Anchor Group Podcast: Episode 4
Listen on Spotify - Anchor Group Podcast, Episode 4: BigCommerce Basics
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- Caleb Schmitz, CRO at Anchor Group
- Michael Mueller, eCommerce Account Executive at Anchor Group
- Anchor Group (Company Page)
Podcast Transcript
Caleb (00:00)
Welcome to another podcast episode. Today, we're going to talk about BigCommerce—who it's best for and our thoughts on the platform. I’ve got Michael, one of our BigCommerce executives, on the call, as well as myself. I focus more on general e-commerce and work extensively in the NetSuite ecosystem. That’s our plan for today’s discussion.
To start, I recently posted on LinkedIn about common mispronunciations in different industries. Every industry has those slip-ups, and I shared a few from my own experience:
I was going through the comments, and some of them were hilarious. Danny mentioned he saw "Netflix" mistakenly written into a contract, which I thought was pretty funny. Definitely a yikes moment—you’d have to resend that one.
Michael (01:18)
All within a contract? Dang.
Caleb (01:26)
Yeah, that’s a new DocuSign for sure. Another commenter joked, "This contract does not carry any warranties for the Netflix platform." Pretty funny.
Liam from Strongpoint, which offers a change management solution, said their free Flashlight tool often gets called "Flashpoint." It reminded me of that old Fox show, Flashpoint.
Michael (01:37)
That's funny. Oh yeah, I used to love that show back in the day.
Caleb (01:57)
Vince, a well-known guy in e-commerce, said, "Magneto is not equal to Magento." Gotta get some Marvel in there. Stephanie mentioned people saying "big e-commerce" instead of BigCommerce.
There are also so many different ways people spell "e-commerce"—capital C, hyphens, all sorts of variations.
Another funny one: Jake, an account manager at NetSuite, said he gets called "Jeff" at least twice a week. I replied, "Thanks for the comment, Jeff."
Alright, there were plenty of other funny ones, but let’s move on to today’s topic.
So, let’s dive into BigCommerce. Michael, I’ll ask a series of questions—some I already know the answers to, but they’ll help educate people on a high level. Others, we’ll just talk through together.
First question: What is BigCommerce? Can you give a general overview of what it is?
Michael (03:18)
Yeah, BigCommerce is an e-commerce hosting platform where merchants pay a subscription fee to access the platform. Once they gain access, they can log in and set up their e-commerce website. BigCommerce is designed so that merchants can manage their entire e-commerce operation within the platform.
However, they also have the flexibility to integrate external software to help manage their business. We work a lot in the NetSuite space, and that’s a great example of where NetSuite and BigCommerce intersect. BigCommerce is well known for having open APIs, which allow developers to connect the platform to other software systems. That’s one of the reasons it's a strong option for businesses that need robust integrations.
If you're a merchant, you could manage everything within the BigCommerce ecosystem, but you also have the option to integrate additional tools depending on your needs.
Caleb (04:26)
To give people some perspective, what are some other e-commerce solutions they may have heard of besides BigCommerce?
Michael (04:38)
Some of the most well-known e-commerce platforms are Shopify and WooCommerce, which is WordPress’s e-commerce solution.
These are two of the main players in the space. If you’ve ever used WordPress or Shopify, BigCommerce will feel somewhat familiar in terms of how you manage your store. Each platform has a login portal where you can oversee your e-commerce operations.
Of course, there are key differences between them, which we can dive into, but those are some of the most recognizable alternatives to BigCommerce.
If you're listening to this podcast right now, maybe you've probably heard of Shopify before, or WordPress. And so those are some of the other main players in that arena.
Caleb (05:38)
Okay, so they've got those same types of drag-and-drop tools, maybe app marketplaces?
Michael (05:50)
That's exactly right. There are a couple of different areas to consider when managing a website—the backend, which handles operations, and the frontend, which is customer-facing.
The drag-and-drop tools you mentioned apply to the frontend, where you design and customize the look of your site. This is an area where WordPress is especially well known. WordPress is widely used across the internet, not just for e-commerce but also for blogs, informational websites, and more.
