![[header] off the shelf vs. custom ecommerce software](https://www.miquido.com/wp-content/uploads/2020/05/header-off-the-shelf-vs.-custom-ecommerce-software.jpg.webp)
The eCommerce industry is developing rapidly, with the number of online shoppers estimated to hit 3.6 billion with a market volume of $5,887 billion by 2029.
As a result, more entrepreneurs are looking to join the industry, and one of the key decisions they’ll have to make is whether to use an out-of-the-box eCommerce platform or build custom eCommerce software. This detailed custom vs. off-the-shelf ecommerce software guide will help you make the right decision.
In this post, we explore the differences between the two types of solutions and advise which is best for your business. We took into consideration the essential aspects of both custom and premade options to help you make the right choice for your unique needs.
Off-the-shelf vs. custom ecommerce software comparison
Before we get into the detailed review, here is a quick table comparison to give you a general overview of what to expect from each solution.
| Feature | Off-the-shelf eCommerce software | Custom eCommerce software |
| Cost | Lower initial cost, but ongoing subscription and add-on fees | Higher upfront development cost, but no recurring licensing fees |
| Time to launch | Quick deployment time with ready-made templates (can be live in days) | Longer development time (weeks to months) |
| Customization | Generic user experience due to limited customization. Integration capabilities are controlled by the provider | Highly customizable eCommerce platform to match business needs. Unlimited integration capabilities. |
| Scalability | May require costly upgrades (or migration) as business grows | Highly scalable and adaptable to business growth |
| Ownership and control | No full ownership (controlled by provider) | Full ownership and control over features and design |
| Security and updates | Regular updates and security patches from provider | Requires manual updates and maintenance |
| User experience | Generic features catering to a broad audience | More personalized customer experiences. |
Off-the-shelf eCommerce platforms
Premade eCommerce software is applications that enable retailers to build their online stores based on templates. These platforms also allow eCommerce business owners to find a solution for managing sales and operations.
Some of the best ecommerce platforms that offer off-the-shelf solutions include:
- Magento
- Shopify
- PrestaShop
- BigCommerce
- Wix
- WooCommerce
- Squarespace
Off-the-shelf eCommerce platforms can be cloud-based or self-hosted on your business premises. They’re often designed to be user-friendly and may have drag-and-drop builders to help design your store.
Advantages of off-the-shelf solutions
Off-the-shelf e-commerce platforms offer several advantages, including cost-effectiveness, quick deployments, and seamless updates. That’s why they’re typically a popular choice for startups and small businesses who want to maximize their online presence.
Here’s a breakdown of all the major pros you can expect.
Cost-effectiveness
The initial cost of adopting off-the-shelf eCommerce solutions is generally inexpensive. This is possible because development costs are often distributed across a broad user base.
Also, most off-the-shelf software offers flexible, subscription-based pricing models. These plans allow you to access the key features your ecommerce platform needs to run effectively and pay for them on monthly or annual plans. That means you can easily choose a plan that aligns with your budget.
For example, you can build your store in Shopify’s editor using even a free template. But you probably won’t have access to every feature on your wish list. You must pay a monthly fee to do so.
The cost depends on the chosen plan, but basic paid features can be as low as $24 per month. If you choose an advanced solution and select Shopify Plus, which is dedicated to enterprise online stores, the monthly fee will start at $2,300 per month (on a 3-year plan).
Another popular eCommerce platform, BigCommerce, provides a similar pricing structure and an extra option for enterprises.
Additionally, you have Magento, an in-between solution, as it’s an open-source eCommerce platform written in PHP. Building a website in Magento requires tech skills, so the cost of this solution includes a Magento Commerce license ($24,000 per year) and the developer’s salary.
Quick deployment
The unquestionable advantage of pre-made eCommerce software is time-saving.
Ready-made app development solutions come with prebuilt templates that simplify the setup process. So, adoption is a lot easier, even for business owners with little to no technical expertise.
You can simply purchase or subscribe to off-the-shelf software, modify design templates, and deploy right away. That means you can quickly get your business off the ground as soon as you set up your e-store.
There’s no reason not to launch your store in a few days with these solutions if you already have all of the necessary information, product descriptions, and pictures, as well as a vision of how your e-store should look.
