Difference between E-commerce And Shopify

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Difference between E-commerce and Shopify

The term e-commerce refers to the buying and selling of products or services through the internet. It is a general business idea that encompasses online shopping, online markets, online payments, logistics and customer services. E-commerce websites can be operated by businesses through various platforms, custom built system or third party marketplaces.However, Shopify is a particular e-commerce that assists people to design and operate online stores. It is a software which is based on subscription and offers templates which are ready to use, payment integration, and store management tools. E-commerce in straightforward terms refers to the overall business model of the online environment, and Shopify is a tool that is utilized to create and manage the business.

Basic Definition

Electronic Commerce (E-commerce)

  • E-commerce involves buying and selling of goods or services via the internet.
  • It is a business paradigm or idea.
  • It covers every form of online transactions.
  • It can be achieved by means of websites, applications, marketplaces, or social media.
  • Examples: Amazon, eBay, Flipkart, online clothes.

Shopify

  • Shopify is a tool or a platform that is used to build an online store.
  • It is a software as a service (SaaS).
  • Helps users create, operate and maintain online stores without codes.
  • Offers in-built features and templates.
  • In simple terms:

 The business activity is e-commerce. One such platform is Shopify that is used to operate that business.

Nature and Scope

E-commerce Scope

A broad industry covering:

  • Online retail (B2C)
  • Business-to-business (B2B)
  • Consumer-to-consumer (C2C)
  • Dropshipping
  • Digital product sales
  • Consists of payment gateways, logistics, marketing, customer service, and others.

Can operate on:

  • Custom-built websites
  • WordPress + WooCommerce
  • Magento
  • Shopify
  • Marketplaces like Amazon

Shopify Scope

  • Only able to build e-commerce stores.
  • Provides tools for:
  • Website creation
  • Product listing
  • Payment integration
  • Order management
  • Is not indicative of the whole e-commerce industry.
  • It is just one of the solutions.

 

Flexibility and Customization

E-commerce Flexibility

  • Complete customization in case of construction.
  • Businesses can choose:
  • Hosting provider
  • Platform
  • Payment systems
  • Design structure
  • Increased user control over backend and technical components.
  • Appropriate in large businesses which require complex systems.

Shopify Flexibility

  • Provides pre-designed themes and templates.
  • It is only customized to the capabilities of the platform.
  • Flexibility of the coding exists but in the context of Shopify.
  • Freedom is not as technical as when doing custom development and is easy to get started.

Technical Knowledge Required

E-commerce (Custom Build) Requires:

  • Web development knowledge
  • Hosting management
  • Security setup
  • Database management
  • May needs to recruit developers.
  • Increased technical responsibility.

Shopify

  • Beginner-friendly interface
  • Basic store setup does not need any coding.
  • Security and hosting were included.
  • It is user friendly and ideal among non-technical users.

Cost Structure

E-commerce Cost

Costs vary depending on:

  • Website development
  • Hosting charges
  • Domain name
  • Security certificates
  • Maintenance
  • Initial development cost may be expensive.
  • The long term economies are infrastructure based.

Shopify Cost

Monthly subscription feeAdditional costs for:

  • Premium themes
  • Paid apps
  • Transaction fees
  • Predictable pricing model
  • Reduced start up cost in relation to personal e-commerce

Control and Ownership

E-commerce

Full control over:

  • Data
  • Hosting
  • Custom features
  • Website structure
  • Lack of reliance on a particular platform.

Shopify

  • Hosted on Shopify’s servers
  • The rule of platforms has to be adhered to.
  • Low visibility of backend systems.
  • Reliant on Shopify ecosystem.

Marketing Capabilities( SEO).

E-commerce (Custom Platform)

Advanced SEO flexibilityFull control over:

  • URL structure
  • Technical SEO
  • Site speed optimization
  • Also able to integrate any marketing tools.

Shopify

  • Built-in SEO features
  • Easy integration with:
  • Facebook Ads
  • Google Ads
  • Email marketing tools
  • SEO is customization which is good and a bit limited when compared to the custom builds.

Scalability

E-commerce

  • Highly scalable
  • Suitable for:
  • Large marketplaces
  • Enterprise-level businesses
  • Ability to cope with complicated tasks.

Shopify

  • Small and medium business-scaleable.
  • Shopify Plus that is offered to large-scale brands.
  • Scaling easily in comparison to working with custom infrastructure.

Examples to Better understanding

E-commerce Examples

  • Amazon (Marketplace model)
  • Flipkart
  • Branded websites that are not dependent.
  • E-commerce course selling websites.

Shopify Examples

  • Small business clothing brands.
  • Dropshipping stores
  • Handmade product sellers
  • Startup fashion brands

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