Open Source or SaaS, which platform should you use for your new eCommerce site? This is probably the first question you would ask yourself when you decide to enter the business for the first time.
The evolution of online shopping has seen massive growth over the years. But the real boom came in the year 2020. As a result, in the U.S. alone, eCommerce sales are projected to exceed $1.3 trillion by 2025, which is more than triple what they were less than a decade ago.
If you decide to get into the eCommerce business, it could become a headache to choose the platform for it. People are smart and like to compare different platforms before they settle for the one they want.
And the battle comes down between Open Source vs SaaS platforms.
To make the right pick, you need to understand the different aspects, features, benefits, and limitations of each platform. This could also include the cost, setup, maintenance, support, ease of use, flexibility, security, and more.
These are the deciding factors for anyone wanting to get started with their eCommerce business.
So let's have a look at all the essential functionalities, advantages, and features to get an overall idea about these two popular platforms for eCommerce.
Open Source vs SaaS eCommerce: The Key Differences That Sets Them Apart
More than anything people want to know in what areas both of these platforms differ from each other. This makes it easier for potential eCommerce users to compare and decide on the platform they need to use.
These differences will surely help you understand the key sector of these two platforms better. So let's look at some of the key differences that Open source and SaaS platform for eCommerce possesses in terms of:
- Cost & Expenses
- Technical Aspects
- Setup & Installation
- User-friendliness & Flexibility
- Design & Customization
- Website Security & Compliance
- Maintenance & Support
1. Cost & Expenses
Open Source eCommerce
Even though the open-source platforms are generally free, but when you add up the cost of its hosting, development, customizations, integrations, security & compliance, this could cost up to several thousands of dollars every year.
All open source ecommerce platforms are free.
But as an eCommerce platform, this expense over the years is not much when you look at the endless options you get to customize and develop the system.
SaaS eCommerce
On the other hand, SaaS follows a subscription-based business model. This means your business will have to subscribe to a monthly or yearly plan and pay a fixed subscription fee for it.
In a nutshell: Less mess, low effort and big cost = SaaS
This payment model is scaleable and the business can downgrade or upgrade to the various plans depending on the business requirement.
2. Technical Aspects
Open Source eCommerce
One of the drawbacks of open source is the amount of time and cost that it requires to fulfill its technical work. Most of them need to hire developers to get this work done.
Technical work related to hosting, installations of the platform, PCI security compliance & software updates, and maintenance of the backend interface, etc, need proper guidance and monitoring all the time in the open-source platform.
SaaS eCommerce
Now, here on this platform, almost all the technical work is done and managed by the service provider for you. Once you have decided to launch your eCommerce with a SaaS platform, you will no longer be required to worry about its hosting, software updates, installations, security, setup, etc.
It is commonly designed so that any non-techie person will be able to easily manage your online store.
3. Setup & Installation
Open Source eCommerce
It is not too difficult to set up and install either of the platforms. Moreover, open-source provides the option of installation at zero expense.
But when it comes to setting up the platform for an eCommerce site you will have to do everything from scratch on this platform.
SaaS eCommerce
On the other hand, you will mostly have to opt-in for a free trial on the SaaS platform before you decide to subscribe to their services. You do not need to start everything from scratch either.
Many of the processes will already be done by the service provider too. Moreover, the best part is you will get access to a vast range of pre-designed, themes, plugins, modules, add-ons libraries. You can even build your site simply by drawing and drooping its elements.
4. User-friendliness & Flexibility
Open Source eCommerce
Sometimes as an eCommerce site owner you might need to use third-party tools for accounting, warehouse, inventory management, etc, to boost some of your application's functionalities.
However the integration process of these extensions might be a little tricky & get a little longer if you do not have any prior coding knowledge.
SaaS eCommerce
Whereas, on the SaaS platform, there are thousands of third-party application integration options. So anyone can integrate them without any hassle even if they don't have extensive prior coding knowledge.
It is as simple as plug-and-play. The ease of use and the flexibility enable you to spend less time learning technical features. Moreover, you get to spend more time exploring and implementing new eCommerce marketing strategies.
5. Design & Customization
Open Source eCommerce
Both the eCommerce platform has basic design and customization needs to be fulfilled. In the case of open-source, it is a platform that supports the best design and customization functionalities.
So there is no limit when it comes to handling your eCommerce customization and adapting to the design and development of your e-store. Due to its easy design and customization option, most companies decide to opt for open-source platforms for their eCommerce.
Note: If you have a WordPress platform for your eCommerce site, then you can effortlessly design your site with the Happy Elementor Addons.
