Shopify vs Odoo: Choosing the Right E-commerce Platform for Your Business

For small to medium-sized business owners, selecting the right e-commerce platform is crucial for success in the digital market. In this article, we’ll comprehensively compare the two popular choices, Shopify and Odoo, to help you make an informed decision.

Key Takeaways

• Shopify is an excellent choice for entrepreneurs and small to medium-sized businesses seeking a quick and user-friendly e-commerce solution with built-in tools for website creation and in-person selling through a seamless point-of-sale system.
• Odoo’s modular and open-source nature makes it ideal for small startups requiring individual apps for specific business functions and larger enterprises with complex needs. It offers more excellent customization options and the ability to build a comprehensive ERP system.

Shopify vs Odoo: Quick Comparison

The main difference between Shopify and Odoo is that Shopify is a specialized e-commerce platform that primarily focuses on online selling, while Odoo is a comprehensive business management software with e-commerce as one of its many modules.

Shopify stands out as a comprehensive and user-friendly all-in-one e-commerce solution. With its built-in tools and seamless auto-connections, entrepreneurs can swiftly create and manage online stores without requiring extensive technical expertise. Shopify also caters to brick-and-mortar businesses through its integrated POS system, enabling seamless in-person selling. Merchants can take advantage of Shopify’s vast library of over 8,000 apps available on the Shopify App Store, providing a wide array of functionalities to enhance their online

stores. 

On the other hand, Odoo is an open-source suite of business apps dedicated to specific business functions like CRM, sales, inventory, manufacturing, and human resources. Business owners can use these apps individually or combine them to build a comprehensive ERP system tailored to their needs. However, integration among Odoo apps may require additional setup, which may demand more technical expertise. This customizable approach offers unparalleled versatility for businesses seeking a more flexible solution. 

Shopify vs Odoo: Table of Comparison

Shopify vs Odoo: Detailed comparison

Pricing

Shopify

Subscription fees

Shopify offers a range of subscription plans from $39 to $2,000+. Additionally, they provide a 3-day free trial for users to explore the platform. After the trial, you can take advantage of the $1 per month for the first 3 months deal.

Transaction fees

When using Shopify Payments, there are no additional fees for transactions. However, depending on your chosen plan, additional fees will be incurred if you choose a third-party payment provider, ranging from 2%, 1%, or 0.5%.

For credit card processing fees, the rates are determined by the Shopify plan and transaction type. Online transactions are subject to a starting rate of 2.4% + 30¢ USD, while in-person transactions have a flat rate of 2.4% USD.

Additional fees

Watch out for additional fees related to add-ons and apps from the Shopify App Store or themes from the Shopify Theme Store. The amount varies depending on your selected apps or themes.

Odoo

Subscription fees

Odoo offers a $0 plan, enabling users to try out the features of a single specific app without any initial cost. The Standard and Custom plans are priced at $31.10 per user per month and $46.70 per user per month, respectively, granting access to all apps. Users can take advantage of a 15-day free trial to explore Odoo’s app capabilities and assess their suitability for their business processes before making a decision.

The Verdict

Shopify edges out Odoo in terms of pricing, as it offers an attractive deal with affordable prices and avoids upfront costs for new users. With Shopify, users can create a comprehensive online business with full functionality, including e-commerce, point of sale, and various payment methods. While Odoo may have cheaper plans and a longer free trial, Shopify’s all-in-one package appeals to those seeking a cost-effective and convenient solution for their online ventures.

Set up and Customization

Shopify

The easy setup process through email and the user-friendly drag-and-drop interface and dashboard make Shopify a highly accessible platform for small and medium enterprises (SMEs) to quickly establish an online presence without requiring extensive technical knowledge or resources. 

The ability to customize themes, products, discounts, checkouts, and payments is crucial to creating a unique and tailored online store that resonates with today’s digital-savvy customers. This level of customization enables SMEs to stand out in a competitive market, build brand identity, and deliver an exceptional shopping experience, ultimately fostering customer loyalty and driving business growth.

