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Hip Munk was one of the earliest “metasearch” travel sites, delivering results from a wide swath of competing travel websites such as Priceline and Travelocity, all in one place. Alas, four years after being sold at SaaS company SAP Concur, both the Hipmunk website and app go offline for good in January 2020. 

While the site will be missed, there’s no shortage of online travel agencies these days: since Hipmunk’s launch nearly a decade ago, plenty of excellent alternatives have sprung up, offering a similar–and in some cases improved–range of services. 

Check out our roundup of the Best Small Business Credit Cards

Cheapoair

Perfect for budget travelers, Cheapoair offers some of the cheapest deals on flights and hotels that you’ll find to be found on the web. Founded in 2006, the online travel agent allows visitors you to search for flights, hotels, cars, and even vacation packages and is also available as an app for Android and iOS. 

What separates Cheapoair from the pack is its Price Match Promise: If you are somehow able to find a cheaper flight with a similar itinerary on a competitor website within 24 hours of booking with Cheapoair, they will refund the difference in price, or allow you to cancel altogether, granting you a full refund. 

Best Features:

• Offers some of the lowest prices found on the web
• Price matches

Flighthub

Montreal-based Flighthub distinguishes itself as an excellent Hipmunk alternative with it’s clean, user-friendly layout and the ability to filter search results for the favorite airline(s) of your choice. Flighthub doesn’t overextend itself like other online travel sites, sticking to three main categories: flights, hotels, and cruises.

Visitors to Flighthub can enjoy the great bonus features the site offers, including a list of the best flight deals of the day out of your area, located at the bottom of the main page, and handy little travel guides for major travel destinations around the world that include an overview of the location, visa information, along with the average costs of commonly bought items. 

Best Features:

• Excellent layout
• Flight deals of the day
• Detailed travel guides for popular destinations

FlyGRN

Rather than overburden you travelers with options, FlyGRN is a travel metasearch site that sticks to flights, delivering results from dozens of booking sites in one place. 

What makes the site unique is its environmental focus: after you use the FlyGRN to search and book a flight with one of its partner sites, FlyGRN receives a fee which they use to partially or totally offset your flight’s CO2 emissions-free of charge by investing in eco-friendly projects around the world. A great choice for travelers with a conscience concerned about their carbon footprint.  

Best Features:

• Eco-conscious philosophy
• High transparency

Hopper

More than just a third-party flight booking service, Hopper is an app available for iOS and Android that accurately predicts flight prices for a year in advance, allowing users to choose the cheapest departure date for their European trip looming on the horizon.

In addition to flights, Hopper also allows users to book hotels and will send you price drop alerts before prices drop, while also warning you travelers when prices are about to go up. The app looks great, too, boasting a streamlined, user-friendly interface, and a color-coded calendar showing you highlighting the cheapest (and most expensive) days to book.     

Best Features:

• Clear, easy-to-use interface
• 95% accurate price predictions
• Price drop alerts

Kayak

In terms of delivering a similar service, Kayak might be the top Hipmunk alternative. Launched in 2005, the metasearch engine and online travel agency allows visitors to search for flights, hotels, cars, restaurants, and more, while simultaneously delivering results from competitor websites.

Kayak offers excellent customizability in its searches, allowing for flexible dates, the option to omit certain airlines, and a great “pin” feature that lets you travelers keep track of one flight while they browse others down the list. What’s more, Kayak’s prices are some of the cheapest you’ll find on the web.  

Best Features:

• Wide range of search options with excellent customizability 
• Pin features allows users to keep track of flights they’re interested in

Momondo

Momondo is a great travel metasearch site that allows users to take care of all bookings in one place, including flights, hotels, car rentals, and more. Like other travel booking sites, Momondo delivers fares from scores of airlines and competitor travel sites that can be sorted in three categories: “cheapest”, “best”, and “quickest”. Each flight is given a score from 1 to 10 based on several criteria, including price and quality. 

One handy feature offered by Momondo is the “My Trips” page, which keeps track of all bookings to stay organized and don’t forget crucial parts of a travel itinerary.

Best Features:

• Convenient filtering options
• My Trips page allows travelers to keep track of their bookings done through the site

Rome2Rio

A unique travel booking website, Rome2rio does more than just allow travelers to search for airfare and hotel prices. The site lets you visitors compare every available means of getting from point A to point B, including train lines, bus routes, and even ferry trips, in addition to showing flight prices. 

The founders of Rome2Rio recognize that flying isn’t always the best option of getting from one place to another and that travelers can often save money and enjoy a more scenic journey by opting to travel by train. Rome2Rio currently works best for those traveling through Europe and the United States and is a great online travel choice for those on an extended journey, rather than a week-long getaway.   

Best Feature:

• Shows bus, train, and ferry routes in addition to flights 

Skiplagged

The pull of Skiplagged is that the travel search site utilizes an algorithm that brings up “hidden-city” flights in its search results. Hidden-city flights are multi-stop flights where the traveler exits into their intended city during a layover before the final destination of the journey, rather than buying a ticket explicitly to that city, allowing one to save a lot of money. 

Skiplagged exploits this travel hack to great effect, claiming that their method results in savings of up to 80%. While frowned upon in the industry, hidden-city flights are technically legal, at least for now. For travelers looking to save a ton on flights, and don’t mind exploiting certain loopholes, Skiplegged is a great option. 

Best Feature:

• Hidden-city flights allow for considerable savings on flight tickets

Skyscanner

Skyscanner is a great travel metasearch travel engine that allows visitors to compare airfare prices from hundreds of airlines and online travel agencies. Also available as an Android and iOS app, Skyscanner offers perhaps the greatest variety of flight options, and often, the cheapest prices you’ll find found anywhere.

Once a traveler finds the right flight, booking is done on the airline or travel agency website offering the flight, rather than through Skyscanner, meaning they have no reason to show inaccurate prices or conceal hidden fees. What’s more, Skyscanner doesn’t use cookies, which a lot of travel sites use to track your history and inflate prices on your 3rd or 4th search.    

Best Features:

• Doesn’t use cookies
• Delivers the widest array of flight options

Vayama

Another solid Hipmunk alternative, Vayama has everything you’re looking for in all the attributes of a stellar travel metasearch engine. Travelers can search flights to over 2000 airports worldwide, lodging, car rentals, and even arrange airport pickup to be delivered you to your hotel.   

Vayama puts its focus on international travel, and you’ll often find the lowest available fares to more off-the-beaten-path spots in Africa and Asia through the site. For international destinations, Vayama offers important information about visas, recommended vaccinations, safety issues, and more that is vital to travelers. All in all, a fine online travel option. 

Best Features:

• Delivers the best variety of flight options to exotic locales
• Detailed, informative travel guides

The post 10 Alternatives to Hipmunk (2023) first appeared on Chamber of Commerce.

With an increasing number of sales channels, the Internet is literally opening up new markets for selling.  And because of the challenges of managing all of this, shipping platforms have had to adapt to better serve businesses as they try to meet the demands of their customers. Traditional players have adapted their business models, while new competitors have entered the industry.

Plus, with the growing number of needs amongst businesses that are expanding their customer base and retail channels, shipping platforms have had to offer additional services and value like inventory tracking, payment gateways, automatic shipping estimates, instant shipping label generation, and more.

There is also more than one way to get a product out to customers. For example, drop shipping – which is when businesses don’t actually have the inventory of the products themselves and instead field orders from customers for order fulfillment and direct shipping from manufacturers and/or warehouses – has grown in popularity due to the explosive growth in the e-commerce space. International customers may require unique shipping methods to get products to them wherever they may be in the world. All of this can be a huge source of frustration and stress.

Shipping software handles complicated logistics and manages many of the most time-consuming tasks associated with shipping products. These services can help trim costs, while simultaneously providing the best level of service to customers who simply want to receive products at their doorstep as fast as possible and at the lowest price-point.

Perhaps the most common reason that many business owners prefer using comprehensive shipping software is that they want to simplify all of the moving parts that go into running an e-commerce store. Not only do you need to manage e-commerce shipping, but you also need to take care of managing a digital storefront, calculating international taxes and costs, printing labels, and collecting payments. When you consider all of these things separately, running an e-commerce business can be stressful and confusing. Thankfully, with the right shipping software, all of these features can be conveniently rolled into a single, user-friendly platform that’ll help streamline processes and keep things more organized than ever.

When it comes down to it, shipping is one of the most important parts of an e-commerce business. You can have a fantastic marketing plan, exceptional customer service, and the best sales staff in the industry. But if you can’t get your products out to customers at an affordable rate and within a timeframe that’s competitive with other players in the market, your business will not succeed. 

And, if that didn’t sound like enough of a challenge, there are literally dozens of shipping carriers and platforms to choose from, all of which offer their own unique features and services.

Check out our guide on E-commerce Order Fulfillment and Shipping

Why do e-commerce businesses need shipping software?

The most obvious answer is to this question is to get products into the hands of customers, and hopefully, earn their repeat business. But there’s so much more to shipping than just getting products from point A to point B.

To develop a competitive advantage

One of the main reasons to find the best shipping software is to develop a competitive advantage. Online shoppers today are savvier than ever, and they know what to look for when comparing products online. Not only do people want the best deals, the highest quality products, and the best features, but they also want to save on shipping costs and receive their purchases as fast as possible. Shipping software helps e-commerce businesses provide great shipping services at the lowest cost possible so they can present a competitive offer to customers who are considering their products.

In fact, 88% of customers are more likely to buy a product if the shipping is free. Of course, free shipping for customers doesn’t mean free for a business owner, which means identifying ways to keep costs down so that you can continue to offer enticing features, like free shipping on certain qualifying purchases.

To save time and money

Not only can the best shipping software for e-commerce help keep costs and prices low, but it can also save time when it comes to processing orders. It wasn’t too long ago that you had to generate your own shipping labels, pay for each individual label, schedule a pick-up or/or drop-off time, and then ensure that the product was packed and ready to go. While shipping software can’t tackle all of those tasks, it can cut out a lot of the menial, time-consuming work that goes along with shipping. By automatically finding the best rates and shipping timelines, and then creating the labels, shipping software saves time and stress. Plus, as a business grows, this time savings will prove to be incredibly valuable, especially as a few orders per day turn into hundreds.

Shipping platforms also keep costs low by creating efficiency in business operations. As many businesses grow, they may need to bring on more staff. If certain tasks are automated in the shipping process, however, they may be able to hold off on hiring additional staff and/or limit future hires, which will improve the bottom line considerably. What’s more, the money saved on new staff can be redirected into other efforts to help grow the business, like expanded advertising and marketing campaigns.

To streamline operations

It’s important to understand that the shipping process isn’t complete once the package is en route to a customer. Customers want accurate tracking and delivery estimates. Plus, in the event that an order doesn’t meet their needs, they want a simple return process that won’t cost them money. This is all compounded by the fact that trying to meet so many demands can capitalize on both time and money. Shipping software can manage returns and provide accurate estimates for customers, which gives busy business owners more time to focus on other areas of their business.

To ship internationally

The growing market for online shopping also means that for many businesses, their shipping needs may end up expanding beyond their borders. Unfortunately, international shipping can become very complex, very quickly. There are duties to consider, special international shipping rates, and additional logistics with processing orders and returns. Trying to take all of this on, in addition to everything else, is a recipe for disaster. Shipping platforms make it easier to ship internationally, while still taking advantage of the best shipping rates possible. What this means is the ability to ship internationally, without having to commit a disproportionate amount of time and energy to do so.

To sell across multiple platforms

In addition to shipping to a number of different countries, many e-commerce businesses sell on a number of different platforms, like their own website, Amazon, eBay, and other online stores like Etsy.  Luckily, many shipping software solutions are prepared to handle multi-channel orders, and even offer multi-carrier shipping software, which means the ability to access a single hub for all shipping needs, regardless of where products are big sold or what preferred shipping carriers are.

When does an e-commerce business need a shipping software platform?

To put things quite simply, shipping management platforms are needed whenever ecommerce businesses plan on shipping products out to customers. Of course, the unique needs of each business will vary depending on the size and volume of business, areas served, services needed, and the types of packages being shipped.

When just starting out

The most obvious time to begin searching for the best shipping software is when an e-commerce business is just starting out.  While initially, this may seem stressful, the benefit of conducting all of this research when first starting out is that there’s a clean slate to work from. Since there are no existing businesses practices in place, business owners can shop around for the best deal that will include all of the services required to successfully get products out to new customers.

If you’re just starting out, you will want to consider everything beyond just the actual act of shipping product from point A to point B. So, for example, how will inventory be managed and tracked? Will you even hold physical inventory? What’s the order management process going to look like?  Is the ability to ship internationally important? Answering all of these questions early on will result in a short-list of shipping software options that make the most sense.

When brick-and-mortar businesses decide to sell online

Of course, not every business in need of shipping software is a brand-new business. There are countless businesses moving their brick-and-mortar operations into the online space. When this occurs, finding the right shipping management platform may prove to be easier – or perhaps even a bit more challenging – than a brand new business just starting out.

For example, there may already be a satisfactory inventory management system in place, and all that’s needed is a solution to manage online shipments.  At the opposite end of the spectrum, however, could be the desire to completely overhaul existing operations, so that inventory management and shipping are both rolled into an all-in-one solution that’s easier to manage, and scale.

When curious what other options are available and/or are looking to expand

If you already have an e-commerce business with established shipping practices, it never hurts to explore what options are out there. For example, perhaps you have been selling online through your own online store, but are looking to expand into other online markets like Amazon and eBay. After all, Amazon is, hands down, the world’s largest online shopping platform, and you may have come to the conclusion that your business needed to present there to be even more successful.

The question then becomes how to manage the expected volume increases, and address the varying shipping needs from multiple selling channels.  In a scenario like this, identifying shipping software that works well with Amazon, but that can also handle some of the other retail channels as well, is a must.

You may also find yourself in a situation where you have an established shipping partner but want to make a change. Perhaps you have been taking on more of a role in managing your own shipping by generating and printing labels yourself and would like to have this process automated. Or maybe you’re looking for a shipping partner that can offer you the best rates on international shipping. There are countless reasons why you may want to find a new shipping platform that’s more suited to your current needs, as well as the realities within your growing business.