SaaS eCommerce
It is already mentioned that SaaS eCommerce platforms are well-known for their easy and hassle-free setup procedure. Not to mention its offering of extensive marketplace-related apps that increase the functionality of your eCommerce cart abandonment, email marketing, customer support, and more.
Even after all that, there is a restriction in the access of its source code which doesn't allow the user to edit or update it for their use. Due to this reason, the capabilities of customizing features, plugins, themes, and performance are also limited.
Also Read: How To Start Your Website for Free
6. Website Security & Compliance
Open Source eCommerce
Every eCommerce website's security and PCI compliance are the top most important thing that builds trust among customers. With an open-source platform, you are responsible to ensure the security of your website.
You can pick your security tool to keep your eCommerce site safe & secured from outside threats. Moreover, You will need to make sure, that your security firewall is up-to-date with bug fixes and meets the PCI compliance standards.
SaaS eCommerce
Now in the case of the SaaS platforms, the service providers are responsible for taking care of the website's security concerns. They will handle and look after the security as well as the PCI compliance for your eCommerce site.
They will even release new security updates whenever it is required to keep your eCommerce site protected. From top to bottom, they take all the necessary measures for your website's security.
Also Read: Best Security Tools To Protect Your WordPress Website
7. Maintenance & Support
Open Source eCommerce
Just like the security of the eCommerce site, you will have to be responsible for this platform's maintenance and support. This means you have to take care of the administration and infrastructure of the platform as well.
More so, you will need to look out for all the software upgrades as well as updates. If any issues occur within your system, then you will have to find a resolution and make all the fixes on your own.
Note: If you have a WooCommerce site but you don't have the budget or time to maintain and manage your marketplace, then you can turn to a complete marketplace maintenance & support service provider, weCare
SaaS eCommerce
Now when it comes to the maintenance of a SaaS platform for eCommerce, this requires full-on effort from the service provider's end. On an ongoing basis, you get software updates from the host and also keep a lookout for any upgrades required as well.
From the user's end, you will not need to look after the server maintenance or performance issues and more. So this means you will always have someone to go to, whenever you get any issue or are stuck with the system or applications. As it is fully their responsibility to fix all these issues for you.
Summary: Saas vs Open Source eCommerce
| Aspect | Open Source eCommerce | SaaS eCommerce |
|---|---|---|
| Cost & Expenses | Costs can add up for hosting, development, etc. | A subscription-based model with fixed fees. |
| Technical Aspects | Requires hiring developers and ongoing monitoring. | The service provider manages technical aspects. |
| Setup & Installation | Installation may require more effort from scratch. | Often comes with a pre-configured setup. |
| User-friendliness & Flexibility | Third-party integrations may require coding knowledge. | Plug-and-play integration for third-party apps. |
| Design & Customization | Unlimited customization options. | Limited customization due to restricted source code access. |
| Website Security & Compliance | The user is responsible for security measures. | The service provider handles security and compliance. |
| Maintenance & Support | The user is responsible for maintenance and support. | The service provider takes care of maintenance and support. |
Open Source vs SaaS eCommerce: Pros and Cons
We are done with the key differences and similarities of these two preeminent platforms for eCommerce. And now it's time to understand its basic advantages and limitations. This would certainly give you a better idea about these two platforms and why you should get one over the other.
Open Source
| Pros | Cons |
|---|---|
| Fully customizable due to control over the source code | Modifying the source code can be complex |
| Very helpful, strong, and vast community support | Has some security vulnerabilities |
| Built with the future generation in mind | Heavy maintenance is required to keep it up and running |
| Highly scaleable when you start small as a business | |
| Fast, reliable & lower in cost solution |
Examples of some top Open Source eCommerce include:
- WooCommerce
- Magento
- OpenCart
- PrestaShop
- Drupal Commerce
- Zen Cart
- Spree Commerce
- Sylius
SaaS
| Pros | Cons |
|---|---|
| Quick setup ability for faster market launch | Lack of variation in terms of using certain applications only |
| Easy to use & implement | Alteration or customization of source code not possible |
| Fast & secured eCommerce platform | Unavailability of advanced customization for complex business processes |
| Scaleable with your business growth | Lacks in B2B business needs |
| Strong community and customer support |
Examples of some top SaaS eCommerce include:
- Shopify
- BigCommerce
- Squarespace
- Wix eCommerce
- Volusion
- 3dcart
- Big Cartel
- Ecwid
- Sellfy
- Gumroad
Final Verdict: Which One Should You Pick For Your Online Business
It is quite clear that there is no shortage of eCommerce platforms out there in the market today. So it could get a little confusing for the new eCommerce merchant to know which one to pick out of them for their business.
