Shopify vs. Squarespace vs. WooCommerce: Which E-commerce Platform is Best for SMEs

Choosing the right e-commerce platform can feel overwhelming for small business owners. With major players like Shopify, Squarespace, and WooCommerce each offering compelling features, how do you know which one will best serve your business needs? For those unfamiliar, SMEs (Small and Medium-sized Enterprises) are businesses that maintain revenues, assets, or employee numbers below certain thresholds, typically making up the backbone of Australia’s economy. In this comprehensive guide, we’ll break down these three popular platforms to help you make an informed decision for your SME.

View more:

The E-commerce Boom for Australian SMEs

The e-commerce landscape is booming in Australia, with online retail sales reaching $4,061.4M in September 2024 (Source). This presents an incredible opportunity for small businesses to expand their reach and grow their customer base. But to capitalise on this opportunity, you need the right platform powering your online store.

Recent research by Maruf Hasan and Indra Muljadi reveals some fascinating insights about e-commerce adoption among Australian SMEs:

  • The professional services sector is leading the charge in e-commerce integration
  • A whopping 80% of businesses have successfully attracted domestic customers through online channels
  • 10% of SMEs have managed to capture up to half their customer base from international markets
  • Surprisingly, only 20% plan to expand their e-commerce activities in the next year

These findings suggest there’s still massive untapped potential in the e-commerce space, particularly for businesses looking to expand internationally or enhance their digital presence.

Business owners now have a great opportunity to grow through e-commerce

Business owners now have a great opportunity to grow through e-commerce

A Comparison between Squarespace, WooCommerce, and Shopify

With so many e-commerce platforms available today, choosing the right one for your SME requires careful consideration. Among the numerous options, three platforms consistently stand out for Australian businesses: Squarespace, WooCommerce, and Shopify. Let’s dive deep into each platform to help you determine which one best suits your business needs.

WooCommerce: The WordPress-Powered Powerhouse

Illustration of a web page featuring a t-shirt graphic, framed by a purple background. A rocket ship, angled upward, emits a fiery trail. The WooCommerce logo is prominently displayed on the right, highlighting its edge in the Shopify vs. Squarespace vs. WooCommerce e-commerce platform debate. | Ven Agency

WooCommerce hit the scene in 2011 when WooThemes launched it as a specialised WordPress plugin. After being acquired by Automattic (the company behind WordPress.com and Jetpack), it’s grown into a force to be reckoned with. Today, WooCommerce powers an impressive 55% of all e-commerce sites in the U.S., supporting over 2.3 million online stores.

What makes WooCommerce particularly appealing is its deep integration with WordPress, which powers more than 30% of all websites worldwide (source WP Engine). As an open-source platform, it offers unparalleled flexibility – you have complete control over your store’s backend and can customise nearly every aspect of your site.

The platform gives users full control to modify or add features through extensions, letting you tailor the experience to your specific needs. Popular WooCommerce integrations include:

  • MailChimp for email marketing
  • PayPal and Stripe for payment processing
  • Google Ads for advertising campaigns
  • Plus hundreds more extensions to enhance your store’s functionality
Illustration of an online shopping scene with a person browsing a smartphone displaying various clothing items. Icons include WordPress, WooCommerce, a shopping cart, and sale tags like 20% and 50%. Shopping bags rest beside the phone. | Ven Agency

WooCommerce makes up an impressive 55% of all eCommerce websites

Shopify: From Snowboards to Global Commerce Platform

Shopify’s origin story is a testament to entrepreneurial spirit. Born from the frustration of selling snowboards online using existing platforms, its founders decided to build something better. Today, Shopify has evolved into a comprehensive commerce platform serving over 800,000 businesses worldwide.

This cloud-based platform enables businesses to grow, design, and manage their online stores with ease. What sets Shopify apart is its all-in-one approach. You get:

  • A fully hosted, cloud-based solution (no technical maintenance required)
  • The ability to sell across multiple channels (web, mobile, social media, and marketplaces)
  • A robust platform that scales with your business
  • Access to powerful business tools and analytics

The platform lives up to its tagline as the “all-in-one commerce platform to start, run, and grow a business,” offering solutions for businesses of all sizes.

Illustration of a green shopping bag with the Shopify logo, surrounded by cookies. A large cursor points to the bag, emphasizing online shopping and digital interaction. The cookies, with bite marks, hint at e-commerce platforms like WooCommerce revolutionizing the way we shop online. | Ven Agency

Shopify is a comprehensive e-commerce platform

Squarespace: Where Design Meets E-Commerce

What started in a college dorm room has bloomed into a platform that helps millions create stunning, user-friendly websites. Squarespace has become particularly popular among creative entrepreneurs and businesses that prioritise visual impact.

Squarespace Commerce shines in several areas:

  • Integrated tools for product management and order processing
  • Seamless payment processing with major providers
  • Clean, professional templates designed to showcase products
  • Built-in features for handling refunds and donations

Squarespace’s professionally designed templates make product displays visually stunning while streamlining the shopping experience. The platform integrates seamlessly with several key payment processors including:

  • Stripe
  • PayPal
  • Apple Pay.
A laptop showcasing the Squarespace logo rests on a wooden desk. Nearby, a potted plant, stationery holder, coffee cup, and vintage camera complete the scene against a light wooden wall backdrop. | Ven Agency

Squarespace combines professional design with powerful e-commerce tools.

E-commerce Features for Australian Businesses

When comparing e-commerce platforms and online store builders, Australian small businesses face unique considerations. Your choice of platform needs to support local payment methods, tax requirements, and shipping integrations that are essential for the Australian market.

