Pros and Cons of Hosted and Custom eCommerce Solution

As soon as you have decided to open an online store, the very next decision for you is to decide whether to go for hosted e-commerce solutions or custom ecommerce solutions. Both have their own set of advantages and disadvantages. There are no hard and fast rules on how to make such a decision but generally this decision depends on various factors such as type of business, target audience, potential marketing strategy and future growth plans.

What are hosted e-commerce solutions and custom e-commerce solutions?

Companies such as Yahoo! Merchant and Amazon provide hosted e-commerce solutions. These companies will offer you a platform to set up your online shop as well as a host of ecommerce solutions for managing your inventory, orders, sales, shipping, marketing and much more. These solutions are generally preferred by small- and medium-scale businesses as they don’t need to spend much time or effort setting up a shop on such platforms. Also, setting up a shop on these platforms cost next to nothing; however, they charge nominal fees whenever you make a successful sale.

Using custom e-commerce solutions involves setting up your own shopping platform through the creation of a website. You will need to find a developer who will create a website for you as well as develop an array of features and applications that your customers can use to make a purchase on your website. While selecting such a developer, it always pays to check their past experience and reviews.

Pros and cons of hosted e-commerce solutions:

Following are the advantages of hosted e-commerce solutions:

  • Easy to set up a shop
  • Doesn’t require much of starting capital
  • Range of features and applications available to make your business successful
  • Pre-existing strong brand that you can take advantage of
  • Safe and secure at the most affordable price
  • Easy to manage and maintain

Following are the disadvantages of hosted e-commerce solutions:

  • If your business has a unique model, you may not find the exact application for it
  • Every time you sell an item, you have to pay commission to your host provider
  • Becomes costly for a large-scale business

Pros and cons of custom e-commerce solutions:

Following are the advantages of custom e-commerce solutions:

  • Perfect for any large-scale business
  • You can have a unique design and theme for your store
  • Customized applications and solutions
  • Better branding potential

Following are the disadvantages of custom e-commerce solutions:

  • Initially quite expensive
  • Needs brand building from the scratch
  • Need to find an expert developer
  • Need to enter into a detailed agreement with the developer for details like who will own the site and how to maintain it

Once you decide what kind of ecommerce solution will work for you, the process will become quite smooth. If you are opting for hosted e-commerce solutions, you just need to analyze the existing ecommerce platforms. However, if you are opting for custom e-commerce solutions, you need to find an expert who can create the exact website that you fit your bill. 

If you are confused about which way to go, please contact without any hesitation. Ydeveloper has years of experience that you can use to take a wise and proper decision.