Odoo

Odoo also provides simple setup and customization options ideal for small and medium enterprises to select and install the modules they need, independently or combined, to fit their business operations. 

Additionally, Odoo’s apps are user-friendly, with drag-and-drop functionality for designing website pages, creating automated workflows, making it easy for SMEs to establish an online presence and streamline processes, even without technical expertise. This accessibility and adaptability empower users to efficiently manage operations, increase productivity, and cost-effectively achieve growth.

The Verdict

The result is a tie. Shopify and Odoo offer easy setup processes and user-friendly interfaces, making them accessible for business owners to establish their online presence without technical expertise. Furthermore, they provide customization options that enable SMEs to tailor their online stores and streamline processes efficiently. 

Ecommerce Features

Payment methods

Shopify

Shopify’s payment methods offer significant advantages for small and medium businesses in selling their products:

• Shopify Payments: The built-in payment gateway ensures customers a seamless and secure payment processing experience. By having this integrated solution, businesses can streamline their payment processes, reducing potential friction points during checkout and increasing customer trust.
• Wide Range of Payment Processors: With support for over 100 payment processors, Shopify enables businesses to cater to diverse customer preferences. This flexibility ensures that customers can use their preferred payment methods, which can result in higher conversion rates and customer satisfaction.
• Simplified Checkout Process: Payment flows directly on the Shopify checkout page, eliminating customers’ need to navigate to third-party payment websites. This smooth and straightforward checkout process reduces cart abandonment rates and enhances the shopping experience.
• Flexible Payment Options: Shopify supports various payment methods, including credit/debit cards, cash on delivery, royalty points, gift cards, and coupon usage. This diversity of payment options allows businesses to accommodate different customer needs and encourages repeat purchases through loyalty points and gift cards.

Odoo

Odoo’s payment methods offer two main features:

• Payment Flow Options: Odoo allows customers to pay directly on the Odoo platform or through the payment provider’s website. However, using the payment provider’s website for checkout can sometimes lead to cart dropping.
• Rewards Points and Gift Cards: Odoo lacks built-in rewards points and gift card support, but business owners can integrate third-party solutions for these features, benefiting from enhanced customer loyalty and repeat purchases.

The Verdict

Shopify wins this comparison due to its built-in payment gateway, support for 100+ payment processors, and a wide range of flexible payment options, which enhance the overall shopping experience and customer loyalty. While Odoo offers payment flexibility, its lack of built-in support for rewards points and gift cards may limit its ability to incentivize repeat purchases.

Inventory management

Shopify

Shopify’s robust inventory management features cater to the specific needs of small and medium enterprises, ensuring efficient stock control, reducing operational costs, and enhancing customer satisfaction. Here are some standout points: 

• Multi-location and Multi-channel Inventory Management: This feature allows business owners to fulfill orders from nearby locations, saving on shipping costs and speeding up delivery. Managing inventory across various sales channels ensures consistent stock availability and prevents overselling.
• Easy Product Management and Inventory Tracking: Shopify offers a user-friendly interface to manage products easily. Real-time inventory updates prevent stockouts, and sales reports provide valuable insights for optimized inventory levels.
• Real-time Updates: Real-time inventory updates empower merchants to monitor their stock levels continuously, ensuring they stay informed about available quantities and enabling timely reordering to meet customer demand. This feature also facilitates effective in-person selling, as data is synchronized between the Shopify POS system and the online store, providing seamless inventory management across all channels.
• Low Stock Alert & Demand Forecasting: Shopify’s low stock alert feature notifies retailers of low inventory, preventing stockouts, and demand forecasting tools aid in proactive inventory management.

Odoo

Odoo’s Inventory Management features offer essential benefits for small and medium enterprises (SMEs):

• Multiple-Warehouse Management: Odoo allows SMEs to manage inventory across multiple warehouses efficiently. This capability enables them to optimize stock distribution, fulfill orders from the nearest warehouse, and reduce shipping costs. 

