Self-Hosted vs Hosted E-Commerce Platforms: Which Is Right for You?

There are many eCommerce platforms available today and you can launch your online business and start selling in minutes. While WooCommerce, Wix, PrestaShop, and Squarespace are all popular eCommerce storefronts, there are some significant differences between them. One of the biggest, and most often overlooked, differences is whether they are self-hosted or hosted eCommerce websites. Confused by hosted vs self-hosted? It is very subtle, so it’s easy to get confused. Let’s explore the difference between hosted and self-hosted eCommerce sites so you can find the best option – and value – for your store.

What’s the Difference Between Hosted and Self-Hosted eCommerce Sites?

All eCommerce hosting may look the same, but there is a subtle yet significant distinction. There are two key differences between hosted and self-hosted eCommerce platforms.

First is the level of control you have over your website. With hosted eCommerce sites, you can change colors, layouts, and maybe even your theme, but not much else.

If you choose a self-hosted eCommerce store, you can control every aspect of how your store looks. But there can be some technical considerations to contend with. More on that later.

Second, is who manages the hosting infrastructure. Hosted eCommerce sites take care of all the server maintenance and upkeep, claiming they are safer and more reliable than self-hosted websites. To some degree, they have a point.

With self-hosted platforms, you might need to manage your own hosting environment. But, in most cases, your hosting provider will handle that for you. So, this really isn’t as big of an upsell as hosted platforms make it out to be.

What Is a Hosted eCommerce Website?

A hosted eCommerce website refers to an online store that’s built and managed using a platform hosted by a third-party provider. They offer a streamlined platform that allows you to quickly create, launch, and manage an eCommerce site.

These platforms provide an all-in-one e-commerce solution that includes hosting, a shopping cart function, and technical support.

Your monthly hosting cost usually depends on the size of your store or the number of products you sell. You also typically pay per sale on top of the monthly hosting fees. Most platforms offer discounts if you pay for several months in advance.

With a hosted solution, everything from web hosting to security, updates, and server maintenance is handled for you. These platforms provide users with a suite of tools to design and manage an web store easily, often with drag-and-drop builders, themes, and integrated payment gateways.

All you need to do is add your store name, logo, and products. While there are some options to customize your store, these hosted eCommerce sites can be pretty cookie-cutter. That might be fine for some stores or products, but you may find these limitations a little too constraining.

Examples of Hosted Websites for eCommerce

Here are some of the most popular websites for hosted eCommerce stores:

• Shopify – A popular, all-in-one hosted eCommerce site that allows you to easily build, manage, and scale an online store with no technical expertise required. Shopify offers a wide range of built-in features, integrations, and payment gateways. Shopify is also available as a plugin for self-hosted web stores.
• BigCommerce – A flexible hosted eCommerce website designed for growth, offering robust features for scalability, customization, and multi-channel selling. It’s a great choice if you are looking for advanced functionality without the need for extensive coding knowledge.
• Wix eCommerce – An easy-to-use website builder with integrated eCommerce capabilities, Wix eCommerce is perfect if you looking to create a simple, attractive web store with drag-and-drop customization.
• Squarespace – A visually-focused website builder with built-in eCommerce features. Consider Squarespace if you want to prioritize design and user experience. It offers a range of templates, making it a good choice for creatives and small online shops.

Advantages of Hosted eCommerce

Hosted eCommerce sites offer several advantages, the biggest one often being how easy they are to get started. Here are the pros to consider when looking at hosted web storefronts:

1. Ease of Use: Hosted platforms are designed for users with little to no technical knowledge. The setup process is usually simple and intuitive, with easy-to-use tools for creating product listings, managing inventory, processing orders, and handling payments. You don’t need to worry about configuring servers or troubleshooting hosting issues, as that’s all managed by the provider.
2. Maintenance-Free: Hosted platforms take care of all the technical maintenance, including updates, backups, and security patches. You’ll never have to worry about your website being outdated or vulnerable to security threats, as the platform’s team ensures everything runs smoothly.
3. Reliable Customer Support: Hosted platforms generally offer customer support, often available 24/7, to help you resolve any technical or platform-related issues. This can be a lifesaver if you run into trouble and need assistance quickly to avoid downtime.

Disadvantages of Hosted eCommerce

Hosted stores also have some disadvantages to consider, including higher costs and fewer options for customizing your site.

1. Limited Customization: While hosted platforms offer a variety of templates, themes, and plugins, your ability to customize the site is limited to the options they provide. If you want highly specific features or a completely unique design, you may find hosted solutions restrictive. Modifications outside of their ecosystem could also be costly or unavailable.
2. Additional Costs: Hosted eCommerce platforms usually come with a monthly or annual subscription fee. Additionally, many of these platforms charge transaction fees for each sale, which can add up, particularly for larger businesses with high sales volumes. While the upfront costs may be low, the recurring or hidden costs can add up over time. These can include the payment gateway charges, plus an upcharge for the eCommerce host. Yep, they can make extra money off of each one of your sales.
3. Vendor Lock-In: Since your website is built and hosted on the platform’s infrastructure, migrating to another provider can be difficult and time-consuming. If the platform changes its pricing or policies, you may feel stuck with limited flexibility to make a switch.

What Is a Self-Hosted eCommerce Platform?

A self-hosted eCommerce website gives you complete control over your online store. With this option, you choose your own hosting provider and install eCommerce software.

Almost all hosting providers offer one-click installation for popular storefronts like WooCommerce, Magento, or OpenCart. This makes starting your store almost as easy as a hosted option.

And some hosting providers even sell plans with eCommerce options pre-installed, making it just as simple to get started.

Depending on the hosting plan, your service provider will also handle all the maintenance.