How to choose the best shipping software for e-commerce

There are many important features to consider when comparing shipping software, and the final decision will ultimately depend on the features that are important for ensuring business success, as well as customer satisfaction.  Here are a few things to consider.

Is there multi-channel support? What about international shipping?

The first things to consider are what selling channels are being used, as well as where products are being shipped. Some shipping software platforms only offer shipping solutions within a specific country, while others offer numerous international options. In addition, it’s important that customers on multiple different retail channels can all be served quickly, regardless of where they choose to shop. These are probably the two most important things to keep in mind when evaluating shipping software options.

Even if you don’t currently sell on multiple channels, you may find that changes in the future. Having the ability to easily add new retail channels as a business grows and changes is a nice feature to have. Plus, with many shipping platforms, payments are made based on the number of orders completed, so it doesn’t initially cost anything out-of-pocket.

Taxes and duties are always a major concern and can become complicated very quickly once you’re shipping beyond your own borders. This is especially true if you’re shipping to a number of different international locations. Some shipping platforms will calculate fees, so that manual calculations and tracking are a thing of the past.  More importantly, these platforms stay on top of changes to international taxes and duties so that e-commerce business owners aren’t bogged down with staying up-to-date on international tax laws.

Is inventory management an option?

Many of the best shipping software platforms also offer inventory management solutions so that it’s easier to monitor and change inventory. This is especially helpful if selling products across multiple channels. Once a business starts selling on multiple retail channels, inventory management can quickly become a time-consuming task since inventory levels must be manually adjusted across all channels being used.

If products are selling quickly, keeping up with inventory management can easily turn into a full-time job in itself, and perhaps even require that additional staff be hired. Many shipping platforms now automatically update inventories so that business owners know when it’s time to place a new order.  This prevents customer service issues from occurring, like when someone orders a product, only to find out that it’s sold out or backordered. When this happens, if someone wants a product quickly, they may cancel their order all together, and the poor experience could convince them never to order from that business again in the future.

What’s the order fulfillment process like?

Of course, the most important part of a shipping platform is actually fulfilling orders. If manually managing orders, once you receive an order, you need to generate and print labels yourself. If you’re receiving a high volume of orders, this can consume a tremendous amount of time. It also leads to potential errors, like address typos, especially if printing a large number of shipping labels manually.

Having shipping labels generated automatically can save a lot of time, and also prevent poor customer experience issues. Even if you aren’t currently shipping a high volume of orders today, you never know how fast your business will grow. Having this feature in place will allow you to scale quickly and easily, without having to make major adjustments at some point in the future.

Is it a native application or SaaS-based model?

What makes the most sense for a business: an installed shipping software or a web-based management solution? There is no right or wrong answer when evaluating both options, but there are pros and cons to each.  For example, a web-based platform tends to be a more out-of-the-box solution that simply plugs into an existing website. On the other hand, installed software must manually be added to a website in order to work correctly. 

There are some platforms that offer a complete solution that includes a website, hosting, domain name, inventory management, and shipping management. Of course, there are additional costs when opting for a package with such a comprehensive suite of features, but the convenience and ease-of-use may be a nice benefit if time is of the essence and it’s important to get up and running quickly.

What other options and add-ons are available?

If having a shipping management platform does more than manage shipping, it’s important to consider whether or not the platform allows integrations through the use of third-party apps or plugins. Some of the most popular plugins are abandoned cart notifications, discount codes, and marketing apps, all of which can help increase sales. Of course, it’s important to factor in the additional costs to install and/or use some of these third-party features prior to making a final decision.

If interested in a platform that handles more than just shipping, it may be wise to consider partnering with a shipping software that offers a complete shopping cart experience, which will make it easier to manage orders and create a cohesive experience for customers. This will cut down on processing time as well, since there will no longer be an additional step between sales being processed and generating the shipping labels.

Finally, there are a number of features that may be unique to some platforms which may or may not find helpful. Generally speaking, these additional features cost extra money in some way, shape, or form. However, they may be worth the additional cost if they are actually used. Things like guarantees for late or missed shipments allow for better customer service to buyers. Design and ease of use for the platform is also something to consider, especially since a cluttered UI can slow things down to the point where it’s almost cost-prohibitive. It’s all about better time-management and efficiency, so choose something that’s comfortable, intuitive and easy to use.

What are the costs associated with shipping software?

Now, let’s get down to the dollars and cents of shipping. The cost of shipping is a huge expense for e-commerce and will require that margins are low or prices are increased to absorb some of the cost. Ultimately, the whole purpose of trying to identify the best shipping software for e-commerce is to improve efficiency and reduce costs. This makes pricing perhaps the absolute most important feature when it comes to choosing a shipping platform.

There are a few different pricing structures available when it comes to shipping solutions.  And ultimately the best option will depend on your specific shipping needs, access to certain features and volume, as well as other factors, like international shipping.

Tiered fee pricing

One of the most common pricing structures is built around a tiered fee system, plus the costs of shipping. Many shipping providers base their tiered pricing on the number of orders processed. As businesses sell more products, they pay a higher fee for services. What’s nice for new businesses is that most providers have a free tier available, so that the first base tier of orders won’t cost a dime. The most appealing part about a tiered pricing structure is that it’s flexible and makes it easy to scale when busy and save money when sales are slow. So, for example, if you operate a retail business, you can expect to pay a higher tier price around the holidays and a lower-tier price during slower months outside of the holiday season.

It’s important to understand, however, that tier-based fees are only one part of the equation. The real cost comes from the costs associated with actually shipping products. Most shipping management providers will compare costs between the largest shipping companies like UPS, FedEx, and DHL, as well as international shipping providers, and then generate the most cost-effective shipping label that meets the shipping requirements a customer has paid for. Business owners then pay for these labels, which is where the most significant part of shipping costs comes from. So essentially you are paying for the shipping service, as well as the services of the shipping software platform to identify the best price and then handle label printing.

Pay-per-label

Another common pricing structure is a pay-per-label structure. One of the biggest drawbacks with this approach is that these types of services typically don’t search a number of different shipping providers or integrate with multiple retail channels to automatically generate shipping labels. As such, there’s no upfront monthly fee, but there is also no guarantee of getting the best shipping rates either.

The difference in cost may, however, be offset by the lack of an upfront monthly fee. With these platforms, there’s a little more legwork involved since shipping labels must be generated in-house. With that being said, however, it’s typically a pretty easy process, and many services accept exported order details from the top e-commerce companies so there’s no need to manually enter the information for each order.  Instead, simply export the data, and then upload the orders to the shipping software platform.

Monthly subscription for full-service e-commerce experience

There is also a pricing structure that requires a higher upfront monthly subscription cost in exchange for a full-service e-commerce experience. These types of platforms offer pricing tiers based on the value of your sales, but the tiers are much larger than the narrow tiers offered by companies that charge based on the number of orders completed. Where the increased cost comes from is in the increased services and features being offered. While the increased fees may be shocking at first, there is typically a lot of additional value and customizable features packed into these type of services.

For example, a complete e-commerce experience typically includes features like an e-commerce website, credit card processing, inventory management, multi-channel retail support, domain registration, and hosting, as well as all of the shipping features required to get products into the hands of customers.

Like all of the other shipping management companies, there’s still a fee paid per shipping label generated, which is where a large portion of costs will come from. Having the ability to have all of the e-commerce features work together – from inventory listings to final shipment label generation – can be a huge time saver and value proposition. While the upfront cost is higher, there is no need to combine multiple services and their associated costs, which can certainly simplify things and keep total costs low after all services have been considered.

Associated extra costs

Also keep in mind that there will be some extra costs that need to be considered, regardless of which shipping provider used. Accessories like label printers and scales are often necessary to complete the shipping process, which means paying for supplies like ink, labels, and paper. It’s also important to consider the costs of transporting packages to the shipping depot once everything has been packed and labeled. Unfortunately, there is no way to really predict these costs, but they do need to be factored in when establishing prices for products.

The best shipping software

BigCommerce

BigCommerce is one of the most well-known names in the e-commerce space, so it should come as no surprise that they have taken their shipment management to the next level in order to help the businesses using their platform grow and provide better customer service. BigCommerce integrates with some of the top shipping carriers – including USPS, UPS, and FedEx – to provide competitive, discounted rates. Customers can also be presented with a variety of shipment options that fit within their budgets and their timelines. In fact, when enabled, real-time prices for shipping are displayed right in the cart at checkout so that customers can pick an affordable option that also fits their preferred delivery timeline.

If you’re already using BigCommerce for your e-commerce store, then it may make sense to use their shipment manager as well. Easy integration makes it an obvious choice, but pricing may provide some pause for smaller businesses, especially since BigCommerce’s shipping integrations are geared towards medium and large businesses with higher volumes and unique needs like split shipments and multiple warehouse fulfillment. Smaller businesses may be better served by a more affordable and simpler plugin that can also easily integrate with BigCommerce.

Shippo

Shippo is a web-based platform with a clean UI that makes shipping feel simple. If managing shipments is a major source of stress, Shippo is here to eliminate it.  Their free pricing tier is one of the most generous free tiers amongst e-commerce shipping software platforms and allows for up to 200 orders per month with no monthly base fee. It’s simply 5 cents per order, plus the cost of shipping. This is a great option for small businesses that are just starting out on a budget. Paid tiers unlock additional features designed to make the shipping experience even more positive. 

Like many other platforms, Shippo automatically integrates with e-commerce stores to automatically pull in orders and provide discounted shipping quotes on them. Shippo will even import Shopify product details like weight and dimensions so that shipping costs are accurate. What’s more, you can link to a number of different shipping carriers, and customs forms can automatically be generated for international shipments. 

Shopify

Shopify is, hands down, the most popular e-commerce platform available today. And sending shipments from Shopify is simple since it integrates seamlessly with e-commerce stores built using the company’s baseline framework. Customers are shown real-time rates as they checkout so that they have the ability to decide which shipping option is right for them, while sellers can pick and choose which carriers they want to use in their stores.

Shopify shipping does lack some of the more advanced features of other shipping software platforms on this list, but will likely be a blessing for e-commerce business owners who simply want an easy-to-use and affordable shipping management platform for their e-commerce business. Of course, Shopify also integrates with brick-and-mortar POS systems too, so you can enjoy multi-channel inventory management, in addition to the native Shopify shipping offering provided by the world’s top e-commerce platform.

ShippingEasy

ShippingEasy is a web-based shipping system that, as the name suggests, aims to make shipping products as easy as possible. The clean interface is very easy to use and there’s not much clutter, which eliminates confusion while navigating to various areas of the software platform. ShippingEasy has made transferring orders to the platform simple as it integrates with many of the top e-commerce stores like Shopify so there’s no need to manually transfer orders. The number of features packed into ShippingEasy and the low monthly cost makes it a very competitive platform for those who want a turnkey solution with little setup required.

Where ShippingEasy really shines is in the pricing. It compares pricing across the top shipping companies and offers deep discounts on USPS services. These savings can be almost half as much as if you were to simply walk into a USPS store and pay for shipping yourself. They also make streamlining the shipping process simple, with automated shipping rules to decrease the time spent on shipping-related tasks. There is a free plan available for low-volume businesses, but the most powerful features come with the paid tiers, which include multi-channel inventory management, email marketing, and priority customer support.

Ordoro

Ordoro is a cloud-based shipping software platform that makes it easy to access shipping services from anywhere in the world, provided there’s an Internet connection. This is great if you’re running an e-commerce business on-the-go or work with a distributed team. There is a free plan available from Ordoro for businesses with less than 50 monthly shipments but many of the most important features are only available on paid plans. Pricing is also broken up into two different types of tiers, with the Express plans offering shipping services only and Pro plans introducing additional features like inventory management, dropshipping, and more. Perhaps the best feature of Ordoro is the powerful interface that doesn’t sacrifice ease of use. Using analytics and generating reports is simple and intuitive.

Like other cloud and web-based platforms, Ordoro directly interfaces with many of the top e-commerce platforms like Shopify. After store integration, automated shipping presets can be created to streamline the shipping process and automate label generation, which eliminates the need for manual input. Pro tiers also come with the ability to manage inventory across multiple channels like Shopify, Amazon, and eBay, all from right inside the Ordoro dashboard. Ordoro also integrates international carriers for businesses that send products outside of their own borders. Plus, it can be further integrated with services you may already be using, like an in-store POS system and your favorite accounting software.

ShipperHQ

ShipperHQ is an extension that integrates with many of the top e-commerce platforms including Shopify, Magento, WooCommerce, and BigCommerce. As far as features go, it’s hard to find another shipment management platform that allows for the level of customization that ShipperHQ offers. With that customization, however, comes a bit of a learning curve, which may be a deterrent to people who are interested in a simpler experience or just lack the tech-savviness required to successfully navigate through everything. ShipperHQ connects with the top carriers for domestic and international shipping and then allows you to create detailed rules for each. Do you want international shipments handled by one carrier and domestic shipments handled by another one? They can do that. Would you like one carrier to do pickup at your business while another waits for you to drop off packages? That’s possible as well. The customization options available with ShipperHQ are cutting-edge and best in the industry. Best of all, custom rule changes can be made quickly and instantly.

Pricing for ShipperHQ is competitive, although a little more costly than comparable extensions. They do offer additional features, however, like a consultation service for $500, which can assist in ensuring that everything is set up to meet the unique needs of your business. And ShipperHQ works well with your brick and mortar operations too, giving customers the ability to pick up products in-store if you choose to enable the feature. If you’re ready to get your hands a little dirty during setup to get the most customized experience possible, ShipperHQ may be the right fit.

WooCommerce

WooCommerce is the most popular e-commerce platform for WordPress users and comes jam-packed with features that go well beyond shipping. Perhaps the most important thing to understand about WooCommerce is that it offers an unprecedented level of flexibility when creating online stores. When you choose to build an e-commerce store with WooCommerce, you have access to inventory management tools, professional themes, product filtering, blogging, and reviews. Of course, shipping is one of the most important parts of the overall package, and WooCommerce offers plenty of flexibility when it comes to getting products out to customers. With WooCommerce, you can even enable multiple shipping options for customers to choose from, with clear pricing on the checkout page for each one.

