Online Shop Software: A Comparison of the Best Online Shop Systems for E-Commerce Merchants in 2025

The very first decision you must make when creating your online shop is arguably the most important: on which shop system should you build your venture? The saying that “the devil is in the details” couldn’t be more accurate here.

In recent years, customer demands have rapidly evolved and expanded due to the high growth rate of technology and increased competition in online retail. It is no longer enough to set up a simple shop with basic functionalities – you must also pay attention to mobile optimization, marketing, customer support, etc. All online shop development platforms offer you the ability to list and sell your products, receive payments, etc., yet they differ greatly in many aspects and can vary enormously in their functionality and application. In view of the significant influence of seemingly minor details on the final performance, you must analyze as much as possible whether the selected platform fits your business model and its particularities – there is no one-size-fits-all.

We will examine some selected shop systems in detail and compare them with each other. This article is not a ranking from best to worst but is meant to help you choose the tool to achieve your goal – just like our last article about the Top 10 Magento Extensions for Your Online Shop.

Fig1: The development of the popularity of some selected shop systems over the last 2 years. Source: Google Trends.

It is extremely important to have a clear idea about your business model and your goals. Especially your target audience – whether the focus is on B2B or B2C, the size of your shop, the number of products you want to feature, the desired degree of customization within the online shop, etc. This should serve as your starting point when choosing a shop system.

1. Shopify

A good balance between price, performance, and effort makes Shopify arguably the world’s most famous shop system in 2016. Suitable for both small and large online shops, the system has even become a bit cheaper over the last two years and allows you to set up your shop simply via drag and drop. This means you do not have to touch any code, which saves you a lot of time and money on both setup and maintenance.

Shopify also offers many excellent, modern, responsive design templates to choose from, over 1500 supporting extensions that enrich the functionality of your shop in many areas and help with many administrative tasks such as accounting, inventory management, etc. Additionally, there is a 24/7 customer service. The most important functionalities for any online shop in areas like checkout and payment, SEO and marketing, store and product management are preset and very easy to set up.

A key advantage of Shopify is the high-quality, mobile shopping experience for your customers as well as the ability to manage your shop intuitively from mobile devices. As with most shop systems, you can choose from various subscription plans – either €30 or €300 per month, with our opinion being that the €30 plan is usually entirely sufficient in most cases. A 14-day free trial is available.

On the other hand, Shopify naturally has some disadvantages that must be mentioned – especially a lower depth of functionality compared to other shop systems like Magento (which, however, are more complex, so there is a trade-off) and additional extensions. In order to personalize the design templates, you must also learn the “Liquid” programming language used by Shopify. Therefore, in most cases, a developer is required.

Overall, Shopify aims to offer you the richest possible functionality with minimal time and financial effort – and it has achieved that. If, however, you are technically savvy in e-commerce and are looking for an advanced system with an unlimited degree of customization that also poses no limits regarding the size and complexity of your business, there are some alternatives to Shopify. If you are interested in our Online Shop Agency, we would be happy to help you with the conception, development, and implementation of your e-commerce project!

2. Shopware

Shopware offers another excellent choice, having firmly established itself on the German market. Present in the e-commerce world for more than 15 years and with nearly 55,000 satisfied customers, Shopware has definitely proven its deep expertise in online retail.

Shopware is characterized by a relatively simple and intuitive backend, even though the system by no means suffers from a lack of CMS elements or functionality – however, some technical experience is definitely recommended. The admin area might seem confusing at first for some users, but it contains practically everything in one window, enabling a quick workflow. Shopware offers a good selection of modern, responsive templates that are also very clear and easy to customize with the editor. The so-called “Smarty Template Inheritance” allows for isolated customization of only selected parts of the templates, which saves a lot of time and effort in maintaining and updating the shop. Furthermore, Shopware features an intuitive and clean front end and a mobile-friendly nature that enhances the customer experience.

The subscription and support plans are somewhat more diversified compared to other shop systems, whereby the free version should already be sufficient for small to medium-sized businesses when combined with the numerous extensions available in the community store. A large network of German digital partner agencies ensures that you can receive support from competent professionals in case of any issues.

