We'll cover four TCO drivers in this comparison
1. Platform Fees and Ecommerce Stack Costs
2. Operational and Support Costs
3. Implementation and Setup Costs
4. Conversion Rates on Both Platforms
Platform and Ecommerce
Shopify respondents reported the lowest platform costs on average, likely due to competitive platform fees and fewer third-party application needs. In contrast, platforms like WooCommerce require more support for managing and maintaining due to necessary version upgrades and security patches, which is supported as other platforms are 30% more expensive than Shopify.
30%
Other platforms are 30% more expensive than Shopify.
Operational and support costs
Shopify respondents indicated the lowest operating costs due to its operational simplicity and reduced need for developer support. Open-source platforms like WooCommerce incur additional infrastructure costs, such as hosting, because they require scalable computing and security infrastructure to handle large amounts of web traffic and transactions. Shopify's operating costs are 41% lower than that of Woocommerce.
41%
Shopify'soperating costs are 41% lower than that of Woocommerce.
Implementation and Set up Costs
Shopify respondents reported the lowest implementation costs due to its straightforward operation and reduced need for developer support. Open-source platforms like WooCommerce require additional infrastructure investments, such as hosting, as they need scalable computing and security setups to manage large web traffic and transactions. WooCommerce has 49% higher implementation costs and is 41% slower to set up and launch a storefront compared to Shopify.
49%
WooCommerce has 49% higher implementation costs and is 41% slower to set up and launch a storefront compared toShopify.
Conversion Rates
In some TCO calculations, the difference in conversion rates is treated as 'additional costs' because it represents value that businesses would capture if they were on Shopify instead. Assuming a 10% margin on goods sold, Shopify's average 17% higher conversion rate than WooCommerce's translated to a roughly 1.7& TCO offset when expressed as a percentage of the TCO.
17%
higher conversion rate
Conclusion
When evaluating the Total Cost of Ownership between Shopify and WooCommerce, Shopify consistently emerges as the more cost-effective option. With lower platform fees, reduced operational and support costs, and faster implementation and setup, Shopify minimizes expenses across the board. Furthermore, Shopify's higher conversion rates provide an additional financial advantage, translating into increased revenue for businesses. By choosing Shopify, businesses can benefit from a streamlined, efficient, and scalable ecommerce solution that not only reduces costs but also enhances overall performance and profitability. For those seeking a robust, cost-effective platform, Shopify proves to be a superior choice compared to WooCommerce.