Perhaps the major downside to using WooCommerce for shipping is that it doesn’t actually manage the shipping process. So, unless another shipment management platform is integrated with your store, you will be responsible for printing labels and getting products to the carrier of your choice. This may be fine for smaller businesses but may present issues for larger companies that are shipping a lot of volumes every week.  

FreightView

A lot of the shipping platforms mentioned here focus on smaller shipments for traditional e-commerce stores. Of course, this is of little help for businesses that need larger shipping options for some of the products you’re selling. This is where FreightView comes to the rescue, by providing discounted rates on freight shipping through their affiliated partners. Their platform promises easy set up that’ll have even the most tech-challenged up-and-running in 2 minutes or less. Once an order is received, simply compare their freight shipping rates and select one that fits your budget and needs. From there, print the shipping label, schedule a pickup, and track the shipment, all from a single UI.

While freight shipping may not apply to many businesses, if you’re in the business of shipping large packages, then you are painfully aware of how costly it can be. FreightView keeps freight shipping costs low and provides a wide range of additional features to help make the shipping experience as pleasant as possible. Best of all, because FreightView presents the best rates, you’ll be able to stay competitive in your industry without sacrificing your margins as a result of shipping costs.

ShipHero

ShipHero is a powerful platform designed for medium and large businesses that manage their own picking, packing, and shipments. Unlike a fulfillment platform, ShipHero essentially gives ecommerce business owners the ability to become their own fulfillment centers with industry-leading tools and technology. Start by integrating ShipHero with retail channels like Shopify, Amazon, eBay, and Etsy. From there, ShipHero pulls in orders automatically and updates inventory instantly across all channels in real-time as orders are placed by customers. From there, warehouse staff can use the ShipHero management app to pick and pack orders and then mark orders as ready for shipment.

Getting the best rates on shipping for both domestic and international carriers is also easy, as all integrate seamlessly with ShipHero. Essentially, ShipHero covers all of the details so that warehouses work more effectively and inventory management is a quick and painless process. Unfortunately, however, the major sticking point for many businesses with ShipHero is the cost. This is not a platform for small home businesses that only process a handful of orders each day. Rather, medium and large businesses with their own storage spaces should consider ShipHero to bring together their e-commerce channels with their shipment workflows for more streamlined and effective operations.

FedEx Fulfillment

FedEx is arguably the most well-known name in shipping worldwide. Many people think of large enterprise business solutions when they think of FedEx, but FedEx Fulfillment aims to change that perception. FedEx Fulfillment is the logistics giant’s small and medium business solution that couples FedEx shipping with the most popular e-commerce platforms like Shopify and BigCommerce. FedEx Fulfillment is designed with multi-channel businesses in mind that need to pack and fulfill orders from various online retailers including their own website, Amazon, WalMart, eBay, and more. With FedEx Fulfillment, you can manage and monitor inventory, have FedEx employees pick and pack your orders as they need to be sent out, and enjoy discounted FedEx shipping rates. The big advantage of this service is that orders are fulfilled quickly by FedEx itself and sent out quickly to ensure fast delivery and customer satisfaction.

FedEx Fulfillment aims to replace services like Fulfilled by Amazon and can help manage inventory and orders without having to maintain on-site staff to pick and pack orders, or store product. Of course, all of these features do come at a cost, so FedEx Fulfillment is not a great option for low-volume shippers.  In addition, since FedEx uses their own shipping services, there’s no way to compare rates from different carriers, which means shipping costs may end up being more expensive in the long-run. With that said, however, it’s a very competitive alternative to FBA and backed by the name recognition and reliability of the FedEx brand.

ShipStation

Another web-based shipping software platform that has grown in popularity is ShipStation. This platform manages keeps costs low while increasing operational efficiency. The tiered pricing system is very affordable but, unlike some competitors, ShipStation does not offer a free pricing tier for low-volume businesses. Live chat and phone support also aren’t available with the lower tier plans which means if having instant access to support is important, you’ll need to spring for a more expensive pricing tier.

One of the best features of ShipStation is the massive number of integrations the service offers. Shopping cart integration from many of the most popular e-commerce platforms comes standard, and product weight and dimensions can be added and shipping rates automatically calculated, right inside the shopping cart itself. What’s more, the shipping label generation process can be automated if orders meet certain rules that were previously established. This saves time and reduces errors that may result from having to import or complete orders manually. ShipStation also focuses on smaller details to help make the customer experience more cohesive. Things like custom shipping labels and packing slips add that extra personalized touch that makes opening a package from your business feel just a little more special.

Stamps.com

Stamps.com is a popular service that many e-commerce businesses use for affordable shipping options.  It’s meant to save business owners time when buying postage and shipping products with USPS. Instead of waiting in line to get labels and send out shipments, simply pay for and print labels in advance, and then drop shipments off at the post office. Stamps.com also provides a scale that connects to PCs and Mac’s via a USB, which ensures that proper postage amounts are being assessed to each package. The scale is free with the flat rate monthly subscriptions. The biggest drawback about Stamps.com is that there’s a very limited feature set, especially in comparison to more integrated shipping software platforms.

What’s more, discounts for shipping services via Stamps.com are not as significant as other shipping software companies in the market. But to be fair, their monthly pricing is lower as well. Generally speaking, Stamps.com is designed for smaller businesses with a low volume of shipments to send each month and is an affordable and easy-to-use option for these types of basic shipping needs.

The post Best Shipping Software (2023) first appeared on Chamber of Commerce.

	Square Online	Competitive payment processing Solid marketing features Inventory management features	Visit Square Online
	Squarespace	Easy to use, great for beginners Wide range of professional templates Fully hosted	Visit Squarespace
	AmeriCommerce	Free trial Manage multiple stores on one login/panel Integrates with 40+ payment processing services	Visit AmeriCommerce

Whether you operate a brick-and-mortar store and you want access to the entire world’s shoppers, or you’re looking at starting a new e-commerce site, you need the best shopping cart software to deliver a world-class shopping experience to your customers.

For many small business owners, building an online store and shopping cart can seem like a daunting task. Do you need experience with coding? Do you need to hire new staff to manage your online platform? How much will all of this cost? Those are just a few initial questions that can come up.

Luckily, starting an e-commerce online business is not as challenging as it may seem. With many of the best e-commerce shopping cart software platforms, even someone with minimal website design experience can set up and launch their online shopping cart in just a few minutes.

Why does your business need shopping cart software?

E-commerce shopping cart platforms are designed with small and medium businesses in mind. Many of these solutions try to be as plug and play as possible to save you time, effort, and money when setting up your online store.

Save on costs

Managing an online store without the help of a shopping cart platform would require a lot of time and investment from your business. 

In many cases, this cost would be too much for a small business to take on. You would need staff to manage product inventories, process payments, handle every aspect of shipping, organize the store inventory, and design an online shopping website. The salaries for these employees can add up fast. Even if you had the skills to do all of this yourself, there is only so much time in the day. You would likely still have to hire other staff to manage other aspects of your business.

Gain access to new retail channels

Simply having a brick and mortar store isn’t enough. A website with an online store is just one piece of the puzzle. Consider an e-commerce shopping platform for your business that gives you access to more than just one online retail location. 

With many shopping cart platforms, you can also be present on major shopping sites like Amazon and Facebook. With more channels to reach customers, you can secure more sales and watch your business grow faster than if you had simply opted for a website shopping experience only.

Some platforms allow you to add buy buttons to your Facebook page, list items on Amazon and set up an integrated eBay store. While you could do all of this individually yourself, it’s much more convenient to have a single hub where you can manage all of these channels at once.

Payment gateway

Most of the top platforms provide a payment gateway for customers. This brings everything you need, from inventory management to payment solutions, into one convenient package. Once you have set up the shopping cart there is no need to mess around with money, credit cards, and invoice generation. All of this is automated for you.

The alternative to this would be to partner with a payment platform that can integrate into your online store. While that’s not a bad solution, it does add another moving part to the machine, so to speak. It also means you’ll be paying for online store management as well as a payment solution. For most businesses, especially those with limited budgets and man-hours, having everything in one place is a much more preferable solution.

Inventory management

This is especially important if your business has multiple locations or retail channels. If you have a physical retail store then you likely use some sort of point of sale solution to help you manage inventory and take payments. 

When you move into the online space and use an online shopping cart platform you can manage inventory for all of your channels, including physical retail sales, with one solution. This can be a huge cost savings as you no longer need physical POS services in addition to your online shopping cart platform. 

With a one-time fee, you can manage inventory no matter where you’re selling. Best of all, inventory numbers are instantly updated so if you sell a product in your store then someone shopping online won’t also be able to buy the same item if you’ve run out.

Save time

Many platforms take the small, time-consuming tasks out of your hands so that you can focus entirely on growing your business. Things like invoice generation, shipping label creation, and even email marketing lists can all be managed by the platform. All you have to do is make sure traffic is being driven to the store and let the platform do the leg work.

 

The best shopping cart software platforms

Square Online

Pros 

• Very easy to use
• Free tier with no upfront costs or monthly subscription costs
• Competitive payment processing from 2.9% + $0.30
• Advanced tier offers reduced rates of 2.6%
• Accept payments via credit card, PayPal, Apple Pay, Google Pay, and more
• Solid eCommerce checkout and shopping cart features
• Solid marketing features, including social media marketing
• Inventory management features – with synced brick-and-mortar inventory
• Pickup and delivery options
• Good for just about any type of business

Cons

• Mediocre customer support
• Less full-featured compared to some eCommerce solutions

Square Online is a division of Square, one of the most popular payment processing firms out there. Square Online offers simple tools to create websites, online stores, and full-blown eCommerce operations. It’s a bit of a one-size-fits-all web solution, as it offers tools for eCommerce entrepreneurs, restaurant owners, and service-based business owners alike. 

Uniquely, Square Online offers a free tier that is fairly useful. It allows new companies to start a basic website or web store without any upfront costs or monthly fees. The only cost is payment processing, at 2.9% + $0.30 per transaction (which is fairly standard). For more advanced features, expect to pay between $12 and $72 per month, depending on the tier you choose. This cost includes web hosting, as Square also acts as your host. 

Square does offer good eCommerce features, but it’s not quite as advanced as some dedicated eCommerce platforms. That said, it’s an incredibly versatile choice, which can be well suited to the needs of many different types of businesses. 

See the full review of Square Online here.

Go to Square Online

Squarespace

When it comes to website building, Squarespace is about as close as it gets to a household name. Their e-commerce platform is incredibly easy to use and you can have a custom website up and running with your own product listings after putting in just a few hours of work.

Their wide range of available templates and third-party addons make Squarespace a great place for beginners to start designing their own website and adding product photos. The fully hosted solution means that everything you need is included in one package.

However, Squarespace is a website design platform above all else and it lacks some of the more advanced e-commerce features that you may be looking for. For example, there is no native POS integration available which means you will still need a separate POS platform for physical sales. This can add a layer of difficulty when it comes to managing your inventory.

In addition, they don’t offer quite the same range of social media integration which makes launching stores on other popular websites like Etsy a challenge. If you want ease of use with a competitive price, Squarespace is a great option. However, if you want more advanced e-commerce features, you may need to look elsewhere.

Go to Squarespace

AmeriCommerce

Pros

• You can manage multiple storefronts from one login/admin panel
• Offers a 14-day free trial
• Competitive pricing (from $25/month)
• Sell retail and wholesale on one platform
• Integrates seamlessly with 100+ software and apps
• Integration with 40+ payment processing services
• Intuitive interface
• Advanced e-commerce features

Cons

• Customer support has limited operating hours
• Limited selection of prebuilt themes and templates
• Limited resources and features for international sales

AmeriCommerce is a full-scale e-commerce solution, in the form of a slick software package. It features all the necessary tools to help entrepreneurs sell products online. While not as popular as alternatives like Shopify, Americommerce has over a decade of experience, and many top-tier clients. 

Business owners can use Americommerce to build, operate, and analyze e-commerce operations. From setting up the first store to managing your 100th launch, AmeriCommerce can be helpful at every stage of the e-commerce journey. One of its biggest selling points is that it allows users to manage multiple storefronts from one admin panel, which can be a huge time-saver for some businesses. 

There are a variety of prebuilt templates available, which make it simple to launch a new project. AmeriCommerce has many powerful features and tools built-in to the system, so it doesn’t rely too heavily on third-party apps. 

Plans start from $25 per month and scale up to $300 per month (depending on the size of your operation). AmeriCommerce also has payment processing available, at a cost of 2.9% of the transaction, plus $0.30 per transaction. Alternatively, the system integrates with 40+ payment processing platforms, including PayPal, Stripe, and others. So, you don’t have to use AmeriCommerce’s in-house payment processing, but the option is there. 

Overall, AmeriCommerce is a powerful and versatile e-commerce platform for any online entrepreneur. It may not have all the bells and whistles of some flashy new competitors, but it offers a quality product at a fair price. 

See the full review of Americommerce here.

Go to AmeriCommerce

Payhip

Pros

• No monthly fee plan covers all features (just pay transaction fee)
• An easy way to sell digital products
• Recurring membership features
• EU VAT handled automatically for EU customers

Cons

• Only for digital products
• Transaction fees do not include payment processing fees

Payhip is a shopping cart software specifically designed for businesses that sell digital products and memberships. It’s a perfect option for digital artists, authors, designers, software developers, and online membership community owners. 

Payhip helps power the business models of more than 130,000 entrepreneurs around the globe. They focus on membership-based businesses that have recurring revenue streams. Payhip makes it easy to allow customers and fans to subscribe to a membership model, and the software handles all the ongoing billing, membership cancellations, etc. 

Of course, you can also use the platform to sell any sort of digital product, from eBooks to albums. Payhip helps you upload and store the digital content, and makes it easy for customers to download their goods once they have completed the purchase. It can also be used to give products away for free, to build a subscriber base or attract new customers to paid goods. 

To be clear: Payhip is only for digital products. It does not support true e-commerce and has no features for shipping or the selling of physical products. It’s also not optimized for services, as the primary delivery method is digital downloads. 

Payhip has a budget-friendly pricing model, as well. Its free plan costs $0 per month, and simply charges a 5% transaction fee (plus applicable Stripe/PayPal fees). The free plan comes with all features and does not limit the number of items you can sell. If you sell a lot on the platform, you can upgrade to a paid plan to get a lower transaction fee. 