Nevertheless, Shopware has one significant disadvantage for some potential shops, namely the price. If you want to launch a large-scale project from the very beginning and do not have much money available, then the €1,300 for the cheapest commercial version might seem discouraging. However, this is a one-time fee for which you get an excellent product whose value completely justifies the price.

Other than that, we have no further objections to Shopware – if you have a sufficient budget, then Shopware is definitely a potential choice.

Are you interested in Shopware development? Learn more here.

3. Magento

Our personal favorite, Magento, offers a self-hosted all-in-one solution that holds over a 25% market share among all shop systems worldwide and is known for its rich functionality. Better suited for rather medium-sized or larger shops that already exhibit a certain degree of complexity, Magento offers the possibility of nearly complete customization, very high security, and also features like multilingual support and currency selection, which many other providers do not offer. In terms of features, Magento is probably the best among the listed shop systems.

But where Magento really shines is in its backend architecture. The system has many possibilities for extensions, interfaces, and third-party modules, while still maintaining a relatively intuitive approach to basic operations. The ability to manage multiple sub-shops through the backend and an excellent scalability makes it possible to quickly adapt the shop to changes in the size of your business. What we like about Magento is that the platform is open source, which has greatly contributed to its long-term development and improvement and has extended the limits of its functionality. When steered by an experienced developer, Magento can truly reach perfection.

As previously hinted, there is no one-size-fits-all for every shop and this is especially proven by Magento. Since rich functionality comes with a high degree of complexity and consequently effort, the system is not suitable for small shops or those taking their first steps into the world of e-commerce. Some online retailers would not benefit and might even lose value if they choose Magento, simply because their business would not benefit enough from the rich functionality to justify the effort. Another point to note is that the shop system is not among the fastest, which in any case could be a disadvantage.

Magento is an excellent platform for those who have the resources for an advanced technological implementation.

Interested in Magento development? Check out our offer. We also implement online marketplaces with Magento.

4. WooCommerce

WooCommerce has evolved from an original WordPress extension into a fully functional online shop. The setup and integration are seamlessly simple, and the system is free, offering a perfect solution for those who want to set up their first online shop inexpensively. The user is guided step by step through the setup process and the handling of the admin panel is very intuitive. The real highlight: WooCommerce boasts a mobile-friendly character with a Google Mobile User Experience score of 96 points compared to an average of 86, placing it among the top 3 shop systems in this category.

Among free providers, WooCommerce already has much to offer – multiple payment providers, flexible shipping settings, an automatic tax calculation program, numerous extensions, etc. The synergy effect of a WordPress blog and the resulting SEO advantages makes it easier to rank on the first pages of Google. The community is also quite large and can therefore be a good source for technical or other information.

However, it must be noted that ultimately, although inexpensive, WooCommerce is not free because, in addition to the costs for hosting the platform and the WordPress site, certain costs for extensions and professionals are incurred. It should also be mentioned that WordPress tends to lose reliability in terms of speed and crash rates when it comes to more complex websites or larger shops, which could make WooCommerce unattractive for some online retailers. Even compared to other shop systems like Magento, WooCommerce is rather limited in terms of extensibility. All these disadvantages point to WooCommerce being more suitable for smaller shops.

5. Prestashop

The international provider Prestashop was founded in 2007 and now counts over 250,000 customers worldwide.

Prestashop offers two free versions – either self-hosted or cloud-based. If you choose the first version, you will have to pay for your own hosting. In comparison to the cloud-based version, you get access to the source code as well as the ability to integrate modules from third-party websites. The cloud-based version is simpler and cheaper, but offers less flexibility compared to the self-hosted variant.

Setting up an online shop with Prestashop depends on the chosen version, but is generally quite intuitive. A demo is also offered to help you get started quickly and easily. The admin panel is user-friendly and can be displayed on mobile devices without any issues. The system does not suffer from a lack of features in all relevant areas such as checkout, marketing, or store management. What also makes Prestashop very attractive are the very low technical requirements compared to, for example, Magento. The selection of templates is quite large due to the popularity of Prestashop – around 2000 templates are available for between €30 and €600, the majority of which are responsive.

