August 2, 2021

Saas vs License | Which eCommerce Multi vendor Platform Is Right For Your Business?

The most fundamental platform decision that you need to make when you plan to build a multi vendor eCommerce website is to either have a Software as a Service (SaaS) platform or an on-premise or license-based platform. Before finalizing the platform you will definitely look into a few major aspects that have a major influence in determining the cost of the eCommerce marketplace. Those queries are as listed below.

  • How far is the platform easier to get integrated with other third-party systems?
  • Is it easier to customize to suit our business model?
  • Will it be scalable enough to allow our business to grow?
  • Can we easily update and maintain the platform?
  • Is the platform faster to implement?

Once we get a proper answer for all the above mentioned queries we will proceed with our development process. Before we get into the comparison of SaaS-based eCommerce platforms and licensed-based, we need to know exactly what these platforms are.

Difference Between Saas Vs License Multi vendor Ecommerce Platform

SaaS-Based eCommerce Platforms

SaaS is a way of implementing or delivering services through internet service and the application will run on the provider’s hosting server. SaaS-based ecommerce platforms can be launched instantly without taking much time.

This is also considered to be cost-effective and this has become the first choice for any start-up or medium-sized company. Without owning any coding experience, one can access the platform and get his online store reach his audience with less effort.

License Based eCommerce Platforms

The licensed-based ecommerce platform is also termed as on-premise ecommerce platform and these platforms are exclusively built by skilled third-party vendors.

Businesses will buy the application along with its license from the third-party vendor and will host the application in their own servers. The user will have complete control over the platform and can do whatever changes they want to do with the platform.

Now let us have a comparative study between SaaS-based ecommerce platform and Licensed-based ecommerce platform in detail.

1.    Integration

Every business involves numerous tools and systems like ERP system, order management system, tax calculation software, shipping and logistics applications, and many more that will ensure a smooth functioning of day-to-day business operations.

It is very essential for the platform you select to integrate well with these additional applications.

SaaS-based eCommerce platforms – SaaS platform is exclusively developed by keeping its own API in mind. There is always a restriction in using limited APIs with these platforms. It is a little difficult to integrate your APIs with SaaS and you may need assistance from your provider to integrate your third-party APIs.

Licensed-based eCommerce platform – these platforms are very flexible to be integrated with any number of third-party applications. Since the platforms are easily customizable, with less support you can easily integrate the other business application with your existing licensed-based eCommerce platform.

2.    Ownership cost

Either you prefer readymade software or custom software, you need to spend an amount in building your multivendor ecommerce website. This cost is considered to be the complete ownership cost.

These costs include the entire cost of developing the eCommerce platform, the designing, the deployment, and finally the maintenance.

SaaS-based ecommerce platform – these platforms come with subscription charges that are to be paid either monthly or yearly. There is no end for this payment. Till you use the platform you need to pay to the service provider. Also this cost will not include any customization or scalability or any third-party integration. If you need any additional service then you need to pay separately the charge raised by the provider.

License-based eCommerce platforms – these platforms come with a one-time payment and there will not be any hidden or additional charges to be paid then and there. You can get customization support from the provider and can also integrate any application with your platform without paying a single penny to the provider.

3.    Installation and implementation

Installation and implementation are the crucial aspects of any eCommerce marketplace website. It undergoes several processes like preparing and importing data, configuration, managing reports, refining of data and many more.

Major attention is needed in this process to ensure a successful launch of the platform.

SaaS-based ecommerce platform – all resources are deployed in the service provider’s premises and the user can only access the resource anytime and anywhere they want. Installation and implementation happen instantly but customization is not easy with SaaS-based ecommerce platforms.

License-based ecommerce platform – the resources and the complete ecommerce technology stack is maintained within the IT-infrastructure of the end-user. So obviously the business will have the overall control over the implementation and installation process. The deployment time depends on the availability of the resources and you can get your resources on time and can carry-out the implementation in an effective way.

4.    Security

The major and the key concern for any ecommerce platform is the security they provide to the user’s data. It can be a headless storefront but still security is the crucial element one needs to give more focus. Since there are going to be an infinite count of vendors and buyers going to access the platform, you may get more security threats that will spoil the reputation of the platform.

SaaS-based ecommerce platforms – the service provider need to take the overall responsibility of providing high-level security to the platform and should meet the PCI compliance standards. But here you need to find a trusted ecommerce SaaS partner as not all SaaS providers are trustworthy to deal with.

License-based ecommerce platform – as the business has the overall control over the platform, they can implement more number of security measures to their platform and can protect them from unwanted security threats. Staying compliant with the company’s and government policies is not a difficult one for on-premise platforms.

5.    White Label

Branding is a significant term that cannot be ignored by any business. Products without personalized branding will lose credibility among its audience.

Labeling the ecommerce marketplace with our own name is called white label and this is very essential for any business to face their buyers.

SaaS-based ecommerce platforms – white labeling is not possible with SaaS platforms. You cannot get your name in your marketplace platform as it will contain the SaaS provider’s name. You need to carry your provider’s name throughout your business process and your customers may not recognize your brand.

License-based ecommerce platform – since you own the license of the application you can have your own name and promote the platform. Your brand will be easily recognized by your audience and you can easily get hold of your market by putting enough effort in promoting your marketplace platform.

Conclusion

Any business person when planning to build a multivendor ecommerce website, will always focus on marketplace business models revenue. Generating good revenue is important but at the same time you need to select a perfect platform for your business. Analyze all key points that are mentioned-above and select the one that perfectly suits your business.

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Ramya is a highly competent product marketer who has a strong foundation in the area of customer behavior analysis and his critical thinking skills.

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