What is the difference between SaaS and custom e-commerce platform?
Digital Marketing Executive
Updated 4 months ago
The last few years have been a golden era for e-commerce, owing to its popularity among sellers and buyers it has undergone a massive transformation. Now there are wide arrays of business models and revenue cycles. Now sellers do not require to build...read more
The last few years have been a golden era for e-commerce, owing to its popularity among sellers and buyers it has undergone a massive transformation. Now there are wide arrays of business models and revenue cycles. Now sellers do not require to build an in-house infrastructure for inventory management, they can start selling with multi-vendor marketplaces and drop-shipping capabilities. As per Statista, the global e-retail market is projected to reach $5.4 trillion by 2022 and $6.3 trillion by 2024.
If you are a start-up and want to develop an e-commerce platform, there are possibilities that you will be overwhelmed with the choices. E-commerce development market ready to accommodate your needs with its ready-to-use SaaS software to highly personalized custom platforms. Whether you want B2C, B2B, P2P or a hybrid of the two - the market is ready to cater to the emerging demands.
Let’s throw some light on both the platform and understand the difference between the two tech stack which are available on the market;
Software as a service (SaaS) e-commerce platform
If you want hassle-free development and delivery then SaaS platforms like Shopify, BigCommerce and Salesforce commerce cloud are the best bet for you.
The time factor and price point are two major merits of SaaS. With a minimal upfront investment and domain, you can build your full-fledged e-commerce platform, and you can start selling within 24 hours. For example, Shopify basic plan starts from $29.
It takes care of all the technical aspects such as hosting, maintenance, operation, data center, installation, configuration, networking, server procurement and more. This way, it shifts your focus from IT to the high-value work of the business.
It does not require you to incorporate a source code on a local server.
However, there are a few drawbacks - as the server is shared, you may experience a web outage at peak hours. Also, it has limited scalability features.
Custom e-commerce platform
If you have resources, IT manpower and time on your hand, then nothing can surpass the long-term benefits of customized e-commerce platforms.
They will be a feature-rich platform, designed to fit the needs of your business. The upfront cost will be higher as you need to deploy a local server and hire a team of IT professionals. It takes more than 3 months to complete the developmental process and finally launches the platform.
Platforms like Genstore offer personalized frameworks which are scalable to no defined limits.
The operating cost of the server and data center is fixed and will remain unaffected by heavy traffic. Here, the entire sales revenue belongs to you, you do not have to share it as commission like SaaS platforms.
All things considered
To know what each platform has for you in store, you need to investigate it yourself by trying their basic packages. This way, you will learn if they are adding to your business needs or worth your investment in the long term.