What should you choose for an online store: SaaS or open source, or maybe a dedicated system?

When deciding to start your own e-business, the question always arises about the best e-commerce platform. As an owner, you most often choose between the SaaS option, i.e. a solution provided as part of a monthly subscription, a dedicated store and a platform based on open source code. So which online store software is more effective for large, medium-sized and smaller, quickly growing businesses? Let’s compare the possibilities, taking into account the most important aspects.

Online store in the SaaS model

SaaS services are usually available at affordable prices with no hidden costs, making expense control very transparent. They run in the Cloud, so you can use them from anywhere. Moreover, you do not have to worry about their maintenance, because the software provider provides support and development.

Examples of producers of platforms for online stores in the SaaS model are: AtomStore, Shoper and Idosell. Abroad, the most famous ones include: Salesforce, Shopify and Shopware.

Online store in the open source model

What makes open source software special is that the source code is open to the public, so developers can make changes to it. This is a good solution for e-businesses that want to work independently and intensively on their own projects. However, using open source platforms requires more specialized knowledge of the technology, as well as effort in administering the platform itself. Therefore, the support of an agency is often useful.

Examples of open source platforms include: PrestaShop, Adobe Commerce (Magento), WooCommerce and OpenCart.

Online store on which platform – SaaS or open source

In this article, we will focus on two types, excluding dedicated systems that are created to suit the individual order of an online store. Therefore, they usually involve higher costs and require even deeper analyses. Due to the development of other options that are popular, we will discuss the SaaS and open source models.

Fees

One of the indicators that should be carefully calculated is the total cost of ownership (maintenance cost). It is therefore worth preparing financially well in advance, taking into account all your needs and the costs of additional modules or commissions. With today’s rates in the IT industry, it can be high when we choose the open source option. A SaaS sales platform based on a fixed subscription, in turn, significantly reduces the initial financial investments related to the migration, configuration, and launch of an online store.

Scalability

Another issue is whether the tool can adapt to changing business requirements. If a company suddenly increases its order volume, in SaaS you can usually choose a higher package and use it almost immediately. Everything runs smoothly, the consumer does not see any differences, and you do not expose yourself to unnecessary migrations and downtime. This does not mean that if the store uses open source software, changes have to take a long time. It all depends on access to an IT team or an authorized agency and the budget that a given online store has.

Updates and development

SaaS is also an e-commerce platform that is delivered, updated and maintained by the provider, not the seller. He is responsible for ensuring continuity of service, data protection and updates. When a decision is made to open source software, the problems and responsibility lie with the vendor, and it is up to the vendor, in consultation with the IT department, to resolve them appropriately.

The advantage of SaaS solutions in e-commerce is especially visible in adapting the online store to regulations such as GDPR, the Omnibus directive, changes in Google algorithms, Facebook feed, Allegro API, the introduction of TikTok or cookieless. And these are just a selection of the aspects that need to be monitored, analyzed, designed, programmed, tested and maintained.

Open source is often described as a more flexible option. You can adapt them to your needs as well as applicable regulations according to your preferences. However, please remember that in this case it means the need for constant work and updates. The person responsible for maintaining system compliance must constantly monitor and update the code to ensure that the platform complies with applicable law and changes in the market.

Time-to-market

Another important issue is the time of market entry, known as time-to-market. SaaS usually provides a shorter time needed to launch the store. It provides a ready-made platform that needs to be launched, supplied with products and an advertising budget. In the case of an open system, the seller is usually provided with basic sales functions at the beginning. The success of the store depends more on the skills of the developers of the implementing agency, so it is worth asking about it at the beginning of cooperation.

Customer service and problem-solving

SaaS platforms usually have a service desk dedicated to customers, which tries to provide ongoing support and solve reported problems. This doesn’t mean there isn’t support for open source. You can count on articles, documentation, and a community that shares its experiences. All specific functions depend on you, so it is difficult to provide standard customer service.

Is an online store in SaaS the perfect solution?

The SaaS platform in e-commerce offers many advantages related to flexibility and scalability. It is easy to use and does not require much administration effort. There are also enterprise SaaS platforms available on the market, such as AtomStore, which offer advanced sales mechanisms and capabilities. On the other hand, open source can be treated by e-businesses as a long-term investment. The decision therefore depends on the individual situation and strategy of each company. Before you take it, check the checklist below:

  • When choosing a platform for your e-store, be sure to take into account the number of modules, plug-ins and external tools needed to sell.
  • Create a list of the most important functions, e.g. integration with marketplaces, support for loyalty programs, extensive modules for promotional campaigns, possibility of expansion to foreign markets.
  • Check what a given e-commerce platform can offer you.
  • Also consider whether you have the resources to technically support the system, and in the case of open source, read opinions about agencies.
  • Check what it is worth investing in and at what stage of development.

Migration from one e-commerce platform to another

Migrations of an online store from one platform to another happen often. This is natural, because the originator of the e-store initially chooses a simpler and cheaper system, which is understandable from a business point of view. When his idea is successful and the store begins to develop dynamically, it turns out that the existing platform encounters a technological barrier and does not have sufficient functionalities, is not adapted to high traffic or does not allow selling abroad. Then owners start thinking about alternative solutions.

Before making a change, it is important to precisely determine the problems that a given e-business is currently struggling with and the solutions it needs, and then compare the options available on the market in this respect.

Conclusion

When deciding to start or redesign an e-commerce platform, choosing a SaaS or open source solution can be a challenge. However, if you consider the needs of your e-business and select the most likely development option, this decision will make it easier for you to choose a scalable and competitive solution that allows you to implement your plans and achieve success.

Choose a SaaS platform for your online store if:

  • You do not have your own IT infrastructure or programming competences to run an e-commerce platform.
  • You don’t want to pay for the errors of individually employed programmers (in the SaaS model, as part of the subscription, the software provider is obliged to remove defects and fix errors; in the case of open source software, you often pay for everything).
  • You don’t have a very large monthly budget to maintain and develop your online store.
  • You don’t want to have technical debt in a few years and have to think about migrating the system because of it.
  • You want to develop your e-commerce platform dynamically (in the SaaS model, hundreds of customers finance and support the development of your e-commerce platform).
  • You want to be up-to-date without additional costs (in the SaaS model, the software provider ensures that the software complies with the law or market trends).

Choose an open source platform for your online store if:

  • You have an IT background or competence in this area (and both time-to-market and total cost of ownership tend to be better with this type of software).
  • You need personalized solutions on the administration side that no SaaS software can handle (and manufacturers do not want to compromise on the scope of implementation work). However, check out Enterpise’s SaaS solutions such as AtomStore first.
  • You want to support the custom sales model you have created for your online store.

Author: Gabriela Gil, Marketing & Communications Manger at AtomStore