Local Payment Integration

Each platform offers different levels of support for Australian payment preferences:

  • Afterpay and ZIP Pay integration (widely supported across all platforms)
  • Direct debit through major Australian banks
  • Standard credit card processing with local banks
  • Platform-specific payment solutions (like Shopify Payments)

Australian Tax and Compliance

All three platforms can handle Australian business requirements, though some need additional setup:

  • Automated GST calculation and reporting
  • Compliant tax invoice generation
  • ABN display and multiple ABN support for marketplaces
  • Australian consumer law compliance features

Local Shipping Solutions

Shipping integration capabilities vary by platform:

  • Native Australia Post integration
  • Sendle compatibility for cost-effective delivery
  • Local courier service connections
  • International shipping with AUD calculations

Key Features Comparison

Let’s dive into what each platform brings to the table. Whether you’re just starting out or looking to scale your existing business, understanding these key features will help you make the right choice.

Shopify: Built for Growth

Shopify excels in providing a complete e-commerce ecosystem. Here’s what makes it stand out:

  • Professional Design Options: Choose from over 70 professionally designed themes, each optimised for both desktop and mobile shopping experiences
  • Mobile-First Approach: Every theme and feature is designed with mobile shoppers in mind, ensuring a smooth experience across all devices
  • Complete Design Control: Full access to HTML and CSS for those who want to customise every detail
  • Expert Network: Need help? Connect with Shopify-verified experts for everything from store setup to marketing
  • Comprehensive Support: Access 24/7 help via live chat, email, phone, or even Twitter, plus a wealth of free learning resources

Squarespace: Design-Driven Commerce

Squarespace has earned its reputation among entrepreneurs who value aesthetics. Here’s why:

  • Superior Product Organisation: Easily manage your inventory with intuitive tagging and categorisation
  • Flexible Product Options: Handle unlimited SKUs and product variants through a single, streamlined interface
  • Custom Forms: Create tailored forms for any scenario using the Form Blocks feature
  • Secure Payment Solutions: Integration with major payment providers ensures safe transactions
  • User-Friendly Support: Access detailed guidance through their unique ticketing system, plus comprehensive tutorials and community forums

WooCommerce: Ultimate Flexibility

Building on WordPress’s foundation, WooCommerce offers unmatched customisation:

  • Open-Source Freedom: Modify the core code to create exactly what you need
  • Extensive Add-ons: Access over 400 extensions covering everything from payments to marketing
  • Strong Community: Tap into both WordPress and WooCommerce communities for support
  • Cost-Effective: While the initial setup might be complex, the long-term value and flexibility make it worth considering
Shopify vs. Squarespace vs. WooCommerce: Which E-commerce Platform is Best for SMEs

WooCommerce offers robust order management and notifications.

Cost Comparison: Breaking Down the Numbers

Understanding the true cost of your e-commerce platform is crucial for making an informed decision. Each platform offers different pricing structures and potential additional costs that can impact your bottom line. Here’s a detailed breakdown to help you plan your investment:

PlatformPlan OptionsMonthly/Annual CostAdditional Fees
WooCommerceDepends on hosting providerHosting: $120/ yearDomain registration, payment gateway fees
Domain: ~$15/yearExtension fees for additional features
SquarespaceBusiness$33/month 3% transaction fee, ~2.9% + 30¢ per transaction
Basic Commerce$36/month Payment processor fees (Stripe/PayPal)
Advanced Commerce$60/month Advanced ShippingAdvanced discountingSell subscriptions
ShopifyBasic Shopify$19/monthLocalized global selling (3 markets)
Shopify$49/monthAdditional fees for apps/extensions
Advanced Shopify$299/monthLocalized global selling (3 markets) + add markets for $59 USD/mo each

Note the above information is updated in early 2025, for accurate pricing information please visit the official websites of the platforms.

Making Your Final Choice

After comparing these platforms in detail, here’s our take on which platform might work best for different types of SMEs:

Choose Shopify if:

  • You want an all-in-one solution that’s ready to go
  • International expansion is in your plans
  • You need robust multi-channel selling options
  • You prefer having 24/7 expert support
  • You’re not too technical but want a professional store

Choose WooCommerce if:

  • You’re already familiar with WordPress
  • You want complete control over your store
  • You’re comfortable with some technical setup
  • Budget is a major consideration
  • You need highly specific customizations

Choose Squarespace if:

  • Visual presentation is crucial for your brand
  • You’re selling a smaller product range
  • You want a simple, elegant solution
  • You appreciate clean, modern design
  • You need an integrated website and store

The Bottom Line

While all three platforms have their merits, Shopify emerges as a particularly strong choice for Australian SMEs looking to establish or expand their online presence. Its combination of robust features, extensive payment options, and global selling capabilities makes it especially suitable for businesses aiming to reach both domestic and international markets.


However, your final choice should align with your specific business needs, technical expertise, and growth plans. Consider starting with a free trial where available, and don’t hesitate to reach out to each platform’s support team with specific questions about your business requirements.
Remember, the best e-commerce platform isn’t necessarily the one with the most features – it’s the one that best serves your business goals and helps you connect with your customers effectively.

Contact Information:

  • Address:
    • Australia: L2, 627 Chapel Street, South Yarra, VIC 3141
    • Vietnam: 83 Tan Vinh Street, Ward 6, District 4, Ho Chi Minh City, 700000
  • Website: https://ven.com.au/
  • Hotline: (03) 7003 5248
  • E-mail: hello@ven.com.au

Andy Nguyen
Director
Andy Nguyen is the Co-founder & Director of Ven Agency, specialising in innovative digital marketing and brand development. With over a decade of industry experience, he excels in driving successful campaigns and building strong client relationships. Andy's strategic vision and creativity have positioned Ven Agency as a leader in enhancing online presence and audience engagement.