Open Source vs. SaaS E-commerce: How to Choose the Right Platform for Your Business

Online shopping has become the #1 way contemporary shoppers are making purchases. In fact, the United States has seen significant growth in e-commerce sales over the last few decades, and this incline is not slowing down anytime soon. Therefore, many businesses are looking to bring their brands online, if not done so already, in order to maximize on exposure and sales.

However, when it comes to e-commerce sites, there are different types of platforms that can serve as a host: Open-Source and SaaS formats.

Open-Source VS SaaS Platforms:

Open-Source platforms are those that give the user full access to modify and customize all aspects of the platform to represent their wants and needs. This type of platform is the most popular amongst e-commerce professionals, especially those who desire having full control over their business. On the other hand, the SaaS format, also known as software-as-a -service, is a “subscription-based solution that is built and maintained by a third-party provider so that users can essentially “rent” the software, without the added complexity of building and developing the platform (Big Commerce, 2022).

With an overwhelming collection of e-commerce platforms to choose from when looking to build your own personal website, this blog will provide more insight on which format would work best for your business, and which e-commerce sites are used most frequently by others within the industry. To further analyze this topic, we referenced the Big Commerce article “Open Source vs. SaaS E-commerce: How to Choose the Right Platform for Your Business.” It is only right that we give credit to Big Commerce, as the content in this summary comes from its original research and ideas.

Main Differences Between the Two Platforms:

While the aesthetic and outer appearance of both e-commerce platforms do not differ tremendously, the way in which each format functions does. Let’s take a look at the elements of cost, security, installation, customization, and maintenance and support to gain more insight on such functionality differences.

Cost

With more control over your e-commerce platform, comes the consequence of more expenses. Therefore, Open-Source platforms are typically the more expensive option. In fact, SaaS platforms are usually operated on a “subscription” basis that includes all expenses at a one-time fee. This fee is typically processed on a monthly or yearly basis depending on the platform.

Open-Source Fees to Consider:

• Licensing Fees

• Hosting Provider Fees

• Web Developer or Agency Fees

• Maintenance Fees

• PCI Compliance Costs

• Security

• Apps or Extensions

• Integration into Other Systems

SaaS Fees to Consider:

• Agency fees, if Used

• Apps or Extensions

• Integrations into Other Systems

• Paid Themes

• Upgraded Plans

Security

The protection of not only your customers’ data, but your personal business’ data, such as credit card information, and addresses, is extremely important, and a major element to consider when striving to build a successful online business. The security levels of Open-Source and SaaS platforms differ because, like many of the sites’ other functions, one is done more manual, while the other is more automatic.

On an Open-Source website, it is the business owner’s responsibility to to “meet PCI compliance standards and maintain the security of your site. [Owners will] need to ensure that [their] security firewall is bug-free and choose a trustworthy security tool to protect [their] site from hackers.” On the other hand, a SaaS system obtains this tedious responsibility, and will update the site with new security features automatically, without the user having to lift a finger.

Installation  

Both types of e-commerce sites are easy to install. However, Open-Source sites may have additional fees during set-up while SaaS formats usually do not.

Customization

The ability to customize your website to meet your business’ or personal desires is one of the main differences between the two formats. Since a user has full control when operating an Open-Source site, they have more freedom and typically able to create a unique site with little-to-no obstacles.

On the other hand, since SaaS sites are more structured through using basic, and pre-built templates and designs, the flexibility to create a site with the exact look and user experience desired by a brand is limited tremendously.

Maintenance and Support

Similar to a sites’ security, maintenance and support are responsibilities of the Open-Source site user themselves, while those who use SaaS platforms can rely on the system to do this maintenance and support for them.

Open-Source Platform Pros and Cons

Pros:

• Complete Control

• Widespread Community Support

• Avoiding Vendor Lock-in

Cons:

• Complex

• Heavy Maintenance

• High Cost

• Security Vulnerabilities

Bottom Line: When to use Open-Source Platforms?

• When your business has a big budget and complex site needs.

Examples of Open-Source Platforms:

• Adobe Commerce (Magento)

• WooCommerce

• PrestaShop

• Shopeware

• OpenCart

• Zen Cart

SaaS Platform Pros and Cons

Pros:

• Fast Set-Up

• Ease of Use

• Security

• Scalability

• Customer Support

• Headless

Cons:

• Customization

• Lack of Choice

Bottom Line: When to use SaaS Platforms?

• When your business is looking to grow its brand, yet potential users have little knowledge about how to maintain the platforms or do not want the responsibility of keeping up with updates, etc.

Examples of SaaS Platforms:

• BigCommerce

• Shopify

• Salesforce Commerce Cloud

• Volusion

• Squarespace

Learn More Through Our Resources

https://www.bigcommerce.com/articles/ecommerce/open-source-ecommerce-vs-saas-ecommerce/