Go to Payhip

GoDaddy

GoDaddy is one of the top names in domain name registration but their website builder and e-commerce platform have been growing in popularity in recent years. This all-in-one solution gives businesses a complete e-commerce solution that includes everything from hosting to domain registration to payment processing and more.

GoDaddy’s website builder is a middle-of-the-road offering that doesn’t quite match up with some top website building companies. However, with that said, it is a powerful platform that gives you plenty of customizable themes to choose from. However, some of the additional features that put other platforms near the top are lacking with GoDaddy.

For example, GoDaddy doesn’t offer POS integration which means it won’t be able to step in and work seamlessly with your physical retail locations. If you are operating online-only then this may not be a major concern. Their locked-down API is also a challenge and means there are limited plugins available for the platform and no ability to create your own developer tools to integrate into your website.

The ease of use, however, is what makes GoDaddy a great solution for inexperienced developers. The website builder is simple to understand, the ability to create a Facebook page with a few clicks is unique, and there is quality customer support to back it all up.

WooCommerce

Pros

• Free to use, with options to use paid extensions
• Built for – and by – WordPress
• Relatively easy to use
• Tons of customization options
• Integrates with most payment processing options
• Also offers its own payment processing with competitive fees ($0.30 + 2.9% of each transaction)
• Open-source software means that there is a thriving community of developers

Cons

• Functionality of the basic shopping cart is limited (paid extensions expand functionality)
• Costs can add up if you start adding many add-ons

WooCommerce is one of the most popular eCommerce platforms on the market. It’s built specifically for WordPress websites – in fact, it’s owned by the same company that owns WordPress itself. It’s simply a plugin for WordPress, which you can install with the click of a button.

Like WordPress, WooCommerce is open-source. This means that anyone can download it, use it, and even make changes to it as they see fit. This means that there is a wide variety of third-party extensions and plugins available, further expanding the functionality of WooCommerce. 

The biggest unique feature of WooCommerce is its pricing structure: At its core, WooCommerce is free. You can use the plugin without paying a dime and use the free WooCommerce WordPress theme (or other free themes) to build your store. You’ll pay a per-transaction fee for payment processing, but this is true of any eCommerce solution.

The basics of WooCommerce are relatively simple, and functionality just covers the basics that you’ll need. To expand its functionality, many store owners will wish to purchase paid add-ons or themes. But the beauty of WooCommerce is that you truly can use it for free, and make small upgrades as needed. 

See the full review of WooCommerce here.

PayPal

PayPal is a top choice for many when it comes to online shopping cart services. The name alone carries with it some importance and many people already know and respect the PayPal name which makes it ideal when trying to build trust with customers. People who have personal PayPal accounts can use the PayPal checkout option to spend their PayPal balance, pay using their linked bank account, or use a credit card. This wide range of payment options makes PayPal a top choice for many when choosing an online shopping cart experience. Best of all, the simplicity of setting up a PayPal checkout portal is easy.

One thing many people don’t know about PayPal checkout is that it can integrate into many POS systems which makes it an ideal choice if you have both online and physical retail channels. However, their fees are higher than some of the competition and, if you find you are doing significant sales of more than $20,000 per month, you may discover that PayPal is not the best option when it comes to fees. Other PayPal features like their loans with installment payments, make it easy for customers to make a buying decision and give you their business. As far as ease of use goes, enabling PayPal checkout is one of the most user-friendly shopping cart setup experiences there is.

Shopify

Shopify is one of the most well-known names in e-commerce and for good reason. This company has helped pioneer the online shopping experience for small and medium-sized businesses that want a simple, all-in-one solution. Their platform gives you exceptional inventory management for both your online platform as well as your physical retail locations. In addition, they also manage your payments both online and in-person. With their POS terminals and mobile card readers, you can do business anywhere.

The Shopify app store adds a ton of additional features and functionality from third-party developers and there are always new apps being added. In terms of features and flexibility, Shopify is definitely in consideration as the best online shopping cart software. Their pricing is competitive but definitely not industry-leading. However, with the number of features you get and the level of support they offer, Shopify is well worth the cost of admission.

Big Cartel

Big Cartel isn’t as well-known amongst the likes of Shopify but it is quickly building a reputation as an easy to use platform that provides competitive features with some of the bigger names in the industry. Their free plan is limited to 5 products but includes a number of features that you would typically have to pay with if you chose another online shopping cart provider. For example, Big Cartel’s free plan can integrate with physical POS systems to integrate all of your shopping channels. The hosted platform means that everything you need is available right through the service and there is no need to piece together other things like web hosting or domain registration from other providers at additional cost.

If you step up to the paid plans then you will have access to more advanced features like the ability to create discount codes for your customers, manage inventory across all channels, track and print shipping labels through the dashboard, and make use of their advanced SEO features to help your site rank on popular search engines. For ease of use and customer support, it’s hard to find another platform that’s competitive with Big Cartel’s low pricing and impressively featured free plan.

PrestaShop

PrestaShop is an open-source shopping cart platform that can be downloaded for free and installed on an existing website or you can also use their hosted solution for your online store. The huge number of features and customizations makes PrestaShop a great option for someone who wants to get their hands a little dirty and make a truly unique online shopping experience for their customers. For example, PrestaShop offers unlimited product listings, gift packaging, international selling, and marketing tools like abandoned cart notifications that are typically only available on the most expensive e-commerce platforms on the market.

The web templates that come with PrestaShop are stunning but they aren’t free. At a minimum, you can expect to pay $50 for their customizable themes. Some themes can cost hundreds of dollars. While PrestaShop may be free to download, you should expect to pay for many of its features and integrations to get your e-commerce store to the level you expect it to be. This is probably not the best solution for someone with no design knowledge but it still strives to be a very user-friendly experience while still offering a number of advanced features.

Magento

Magento is an open-source e-commerce software that is among the most popular solutions available to businesses today. Its powerful, customizable platform provides you with a number of essential features. Plus, best of all, Magento is free to download. However, it should be noted that there are still costs associated with Magento since you will need to find your own web hosting, domain name provider, and more. Essentially, Magento should be looked at as a DIY solution for someone who has the experience and know-how needed to make the most of the platform.

That brings us to the major downside with Magento; its ease of use and customer support. Since this is an open-source, DIY solution there is no customer support to speak of. You will also be required to develop your own website in order to use Magento. For those who want the lowest cost platform possible, Magento is a great option. However, if you lack web development skills and the ability to troubleshoot issues yourself, Magento may prove to be more frustrating than helpful. Their enterprise platform does help bridge this gap but it is designed with larger businesses in mind and the cost is prohibitive for smaller businesses.

osCommerce

The “os” in osCommerce stands for open source. This e-commerce platform has been around for nearly two decades and, as a result, has a fanatic user and developer community behind it. However, it requires a lot of learning and experience to make the most of it. While its price may look nice, there are a number of places where you should expect to spend time and money to get your osCommerce store up and running.

It’s important not to overlook the benefit of having over 7000 integrations for this open-source software. You can use these integrations to customize your store and make it truly yours. However, past security issues and the learning curve required make osCommerce difficult to consider over the various other best online shopping cart software solutions available today. Doing things like managing SEO fall onto you and there is no easy way to optimize your SEO within osCommerce. Plus, their web design tools are subpar when compared with the competition. If you have used osCommerce in the past then you may be comfortable with the platform and the pricing is difficult to beat. However, if you are new to e-commerce then there are many other solutions with comparable features and friendlier user interfaces.

When does your business need shopping cart software?

There are essentially three main scenarios where you may find yourself shopping for and comparing the many different online shopping cart solutions available to you. Each situation is unique and depends a lot on the current state of your business.

Moving existing business online

The first, and most obvious, situation where you may explore these solutions is if you’re interested in moving your existing business online. In this scenario, you already have an established business but you want to make your products and services available to a greater number of potential customers. Creating an online presence is the obvious way to do that but it can be difficult putting the plan into action.

Having a platform that can bring everything you need into one place makes it easy to bring your existing business online. The cost for the platforms is far lower than what you would need to pay to hire the staff needed to build an in-house solution. And, best of all, many platforms offer significant levels of customization to make the online store look and feel like it was built just for your business. In other words, you get everything you could possibly want or need at a fraction of the cost of doing it yourself.

A lot of platforms will even help you manage your inventory across all channels where you do business. This means that your in-store sales and online sales can sync and update automatically so your inventory numbers are always accurate. When you run out of stock, your online store can indicate this to customers and notify you so that you have the opportunity to restock without having to do a physical count of your inventory. It’s important to know that e-commerce platforms don’t always mean you have to do business online only. In fact, they can make doing business in a physical retail store easier than ever before.

Launching a brand new business

Another situation where you may want to consider online shopping cart platforms is if you’re launching a brand-new business where you will be focusing your efforts in online sales. The process for setting up this kind of store is similar to if you had an existing business but you have the benefit of starting with a clean slate and choosing the perfect solution for your needs. 

For businesses with no current web presence, many e-commerce platforms offer website-building tools to help get you online fast with professional themes that you can customize. Listing your products is only half the battle, you need to make sure you have a professional website for customers to visit and get to know you. In addition to adding product photos you may also wish to add features like a blog, for example.

One nice feature that many platforms offer is the ability to choose between available tiers that are best suited to your budget and store requirements. As you grow, you can opt for higher-tier plans with more features. This flexibility is great, especially if you’re launching a new business on a limited budget. There’s no need to put down significant amounts of money up-front for your shopping cart platform of choice which allows you to invest in other areas of your business and keep everything within budget.

Already have an online store but are unhappy

Some subpar solutions may not offer important features like social media integration, inventory management across all of your channels, and marketing capabilities. Just because you already have an online store doesn’t mean you have to settle for less. Shopping around for a new online shopping cart software could be a good idea if you aren’t currently satisfied.

Luckily, it’s often very easy to switch between providers. There may be some initial setup required but there may also be the opportunity to transfer some data from one provider to the other to make setup smoother.

Check out our guide to E-commerce Order Fulfillment and Shipping

 

How to choose an e-commerce shopping cart software

\Many platforms offer similar features but finding the right platform with the right combination of features is important to ensure you get the level of service for both you and your customers that you expect.

Hosted e-commerce platform vs. plugin

The first feature you will need to consider is whether you want to use a hosted e-commerce platform or a platform that plugs into your existing website. This can be a major decision and it depends a lot on how you feel about your current website or if you even have a current website at all. 

Many platforms offer a fully hosted solution that gives you everything you need to launch an online shopping experience in one package. This includes essential features like website building in addition to online shopping cart features like payment management and invoice generation.

The website building functionality of a hosted solution is a very nice addition if you need to create your own website in addition to offering a shopping cart payment portal. Many of these platforms have very easy-to-use website building functions and you don’t need to know code or have a background in web design to create a professional website. This helps keep costs down and gives you the ability to quickly launch a website with a shopping cart payment portal so you can begin earning money right away.

If you already have a web presence then you may prefer to opt for a plugin that simply adds a shopping cart to your website rather than building an entirely new website from the ground up. 

For example, if you have a WordPress website then there will be several e-commerce plugins that you can choose from which enable many of the same features as a hosted e-commerce solution.

Inventory management

This is probably the most important feature to consider when looking at shopping cart platforms for your business. Many solutions offer the ability to manage inventories across multiple channels including brick and mortar retail. 

As your business grows, being able to manage inventory easily is going to be important. Not only do you need to be able to add new products and edit existing products, but you also need to have inventory numbers updated instantly to ensure that customers are aware when a product has sold out. This can eliminate poor customer experiences where they later find out the product they wanted is unavailable or back-ordered. For you, it also means that you can easily see which inventory you’re running low on without having to do a manual count of inventory.

Payment methods

Most of these platforms allow you to accept credit cards and other common payment methods for a small fee. We will get more into fees and pricing later but you should always check which payment options are supported by the platform before making a final decision. 

Having other payment options like PayPal, for example, in addition to credit card payments makes it easier for customers to do business with you.

Finding a platform that helps you create, manage, and accept gift cards or offline payments can seamlessly bring all payment options to you with one solution. 

For example, there are a number of e-commerce companies that offer POS terminals for your physical locations. This means that you don’t need additional services to manage offline sales. Everything is packed into one package and you can manage all payments through a single platform. This level of convenience can also help you reduce costs and stress since you don’t have to deal with multiple companies to provide a single service.

Help with marketing

Some platforms will collect the email addresses of customers and allow you to create marketing communications to easily connect with customers and drive additional business. Having this as part of your e-commerce platform is nice because it means you don’t need to find an additional service to manage your online marketing which would cost you even more money. Finding an all-in-one solution can be very convenient and cost-effective.

You may also want to have the ability to create and accept coupons as a part of your marketing efforts. Most e-commerce platforms give you this capability which can be a helpful and easy way to increase your marketing efforts and grow sales. With just a few clicks of your mouse, you can have custom coupon codes created, set expiry dates, and more. All of this is an essential part of your overall marketing plan.

Apps or plugins

Many platforms also offer apps or plugins for both iOS and Android phones that can be used with their services to enable additional features and functionality. Some platforms even allow third parties to build apps for their e-commerce shopping cart software so you can gain access to services that may not be directly built into the platform. 

Having these apps and plugins available gives you the ability to customize your experience even more. One popular app you may find on some platforms could be an abandoned cart app that automatically follows up with users that have filled a cart with products but failed to complete the checkout process. To help them take that final step and provide payment you could set up the app to automatically email customers with abandoned carts and provide a small discount coupon.

Social media integration

Social media integration is also an important feature to consider, especially if you plan on selling on other platforms beyond just your own website. 

For example, Facebook is the most popular social network and it has become a popular place for people to connect with businesses. Instead of redirecting customers to your website to complete a sale, many e-commerce platforms offer you the ability to add a button that allows them to check out right through Facebook without having to be redirected. The same concept applies if you hope to list on other websites like Etsy or Amazon. 

Why limit your sales channels? The best e-commerce shopping cart software solutions give you the power to sell wherever your customers are.

Customer support

While many of these platforms are easy to use, there is no guarantee you won’t run into challenges at some point. Look for providers that offer 24/7 support as well as a variety of ways to contact them that are most convenient for you. 