Regular updates and security patches
Off-the-shelf platforms typically receive updates and security patches from software providers. Thus, you can rest easy knowing the platform will remain up-to-date with the latest features and security updates. Typically, you’d receive a notification when these updates are live; all you need to do is install them.
Also, software updates aim to ensure that security vulnerabilities are promptly addressed. And, when there are changes to industry standards or trends, you need not worry because your service provider will bear the burden of improving relevant software functionalities. This allows you to focus on other aspects of your eCommerce service operations.
Limitations of off-the-shelf solutions
You’ve seen how off-the-shelf platforms have their benefits. But there are some downsides. Check this out:
Ready-made ecommerce software solutions cater to a broad audience. That’s why you’re more likely to find generic features or functionalities that may not always fit your unique business requirements. As a result, you may have to adjust your workflows to fit what the software can offer, which can be quite limiting.
Generic user experience
Off-the-top solutions may help you run basic tasks, but they may not be suitable for executing more complex functions over time. Also, some platforms may be overly saturated with tools and features that make it too cumbersome for you. You don’t need these features, but you can’t do away with them.
Hidden and long-term costs
We mentioned that the initial cost of off-the-shelf ecommerce software may be low. But this is mostly when you’re dealing with basic subscription packages. It’s an entirely different story when your ecommerce store grows, and you need to accommodate a larger user base or when your team size increases. That growth will force you to upgrade to a premium package or higher-priced plans.
For example, you can build your store in Shopify’s editor using even a free template, but you won’t have access to premium features. To access enterprise-level features, you’ll need to upgrade to Shopify Plus, whose monthly fee starts at $2,300 per month.
Additionally, most off-the-shelf options involve ongoing licensing fees with subscription-based models. Then, there are also costs associated with third-party services, integrations, and add-ons that come with this software. If left unchecked, these costs can add up fast.
Limited customization and integration
Another major downside of off-the-shelf software is that you don’t have complete ownership of your platform. How so? These solutions are built by a provider and delivered to hundreds or thousands of users. So, since you didn’t build it, you have little to no control over how the platform functions or looks.
For instance, although eCommerce platforms provide dozens of templates, they are accessible to many e-retailers. Therefore, the customizations provided might not be enough to differentiate your online enterprise store.
Also, platform providers can make changes as they wish. So, you may find that some features you find valuable are taken out one day, and there’s nothing you can do about it. This is one reason why custom eCommerce solutions may be a better choice over time.
Scalability and performance issues
Off-the-top software may not be ideal for larger or rapidly growing businesses. Here’s why.
As a one-size-fits-all solution, their development plans might not match your unique milestones, and you have limited flexibility for expansion. Say you want to add new features to cater to your growing audience, and this feature is yet to be released by your software provider. You’ll need to slow down on your plans, and this delay isn’t always welcome.
Also, compatibility issues can arise when integrating off-the-shelf software with your existing systems. This may cause you to spend more time and resources looking for a workaround.
Additionally, if the vendors do not allow integrations with certain platforms (which you may want to use), you’ll be unable to adopt them on your store.
Performance issues can be a major concern, too. When these issues arise, you have to rely on the vendor to fix them, which may take time. Imagine having payment issues that require vendor intervention. What happens when they delay to respond? Your customers may become dissatisfied, and you could lose sales.
Moving on with the off-the-shelf vs. custom software ecommerce, let’s discuss custom eCommerce software.
Custom eCommerce platforms
Custom eCommerce software or bespoke software are apps made from scratch and tailored to particular business needs.
Normally, business owners partner with eCommerce software development companies to get a custom solution tailored to their needs. For example, a software development partner like Miquido can take care of the backend development, as well as the UX/UI and mobile design of such pieces of software, while you work on the business part of your store.
With this approach, you get a fully customized solution that is adjusted to the specifications of your online store. That’s what we’ve done for eCommerce clients like HelloFresh and Herbalife.
Benefits of custom solutions
Let’s see why a custom platform can grant you a competitive edge.
Tailored to business needs
Because custom ecommerce software is designed from the ground, it can be tailored to meet unique business needs. This means you can get software that addresses specific issues and aligns with your unique workflow. We can say that custom software does better than off-the-shelf software in this regard.
Custom solutions also allow you to provide more personalized customer experiences, potentially increasing satisfaction and retention over time.
