Open Source vs Saas: Best for Ecommerce Website Development
Every thriving ecommerce business looks for expansion. If you are one of them, you must prioritize building a multi-vendor marketplace as part of your strategic expansion plan. Presenting a multitude of business opportunities across different sectors, a multi-vendor marketplace is expected to revolutionize the eCommerce industry in the coming years. Needless to say, this will also present a host of profitable business opportunities for ecommerce website development companies.
Rising popularity of Multi-vendor ecommerce website development
Why are tech-savvy entrepreneurs and futuristic enterprises turning to multi-vendor eCommerce? eCommerce is a very competitive market, and gaining a competitive edge is the only way to achieve profitability. However, securing new customers requires commitment. Efforts must be made to build a trustworthy and easily recognizable brand. Multi-vendor marketplaces augment these efforts by opening up prospects that help entrepreneurs easily scale up businesses through:
Product range expansion
Logistics process improvement
Operational cost reduction
Expedition of cross-border eCommerce expansion
But to run your marketplace efficiently and encash the opportunities it presents, you must have a multi-vendor marketplace website. It must also be designed exclusively to cater to your rising business demands. Utilizing the services of an ecommerce web design company is a step in the right direction. Let us look at what multi-vendor marketplace development means.
Multi-vendor eCommerce development: a short note
A multi-vendor marketplace website is an eCommerce platform allowing multiple independent vendors to display and sell their products online. Vendors use a seller app to catalog their products and manage their accounts. Hence, multi-vendor marketplace website development comprises numerous modules that cater to the different requirements of vendors, customers, etc.
To succeed, you must choose the right platform for your multi-vendor ecommerce development in the USA. Depending on your exclusive requirements and business objectives, you can opt for an open-source or SaaS platform. How to decide between the two?
The open-source vs. SaaS platform debate is an ongoing debate. Today, entrepreneurs are technologically smart and compare platforms, frameworks, languages, etc., before taking the final call. However, confusion reigns when deciding between an open-source and SaaS platform for multi-vendor marketplace development. To clear up this confusion, let us compare the two based on certain factors that impact the outcome of the eCommerce multi-vendor marketplace. Knowledge about the same will also help you negotiate a better deal with the ecommerce website development company you choose to build your multi-vendor marketplace.
Open source vs. SaaS: The ideal multi-vendor ecommerce development platform
Before comparing the two, let us understand the basics of an open-source and SaaS platform.
An open-source platform gives complete access to the source code. Developers with extensive technical knowledge can modify and customize the source code based on your requirements. While the open source is free, eCommerce website hosting and the use of additional extensions might require additional payments.
This platform is extremely popular among IT-heavy organizations primarily because it is scalable, customizable, and flexible. An open-source platform also offers complete control over the installation, security, hosting, administration, management, and upgrades. However, open-source platforms are characterized by a steep learning curve. Hence, ensure they have adequate knowledge when choosing an ecommerce web development company to build your multi-vendor ecommerce marketplace.
The SaaS platform is a service-based subscription that works by hosting an eCommerce solution on the cloud. You have to pay to acquire a license to use it. A SaaS package offered by ecommerce web developers includes website hosting, security, maintenance, technical support, and updates. Hence, you save installation, infrastructure, and maintenance costs.
Now, let us compare the two platforms based on specific factors that will impact the outcome of your multi-vendor ecommerce development project.
Cost
The open-source option might initially seem less expensive, but as your control over the ecommerce environment grows, so do its associated costs and responsibilities. While the platform might be free to use and customize, you must factor in the costs associated with hosting, developing, customizing, securing, and maintaining your eCommerce website. These can add up to a hefty amount that might exceed the multi-vendor ecommerce website development budget set aside by start-ups and small businesses. However, an open-source platform is ideally suited to cater to the multi-vendor eCommerce website requirements of large enterprises and organizations.
A SaaS package is a subscription-based package wherein you must pay at a pre-decided frequency. Till such time as you pay, you can utilize its services. Your SaaS package fees also include important website functionalities like security, hosting, upgrades, maintenance, and PCI compliance. This makes it a lucrative deal for small businesses and start-ups.
Hence, the ultimate choice depends on your requirements and budget. You can always opt for a SaaS multi-vendor eCommerce website initially and transition to an open-source platform as your business grows.
Security
eCommerce websites warrant robust security measures. With buyers and sellers entering sensitive information at various touchpoints, you must prioritize data security and take proper measures to secure your website.
When you opt for an open-source platform, this responsibility totally lies with you and your ecommerce website development service provider. However, when you opt for a SaaS platform for your multi-vendor marketplace, the subscription fees factor in all website security requirements. You can also negotiate with your SaaS provider to ensure the updation of the implemented security measures as and when required.
Installation
Both open-source and SaaS platforms are easy to install. But all additions and customizations done to an open-source eCommerce marketplace require technical expertise.
SaaS multi-vendor ecommerce marketplaces offer a trial period to test the product before committing to the paid version. Also, once you pay for the package, you do not have to worry about the backend processes involved in its setup.
Customization
Arguably a significant differentiator capable of influencing the final choice, the customization capabilities of open-source platforms are infinitely better than those offered by SaaS platforms. Your ecommerce web design company has absolute control over your multi vendor ecommerce website source code. Consequently, they can customize your multi-vendor ecommerce website based on your exclusive requirements regarding product page display, categorization, and even the check-out process. Thus, you can offer an impressive user experience.
The SaaS platform developer has control over the source code. Therefore, customization options are very limited. With its array of plugins, pre-designed themes, add-ons, and templates, some customization is possible, but they are nowhere near that offered by an open-source platform.
Maintenance & Support
The SaaS ecommerce web developer is responsible for the Saas platform maintenance and support. As a result,you do not have to allocate time, energy, or resources for the same. But in an open-source environment, security, maintenance, support, etc.; everything is your responsibility. You have to avail of a maintenance contract with your selected ecommerce website developmentservice provider to ensure the upkeep of your multi-vendor ecommerce website so it works properly.
Final thoughts
So, which is the best multi vendor marketplace platform? A conclusive answer to the debate about open source vs. SaaS is a remote possibility. The choice depends on the requirements and budget of the multi-vendor eCommerce website to be built. Hence, you must compare the pros and cons of individual development environments vis-a-vis your business requirements and take the final call.