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SaaS vs Self-Hosted vs Custom Development: Which Is Right for Your Online Store?

  • Admin
  • Jun 16
  • 4 min read

Updated: Jun 24

Starting an online store in 2025 is easier than ever, but choosing how to build it can feel overwhelming. There are three popular ways to set up an eCommerce store: SaaS platforms, self-hosted solutions, and custom development. Each comes with its own costs, benefits, and challenges.

In this guide, we’ll explain each option in simple terms to help you decide what works best for your business.

What Are Your Options for Building an Online Store?

There are 3 ways to create an online store efficiently in 2025. You can choose Saas solution, self hosted solution and custom development. Each approach has its own strengths, depending on your budget, timeline, and growth plans.

What is the Saas Solution?

SaaS stands for Software-as-a-Service. These are ready-made solutions where everything is taken care of for you. You just pay a fee on a monthly and annually basis and start selling online. Shopify is a popular name in the Saas industry.

What is a Self-Hosted Solution?

With a self-hosted solution, you get more control over your online store. You just buy a software and host its own preferable hosting provider. These solutions are mostly customizable so you can customize the store as much as you want. Tribe is the best example of a self-hosted solution. It’s a fully customizable self-hosted eCommerce platform designed to build feature-rich online stores for startups, and entrepreneurs.

What is Custom eCommerce Development?

As the name defines, to build the store from scratch based on your specific business needs. It gives you complete control over design, functionality, and future updates. This approach is ideal for businesses with unique workflows, complex product requirements, or long-term growth plans that off-the-shelf platforms can't support.

A Quick Comparison of Self-hosted vs Saas vs Custom development

To help you make the right decision for setting up your online store, here’s a quick side-by-side comparison of all three approaches.

Feature

SaaS

Self-hosted

Custom Development

Cost

Monthly fee

One-time fee

High upfront cost

Time to Launch

1–4 days

2–4 days 

3-6 months

Design Flexibility

Limited

High

Complete freedom

Growth Potential

Limited

Scalable

Fully scalable

Who Owns It?

The platform

You

You

Data Ownership

No

Full control

Full control

Best For

New/Small businesses

New/Startups/Growing businesses

Large/Complex brands

Pros and cons of each approach 

Before making a decision, it’s helpful to weigh the strengths and limitations of each platform. Below are the key pros and cons to help you understand which model fits your business needs.

Pros of Saas Solutions

  • Easy to use

  • Launch your store quickly

  • No need to worry about hosting

  • Pay on monthly basis

Cons of Saas Solutions

  • No control

  • Limited features

  • Monthly fees make it costly for long run

  • Transaction fees

  • No source code access

Pros of Self-Hosted eCommerce Platforms

  • Full control over features and design

  • You own everything

  • Scales easily as you grow

  • One time fee

  • No hidden charges

  • Get full customer support

  • Full customizable

  • Scalable

Cos of Self-Hosted eCommerce Platforms

  • Needs a little bit of tech knowledge in some cases

  • Hosting cost

  • Setup take 5-6 days

Pros of Custom eCommerce Development

  • Completely tailored to your needs

  • Unique design and features

  • Gives your brand an edge

  • Fully customizable

  • 100% ownership

Cons of Custom eCommerce Development

  • Expensive and time-consuming

  • You need a skilled development team

  • Require long time to set up

  • Need your own server

Cost Breakdown for Each Option

Let’s take a closer look at the costs involved in each approach, so you can choose the one that fits your budget and business goals.

Platform Type

Startup Cost

Ongoing Costs (Per Year)

SaaS

$39 – $399/month

$468 – $4,788

Self-Hosted

$1,000 – $20,000+

-

Custom Development

$10,000 – $100,000+

-

Note: Final cost depends on the features, design, and scale of your store.

How to Choose What’s Right for You

  • Pick SaaS if you want to start quickly and have no long term goal.

  • Pick Self-Hosted if you want to grow your store over time and need more control.

  • Pick Custom Development if you need something truly unique and have the resources for it.

A self-hosted eCommerce store builder meet around 90% of eCommerce business needs. It’s a cost-effective option that gives full control over the online store.

Why Tribe is a Smart Way to Build an Online store in 2025

Tribe is a self-hosted eCommerce platform that combines flexibility, full ownership, and cost-effectiveness all in one solution. With a one-time payment, you own your store completely and can scale it at your own pace. Designed as a white-label eCommerce store builder, Tribe helps entrepreneurs and startups launch their online stores quickly and without technical hassle.

Built by one of India’s leading software development companies FATbit Technologies, Tribe is the result of extensive research and real business insights. It's especially ideal for offline businesses looking to go digital without spending a lot in development. Plus, Tribe comes with its own mobile apps, allowing you to offer a smooth shopping experience across devices right from day one.


Why Choose Tribe?

  • One-time payment, no monthly fees

  • Total control and ownership

  • Built for speed, security, and scalability

  • Helpful support

  • No transaction fee or any hidden charges

  • 100% white label solution

  • Readymade mobile apps

  • Drag & drop CMS

Perfect for startups, small to large-sized businesses that want to grow without breaking the bank.

Final Thoughts

Choosing between SaaS, self-hosted, or custom-built stores depends on your goals, budget, and timeline. SaaS is great for quick launches. Custom development gives you full freedom. Self-hosted platforms like Tribe offer the best of both worlds.

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