The better choice in Ecommerce: A hosted platform or licensed solution?

November 16th, 2009 by @kamylynn

I was on a sales call yesterday discussing various options for this lady’s store. I will have to say this question is one of my favorite and most dreaded questions to answer. Essentially, it is just a matter of opinion, but also depends on your store’s individual needs.

Hosted Ecommerce Platform

Pros

  • No need to find your own host.
  • No big upfront costs.
  • When the software is upgraded, no additional cost.
  • Lots of features.
Cons

  • If their system is down, you can’t do anything about it.
  • Payments will be longterm.
  • Possible additional bandwidth costs.
  • If they do not have a feature you need, you’re stuck.

Licensed Ecommerce Solution

Pros

  • With your own host, you’re in charge.
  • Generally one time fee.
  • If you need a feature, you can hire a programmer to add it.
Cons

  • If you don’t know much about hosting, you’ll need to learn.
  • One time fee can be a lot.
  • When the software is upgraded, you might have to buy another license.

The tables above are only a small number of the pros & cons of each. Essentially the choice all depends on your situation. How much of a budget do you have now? Do you need any extra features? How tech saavy are you?

Generally when starting out, most companies go with a hosted platform. As their company grows, so do their needs, and thats when most companies switch to a licensed solution. Again, its best to answer the preliminary questions to establish what features you need in your shopping cart. Once you know that information you can search for solutions that meet your needs. More often than not, you’ll have a mix of hosted and licensed solutions. You then just have to make the decision that is best for you.

Again, the tables are vague and not as detailed as they can be. Stay tuned as next week’s post will be a detailed look at Licensed Solutions!

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1 Response to The better choice in Ecommerce: A hosted platform or licensed solution?

  1. Gerald Ackard

    Wow, did you write this article yourself or pull it from somewhere else, its great!

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