While sending an email is convenient, it may not be the best solution if you need an answer right away. Is support available by phone or live chat? This is an important thing to consider before beginning your e-commerce journey.

Ease of use

You want something that is going to be convenient for you. Many platforms offer different levels of convenience features that may or may not apply to what you’re looking for. 

Examples of this could include pre-built templates for web design, mobile apps for editing or monitoring your online store, a blogging platform to provide content to your customers, and more. Determine which features are important to you and then shop for an e-commerce platform based on those needs.

 

The cost of having an e-commerce platform

Prices can range quite significantly depending on the features that you need and the cost of processing payments. Generally, there are two ways that you will pay for your online shopping cart service:

• monthly or annual subscription fees
• transaction fees

Subscription fees are often the first cost you will have to consider. 

These fees are typically paid on a per-month basis although some platforms may require annual plans. You may also have the ability to choose an annual plan in order to save money when compared with the monthly cost. 

For a fully-featured e-commerce platform, you should expect to pay around $20 per month at a minimum. For additional features, there could be higher subscription fees depending on the provider. Of course, the base subscription fee may not meet all of your needs. Most online shopping cart providers offer tiered plans that increase based on the number of features offered within the plan. 

Another factor that can determine the cost of your subscription and the tier that you sign up for is the number of products you plan to list. 

For example, you may find that a company’s base plan only allows you to list 20 products. For some businesses, this may be fine. However, other businesses that plan to list hundreds of products initially may need to opt for a more expensive pricing tier. It’s important to check on any limitations like this before making your final decision.

Customer service can also determine how much you pay for your shopping cart software. 

You may find that some platforms offer VIP customer service that puts you at the front of the queue when you reach out for help. If you aren’t experienced in operating your own online shopping platform then you may want to opt for this additional level of service at a higher cost. On the other hand, if you’re confident in your skills and don’t feel you will need instant access to customer support, you may be able to save some money with a lower pricing tier.

One feature that can drastically affect the price you pay is the ability to pay for a professional designer to build your website for you. 

Many shopping cart platforms with a built-in website editor will offer the option to have one of their staff build your e-commerce website for you. This can be a significant cost but it’s still far lower than hiring your own in-house web designer. It’s important to keep in mind that many of these platforms are built to be easy-to-use even for inexperienced designers. With that said, if you would rather pay to have the job done right then there is the option to do so.

The second aspect of the cost comes down to transaction costs when processing payments. 

This is where the volume of business you do can have a huge impact on how much you pay to have an online shopping platform. In most cases, shopping cart providers will charge you a fee per transaction. This fee can vary wildly from provider to provider. Generally speaking, there are two different fee structures. The first structure uses a minimum amount plus a percentage of the transaction. For example, you may pay 25 cents per transaction plus 1.5% of the total value of the transaction.

Other companies will charge you no initial fee but may charge a higher percentage on the transaction. For these companies, you may see a transaction fee upwards of 3%. How you determine what is best for you will largely depend on the value of your items. If you sell lower-cost items then a higher transaction fee with no initial amount may be preferable. However, if you sell more expensive items, a lower transaction fee could save you a lot of money on every transaction.

You may also notice that some shopping cart platforms offer lower fees based on the tier of subscription you opt for. This is where you may need to do some math to determine if the value is right for your business. For example, a lower transaction fee may seem enticing at first. However, if the monthly subscription fee is significantly higher to earn the lower transaction fee then you would need to do enough volume in order to justify the savings on the lower fees when compared with the increased subscription cost.

What’s important to understand about pricing when it comes to e-commerce solutions is that you should always be assessing whether or not you are getting the best pricing available to you. A new business may not do enough volume to justify paying for a higher-tiered plan in order to get lower transaction fees. However, as the business grows, the number of transactions may increase to the point where moving to a higher tier plan is a smart idea. 

Be sure to monitor how much you are paying for your shopping cart software subscriptions as well as how much you are paying for transactions and adjust your plan accordingly as you see fit.

It should be mentioned that there are some free e-commerce platforms available on the market. 

These platforms are very good but they do require a lot of leg work to get up and running.

While some platforms may have higher fees associated, they do include things like domain name registration, web hosting, and customer support. Free shopping cart platforms typically do not have these features and you will find yourself spending some money in one way or another. With that said, if you have the experience to make use of a free platform then you may be able to save some money in the long run.

The post Best Shopping Cart Software for Small Business (2023) first appeared on Chamber of Commerce.

The reality is, however, that brick and mortar stores are still relevant but the way they sell to customers has changed. Ecommerce has become an important part of their business models; it is what enables them to effectively compete against businesses that sell exclusively online. In fact, CNBC states that $4.2 trillion is earned in the US retail industry with 475 billion (13 percent) of these sales occurring online.

Smart brick and mortar stores offer a multi-faceted customer experience that involves in-store and online experiences. These stores, along with their online e-commerce competitors, often face challenges with order fulfillment. Shopping online may seem like a blessing in disguise for the consumer, but it can be a nightmare for retailers that do not use the right order fulfillment services.

Check out our guide to E-commerce Order Fulfillment and Shipping

What are order fulfillment services?

Order fulfillment services are best described as inventory management platforms that help businesses receive, process, and deliver orders to customers. There are over 600 order fulfillment services worldwide.

Some of the best are:

1. ShipBob
2. Americommerce
3. FedEx
4. FBA
5. Rakuten
6. Red Stag
7. Shipmonk
8. Shipwire
9. Shipstation

How do e-commerce fulfillment services work?

Order fulfillment services make it easier to provide customers with the best buying experience. It may seem feasible for a small e-commerce business that sells less than 10 products daily to store inventory in the owner’s garage and manage its own order fulfillment. And in reality, this is probably the best thing to do with such a small business.

Yet, companies with a high order volume face a higher level of difficulty. Managing inventory levels and fulfilling orders can become quite tedious when thousands of e-commerce orders are being processed on a monthly, weekly, or daily basis.

This is where order fulfillment providers fill the gap. Each order fulfillment service company covers 4 broad phases of order fulfillment: managing stock, receiving orders, packing orders, and shipping orders direct to consumer. Here is a breakdown of what happens during each phase.

Phase 1: Managing stock

An order fulfillment service company is active on every level of the supply chain: receiving products from the manufacturer, sorting them, and storing them in a warehouse. Notification is required, usually in the form of a purchase order, prior to the shipment arriving at the warehouse.

One of the benefits of this stage of the process is that the order fulfillment service company will record damaged inventory and notify the e-commerce business immediately. Notifications will also be sent if the delivery is short. The team at the e-commerce business can then follow-up with the manufacturer to get a reimbursement or have another batch of goods shipped.

Order fulfillment services use Stock Keeping Unit (SKU) numbers and barcodes to organize inventory received from an array of e-commerce stores. The company may either assign its own unique identifiers to the e-commerce business’s products or use identifiers that the business already has. When goods are received, they are labeled and moved to storage.

Storage is either front-of-the-house or back-of-the-house. Front-of-the-house storage makes goods easily accessible when customer orders need to be filled. High quantities of the best performing products tend to be stored at the front-of-the-house for easy access when customer orders need to be filled. Excess or low-performing products are stored in the back-of-the-house which is sometimes a basement storage area. The performance of inventory is tracked so that the order fulfillment services company knows where best to store the products and can guide the e-commerce business with inventory purchases from the manufacturer.

Phase 2: Receiving orders

A customer clicks the “Buy Now” button. What happens next? The speed with which the order is processed depends on whether the e-commerce company uses: an order management system, a top e-commerce platform (such as Shopify), or neither. Most order fulfillment services can integrate their software platforms with an existing order management system or top e-commerce platform. If neither of these options exists, orders can be manually keyed into the order fulfillment service’s customer portal by the e-commerce company’s team.

Complete integration is the best option. It ensures that an order is registered in real-time the moment a customer adds an item to their shopping cart and clicks the “Buy Now” button. The order is fulfilled at a faster rate using this option. On the other hand, manually inputting the information means that it has to pass through the hands of more than one person and is more prone to human errors. It will also take longer to fulfill customer orders.

Phase 3: Packing orders

The team at the order fulfillment services company collects the ordered product(s) from the storage area and matches them against the customer’s order. The product(s) is then carefully packed, with correct labeling and inserts, into appropriate shipping boxes or envelopes to ensure safe delivery. Several products can be packaged together to create a group of products that customers can purchase.

Phase 4: Shipping orders

It is shipping time! Packed orders are sealed, weighed, and labeled for shipment using the shipping method chosen by the customer. If no shipping method was chosen, the order fulfillment services company will use the most affordable shipping solution. These companies tend to batch orders from different e-commerce businesses together for shipment thus reducing shipping costs. This process is called kitting.

How do order fulfillment services handle customer returns?

Managing customer returns can be challenging. An order fulfillment service company can handle customer returns at a cost. Most of these companies will declare their fees upfront in their packages. However, it may be necessary to discuss these fees so that there is a clear understanding of how much it will cost the e-commerce business. Return costs can burn a hole through the e-commerce business’ bottom line, especially if the business operates in an industry with a high return rate.

Here is how the process works if the customer returns service is used:

1. The customer sends a message to the order fulfillment company’s support staff indicating the need to return an item.
2. The support staff directs the customer to the return address on the packaging. This is the order fulfillment service company’s address.
3. The customer returns the item to the address.
4. The order fulfillment service company’s team unpacks the item and examines it to determine if it follows the e-commerce company’s return policy.
5. The e-commerce company decides if the item is resellable, can be used in a clearance sale, or needs to be thrown out.

Is it better to use several third-party service providers or one order fulfillment service?

The order fulfillment process has several components. Some companies specialize in one element of the process but order fulfillment service companies provide support for all phases. For instance, business process outsourcing (BPO) companies can handle customer support queries related to orders but they tend not to handle storing, packaging, and shipping products.

Large e-commerce businesses usually have a strong logistics system, or utilize dropshipping, and may not benefit from outsourcing all of the order fulfillment process. However, they may benefit from outsourcing elements such as customer service. Small e-commerce businesses benefit more from hiring an order fulfillment service company because they need support for all stages of the process, not a few.

Are order fulfillment services better than in-house fulfillment?

Both have their pros and cons. In-house fulfillment occurs when the business completes all elements of the order fulfillment process internally. The major benefit of this form of fulfillment is that managers have a better handle on what is happening at each stage of the process, especially if the inventory size is very small. However, it can become increasingly costly and over-complicate the logistics process.

The benefits of an order fulfillment service are described in another section of this article. However, lack of control is a major pitfall of using an order fulfillment service. Trust is paramount in the relationship between the e-commerce business and the order fulfillment service company. This makes it very important to choose the order fulfillment service company wisely because the wrong company can mar the business’ reputation. Details about what to look for are provided in another section of this article.

Why are order fulfillment services important?

The simplest answer is that order fulfillment services make running an e-commerce business easier. Warehouse management and customer returns are time-consuming, labor-intensive processes that can eat away at an e-commerce business’s human, monetary, and physical resources.

There are 6 ways that order fulfillment services make running an e-commerce business simpler:

1. Reduce shipping costs
2. Lessen operating expenses
3. Provide statistics about product performance
4. Expand geographic reach
5. Improve customer service
6. Facilitate quick order processing

Reduce shipping costs

An e-commerce store that does its own order fulfillment will experience high shipping costs. High shipping costs increase the selling price of products and ultimately turn away customers. Some e-commerce companies may attempt to counteract the loss of customers by drastically reducing the selling price to a point where the business’ expenses cannot be covered.

An Online Shopping Customer Experience Study conducted by UPS revealed that “73 percent of shoppers expect affordable, fast deliveries when they shop online.” One of the ways order fulfillment services make it possible to sell products at affordable rates is by lowering shipping prices in 2 ways.

Firstly, these companies get lower rates from shipping companies because of the number of products they ship. Remember that order fulfillment services ship products for a wide range of companies. Therefore, shipments are done in large batches and the shipping company provides a discount.

Secondly, an e-commerce company can work with order fulfillment services in various locations. Proximity reduces shipping costs. For instance, an e-commerce store may sell products to customers in New York and Florida. Shipping from a central location in America can be beneficial. However, using order fulfillment services that have warehouses in New York and Florida will drastically reduce shipping costs to customers in those areas. Furthermore, shipping from a central location can become a logistics nightmare if orders are from customers located far away.

Lessen operating expenses

Running a warehouse is expensive. There are labor fees, storage fees, loading and unloading fees, shipping fees, return fees, maintenance fees, risk management fees… too many fees to keep track of. Order fulfillment services absorb those fees and charge online retailers a monthly fee based on storage space occupied and services required. The monthly fee is far less than what it would cost to run a full-fledged warehouse.

Product performance statistics

An online store hosting website, such as Shopify, can provide an e-commerce store with all the statistics needed to track sales. However, an order fulfillment service company takes it a step further by providing details about inventory storage and handling. For instance, the order fulfillment service company can provide details about how quickly products sell, and therefore where they are stored in the warehouse, based on the orders received on a monthly basis directly from the e-commerce website. The company can also provide details about the number of damaged goods supplied by a manufacturer on a monthly basis. This information can help identify a pattern and determine whether a new manufacturer is necessary.

Expand geographic reach

The logistics of international, and even state-to-state, shipping can be a lot to manage. Most order fulfillment services have established a robust network of order fulfillment partners that make it possible to ship anywhere in the world. The e-commerce business can, therefore, expand into new territory.

Improve customer service

Order fulfillment services offer round-the-clock telephone and email customer support for an additional fee. Therefore, the burden of handling customer returns, exchanges, and refunds no longer rests solely on the online retailer’s shoulders. This is an important point because Harris Interactive reports that “89 percent of consumers have switched to doing business with a competitor following a poor customer experience.” Order fulfillment services have customer service units that work like well-oiled machines; the aim is to always ensure that each customer’s issue is resolved.

Facilitate quick order processing

This was mentioned earlier but it is so important that it is being mentioned again. Customers demand quick shipping and a variety of delivery options. Complete integration with the order fulfillment service’s order management system makes it much easier to meet these customer demands. Customers will be happier and the e-commerce business will grow.

What are the most important things to look for in order fulfillment services?