The best part is that you have more liberty to bring your ideas to life and make your store stand out even more from your competitors.
Enhanced flexibility and scalability
Custom software is flexible and allows you to adapt easily to changing customer needs, technological advancements, and trends.
Also, as your business expands, your online shop can grow to accommodate the necessary changes. This could involve adding new features, increasing the product’s capacity, or running new integrations. So your development team doesn’t need to deal with the hassle of constant subscription updates or software purchases.
Cloud-based solutions are also easy to scale and cost-effective because they’re provided on a metered pay-as-you-go basis. Plus, there are no limits regarding the number of users, products, or categories. Therefore, you can grow your team and assortment freely.
Competitive advantage through unique features
Custom enterprise software development allows you to stand out from competitors by adding unique features to your store. These features can be further improved as you monitor your target audience.
For instance, you can observe your typical buyer journey and regularly improve the customer experience. Working with a team of world-class professionals makes it easier to implement these unique features.
Some examples of features that can make your online store more exceptional include:
- a virtual fitting room thanks to the usage of augmented reality
- product recommendations – content-based filtering (based on product similarity), collaborative filtering (based on the behavior of other customers) and personalized offers (based on previously shown interests)
- customer segmentation to meet customer expectations
- data science and app usage analytics to make data-driven decisions
- churn prediction – thanks to predictive analysis, retailers can re-engage customers before they leave an app
- dynamic pricing – machine learning enables adjusting pricing to demand
- voice assistants to provide another shopping channel
- custom analytical dashboards that can calculate KPIs
- marketing automation via email or push notifications, etc.
- Automatic price suggestions in an online auction.
Such features, especially those powered by AI, can effectively enhance the customer experience and, in turn, increase conversion rates.
Beyond that, custom development give you complete control of your store. You can adapt the software however you please. You also don’t need to rely on third-party vendors to improve your store.
Drawbacks of custom solutions
Like off-the-shelf stores, custom software has a few drawbacks.
Higher development costs
The custom software development process generally incurs a significant upfront investment compared to off-the-shelf platforms. These costs typically arise from hiring experienced developers, designers, project managers, and QA engineers, especially when implementing unique functionalities.
However, you should note that there are no fixed costs for building custom enterprise eCommerce software. The budget often depends on your specifications and required features.
At Miquido, we start cooperating with a potential customer by holding discovery workshops. During these workshops, we learn about the client’s needs and preferences. This allows us to jointly establish priorities among features and choose the technologies we plan to use.
We can then adjust a solution to the budget and add new options over time depending on the client’s preferences.
Now, although creating custom eCommerce software is generally more expensive than off-the-shelf solutions, one effective way to lower the cost is through off or nearshore outsourcing. This trick gets you access to the development experts you need at a fraction of the cost. This is especially true for brands in the US and Europe.
Check out our guide on onshore vs offshore outsourcing development for more details.
Longer time to launch
Creating custom eCommerce development software can demand a more significant investment in time. This is because you must find a reliable team and build a website from scratch. Also, when you build from scratch, you must design, develop, test, and refine each feature to fit your specific business needs.
The good news is that if you invest the time and effort into creating a modern, user-friendly, and secure system, it will be sufficient for years to come. At Miquido, we charge our clients hourly so that they only pay for the actual work carried out on their digital products.
Ongoing maintenance requirements
Custom software requires ongoing support and maintenance to ensure it remains updated, compatible, and aligned with your business needs.
Maintenance for your custom ecommerce store would typically include the following:
- Performance checks and improvement
- Adding new features
- Ensuring compatibility with new technologies
- Security updates
There’s a lot more to this list, some more technical than others.
In most cases, the maintenance demands for your online store may be too much to handle on your own. To navigate this, you can have a maintenance and support agreement with your software developer (if you’ve outsourced your online store project). When you do this, be sure to clarify the maintenance services, frequency, and timelines. Agree on what ensures that your store can always run efficiently.
You may have to set up a dedicated team for support and maintenance if you’re running an in-house team.
Key considerations for choosing the right platform
Choosing the right software solution for your ecommerce store is a vital decision. That’s why the next focus of this custom vs. off the shelf ecommerce software discussion addresses the key considerations that should guide you.
