E-commerce sites are gaining immense popularity in the current scenario. Everyone wants to sell their products online as it is more convenient for the user. And because of this, the benefits incurred by the business owners are also huge.
But the most difficult question that a business faces is the choice of an e-commerce platform for creating the online site. There are numerous platforms available in the market. They all have something to offer to the designer.
Some have better documentation, while others have better pricing or interfaces. Another question with respect to this is whether to go for an e-commerce platform or for the custom platform?
This entire process is overwhelming, especially for startups. A startup is a small business, and they usually depend on investment for finance. Initially, investing a lot of capital in an e-commerce platform might not suit them. Thus, for such firms, we present two best e-commerce platform- SaaS and Custom e-commerce solution.
Both these tools are ruling the market and are best suited for startups. In this blog, we will compare different points of SaaS e-commerce platform comparison with Custom one. This will help you figure out which software provides the best solution to all your problems within your set budget.
But first, let’s learn what they are:
SaaS (Software as a Service)
- It is a software distribution model in which consumers access it through the cloud. The application is hosted by a service provider, and users can access it via a web browser.
- It is easy to learn, understand and runs smoothly.
- It doesn’t require installation, and you get the desired environment for a small fee.
Custom e-Commerce solution
- This is a process wherein the owners hire an expert for creating the site. They analyze your needs and document them. After this, they hire coders for developing the e-commerce site.
- It also requires to purchase a domain name, get hosting and insert the code. All these things combine to make the site run.
- The coders must be retained by the company as they would be required in the future. For any modification or updating the e-commerce site, the same developers must be available.
Below we will discuss some points, whose difference is relevant for choosing between the two e-commerce platforms.
SaaS e-commerce platform comparison with custom e-commerce solution
Here are the points of comparison between SaaS e-commerce platform and custom e-commerce solution:
SaaS: You just have to purchase the domain, and the service provider will set up everything for you. All different platforms have different prices for setting up SaaS. Shopify development service range from $9-$299 per month.
Custom e-commerce solution: The fee will include the salary of the consultant. As he is responsible for hiring the coders, and making a roadmap for developing the online site. Also, the salary for the developers needs to be given for 2-3 months.
2. Time Needed
SaaS: One of the best e-commerce platforms, SaaS takes usually a day or two, and your online website is ready.
Custom e-commerce solution: At least 3 months’ time is needed for the software to get ready. After that, the site will start working. Additional month time may be required if you plan to add custom features and facilities.
- Is the best e-commerce platform for users that wants to develop a general online site.
- It doesn’t provide much space for scalability.
- You can only move within the established structure.
- Due to certain limitations, expansion of the business is not possible.
- It is great for developing all types of sites. Through this, you can create customized structures.
- Full scalability with ease
- Since, softwares can be modified anytime; it allows the expansion of business.
SaaS: Percent of revenue loss is high due to-
- Shared servers that can’t handle a heavy load. Also, if the visitors are more the site may crash or hang. This leads to huge revenue loss.
- If the server is bad, extended searching capabilities will suffer too. This means no festive discounts or offers and no special checkout/delivery. These factors will make the consumer switch, and revenue generation would be low.
Custom e-commerce platform:
- The server is robust and can handle heavy load and numerous visitors.
- The extended capabilities for searching are there which makes special discounts, offers, and delivery available for the consumers.
- Also, all the sales revenue earned is yours.
5. Extra benefits
Custom e-commerce solution:
- You can control the running costs as they are fixed. The initial cost for setting the software is high.
- No middlemen, all revenue and profits will be enjoyed by you.
In short, SaaS is initially economical, but has its own share of issues and can be costly in the long run. While going for Custom e-commerce platform means investing more in the beginning. But the benefits that you later get are worth the money you have invested.
- So, after studying all the points of difference for SaaS e-commerce platform comparison with a custom solution, I conclude that:
- While choosing an e-commerce platform, it is best to analyze your needs and budget.
- Also, try both the platforms as it will give you a personal experience of how it will work for you.
- Moreover, go for a platform that is flexible and provides more features. If you want to expand your business in the future, a Custom solution is best for you.
- Read all the points carefully and according to your requirements finalize one.
- Since you are a startup, looking up to the e-commerce sites like Amazon or Flipkart is wrong. They have a bigger budget and goals. You need to select a platform that supports your needs and is within your reach financially.
While deciding an e-commerce platform in Magento, always think of the long-term. The best e-commerce platform is the one which gives you the control. The features, control, scalability and timing and price all need to be assessed. It is a time-consuming process, but certainly worth it if you want a successful online website.