When planning an e-commerce website, the cost factor is often a deciding factor in the selection. Questions like “What do we get for my money?” or “What hidden costs should I watch out for?” are a perennial favorite here. Many entrepreneurs are also unsure whether to choose a SaaS or an open-source solution and what costs to plan for each. In the following blog, we have compiled and compared the different cost points of SaaS and Open Source. With this information, you will gain insight into the other software solutions, and it will be easier for you to make a decision.
What Is SaaS?
When planning an e-commerce website, many companies opt for a SaaS solution. Software-as-a-Service is software that can be purchased with a subscription. Thoughts about maintaining or hosting your website are a thing of the past here (the provider will do this for you). Technical know-how is therefore not required.
What Is Open Source?
Open-source software contains source code with which you can make changes and thus adapt your web shop to your wishes. However, technical knowledge is required, for example, for installation, maintenance or data security.
The Most Crucial Cost Items At A Glance
- infrastructure
- software
- installation
- Features and Integrations
- design
- customer service
Infrastructure
Achieving a high conversion rate primarily works with a good infrastructure of your e-commerce website. Therefore, one should invest in quality software favoring fast page loading time. Your Google ranking will thank you.
SaaS
A significant benefit of SaaS is that there is no need to purchase hardware or server capacity as hosting is included with purchase. However, the server performance can vary per provider – so inform yourself sufficiently before making a purchase.
Open-Source
Hardware and servers must be purchased. The quality can also vary significantly due to the price. Inexpensive software often does not match the majority of the needs of online entrepreneurs. Therefore, many website owners opt for an expensive option to prevent slow loading times.
Software
How much does it cost to buy e-commerce software? These costs are associated with direct use. Here in comparison:
SaaS
The software has to be purchased for a monthly or annual fee. The quality and features are what determine the price of the subscription here. Another pricing factor is a company’s turnover and transaction fees. However, Lightspeed eCommerce has thought for you because your costs always remain the same, no matter how high your turnover is.
Open-Source
A significant advantage: You can download most Open Source models for free!
Installation And Setup
As an eCommerce entrepreneur, you have more important things to do than setting up your online store. So read here:
SaaS
You are on the safe side with SaaS solutions because no installation is required. Technical expertise is not required. This has a positive effect on the market launch, which can happen in no time. Time and effort are therefore minimized.
Open-Source
Technical know-how is required here! If you are not tech-savvy, you should consider hiring an IT professional to install the software.
Features And Integrations
SaaS
The standard packages usually contain all the essential functions that you need to start selling online. Extensions from the provider or third parties can also be purchased. Wings that make sales even more successful can be selected, for example, in the Lightspeed App Store.
Open-Source
Open source solutions also offer standard functions. If you need extensions, you can opt for a customized solution.
Design
Of course, you want a professional-looking design that fits your business perfectly. Especially if you’re going to build a brand image, this aspect is essential. However, this can often become costly. In addition, it is necessary to ensure that your website is also suitable for other devices because many customers love to shop on their mobile phones.
SaaS
Many designs are included in the standard price to get off to a professional start. However, if you have concrete ideas, you can choose from tons of responsive and mobile-friendly templates for an additional fee.
Open-Source
Again, you can usually choose from both free and paid designs.
Customer Service
What if everything doesn’t go smoothly? Then you need a contact you can contact quickly and easily.
SaaS
With SaaS, support quality often depends on the provider, but free customer service is usually included in the base price. With Lightspeed’s 24-hour support, you are on the safe side day and night.
Open-Source
In discussion forums, you can always find someone who can answer your questions. There’s also often phone or email support, either free or billed hourly.
Conclusion
SaaS and open-source both have their pros and cons, where you have to be aware of the costs. Set your budget and figure out what’s important to you. So you can decide whether a SaaS solution or an Open Source model is the right price for you.
Also Read: App Store Optimization (ASO): The Guide To Optimizing Your App
