![]() ![]() ![]() We’ll take a look at scalability, security, cost and pricing, design and SEO. We’re looking at five factors that are critical to the success of your online business. Now it’s time to get into the nitty-gritty of both Shopify and Squarespace when they’re placed side-by-side and compared. Since it was founded in 2003, the platform has become popular and loved by many people around the world due to its accessibility and blog-hosting service. Squarespace has a style editor which makes it exceptionally easy for a non-technical person to customize their website how they wish. The basis of Shopify has always been centered around creating web-stores whereas Squarespace can work for anyone. By 2008 it was generating enough profit to serve as a solid eCommerce service for entrepreneurs and business owners. It has more features to suit your needs, but it will come at a higher price than getting the basics of Squarespace. Typically, if you want the biggest and best eCommerce business, you will opt for Shopify. Whereas, Squarespace is more general which has basic eCommerce tools for building a basic web-store. It is primarily focused on sales and includes features that are driven to meet your requirements as an eCommerce business. Shopify is a highly regarded platform that is well-equipped to handle any website content you wish. However, choosing a platform is down to your individual preference and how you think your business would benefit from the platform itself. Let’s do this! Overview Designīoth Shopify and Squarespace offer unique and beautiful themes for any consumer to make use of. It’s important to be completely clued up when it comes to finding the best platform for your eCommerce business. While we obviously prefer Shopify, we’ll be performing an unbiased comparison of the two platforms including where they excel and fail. We want to put them to the test, taking a look at the critical features and aspects of both platforms. ![]() Shopify is clearly one of the biggest contenders in the space, but they are definitely not alone. When it comes to providing the ultimate experience to match your needs and expections, how does Shopify stack up against one of their competitors - Squarespace? The author or authors do not own shares in any securities mentioned in this article.įind out about Morningstar’s editorial policies.The best eCommerce platform is forever an ongoing discussion and debate in the business world. Shares currently trade at a hefty premium to our updated valuation. As a result, while we expect some margin expansion, we think the market is too optimistic about the firm’s ability to upsell meaningfully to the existing base and to profitably scale at a rapid pace. Further, continued investment for growth and scale through innovation will likely drag on profitability upside. Over time, we believe competition will limit the firm’s ability to increase prices over the subscriber base, hindering top-line growth and efforts to take share. However, with weaker GMV gains weighing on commerce revenue growth and increased investment in product innovation, our 2023 operating margin estimate remains roughly flat. As such, we slightly raise our fiscal 2023 top-line growth forecast to 10.5%, at the low end of guidance and about 130 basis points above our prior forecast. With 92% of revenue coming from subscription services in fiscal 2022, Squarespace looks to further benefit from price increases over new and existing subscribers as well as further skew toward fast-growing, higher-value commerce solutions. Excluding a one-time goodwill adjustment in the fourth quarter, fiscal 2022 operating margin improved as we expected to 1.5% on reduced sales and marketing spending, even with foreign exchange headwinds and softer gross merchandise volume, or GMV, growth.įor the no-moat firm, we bump our fair value estimate up to $19.60 from $17.00 on both time value of money and more resilience to macroeconomic challenges in the near term than previously anticipated. Revenue growth of 11% year over year (14% in constant currency) was driven by a continued mix shift to higher-value solutions, like-for-like price increases, and strong retention in the subscriber base. Squarespace SQSP achieved a solid fiscal 2022 result largely in line with our expectations despite an uncertain macroeconomic environment. ![]()
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