But the below table would hopefully help you with your decision regarding picking one of these platforms. And you will probably be able to determine the type of eCommerce platform you should go for after this. So here it goes:
| Choose Open Source Platform If | Choose SaaS Platform If |
|---|---|
| You need your own development roadmap with multiple integrations for your unique products. | Customers don't want to be involved in extensive features & functionalities and they do not have many unique products or external integrations. |
| You want to share profit per sale and do not want to pay annual rental fees. | You are cost-conscious about your business and have a low IT budget as well focuses more on the stabilization of the business. |
| Improving and innovating your customer experience is your goal to gain a competitive advantage. | Your business is in the startup and expansion phases of growth, typically in its first 3 years. |
You want to own your customer's data and hosting. | You need an eCommerce business model that has a very straightforward cost and implementation process with a platform that is completely managed by the service provider. |
What's More?
Besides all these, you should also know that open source means license/owner-free code. And it is bundled with several essential modules. You can do any type of customization as per your need to your eCommerce site with it.
On the other hand, the SaaS platform is also very popular for developing eCommerce sites that have pre-built & configurable tools that enable its users to choose from a wide range of features & functionality.
Lastly, above all, whether you go for your eCommerce business with an Open Source or SaaS platform, you will always need to make sure you have the right settings and functionalities available for you.
We have made a table of the advantages and disadvantages of both these platforms so that you would get a clearer idea-
Advantages & Disadvantages of Open Source vs SaaS eCommerce-
| Aspect | Open Source eCommerce | SaaS eCommerce |
|---|---|---|
| Cost & Expenses | Advantage: Initial setup may be cheaper. | Advantage: Predictable monthly costs. |
| Disadvantage: Ongoing costs for hosting, and customization. | Disadvantage: Subscription fees can accumulate over time. | |
| Technical Aspects | Advantage: High level of customization and control. | Advantage: Technical aspects managed by the service provider. |
| Disadvantage: Requires technical expertise and maintenance. | Disadvantage: Limited customization options. | |
| Setup & Installation | Advantage: Freedom to choose hosting and setup process. | Advantage: Streamlined setup process. |
| Disadvantage: Setup may be complex and time-consuming. | Disadvantage: Limited control over hosting and setup. | |
| User-friendliness & Flexibility | Advantage: Extensive customization and flexibility. | Advantage: User-friendly interface and easy setup. |
| Disadvantage: Steeper learning curve for non-tech users. | Disadvantage: Limited customization for non-tech users. | |
| Design & Customization | Advantage: Unlimited customization options. | Advantage: Pre-designed themes and plugins available. |
| Disadvantage: Requires coding knowledge for extensive changes. | Disadvantage: Limited customization due to restricted access. | |
| Website Security & Compliance | Advantage: Full control over security measures. | Advantage: Security managed by the service provider. |
| Disadvantage: Responsibility for security updates and PCI compliance. | Disadvantage: Reliance on the service provider for security. | |
| Maintenance & Support | Advantage: Control over maintenance and support. | Advantage: Maintenance and support handled by the service provider. |
| Disadvantage: Time-consuming to manage updates and fixes. | Disadvantage: Limited control over maintenance and support. |
Both these platforms consist of features and prospects that would cater to all different kinds of users. It will be up to you now to understand all the basic usable options offered by these two prominent platforms for your eCommerce.
Choose Your eCommerce Platform Wisely To Turn Your Business a Successful One
Well if you look at the detailed differences and comparison above, you will probably find it difficult enough to come to any conclusion regarding picking any of these two platforms unless you know what exactly you need or want in it.
From the outside, one can't really tell any one of these platforms outright best. But if you look closely enough, you will certainly find more suitable and beneficial areas for you in one of these solutions. You simply need to know what they are and get the platform that
For starters, we would recommend you start with an open source-based solution for your eCommerce like WooCommerce. And later you can turn your WooCommerce site into a full-fledged multi-vendor marketplace and then get the no.1 open-source marketplace solution for Dokan.
In a few years, if you find it suitable and user-friendly enough then continue with the Open Source platform, otherwise you will always have the option to migrate to SaaS or even PaaS (Product as a Solution) platform.
But no matter what platform you select for your eCommerce site, you need to pay full attention and keep an eye on the features that it offers for the future rather than what it is offering today. As features and capabilities that it has today might not be suitable in the years to come. So this is essential that you get a futuristic platform.
Moreover, always pick the platform anticipating its plan and offerings in mind. Otherwise halfway through you might just have to blame yourself for not being able to scale up your business as per the future demand.