For example, my wife likes to cook, and a lot of the recipe websites we visit are built on WordPress. Many of them don’t even have e-commerce functionality—they’re just content-based sites.
Caleb (06:30)
WordPress is essentially a landing page platform, and WooCommerce is its separate e-commerce application.
Michael (06:43)
That's right. WooCommerce is an extension of a WordPress website. It's an additional layer that you can add to your site to enable e-commerce functionality.
Caleb (06:58)
On the Shopify side, I see a lot of small apparel brands, side hustles, and drop-shipping businesses using it. It seems like it’s widely adopted for those kinds of businesses.
I know Shopify can scale, but I’ve also seen a lot of companies migrate from Shopify to BigCommerce. I suspect that happens due to pricing structures or limitations that come with Shopify as a business grows.
Shopify has a really low barrier to entry, but I imagine that as a business scales, the costs start to add up. Can you walk me through the key differences in how Shopify and BigCommerce structure their agreements? What makes BigCommerce a better fit for certain businesses as they grow?
Michael (07:28)
First off, I'm glad you bring up Shopify because it’s a very popular platform, and for good reason. Shopify is a great solution for small merchants or those just getting started. As you mentioned, it works well for people running a side hustle or mom-and-pop shops that have operated a physical store for years and now want to explore e-commerce.
One of Shopify’s strengths is its extensive app ecosystem. There are tons of apps to choose from, which can be helpful, but not all of them are high quality. That’s something we see merchants run into—too many options, and not all of them are reliable.
To answer your question, merchants using Shopify might start considering a move to BigCommerce when they hit around $5 million in annual e-commerce revenue. The reason is that both Shopify and BigCommerce charge a monthly subscription fee, but Shopify also acts as a payment processor. This means that every transaction on a Shopify store is subject to additional processing fees.
Caleb (08:53)
Is that based on annual revenue or strictly e-commerce revenue?
Michael (09:16)
It’s based on e-commerce revenue.
With BigCommerce, it's different. BigCommerce is strictly an e-commerce hosting platform—it doesn’t have its own payment processor. Instead, merchants can use whatever payment provider they choose. For example, BigCommerce has a close partnership with PayPal Braintree, so that’s often the default option, but you're not locked into it.
It typically makes sense to switch from Shopify to BigCommerce when the transaction fees on Shopify become more expensive than what you'd pay using a third-party payment provider on BigCommerce. That break-even point varies, so we usually work with merchants to analyze their costs and determine the right time to switch.
For many businesses, this tends to happen around the $5 million revenue mark. That’s when transaction fees can really start cutting into profits, making it worthwhile to consider other options.
Caleb (10:32)
So you just described when it makes sense to switch from Shopify to BigCommerce, or at least start evaluating it as an alternative because of transaction fees. But it also occurs to me that there’s nothing stopping someone from just starting with BigCommerce from the beginning, even at a lower revenue level.
I know one of Shopify’s biggest benefits is how easy it is to get a store up and running. But wouldn’t you say BigCommerce is just as easy to launch?
Michael (10:39)
Yeah.
Caleb (10:58)
I understand why Shopify makes sense for side hustles or small businesses just getting started. But I can also see it being viable at scale, even if the transaction fees become harder to justify. I’ve seen companies spending half a million dollars per year just on Shopify transaction fees once they reach a certain revenue level. At that point, the costs really start to add up.
If I were to just start with BigCommerce from day one, is there a path to doing that, even for a business making less than $5 million in e-commerce revenue?
Michael (11:35)
Yes, there definitely is a path to starting with BigCommerce even before reaching $5 million in e-commerce revenue. BigCommerce and Shopify are quite similar in terms of how you set them up. You can log onto their websites, click a few buttons, and within minutes, you’ll have access to your admin hub where you can configure everything you need to launch your store. The setup is straightforward.
One of the reasons Shopify is often more well-known for startups is its marketing strategy. Shopify invests heavily in advertising to the mass market—you’ll see their ads on YouTube, podcasts, and social media. BigCommerce, on the other hand, focuses more on mid-market and enterprise businesses, so their marketing strategy is different. Those of us in the e-commerce industry notice this difference, but for new merchants, it’s easy to assume Shopify is the go-to platform simply because they hear about it more often.
