Shopify vs. WooCommerce: Which is Best for Your Business?

Introduction

Shopify and WooCommerce are two popular eCommerce platforms nowadays. To determine which one is better, we will compare Shopify vs. WooCommerce.

Both have unique benefits and drawbacks. With this comparison, you can also decide which eCommerce platform you prefer for your online store.

About Shopify and WooCommerce

Shopify

Shopify is a store that lets you create your online store, which enables you to take payments and control stacks from one place. Furthermore, you will not have to worry about the eCommerce website’s web hosting, security, caching, and other technical aspects.

The Shopify UI is straightforward to use, so anyone can create an online store and maintain it without requiring too much technological expertise.

Everything related to eCommerce happens in the background, allowing you to concentrate on expanding your trade rather than worrying about how much bandwidth should be used for storing files.

WooCommerce

WooCommerce is a dynamic open-source eCommerce plugin made for WordPress. You can use the most excellent Content Management System (CMS) to manage an online store. WordPress is the leading website builder globally, with 43% of all websites powered by it.

Surprisingly, WooCommerce is widely regarded as the best eCommerce platform, hosting over 6.6 million users and thus exceeding Shopify’s performance globally.

The unlimited customization of WooCommerce’s open-source feature allows you to change anything about your store and incorporate particular extensions effortlessly to make it unique.

Choosing between WooCommerce or other portals such as Shopify depends on one’s individualistic requirements and technical expertise.

Cost:

Shopify

Starting an online shop has always been challenging with Shopify; they offer packages starting at $29 monthly (billed yearly). The Basic plan comprises SSL certificates, web hosting, and a custom Shopify subdomain.

You can purchase your unique domain name for around $14 per year. The Basic plan has unlimited products, two user accounts, and infinite file storage. Your company will also incur extra charges as it expands through additional third-party tools and add-ons.

On the Basic package, for every transaction made via Shopify Payments, you pay 2.9% + 30 cents, while using a third-party gateway earns you about 2% less, which goes down to 0.5% on its advanced version ($399/month).

You can also offer buy buttons on any site for only $7 monthly under the starter plans.

WooCommerce

The WooCommerce plugin for WordPress.org (self-hosted WordPress) is a free and open-source eCommerce tool. To begin a WooCommerce store, you must buy a domain name, an SSL certificate, and WordPress hosting, which will cost you about $14.99, $69.99, and $7.99 monthly, respectively.

Though it is expensive initially, some hosting companies offer unique WooCommerce plans at reduced prices. For example, if you go with Bluehost, which is among the official hosts, WordPress and WooCommerce recommend offering free domains for our users.

They provide free Secure Sockets Layer (SSL) and discounted monthly rates starting from $1.99. Unlike Shopify, which charges transaction fees, WooCommerce charges no transaction fees under any circumstances.

Many extensions are available that require payments and upgrades on hosting packages, making them more affordable. This is due to its large selection of free themes and add-ons that are freely accessible online.

Ease of Use:

Shopify

Shopify is a completely hosted platform, so there is no need to install, manage, or update software, nor do you have to worry about security, performance, backups, or compatibility.

When you sign up with Shopify, you can start using free themes that can be customized using an easy drag-and-drop interface. Managing product pages, sales, and inventories is simple.

While the user experience is greatly optimized, this would limit controls to those offered by either Shopify’s design and development tools or the available add-ons.

Nevertheless, most people can launch and expand their online stores using only the vast extensions and themes of the sites.

WooCommerce

Nevertheless, WooCommerce doesn’t use the concept of hosted platforms like Shopify. Consequently, you must install the plugin, manage updates, maintain backups, and protect your site from hacking attempts.

Many free or premium plugins can automate these activities. Compared with other platforms, this has more than 59,000+ customizable options in WooCommerce but lacks a built-in drag-and-drop builder. However, you can use WordPress builders like SeedProd if you wish to go that way.

Additionally, this flexibility requires a learning curve and daily management efforts to work well. You will also need an online payment account or services such as Stripe/PayPal to keep it running smoothly over time.

Although a setup wizard guides one through the initial steps, it does not offer the same simple usability and onboarding experience as Shopify.

Payment Method:

Shopify

Users can choose from various payment options, such as Shopify Payments (powered by Stripe) and other popular and conventional third-party gateways.

In addition, it should be noted that Shopify imposes an extra charge of 2% on all transactions conducted through third-party gateways in addition to their fees.

The Advanced Shopify plan (which costs $399 every month) reduces this amount to just 0.5%. Shopify Payments’ credit card rates begin at 2.9% plus 30¢ for a single transaction under the Basic plan; there are lower prices for advanced programs and no additional transaction costs attached to them.

WooCommerce

WooCommerce comes with built-in integration for PayPal and Stripe and boasts WooCommerce Payments built on top of Stripe. Other commonly used processors include Authorize.net, Amazon Pay, and Square.

Regional services are also accepted. Payment companies can create plugins for WooCommerce. An example is FunnelKit’s free version of Stripe Payment Gateway, which offers features such as an onboarding wizard and express checkouts.

WooCommerce is self-hosted; therefore, it only pays fees to payment gateways or banks and does not charge its clients either. This means that if one prefers to opt for a third-party payment gateway, then they will save money compared to using Shopify payments, which are pretty similar to Stripe/PayPal in price for small stores.

Dropshipping:

Shopify

In this contest of drop-shipping features, Shopify is more friendly than WooCommerce while offering greater customization and flexibility. Both can support a drop-shipping business, but depending on the features, you may prefer one.

WooCommerce

WooCommerce Drop-shipping is fully customizable, unlike Shopify Lite, which has built-in drop-shipping options, making interfaces with platforms like Facebook, Amazon, eBay, and Pinterest possible.

All in all, your needs and preferences determine which one to go for, making Shopify an easy choice compared to WooCommerce’s extensive customization and flexibility options with which they operate currently.

Shopify vs. WooCommerce: Which one is better?

The pick between WooCommerce and Shopify will depend mainly on your requirements and skills. Shopify would be ideal if you value easy-to-use interfaces, dedicated support, and limited technical involvement.

Moreover, WooCommerce is a better choice for those who need customizations and have knowledge of technology while looking to cut costs or be involved in the processes.

In addition, combining WooCommerce with FooSales POS creates a comprehensive omnichannel retail solution that can grow with your business.

On the same note, both live stores are expected to run successfully on these platforms by 2024. Depending on your business model, expertise level, and objectives, weigh their advantages and disadvantages before deciding which works best for you.

More Resources:

Top 15 WooCommerce Plugins for Your WooCommerce Store

Shopify SEO: 7 Tips to Optimize Your Shopify Store