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SaaS vs Custom-Built E-commerce Platforms

SaaS vs Custom-Built E-commerce Platforms
20/10/2022 57

Even for an established company, building and expanding a successful e-commerce firm is difficult; for a startup, it can be more difficult, given the current level of competition. Before selecting a platform for your e-commerce site, you should thoroughly weigh your possibilities. Of course, you have to consider the financial aspect, but you also have to consider the benefits they provide. It's essential to pick the right SaaS Development Company with emerging eCommerce platforms, tools, and technologies.

As per saas-software-statistics of January 2022, Adobe Inc. is the largest SaaS company in terms of market cap at $243 billion. It is followed by Salesforce ($224 billion), Intuit ($160.7 billion), and Shopify ($143.2 billion). (Mike Sonders, 2022)

Among many eCommerce software systems, the two primary types of eCommerce websites are those established on platforms with subscription models and those created on wholly-owned eCommerce models. To fulfil the demands of the buyers, a sizable number of conventional manufacturers, wholesalers, distributors, and retailers have been forced to, or instead have chosen to, sell their products online. The merchants can offer their goods in a variety of online stores. However, it is also crucial for businesses to establish an online store to attract their devoted customers to their platform and earn the earnings they ultimately share with the marketplaces, which demand exorbitant fees for each item sold through their platform. The best option among these two will depend on your company's needs. When selecting the best eCommerce platform for startups, it is necessary to compare SaaS eCommerce Platforms and Custom eCommerce Platforms.

SaaS vs Custom Ecommerce Platforms: which is suitable for the business?

The technology revolution has taken the business to the next level, offering growth, sustainability and a future-oriented approach to follow. Saas and customer e-commerce platforms both have their own benefits when we look at them separately.

SaaS eCommerce Platforms:

The SaaS eCommerce platforms are cloud-based products; no software needs to be installed on your premises to use them (server). It is pre-built software that is distributed over the cloud. Since it takes almost no time to set up and there is no need to look for hosting options, you can start selling immediately. Simply uploading your stuff is all that is required. You must pay the vendor a monthly charge, plus additional fees may apply for supplementary services like payment gateway integration.

The SaaS providers themselves host the complete piece of software on their hosting platforms. The service provider hosts and maintains the software is the key benefit of SaaS eCommerce platforms. One must look around for a hosting company to use. Instead, they are in charge of everything else, including uptime, performance speed, software updates, and bug patches. Your provider monitors and keeps track of how well your store is doing. SaaS suppliers are frequently praised for their friendly and responsive support staff.

Custom eCommerce Software:

As opposed to SaaS-based platforms, custom eCommerce entails either creating the eCommerce software from the start or modifying one of the easily accessible open-source solutions currently on the market, hosting the application built on one of our servers. Either by taking care of them ourselves or using a group of knowledgeable IT specialists. A self-hosted, custom-built e-commerce platform offers significantly greater freedom, but that freedom also entails more responsibility.

To meet the demands of the consumers' contact with the online store, you must maintain your servers and make sure that the software is supported. On the plus side, you may choose when and how to optimize your website to give your visitors an exceptional browsing experience. An initial SaaS-based solution will be acceptable for most enterprises launching in e-commerce. It can be helpful to get started immediately and test their concept. However, as the firm expands, the lack of adequate instruments for optimization may obstruct growth or even place your company at a competitive disadvantage.

The pricing consideration is the primary deciding factor while selecting any model. SaaS-based solutions are more affordable initially, but you often pay a monthly fee that rises as your organization expands. In contrast, the initial investment is higher for custom solutions, primarily made up of one-time development costs with only a small amount of recurring expenses (aside from possible maintenance costs) and any additional module development that becomes necessary as your business grows.

Why Custom E-Commerce Platforms Are Better SaaS E-Commerce Solutions?

