You've learned a lot about what goes into creating an e-commerce store. Now, you're going to learn more about the platform that an e-commerce store is built on. There's a large number of e-commerce platforms available to use. Some of the most common platforms include Wix, Shopify, BigCommerce, Squarespace, WooCommerce, and Magento. One of the basic differences between platforms is whether they use software that's open-source or SaaS, which stands for Software-as-a-Service. Let's discuss each of these in more detail. Open-source software allows the user to access and edit the original source code. That means that a company can customize their e-commerce website in any way they choose. WooCommerce and Magento are two examples of open-source platforms. Let's use an analogy to make this easier to understand. Imagine a brick-and-mortar store in a building that's fully owned by the retailer. The retailer can completely remodel the store building if they choose, similar to an open-source platform that allows for full customization. With an open-source platform, the company has complete control over how their e-commerce store appears and functions, but they also need to know how to make those changes within the code or to be able to hire someone with web development expertise. Next, let's cover SaaS, which describes a web-based software available on a subscription basis. The user must purchase a subscription in order to use it. A SaaS e-commerce platform allows for a certain amount of customization, but it doesn't allow access to the source code. Most SaaS e-commerce platforms offer different plans a company can choose from based on their size, budget, and the level of support that they need. Shopify and BigCommerce are two examples of SaaS platforms. In the analogy we used earlier, a SaaS platform would be similar to a brick-and-mortar store that leases its retail space. The landlord is the one who is responsible for maintaining the building. The tenant may be able to make a certain amount of changes to the building, but any changes need to be within the limits of what the landlord will allow. Now that you understand the difference between open-source and SaaS platforms, let's consider the advantages and disadvantages of each. First, let's cover open-source platforms. The biggest advantage of an open-source platform is that it gives the company complete control over the design and functionality of their e-commerce store. Being able to make changes to the functionality, or the technical features and capabilities available on the website, allows a company unlimited access to improve the customer experience. The options for customization are endless. One of the disadvantages, however, is that the company needs to have the coding and technical skills necessary to create and maintain their e-commerce store. They'll also need to pay separately for a web hosting service, which is a service that enables a company to publish its website on the internet. Although the open-source platform may be free or low cost on its own, the company needs to consider additional costs involved, such as web hosting, web design, web development, security, and IT maintenance. Now let's consider the advantages and disadvantages of SaaS platforms. The biggest advantage is that it's an all-in-one solution that provides hosting, security, and customer service. SaaS platforms offer built-in templates and user-friendly software that allows a company to launch their store quickly, even without coding skills. While some SaaS platforms allow more customization than others, all of them have limits to how much customization is possible, and advanced customization may require coding skills. That's one disadvantage. Another, is that the platform may only integrate with certain third-party apps or shopping channels. It may also only allow certain payment methods. Plus, there may be additional fees for some features within the platform. Now that we've covered the advantages and disadvantages of both open-source and SaaS platforms, let's discuss a few more important things to consider that apply to all types of platforms. One thing to consider is how fast the web pages load in an e-commerce store. A slow site can frustrate customers and cause them to leave. Research shows up to 90% of customers will abandon the site if it's too slow. Plus a one-second delay in mobile load times can impact conversion rates by up to 20%. Another thing to consider is how high up the store might show in search engine results. Showing up higher in the search results typically leads to more visitors, as you learned earlier. The search engine optimization, or SEO, capabilities of the platform can impact how well the store performs in online searches. Plus the SEO keywords and phrases used on the site can also make a difference. Finally, there's a difference in platforms based on how much room they allow for growth. As a company expands, the platform needs to be able to handle increased traffic, allow for a large number of products, and have more flexibility and options to meet the marketing needs of a growing company. Although it's helpful to understand the differences between e-commerce platforms, you probably won't be the one deciding on a platform for your employer. Typically the platform is already chosen by management and you'll learn how to use it on the job. Also, coding for open-source software is typically not a requirement for entry-level e-commerce positions. However, a basic knowledge of coding skills may be helpful depending on your role. As you've learned, there's a lot to consider when it comes to choosing an e-commerce platform. Now that you have a better understanding of how e-commerce platforms work, you're ready to go more in-depth with a very popular SaaS platform, Shopify. Meet you soon.
