Are you an eCommerce marketplace owner? Well, you may then know about the two eCommerce platforms- SaaS & Open Source. Sometimes you should change the platform concerning your budget, security, and profit. We know there is always a battle of Open Source vs SaaS in your mind.
In SaaS, your online store will be hosted on another company’s servers. The SaaS software owner will take care of keeping your store up and run all the technical issues. For example, Shopify, Volution, and BigCommerce.
On the other hand, in Open Source, you have to install the platform on a server and manage all the technical issues including store running, hosting, store designing, and securing. In a nutshell, you have to provide some extra effort but you can blow all your hidden creativity in your shop. For example, WordPress.
In this article, we will try to figure out all the advantages, disadvantages of both of them. Also, help you to understand when you should move into a new markplace platform. So, welcome to this article!
Comparison Between SaaS & Open Source Advantages
|1. Multiple Built-in Facility||1. Regular Updates for Each User|
|2. Maintenance||2. Customization|
|3. Protection & PCI Compliance||3. Cost-Effective|
|4. Scalability||4. Large Collection of Third-Party Plugins|
|5. Smooth Integration||5. Upgrade When You Need To|
|6. Security||6. Community|
|7. Support||7. Ready Market|
Advantages of SaaS eCommerce Platforms
SaaS eCommerce platforms are popular for multiple reasons. Many merchants are turning to this platform for brilliant performance and security. Let's have a look at the benefits of a SaaS eCommerce Platform.
Multiple Built-in Facility
SaaS eCommerce platforms have a handful of built-in basic shopping cart functionality already. A merchant will be benefited with customizable themes, marketing capabilities, essential product information administration, and other needed options.
These features enable a merchant to set up and run an online marketplace very swiftly. SaaS projects don’t need some months to complete. You don’t have to own an IT team to run and extend your business.
The most populous benefit of SaaS eCommerce platforms is, the provider maintains the software. So, the user doesn't have to find the hosting provider to work with.
They are also accountable for performance speed, software bug fixes, uptime, software updates, and anything you face a problem. Besides that, they are continually monitoring the performance of the online store. Their quick support is one of the favorite advantages to all the users.
Protection & PCI Compliance
In online selling, you must be PCI compliant so that you can secure the customers’ payment information. The SaaS eCommerce providers make sure that you meet PCI compliance standards. They are responsible to stay always updated with any bug that affects your security.
Developing business owners need to scale their eCommerce platform along with them. So, extending more orders, functionality and clients should be more effortless.
A SaaS eCommerce platform is more flexible than others. In the case of changing business strategies, you don't need to rebuild your site every time.
Your business is not dependent on the eCommerce platform you are working on. It's just a surface where you have built your store. So, you will need to integrate with ERP, POS or other accounting software.
Most SaaS platforms have powerful APIs. And, that's why integration gets easier with expected projects.
Advantage of Open Source for eCommerce
There is a huge variation in Open Source applications. And, the world's most popular plugins are made based on this platform.
Let's know the wide range of advantages of Open Source eCommerce platform together.
Regular Updates for Each User
In a SaaS platform, if you find any bug you have to report it to the support team and wait for them to fix it. On the other hand, you can fix a bug by yourself in Open Source. If you search for Open Source vs SaaS, you will definitely find that Open Source is famous for this factor.
A large number of developers constantly staring at the source code and allows better and faster updates. That means so many users offered potential updates and do a voting system to select which one should be added as updates.
So many people view Open Source software. The source code is apparent to all. Thus, anyone can alter the code. It means if the author makes any mistake it can be easily fixed.
If you think keeping your software code secured will make it safer then you are wrong. ZDNet says, “If I look at how people break software, they don't use the source code.”
Open Source eCommerce is as much as flexible to reshape it smoothly by the programmers. Amazingly, this customization is beneficial to any company.
You can tailor your store to the exact needs of the business. If you need to extend any facility for the customers you can do it by yourself.
Large Collection of Third-Party Plugins
Most of the Open Source platforms are full of add-ons, widgets, and plugins. To use the third-party widget you need to just add the API key to your site. Your work pressure will be down in half from the previous.
Upgrade When You Need To
Proprietary software like Microsoft Windows or Adobe Flash Player puts you in an infinity advancing treadmill. It's ok to upgrade your software but when they say you have to also increase your hardware as well, it's not fair.
In Open Source you can upgrade when you need to.
Open Source platform is more affordable in comparison to the Closed Source. By using this type of software you can run a premium store and at the same time, you can save your money.
If you are well known to code you can fix your system's bug without calling to the support team. On the other hand, you have no option to fix the problem without telling the support team of SaaS. Apart from this, you will get full relief from the Open Source support team 24/7.
