10/02/2020
Kooomo vs. Shopify – who gets the edge?
Comparing eCommerce platforms is fun, but not the easiest of tasks out there. There is a number of things that need to be taken into consideration, and it is easy to make a mistake. When it is purely speculative, and for the purpose of writing an analysis, this is not really an issue. But, if you are to make a decision that will deeply impact your business, this is not a thing to fool around with.
We will try to compare these two platforms and highlight all the positives and the negatives of both of them, and we hope this will help you understand which of the solutions is the right one for you.
The best way to do this is to split the analysis into segments and pay attention to each and every detail separately. In that way, you will be able to understand which of the two is a better fit for your needs.
The analysis will be split into these segments:
• Hardware and connectivity requirements
• Capability
• Development potential
• Integrations
• Maintenance & Reliability
• Multichannel capabilities
• Omnichannel capabilities
• Pricing
Hardware and connectivity requirements
Since both Kooomo and Shopify are SaaS eCommerce platforms, there is absolutely no difference in this segment. Both platforms mean you will have everything sorted out by the platform, and all you need to do is to create your online shop and start selling. There will be no need for thinking about hosting, up-time or anything technically related. Both platforms provide uptime that is near to 100%, and there have been no recorded major issues with any of the two.
No matter which one you opt for, from this point of view you will be making a sound decision. It will take one rather big worry out of your mind and you will be able to focus on other things.
Capability
These are two very different platforms in terms of capabilities. While Shopify was initially developed in the US and was meant to be a quick and easy solution to getting online, Kooomo has a completely different background.
Shopify was initially meant to be a cheap solution with fast to market capabilities. This is why almost everything within the platform is pretty much templated and you don’t need to invest too much to get your online store ready to go. However, this means that the core options are much weaker than it is the case with its competitor in this case.
Since it has been initially developed for the North American market, there are no core capabilities that allow you to focus on the cross-border trade. Of course, that was the initial case, and the platform evolved after that, but it did result in a somewhat confusing set up in the end. Nowadays there are both Shopify and Shopify+ platforms, and their capabilities are quite different. Of course, this is connected to a whole series of differences, including pricing.
It is fair to say that Kooomo has a clear edge in this case. This is a platform that was designed and developed in Europe, having the cross-border complexity in its very DNA. These were the core features, developed from the very start, and as such, it is much more solid solution for the retailers who wish to dig deep into the trading on several markets from the same spot and at the same time.
Another difference in capabilities is also the front end design approach. Shopify was created initially as a low-cost solution, so it is much easier to deal with it in terms of the front end design. There is a number of templates available, and that is usually the starting point for every business. Kooomo, on the other hand, is not that much focused on templates and allows you to freely design your own user experience from the start.
In this case, Kooomo is definitely a much stronger option, but it definitely requires more effort to develop your storefront, and it is connected with higher expenses.
Development potential
Both platforms are quite closed in terms of developing the back end on your own. You have the features in front of you, and you need to make what you can out of them. If there is a need for additional development, you need to rely on their internal development teams to incorporate those things for you.
Still, there is a distinctive difference between the two. Kooomo is a much stronger option from the start, and it is far less likely you will actually need something additionally developed if you opt for them.
Both platforms have decent potential but they are targeting different type of customers. While Shopify is aiming at start-ups and small retailers, Kooomo aims for more established companies and even enterprise-level businesses. The core features available are appropriate to this targeting.
Integrations
Both platforms have a very strong ecosystem of partners that are pre-integrated into the core platform. It makes adding 3rd party services seamless and extremely easy. For both platforms, it is something that happens really quickly and without much time or effort invested.
Both platforms have this sorted out via fast API connectors that can be activated from the back end of the platform. It is a huge advantage compared to some other options on the market, and this is one of the main selling points for both platforms.
Since Shopify is active for a longer time than Kooomo, they have a bit larger number of available integrations at their disposal, but it is necessary to understand that there is a certain difference between the partners available, mainly due to the different targeting. If you keep in mind who targets what, you will see that the partners available are selected accordingly.
Maintenance & Reliability
Differently from the stand-alone platforms, SaaS solutions have the option to update software on their own. it is the case with these two platforms as well. All updates are applied automatically to all clients, so there can be no issues with versioning and necessary updates. This applies to the integrated partners as well.
It means that you will have your maintenance costs heavily reduced with any of these two options and you should have no issues with updating the software.
As for the reliability, both platforms have a long tracking record of success, and both options are absolutely reliable.
Multichannel options
This is a part where the differences become apparent. While both platforms have multichannel capabilities, Kooomo has a clear edge in this department.
While Shopify is relying on technology partners to provide connectivity to marketplaces in order to create a multichannel environment, Kooomo has core options for these purposes.
It reduces the costs and provides a much more effective solution for expanding to the major marketplaces such as Amazon and eBay.
Of course, connecting via 3rd party service is available with Kooomo as well, but there is no real need for that in most cases. It reduces the complexity of the entire operation, and from the technology point of view, it is easier to implement a sales channel that is in the core functionalities of the platform than to do it via 3rd party service provider.
Omnichannel options
This is where differences become glaringly clear! Kooomo has a full omnichannel potential integrated into the core of the platform. It is possible to connect physical stores, marketplaces, and online stores into a single system controlled from a single spot. It is a huge operation that brings a lot of complexity to the table, and the fact that these features are available in the core makes the entire operation much easier to handle.
On the other hand, Shopify can provide the same, but again via 3rd party service providers. At this point, it requires so many external integrations that the platform is not at its peak performance anymore. There is a lot of things that can go wrong in this case and that affects not only costs but also the very functionality of the entire system. Since these options are mostly needed by medium and large retailers, Shopify is in most cases out of the conversation at this point of time.
Pricing
Both platforms have a pricing model that includes an initial setup fee with the addition of the rev share model. Initial fees are very different in these two cases, with Kooomo being much more expensive in the beginning. Simply, the features that are much stronger cost more.
On the other hand, the revenue share model part of the puzzle favors Kooomo. Standard packages are rather similar, but since Shopify is aiming smaller retailers, they are much less flexible in terms of changing their pricing model in order to accommodate your needs. With Kooomo, this is a possibility, and you can negotiate a pricing model that will be perfect for your situation.
Conclusion
It is quite easy to make a verdict in this case. If you are looking to start your operations online quickly and without investing too much, Shopify is a clear option. Still, this means that you will be limited in terms of capabilities for the duration of using the platform.
If you are aiming to expand fast and on multiple levels, and you have funds at your disposal, then Kooomo is the right choice for you.
These two platforms are very different, and they definitely don’t aim in the same segment of the market. It is important when making a decision to determine what exactly you want to do. In many cases Kooomo is an overkill. If you are not going to use their full potential, you should think of the cheaper options. Still, if you are aiming high, it is necessary to get the appropriate tools to succeed.
Shopify, on the other hand, can prove to be inadequate if your business evolves fast, and there is soon a need to re-platform and move to a stronger option.
If you are not sure which of the two is the right for you still, we can always help you with that. Give us a call and we will be more than happy to evaluate your case and advise accordingly.