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Jul 16, 2024

Source-Available and Self-Hosted eCommerce: Beyond SaaS Limitations

Written by
Mike Faber

In the eCommerce world dominated by SaaS solutions like Shopify, the idea of self-hosting an eCommerce platform might seem counterintuitive. However, for many businesses, particularly B2B / wholesale, VC-funded or fundraising startups, enterprise eCommerce projects, a source-available and self-hosted solution like Vendo offers compelling advantages. Let's explore why this approach matters and how it can benefit your business.

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Full Customizability: Beyond SaaS Limitations

One of the primary reasons businesses opt for source-available solutions is the unparalleled level of customization they offer. Unlike SaaS platforms that impose limitations on modifications, source-available solutions provide:

  • Source-code access: This allows businesses to understand the inner workings of their platform and make changes as needed.
  • Access to upcoming features: Companies can preview and implement new features before introducing them to their customers.
  • Ability to modify the source code: This enables tailoring the platform to specific business needs and processes.
  • Private innovations: Custom features and improvements remain proprietary, not shared with competitors.
  • Competitive advantage: Unique functionalities can set a business apart in the market.

Why it matters: In a competitive landscape, the ability to create a truly unique and optimized shopping experience can be a significant differentiator.

Self-Hosting or Managed Private Cloud: Control and Security

Self-hosting or using a managed private cloud offers several critical benefits:

  • Full ownership & control: Businesses have complete authority over their eCommerce infrastructure.
  • Enhanced security, performance & scalability: Companies can implement custom security measures and scale resources as needed.
  • Hosting region of choice: This allows compliance with data localization requirements and optimizes performance for target markets.
  • Privacy compliance: Easier adherence to regulations like CCPA, GDPR, and HIPAA.
  • Cost efficiency: While initial setup costs may be higher, long-term expenses can be more predictable and often lower than SaaS solutions.

Why it matters: For businesses handling sensitive data or operating in regulated industries, this level of control is not just beneficial—it's often necessary for compliance and risk management.

Flexibility for Various Use Cases

Source-available solutions can accommodate complex business models and requirements:

  • Mixed business models: Ability to handle DTC, B2B, or both under one platform.
  • Diverse sales channels: Support for first-party sales, third-party marketplace functionality, or a combination.
  • Multi-brand management: Capability to manage multiple storefronts or brands from a single admin dashboard.
  • Global commerce: Support for international sales with multiple languages and currencies.
  • Multi-tenant white-label SaaS: Ability to create a custom SaaS offering based on the platform.

Why it matters: As businesses grow and evolve, having a flexible platform that can adapt to changing needs without requiring a complete overhaul is invaluable.

Diverse Payment Processing Options

Unlike many SaaS solutions that limit payment processor choices, source-available platforms allow integration with various payment systems:

  • Support for processors beyond Stripe, such as Mollie, Square, Adyen, and others.
  • Integration of local payment methods.
  • Accommodation of high-risk payment processors.

Why it matters: The ability to choose payment processors can significantly impact transaction fees, customer experience, and the ability to serve specific markets or industries.

Stable Integrations with Existing Systems

Source-available solutions offer more control over integrations with other business systems:

  • Stable connections with WMS, ERP, CRM, accounting, and analytics tools.
  • No unexpected changes that could disrupt operations.

Why it matters: Reliable integrations ensure smooth operations and data flow across the business ecosystem, reducing errors and improving efficiency.

Single Sign-On (SSO) Capabilities

Implementing SSO can streamline user management and enhance security:

  • Unified customer catalog across systems.
  • Reduced password management burden for users.
  • Seamless access to various business applications.
  • Centralized permissions management.
  • Comprehensive audit trail for security and compliance.

Why it matters: SSO improves user experience, enhances security, and simplifies IT management, particularly for businesses with complex digital ecosystems.

Self-hosted take aways

While SaaS eCommerce platforms offer convenience and quick setup, they may not meet the needs of all businesses. For companies requiring greater control, customization, and flexibility, source-available and self-hosted solutions like Vendo provide a powerful alternative.

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By offering full customizability, enhanced security and control, support for complex business models, diverse payment options, stable integrations, and SSO capabilities, these solutions empower businesses to create truly tailored eCommerce experiences that can drive growth and maintain a competitive edge in the market.

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Written by
Mike Faber
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