Even if you’re a small business starting from scratch—like a mom-and-pop shop looking to expand into e-commerce—you can absolutely start with BigCommerce. I’d recommend it especially if you anticipate ramping up quickly. If you expect strong growth within your first year, it’s better to start on a platform that can scale with you rather than setting up on Shopify and needing to migrate later. It’s easier to set up a site once than to rebuild and switch platforms once you’ve already gained traction.
Let me add some context to why BigCommerce is seen as a mid-market solution and better suited for more established e-commerce businesses. It really comes down to the toolset. BigCommerce has more advanced built-in features, but like any e-commerce platform, you’ll still need apps to extend functionality.
Caleb, what’s a feature you’ve recently used on a website that helped you make a purchase?
Caleb (14:04)
Yeah, every single time I visit a site, I see pop-ups offering discounts.
Michael (14:19)
Those are definitely popular, though sometimes controversial. Have you ever noticed that if you reload the page or go incognito, you get the same promo? It’s funny, but it works for some businesses. That’s an example of an app or software that merchants need to add to their website to create those kinds of experiences.
On BigCommerce, the apps available are generally more robust and designed for businesses that are scaling. Caleb, since you’ve worked extensively in e-commerce, what kinds of apps have you seen merchants rely on as they grow?
Caleb (14:49)
There are two main categories—B2C and B2B.
For direct-to-consumer (B2C) businesses, the focus tends to be on marketing integrations. Things like email marketing integrations, automated tax solutions, and conversion tools are common.
On the B2B side, there’s a greater need for invoicing portals, custom pricing for different customers, and features that allow sales reps to place orders on behalf of their clients.
Michael (14:55)
Good point.
Caleb (15:17)
Another big one in B2B is sales rep interaction. Many companies need the ability for reps to log in on behalf of their clients and place orders. That, along with dynamic pricing, are major requirements for B2B e-commerce.
Michael (15:32)
That’s a great point. Another app I see often is product configuration tools. These are particularly popular in industries like promotional products. Businesses want customers to be able to add a logo or customize apparel and swag for an upcoming trade show. Those types of tools add essential functionality to an e-commerce site.
Caleb (15:59)
Yeah, things like build-your-own kits, add-ons, warranties, and other customization options.
Michael (16:04)
Exactly. This is why BigCommerce is known as a mid-market solution. The apps available in their ecosystem are more advanced and designed for growing businesses.
On other platforms, many apps and plugins are built by smaller developers—sometimes just a team of one or two people. That means support and reliability can be inconsistent. With BigCommerce, the apps tend to be developed by more established companies, providing better long-term support.
That’s one of the reasons why a business planning for serious growth might want to start with BigCommerce rather than waiting to switch later. Once you scale, you’ll already be on a platform that can handle it.
Caleb (16:46)
So, it’s the difference between a side hustle and an established company.
Let’s take that a step further. We’ve talked about small businesses and side hustles, but what about companies that are evolving? Let’s say you’re a wholesale distributor or a light manufacturer. You’ve already built a successful business—maybe you’re doing $10 million, $20 million, or even $100 million in annual revenue—but you have zero e-commerce presence. You’re still taking orders by phone, and now you’re losing accounts to competitors that offer online ordering.
At that point, does Shopify still make sense? Or would BigCommerce be a better fit? What are your thoughts?
Michael (17:53)
In that case, based on what you described, the first platform that comes to mind is BigCommerce. Right now, BigCommerce is making a strong push into the B2B space, adding features that cater specifically to wholesale distributors, manufacturers, and similar businesses.
For example, BigCommerce has an app called BigCommerce B2B Edition, designed specifically for B2B companies. It streamlines the purchasing process, not just for the first transaction but for repeat purchases as well. In e-commerce, the best customers are the ones who return—second, third, and fourth-time buyers.
The B2B Edition creates a customized portal where companies can log in and manage their orders, account details, and even tax status. The goal is to make ordering as seamless as possible. If a company traditionally places orders over the phone but starts to feel comfortable using the portal, it frees up time for internal teams. Instead of handling calls for every transaction, staff can focus on other tasks that help the business grow.
