Ecommerce has become one of the fastest-growing sectors in the last decade. According to recent data, more than $1 trillion in sales are made through Internet sales in the United States alone in 2022.
In today’s world, for any business that is interested in selling products or services online, an ecommerce solution is mandatory.
However, it is often difficult to decide which platform to choose. The two main choices are a custom e commerce solution by a custom software development company San Francisco and an out-of-the-box solution.
In this article, the advantages and disadvantages of each approach will be discussed to assist businesses in choosing the most suitable ecommerce solution for their operations.
Custom Development
Custom ecommerce development includes engaging a software development agency or independent ecommerce developers to create a unique online store. It is unique to the business products and the functionality that the store will be offering to the business.
Pros
Complete Customization
The main advantage of custom ecommerce development is that the platform is built from scratch and tailored specifically to the needs of the business. Even the design, functionality, interfaces, and usability can be tailored to align with the company’s objectives.
Ownership and Control
In a custom build, businesses have complete control over the source code and the platform used. If features are needed, the store can be added instead of relying on a third-party provider, and there are no terms of service to adhere to.
Competitive Differentiation
A one-of-a-kind store is unique, which makes it possible for companies to differentiate themselves from others. This means that the custom features and other innovative aspects of the site are more difficult for other players to mimic.
Scalability
Properly built custom stores are engineered to be scalable. As order volumes grow, additional server capacity and infrastructure can be added to match demand.
Cons
Higher Upfront Costs
Custom platforms offer more long-term flexibility, but the setup costs are considerably higher than those of out-of-the-box solutions. Expect to spend at least $100,000+ on an enterprise-level custom build.
Longer Timeline
Building a strong custom store also requires more time, which can be 6 months or even more. This means that merchants need to account for this longer timeline before they actually go live.
Ongoing Management
All hosting, maintenance, patches, enhancements and updates have to be done with a custom build and the business is accountable for all these aspects. It is best when an in-house technology team or an agency is managing the project.
Greater Risk
The main disadvantage of custom builds is that they are built from the ground up, and therefore, there are likely to be more problems to solve in terms of stability and speed. There are also some risks associated with the developers chosen, such as if they are not very reliable or if they write poor code.
Off-the-Shelf Platforms
There are various types of ecommerce platforms, including off-the-shelf and software as a service (SaaS), that come with store templates and tools. Through the provider’s control panel and settings, merchants can modify and control their online store.
Pros
Faster Implementation
The major benefit of off-the-shelf platforms is the ability to go live in 1-3 months. This makes it easier for businesses to introduce their products to the market quickly.
Lower Costs
Off-the-shelf solutions do not have the cost implication of having to develop a solution from the ground up. Monthly SaaS fees typically begin at less than $100, which makes this option slightly cheaper.
Scalability
Reputable ecommerce SaaS providers architect their platforms to auto-scale. No matter how many products are added or sales increase, the infrastructure adapts on demand.
Ongoing Support
These platforms offer 24/7 customer support, troubleshooting resources, and an established user community. Merchants can leverage this ecosystem during and after launch.
Cons
Less Customization
While templates and themes allow branding customization, off-the-shelf platforms offer less back-end flexibility for unique features or customizations. Additional app integrations may be required.
Recurring Fees
There are monthly or annual SaaS fees that must be paid to the provider for continued use and maintenance. These recurring costs add up over time, especially as sales volumes rise.
Limited Control
Merchants must adhere to the platform provider’s policies, terms of service, and availability SLAs. Failure to comply could result in account suspension or restrictions.
Multi-Tenant Environment
Off-the-shelf solutions utilize shared cloud infrastructure across many merchant accounts. Sites may experience sporadic outages if underlying servers fail.
Key Differences
| Factor | Custom Development | Off-the-Shelf Platform |
|---|---|---|
| Initial Cost | $$$$ (High) | $ (Low) |
| Customization Ability | Full flexibility | Limited flexibility |
| Time to Launch | 6+ months | 1-3 months |
| Ongoing Fees | Infrastructure only | Monthly/annual SaaS fees |
| Ownership & Control | Full control | Restrictions apply |
| Scalability | Engineer to demand | Auto-scaling available |
| Ongoing Support | Self-managed | Platform provider support |
When To Choose Custom Development
Custom ecommerce development makes more sense for large enterprises with specialized needs or sufficient in-house tech talent. The total cost of ownership is higher, and so is the long-term ROI. Consider custom if you:
- Require complex custom features like advanced promotions or subscription management
- Need deep back-end integrations with ERP, warehouse or accounting software
- Have an existing development team to maintain the platform post-launch
- Desire a highly differentiated branded experience to stand out
- Plan to modify site functionality as the business evolves frequently
- Expect hyper-growth in order volumes that demand tailored scaling
When To Choose Off-the-Shelf
Off-the-shelf solutions are better suited to small or mid-sized businesses getting started with ecommerce. The lower costs and faster launch times get sites up quickly, even with limited technical resources. These platforms work well if you:
- Have a limited development budget below $100k
- Want to validate an ecommerce model before over-investing
- Need to launch a revenue-generating online store rapidly
- Appreciate a turnkey solution with built-in support ecosystem
- Don’t require advanced customizations or niche features
- Are unsure whether ecommerce will become a core sales channel
- Prefer outsourcing hosting, maintenance and updates
Leading Ecommerce Platforms
Over 100 off-the-shelf and SaaS solutions now exist, and more are emerging every year. The most popular and proven enterprise-grade options include:
Shopify
The leading SaaS platform used by over 1 million businesses globally. It offers scalable templates, an expansive app store with integrations, and robust payment/shipping features. Ideal for launching quickly with room to grow.
BigCommerce
It directly competes with Shopify in the enterprise mid-market. Features such as single-page checkouts and B2B capabilities are likely to be of interest to merchants of a certain level of sophistication. It is compatible with leading POS software and accounting software.
WooCommerce
WordPress plugin that converts existing WordPress websites into fully customizable WooCommerce stores. Very versatile and owned by ecommerce giant Automattic/WordPress. Merchant responsibilities include hosting and site security.
Magento
The fully-independent open-source product is aimed at developers, agencies, and mid-large brands. Extremely flexible at the enterprise level but needs developers to implement and maintain. Adobe now owns Magento.
Salesforce Commerce Cloud
Solutions that are scalable with a focus on B2B and B2C unified commerce strategies. Very costly but offers the most flexibility and comes with built-in CRM and order management capabilities.
This list only begins to touch on the many out-of-the-box solutions now available off the shelf. Many provide free trials to allow users to experience the tools and options offered firsthand before purchasing.
The Final Verdict
Choosing between custom ecommerce development and using ready-made solutions is always a trade-off between cost, time, functionality, and technological possibilities. Despite the fact that custom builds cost more, large enterprises with specific requirements require more benefits that are only offered by custom builds. Small businesses usually benefit more from using faster and cheaper SaaS solutions that still offer enough features to support their growth.
In those recommendations, each company’s objectives and capabilities have to be evaluated. Establish a decision matrix based on business-critical factors such as necessary integrations, maximum daily, weekly, or monthly sales, and post-launch plans. This should be followed by a realistic budget estimate for both options. And then weigh the advantages and disadvantages in order to decide whether investing in the future custom development now is cheaper.
As such, there is no right or wrong decision when comparing custom and off-the-shelf ecommerce solutions. As the examples and leading platforms above show, there are powerful solutions on both sides. Consider a specific approach after carefully studying the available options to determine which approach is most suitable for your organization’s online commerce goals and technology plan. With proper assessment and strategizing, both choices can enable companies to sell online for years to come and profit from it.
