seamless coordination across warehouses, fulfilment centres, and sales channels with inventory visibility tools that can integrate across commerce, service, and fulfilment systems.
4. Order Management Software:
   This technology helps you simplify the order fulfilment process. It’s a platform for managing orders, inventory visibility, payments and invoicing, shipping details, and updates to customers' order status. A unified order management system ensures operational efficiency and enables timely fulfilment, even when dealing with high-volume, multi-location, or cross-border transactions.
   Salesforce Order Management provides end-to-end visibility and automation to streamline fulfilment and post-purchase experiences.
5. Shipping and Fulfillment Software:
   Shipping software efficiently manages the back end of product delivery. It integrates with carriers, automates shipping processes, and provides real-time tracking information for you and your customers. Advanced shipping software will also help you optimise delivery routes, offer multi-carrier rate comparisons, and support returns management, helping businesses deliver on their promise of fast and reliable delivery.
   For example, Salesforce Order Management integrates with your fulfilment partners and shipping APIs to provide transparent tracking and delivery updates.
   Cut costs and drive efficient growth with Order Management on the #1 CRM Discover Order Management
6. Marketing and Analytics Software:
   These tools help you uncover customer behaviour patterns and fine-tune your marketing strategies. Marketing software monitors website traffic, scrutinises customer data, and delivers key metrics for strategic decisions. When combined with automation and AI, these platforms also enable targeted campaigns, predictive analytics, and personalised content across channels such as email, social media, and SMS.
   For instance, with Salesforce Marketing Cloud Personalisation working seamlessly with Commerce Cloud, you can create and deliver AI-driven campaigns and insights based on real-time customer data.
7. Customer Relationship Management (CRM) Software:
   CRM software consolidates data about customer interactions no matter where they occur, manages contact information, and helps you stay connected to current and potential customers. CRM is a tool that allows you to translate all the details and data you collect about your customers into useful business information. It supports personalisation, customer service, loyalty programmes, and enables sales and service teams to deliver consistent, customer-centric experiences.
   Salesforce CRM :The backbone of connected commerce, enabling unified customer profiles and journeys across touchpoints.
   Explore more
8. Enterprise Resource Planning (ERP) Software:
   This is a comprehensive solution for managing all aspects of your business. ERP software integrates various business functions into a single platform, including finance, inventory, manufacturing, and customer relationship management.It helps streamline operations, reduces manual processes, and provides real-time insights across departments, helping ecommerce businesses scale efficiently.
   Salesforce Commerce Cloud integrates easily with leading ERP systems, ensuring synchronised operations and real-time visibility.
9. Mobile Commerce (mCommerce) Tools:
   With mobile shopping on the rise, mCommerce tools ensure your store is optimised for smartphones and tablets. These tools support responsive design, mobile wallets, app integration, and push notifications to enhance user engagement. A mobile-first strategy is critical for capturing customers on the go and delivering a frictionless mobile checkout experience.
10. Security and Compliance Tools:
    Security software protects sensitive customer data and ensures your ecommerce store adheres to legal and industry standards. Key features include SSL encryption, two-factor authentication, GDPR and PCI DSS compliance, and threat detection. Investing in reliable enterprise-grade security tools helps build trust and ensures your business is resilient against cyber threats.
    
11. Integration and Automation Tools:
    These tools connect your ecommerce platform with other business systems to streamline workflows and reduce manual tasks. From synchronising data between your store, ERP, CRM, and shipping platforms to automating email campaigns and order confirmations, integration tools ensure your business runs smoothly and scales effectively.

Give your online business the competitive edgeWith low-code integration and automation across all Commerce Cloud and third-party systems.

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By strategically selecting your ecommerce software, you can establish a seamless and efficient ecommerce experience for your customers while increasing sales and improving customer satisfaction.

Without ecommerce software, you’d have to run your business manually. That means spreadsheets and tedious, time-consuming tasks instead of automated, real-time processes. Ecommerce platforms make it much easier and more efficient to operate your business. Another key benefit? Ecommerce software allows you to reach customers anytime, anywhere. It makes it possible to sell to customers around the globe and exponentially increase your earning potential. Additionally, it can be integrated with various third-party apps and services, allowing you to look after additional tasks from a single interface.

Automation is also a significant growth advantage of ecommerce platforms. By automating various business operations such as inventory management, order fulfilment, customer service, and more, you can allocate more time and resources to other critical areas of your business. Ultimately, this fosters innovation and helps you achieve more strategic goals.

