Hosted vs Self-Hosted Ecommerce Platforms

But as with any new area you step into, you need to get familiar with the terms and their meanings as well as get an idea of the costs involved. For example, the first question you’ll be asked (or ask yourself) is whether you want to use hosted or self-hosted ecommerce software? Both have their pros and cons, but which one is a better fit for your needs?

This type of web application runs on someone else’s server, the host, and comes with a series of advantages that all relate to the cost of maintaining an online storefront. Hosted ecommerce platforms such as Shopify, BigCommerce, and LemonStand reduce the amount of control that business owners have over their online stores, but that’s just one side of the story. A hosted platform has the benefit of saving time and money for those that select this method because online store owners don’t have to waste energy on the tech side of the store – installing software updates and security patches, and working on site load times.

These things all happen in the background automatically and serve the purpose of reducing downtime and enabling the latest features that will ease consumer interaction and foster a great user experience. As a result, business owners can instead concentrate resources on other areas such as marketing to help increase sales.

Hosted ecommerce platforms usually charge clients one flat fee, which includes the services a business owner would need to run the online storefront.

If you want full control over your online store, then a self-hosted ecommerce platform is the way to go. Unlike hosted platforms, the responsibility of making the online storefront work is all yours. In other words, self-hosted platforms require the business owner to be aware of the technical requirements of creating a trusted virtual environment where users can securely share their payment credentials while making a purchase.

While it may sound easy, it isn’t, and as a result some businesses aren’t able to fully optimize their online storefront. Open-source software, which makes self-hosted platforms possible, isn’t much of a help in this case, because it is more vulnerable to hacks that could trigger high recovery cost and end up killing a business.

Another important thing a business user should consider when weighing up hosted or self-hosted ecommerce platforms, is that open-source software has a different approach to its customer support. Usually it requires the business owner to invest time and money in educating themselves or a dedicated team as troubleshooting will need to be done in-house.

IT costs can get higher, too, as staff are required to maintain the infrastructure that ensures a frictionless customer experience. This team will be in charge of creating a secure environment so your customer can shop with confidence.

In other words, it is possible to go with the self-hosted route, but before jumping on solutions such as Magento, WooCommerce, or OpenCart, ask yourself how much that online store will cost you first. Take these expenses into consideration and make a decision based on the figures you discover after delving into your needs and the costs that can come with it.