The R-I-C-H principle can help an online retailer identify the most important things to look for in order fulfillment services.

R – Reviews and referrals

The best way to understand how well an order fulfillment service works is to read reviews and ask other businesses for referrals. Online retailers can follow these steps to get honest reviews about order fulfillment services.

1. Visit the order fulfillment service’s website.
2. Identify 3 of the clients listed.
3. Visit the client’s website and get the contact information for someone who may provide a review.
4. Contact the person and ask if there have been any challenges with using the service.

This may seem like a feasible idea on paper. However, it may be difficult to get feedback this way; people are busy and may be reluctant to provide an honest review when approached this way. Another option could be to contact other online retailers and ask for feedback on the order fulfillment services they use.

Another option is to read the review of 8 of the best order fulfillment service companies provided at the end of this article. This review provides an unbiased opinion of these companies. Therefore, an online retailer can use it as a guide for choosing the best order fulfillment service.

I – Innovation

The online retail industry is constantly changing. Online fulfillment services must remain current and be able to meet the new customer order demands. Some questions to ask include:

• Is the technology that the company uses outdated?
• Does the company use logistics best practices?
• Are the fulfillment solutions easy to understand and representative of the modern consumer?

C – Credentials and experience

Trust is important for any relationship with an order fulfillment service. A trustworthy order fulfillment service company will have these credentials:

• Business license
• Storage warehouse license
• Liability insurance
• Relevant permits such as a food handler permit if the company deals with food-related products

An experienced order fulfillment service navigates the order fulfillment process with minimal mistakes. Inexperienced order fulfillment service companies tend to learn as they go and an online retailer would not want this company to take risks with their products.

H – Holistic view of the business

It is important to get a bird’s eye view of the order fulfillment service company because there are several factors that can affect the order fulfillment process. These factors include:

• Pricing
• Size of warehouse
• Number of employees
• Location
• Specialization
• Shipping services offered
• Error policy
• Length of contract
• Branding Options

Pricing will be discussed in further detail in the next section. Further information about the other factors is provided below.

Size of warehouse and number of employees

Online retailers only pay for space they occupy in an order fulfillment services’ warehouse which results in huge cost savings. However, the size of an order fulfillment service company’s warehouse can indicate the number of customers it has and, therefore, its size. The same is true for the number of employees the company has; more employees indicates a larger order fulfillment company and, therefore, hire service charges. Startup order fulfillment companies typically have smaller warehouses, less staff, and lower rates when compared with their more experienced counterparts.

Another important consideration is whether the online retailer sells enough products to establish a financially viable relationship with an order fulfillment company. More experienced order fulfillment companies with larger storage facilities tend not to establish relationships with companies that sell a low volume of goods. On the other hand, an order fulfillment company with a smaller storage facility may be willing to accept such a company.

Location of the warehouse

Shipping costs are drastically reduced for customers when the warehouse is close to them. Therefore, customers are more inclined to purchase additional products. Online retailers consider 1 or more of these factors when deciding whether an order fulfillment services’ location is ideal:

• Proximity to the manufacturer
• Proximity to the customer
• Proximity to the online retailer’s physical location

In an ideal world, the warehouse would have the right combination of all 3 thus reducing overall shipping costs.

Specialization of the warehouse

Order fulfillment service companies tend to specialize in specific products. For instance, an order fulfillment service company that specializes in food and beverage products will have the required storage and shipping equipment to keep the products at industry standards.

Shipping services offered

An order fulfillment company can offer shipping through its own fleet or through a special contractual arrangement with a shipping company. Knowing the option offered is important because it affects the shipping rates passed on to online retailers. It also affects the discounts online retailers can access from the order fulfillment company.

Error policy

Errors are bound to occur with any order fulfillment company. More experienced companies will make fewer errors but errors will always exist. Paying for errors is costly so it should be clear from the get-go who will foot the bill. Credible order fulfillment companies will absorb these costs and have a strategy in place for correcting the errors.

Length of contract

Some order fulfillment service companies will lock the online retailer into a long-term contract with strict penalties if the contract is broken. Others may offer shorter contracts with no penalties.The online retailer should assess whether the length and terms of the contract will result in long-term issues as the company grows.

Branding options

Order fulfillment companies do not display their branding on the packages they distribute. In fact, online retailers can customize product packaging and include special notes to customers. The customers would never know that the product was not shipped directly from the online retailer.

What is the typical pricing structure for order fulfillment services?

Price is another important consideration when choosing an order fulfillment service company. Pricing structures differ from one order fulfillment company to the next, but rates are given on a per order basis and tend to be broken down into the following areas:

• Stock receiving
• Stock sorting and storage
• Order packaging
• Shipping
• Kitting
• Customer service

Generally, one of the pricing models shown in the table below is used. However, there is no steadfast rule that says order fulfillment services should stick to a prescribed pricing structure. Ecommerce store managers should, therefore, visit the order fulfillment service company’s website to get further details about the pricing structure used.

Most order fulfillment service companies bill on a monthly basis and prices can exceed $5,000 per month depending on:

• Storage space occupied
• Number of goods received from the manufacturer
• Number of goods shipped
• Number of kitting services required
• How often customer service is used

What are the best fulfillment services?

Order fulfillment services are godsends for small e-commerce businesses.  There are over 600 to choose from but this article looks at the 8 best online fulfillment services in the market. The owner of a small e-commerce business can use this comparative analysis to make an informed decision about the best order fulfillment service for the business.

ShipBob

ShipBob offers same-day shipping from its 5 fulfillment centers to customers in Chicago, Los Angeles, New York, San Francisco, and Dallas. Two-day shipping is available to other locations in America.

This order fulfillment service is ideal for SMEs that need batch fulfillment. The platform is simple and user-friendly and can be seamlessly integrated with e-commerce websites such as Shopify.

Americommerce

Americommerce is a full-scale eCommerce solution, in the form of a slick software package. It features all the necessary tools to help entrepreneurs sell products online. While not as popular as alternatives like Shopify, Americommerce has over a decade of experience, and many top-tier clients. 

Business owners can use Americommerce to build, operate, and analyze eCommerce operations. From setting up a first store to managing your 100th launch, Americommerce can be helpful at every stage of the eCommerce journey. One of its biggest selling points is that it allows users to manage multiple storefronts from one admin panel, which can be a huge time-saver for some businesses. 

There are a variety of prebuilt templates available, which make it simple to launch a new project. Americommerce has many powerful features and tools built-in to the system, so it doesn’t rely too heavily on third-party apps. 

Plans start from $25 per month and scale up to $300 per month (depending on the size of your operation). Americommerce also has payment processing available, at a cost of 2.9% of the transaction, plus $0.30 per transaction. Alternatively, the system integrates with 40+ payment processing platforms, including PayPal, Stripe and others. So, you don’t have to use Americommerce’s in-house payment processing, but the option is there. 

Overall, Americommerce is a powerful and versatile eCommerce platform for any online entrepreneur. It may not have all the bells and whistles of some flashy new competitors, but it offers a quality product at a fair price. 

Pros

• You can manage multiple storefronts from one login/admin panel
• Offers a 14-day free trial
• Competitive pricing (from $25/month)
• Sell retail and wholesale on one platform
• Integrates seamlessly with 100+ software and apps
• Integration with 40+ payment processing services
• Intuitive interface
• Advanced eCommerce features

Cons

• Customer support has limited operating hours
• Limited selection of prebuilt themes and templates
• Limited resources and features for international sales

See the full review of Americommerce here.

FedEx Fulfillment

FedEx Fulfillment began in 2017 to specifically meet the logistics needs of small and medium enterprises (SMEs). Online retailers can benefit from the track-record of FedEx Fulfillment’s parent company, FedEx, which has 48 years of third-party logistics experience.

The best features of this order fulfillment service are its:

• Multi-platform integration with online marketplaces and websites
• Ability to reach customers around the world with international shipping
• Ability to meet the specific logistics needs of the SME
• Reverse logistics that enable efficient processing of customer returns
• Inventory tracking
• Trend analysis

There have been complaints about discrepancies with tracking large inventory, however. FedEx Fulfillment is better for online retailers that stock less than 100 products on a monthly basis, as well as those who have heavy international fulfillment needs.

Fulfillment by Amazon (FBA)

Amazon is arguably the leading marketplace for buying and selling goods online, thanks in part to its extremely popular Amazon Prime option for super fast shipping. It is a no-brainer for most online retailers to use Amazon as a platform to easily ship products to consumers.

Amazon FBA facilitates this process by coordinating the logistics of receiving, storing, packing, and shipping products from Amazon’s warehouses and distribution centers across the world, which makes it easier than ever for online retailers to reach more customers. FBA also allows online retailers to integrate with other channels such as an e-commerce website.

Rakuten Super Logistics

Rakuten is another popular e-commerce fulfillment company, with 12 fulfillment centers and 1-day shipping in America. One of its best features is its shipping cost optimizer. An online retailer can use it to determine the most affordable shipping methods based on the delivery speed chosen.

Like other platforms, Rakuten offers multi-channel integration and equips the online retailer with inventory, shipping, and analysis tools. In fact, Rakuten’s unique fulfillment software tools are some of the best in the industry.

Red Stag Fulfillment

Red Stag has been touted as one of the best options for satisfying the fulfillment needs of large, bulky products because of its affordable storage fees for products of that size.  Orders shipped by the manufacturer are collected and processed at the Red Stage warehouse within 2 days. They even offer light assembly if needed before shipping products to customers.

An online retailer can be reimbursed $50 if Red stag makes a mistake with any of the retailer’s products. Customers will receive their orders within 3 days.

Shipmonk

Shipmonk is one of the newest e-commerce order fulfillment services on the market since it began in 2014, but it is touted as one of the best order fulfillment services for startups and crowdfunding campaigns. Supporting users is a high priority for the team of Happiness Engineers who work assiduously to make both online retailers and their customers happy.

Integrations, customization, and warehouse automation are a strong part of the company’s framework.

Shipwire

Shipwire offers a robust network of global order fulfillment options. With warehouses in the US, China, Europe, Australia, and Asia, an online retailer that uses Shipwire can expand its customer base. Additionally, Shipwire supports both B2B and B2C order fulfillment. Its order routing technology provides users with the best shipping rates possible.

Customization is possible, users can compute shipping costs and several sales channels can be integrated thus centralizing order and shipment management. There have been some complaints about a lack of customer service, but this is still a good platform for online retailers that want to expand globally.

Shipstation

Shipstation began in 2011 in Austin, Texas, and is now owned by Stamps.com. Its simple user interface allows online retailers to automate order fulfillment processes. Business owners can ship both in America and internationally. Ecommerce experts from around the world can be contacted using the platform which is a valuable feature for inexperienced online retailers.

Since it is a Stamps.com company, there is seamless integration with the Stamps.com platform that allows users to take advantage of attractive USPS rates.

The post Best Order Fulfillment Services (2023) first appeared on Chamber of Commerce.

The post How to Accept Credit Card Payments Online first appeared on Chamber of Commerce.

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Processing payments is one of the most essential parts of running a business. If customers can’t pay the way that they want to pay, then chances are they won’t be regular customers in the future. Often, customers have no choice but to pay with their business credit card in order to separate business and personal expenses. People want convenience, flexibility, and choice when it comes to paying for their goods and services.

While cold hard cash is nice to have in hand, it’s becoming a less common way for people to pay. In fact, only 24% of transactions in the United States are done on a cash basis. This number is even lower in countries that have adopted cashless payments more quickly, which points to the future of how businesses and customers will interact. As such, it’s pretty safe to say that physical cash is on its way out.

This presents an obvious problem for businesses without credit card processors. If customers are carrying and using less cash, then the market for cash-only businesses is shrinking. Not only that, some people don’t even carry their debit or credit cards anymore opting instead to use their smartphones with contactless payment methods like Apple Pay or Google Pay.

So, how can small business owners stay ahead of the trend and ensure that they aren’t missing out on sales?

The simple answer is to find the best credit card processor and begin offering card transactions.

In the past, many business owners were hesitant to adopt mobile credit card processing capabilities because:

1. Cash was still king
2. Getting approved for a merchant account was a hassle
3. Credit card processing fees ate away at their profit margin.

Times have changed, however. Now that cash is becoming less popular, credit card processing has become more convenient, affordable, and less high-risk, as the advent of chip cards has made paying with a card safer for both the customer and business alike.

With so many different payment methods available today, accepting a wide variety of payment options is essential for businesses that want to deliver high-quality customer service. In other words, credit card processing capabilities are an essential part of the overall customer experience.

This article will break down the finer details of what credit card processing is, why small businesses should accept credit card payments, and recommendations of the best credit card processing companies.

Why do businesses need credit card processing companies?

So, why exactly does a business need to use credit card service providers?

1. A customer can’t hand over their credit card and take their purchase with them. Funds must be exchanged somehow, and that’s where a credit card processing provider steps in. They do all of the behind-the-scenes work to process payments and ensure that the funds are exchanged and appear in a businesses’ bank account in a timely fashion. This fast payment remittance is important, especially for small and medium businesses that rely on their monthly cash flow to fund operations, stock their shelves, and pay staff.
2. Credit card processing providers eliminate the complexities of managing payments and do the heavy lifting. This means businesses can focus on what they do best, which is taking care of the actual day-to-day logistics of the business.
3. Cashless transactions already make up a majority of payments in the United States, and that gap is only expected to continue to widen. A business that feels they can get by today with only accepting cash may find that is no longer true in just a few short years. By accepting accept credit cards and other cashless payment options now, businesses will be ready for the future, as opposed to scrambling to find a solution as sales begin to decline.
4. The growth of e-commerce and online transactions also adds a new dimension to paying for goods and services. Many businesses are now moving into the online space either as the main focus of their business or to complement their brick-and-mortar operations. Obviously, accepting cash for online payments during checkout isn’t a realistic solution. Online shopping is dominated by credit cards and, for businesses that want to be present on the Internet, finding a credit card processing company to work with is an essential step in getting up and running.
5. Ultimately, it all boils down to better customer service and increased sales. If a business is flexible and adaptable with the types of payment processing options it accepts, it will have a larger pool of potential customers. If it’s too rigid and refuses to adopt modern payment solutions or a point of sale system, it may find its sales declining as customers turn to businesses that will serve them in the way they wish to be served.