Another key benefit is that ecommerce software helps you collect data and make better business decisions as a result. For example, ecommerce platforms can help you identify patterns and trends in shopper behavior, product sales, and more. You can then use these insights to inform your merchandising, marketing, and pricing strategies. Ecommerce platforms also enhance customer service by providing tools that help support teams respond promptly to inquiries, resolve issues effectively, and build strong, enduring customer relationships.

From customer acquisition to automation, data, and service, ecommerce software enhances the entire customer journey and makes it easier to convert, sell, and engage with shoppers online.

The ecommerce software solutions you choose for your business will have a big impact on your success. Software decisions shouldn’t be taken lightly and there are a few key considerations when it comes to making these choices. While choosing ecommerce software might seem challenging, there are some strategies to simplify the process. First, it’s crucial to assess your business needs and goals for the future and identify specific features required. For example, if you sell internationally (or if you plan to in the future), you will need a platform, order management system, and payment provider that can handle duties, customs, and tax compliance.

Next, compare features offered by different ecommerce software vendors. Look for product management capabilities, payment processing options, shipping integrations, and out-of-the-box marketing tools. Some platforms offer advanced features like customer relationship management, inventory management systems, and analytics. Choose software that aligns with your business goals and growth plans. You can also read customer reviews for ecommerce software on sites like G2 or browse digital commerce industry analyst reports. These resources provide valuable insights into the strengths and weaknesses of each option so you can make a more informed decision.

Scalability is another key consideration when selecting ecommerce software. As your business expands, your software should be able to handle increased traffic, a growing product catalog, and more complex customer needs. Choose a scalable solution that can grow with your business without sacrificing performance or requiring frequent upgrades.

And of course, examine the level of customer support offered by different software vendors. Dependable support is critical to swiftly resolve any technical issues or questions that arise. Opt for a provider that delivers responsive and knowledgeable support.

Finally, you will need to consider your budget. Since ecommerce software capabilities vary, so do their price tags.

These guidelines and considerations will help you assess your choices so you can pinpoint the best ecommerce software for your business.

Some ecommerce platforms offer subscription-based models while some are commission-based. Open platforms may be free to use but can require payments for additional plug-ins. Larger businesses opting for custom-built platforms will be expensive as they require streamlined maintenance and development.

Establish your goals and budget early to help narrow your options and ensure that you make a financially sound decision. Once you have a shortlist of possible vendors, enquire with each to determine whether you will have ongoing support for maintenance and how frequently their solutions are updated with new innovations. This will help you to determine any ongoing costs.

By selecting the ecommerce software that best meets your company’s needs, you can maximise its potential, increase your customer base, boost sales, enhance brand recognition, and generate more profit. Salesforce Commerce Cloud is a leading SaaS platform that offers AI-driven and powerful commerce functionality.

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A SaaS (Software-as-a-Service) ecommerce platform allows a brand to manage their online store. With SaaS, the technology provider offers software over cloud infrastructure, handling updates, security patches, and new features automatically or with simple integrations. However, your company operates the software independently, keeping complete control over its online store management. This means you still manage your store but don’t need to worry about maintaining software or servers – everything technical is managed for you.

Benefits of SaaS ecommerce platforms

Always up-to-date
One of the biggest advantages of SaaS ecommerce platforms is that you’re always updated with the latest software version. Typically, ecommerce platforms regularly introduce new features to help you grow your online business, and with SaaS, you get access to these updates as soon as they are released.

Affordable subscription models
SaaS ecommerce solutions are typically offered monthly. This makes them more cost-effective than traditional ecommerce platforms, which may require a costly up-front purchase and rollout.

Simplified maintenance
When the provider hosts your SaaS ecommerce platform, they handle all the maintenance, including hosting, performance, and security. Updates and upgrades happen automatically, making it much easier to manage. For example, with Commerce Cloud, the provider manages security, upgrades, hosting and backups, and monitors website traffic, saving your business valuable time and resources.

Customer and order management
Ecommerce platforms assist customers in managing their orders, checking order status, and making necessary modifications. For instance, with some providers, chatbots can send order status updates via WhatsApp, SMS or email, ensuring customers always know where their orders are.

These platforms also handle payment processing, maintain transaction records, manage customer data, generate bills and invoices, aid with accounting, provide analytics and reports, and much more.

