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The limits of SaaS Ecommerce platforms

ecommerce

The past five years have seen the rapid growth and adoption of SaaS Ecommerce platforms. The option of a simple, inexpensive, easy to use and quick to deploy store has given many businesses the opportunity to venture into e-commerce. In the past two years, SaaS companies have started to move upmarket, working with an ever growing list of mid-sized retailers. We’ve spoken to countless retailers that considered SaaS platforms when building their e-commerce stores, but there are 5 common reasons they decided against SaaS solutions.

Customization

A mid-sized retailer is at the mercy of a SaaS platforms feature release schedule, and many merchants decide against SaaS platforms because they don’t want someone else prioritizing their business needs.

Flexibility

By choosing a hosted e-commerce platform retailers can accelerate (or decelerate) investment in their online store, giving the business more flexibility to balance and adjust priorities (something subscription based SaaS platforms can’t offer).

Growth

Businesses with long term foresight worry about the scalability of SaaS platforms. Whether their long term plans include additional product offerings or geographic expansion, retailers question whether a SaaS platform will be able to support their future needs.

Integrations

Omni-channel may be a bit of a buzzword, but for good reason. Forward-thinking retailers are working towards a single view of the customer and decide against SaaS platforms that cannot integrate with their existing systems to support that view.

Cost

Many choose SaaS platforms because of the perceived cost savings, but those who look closer find that there is a tipping point. Beyond a certain level, SaaS platforms cost more than hosted solutions, and the ceiling is lower than you might think.

While SaaS Ecommerce platforms are an incredible solution for small businesses venturing into the world of ecommerce, they can be a risky choice for mid-sized retailers looking for growth. We support hosted platforms like Magento, Oracle Commerce and Hybris for retailers that are looking for a flexible and customizable solution.

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