What is BigCommerce?
BigCommerce is not really a venue or marketplace like most of the other sites we have talked about today.Instead they are a hosted eCommerce provider.
They handle all of the web hosting and shopping cart integration for your very own store. Let's look at some of the features:
- You can export items from your store to eBay.
- They help guide you through registering a domain name.
- Lots of promotional tools including a Facebook Fan Page Store, Email Marketing, and Coupon Codes.
- Inventory is automatically updated and even returns are processed easily.
- Buyers can shop from their Mobile Phone.
- Unlimited photos for items.
Since this is an all in one solution you also don't have worry about paying any Final Value Fees. Instead you will simply be paying to accept Credit Card payments and they guide you through the process of opening a merchant account. You can of course also open your own merchant account on your own as well. Of course their are some downsides as well:
- You need to be somewhat computer skilled to get your store customized.
- You pay a monthly fee for the store and the merchant account.
- You will probably need to pay to promote the store through various Ad Networks and Paid Search.
eBay Vs. BigCommerce
Head to
Head
Auction Fees |
Listing Fees |
Final Value Fees |
Payments Accepted |
Monthly Fees |
Alexa Site Ranking* |
Promotional Tools |
|
eBay |
First 50 Free Monthly
$0.99=$0.10
$9.99=$0.25 $24.99$0.50 $49.99=$0.75 $199.99=$1.00 $200+= $2.00 |
Buy It Now
$0.50
Media
$0.05
|
9% Of Total Payment Includes Shipping |
PayPal**
Merchant Accounts
|
None | 21 | eBay Site Traffic |
eBay Basic |
Same as above |
BIN
$0.20
Media
$0.05
|
7.5% Auction Style BIN 7%-13% |
Same as above |
$14.95 | 21 |
Custom Logos
E-mail Marketing
Cross Promotions
|
eBay Premium |
Same as above |
BIN
$0.05
Media
$0.05
|
Same as above |
Same as above |
$49.95 | 21 |
Same as above |
eBay Anchor |
Same as above |
BIN
$0.03
Media
$0.03
|
Same as above |
Same as above |
$299.95 | 21 |
Same as above |
BigCommerce Bronze |
None | None | None |
Merchant Accounts |
$24.95 Monthly 100 Items |
Varies by Webstore |
Email Marketing Social Media Marketing Paid Search |
BigCommerce Silver |
None | None |
None |
Merchant Accounts
|
$39.95 Monthly 500 Items |
Varies by Webstore |
Same As Above |
BigCommerce Gold |
None |
None |
None |
Merchant Accounts |
$79.95 Monthly 1000 Items |
Varies by Webstore |
Same as above |
*Alexa ranks sites by popularity #1 being the most popular site on the web currently Google has the top spot.
**PayPal charges a 2.9% fee for eBay Transactions.
So let's do a little comparing shall we while it's true that their are no listing fees on BigCommerce there is a tiered monthly fee structure that acts in a similar way. It is also true that BigCommerce has no Final Value Fees but you'll still have to pay your Credit Card merchant account transaction fees so these act in about the same way. Hypothetically then let's say you listed 300 items on eBay for $9.99 each. Let's also say you have a basic store to save on listing fees. Were going to expect a 60% sell through rate. Add it up.
- $14.95 Basic Store Subscription
- 300 * $0.20 = $60 in listing fees
- 11% * (180 * $9.99) = $198 in FVFs
- PayPal Fees of 2.9% * = $52
This assumes that you are listing in the most common categories.
Out of the 1798 in sales you end up paying eBay about $310. That's a percentage of about 17%. Now let's try it with BigCommerce:
- $39.95 Silver Plan
- Merchant Account Fee $14.95
- Merchant Trasanction Fees 180 * (2.5% * 9.99) = $45
- Promotional Cost 300 * $0.25 = $75
Now the promotional cost vary but most eCommerce stores will be paying quite a bit in paid search to promote themselves. Especially if they want a 60% sell through rate. So let's add it up. Out of $1798 in sales $175 went to fees and promotions. Only 9% in total. On the whole BigCommerce is a good choice for someone looking to get away from eBay and build their own brand but who doesn't want the hassle of building an eCommerce store on their own. BigCommerce helps get up and running fast so you can worry about making sales.
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