Pros And Cons Of SAAS And Open Source Ecommerce?


10 min remaining

Are you familiar with the term SaaS (Software as a Service? Most likely not. What if I said that you have ever downloaded software from the internet instead of installing it locally? This is what it’s all about. This post focuses on the importance of software as a service within the eCommerce world.

Businesses are moving towards software as a Service by using operations such as Office 365, Salesforce and Google apps. SaaS eCommerce has been a popular term in recent years. It can be intimidating at first, but it doesn’t mean that it is easy and straightforward. This post will help you to understand the subject better.

What is SaaS?

SaaS stands for Software as a service. SaaS is cloud-based software that allows users to access an app via an internet browser, instead of downloading it to a computer or network. Software apps can be any type, including office software and unified communications. There are also a variety of business applications. Software as a service is free. Software as a service works like a rental. Users could rent the software for a set period of time and then pay for their use. Tatvasoft, an offshore outsourcing company, could offer SaaS solutions for organizations.

SaaS has Key Advantages 

It takes less time to get it done

A SaaS app can be installed and configured in a matter of minutes, which is a departure from the traditional way. A cloud instance could be created and the app can be used within a matter of hours. This reduces the amount of time required to configure and install the app, which could help minimize any concerns about software development.

Integration and Scalability

SaaS solutions are typically hosted in the cloud and can be scalable with other offerings. Users don’t need to purchase additional software or servers in comparison to the traditional model. Users just need to enable the new offering. The SaaS provider also owns the server capacity planning.

Lesser costs

The SaaS is cheaper than traditional models in terms of costs because it shares a multi-tenant space with lower hardware and software licensing costs. The SaaS allows SMEs to access software they might not otherwise be able to because it is less expensive than traditional licensing. Because the provider owns the environment, maintenance costs are reduced and the cost is split among customers who use the solution.

Updates and new releases

SaaS solutions can be upgraded and made available to customers. Upgrades and new releases are less expensive than the old model. Traditional models often require users to upgrade or to pay for specialized services in order to obtain the upgraded environment.

Proof of seamless use and performance

SaaS services are simple to use because they already provide the best practices and sample code. It is possible to test and proof concepts before releasing software. They could also have multiple instances with different versions to facilitate smooth migration.

SaaS disadvantages

SaaS sounds wonderful, but it’s not perfect. Hosted apps have many bottlenecks that need to be addressed. These are some of the main disadvantages to SaaS:


In-house software apps give business owners high control. Hosted solutions leave much of the control to third-party providers. It may not be the best platform for you if you don’t want to depend on third parties to manage your business apps.

Connectivity requirements

SaaS software can be accessed via the internet. Access to data and software will be cut off if the internet provider is down or mobile workers are out of range.

Apps with finite capabilities

SaaS is a very popular option, but there are still many software applications that don’t offer a hosted platform. If the company relies on multiple software solutions, it may be necessary for some apps to remain on-site.

Slower speeds

SaaS apps generally run at slower speeds than client/server apps. Although the speed is still very good, it is possible for a computing scenario to be slower than instant.

Different features and functions

Hosted apps tend to be limited in their functionality. Hosted apps may lack certain features and functionalities that are available in client/server counterparts. Each app will need to be evaluated individually to ensure it offers the required features.

SaaS makes sense for eCommerce

Software-as-a-service eCommerce platforms offer the fastest launching of an online shop. It also saves money on design and development. These are the best solutions today. It is also beneficial to keep up-to-date with SaaS eCommerce. A SaaS eCommerce platform can be one of the best choices to make eCommerce grow continuously at seven times the rate of the rest of the industry. The growth can be attributed to several factors, including customer convenience, customer behavior, and enhancements in customer experience. Mobile devices and apps have changed the way consumers shop in a dramatic manner over the past few years. Companies that are successful have been quick to adapt to these changes. The constant change in customer demands and requirements led to businesses changing.

How to use SaaS for eCommerce

Focus on the driving force behind your business

Even the most successful business operations are limited in resources. In this sense, the software for business reflects an organization’s priorities. What priorities will you place on software maintenance, server maintenance, and data security standards, or what is most important? The decision is between managing the company’s eCommerce infrastructure and choosing an enterprise-level SaaS eCommerce solution. Enterprise-level eCommerce solutions allow businesses to focus on what makes them successful. Both IT departments and decision-makers can focus on what gives companies a competitive edge.