When do businesses need credit card processing companies?

The need for a credit card processing company could arise at any point in a business’ life cycle. With that said, there are defining moments when a business needs to stop and strongly consider working with a credit card processing provider in order to continue growing.

If a business is brand new

One of the most obvious times when a business will have a need for credit card processing is when they are just starting out. These businesses have no existing relationships with payment processors and need to get their operation off the ground. The need is especially important for new online businesses as a vast majority of their payments will come from customers using credit cards.

An established business with an established base of clients may be able to get away with only accepting cash if that’s what its customers have become accustomed to. A new business doesn’t have the luxury of a dedicated client base and, as such, must try to appeal to all customers, as well as their payment option of choice.

If an existing contract is up

Another important moment where businesses may identify the need for a credit card processing company is if it already has a processing provider but its contract is coming up for renewal. This is a great time to review costs, the needs of the business, the changing habits of consumers, and the features available. Reviewing options for credit card processing companies is like reviewing cell phone plans. When the plan is up for renewal, most look around for a better pricing structure (possibly a monthly subscription) and better features to suit its needs.

If a business is expanding

Businesses expanding operations into a new space, like startup online sales, for example, may also need to look into credit card processing companies. Another example of expanding into a new space would be if a business is launching a mobile operation in addition to its fixed, brick-and-mortar operation. A food truck is a great example of a type of business where credit card processing needs may change. In addition to needing a fixed, point of sale terminal, it may also need a mobile terminal, which means using a credit card processing provider that can deliver both.

If looking for more features to suit needs

Finally, there are some credit card processing companies that provide services beyond just mobile processing. Several companies have integrated services that are PCI compliant, can manage online stores, inventory, and customer marketing.  Others are seamlessly compatible with accounting platforms like Quickbooks.  This is ideal for small or medium businesses with limited resources for managing all of this with separate solutions.

Finding a single, unified product can help simplify overall business operations. If a business needs help bringing all of its payment systems together then finding the right payment processing company is incredibly useful.

It’s important to note that not all credit card processing companies can deliver on this. Therefore, it’s important to identify all business needs and shop around for the best processing solution.

Check out our guide on How to Accept Credit Card Payments Online

What should businesses look for when choosing a credit card processing company?

Not all credit card processing companies are built the same. Some cater to businesses looking for low fees or mobile solutions while others emphasize their additional features, like online store management. What works best for one business may not be the right solution for another.

Trustworthy, PCI Compliant

Obviously, the most basic aspect of credit card processing is actually processing and remitting payments, as well as maintaining PCI compliance. This is not a feature to overlook. Some credit card processing companies may provide support for credit card companies like Discover and American Express, in addition to the essentials like Visa and Mastercard. Others may only support Visa and Mastercard.

Multidevice

How payments are taken is also important. Does a company’s mobile card reader work with Android as well as Apple phones? Can users pay with NFC methods like Apple Pay or Google Pay? Does the company support EMV for added security? What about ACH? Are there mobile or online options available? Not all payment types may be necessary for your business, but a final decision can’t be made until the needs of your business and the services provided by the processing company have been considered and compared.

Upgrades

As previously mentioned, some companies provide all-in-one features beyond just credit card processing. This is important for a business owner to consider. Of course, these features often come at an additional cost, but they can help streamline business operations and potentially lower total costs in comparison to using multiple different companies for the same types of services.

For example, an online business may want to choose a credit card processing company that also provides an e-commerce store, inventory management, and marketing tools. A local restaurant, on the other hand, wouldn’t have a need for that same range of services. For new businesses or startups, these additional features can be a great opportunity to address multiple needs at once. Established businesses may also find that they can reduce costs by bundling services provided by several different companies into one complete solution.

Reliable customer support

Customer support is another important feature to look for when choosing a credit card processing company. If experiencing issues, a business needs to know that it can get back up and running quickly. Live online chat or 24/7 phone support are important features to consider. After all, if a credit card processing service fails to work it may end up turning away sales. This leads to a poor experience for customers and could have long-term effects on a business’s reputation. One lost sale due to payment processing issues could eventually equal dozens of lost sales over the long term, as customers begin to choose other options when spending their money.

Of course, the most important feature when it comes to credit card processing is the cost. After all, a business still needs to turn a profit after collecting payment.

What is the pricing for credit card processing?

The cost of processing credit cards may be the deciding factor for many businesses. After all, if a payment processor offers a wide range of features but its rates are significantly higher, those fees can eat away at profit margins fast enough to make the additional features worthless.

There are a number of different pricing models that credit card processors use.

• At a basic level, all credit card processors charge some sort of per-transaction fee.
• Some processors collect a flat rate, plus a percentage of the sale.
• Others will only collect a percentage of the sale.

There is no immediate advantage or disadvantage to either option. It largely boils down to the average sale.

• If a business sells big-ticket items it may benefit more by paying a flat fee plus a lower percentage per sale.
• If one sells lower-cost items it may benefit most by paying a percentage for each transaction, even if that percentage is a little higher.

In addition to transaction fees, there are other costs to consider.

Some credit card processing companies charge monthly or annual fees to use their service. In most cases, these fees translate into lower fees per transaction, but a business will have to determine if its volume of sales justifies the fee.

• In some cases, businesses that do less than $5,000 in card sales may be better served by paying higher transaction fees instead of a monthly fee that comes with lower transaction fees.
• High volume businesses, on the other hand, may benefit from a higher up-front fee that offers lower transaction fees.

Again, the benefits of different pricing structures will largely boil down to the individual needs and realities of a business.

Another cost to consider is whether there are any fees for renting or buying equipment. Credit card processing companies will either provide equipment for free and charge a monthly rental fee or charge upfront for payment terminals. In some cases, terminals can cost hundreds of dollars each. For businesses that need several terminals, this becomes a significant cost to incur before a single payment is processed.

Additional accessories like receipt printers or POS systems may also be available at an additional cost. Every business is different, so it’s important to identify needs before committing to any purchases or rentals of equipment.

Finally, a business needs to understand the terms and conditions of the agreement with its payment processor. Some credit card processing companies will require a contract for their services. If the business decides to cancel the agreement, the cancellation fee can be significant, so be aware of these types of hidden fees, since they could amount to the equivalent of tens of thousands of dollars in transaction fees.

Pay attention to a company’s policy on interchange rates, as well, since depending on the card a customer uses, a business could end up paying more than bargained for in interchange fees. Before signing the dotted line, do due diligence to ensure that the credit card processing service will meet needs and, if needs change, what the costs will be to change things in the future.

Best credit card processing companies

Now that you understand the important features and costs to consider when choosing a credit card processing provider, let’s take a look at the best names in the industry so that you make an informed choice for your business.

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National Processing

National Processing is a payment processor that’s geared towards small to medium-sized business owners. Its feature set is small but more than enough for businesses looking for a flexible and affordable payment processor.

The payment plans are industry-specific and cater to retail, restaurants, and eCommerce businesses. Higher-level plans are suited for businesses processing a very high volume of transactions.

Most plans also come equipped with a free POS, mobile reader, or terminal. You may purchase your own equipment or use the provided equipment as long as you have a plan. However, there is a cancellation fee for plans that utilize the free terminal and POS and end up terminating accounts early.

National Processing shines with its commitment to transparency. It’s one of the few credit card processors that includes its complete pricing breakdown, transaction pricing examples, along with hidden fees that might arise.

Not only that, but the prices are incredibly cheap, which makes it an attractive option to business owners on a budget. Finally, it has a stellar reputation online, both in the eyes of consumers and with the BBB.

See our full review of National processing here.

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Helcim

If you’re looking for flexibility and transparency with great rates, Helcim may be one of the best mobile credit card options on the market. The company does not lock businesses into long-term contracts, which also means there is no penalty to cancel the agreement.

A low monthly fee includes credit card processing with clear, low rates, online payment gateways, manual credit card processing using their desktop software, mobile payment options, and e-commerce shopping cart integration. Non-profits can enjoy reduced fees as well.

Of course, with no contract in place, you’ll need to pay for terminals upfront, which can run as high as $549 each. Helcim admits that they are not the most cost-effective solution for businesses that do less than $1,500 in monthly sales.

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Square

Square is arguably the best-known name in payment processing today. Their magstripe and chip readers that plug into mobile devices are recognizable anywhere and helped kickstart the mobile payment industry.

Square has evolved to be about more than just mobile payments, however. Their merchant terminals are professional and sleek with countless advanced options, including custom POS systems, inventory management, and custom payment prompts for their customers.

Plus, Square goes beyond just basic card processing with e-commerce support including a store building platform, niche products for restaurants or retailers, and invoicing options for customers.

With no monthly fee for their basic service and a very competitive rate, Square is ideal if you’re just starting out and need to keep costs low.

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PayPal

For online shoppers, PayPal is a trusted name that has been around for years. This makes it an obvious option if you’re looking to process credit card payments online. Their transaction fees are higher than some other processors, but there are plans available with no monthly fee.  Plus, getting started with PayPal payments is simple.

Users can also integrate PayPal into compatible POS systems for brick and mortar sales, plus PayPal Here offers mobile payment processing as well. The short-term loan service offered by PayPal gives businesses simple financing options, in addition to regular payment solutions, which offer customers an additional way to pay for goods even if they don’t have cash on hand right away.

The company also has a fair policy on chargebacks, reviewing each customer dispute before taking action. However, if you have a high volume of sales – more than $10,000 – you may find the transaction fees for PayPal to be too high and another option may prove to be more cost-effective.

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Stripe

Stripe is another very well-known name in the payment processing industry. If you currently use e-commerce services, you may already be familiar with Stripe, since it’s one of the default payment processing providers for some of the most popular services available.

It’s important to note, however, that Stripe is for more than just e-commerce stores and digital payments. Stripe can be integrated with compatible POS systems and their credit card terminals are more affordable than other options at just $299 for the most expensive model.

Stripe offers transparent pricing, and transaction fees are clear and easy to understand. Advanced features, however, do require some technical know-how to get running.

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First Data (Clover)

First Data isn’t a household name like Square, but it is one of the most popular payment processing providers in the business. This is partially because First Data allows resellers to use their backend services in order to provide service to customers. When signing up for First Data, you will be required to sign a contract and lease the equipment, which can be expensive.

In addition, termination fees are significant. First Data does provide quality features including payment terminals, e-commerce payment gateways, mobile terminals, and even a website builder for new e-commerce stores.

Their transaction fees are competitive with some of the best in the industry as well, but the tiered pricing is not always clear like with other providers and depends on volume.

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Shopify

Shopify is best known for its world-class e-commerce store service, which allows businesses to build and manage their own e-commerce store. Businesses who have done this also often opt to use Shopify’s payment processing service since it’s native to the platform. It’s important to note that Shopify payment processing can be used by more than just Shopify e-commerce store users, however.

Their POS terminals are modern and professional, plus their additional services like inventory management and marketing tools can bring together all aspects of your businesses’ operations, including brick and mortar stores, online selling, as well as mobile payments.

The fees for Shopify’s payment processing are competitive and high-volume businesses can enjoy reduced fees if they opt for a higher-tier plan, which includes the entire suite of Shopify products.

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Flagship Merchant Services

Flagship Merchant Services is a major player in the credit card processing industry. They offer a wide range of features that allow businesses of all sizes, across all industries, to begin accepting credit card and debit card payments. The up-front cost of Flagship Merchant Services is great with a free credit card reader provided and no setup fee for new users.

In addition, they also offer online payment gateways for e-commerce businesses as well as mobile payment options to help businesses address all areas of need for their business. There’s no cancellation penalty for ending service and the monthly fee is very reasonable.

Where Flagship Merchant Services falls behind the competition is their unclear, tiered pricing for transactions (although the company does have an interchange-plus pricing option) and subpar customer support outside normal business hours.

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Dharma Merchant Services

Dharma has a full-featured offering, with lower pricing than any other providers on this list. With no annual fees or contracts, Dharma has very friendly pricing if you’re looking for cost certainty. Their pricing is more suited for high-volume businesses that process upwards of $10,000 in sales per month. This obviously exceeds the sales of some small businesses and/or new businesses that are still ramping up to that level.

Dharma offers traditional payment terminals, as well as an online gateway for e-commerce stores. Their Kabbage financing offers merchants another way to help customers pay for their items by financing the purchase and making monthly payments. This additional option could help increase sales over and above the traditional credit or debit payment options available from other providers. 24/7 support and clear pricing round out Dharma’s list of benefits.

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Fattmerchant

If you’re looking for low transaction fees and want to avoid monthly minimums, virtual terminal provider FattMerchant fits the bill with their 0% markup. This means that FattMerchant only passes on the actual cost of credit card processing to you, instead of marking up the cost. So, how do they keep costs so low? They charge a flat monthly fee, which starts at $99. While this fee is higher than some competitors with monthly fees, businesses with enough volume to justify the cost should see significant savings over time.

Like other providers, FattMerchant offers countertop terminals, mobile terminals, e-commerce gateways, as well as their advanced API for businesses that want to truly customize the experience.

With no annual contract or cancellation fees, FattMerchant offers leading flexibility and cost assurance.

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Payment Depot

Payment Depot is a merchant services provider based in Orange, California. They provide merchant accounts to handle payment processing, but they are not a true payment processor themselves. Instead, they partner with Fiserv and TSYS Merchant Solutions, two of the largest payment processors in the US. Payment Depot is the front-facing company that you will sign up for and deal with for customer service, but Fiserv and TSYS will actually be processing the credit card payments.

Payment Depot also offers credit card terminals, point-of-sale systems, online payment processing, and even small business funding via merchant cash advances. They are known for quality customer service, which is available 24/7. 

The main advantage of Payment Depot is that they have a flat fee membership structure. You will pay $49 to $199 per month, plus $0.05 to $0.15 per transaction, depending on the package you choose. However, you won’t pay any marked-up percentage rates. Instead, you’ll pay the exact wholesale interchange fees that are charged directly by Visa, MasterCard, and the processing banks. 

Most payment processors will mark up this rate, adding a small percentage to each transaction. Payment Depot provides the exact wholesale rate, making no money on each transaction. Instead, they charge a flat monthly fee. 