As with most free shop systems, there is a very large community of open-source experts with whom you can exchange information. However, you will probably have to pay quite a bit for additional extensions as well as for modules that serve to integrate third-party software. If you are not comfortable with the technical aspects, it is also a good idea to expect some additional costs for a developer. In the end, Prestashop is not free and the effort can quickly add up if the individual extensions and modules are added together.

Our verdict: Prestashop is a great alternative to Magento for medium-sized to large companies that have a clear idea of their goals and already have some experience in the e-commerce world and its technical aspects.

Our Online Shop Agency would be happy to help you with the conception, development, and implementation of your e-commerce project!

6. Oxid

Another system that dominated the German market with its debut in 2008 and has now established itself as the most powerful and scalable shop system solution after Magento is called OXID. Lately, the name has been appearing more and more due to the release of the new beta version of OXID 6, which, following version 5.3, serves as a technical update with many improvements in areas such as front end, scalability, and usability. Since it is an open-source system, the new version will be perfected relatively quickly and thus offers an interesting alternative to the new Magento 2.

A central advantage of OXID is the fact that the platform was developed with the German market in mind and is therefore adapted to its needs. The community, as with all famous open source systems, is a great help when it comes to technical questions. OXID offers subscription plans for both smaller shops with their Community Edition for an affordable entry and for very complex projects with the Professional or Enterprise Edition, making the system a relatively all-round solution.
OXID shows no shortcomings in terms of security – the system has 2 free, already integrated modules that take care of your shop’s security, as well as the possibility for SSL certification. OXID is also certified for the Trusted Shops seal, which creates greater trust among your customers.

When it comes to the depth of expandability and performance, OXID comes close to Magento. A solid foundation with many high-quality free extensions, as well as a multitude of additional plug-ins, integration of interfaces, etc., are important features of an extensive and powerful system. The new version of OXID is compatible with PHP7, which speaks in favor of high performance. Its modular architecture makes it quick and easy to enrich your shop with extensions. Furthermore, OXID is characterized by excellent scalability and thus high customizability and rapid adaptation to the dynamic changes of your online shop. Additionally, OXID is suitable for international business due to its multi-tenant capability and multilingual support.

Comparison of the Shop Systems – Overview

Target Audience

For All Online Shops

Target Audience

For medium-sized shops with a sufficient budget

Target Audience

For medium-sized, large, and complex online shops

Target Audience

For small and simple shops that require quick setup

Target Audience

For medium-sized companies that are technically well-equipped

Target Audience

For medium-sized shops seeking an alternative to Magento

What is an Online Shop System?

An online shop system is a special type of software designed specifically for setting up and operating e-commerce websites. The system is comparable to a content management system like WordPress. WordPress enables you, as an administrator, to create a finished website in just a few steps—completely without programming knowledge and without the need for development work. Additional functions can be achieved through plugins. An online shop system works in the same way. The difference: instead of creating a website, with a shop system you create a complete, ready-to-use online shop. Completely without programming knowledge and development work. All you have to do afterwards is set up the shop and upload your products, etc.

Why is an Online Shop System Important?

An online shop system is a special type of software designed specifically for setting up and operating e-commerce websites. The system is comparable to a content management system like WordPress. WordPress enables you, as an administrator, to create a finished website in just a few steps—completely without programming knowledge and without the need for development work. Additional functions can be achieved through plugins. An online shop system works in the same way. The difference: instead of creating a website, with a shop system you create a complete, ready-to-use online shop. Completely without programming knowledge and development work. All you have to do afterwards is set up the shop and upload your products, etc.

When is a Shop System Needed?

A shop system for an e-commerce website is needed whenever you are looking for a simple and inexpensive way to set up your own online shop. It does not matter whether you are acting as the head of a full enterprise or if you want to start your own venture. The range of shop systems is extremely large, and you can choose between many different models and versions—each with its own strengths, weaknesses, advantages, and disadvantages. The advantage is that today almost every online shop can be created with such a system. Only in very rare cases is it still necessary to have a completely custom shop programmed from scratch. This is particularly the case when you require special or unusual features that cannot be realized with a shop system and its numerous plugins, or if you work with special technologies such as blockchain.

How Do You Install an Online Shop System?