Comparison Between SaaS & Open Source Disadvantages
|1. Deficiency of Customization||1. Can be Risky|
|2. Pricing||2. Might Not be Very User-friendly|
|3. Helping B2B Requirements||3. No Guarantees|
|4. Not Suitable for SMEs||4. Spending time to maintanance|
Disadvantages of SaaS eCommerce Platforms
Still, we have discovered the advantages of a SaaS eCommerce platform. You should also know the disadvantages of this software, which will decide you to choose it or not.
Deficiency of Customization
Though it has pre-built advanced functionality and templates, you will feel the lack of customization when you will find the limitations.
It will lack the ability to extreme customization. The SaaS platform can not help you if you need a unique design or structure according to your choice.
SaaS platform is more expensive than Open Source one. At first, you can not use it free. And, after using it for a certain period you may need to use more customization or features to develop your store. So, at the end of the day, they are providing you a wonderful service but in the return, you have to spend a crazy expense.
Helping B2B Requirements
SaaS eCommerce system can not fulfill the requirements of B2B sellers. In the beginning, B2B looks like B2C but B2B has different necessities such as discounts by quantities, different payment terms, customer-specific pricing, and wholesale pricing. Not all eCommerce platforms can do it well, but if they do the performance is not out of the box.
Not Suitable for SMEs
The SaaS eCommerce platform is not perfect for SMEs. Most of the people are ready to provide the effort for customization but not able to carry the huge money every month.
Disadvantages of Open Source eCommerce Platforms
OS has some disadvantages which they can not deny. Actually, these issues will remain the same till it stays an open or public platform to all. The drawbacks may get out when they will build restriction over the system
Can be Risky
Making a platform in Open Source and releasing it publicly can be risky sometimes. Every customer doesn't come with a good mindset. Bad people are all over so as there isn't any guard, therefore, the platform can be attacked by viruses or any malicious practices.
When you will comparison between Open Source vs SaaS, this can be one of the considered disadvantages of Open Source.
Might Not be Very User-friendly
Though most of the Open Source software is easy to use, some software is not that friendly.
Despite this, there are numerous applications that are mainly built to cater to the developer’s preferences. Thus, not much attention is given to the user interface and difficult to handle especially for non-tech-savvy persons.
Usually, OS solutions are warranty-free. It can not guarantee anything. On the opposite side, SaaS owner gets a guarantee since they install the software on their server.
When Should You Opt-in for SaaS for Your eCommerce Marketplace?
Starting your continual business to a totally different platform is not that effortless. And, if it is about SaaS then there are lots of factors to measure.
So, are you an online store owner for a long period and incoming a sound money? If yes, then you may think about SaaS. SaaS eCommerce platform is much cost-effective to continue yet you are getting lots of support and security.
If you are owning small or medium enterprise, you shouldn't move for SaaS as you may not bear the money to use all the premium extensions of SaaS.
When Should You Opt-in for Open Source for Your eCommerce Marketplace?
As a SaaS Marketplace owner, you need to consider some measurements for opt-in to Open Source marketplace.
- Firstly, are you struggling with the prices of SaaS services?
- Secondly, do you want frequent support and feedback for fixing a bug in your system?
- Thirdly, Do you want unlimited customization? And, do you want re-built customization according to your needs?
If you want these factors then you are most welcome to Open Source. Always observe a new platform before getting in and especially when you want to move to open space.
If It’s Open Source, You Should Go for WordPress
Many people want to opt-in Open Source for its amazing benefits. WordPress is the king in the Open Source community.
People claim that because of WordPress website development is so advanced today. Check out the reasons for choosing WordPress as your Open Source eCommerce Marketplace.
- Effortless drag & drop features
- Quick personal & professional customization
- Content management with vast customization
- Large library of pre-built theme & templates
- Regular software updates
- Bloggers feel heavenly while writing on WordPress
- Highly SEO optimized
- You will be a part of a big community
You can check a WordPress build Multi-Vendor Store, Dokan. It is the best frontend experience, easiest configuration option, without coding customize, best class customer support, and compatible with any WooCommerce themes.
Open Source vs SaaS: Make Your Choice Based on Your Need
Did you find our SaaS vs Open Source comparison helpful? Can you decide which one would be better for you? Well, if you are running a successful business already, we would suggest you go with a SaaS to pick up the pace. But if you are a person who wants to control the whole system and customize it according to personal choices then open source is for you.
And yeah, don't worry, both platforms are in trend and growing exponentially.
What platform are you using for your eCommerce marketplace? Let us know in the comments below. We wish you are able to run a successful business in whatever platform that may be!