Squarespace vs. Shopify: Which Platform is Best for Your Small Business?
When it comes to choosing an e-commerce platform for your small business, the decision often comes down to two major players: Squarespace and Shopify. Both platforms offer a range of tools to help you set up and manage an online store, but they cater to different needs and business models. In this blog post, we'll break down the costs, ease of use, and suitability for different types of businesses to help you decide which platform is right for you.
Costs
Squarespace
Squarespace offers straightforward pricing with four main plans: Personal, Business, Basic Commerce, and Advanced Commerce. The Business plan, which is often recommended for small businesses, starts at $36 per month (when billed annually). This plan includes everything you need to start selling online, with no transaction fees on top of your payment processor's fees.
Shopify
Shopify has a more tiered pricing structure, starting with the Basic plan at $38 per month (when billed annually), and going up to $389 per month for the Advanced plan. Shopify also charges a transaction fee (ranging from 2% to 2.9%) unless you use Shopify Payments. This can add up, especially if you're processing a high volume of sales.
Verdict on Costs
For small businesses with a smaller inventory, Squarespace offers a more cost-effective solution, especially when considering the lack of transaction fees on the Business plan.
Ease of Use
Squarespace
One of the standout features of Squarespace is its ease of use. Squarespace provides 168 free templates, all designed with aesthetics in mind and fully customizable with its drag-and-drop interface. Whether you're tech-savvy or not, you can easily create a visually stunning website by simply choosing a template that fits your brand and tweaking it to match your style. No coding is necessary, and you can make changes to your site at any time, offering complete flexibility for your business as it evolves.
Shopify
In contrast, Shopify only offers 12 free templates, with additional premium templates available for purchase. While Shopify has built-in functionality for e-commerce, its design customization is more limited due to its focus on product management and sales. Shopify recently revamped its sections-based editor to make the platform more user-friendly, giving the user a little more control, but it’s design features are still somewhat limited without diving into the code. While you can still edit your site, you don’t have the same design flexibility that Squarespace offers, which is why many Shopify users either hire developers or invest in a highly customizable premium template.
Verdict on Ease of Use
Squarespace wins for small business owners who want to build and maintain their website without a steep learning curve. Its large selection of free templates, drag-and-drop interface, and design flexibility make it perfect for creating a beautiful, functional site with minimal effort. Shopify, while intuitive for managing products, often requires outside help or investment in additional resources to achieve a fully customized and polished look.
Product Types and Integrations
When it comes to the types of products you sell, both Squarespace and Shopify offer flexibility but are suited to different types of businesses.
Squarespace
Squarespace is great for small businesses that sell a mix of physical products, services, and digital content. Squarespace shines in its ability to help service-based businesses, coaches, and content creators monetize their offerings, whether that’s through booking systems, membership content, or even online courses. It integrates well with platforms like Acuity Scheduling for service-based businesses and offers a seamless way to sell and manage digital products such as eBooks, courses, or downloadable resources. For businesses looking to monetize content, Squarespace also supports gated content through member areas, making it an ideal platform for anyone looking to sell digital memberships or subscriptions.
Shopify
Shopify, on the other hand, is built more specifically for physical products and digital downloads. Shopify integrates seamlessly with print-on-demand services like Printful, Printify, and Gooten, making it an excellent choice for businesses that want to sell custom-designed apparel, accessories, or other print-on-demand products. While Shopify does allow for the sale of digital products, its infrastructure and marketing tools are more geared toward physical goods.
Both platforms integrate with print-on-demand services, but Shopify has a slight edge with its vast app ecosystem and more advanced inventory management tools. If you’re selling a large volume of physical products, especially in multiple locations or with multiple fulfillment partners, Shopify provides the inventory tracking and shipping management features you’ll need.
Verdict on Product Types and Integrations
Squarespace excels for businesses offering a combination of physical goods, services, or digital content, especially if you’re looking to monetize courses or membership content. Shopify, on the other hand, is better suited to businesses with a larger focus on physical or digital products, especially if you’re using print-on-demand services or have multiple fulfillment locations.
In-Store vs. Virtual Businesses
Squarespace
Squarespace is ideal for businesses with a smaller inventory or those selling a curated selection of products. It's also a great choice if your business is more service-oriented or if you want a website that focuses on content and branding, with the option to sell products on the side.
Shopify
Shopify, on the other hand, is built specifically for e-commerce. It’s perfect for businesses with larger inventories, those planning to scale quickly, or businesses that operate both online and in physical locations. Shopify’s Point of Sale (POS) system allows you to manage in-store and online sales seamlessly. It’s also extremely powerful for businesses with multiple physical locations, offering advanced inventory tracking across all stores. Shopify allows you to assign inventory to different locations, track stock levels in each store, and even automatically route orders to the correct location for fulfillment. This is a major advantage for businesses that need to manage stock across multiple locations or warehouses, making Shopify a standout choice for growing businesses that need robust logistics and tracking systems.
Verdict on In-Store vs. Virtual
If you’re running a small, virtual business with a limited product range, Squarespace is an excellent choice. But if you have a larger inventory or multiple physical locations, Shopify’s robust features for inventory management and its POS system might be more suited to your needs.
Pros and Cons of Each Platform
Squarespace:
Pros:
Lower cost for small businesses
Beautiful, customizable templates (168 free options)
User-friendly drag-and-drop interface
No additional transaction fees
Great for websites that prioritize content alongside e-commerce
Ideal for service-based businesses, course creators, and content monetization
Cons:
Limited e-commerce features compared to Shopify
Not ideal for larger inventories or businesses with physical store locations
Shopify:
Pros:
Built specifically for e-commerce
Extensive range of third-party apps and integrations
Scalable for businesses of all sizes
Strong support for in-store sales with POS and multiple location inventory tracking
Great for managing large inventories and multiple fulfillment points
Seamless integration with print-on-demand services like Printful and Printify
Cons:
Higher costs, including potential transaction fees
Only 12 free templates available, with additional costs for customization
Requires more customization effort, often needing a developer or a premium template for flexibility
Conclusion
For small businesses with a smaller inventory or those who prioritize ease of use, service-based offerings, or content monetization, Squarespace is a fantastic choice. Its large selection of free templates, user-friendly design tools, and ability to support a variety of business types make it ideal for entrepreneurs who want to create a stylish website without breaking the bank.
However, if you’re planning to grow quickly, sell a large volume of physical or digital products, operate multiple physical locations, or need advanced inventory tracking, Shopify’s robust platform might be worth the investment. Its specialized tools for e-commerce make it an industry leader for businesses with a heavy focus on selling physical goods, especially with print-on-demand or multiple fulfillment locations.
Ultimately, both platforms are powerful tools that can help you succeed online—just consider your business's unique needs and goals before making a decision.