They include:
Assessing business requirements
The first step is to define your business needs clearly. Determine the major objective of your online store.
Do you want to improve visibility, expand your customer base, or drive more sales?
Knowing your goals can help you choose a platform that aligns best with your business needs.
Additionally, you need to assess the types of products you sell and the complexity of your business operations. For instance, you want to ensure that the platform can handle the level of demand that is likely to come to your store. So, if you sell a small number of products and don’t require complex inventory management or unique product configurations, an off-the-shelf platform like Shopify or Squarespace will do just fine.
In the same vein, if your order fulfillment process is quite straightforward, i.e., you use standard shipping options, standard pricing, and minimal product customizations, you can use an off-the-shelf solution.
On the other hand, if your business processes are more complex, custom-built platforms might be a better choice. This is because custom software is quite flexible and can be tailored to your unique business requirements. For instance, it can accommodate large product variations, multiple pricing rules, specialized shipping requirements, and dynamic workflows.
Overall, whether you use an off-the-shelf or custom solution, your e-commerce platform should deliver a pleasant customer experience and boost your conversion rates.
Budget constraints and financial planning
Next, you should carefully evaluate your budget and weigh it alongside the financial investments needed for various platforms you have in mind.
If you’re working with off-the-shelf software, consider:
- Upfront costs
- Subscription fees
- Transaction fees
- Potential costs for additional features, plugins, and third-party services.
Keep in mind that platforms with lower initial costs may incur higher expenses over time.
If you choose a custom solution, consider the cost of development. Will you build it in-house or outsource it to a professional software development team?
It’s also important to balance the possible costs against the features your ecommerce platform will have. Your aim should be to get the essential functionalities without straying too far from your budget. For small businesses with a low budget, working with off-the-shelf solutions is okay.
However, if you can afford it, consider using a customizable e-commerce platform, as the return on investment is typically better.
Projected growth and scalability needs
Every business should desire growth. So, from the onset, ensure that the ecommerce solution you settle for can accommodate the growth you foresee. This means you must work with a platform that not only meets your immediate needs but also scales with your business.
Choose a platform that can handle increasing traffic, inventory, and sales volume as your business expands. If your ecommerce store works with multiple vendors, then consider choosing a platform that can accommodate more and more of them over time.
For off-the-shelf solutions, choose a platform with flexible price plans. This makes it easy to upgrade as needed. Ensure this platform can also accommodate the growth in your team size and requirements over time.
Again, a custom software development project offers room for expansion over time, especially when this was considered right from the beginning.
Desired level of customization and control
Another core consideration when choosing between custom vs. off-the-shelf ecommerce software is the level of customization and control you desire. This applies to the design, backend (dashboard) controls, and user experience.
Choose an intuitive and easy-to-use platform. But, beyond that, choose one that allows you to reflect your brand as much as possible.
You should be able to:
- Adjust your store’s layout, colors, and other brand effects.
- Access seamless integrations with existing software and APIs for customizing workflows
- Modify core sales funnels and workflows in your buyer journey
Also, consider the platform’s SEO (search engine optimization) capabilities and ensure you can effectively set up your store for the best performance. Additionally, you want full access to your store’s analytics so you can monitor and adjust your operations accordingly.
Off-the-shelf software is okay if you only have basic customization needs. But for more advanced customization and control, custom ecommerce websites are recommended.
Off-the-shelf vs custom eCommerce development: which one is right for you?
The best way to approach a decision between custom vs. off the shelf ecommerce software would be to determine the benefits and downsides of both.
Off-the-shelf platforms are a cost-effective solution. The ready-made solution makes it a go-to choice if you’re looking for quick deployment, basic functionalities, and little maintenance demands. However, they may limit your ability to customize your online store and distinguish your brand. They may also lack flexibility, which makes it hard to scale your business based on growing user demands, trends, or sales objectives.
In contrast, a custom software solution offers more tailored platforms, better flexibility, and control over your ecommerce store operations. But, the costs may be higher, they have longer launch times, and the maintenance requirements can be quite intensive.
To make the right decision, assess your business requirements, budget, financial capacity, and future growth demands. Also, assess the level of customization and control you want.
If you’re still unsure which platform is best for your business, consult our expert eCommerce developers for guidance on the best solution.
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