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: the benefits, different types, and how to use it effectively.

• How to define ecommerce software
• Eight types of ecommerce software solutions
• Benefits of using ecommerce software
• How to choose the best ecommerce software for your business
• Tips for using ecommerce software effectively
• How has ecommerce software changed — and what’s next?
• Best ecommerce platforms of 2024

Ecommerce software encompasses all the tools you use 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.

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 create more personalized marketing and shopping experiences. You can also take advantage of sophisticated reporting and analytics tools to identify trends and sales opportunities.

There are various different types of ecommerce software solutions, and each caters to different business needs.

1. Shopping Cart Software: This is the heart of your online store. It’s what allows customers to add items to their virtual shopping cart, calculate taxes and shipping costs, and securely process payments.
2. Payment 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, Apple Pay, and installment payments.
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 omni-channel capabilities.
4. Order Management Software: This technology helps you simplify the order fulfillment process. It’s a platform for managing orders, inventory visibility, payments and invoicing, shipping details, and updates to customers' order status.
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.
6. Marketing and Analytics Software: These tools help you uncover customer behavior patterns and fine-tune your marketing strategies. Marketing software monitors website traffic, scrutinizes customer data, and delivers key metrics for strategic decisions.
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.
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.

By strategically selecting your ecommerce software, you can establish a seamless and efficient ecommerce experience for your customers, 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.

Automation is also a significant growth advantage of ecommerce platforms. By automating various business operations such as inventory management, order fulfillment, 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. 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.

And, of course, you will need to consider your budget. Since ecommerce software capabilities vary, so do their price tags. Establish your goals and budget early to help narrow your options and ensure you make a financially sound decision. Once you have a shortlist of possible vendors, inquire 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 determine any ongoing costs.

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. Finally, 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.

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

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 storefront technology, it’s important to keep product data up to date and accurate with high-quality images, detailed descriptions, and clear pricing.

Optimize your site for speed: Follow best practices when it comes to image sizing, code optimization, third-party integrations, and plug-ins. These are typically the culprits behind slow loading storefronts 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 optimize, 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 offline 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 shipping providers. As technology, customer behaviors, 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 customized storefronts 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 revolutionized by the capabilities of artificial intelligence (AI) and machine learning (ML). These technologies empower businesses to offer personalized customer experiences, improve product recommendations, detect fraud, and enhance demand forecasting. AI-driven chatbots and virtual assistants are capable of providing real-time, personalized customer support, while ML algorithms analyze customer behavior to deliver tailored product suggestions, thus optimizing 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 stores, and social media. Omnichannel ecommerce software helps businesses deliver a consistent brand experience, synchronized 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 optimization, AI-powered website builders, extensive customization options, and omnichannel selling capabilities. Unlock new growth opportunities, enhance customer experiences, and stay ahead in the rapidly evolving world of ecommerce.