This fee structure typically works best for companies that are processing a decent volume of transactions. In fact, typically the more you process, the more you will save with a company like Payment Depot. 

Pros

• Membership pricing structure helps most clients save money
• On average, Payment Depot users save $400 per month on fees
• Very transparent pricing structure with no hidden fees
• Wholesale interchange rates with no markups
• Offers POS systems, terminals, and other hardware
• Some plans offer free equipment
• No setup fee
• No application fee
• No cancellation fee
• Month-to-month billing
• Excellent customer support available 24/7

Cons

• Only for US merchants – international businesses are not supported at this time
• May not be cost-effective for companies with low sales volume 
• Does not accept “high risk” merchants

See the full review of Payment Depot here.

The post Best Credit Card Processing Companies (2023) first appeared on Chamber of Commerce.

In fact, about 70% of all transactions in the United States today are done as cashless transactions. More importantly, that number continues to grow. As such, it’s easy to see why having the ability to accept all payment types is important for any growing business.

Thankfully, there are a number of great options for businesses of all sizes to consider when they want to enable mobile payment processing. Not only does this allow businesses to collect payments in a range of payment methods that are convenient for their customers, but it also enables businesses to cut the tether from their storefront locations and old point of sale systems, and do business wherever they would like. Of course, there are also businesses that are entirely mobile, like food trucks, where mobile payment processing is the only solution for accepting non-cash payments.

While mobile payment processors have made it easy for businesses on-the-go to accept all types of payment, the challenge for many businesses is choosing the right provider. What features are important? How does pricing work? What are the drawbacks of choosing mobile payment processing? 

All of these questions can weigh heavily on small and medium business owners that are trying to complete their day-to-day duties in addition to worrying about payment processing. This article discusses the features and benefits of mobile payment processors, provides helpful tips for making the right choice, and allows business owners to comfortably embrace the future of payments while providing better service to customers.

Why do businesses need mobile payment processing?

Cashless payment methods are rapidly becoming more and more popular in the United States. It may come as a shock to some, but the United States actually lags behind other countries in cashless payment adoption. In Sweden, for example, the country is expected to be entirely cashless by 2025, with just 1% of transactions using cash. This is an extreme example, but it points to how people around the world will pay for things in the future. 

Simply put, businesses that don’t accept cashless payment methods will soon see their customer base shrink, year after year, as fewer people carry cash with them. This means turning away sales, missing out on revenue, and failing to remain profitable. So one of the main reasons businesses should consider mobile payment processing is because cash is quickly becoming a less popular way for customers to pay when out shopping.

Another major advantage of choosing mobile payment processing is that it’s more cost-effective for small businesses than signing a contract with a payment processing company through a financial institution. Machine rentals from many payment processors can cost hundreds of dollars per month, in addition to processing fees. 

For businesses that don’t have the volume to justify an expensive payment processing machine, mobile payment processors are a great solution. Plus, they typically don’t require businesses to sign contracts, which offers more flexibility in the future should the needs or transaction volume of the business change.

Mobile payment processing also gives businesses the ability to pursue new avenues for sales. On-site sales representatives, like those that may visit a customer’s home, can instantly take payments for services instead of invoicing clients and waiting for the payment to come through. This can instantly increase the cash flow, while also providing better customer service at the time of delivery. Businesses can also participate in events like public markets, trade shows, and festivals without having to settle for only collecting cash from potential customers. The possibilities when using mobile payment processing don’t stop at the front door of the store.

When do businesses need mobile payment processing?

There are a few scenarios in which business owners and operators might find themselves exploring mobile payment processing options. 

One of the most obvious times when a business should consider mobile payment processing is when it’s just launching. For new businesses, being able to accept payments affordably is incredibly important to success. New businesses often don’t have the volume of transactions or the need for an expensive payment processing service. Plus, they want a service that’s easy to set-up, maintain, and use while the focus on all of the other aspects of their business. New businesses also may not have a permanent physical location on launch depending on their needs and budget, which can make getting a traditional merchant account difficult, if not impossible. 

Another time businesses should look into the benefits of mobile payment processing is when they find that their current payment processing service is no longer working for them. Traditional payment processing providers have costly contracts and equipment that don’t offer nearly the level of flexibility as mobile payment processing. The costs of these traditional credit and debit payment terminals can greatly exceed the costs of a simple mobile payment processor unless the business does a large volume of transactions.  When a contract with a payment provider is coming due, it’s always wise to at least research alternative options to ensure the existing payment provider is living up to their end of the deal, and that there aren’t other better companies more suited to that specific business’s needs.

Finally, businesses that are exploring new avenues of business that don’t include their standard storefront location may identify a need for mobile payment processing. Restaurants launching a food truck or delivery service are great examples of this. Retailers may wish to visit trade shows where they need a flexible payment solution for customers. Service providers like plumbers or electricians that make home visits may want to simplify and streamline their invoicing system by offering instant payment at the door. 

All of these are great examples of changing business practices that may necessitate the need for a mobile payment processing option.

How to choose a mobile payment processor – and what to look for

There are a number of companies that offer mobile payment processing services. So, how do businesses determine which option is best? What separates one payment processor from another? Making the right choice here can have a huge impact on the costs passed along to the business and the level of service they are able to provide to their customers.

The first and most important feature to look for is how payments can be processed. Mobile payment processors come in two different forms:

• A standalone mobile card reader or terminal 
• An accessory-style terminal that plugs into a connected device like a tablet or smartphone 

Standalone readers tend to have a higher upfront cost but often enable additional payment options like a reader for chip cards as well as Apple Pay or Google Pay support which require NFC capabilities. Some of the accessory-style readers that plug into a smartphone only read a magnetic stripe once you swipe it, and won’t allow a customer to pay with their smartphone wallet, for example. Offering customers more ways to pay beyond just their card with a magnetic stripe or EMV chip can cast a wider net for sales, but it may also cost more money as well.

The type of business being operated and the specific use case for the mobile payment processor should also be an important factor to consider when choosing the style of terminal being used.

For example, a company with a rep doing door-to-door sales may want to opt for a more affordable mobile credit card reader that can attach to their employee’s Android and iOS smartphones for ease of use. This would minimize upfront costs, as well as lower the cost should a mobile terminal be lost or damaged.

A smaller business looking for a single terminal to be their main option, like in a food truck scenario, may wish to go with a full-featured option that costs more upfront but provides more payment options for customers than just credit cards.

One thing that often goes overlooked when choosing a mobile payment processor is the type of cards the processor can accept. Some of the more basic mobile payment processors only accept credit cards which leaves debit card users out in the cold. For a business, this can mean lost sales opportunities.

In addition, some processors may only accept Visa and Mastercard which leaves other credit card companies like AMEX and Discover unsupported. For some businesses, this may be a risk they are willing to take, while others may want to support all types of cards from all different banks and providers. Doing the right amount of research beforehand, as well as considering the pros and cons of each choice, can help lead to an informed decision.

Many mobile payment processing companies will also provide additional features that go over and above just basic payment processing. For example, some companies allow businesses to set up inventory tracking, barcode scanners, receipt printers, and even in-store terminals that bring their mobile operation together with their brick and mortar setup. These extra features can be very handy, especially for businesses that are getting started and have no previous agreement or equipment to handle these other aspects of their business. Of course, many of these features can come with an additional cost which must be weighed against the potential benefits of having a single, integrated system for payments, inventory, and more.  It all boils down to business needs.

Also keep in mind that a mobile payment processor should follow all the regulations to ensure PCI compliance, as well as handle some basic bookkeeping tasks. Being able to email receipts to customers and track sales, with reports provided to the business, is at minimum what a business should expect from their mobile payment provider. Some payment terminals can take things a step further by managing the product catalog, tracking tips for employees, and more. For business owners that want to simplify and streamline their bookkeeping, they may wish to opt for a mobile payment processor that includes these features. 

Of course, one of the most important factors to consider when it comes to any type of payment processing is the cost to the business.

Check out our roundup of the Best Mobile Credit Card Readers

How does pricing work for mobile payment processing?

Being able to accept mobile credit card payments is nice, but what is the cost of doing so? 

If the cost of processing cards adds up too quickly, then there is no real benefit for a business to offer this service to their customers. Luckily, mobile payment providers have come to market with a competitive rate and set of features that most business owners should be able to take advantage of, while still turning a profit. 

There are a few different ways businesses can incur a cost when using a mobile processing solution.

The first cost for these services is the upfront cost, which will vary from provider to provider based on the type of equipment being used, as well as the additional features being chosen.  Generally speaking, most mobile payment providers do not have significant setup fees or iron-clad contracts. 

With that said, some providers may have a small upfront setup fee, as well as fees for issuing payment terminals. The cost for terminals can vary anywhere from no cost at all to a few hundred dollars, depending on the features packed into the terminal. Free terminals will usually plug into a smartphone or tablet and only offer magnetic stripe reading capability while more expensive terminals may include a chip and pin reader, NFC connectivity, and built-in 3G or 4G.

The main cost that most businesses will be concerned about is the fees incurred for each transaction. These costs can vary from provider to provider but generally begin with a flat fee plus a percentage of each transaction. This percentage usually ranges anywhere from 2% to 4% and may depend on the type of transaction being processed. Some payment processors may opt to eliminate a flat initial fee and, instead, just charge a higher percentage on each purchase. These costs are very transparent from provider to provider and easy to compare when making a decision.  

Finally, the other common fee to consider when choosing a payment processing provider is the monthly or annual fee. Some providers do not charge a regular monthly or annual fee while others do. For businesses with a higher volume of transactions, paying this fee may be worth it as the providers with regular fees tend to collect less of a transaction percentage for each sale. Plans can also vary from provider to provider and some providers may even have multiple tiers. It’s important for businesses to consider the entire range of features they get for their fees as well as the volume of expected transactions. For example, a $20 monthly fee may seem steep compared to a no-fee provider but the lower transaction fees may more than makeup for that difference.

Now that you know what to look for in a mobile payment processor, it’s time to compare the main players in the industry. 

Square

Square is arguably the best-known name in mobile payment processing and that notoriety is completely deserved. In many ways, their basic magnetic stripe terminal – which attaches to smartphones, tablets, and iPads – has revolutionized and set the standard for mobile payments. Businesses can use Square with no monthly fee and just pay the low cost per transaction instead. In addition to basic payment processing, Square also offers customers advanced solutions like e-commerce support for online stores, desktop payment terminals, and niche products like POS systems designed specifically for retail and restaurants. 

Quickbooks GoPayment

Quickbooks GoPayment brings together mobile payment processing with the power of Quickbooks accounting software. This may be for business owners that want simple management of payments and accounting in one solution. The card readers are free for new users and support chip and magnetic stripe payments. Unfortunately, however, NFC is not currently supported. Users can choose between a free monthly plan with higher transaction fees, or pay $20 per month for lower fees. This is where Quickbooks GoPayment falls behind the competition. The fees may be worth it for the simplicity of the Quickbooks integration, but they are not competitive with other options when it comes to costs. The service also lacks additional features like POS terminals and inventory management.

PayPal Here

PayPal Here is PayPal’s attempt to break into the physical payment space. Everyone already knows the PayPal name for online shopping and online payments, and their PayPal Here product builds on that experience. The sleek payment terminals are affordable and the pin pad model can accept chip and pin, NFC, or magnetic stripe payments. PayPal Here also offers more advanced POS solutions with features like product management and inventory tracking but that offering lags well behind more experienced players in that space like Square and Shopify, for example. For basic payment processing, however, PayPal Here is an affordable option that checks off the most important boxes.

Dharma Merchant Services

Dharma Merchant Services is a lesser-known name in payment processing when compared with the likes of Square or PayPal but it is definitely not a name that businesses should ignore. Their $20 monthly fee may seem higher than the competition but that difference is quickly made up with the lower transaction fees. High volume stores that do more than $100,000 per month get discounted monthly rates and fees which can make a massive difference in costs for businesses. Dharma does lack some of the advanced features of other providers that extend beyond just payment processing but, as strictly a payment processor, it’s hard to beat the costs associated with using Dharma especially if you’re operating a high volume business. 

Chase Merchant Services

Chase is a very popular name in the payment processing industry. They offer both traditional and mobile payment processing services which makes them a smart option for mobile payment services if a business is already using their traditional payment processing. Their mobile processing service offers additional functionality for businesses on-the-go including catalogs, email or text receipts, searchable transaction reports, and more. Their fees are higher than some competitors but the integration with the other Chase Merchant Services means that businesses may find this is one of their most convenient options. 

Shopify

It’s hard to find a more well-known name in e-commerce than Shopify. For businesses already using the Shopify platform, using Shopify payments is the logical next step. The various plans from Shopify offer very competitive pricing with low monthly fees as well as low transaction costs. Where Shopify sets their offering apart from the competition is the additional features. Even on the lowest plan available, users can make use of the Facebook Buy Button and enjoy live chat or email support. On higher-tier plans, users can also integrate their inventory into Shopify, add a POS terminal for brick and mortar sales, and access advanced marketing tools. The full suite of Shopify products is what makes using Shopify payment processing a good choice for businesses of all sizes.

EMSPlus

EMSPlus combines a smartphone or tablet app with their mobile payment processor, much like the other providers on this list. Using the EMSPlus Merchant Gateway, businesses can sort transactions, manage inventory, and generate reports. The Bluetooth receipt printer is a nice, but costly, addition at $399. Fees for EMSPlus are competitive with other offerings and the interface is simple to use when processing payments on-the-go. The merchant portal does appear more dated and cumbersome than more advanced competitors but it gets the job done and enables businesses to take control over their transactions. Report generation tools are included which makes monitoring transactions simple.

Payanywhere

Payanywhere offers both brick and mortar as well as mobile payment solutions. For businesses with less than $5000 in monthly sales, the POS terminal may prove to be more than they need as the costs would be more efficient with the mobile payment solution. The basic payment processing plan comes packed with features like custom discounts, tipping, a customer database for future marketing, Quickbooks integration, and more. Businesses can create unique roles for multiple users which gives specific permissions to employees based on their position. The fees are lower than many competitors but the monthly cost is higher than some of the more affordable options. For high volume businesses, Payanywhere could be a money-saving option when compared with other free or low-cost competitors.

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