Perhaps you operate a small business selling goods or services and you want to create an Internet sales channel.  Or perhaps you have a great idea for a business selling goods or services and you want to start this business online.  Whatever the reason, you have many choices for how to create an online ecommerce site.  Let’s review your options and some pros and cons for each.

A large hosted e-commerce site, such as EBay or Amazon
You use a wizard to build your site and they host it all!

• PRO - Large operations, likely to be there tomorrow.
• PRO - Very little work required
• PRO - You can launch a site very quickly
• CON - Limitations on your branding
• CON - Limitations on customization
• CON - It is hard to migrate away from these sites; they control the sales data and unless you are careful, they can even control the domain name
• COST- Sites take a commission or charge a monthly fee

A smaller hosted e-commerce site, such as Shopify or eCrater
These services are very similar to the larger sites - with all the pros and cons above.  Two differences:

• The PRO of large operations is less positive.  For example, Rightcart which is no more was once a player in this space
• COST- Sites take a commission or charge a monthly fee - but typically cheaper than the bigger services

A back-end hosted e-commerce site, such as BV or GoECart
Vendors like these host the database and back-end functionality of the cart; you host the front end and modify it to your needs.

• PRO - Lots of customization options - you don’t have to follow the “standards” of an eBay or an Amazon - but not unlimited customization
• PRO - Few limitations on branding
• PRO - Rapid setup
• PRO - You own the data
• CON - Challenge to switch to another vendor/system
• CON - Make sure the company is reliable, has a history and will be there tomorrow.
• COST -  Sites take a commission or charge an ongoing monthly fee - typically among the most expensive option.

Ecommerce Template such as Zen Cart, OSCommerce, or Magento
Packages like these offer the ultimate in customizing. However more time and expertise is required to manage these systems.

• PRO - Unlimited customization
• PRO - Unlimited options for branding
• PRO - No commissions or monthly fees
• PRO - Migration is among the easiest - you can switch hosting company, credit card processor even consulting resource.
• PRO - Large communities with add-on modules and plugins to help customize your site.
• CON - Requires the highest technical skills - or reliance on a consultant resource
• CON - Not as quick to setup as other options
• COST - Monthly ongoing costs are primarily limited to web hosting; Front end costs are higher to get a developer - more affordable if you buy and customize an existing template

We’ve focused here on sites that are singularly focused on ecommerce.  If you need a mixture of content (blog or website) and some ecommerce then there are other options to consider with WordPress, Joomla and Drupal.

Related posts:

1. What’s the World Saying About Ecommerce Systems?
2. 10 Reasons to Love Magento
3. CW2 Shoppe osCommerce Theme
4. How to Select a Payment Gateway
5. Merchant Accounts - Your Key to Online Business