Starting a business can be tricky. There are so many things to think about and many options to consider. Although it’s good that choices are abundant, it can get confusing at times. Doing proper research is imperative because prospective business owners have to know what would suit their needs best. Starting an eCommerce business is very accessible, but it is important to learn how the platforms work before starting the journey. Broadly speaking, all the best eCommerce platforms can be divided into self-hosted and hosted. But, what’s the difference and which one is the best for your needs?
The Difference Between Self-Hosted and Hosted Platforms
As the name might suggest, self-hosted platforms are the ones where the user’s company takes care of all the web hosting tasks. That can be a bit more complicated, but companies often opt to do so because they’ll have more control over their servers. By choosing to self-host, entrepreneurs would have to set up their own server, and have a great maintenance team to keep everything in check. There are a lot of popular platforms that are used for self-hosting, some of which include:
- WooCommerce
- OpenCart
- Magento
- YunoHost
- Sandstorm
- Cloudron
- DPlatform
On the other hand, hosted platforms are a part of the bundle that is provided by the eCommerce application of choice. That means that the same eCommerce platform users opt for will also be responsible for all the server and hosting needs of their clients. eCommerce applications have their own websites, they own the servers, and charge a certain price for using their services. This option can be great for individuals who are novices when it comes to eCommerce. These are some of the most popular hosted platforms:
- Shopify
- BigCommerce
- Volusion
- Big Cartel
- Yahoo! eCommerce
- PinnacleCart
- X-Cart Cloud
- 3dcart
Self-Hosting Benefits and Downsides
Self-hosting is amazing for individuals or companies who’d like to have more control over their eCommerce activities. This type of hosting can be set up anywhere and at any time. Also, customization is much more available for self-hosting because it’s not centralized. It doesn’t depend on anyone else but the business owners themselves and their development and maintenance teams.
Self-hosted eCommerce platforms are much more time-consuming when it comes to setup. That is because users have to choose an eCommerce platform and go through the whole installation process themselves. Also, there is virtually no customer support – you’re on your own. That means that, if something goes wrong, business owners will have to seek their own solutions, or hire external help to do it for them.
Security is also a big thing because business-owners must take care of their customers. Although customers should bear some responsibility for their shopping habits, they often aren’t aware of the available tools to keep them protected. Applications such as VPNs, antiviruses, SSL, and proxies are available for customers, but if you were to mention any of those, most customers would ask what is a VPN (https://nordvpn.com/what-is-a-vpn/), or what is a proxy (https://en.wikipedia.org/wiki/Proxy_server). Until customers get more acquainted with these protection tools, it is up to the business owner to provide them with a secure shopping experience. Not to mention that they can be subject to many lawsuits and fines in case of a breach.
Hosted eCommerce Platforms Benefits and Downsides
Hosted platforms are amazing for beginners who need some assistance with starting their eCommerce business. By choosing to use a dedicated platform for hosting, they are getting a full service. That includes technical support, shopping cart functions, and many other useful benefits. That does come at a cost, though. Nearly all significant hosting platforms require monthly fees. The more options you want-the pricier it will get. But, the fact of the matter is that hosted platforms are much easier to manage.
If there’s an issue, technical support will be available at any given time. Also, we mentioned how important security is. Well, in this case, the whole responsibility is on the hosting platform’s shoulders. Business owners will be carefree and lawsuit-free.
When it comes to downsides, the price is one of the determining factors, especially for novices who are just now joining the game. Startups usually have less funding, so finance is a big deal. Also, as the store attracts more customers, the fees will grow simultaneously. Another downside is that there’s less control and far fewer customization possibilities. Lastly, switching platforms is nearly impossible.
It is crucial to take a step back and evaluate your business and its needs before making any rash decisions. Choosing whether to self-host or pay for a hosting service is a difficult decision to make. It can make or break your business. So, take your time to carefully explore all options, assess the risks and benefits, and make a verdict accordingly.