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Hosted Ecommerce Solutions Versus Licensed Shopping Cart Software
By: Paul L Stevens
There are two main approaches to choosing shopping cart software that you need to decide before purchasing. 1) "Off-the-shelf" / Licensed / Boxed software, which is a one-time purchase of a shopping cart system license, and you get your own hosting package wherever you want. OR 2) Hosted e-commerce solution, where you pay a monthly fee to use their shopping cart system. There are advantages and disadvantages to both.
1. Hosted Ecommerce Solution.
Advantages: Hosted ecommerce solutions have no installation of software, no checking minimum server requirements, no SSL setup or installation, and no worrying about server compatibility. Everything is there and ready to go, just signup and begin configuring your cart. Plus, you'll always have the latest version of the software, as they keep everyone updated to the latest version with the latest bug fixes. Most all offer unlimited tech support as long as you are a customer. Usually you can get a robust site builder program to manage all your content and site design along with the shopping cart program. The feature list is often very extensive and robust, providing a top of the line shopping cart system.
Disadvantages: This company is now considered your official web host of your site, and you're stuck with the options they offer you for hosting and the shopping cart features. You are essentially at their mercy for pricing of extra bandwidth, storage, or dedicated servers, as they usually are not known for offering the most competitive deals in the web hosting industry. There are no options for customization or tweaking of the software to fit your needs, you have to take it or leave it. This rigidity may also place limitations on your ability to integrate your existing site design. Sometimes they place limitations on the number to products you can have, so if you need to add more than your allotment, you'll have to upgrade to a larger package. It is perplexing to me that they still charge a "setup fee" that averages at least $100 or more. I find it hard to believe that activating someone's account on a system that is designed to automatically handle thousands of users takes the same amount of labor as licensed software installation does (ie, ftping the files to the server, setting permissions, configuring SSL, setting globals, troubleshooting server configs, etc).
This type of shopping cart system can be compared to leasing a car. You get a real nice car as long as you make your monthly payments. At the end of your lease, you return the car, and you have nothing. Similarly, after several years at $100-$300 a month for a hosted shopping cart solution, you've paid many thousands of dollars and you have nothing. As long as you want to stay in business, you have to continually pay to use it. At first $50 or $100 a month sounds like a better deal than paying $500 up front for a purchased shopping cart program, but in the long run, you'll pay far more. But if money is not your primary concern, and a hosted shopping cart solution offers the features, ease, and convenience you need, then it should serve you well.
2. Licensed "Off-the-shelf" Shopping Cart Programs.
Advantages: The biggest advantage is the cost savings. You purchase a shopping cart program and you own that license forever, so just pay a one time fee and you can use it for years to come. If you outgrow it, want to switch to something else, or never use it... it still has value and you can resell it secondhand to recoup some of your money. The other big advantage is selection of software. There are probably 20 or so major shopping cart companies out there, making a vast array of features available to meet even the most demanding ecommerce situations. The scalability of their software is unparalleled, often including full source code for custom programming to fit any need. Several publishers have very aggressive ongoing product development, continually packing robust features in an upgrade every few months. You can choose your own hosting with these shopping cart systems, and this flexibility in hosting allows you to search out the best prices, features, and reliability that will meet your needs.
Disadvantages: Packaged shopping cart software is dependent upon web hosting that meets the minimum server requirements, so you must check this before you buy. Overall, you will find that most all commercial web hosts DO meet the minimum requirements, because they are pretty much the same for most all shopping cart programs. The key to avoiding server compatibility issues is to actually use a commercial hosting company. Do not use your nephew running a server out of his closet, or anyone else that thinks they are an experienced network administrator. Chances are that they might be used to having a basic web server operating, but not familiar or experienced with proper installation and configuration of PHP, ASP, CURL, SSL, SENDMAIL, etc. So leave hosting to the pros, and you'll avoid a ton of headaches. Furthermore, take advantage of the professional installation that the developer offers, and you'll know everything is configured properly and ready to go. You also must exercise caution when modifying codes or working with your ftp program on the server, and always keep backups. Being that you have access to the full source code and cart files, you or one of your employees may unknowingly delete a file or piece of code while trying to make changes. As you can see, the only main disadvantage is that packaged software is more prone to user error, but can be minimized by following the suggestions outlined above. At worst, you'll have to call tech support for them to help you troubleshoot the problem... and that's what they're here for.
3. Conclusion:
Business owners who want do everything themselves (not wanting to hire a web developer) and want a shopping cart system with the least amount of technical know-how will tend to gravitate toward hosted ecommerce solutions. It offers a one-stop shop for full browser-based cart administration, sitebuilder and content management. They are willing to pay a continual monthly fee for that convenience. On the other hand, business owners with a basic understanding of building their own site (with Dreamweaver, Frontpage, etc.) and web developers building sites for their clients will tend to favor licensed software, due to the affordable one time purchase, selection, flexibility, and scalability.
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