Caleb (19:41)
On that note, let’s talk about change management and expectations. Let’s say I have a company with a sales team but no e-commerce orders. I launch a BigCommerce site. How many of my customers should I expect to start using it?
Michael (19:45)
Can you clarify?
Caleb (20:04)
I have my own thoughts on this—it’s kind of a trick question.
Michael (20:06)
Let’s hear them.
Caleb (20:11)
I’ve worked more on the NetSuite e-commerce side, which is focused on B2B. One of the biggest misconceptions companies have when launching their first e-commerce site is assuming customers will immediately adopt it and start using it right away. That’s possible, but it’s unlikely to see immediate, widespread adoption without a proper transition plan.
The key factor that companies often overlook is change management—both for their sales reps and their customers. The technical side of launching a website is just one piece. The real challenge is shifting behaviors so people actually use it.
I’ve seen this repeatedly in B2B. If a company doesn’t have a strategy to guide customers and sales reps toward using the e-commerce site, adoption will be slow. That’s why we’ve built managed service plans around this issue.
There are two key ways to drive adoption. Creating more value in the e-commerce portal so customers find real benefits, like self-service tools, better order tracking, or custom pricing. Adjusting sales rep incentives so they actively guide their customers toward the portal. If they’re used to taking orders over the phone, there has to be a reason for them to change their behavior. This could mean adjusting commissions, setting new goals, or offering short-term incentives for adoption.
Too many companies think that just turning on the lights with an e-commerce site will automatically lead to adoption. But it takes leadership and marketing efforts to drive real behavior change.
Michael (22:06)
That’s a great point. For the ROI to really make sense, companies need to be proactive about adoption.
Caleb (22:12)
Exactly. You need to set realistic expectations and understand that adoption won’t happen overnight. It requires coordination between sales, marketing, and leadership.
From what I’ve seen, BigCommerce provides a lot of built-in value that encourages customers to use it. It’s not just another checkout page—it has real functionality that makes repeat transactions easier. That’s a big part of the equation.
But the other part is ongoing education and incentives. You have to repeatedly communicate the benefits to customers and nudge them toward using the site.
Michael (23:05)
From your experience, what’s a reasonable timeline for getting customers to transition from phone orders to an e-commerce portal?
Caleb (23:39)
If the goal is to free up 20% of a sales rep’s time by shifting orders online, I’d say it takes about six to twelve months to reach that point. And even then, it won’t happen just by launching a website—you need a post-go-live plan to keep pushing adoption.
Michael (23:52)
That makes sense.
Caleb (24:07)
I think the best approach is a soft launch. Instead of flipping a switch and expecting customers to immediately use the site, roll it out gradually.
Start by testing with a small group of customers. Work out any issues, get feedback, and refine the process. Then, once you know it’s working well, introduce incentives and targeted messaging to drive broader adoption. That way, by the time you push for widespread use, you already have proof that the system works smoothly.
Michael (24:20)
Once the new software setup goes live, you need to be training your internal teams on how to use it and how to promote it. It’s easy to assume that leadership will have a go-live strategy, but sales reps don’t just want to be told what's happening—they want to see how it works before they present it to customers.
I agree with your timeline. A 20% adoption rate within six to twelve months sounds realistic. If a company achieves better adoption, that’s great, but that’s a solid benchmark to aim for.
One concern I hear often is that businesses like taking orders over the phone because it allows them to maintain a personal connection with their customers. Caleb, you mentioned earlier a way to structure an e-commerce website so that it still preserves that personal touch. Can you share that?
Caleb (26:01)
One of the biggest objections I hear from B2B businesses launching an e-commerce site is that they don’t want customers to stop calling in because they value those personal interactions. I understand that, but I also think it’s important to recognize that if you’re not willing to push customers toward e-commerce, it’s going to take much longer to see ROI.
That said, there are ways to maintain relationships while still moving customers online. One approach I’ve seen work well is tagging customer accounts to specific sales reps. Each sales rep’s profile would include their name, photo, email, direct phone number, and even a personal Zoom link.
