In this video, I will be making the case that Wix (NASDAQ:WIX) is a better buy than Shopify and explain why Wix is much more than e-commerce. 

What is Wix?

Wix helps you set up your website, online store, blog -- basically your digital presence. The main competitors are not just e-commerce websites such as Shopify and Amazon but also social media channels such as Twitter, Instagram, and Facebook. Because let's face it, do you really need a website if you're an influencer or freelancer?

But if you're a small business or a business, the answer is yes.

Business and creative solutions

Wix users pay a subscription fee for access to creative solutions, the tools for creating and managing websites. This accounts for 79.2% of 2020 revenue.

Business solutions revenue comes from Wix's marketing and CRM app (Ascend), reselling G-Suite products, creating and managing Facebook ad campaigns, and Wix Payments. Wix Payments was launched in 2019 and has grown to more than $50M in revenues in 2020 (very small compared to Shopify).

Wix is not fully focused on e-commerce because that market is being won by Amazon and Shopify. Wix is focusing on everything else that goes digital. Not every online business is e-commerce.

*Stock prices used were the closing prices of April 23, 2021. The video was published on April 23, 2021.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.