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SAAS OR OPEN-SOURCE, WHICH SOLUTION FOR ITS E-COMMERCE?

SAAS OR OPEN-SOURCE, WHICH SOLUTION FOR ITS E-COMMERCE?
Indeed, according to surveys, 97% of e-commerce sites do not succeed because they have not chosen the solution best suited to the needs of their business. However, before you start, it is important to know that there are two main schools of thought when it comes to e-commerce, namely, those who use open source solutions and those who opt for turnkey or SaaS services. In this article, we try to review these two types of schools. This will make it easier for you to choose the solution that will best suit your needs.

The solution you choose for your e-commerce site will have an impact on the quality and durability of your business

Indeed, according to surveys, 97% of e-commerce sites do not succeed because they have not chosen the solution best suited to the needs of their business. However, before you start, it is important to know that there are two main schools of thought when it comes to e-commerce, namely, those who use open source solutions and those who opt for turnkey or SaaS services. In this article, we try to review these two types of schools. This will make it easier for you to choose the solution that will best suit your needs.

Create your e-commerce site using the turnkey service “SaaS

The SaaS technology (Software as a Service) frees you from technical constraints and allows you to benefit quickly and efficiently from all the potential of an e-commerce site. The best part is that with this solution, you don’t have to install any software or plug-in or update, to create your e-commerce site.

You can access your administration area to create your website with a simple Internet connection

Take advantage of an unequaled functional richness, to manage your website every day, thanks to turnkey services. This will allow you to generate certified traffic, convert your visitors into buyers, and retain your customers.

As far as updates are concerned, they are regular, free, and automatic.

As you have opted for a turnkey solution, you will be able to call on a single contact, whatever your needs in terms of hosting, development, e-commerce, SEO, project management, etc. The technical support offered by the platform you have contacted will be online, it is free and unlimited. Thus, in case of any problem, you will be able to call upon their competence to help you.

Other advantages to consider regarding the turnkey solution for an e-commerce site

When you opt for SaaS, this includes the design, management, and launch of your e-commerce business, but you should also consider that this solution offers you other benefits. They are not really technical, directly related to the design of your e-shop, but they will also influence the success of your business.

Indeed, your SaaS platform will offer you personalized assistance and complete resources, to progress in e-commerce.

What you will not necessarily find with other editors and other automatic solutions. From the creation of your e-commerce site to the growth of your sales, you benefit from personalized support from experts, at every stage of your project.

In addition, we offer a complete set of resources to help you progress in the use of the SaaS solution and online commerce:

  • A single contact will accompany you in the creation of your site and the development of your sales. You can enjoy free and unlimited technical support every day, depending on the working hours of the platform you have contacted.
  • Since most of these platforms have a QuickLearn agent, he will guide you step by step in the creation of a unique and efficient e-commerce website.
  • Software and webinar updates are free and regular, to help you optimize your website’s performance.

What about the costs for the SaaS solution

When you use SaaS software, you not only save time in creating your e-commerce site, but you can also save money. Since the software and services offered by the platforms have been designed to meet the needs of people wishing to create an e-commerce site, and they can support dozens or even thousands of e-commerce sites, the costs will be divided by the number of people who use them. Thus, at the same time, allowing you to reduce the cost of launching your online business to a minimum.

To give you an idea of the cost of creating your e-commerce site

Let’s take the example of a good platform, like WiziShop, the cost of your subscription will start at 37 euros per month. At this price, you will be entitled to :

  • Your own online store with your back office,
  • More than 385 features and marketing tools (graphic design, emailing, inventory management, content management, etc.),
  • Innovations and updates all year long,
  • Web hosting that adapts to your needs, no more worries about crashes or other issues,
  • A robust and secure solution, without you having to apply the security patches that come with it.

The Open Source solution, what you should know about it

The term Open Source refers to software where the original source code is made available for free and can be modified or improved by anyone. However, by free, we mean the freedom to use the code, not necessarily for free, it may even cost more. The use of an Open Source platform for the creation of your e-commerce site offers, however, many advantages, which are most useful to launch your e-commerce site.

