When a business decides to sell online, one of the first decisions is where the store will live. Broadly, there are two approaches: a hosted e-commerce platform, where a company runs the software and servers for you, and a self-hosted store, where you run e-commerce software on your own hosting, often as part of a content-managed website. Both can work well. The right choice depends on your products, your team and how much control you want.
How hosted platforms work
A hosted platform provides the store software, hosting, security and updates as a subscription service. You sign up, choose a theme, add products and connect payments. The platform handles the servers, applies software updates and maintains much of the payment security environment.
Strengths:
- Quick to set up, with fewer technical decisions.
- Updates, hosting and scaling are handled for you.
- Integrated tools for payments, shipping, taxes and point of sale.
- Support from the platform when something goes wrong.
Tradeoffs:
- Ongoing subscription fees, and sometimes transaction fees or paid apps for extra features.
- Customization is limited to what the platform allows.
- Moving away later can take real effort, since your store is built on their system.
How self-hosted stores work
A self-hosted store uses e-commerce software installed on hosting that you control. A common example is adding a store plugin to a content-managed website. You choose the host, the software and the extensions.
Strengths:
- Greater flexibility and control over design, features and data.
- The store can live seamlessly within an existing website.
- A wide range of extensions and integrations.
- Easier to move between hosting providers.
Tradeoffs:
- You are responsible for updates, security, backups and performance, either yourself or through a maintenance partner.
- Hosting must be sized and configured for e-commerce.
- Costs can be harder to predict, as extensions, hosting and maintenance add up.
Questions that help you decide
- How many products will you sell, and how complex are they?
- Do you need features like subscriptions, bookings, wholesale pricing or custom product builders?
- Do you also sell in person and need a point-of-sale system that shares inventory?
- Who will handle updates and troubleshooting?
- Is the store the center of the business, or one part of a larger content website?
- How important is it to be able to move your store elsewhere in the future?
Making the decision
There is no universally right answer. A business that wants to start selling quickly with minimal technical upkeep often leans toward a hosted platform. A business with an established content site, specialized needs or a strong preference for control often leans toward self-hosted. Whichever you choose, make sure the accounts are in the business’s name, export your product and customer data periodically, and compare current pricing and terms directly from each provider before committing.