Software-as-a-service helps scale during peak sale times

Retailers need to be able to scale during peak periods. Otherwise they risk losing revenue or even offending their clients. Scaling is simple with SaaS. Software outsourcing services could show page responses times that are less than 200 milliseconds if the website receives as many as 500,000 requests per minute. A company should care about product fulfillment, customer experience, and inventory levels during peak times.

Facilitates integration and implementation faster

SaaS platforms are often quicker to integrate and implement than other solutions. A software-as-a-service solution usually includes optional extensions as well as add-ons to connect to the enterprise platform with other SaaS apps.

Provides better eCommerce ROI

You would be more agile if you had money. A company must respond to changing market conditions. Financial resources are a distinct advantage. Businesses strive for efficiency and effectiveness because of this. It’s also why ROI is so important. SaaS eCommerce solutions for enterprises offer a higher return on investment than other platforms. Software-as-a-service minimizes or even eradicates high upfront expenses that companies allocate on licenses and hardware in projects. This reduces customization costs by allowing for easier configuration and best practices.

SaaS Shopping Carts

SaaS eCommerce hosted solutions enable small web retailers to open functional shops with lower cost eCommerce platforms . Shopping carts can often be used in a very simple way and it is a great idea to seek help from a professional developer.

Shopify Cart

This cart is used by more than 15,000 online merchants for daily transactions. The eCommerce SaaS solutions are reliable and stable, without a doubt. Shopify also offers an easy-to-use online shop builder. There are both premium and free themes.

Magento Go

It’s a relatively recent entry in the eCommerce SaaS market. It is the only licensed eCommerce platform that carries this brand. Magento’s editions, community and professional, as well as enterprise, serve more than 110,000 web merchants. These include large multi-channel retailers.

Volusion Cart

It offers a fantastic shopping experience and a lot of customer-centered options, like product zooming and product comparisons. Volusion doesn’t charge any fees and offers many free themes.


SaaS solutions often target small and medium businesses in the eCommerce industry. The cart, on the other hand, is best suited to medium-sized or larger online retailers that have established marketing and promotional departments. However, it does not allow for the creation and hosting of an in-house shop. Demandware is therefore a robust solution.


It offers a complete SaaS solution, as well as additional ERP and CRM tools. This SaaS service is for medium retailers who want to improve their back-office efficiency and grow. It offers many tools for tracking lifetime customer value, keeping track of customer interaction, web traffic, and pricing.

What Top SaaS Organizations Need to Pay Attention To

Analytics takes center stage

This year, more businesses will likely use specialized analytical tools. Companies that have struggled with trusting their data are now the best time to embrace SaaS solutions which provide reliable numbers.

Constant freemium

This refers to the SaaS company strategy that minimizes one of the biggest adoption hurdles, which is the cost of subscriptions. Freemium, regardless of its effectiveness, is still an effective way to acquire users for organizations.

More vertically-oriented SaaS apps

Vertical-focused SaaS companies tend to grow faster than horizontal ones. They also make up the majority of the overall market. The tools are a delight for both employees and businesses.

All-in-one, back in fashion

In oversaturated markets, the all-in-one solution is a real benefit. For small businesses, simplicity is a huge win.

SaaS is a platform for buying services

These services are great and a reliable business model. More entrepreneurs this year would innovate ways of building scalable service companies within easy-to-use software-as-a-service platforms.

Machine Learning Applications with more practical applications

Many small businesses and B2B employees use SaaS solutions. However, only a few companies make use of SaaS products that are powered by machine learning and AI. Competent businesses create more products that use machine learning and AI to detect security and fraud, automate healthcare, personalize marketing, and take advantage of the application gap.

SaaS isn’t just for the big guys.

Many small and medium SaaS companies are self-funded and financially viable. This year, more entrepreneurs would realize that a software-as-a-service company does not necessarily have a VC-backing or a billion-dollar valuation to be great.

Avada: An example SaaS company

AVADA was founded in 2017 as an eCommerce solution provider. It is backed by deep expertise in software and app development. This company is well-versed in the challenges and constant needs of online businesses when it comes to building, maintaining, or maximizing the effectiveness of their valuable asset, eCommerce websites.

Avada’s mission to 1,000,000 online businesses is to increase their revenue. The Avada team has continuously tested and released innovative apps to solve specific Shopify store problems. Avada places customers first and puts high-quality products at the heart of its business. Customers are valued and supported at all times.

About the author

Kobe Digital is a unified team of performance marketing, design, and video production experts. Our mastery of these disciplines is what makes us effective. Our ability to integrate them seamlessly is what makes us unique.