Choosing an eCommerce platform isn't just a technical decision. It's a business decision that can affect your costs, your processes, and ultimately your profitability.
The right eCommerce platform should support how you want to run your business today and be able to grow with you in the future. It should make selling online easier, help you manage your finances efficiently, and create a smooth online shopping experience for your customers.
Choosing a good eCommerce platform is key for effective eCommerce accounting. Keep reading to find out which platform is right for you, or get in touch today to discuss your business.
Why eCommerce platform choice matters for financial management
When you're setting up an online store, there's lots to think about - cost, time management, logistics, software, customer data, legal requirements, and marketing. Your eCommerce platform influences many of these things and more.
It does so much more than simply host your site. It shapes how your entire online business operates.
Should I speak to an accountant before choosing a platform?
Choosing a new platform is much easier when you understand the financial impact from the start. While you can begin without professional advice, if you're just starting your eCommerce business or you have little or no knowledge of accounting, it can be helpful to speak to an accountant first.
An accountant with eCommerce experience can help you assess the true profitability of different platforms, including platform fees, transaction fees, payment provider charges, and integration costs with existing systems. They'll also be able to give advice about how different platforms integrate with accounting software and handle things like tax, overseas sales, and bookkeeping.
What to consider when choosing an eCommerce platform for your business
Every business is different, so a platform that works for one might not be the right fit for another.
The first step is to take a breather and think about your own business requirements. Will the platform scale with your business? Will it work with your accounting software? And are there hidden costs you should know about?
Here are some key factors to think about when comparing platforms.
Total cost
When comparing eCommerce platforms, the headline price might not tell the full story. You need to look at the total cost of ownership. This includes more than just platform fees. You'll also want to factor in transaction fees, payment gateway charges, web hosting costs, and the price of any third-party tools you may need.
Your business model
When choosing a platform, think about the way you run your business. Selling physical products is different from selling digital downloads or subscription products. The right platform should fit the type of eCommerce business you're running and meet your customers' needs. It should also support your growth plans without forcing you to change how you run your business.
Inventory management
Your platform should let you track stock levels accurately and update inventory in real time to prevent you from overselling products. Some platforms already have these features built in, while others integrate with specialist tools that offer more advanced options.
Accounting integration
Ideally, your eCommerce platform should integrate directly with your bookkeeping software so that sales data, refunds, transaction fees, and payment provider charges are recorded automatically. When your systems connect properly, you don't have to think about manually updating everything, and there's less room for error. It also gives you better visibility over your revenue, expenses, and profit margins.
Read more: How to claim expenses as an eCommerce business.
VAT and tax handling
VAT can become complicated very quickly for online retailers. Look for an eCommerce platform that supports automated tax calculations and provides clear reporting that helps you stay compliant. It should also work well with your accounting software so that preparing VAT returns is less of a hassle.
International sales
If you plan to sell internationally (or think you might in the future), you'll need a platform that supports global transactions. Features such as multiple currencies, international payment gateways, and secure checkout experiences help create a better online shopping experience for customers around the world.
eCommerce platforms we work with
At Unicorn Accountants, we support a wide range of online retailers with specialist eCommerce accounting services. We help businesses streamline their bookkeeping, integrate their accounting systems, and gain clearer visibility over revenue, VAT, and profitability.
Over the years, we've worked with many of the most popular eCommerce platforms and understand how they affect your finances and reporting.
Below are some of the platforms we frequently see in successful eCommerce sites.
Shopify
Shopify is one of the most popular Saas eCommerce platforms out there. It's a user-friendly platform with built-in hosting, secure transactions, and a wide range of marketing tools and automation features. It also integrates with many popular payment gateways and accounting tools, making it suitable for all types of online businesses.
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Best suited to: small to medium online retailers who want a reliable, easy-to-manage platform with predictable monthly costs and less technical expertise. |
WooCommerce
WooCommerce is a free platform that works with WordPress to create online stores. It's a self-hosted platform that gives you more flexibility, custom solutions, and SEO features. Because of this, you have deeper customisation and integration with other systems, but you may need some technical knowledge or dedicated support to get the most out of it.
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Best suited to: businesses that want to add eCommerce features to their current website. |
Adobe Commerce
Previously known as Magento, Adobe Commerce is designed for larger eCommerce stores. It includes advanced tools such as multiple storefronts, detailed customer insights, and powerful automation features that help manage high volumes of products and orders.
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Best suited for: large and growing eCommerce businesses that need advanced features and scalability. |
Wix Stores
Wix Stores is a platform designed for simplicity. It includes website building tools, payment integrations, and basic eCommerce functionality, all wrapped up in one user-friendly package. While it may not offer some of the advanced features of other platforms, it's a quick way to launch an eCommerce site.
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Best suited for: smaller businesses or new entrepreneurs with little technical experience launching their first online store. |
Squarespace
Squarespace combines website design and eCommerce functionality, giving you complete control over your website design without the need for a development team. It has a range of customisable templates to get your site up and running quickly and with minimal hassle.
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Best suited for: creative businesses, service providers, and brands selling a small range of products that value design and simplicity. |
Looking for specialist eCommerce accounting advice? Speak to us
Picking the right eCommerce platform is just one part of running a successful online store. You also need clear financial reporting, accurate bookkeeping, and the right systems to track your finances as your business grows.
At Unicorn Accountants, we specialise in helping eCommerce brands like yours thrive. Whether you're just starting out or exploring other platforms, call Unicorn Accountants on 020 8064 0454 for a friendly, no-obligation chat, or complete our contact form to tell us about your business.
Read more: How to tell if your Amazon business is profitable.
Frequently asked questions about choosing eCommerce platforms
What is the best eCommerce platform for small businesses?
Many small businesses choose hosted platforms like Shopify because they are easy to use, affordable, and can scale as your business grows. But it all depends on what you're selling and how your business works. For some businesses that need more flexibility, an open-source platform like WooCommerce may be preferable.
Why does my eCommerce platform affect my bookkeeping?
Your eCommerce platform is where most of your sales activity happens. It records every order, payment, discount, fee, return, and refund before the money reaches your bank account. Because of this, the platform you use plays a big role in how your financial data flows into your bookkeeping system.
If your platform integrates well with your accounting software, much of this data can be recorded automatically. That means less manual work, fewer errors, and clearer financial reports for you.
What happens if I choose the wrong platform?
Choosing the wrong eCommerce platform can create problems as your business grows. It may affect your customers' experience, leading to issues like slow checkouts, abandoned carts, or lower customer retention. All of which can impact your revenue. Then there are operational challenges, hidden costs, and integration issues.
Of course, you can switch to a new eCommerce platform later, but this can be time-consuming and expensive. That's why it's best to choose a platform that supports your business from the start.