Soapbox Engage Blog

The e-commerce industry is worth about $2.3 trillion and growing. Many nonprofits are adding e-commerce stores as a secondary source of income and a strategy to reach more people in their network.

Selling products or services online that your followers and supporters want can help build your popularity, strengthen relationships, and even cultivate a sense of community around your cause while bringing in much-needed funding.

Table of Contents

• 4 Types of e-commerce platforms
• 8 things to consider when choosing an e-commerce platform

From branded swag to seasonal products, there are many ways your nonprofit can take advantage of e-commerce sales! But before you start selling your sweet products, you'll need to choose the right e-commerce platform for your nonprofit.

There are many options available on the market, so it can be an overwhelming process. Not to worry! We've got some tips and insights to help you make the best choice for your organization!

4 Types of E-commerce Platforms

E-commerce experts are quick to point out that many vendors focus on flashy surface things like design and content. However, nonprofits should really focus on the business process, customer engagement, and even lead generation for your organization.

There are four main categories of e-commerce platforms on the market.

DIY e-commerce stores: It is possible to hire someone to develop your e-commerce store from scratch or do it yourself. This is probably more of a method than a platform option, and it's relatively uncommon now with all the other platforms available on the market. If your nonprofit has a very niche and specific need that none of the e-commerce platforms can meet, this might be a good option.

Traditional e-commerce platforms: Traditional e-commerce platforms require you to purchase a license that you renew annually. Then, the IT team will customize certain aspects of the platform and install them on your website.

Open-source e-commerce platforms: The main difference between open-source platforms and traditional platforms is that you don't need to purchase a user license. However, you still have to pay for the development, installation, upgrades, and migration of the platform on your website.

SaaS e-commerce platforms: These kinds of e-commerce stores are available for a set monthly fee. Different platforms have various customization options, but this is the most "plug-and-play" option.

8 Things to Consider When Choosing an E-commerce Platform for Your Nonprofit

While there are many factors to consider when selecting an e-commerce platform, there are some key things to look for and consider.

1. Set your e-commerce goals first

Begin by clearly stating your goals for starting an e-commerce store. Whether your goal is to raise a certain amount of money through sales or raise awareness, it's essential to know what you want to accomplish with your online store and choose the platform that supports your goals.

2. Consider the startup and maintenance costs

Now that you've identified your goals, it's time to set your budget. Some nonprofits are surprised by the startup and maintenance costs of an e-commerce store.

If you choose a platform that requires development and building, the startup costs might be obvious, but there are ongoing costs to consider. There are usually maintenance and upgrade fees and future costs to add new features and improvements whenever they're required.

Some e-commerce platforms tend to be more predictable with their regular cost schedules.

3. Choose an e-commerce platform that can scale up as you grow

Choose an e-commerce platform that can grow with your nonprofit. As your products become more popular, you'll want to keep up with the booming sales. You should also be able to add new products without any limitations.

With the Soapbox Engage Shop app, you can easily create as many products or stores as you need. It can expand and contract to suit your nonprofit's needs as they change.

You can either offer a single list of products or organize them into categories to streamline the shopping experience.

4. Understand what processing fees you'll pay on the e-commerce site

Choose an e-commerce platform that doesn't force you to pay a processing fee to both the shopping cart and the payment processor. Some platforms charge their own processing fee, plus the monthly hosting fee. Add the online payment processing fee, and things can get expensive! The good news is there are great options on the market with very reasonable fee structures.

5. Choose an e-commerce platform that makes data accessible and exportable

It's critical for nonprofits to be able to save order details to your CRM system so you can track, fulfill, and follow up with orders. This will help you raise money, expand your audience, and support your overall mission.

The Soapbox Engage Shop app lets you link specific products and order forms with campaigns for easy tracking and reporting. You can also automatically match orders with contacts already in your CRM system or create a new contact.

6. Does your e-commerce platform allow you to customize the shopping experience?

With online shopping almost a daily event now, people expect a seamless, positive experience. Choose an e-commerce platform that lets you customize the online shopping and checkout experience with text, images, video, and even follow-up messages.

The Shop app lets you offer promo codes for discounts and easily customize every step of the shopping and checkout experience. You can even send custom thank-you emails to follow up with each purchase. This detail is significant for nonprofits wanting to leverage their online store to expand their audience and fundraising potential.

7. Choose an e-commerce platform that gives you valuable data

It's important to know which of your marketing efforts drive the most sales in your e-commerce store. This will guide future marketing strategies and help you boost overall sales, especially if you have aggressive financial goals for your online store.

The Soapbox Engage Shop app gives you the option to create tracking URLs so you can record where each order came from. It offers powerful details about how your store is performing so you can make wise choices going forward. Paired with Google Analytics, you'll be able to analyze your customer behavior and maximize the return on your investment.

8. Be mindful of taxes with your e-commerce store

Once you've got your online store up and running, you'll be making sales left and right! Generally, nonprofits can sell products and services for profit as long as it relates to your purpose. However, it's essential to understand the tax laws and regulations for nonprofits.

For example, the Girl Scouts sell their famous cookies and raise more than $800 million annually on our collective Thin Mint addictions. The money supports their annual camps, scholarships, and other programs.

As you launch your nonprofit e-commerce store, work with your accountant and attorney to ensure you're collecting and paying the proper taxes on your online sales.

Overall, e-commerce stores can be a great way to diversify your fundraising income, grow your visibility, and create a greater sense of community around your organization and cause. With the right e-commerce platform, you can launch and run your online store with minimal technological headaches!

The great news is that the Soapbox Engage team understands how much you already have on your plate. We're here to help all the accidental techies establish and run a thriving online presence for your nonprofit--whether that includes an e-commerce store, custom donation pages, directories, and much more!

Now that you're on your way to launching a successful e-commerce store, here are three more resources to help you grow your fundraising.

• 8 Creative Ideas and Strategies for Your Next Gala Fundraiser: Just because galas are a more traditional fundraising strategy doesn't mean they need to be stuffy or outdated. You can spice things up, get creative, and take your next fundraising gala to new heights with these clever ideas, tips, and insights from industry experts!
• Boosting Donor Engagement: 5 Strategies for Nonprofits: The average donor retention rate for nonprofits typically fluctuates between 40 and 45%, but that number dropped between 2019 and 2020. Nonprofits continue to struggle to retain donors over time, leading to less consistent funding. The solution is better donor engagement, and this blog will help you develop or improve your donor engagement strategy.
• 6 Easy Strategies to Boost Your Nonprofit Virtual Event Attendance: Virtual events are likely here to stay, but they do bring new opportunities and unique challenges. One of the biggest questions is how to go about boosting attendance at virtual events and hold people's attention in a digitally distracted world. There's no quick-fix here, but there are practical things you can do to help fill your next virtual event. Here are some great tips, insights, and recommendations.