E-commerce platforms are at the heart of how businesses sell online today. From easy-to-use hosted options to fully customizable setups, there’s a solution for every need. Let’s take a closer look at the pros and cons of popular hosted platforms—and see why some businesses choose to own their entire tech stack instead.
Leading Hosted E-commerce Platforms
Shopify
Shopify is one of the biggest names in hosted e-commerce. It’s popular because it’s easy to use—even if you’re not tech-savvy—and offers a huge library of apps to add extra features as your store grows.
Positives:
- Easy to set up and use, even for beginners
- Large app marketplace for extending functionality
- Robust payment processing options
Downsides:
- Limited customization options, especially for complex business models.
- Transaction fees for using non-Shopify payment gateways.
- Dependency on third-party apps for advanced features increases costs.
- Expensive add-ons can quickly increase overall costs.
BigCommerce
BigCommerce stands out for having a lot of features built in from the start, which means you don’t need as many add-ons. It’s designed to grow with your business and can handle everything from small shops to large online stores.
- Extensive built-in features, reducing reliance on third-party apps
- No transaction fees
- Strong SEO capabilities
Downsides:
- Steep learning curve for beginners.
- Limited theme options compared to competitors.
- Pricing tiers based on annual sales can lead to unexpected cost increases.
- Complex product options and variations system.
Squarespace
Squarespace is all about beautiful design. It lets you build a stunning website and add e-commerce features, all in one place. It’s especially popular with creatives and small businesses who want their site to look professional right out of the box.
Positives:
- Beautiful, professionally designed templates.
- All-in-one platform for website building and e-commerce.
- Strong blogging and content creation tools.
Downsides:
- Limited customization options compared to more advanced e-commerce platforms.
- Fewer third-party integrations than some competitors.
- Higher pricing for e-commerce features.
- Limited payment gateway options.
Wix
Wix is famous for its drag-and-drop website builder, making it easy for anyone to build a site and add an online store. It’s a good pick if you want lots of templates and a straightforward way to get started selling online.
Positives:
- Intuitive drag-and-drop interface
- Wide range of customizable templates
- Integrated marketing tools
Downsides:
- Limited scalability for high-volume stores
- Difficulty migrating to other platforms
- SEO limitations compared to more specialized e-commerce platforms
- Limited advanced e-commerce features
Potential Shortcomings With Hosted Platforms
Hosted platforms can be a great fit for many businesses, but there are a few important drawbacks to keep in mind:
- Vendor lock-in: Migrating your store to a different platform can be difficult and costly if you outgrow your current one or become dissatisfied with the service.
- Compliance concerns: Depending on your industry, you may have specific compliance requirements that are challenging to meet with a hosted platform.
- Feature releases: You’re dependent on the platform’s roadmap, which may not align with your business needs or timeline.
- Pricing changes: Platforms may alter their pricing models or introduce new fees, potentially impacting your profitability.
- Limited control over updates: Platform updates may introduce changes or bugs that negatively affect your store’s functionality.
That’s why it’s important to look at the whole picture before you choose a hosted e-commerce platform for your business.
From Stability to Uncertainty
- Magento: In 2018, Adobe acquired Magento, leading to significant changes in pricing and support for the platform’s open-source version. This shift has caused concern among some users who relied on the community edition.
- Yahoo Stores: Once a popular e-commerce platform, Yahoo Stores has seen a decline in features and support over the years, leading many merchants to migrate to other solutions.
- 3dCart (now Shift4Shop): The platform underwent a major rebranding and business model change in 2020, which, while offering free plans for some users, also caused confusion and concern among existing customers.
These stories show how changes to hosted platforms can directly affect your business. It’s a good reminder to think about long-term stability before you commit to any solution.
Breaking Free from Limitations
If you build and own your e-commerce platform, you get a few big advantages:
- Complete customization: With full control over your platform, you can tailor every aspect of your e-commerce store to meet your specific needs and provide a unique customer experience.
- Scalability: As your business grows, you can easily adapt and expand your infrastructure without being constrained by platform limitations.
- Cost-effectiveness: While initial development costs may be higher, you’ll avoid ongoing subscription fees and transaction costs associated with hosted platforms.
- Integration flexibility: You can integrate with any third-party service or custom solution without being limited to a platform’s ecosystem.
- Data ownership and control: With a self-hosted solution, you have full control over your customer data and can leverage it more effectively for marketing and business decisions.
- Enhanced security: You can implement custom security measures tailored to your specific needs, rather than relying on a one-size-fits-all approach.
- Competitive advantage: A unique, custom-built platform can help you stand out in a crowded market and offer features that your competitors using hosted solutions cannot match.
Conclusion
There are lots of e-commerce options out there. Hosted platforms like Shopify, BigCommerce, Squarespace, and Wix make it easy to get started, but they come with trade-offs that could affect you down the road.
If you choose to own your tech stack, you get total control and the ability to customize your store however you want. It’s a bigger investment at first and takes more know-how, but it could set you up for long-term growth and flexibility.
When you’re picking an e-commerce platform, think about your business goals, how much tech work you’re comfortable with, and where you want your business to go. Decide if a quick-start hosted platform fits your vision, or if building your own solution is a better fit for the future. The right choice now can set your online store up for years of success.