The installation of an online shop system varies slightly depending on the chosen provider. For some programs, like Shopify, no installation is required at all. In principle, however, the installation consists of copying the necessary files to the server. The software comes with an installer that makes the installation process simple. Here, you just need to copy the files to the server and then open the corresponding installer webpage. Some online shop systems, such as WooCommerce, are available as an add-on or plugin for other software, like the content management system (CMS) WordPress. In this case, the installation is usually completed with just one click. You can use the plugin or extension installer of the respective software to install your new online shop. No matter which system or variant it is: you must take care of setting up your shop. Either after installation or after registering for the service. Only when you have completed the setup and configuration can you use the store.

Advantages and Disadvantages of Online Shop Systems

As with all products, online shop systems have their advantages and disadvantages, which you should be aware of before purchasing. We do not want to keep these from you! In the following, you will learn everything you need to know about the pros and cons of online shop systems.

The Advantages of Online Shop Systems

An online shop system, regardless of the provider, is characterized by numerous advantages that make running and setting up your own e-commerce business as easy as possible. These include:

• Easy installation
• Simple setup
• Many functions
• Expandable through modules and extensions
• No programming skills or specialized knowledge required
• Often several systems such as accounting, CRM, etc. from one source

Easy Installation

Online shop systems are easy to install. They do not require any special expertise, and extensive or complex work is not necessary. Many providers even offer their own hosting, which is optimized from the start for the operation of the software.

Simple Setup

Online shop systems emphasize simplicity. They use a completely graphical user and administration interface. This makes the setup after installation very quick, simple, and straightforward.

Many Functions

Even a basic online shop system comes with many useful functions that you would otherwise have to program yourself and integrate into your e-commerce platform. Everything is available right from installation—without extra effort or many hours of development and setup.

Expandable through Modules and Extensions

Most shop systems (though not all) can be expanded through extensions, plugins, or additional modules. For example, you can integrate CRM functions or inventory and order management. The range of available extensions depends on the respective shop system and can vary greatly. Many shop systems also allow you to develop your own plugins and extensions for your individual needs.

No Programming Skills or Specialized Knowledge Required

Shop systems work like a CMS. Once installed, they immediately provide everything you need to start your e-commerce business. You do not have to code and do not require any special expertise. Once installed, you simply set up the shop and upload the products you want to sell. That’s all.

Often Several Systems Such as Accounting, CRM, etc. from One Source

Shop systems combine several individual systems or software. For example, there are modules for accounting, newsletters, customer management (CRM), etc. All directly integrated into the shop. Which modules and extensions are available depends on the chosen shop system. Additionally, such modules are sometimes available from some providers as paid extra options. You should inform yourself thoroughly in advance.

Application Areas for Shop Systems

Today, online shop systems are used in a variety of ways and are widespread. Among the wide range of shop systems, there is something suitable for almost every need. Whether you want to start your own e-commerce business, are an online retailer established for years, or sit on the board of a multinational company that also sells its products and services online – there is a shop system that fits. From inexpensive or free systems to software that is specialized for a certain business group, such as startups or medium-sized companies, or even well-known systems like Magento, which—due to the high costs—are particularly interesting for extremely large companies. Basically, with few exceptions, an online shop system is always suitable for your store.

The Different Types of Online Shop Systems

Online shop systems mainly come in three different types or variants. We would now like to introduce these variants to you in a little more detail. First of all, you should know which variants they are. These are:

• Shop builders or cloud solutions
• Self-hosted shop systems
• Plugin or extension-based shop systems

Shop Builders or Cloud Solutions

These solutions are the simplest but often the least flexible. Shop builders or cloud solutions provide you with a complete online shop on the internet, ready to use out of the box. The systems are operated directly on the provider’s servers. After registration, you receive a personal domain or subdomain (depending on the plan and provider) through which you can access your new shop. You do not have to worry about installation, updates, or server security – the provider is responsible for that. All you have to do is open an account and set up your shop. It couldn’t be easier!