Hosting providers usually bill monthly for your hosting service. In some cases, you can launch your store for between $10 and $20 per month before current incentives.

You also need to pay your payment gateway for each transaction, but that is a separate charge. Hosted plans usually include this in their monthly fees, so it seems like this is an additional fee.

Unlike hosted platforms, self-hosted websites allow you to manage every aspect of the website, from the software it runs on to its design and functionality.

Examples of Self-Hosted Sites for eCommerce

There are many different self-hosted platforms, but these are the most widely used:

• WooCommerce –  An open-source eCommerce plugin for WordPress, WooCommerce gives you full control over your online store’s customization and features. It’s a great option if you want a scalable and highly flexible self-hosted solution. It also easily integrates with WordPress, making it the perfect choice if you already have an existing WordPress site.
• OpenCart – A user-friendly, open-source platform that offers a cost-effective solution for small to medium-sized businesses. OpenCart provides a simple way to create a customizable web store with multiple extensions and themes.
• Adobe eCommerce (formerly Magento) – A powerful, open-source eCommerce solution geared towards medium to large businesses. Magento offers extensive customization and scalability, making it suitable if you want to get started fast, but scale up to a complex, feature-rich web store.
• PrestaShop – An open-source eCommerce storefront known for its flexibility and scalability, PrestaShop is designed for merchants who want to customize every aspect of their online shop while managing a variety of features, including inventory and shipping.
• AbanteCart – An open-source eCommerce solution focused on ease of use and performance. AbanteCart is ideal for small to medium businesses looking for a simple yet flexible platform that offers built-in features for selling products online.

Advantages of Self-Hosted eCommerce Solutions

From lower costs to better customization, there are several reasons to consider a self-hosted eCommerce store.

1. Full Control and Customization: With a self-hosted solution, you have complete control over every aspect of your store. You’re not limited by platform-imposed restrictions, so you can customize your site to suit your specific needs. You can add any third-party tools, features, or plugins you need to enhance functionality, and you have the ability to modify your site’s code directly.
2. No Platform Restrictions: Since you’re not tied to a particular platform, you’re free to use any software, framework, or tools you prefer. This is particularly beneficial if you want to integrate custom solutions, design elements, or specific marketing tools that aren’t available on hosted platforms.
3. Lower Long-Term Costs: While there are upfront costs associated with hosting, domain registration, and possibly web development, there are fewer ongoing fees compared to hosted solutions. You don’t have to worry about platform subscription costs or transaction fees, which can make self-hosting more cost-effective over time, especially for larger businesses.

Disadvantages of Self-Hosted eCommerce

As with the hosted options, there are some cons to consider with self-hosted eCommerce stores. That said, nearly all of these disadvantages are less troublesome than you might think.

1. Somewhat Harder to Setup: Building a self-hosted website takes more time than a hosted platform. From choosing a hosting provider to setting up the software, configuring security, and maintaining performance, self-hosting is more complex and time-consuming. It’s important to weigh this investment in time against the benefits of greater control. However, most hosting companies streamline this process for you with one-click setups and easy-to-use site builder tools. Unless you want to make to completely custom site, setup really only takes one or two more steps.
2. Possibility for Maintenance Requirements: While hosted platforms handle updates, backups, and security automatically, you may need to manage some of those responsibilities with a self-hosted website. Typically, your hosting provider handles all of the server maintenance, including security. Whereas, you need to keep your eCommerce software, plugins, and themes up-to-date. Most of the time, that is as simple as hitting the update button.
3. Some Technical Knowledge Required: Managing a self-hosted eCommerce site also may require some technical skills. But it comes down to your needs. If you want to develop custom features, you will need to understand servers and have some coding skills. However, the standard modules are just as easy to use as they are on the hosted sites. If you do have an issue, most hosting companies offer 24/7/365 support to help out.

Self-Hosted vs Hosted eCommerce Hosting: Choosing the Right One for Your Needs

Still not sure whether you need self-hosted or hosted eCommerce hosting? Both are reliable hosting options to sell items online or start a web store.

Here are some last-minute considerations to help you choose before starting your eCommerce business.

• Hosted: Hosted eCommerce sites are often marketed as the fast, low-cost way to create a web store. And they may have a point. But, they can come with some major limitations and potentially hidden fees.
• Self-Hosted: Self-hosted eCommerce websites are usually easier to set up than they seem but can be overwhelming for some. However, they come with some significant advances like lower overall costs and more flexibility.

So, which is the best option? Well, it really comes down to your needs. If you have one or two custom items you want to sell right now, a hosted web store might be the most cost-effective way to get started.

But if you know you plan to offer more products or grow your business in the future, a self-hosted website could be the more reliable, less expensive option.

In most cases, they both include a range of features like:

• Easy site setup
• User-friendly interface
• Content management system
• SEO tools
• Social media marketing plugins

Hosted plans also offer features like:

• Streamlined sign-up to get started super fast
• Simple store templates for quick store launches

While self-hosted plans include additional features like:

• More options to customize your site layout
• More control over your product listings
• Choice of integrated payment systems

With A2 Hosting’s eCommerce Hosting options, you can start your web store in just minutes. After choosing the right hosting plan, checkout takes less than five minutes.

Then log into your hosting account and choose your eCommerce platform. With our one-click install feature, you are ready to go in seconds. Add your store name, create your products, and start selling!

Our premium Web Hosting starts as low as $1.95 per month. Upgrade to Turbo Hosting for up to 20X faster page load speeds or choose WooCommerce Hosting, built specifically for WordPress.

No matter which plan you choose, you always get our ultra-reliable 99.9% uptime and our risk-free money back guarantee. Plus, if you have any issues, our Guru Crew is available 24/7/365 by phone, chat, ticking system, and email to help!

Hero image by Negative Space.