Product and inventory administration
Your ecommerce solution can pull detailed product information, from SKUs and variations (size, colour, and quantity) to names and images, facilitating product organisation and cataloguing. It assists with inventory management and alerts you when stock levels are low, ensuring you can reorder promptly, which is especially useful for fast-selling items.

Success isn’t just about having the right ecommerce software — you also need to make sure you’re using the technology to its full potential. Here’s how to get the most out of your technology:

Train teams on any new tools: What good is the best ecommerce software if your teams don’t know how to use it? When you implement new tools, consider how they will affect the workflows and day-to-day operations of your employees. It’s best to determine a change management strategy before you introduce new software and plainly discuss how these tools will help each team member be more productive and efficient.

Keep content updated: To get the most out of your digital shop front technology, it’s important to keep product data up to date and accurate with high-quality images, detailed descriptions and clear pricing.

Optimise your site for speed: Follow best practices when it comes to image sizing, code optimisation, third-party integrations and plug-ins. These are typically the culprits behind slow loading shop fronts that cause customers to leave your site and shop with competitors.

Stay up to date with security measures: Security and data privacy should be a joint effort between you and your ecommerce partners. It’s important to use version control for monitoring code changes, authenticate anyone accessing APIs and encrypt data transmissions. This ensures that your ecommerce experiences run safely and smoothly.

Use analytics and reporting tools: Set it and forget it strategies don’t work when it comes to ecommerce. Successful businesses use data to guide how they optimise, iterate and innovate. Use data and analytics tools to identify where you need to make improvements to your customer experience.

The role of ecommerce software has changed a lot over the years. What started as a set of basic tools to help businesses sell products online in the 1990’s has evolved into a set of powerful solutions that help businesses manage every aspect of their online and off-line operations.

The first ecommerce platforms made it possible for businesses to move beyond the traditional brick-and-mortar store and begin selling products to customers in different locations. As online marketplaces gained popularity with consumers, new markets were born (such as digital marketing and advertising).

The initial ecommerce software solutions were basic, simply enabling businesses to display products online and process orders. But as the potential and popularity grew, so did the technology. Ecommerce software soon included more features and capabilities, such as user-friendly interfaces, enhanced security and the ability to integrate with various payment gateways and delivering providers. As technology, customer behaviours and the ecommerce market continue to evolve, new trends emerge. Here are some of the key ecommerce trends that are shaping the future of ecommerce software:

Headless commerce: This approach to ecommerce software offers enhanced flexibility and control over the customer experience. Headless commerce is a model that empowers businesses to create fully customised shop fronts and seamlessly integrate them with a range of different touchpoints, such as social channels, mobile apps and websites.

AI and machine learning: Ecommerce is being revolutionised by the capabilities of artificial intelligence (AI) and machine learning (ML). These technologies empower businesses to offer personalised customer experiences, improve product recommendations, detect fraud and enhance demand forecasting. AI-driven chatbots and virtual assistants are capable of providing real-time, personalised customer support, while ML algorithms analyse customer behaviour to deliver tailored product suggestions, thus optimising the shopping experience.

Omnichannel strategies: Customers expect a cohesive shopping experience no matter where they engage with your brand, from websites to mobile apps, physical shops and social media. Omnichannel ecommerce software helps businesses deliver a consistent brand experience, synchronised inventory management and unified customer data across all points of contact. This comprehensive approach boosts customer engagement, loyalty and conversions.

Conversational commerce: Generative AI is already changing the way people shop. More and more consumers expect to be able to ask voice assistants for help, have increasingly complex conversations with chatbots and perform site searches using images and natural language. These kinds of shopping experiences are known as conversational commerce and it’s all made possible by generative AI tools for ecommerce.

Social commerce: By integrating social media features, businesses can harness user-generated content and social proof to foster trust and drive conversions. Amplify brand reach and customer engagement through influencer partnerships and social selling strategies.

In light of new trends and technology, it’s important to choose software solutions that can keep up with the fast pace of ecommerce. According to multiple analyst reports, Salesforce Commerce Cloud is a leading platform and stands out as a premier choice when it comes to ecommerce software. Commerce Cloud offers a comprehensive suite of features, including mobile optimisation, AI-powered website builders, extensive customisation options, and omnichannel selling capabilities. Unlock new growth opportunities, enhance customer experiences, and stay ahead in the rapidly evolving world of ecommerce.