Self-Hosted Shop Systems

Self-hosted shop systems are systems that are hosted by you or on your own server. Some of these systems are free, while others require a license fee or monthly costs. Here, you must take care of the installation yourself. However, since the system runs on your own server, you have flexibility. You can configure the shop system as needed and even make necessary adjustments to the server itself. Unfortunately, this also means that you have more work: you are not only responsible for the installation and updating of the software but also for the security of the server and the shop, etc.

Plugin or Extension-Based Shop Systems

This type of shop system is designed as a plugin or extension for other software. An example of this is WooCommerce. The software was designed as a plugin for WordPress websites. Through the CMS’s plugin manager, you can install WooCommerce with just one click. Even here, you do not have to worry about anything else afterwards and can immediately begin configuring and setting up your new e-commerce shop. There are also different models: free, freemium, and payware.

Alternatives to the Online Shop System

If you want to operate an online shop, you normally cannot do without e-commerce software. The only alternative is to develop your own shop system. The advantage of that is you can decide exactly how the software should look, what functions and APIs it offers, etc. However, developing such software is very complex, time-consuming, and extremely expensive. With few exceptions, an online shop system is the better solution and offers the same functions.

The Most Important Characteristics of an Online Shop System

In the following, our experts present the most important characteristics you should look for when purchasing an online shop system. We also show you which features a new shop should definitely have. This way, we help simplify your purchasing decision. The most important characteristics are:

• Cost
• Functionality
• Extensions and plugins
• Hosted or self-hosted

Cost

The cost of an online shop system is an important factor to consider when making a purchase. Here, a thorough comparison is crucial. Some shop systems – at least in a basic version – are completely free. Others, however, demand sometimes high sums, while many shop systems fall somewhere in the middle. There can be one-time license fees, monthly costs, and everything in between. You must decide which system and payment model works best for you.

Functionality

There are significant differences in the functionality of shop systems. This is not necessarily a bad thing—after all, there are sole proprietorships as well as multinational corporations, all with different requirements and wishes. However, it is important to know in advance which functions are important to you or which you require. Do you need a specific payment provider? A particular form of payment? Or perhaps you have special requirements for your products, such as video descriptions? If so, then you need to ensure that the desired shop system offers the corresponding possibilities.

Available Extensions and Plugins

Even if you already have an idea for your shop and know which features you need, you cannot predict the future. Perhaps in the future you will want to expand your shop, create a new design, add new payment providers, or have an entirely different idea. In this case, it would be practical and sensible if you did not have to switch to a completely new shop, but could simply extend your current e-commerce platform. Therefore, it is worthwhile to consider the possible extensions and plugins from the beginning. How large is the selection? How versatile is the offer? Are there additional templates for design and possibilities to develop your own templates or modify existing ones? Consider these factors and you will get a shop system that is not only future-proof but can also be used for a long time.

Security and Reliability

Security and reliability are particularly important. With cloud solutions, the provider takes care of these aspects. If you self-host your shop, then you are responsible for security yourself. It is still advisable to check in advance which provider is secure and reliable. Are there regular updates? Are there security audits or discussion groups, or even a special newsletter section for security? Is there a dedicated expert team responsible for security? Have there been any incidents in the past? All these aspects are important and should definitely be considered—even if you are not self-hosting! They speak volumes about the provider, especially regarding cloud services.

Cloud or Self-Hosted

An important question you must answer before purchasing an online shop system is regarding hosting. Do you want to host the shop yourself, or do you prefer a cloud solution where the provider hosts the software for you? Both options have their individual advantages and disadvantages that you should consider. With cloud systems, you do not have to install, maintain, or update the software, and you are not responsible for security. However, you are then dependent on the provider’s competence and workflow for configuration, updates, and many other aspects. You are significantly less flexible, aside from having to entrust your data and customer information to a third party.

On the other hand, self-hosted allows you to run your online shop on your own server. You have full access to the system and can configure and change it as you wish. Your customer data also remains with you and within your company. However, you are then responsible for security, reliability, and data protection. You also must carry out software updates, maintenance, etc. yourself.

Important Questions About Online Shop Systems

Below we have compiled the most frequent and important questions about online shop and e-commerce systems for you. In addition, our experienced experts provide answers to all of these questions. Our goal is to inform you in detail and comprehensively about the topic and to answer any questions or uncertainties.

