SaaS vs. open-source ecommerce: Which is the right option for your business?

What's the major difference between SaaS and open-source ecommerce? 

As you can see, SaaS and open-source software have totally different ways of working and are not aimed at the same entrepreneurial profiles. Moreover, while this is particularly true during the creation of your site, the difference is even more obvious when it comes to developing your online store and ensuring its maintenance.

Security and performance: The key words for a SaaS platform?

With SaaS, updates are done automatically and instantly by the company that puts the software online. It’s also the CMS that takes care of the maintenance of all the hosted sites. With SaaS, forget about updates... The software takes care of it for you!

Moreover, to help you in your project, after-sales service is often integrated. At WiziShop, we have a team of Business Coaches to assist you whenever you feel the need.

Furthermore, SaaS solutions are generally hosted in very secure servers delivered by market leader companies. Thus, your website is no longer subject to external hazards such as the theft of certain data or malfunctions related to bad weather and fire: a contract of trust signed between you, your CMS, and your ecommerce customers.

Finally, as far as legislation is concerned, it’s up to the editor of the SaaS to ensure the monitoring and compliance of its product. They’re the only one responsible for the updates in case of legal evolution. In the case of open-source software, it’s up to the e-merchant to adapt and evolve in time according to the new regulatory constraints. They must therefore keep up to date with the news.

As you can see, with SaaS, you’re more autonomous in the daily management of your platform! As SaaS software, we’re reactive and we do everything possible to allow you to develop your project with peace of mind. Your e-shop is secure, and everything can be modified in just a few clicks. Data, site model, performance, security... You only have to take advantage of your entrepreneurial freedom, of the advantages of the CMS, to pamper your customers and build their loyalty over the long term!

Open-source CMS: Freedom or hindrance?

Open-source software on the market today offers a wide range of modules and services. However, to take full advantage of this potential, it’s necessary to have significant technical knowledge, especially in development. An open-source website implies that the e-merchant knows how to set up and install their site manually, that they code, and that they also know all the workings of the management of their platform. They must therefore know all about coding but also be able to master the issues of security and network hosting.

In addition, perhaps you’re tempted to use an external service provider skilled in technology to replace you on this site? Many entrepreneurs call upon freelancers to delegate this task. Here again, you risk exposing yourself to the other side of the coin...

In order to develop a basic website, some freelance professionals don’t hesitate to charge entrepreneurs tens of thousands of dollars to set up a basic sales site. And this price doesn’t include the future updates or the various types of maintenance over time...

Moreover, these professionals have a lot of customers today. However, you may want to change some of your site's settings one day. At that time, you may not be the priority of your external provider, already busy with other missions. You’ll then have to wait.

However, when it comes to internet commerce, things evolve very quickly, and reactivity is essential. With open source in ecommerce in particular, you’ll inevitably be dependent on your provider. With SaaS, you’ll be able to take care of everything yourself, as needed.

The cost: From simple to double

It’s often believed that open-source software is assimilated to a totally free technical solution, while SaaS allows you to create an online store in exchange for a monthly or annual fee. But, what is the reality? When determining whether you should use an ecommerce platform that involves SaaS or open-source software, the cost of the platform is definitely something to take into consideration.

Pay only for what you use with SaaS

Contrary to what one might think at first glance, SaaS CMSs allow you to start at a lower cost, provided you simply do not have to pay a monthly subscription. Rest assured, in most cases, the price of access to a SaaS platform is calculated according to your use of the solution. Several formulas are generally proposed, and their price is established based on the use that you wish to make of it.

One of the main advantages of SaaS is its transparency. With this software, there are no hidden costs. Everything is included, and the price doesn’t hide any bad surprises.

Open-source software: A truly free ecommerce solution?

It’s a fact: the acquisition of open-source software is completely free. On the other hand, be aware that the freeware stops at the stage of creation of your login. Most of the extensions for merchant sites aren’t free. Whether you want to add a payment system, additional modules for managing orders or sending automatic emails, an e-commerce blog, or even a notification bar to inform the customer on your homepage, you’ll have to pay for an additional plug-in.

Then, to create your entire site, you’ll also need to know how to code. If this isn’t the case, you’ll have to foresee the cost of accompaniment by an external provider, whose service is often invoiced between $300 and $400 per day...

To all this, you still have to add the purchase of the domain name and the hosting of your store on secure servers. All of these services can quickly add up to a hefty bill. In fact, it’s not uncommon to see online sales sites paying between $50,000 and $70,000 for their site, even though they use software with an open-source license and the promise of a totally free offer.