That way, when a customer logs into the e-commerce portal, they immediately see their rep’s information in the header. Even if they aren’t talking to the rep on every order, they know exactly how to reach them. This keeps that relationship intact while still enabling self-service ordering.
Michael (28:07)
I love that idea. Another way to extend it is by using backend reporting to track engagement.
Sales reps could receive weekly reports showing which of their accounts have been using the e-commerce site, what their order volume looks like, and where there are opportunities for outreach. This allows them to be proactive about maintaining relationships.
There are two key benefits. First, customers still have a direct connection with their sales reps because of the built-in contact information on their accounts. Second, sales reps can identify which customers need follow-ups, whether for support or to maintain business relationships. This approach empowers sales teams while still encouraging e-commerce adoption.
Caleb (29:10)
That’s a great point. You could even track cart abandonment data for each sales rep’s accounts.
If a customer has items sitting in their cart for a week or two, the rep can reach out and check in. It’s a way to nudge them forward without being too intrusive, while also reinforcing the relationship.
Michael (29:40)
Exactly. That’s a great example of how an e-commerce site doesn’t have to replace personal relationships—it can actually strengthen them.
Businesses can still maintain those valuable customer connections while also increasing efficiency and driving more sales.
Caleb (29:44)
Let’s do a quick yes-or-no round. I don’t know all these answers, so you can just say, "Yes, BigCommerce has that," or "Yes, through a BigCommerce app" if it’s not a built-in feature.
Does BigCommerce work for B2B?
Michael (30:09)
Yes.
Caleb (30:32)
B2C, both on the same website?
Michael (30:36)
Yes.
Caleb (30:38)
Can you pay invoices?
Michael (30:41)
In B2B, yes.
Caleb (30:43)
Can you log in as a sales rep and place an order on the backend of BigCommerce? And can you log in on behalf of a customer on the front end?
Does it have a page builder tool?
Michael (30:58)
Yes, BigCommerce has a native page builder tool. However, there are apps you can get that expand its functionality, so you’re not limited to just the built-in version.
Caleb (31:15)
Can I use other page builder tools besides the one that comes out of the box?
Michael (31:21)
What do you mean by that?
Caleb (31:23)
If I wanted a different drag-and-drop tool instead of the native one, would that be possible?
Michael (31:29)
Yes, you have a couple of options. A popular page builder tool within the BigCommerce ecosystem, and even Shopify, is Shogun.
BigCommerce provides a basic set of widgets for drag-and-drop page building. An app like Shogun expands on that by offering many more widgets and the ability to create templates, which you can reuse across your website.
Caleb (32:21)
That makes sense. Let me think of some other questions. Can you have customer-specific pricing? Can you set pricing on a customer group?
Michael (32:29)
Yes. You can set pricing for a group of customers as well.
Caleb (32:36)
Can you do volume-based pricing?
Michael (32:43)
Yes.
Caleb (32:44)
And item-specific pricing?
Michael (32:47)
Yes.
One area where BigCommerce stands out is headless commerce. A lot of what we’re discussing here—pricing, customer management, backend functionality—happens within the BigCommerce environment. But headless commerce deals more with the front end, particularly page builders. That’s where BigCommerce has a leading edge in the industry.
Headless commerce is becoming a bigger topic in e-commerce. Have you worked with it before?
Caleb (33:28)
I’ve heard the term.
Michael (33:46)
Yeah, it’s a bit of a buzzword right now, but the concept has been around for a while. It’s becoming more common as technology advances and costs decrease, making it more accessible.
Caleb (33:49)
That’s good to know. Maybe we should do a full podcast episode on headless commerce.
Michael (33:56)
I think that’d be worthwhile. Maybe we can bring in someone who has a lot of experience developing headless environments. It’s a cool approach to building websites.
Caleb (34:10)
Let’s plan on that for a future episode.
I have a couple more quick questions. I assume there’s a contact form that collects inquiries.
Is there an ability to create quotes or estimates?
Michael (34:29)
Yes, but you would need to use an app from the BigCommerce ecosystem to add that feature.
Caleb (34:50)
Can you integrate BigCommerce with ERP systems?
Caleb (34:50)
Can you integrate BigCommerce with ERP systems?