No license fees

  • Open-source e-commerce platforms do not require users to pay any licensing fees. All licenses associated with the program are transferred to anyone who downloads the software. This allows others to redistribute the application, as well as remove restrictions on its use in conjunction with proprietary programs.
  • One of the main attractions of open source platforms is that users are not restricted by a specific vendor. With proprietary software, developers restrict products by using code that only their programmers can understand, resulting in higher prices and limited usage.

Customizability

The customizability of open source goes hand in hand with its flexibility. When you buy software, you are limited to the capabilities offered by the system, unless you are willing to spend money to have the developers connected to the vendors define it to your specifications. With access to the source code, programmers can tailor the platform to their specific needs. This allows you to keep your current processes instead of modifying them for a computer system.

Security

In reality, the seamless implementation of open source e-commerce software does not make it more vulnerable. Despite conventional wisdom, open-source platforms are much more secure than you might think. With the freedom to modify, improve, and redistribute the software, developers are constantly creating system patches and fixing bugs. The responsiveness to problems of open source software is also much faster than proprietary software because of the exposure of the code.

All these advantages certainly explain the fact that nearly 72% of e-commerce sites are built on Open Source platforms in France.

However, we must ask ourselves if Open Source solutions really correspond to your needs? To do so, let’s try to understand the different prices related to an Open Source solution.

The disadvantages of Open Source platforms for e-commerce sites

First of all, you have to spend time installing the software on the servers, setting up and customizing the store, and this will logically be charged to you. The cost can go beyond 2 000 € for the simplest sites, to several tens of thousands of euros for the most complex projects. To this, you will have to add monthly fees for the hosting of your store (between 50 and 300 € in the best cases – it is very difficult to get a technically optimized hosting when it has not been designed for the software) and, regularly, to call upon your platform to update it.

If it is a functional evolution, you can skip it, but if it is a security update (the source code being available to all, the flaws are more exposed) you will not have the choice.

Count between 500 € and 2 000 € per year, to upgrade to the latest version of the software (much more if your store has specificities). The last expense is the modules, such as the addition of many features for your marketing strategy. If the Open Source software is free at the base, it is necessary all the same that the editors find a way to make it profitable, that is why the e-commerce solution proposes basic functionalities.

In case you want to add an element (for example, your payment method or the possibility to send emails)

You have to add a paid module each time. From this, one could say that the Open Source solution is much more expensive than it seems at first sight, compared to other solutions dedicated to the edition of e-commerce sites.

If we summarize the cost of creating an e-commerce site using the Open Source solution, it gives the following:

  • 2 000 € to 200 000 € for the creation
  • 600 € to 3 600 € /year for hosting
  • 500 € to 2 000 € / year for updates
  • 200 to 500 € / year for additional modules

Apart from the price, there are other disadvantages to the list when it comes to open-source platforms.

Obviously, most small businesses that choose an open-source e-commerce solution will have to maintain and potentially upgrade their system. This will require staffing to ensure that the system is optimized and functioning properly. This type of staffing can be difficult to find and expensive for businesses. Most open-source software can not only be downloaded and used by people with good intentions, but also by malicious hackers. It is therefore important to secure your site to avoid problems.

Any open source technology will require hosting which, depending on your needs, can increase the total cost of your working capital.

Any company that chooses to host itself, should make sure that it is going with a reputable hosting provider while looking for the most affordable fees on hosting and bandwidth packages. When your open source e-commerce software vendor releases updates to their platform, they usually contain changes regarding security vulnerabilities that need to be updated quickly.

These updates may conflict with third-party modules or applications that you may already have installed,

Consuming more of your development team’s time or requiring you to hire consultants, which are usually very costly actions. In most cases, open-source solutions offer little or no support unless you are willing to pay for it. This is normally how the company makes money. This means that the company charges substantial per-incident rates, or requires you to participate in a monthly or annual support contract. In both cases, this is an important factor to consider when choosing an open-source e-commerce product.

So, comparing the Open Source solution and the SaaS solution,

If you want to gain more freedom, the second option is definitely the better one, both in terms of cost, and handling. So, if you want to save money, the ideal would be to use a platform that offers a turnkey service, which will save you a lot of hassle when you need your site the most!