What are the advantages of each option a business should consider when searching for an ecommerce platform?

Advantages of SaaS

At this point, you likely have a good understanding of some of the top benefits of choosing a SaaS ecommerce platform for your business, but let's take a quick look at some others that you may not have thought of yet. From cost-effective scalability to seamless updates and ease of use, SaaS solutions offer a range of advantages that can enhance your online store's performance and growth.

• Ability to get started quickly

Using a SaaS platform enables a swift start for your ecommerce business because it offers pre-built features and infrastructure, eliminating the need for extensive development and setup. With SaaS, you can quickly configure your store, integrate payment systems, and launch without worrying about server management or security updates.

Keep in mind, though, that SaaS ecommerce platforms will vary in terms of the different functionalities they offer. You'll therefore need to be sure that the option you choose has everything you need from the get-go.

Note that the WiziShop platform offers a wide range of design templates, 400+ pre-integrated tools to help boost conversions, and 50+ SEO tools to assist you in climbing the rankings on Google—all from the moment of account creation. Your online store will be up and running in no time!

• Customer support

Although open-source ecommerce platforms boast strong communities, many SaaS platforms do as well. However, if you require direct, dedicated support, you'll want to opt for a SaaS solution. SaaS platforms typically include support in the subscription fee.

For instance, with WiziShop, no matter which pricing plan you choose, you'll have access to a knowledgeable team of Business Coaches to assist you with any query you may have concerning your website and how to take your business to the next level. In addition, our AI chatbot Maia is available 24/7 to provide you with quick responses to simpler questions.

• Ease of use

SaaS ecommerce platforms are designed with user-friendliness in mind, offering intuitive interfaces and pre-configured features that simplify setup and management. They eliminate the need for technical expertise by providing built-in tools, templates, and drag-and-drop functionalities.

Regular automatic updates and customer support ensure smooth operation and quick issue resolution. This ease of use allows businesses to focus on selling products rather than dealing with complex technical tasks.

• Scalability

When you're just starting off as an e-retailer, you're probably just looking to get your venture off the ground, anticipating those first product sales. At some point, however, you will likely want to take your store even further.

SaaS solutions enable scalability by offering flexible plans that can adjust to your business's growth. As your traffic and sales volume increase, these platforms can easily upgrade resources like bandwidth, storage, and processing power without significant downtime or technical adjustments.

They handle the infrastructure and performance optimizations, allowing you to scale up or down efficiently, ensuring a seamless experience for customers during peak times and supporting long-term business expansion.

• Security

As ecommerce continues to grow year after year, security issues related to online shopping have risen as well. Ensuring security is an absolute must for ecommerce sites to be able to protect customers' credit card and personal data.

SaaS platforms take care of this crucial aspect by not only providing security patches but also applying them automatically, reducing your workload. In addition, most SaaS platforms offer PCI compliance, simplifying management for merchants and enhancing overall security.

Advantages of open-source software

Open-source ecommerce remains a popular option for many e-merchants around the world. Here are some of the top reasons why.

• Avoidance of vendor lock-in

Vendor lock-in occurs when a business becomes dependent on a single vendor for products or services, making it difficult to switch providers without substantial cost or disruption.

Using open-source ecommerce software helps avoid vendor lock-in by offering flexibility and control over the source code. This makes it possible for businesses to modify, customize, and migrate their platform as needed, ensuring they are not restricted by a single vendor’s limitations or pricing structures.

• Community support

Open-source ecommerce software provides extensive community support, with developers and users contributing ideas, solutions, and enhancements. This collective knowledge base, accessible through forums, blogs, and repositories like GitHub, offers valuable resources and troubleshooting help.

For online store owners, this community support means continuous improvements, innovative features, and cost-effective solutions without relying solely on commercial support, leading to a more flexible and customizable platform tailored to their needs.

• Control and flexibility

If you're looking to have complete control over your online store and the most flexibility possible, open-source ecommerce platforms are a good option. By granting businesses access to the source code, they allow for full customization to meet specific needs.

This control enables the integration of unique features, personalized user experiences, and seamless adaptation to changing requirements. As an e-merchant, you'll be able to enjoy greater innovation, the ability to implement tailored solutions, and freedom from vendor constraints, ultimately leading to a more competitive and agile ecommerce operation.

What are the disadvantages of each option a business should consider when searching for an ecommerce platform?

Disadvantages of SaaS

Despite the many pros of SaaS solutions for online stores, this option does have several drawbacks to consider.