Michael (34:56)
Yes, there are many different integration options available. At Anchor Group, we specialize in this and have helped BigCommerce customers set up these integrations. We’re always happy to discuss those options.
Caleb (35:10)
So we've covered ERP integrations, order management, and finance. What about email marketing solutions?
Michael (35:21)
Yes, BigCommerce supports email marketing integrations. There are many apps available in the marketplace for email marketing, SMS, and text messaging. You can integrate these directly into your BigCommerce account using plugins and apps.
Caleb (35:46)
That makes sense. If I were a direct-to-consumer business considering BigCommerce, how is the pricing structured? We talked earlier about Shopify charging per transaction because they are a payment processor. How does BigCommerce pricing compare?
Michael (36:07)
BigCommerce offers different pricing options. There are standard pricing tiers that you can find on the BigCommerce website, where you can purchase a license and get started right away.
For larger merchants—typically those generating around $500,000 or more in online revenue—BigCommerce moves them to enterprise-level pricing. At that point, you would work with a BigCommerce account executive to determine the cost of your website.
One key difference is that BigCommerce’s pricing is based on the number of transactions, rather than taking a percentage of the transaction amount like Shopify.
Caleb (37:11)
So the cost is tied to the number of transactions, not the total dollar value of the transactions. That makes sense for scaling businesses because you're paying per order rather than losing a percentage of each sale.
Michael (37:18)
That’s correct. BigCommerce does not take a percentage of the transaction amount.
Caleb (37:43)
Got it.
For example, if I’m a B2B business and my average order is $1,000—let’s say I sell expensive tools at $500 per unit—a 3% transaction fee would be significant. If Shopify charges 3% per transaction, that adds up quickly.
With BigCommerce, instead of paying a percentage, you’d pay a fixed transaction cost. But if my business has many small-dollar transactions, say $30 per order, I would need to calculate whether the fixed cost is more cost-effective than Shopify’s percentage-based model.
Michael (38:19)
Exactly. It depends on the specifics of the business—order value, transaction volume, and overall revenue.
Caleb (38:41)
So it comes down to comparing Shopify’s percentage-based fee with BigCommerce’s per-transaction fee to determine which is more cost-effective for a given business model.
Michael (38:48)
Yes, and that’s why businesses should evaluate their specific situation. The thought process you just walked through is the right approach. Even if a business is just considering a platform switch, it’s worth reaching out to someone who can help analyze the numbers and determine the best fit.
Caleb (39:11)
Right. So for businesses making that decision, they should come prepared with details like their total e-commerce revenue, current transaction fees, and the number of total transactions. That way, they can make an informed decision.
I think we covered a lot today. I appreciate you walking through all of this. You’re the main point of contact on our team for discussing BigCommerce, so if anyone wants to learn more, they can reach out to you.
Michael (39:31)
Yeah, correct.
Caleb (39:46)
People can reach out directly to you, whether on LinkedIn or through our website, and it will get routed to you. You can walk them through an evaluation to determine if BigCommerce makes sense for them. I assume you'll also bring in the right person from BigCommerce when needed, but you'll scope out the implementation, provide product support, and if anything is more on the NetSuite side, it typically routes to my team, and we coordinate from there.
Thanks for going through all that. It sounds like we’ve already set up another topic for our next discussion on headless commerce.
To wrap things up, let’s go through a few more of these funny comments before we close out. There were a handful of good ones, but I didn’t want to go too long earlier.
Michael (40:20)
Right, that’s right.
Caleb (40:41)
Here are a few more funny ones. Someone shared that they once accidentally said "Netflix" on a cold call. That’s a common slip-up, but imagine getting a cold call and thinking, "I didn’t know Netflix raised their rates. They must be really desperate!"
Michael (40:57)
Yeah.
I didn’t know Netflix was cold calling.
Caleb (41:10)
And then Sunil mentioned that back in the day, when cold calling for NetSuite, people would often mishear it as "next week," which would get confusing.
I think I already covered most of the funniest ones earlier, but that’s okay.
Well, thanks, Michael, I appreciate the time. We’ll dive into Headless Commerce next. Thanks, everyone!
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