With all the multipe options for a shopping cart platform out there, an easy way to break them down is by licensed or hosted (SaaS) solution. In this segment of the series, we’re going to discuss the reasons for using a licensed solution.

Why should I consider a licensed solutions?

Ernesto, a web consultant in the Washington DC area, stated that using a licensed solution provides “the maximum flexibility.” I have found this to be the number one reason people choose to go with a licensed shopping cart. When you use a hosted solution, you are limited to the features the software has. If you need something extra you don’t have the ability to code around it.

Brenden, of Repeater Store, also notes that flexibility is his top concern when looking at shopping cart solutions. He continues by saying “its difficult to find an Ecommerce package that can cope well with any desire that you might have (e.g. strange shipping rules, unorthodox discounts and promotional codes, etc).” By using a licensed solution, you can modify as needed and most have a community that works on customizations.

PerfectForms, although not a shopping cart platform, is also software in high demand. The interesting thing with them is that they provide their users the option to use On Demand (hosted solution) or On Premise (a licensed solution that lets users install the software on their own servers). Tom Allanson, CEO of PerfectForms, stated that “privacy and security of data made a company choose their On Premise solution. Security and privacy is another thing someone needs to consider when looking for a solution. When using a hosted solution, the software company has access to much of the same information that you do.

Why Should I hesitate?

A driving factor that makes people shy away from licensed solutions is cost. There are solutions out their that are inexpensive, but generally require customizations and changes. These add up as development costs. Tom mentioned that “smaller businesses tend to choose On Demand after discussing prices.” When starting out your funds are limited so the upfront costs of running your own licensed Ecommerce solution can be daunting.

Also, for those that are less tech-savvy, hosting your own shopping cart can prove difficult. You need to first find a host that can maintain your site and its traffic. You typically need to have a basic understanding of web hosting and running a site. Most of the time, store owners just want to worry about selling products. The technical details can be headache inducing. If the site goes down, you’re responsible. You don’t have anyone to call to fix it right away. Or if you do, you’re paying them premium price to work for you.

Brenden also stated that hosting your own solution can be a little more tricky to set up. From step one, to finally running your store, the softwares out there are not always that easy. They tend to have a high learning curve and there’s no one to call to teach you what you’re doing.

Examples

• Interspire
• Magento
• OSCommerce
• XCart

What are your thoughts? Do you like licensed solutions? Or do the cons really outweigh the pros?

Tags: Business, e-commerce, Services, shopping cart

This entry was posted on Friday, December 11th, 2009 at 8:41 am and is filed under E-Commerce Guide | . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.