Do I Need an Additional Website for a Shop System?

The answer is “sort of.” With a shop system, you normally get a fully functional online shop that you can start using immediately. An additional website is not initially required. However, with most shop systems, you are provided with only a platform for e-commerce. For this reason, we strongly advise you to create an additional website. This serves to present yourself and your products, provide customers with information and contact options, etc. – things that most shop systems do not allow. There are, however, some shop systems that offer an additional customer portal and can function as both a website and a shop system. Other systems can be integrated as a plugin or extension into a website. If you are interested in this type of software, you should research the topic thoroughly in advance.

Are There Free Shop Systems?

Yes, indeed. Some shop systems are completely free of charge. Others use the so-called freemium principle. Even here, you receive the shop system for free. However, for additional modules and functions or for support, fees in the form of a one-time payment or a subscription apply. This is how the providers finance their offerings. With free systems, however, you usually only get community support. In addition, there are costs for transactions and commissions that you must pay to the provider. Although this is also the case with many paid systems, the fees for free systems are usually significantly higher. After all, the developers also want to earn money with their product.

Are Payment Providers Integrated in a Shop System?

Payment providers are normally independent of the shop system. Most shops, for example, support payment via PayPal and credit card. PayPal is a separate company, and there are many providers for handling credit card payments. Additional options such as instant transfer, Giropay, direct debit, etc. are also available.

Most online shop systems offer the possibility to integrate several of these payment providers. This is enabled via the interfaces of the payment provider. Which payment methods and providers are supported, whether custom interfaces can be developed for other providers, and exactly how this integration works vary from one shop system to another. Usually, you will need an API key and login details. Often, a public key is also required to ensure communication between the shop and the payment provider.

What About Security and Data Protection?

If you operate an online shop, you are primarily responsible for security and data protection. The developer programs the shop system, but you run it. You must ensure that your server is secure. In addition, you need to update your software and do everything possible to prevent problems. You are also responsible for data protection and fraud prevention. Many payment providers and shop systems do offer appropriate measures, but it is advisable to rely on professional protection by a third party.

Are Tools for Newsletters and Marketing Included?

That depends on the shop system. Some e-commerce platforms do offer tools for newsletters and online marketing. In most cases, however, these tools are very limited. Even with a good online shop system, you should not forgo professional marketing and the corresponding tools and programs! Only in this way can you achieve the best possible results with your shop and business.

Are There Tools for Customer and Inventory Management?

Yes. Some online shop systems include modules for CRM as well as customer, order, and inventory management. Some systems additionally offer these functions as extensions or additional modules for an extra fee. If you are interested in such features, it is important that you pay attention to the available options when choosing your shop system.

The History of the Online Shop System

Shop systems for online shops have been on the market for several years. Pioneers and classics such as Magento in its Version 1 have significantly shaped the market and are today considered icons among shop systems. With the boom of the internet and online business, the need arose to create an online shop in a simple and fast way, even without programming skills or specialized knowledge. A similar phenomenon had already occurred with websites. That was the birth of the content management system.

The first shop systems naturally had very few features and their design was very outdated. There was no responsive design, no elaborate scripts with interactive webpages, etc. The shop was simply an evolution of the website to allow the offering of some goods or services. This also meant that there were very limited possibilities for things like payment. Only in the last three years have shop systems massively advanced, with new platforms and numerous builder systems being added.

Conclusion

Quotes

• Online shop systems are trending. They allow you to go online with your own e-commerce quickly, even without experience or programming knowledge.
• A custom-developed or programmed online shop is now very rarely required due to the high quality of available shop systems, except in very specific situations.
• On the market, you benefit from a wide selection of shop systems—from hosted to self-hosted solutions, from systems you can set up and program yourself to ready-made builders.
• Online shop systems can be free, paid, or a mix of both – the so-called freemium solutions. With some providers, costs are incurred as a one-time fee, while other developers demand monthly or yearly fees.
• In addition to the costs for the online shop or license, you must always also account for further expenses. Payment providers and some vendors charge transaction fees, and a commission on your revenue is frequently required. You should thoroughly research in advance what costs will come your way and what expenses to expect.