The ideal e-commerce platform for startups and small businesses is a custom platform solution. By adopting a customized E-Commerce platform solution, you may scale the growth rate of your organization if it experiences rapid growth. You can only use a few features using SaaS, and customization is not an option.

SaaS is a closed source, meaning that if you pick it, you must rely entirely on the vendor. You should operate independently and use a bespoke e-commerce platform solution if you want to succeed in business. You may customize your e-commerce platform and choose your website host, developers, design, and special features based on your preferences. To operate a profitable business, you cannot afford to be constrained by the benefits and drawbacks of custom e-commerce platforms. This approach is appropriate for large-scale companies and is typically utilized for applications that require more flexibility. Because a custom E-commerce system is an open source, you can customize the source code to your specifications. You can make your personalized website from scratch or seek assistance from top developers who can quickly create sophisticated codes to give your website a distinctive appearance without using pre-made templates. It takes more time than purchasing a ready-made website. You can add many products and make any personalized design according to your tastes and preferences.

1. Costing for SaaS eCommerce platforms

Going with SaaS is the most excellent option if you are new to the internet business because you will be able to comprehend some of the methods and strategies involved in creating a website. You can get a domain from a hosting company and begin making money immediately.

2. Costing for custom eCommerce platforms

You might choose custom software solutions with significant capital investment and long-term success. Engage a consultant to produce a planned road map for your site, use open-source tools to build it, and then hire a programmer to implement specific features.

3. Time Factor for SaaS eCommerce Platforms

You may start using it the day of delivery and save a tonne of time.

4. Time Factor for custom eCommerce Platforms

For custom e-commerce, you need at least three months to start making money, and it will take longer if you want any unique extra features.

5. Scalability for SaaS eCommerce Platforms

Due to the software's limitations and limited scalability, SaaS allows you to grow your firm to a vast scale.

6. Scalability for custom eCommerce Platforms

Due to the customizable structure of Fro Custom E-commerce, it is completely expandable, and you may even grow your business to a large scale.

7. Income for SaaS eCommerce Platforms

For SaaS businesses, money loss is a concern because there's a danger that your shared server won't function well or won't be able to manage a lot of traffic, which could cause websites to collapse. You cannot offer discounts, personalized checkouts, or special holiday discounts.

8. Income for custom eCommerce Platforms

For custom e-commerce, you can make more money because of their tailored designs and robust servers and data centres that can handle the high traffic volume. You can add unique features like bundle discounts, personalized checkout, and amazing offers.

In the end

Companies should opt for an eCommerce development company for long-term solutions because you started your business to reap long-term rewards. However, you can use SaaS products if you are short on time. Based on cost, time, use of special features, and the newest technology, you can select the option that best suits your business preferences and professional needs. As you can see, each platform has advantages and disadvantages, so picking the ideal one depends totally on your preferences, objectives, and business needs. Any platform you choose to create your e-commerce website is OK as long as the technological partner is knowledgeable and dependable.


1. What is a Customized eCommerce Platform?

Online retailers can manage their websites, marketing campaigns, sales, and operations using an eCommerce platform. In addition, they have particular eCommerce capabilities, including shipping and payment options.

2. Why create a unique e-commerce website in 2022?

5 Reasons to create Custom eCommerce Solutions

  • Build customer loyalty and stand out with your brand identity
  • Provide an Integrated User Experience
  • Ongoing business expansion
  • Increase sales.
  • Increased effectiveness
  • Simple management

3. What is SaaS eCommerce?

Software-as-a-service, or SaaS, is a deployment strategy in which a service provider centrally hosts the software and subscriber-based licenses. Ecommerce software suppliers use this concept to help businesses cut infrastructure installation and maintenance expenses and quickly unpack and deploy an eCommerce solution.

4. What have technological advancements been crucial to the creation of successful e-commerce platforms?

Chatbots, AI, and voice assistants are increasingly indispensable for e-commerce companies to succeed since they are all interrelated. Businesses must adopt these new technologies to appeal to present and potential clients.

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