• Limited choices

Some SaaS ecommerce platforms offer limited choices in terms of customization, themes, and integrations, restricting users to predefined options. This limitation can be a disadvantage as businesses may struggle to create a unique brand identity, implement specific features, or adapt to changing needs. It can also hinder differentiation from competitors and limit the ability to fully optimize the platform for specific business processes, impacting overall growth and customer experience.

If freedom of choice is crucial for your ecommerce business, be sure to opt for a SaaS platform like WiziShop that readily supports easy integrations with your preferred solutions.

• Reduced customization

With some SaaS ecommerce platforms that don't provide API access, customization capabilities are significantly reduced. This restriction prevents businesses from integrating third-party tools, creating unique features, or tailoring the platform to specific needs.

As a result, businesses may face limitations in enhancing user experiences, optimizing operations, and differentiating themselves from competitors, ultimately impacting growth and adaptability in a dynamic market.

Good news when you use WiziShop, though: while you won't need to purchase any add-ons to create your shop and begin selling, you'll have access to the API, allowing you to avail of external integrations and customize your website as much as you'd like!

• Upfront costs

Upfront costs for SaaS ecommerce platforms are higher due to subscription fees, which include hosting, support, and regular updates. In contrast, open-source options typically require only initial setup and hosting costs, with no recurring fees.

This can be a disadvantage for businesses with limited budgets, as the continuous financial commitment to a SaaS platform may strain resources, limiting the ability to invest in other areas crucial for growth and development. That being said, it's important to remember that while everything you need to run your web shop will generally be included in an SaaS package, this definitely won't be the case with open-source ecommerce.

Disadvantages of open-source software

Yes, open-source ecommerce offers tons of flexibility when it comes to creating and managing an online store, but it's not without its flaws.

• Complexity

Open-source ecommerce platforms can be challenging to use, particularly if you're not a web developer. The more modifications you make with the source code, the more complex your system becomes, leading to higher costs and difficulty in making updates.

Furthermore, there's a good chance that the software will have a learning curve. If you're not comfortable with coding, opting for a SaaS platform might be a better choice.

• High costs

Despite a much lower initial investment, open-source ecommerce can lead to higher costs in the long term due to the need for specialized developers to handle setup, customization, and ongoing maintenance. In addition, businesses must invest in hosting, security, third-party add-ons, and regular updates. 

These expenses can accumulate over time, making it challenging for smaller businesses with limited budgets. This financial burden can divert resources from other critical areas, impacting overall growth and competitiveness in the market.

• Maintenance requirements

Open-source ecommerce requires more maintenance because businesses must handle updates, security patches, and technical issues independently. This ongoing maintenance can be time-consuming and often requires specialized technical knowledge.

As a result, making quick changes to the website can be challenging, leading to potential downtime and delays in addressing urgent needs or market changes. This lack of agility can hinder a business’s ability to respond swiftly to customer demands and market trends.

• Security issues

As businesses are responsible for implementing and managing security measures themselves, there's a higher chance of security issues occuring. Without regular updates and robust security protocols, vulnerabilities can be exploited by hackers.

This can be a significant disadvantage, as it increases the risk of data breaches and financial losses and requires ongoing vigilance and technical expertise to maintain a secure environment, which can be resource-intensive and costly for businesses.

SaaS vs. open-source ecommerce: Weighing the pros and cons

As you can, there are pros and cons to both SaaS and open-source solutions. Determining which is right for you is going to involve examining your budget, technical expertise, and goals. For many new and experiences e-tailers alike, SaaS is ideal, as it allows them to not spend the majority of their resources on website management.

With the WiziShop SaaS ecommerce solution, the best ecommerce platform around, entrepreneurs have access to more than 400 included features, at no extra cost. Complete ecommerce training is even provided, to allow you to master all the subtleties of online sales. What’s more, the subscription to the best ecommerce CMS starts at only $40 per month, with the first month for just $1!

What's more, our powerful AI tool makes it possible to generate all kinds of text content—product descriptions, translations, blog articles, FAQs, and more—in mere seconds.

These days, there are many different SaaS ecommerce platforms available that make it possible to create an online sales site. However, not all of these SaaS providers are equal. In other words, for the quality to be there, it’s better to turn to a SaaS partner with a proven track record...

WiziShop is an ecommerce platform that’s been supporting entrepreneurs for over 15 years. The only thing missing is you in our great community of successful entrepreneurs! Test the software out with a 7-day free trial today!