• Stock Quantity Control: Odoo offers SMEs real-time visibility of stock levels, ensuring accurate tracking and preventing stockouts. This allows SMEs to make informed decisions on inventory replenishment, avoiding delays in order fulfillment and enhancing the customer experience.
• Vendor Management: Odoo’s vendor management feature ensures effective tracking and management of supplier relationships, streamlining inventory procurement for SMEs and maintaining a steady supply of goods.
• Demand Forecasting: Odoo’s demand forecasting tools help SMEs predict customer demand, optimize inventory levels, and reduce costs. This proactive approach minimizes stockholding risks and improves inventory efficiency.

The Verdict

Shopify emerges as the winner in the inventory management comparison thanks to its robust features that cater to merchants’ needs, providing real-time updates across all selling channels. While Odoo offers essential benefits, Shopify’s seamless data synchronization across the ecosystem makes it the preferred choice for efficient inventory control.

Shipping

Shopify

• Customizable Shipping Rates: Business owners can set their shipping rates on Shopify, allowing them to align shipping costs with their business strategy and target audience. This ability is crucial for merchants as it allows them to offer competitive prices or even free shipping, attracting more customers and boosting sales.
• Integration with Multiple Shipping Carriers: Shopify seamlessly integrates with various shipping carriers, including Canada Post, FedEx, UPS, USPS, DHL Express, Sendle, etc., offering SMEs access to a wide range of shipping options. The availability of multiple carriers and up to 88% shipping discounts enables Shopify merchants to optimize shipping costs and choose the most efficient and cost-effective shipping solutions for their business.
• Dropshipping Support: Shopify fully supports dropshipping, allowing SMEs to sell products without inventory, reducing upfront costs and inventory management complexities to expand product offerings and streamline operations.

Odoo

• Custom Shipping Rules: Odoo allows SMEs to customize shipping rules according to their specific requirements, defining rates, methods, and conditions based on location, weight, or order value. This customization enhances customer satisfaction by providing transparent and competitive shipping options, encouraging repeat purchases.

• Shipping Connectors: Odoo integrates with popular shipping carriers like DHL, UPS, USPS, and FedEx through shipping connectors. This integration streamlines the shipping process, automates label generation, and provides real-time shipping quotes for customers during checkout. SMEs can leverage these connectors to access reliable and efficient shipping services, reducing shipping-related complexities and costs.

The Verdict

Shopify takes the lead in shipping for its merchants by offering custom shipping rates, collaborating with trusted carriers with high discount rates, and providing full support for dropshipping and international shipping. This comprehensive approach helps Shopify merchants save significant money while efficiently managing their shipping operations.

Marketing

Shopify

Marketing on Shopify is designed to provide powerful tools and strategies to boost sales and engage customers for Shopify merchants. Let’s explore these features:  

• Cart Abandonment Recovery and Email Marketing: Shopify offers cart abandonment recovery tools to help store owners re-engage customers who leave their carts without completing purchases. 

Additionally, free email marketing for up to 10,000 emails per month allows businesses to communicate directly with their audience, promote products, share updates, and nurture customer relationships. These features are critical in converting potential customers into buyers and fostering customer loyalty.

• Discounts and Coupon Codes: The ability to create and manage discounts and coupon codes on Shopify empowers its merchants to run effective promotional campaigns. By offering attractive discounts and incentives, businesses can attract new customers, retain existing ones, and drive sales. 
• Social Media and Marketplace Advertising: Shopify allows seamless integration with various social media platforms and marketplaces, enabling retailers to expand their reach and visibility. By leveraging social media and marketplace advertising, businesses can showcase products to a broader audience, drive traffic to their online store, and increase brand awareness. 

Odoo

• Coupon & Promotion Codes: Odoo empowers SMEs with coupon code and promotion management, attracting new customers, encouraging repeat purchases, and facilitating targeted marketing campaigns, which are vital for business growth.
• Customizable Email Templates: Customizable email templates in Odoo enable SMEs to create personalized and professional marketing emails, fostering effective communication, sharing product updates and promotions, and engaging with customers to drive conversions and enhance customer engagement.
• Up-sells in Shopping Cart: Odoo allows businesses to upsell to customers directly within the shopping cart, suggesting complementary or upgraded items to encourage additional purchases. This upselling strategy increases the average order value and boosts revenue for SMEs.
• Marketplace Integration: Odoo’s marketplace integration expands customer reach, connecting them to various marketplaces, reaching a larger audience, and diversifying their customer base. This multi-channel approach maximizes visibility and increases sales opportunities.

The Verdict

Shopify emerges as the winner in marketing, offering merchants a more comprehensive range of channels and effective tools to implement their marketing strategies. While Odoo provides some essential marketing features, Shopify’s broader capabilities enable merchants to execute their marketing plans thoroughly and reach a wider audience.

Point of sale

Shopify

Shopify’s Point of Sale (POS) system is a versatile and accessible solution for every Shopify plan worldwide, catering to businesses of all sizes and types. It seamlessly synchronizes data between online and offline stores, providing a unified retail experience. The flexible payment options, including card, cash, contactless payment, mobile wallet, and gift card support, ensure smooth and convenient customer transactions. 

Additionally, the mobile POS app empowers businesses to process sales and manage inventory on the go, enhancing the efficiency and convenience of their retail operations. With a wide range of features, Shopify POS is a powerful tool for businesses looking to streamline their in-store sales and offer a seamless shopping experience to their customers. Here are some highlight features of Shopify POS for SMEs

• Omnichannel selling
• Smart inventory management
• Staff management
• Checkout
• Products management
• Customers Management
• Reporting and analytics
• Shopify Payments
• Additional payments
• Marketing

Odoo

Odoo’s Point of Sale (POS) systems are seamlessly integrated into the Odoo platform, making managing physical stores effortless. Shop owners can easily handle products, inventory, customer orders, and loyalty programs, enhancing shopper experiences. Additionally, Odoo’s POS includes built-in features tailored for restaurants and offline functionality, improving its versatility and usability.

Moreover, Odoo POS provides offline store management capabilities and offers additional features through Odoo POS Addons, allowing users to customize and optimize their POS system according to their needs. Here is the highlight feature of Odoo’s POS for SMEs:

• Easy Payment Connectivity
• Customer Management
• Real-time stock management
• Booking & Reservation
• Loyalty Program (Gift Card, Coupon & Vouchers)
• Works in Offline Mode

The Verdict

Shopify emerges as the winner in this comparison. While Odoo’s POS system suits some SMEs, Shopify’s POS stands out for its accessibility, scalability, and seamless integration with a vast ecosystem of apps and tools. Additionally, Shopify’s advantage lies in offering a mobile POS solution for both Android and iOS, which Odoo currently lacks. This feature further enhances the convenience and flexibility of Shopify’s POS system for merchants on the go.

Customer Support

Shopify

Shopify offers 24/7 customer support through phone, email, and live chat, ensuring quick assistance for merchants. Additionally, they provide helpful resources like documentation, community forums, and FAQs pages to help users find solutions independently. This comprehensive customer support ensures a smooth and efficient experience for businesses using the Shopify platform.

Odoo

Odoo provides customer support through various channels, including a helpdesk form, phone, email, forum, and community. Users can seek assistance and find solutions to their queries through these channels. The availability of multiple support options ensures that Odoo users can get the help they need and make the most of their experience with the platform.

The Verdict

Shopify is the winner due to its 24/7 customer support, immediate phone, email, and live chat assistance, and comprehensive resources like documentation, community forums, and FAQs pages. On the other hand, while Odoo offers various support channels, it lacks Shopify’s round-the-clock availability. This could be a significant factor leading to Odoo’s disadvantage in the comparison.

Who Should Use Shopify? And Who Should Use Odoo?

Shopify

• Entrepreneurs or small to medium-sized businesses who want to create an online store quickly and easily.
• Businesses looking for a straightforward, all-in-one ecommerce solution will have built-in tools

Odoo

• Small start-ups only require 1 app for 1 functionality
• Larger businesses or those with more complex needs

Shopify vs Odoo: FAQs

Bottom Line

By understanding the differences between Shopify and Odoo, you can decide which suits your business best. Before committing to either platform, it’s crucial to research and compare them to ensure you’re making the right choice.

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