Hosted vs self-hosted webshop: what is the difference?

When choosing a webshop platform, the fundamental question is: hosted or self-hosted? This article explains the differences and helps you make the right choice.

What is hosted (SaaS)?

With a hosted solution, your webshop runs on the provider's servers. You "rent" the platform.

Examples:

• Shopify
• Lightspeed
• BigCommerce
• Wix

Characteristics:

• Monthly subscription
• Hosting included
• Updates automatic
• Provider support

What is self-hosted?

With self-hosted, you install the software on your own server (or rented hosting). You "own" the platform.

Examples:

• WooCommerce
• Magento Open Source
• PrestaShop
• OpenCart

Characteristics:

• One-time purchase (often free)
• Arrange hosting yourself
• Perform updates yourself
• Community support

Comparison on main points

Aspect	Hosted	Self-hosted
Startup costs	Low	Variable
Monthly costs	Fixed	Only hosting
Technical knowledge	Not needed	Needed
Flexibility	Limited	Unlimited
Ownership	Rent	Own
Vendor lock-in	Yes	No

Hosted advantages

Convenience:

• Start immediately
• No technical knowledge needed
• Everything works out-of-the-box

Worry-free:

• Automatic updates
• Security handled
• Uptime guarantee
• Backups included

Support:

• Professional customer service
• Often 24/7 available
• Guaranteed help

Hosted disadvantages

Costs:

• Ongoing monthly fees
• Gets more expensive with growth
• Often transaction fees

Limitations:

• Less customization
• Bound to their features
• Difficult to migrate

No ownership:

• Platform can stop
• Prices can rise
• Rules can change

Self-hosted advantages

Full control:

• Any design possible
• All functionality addable
• No limitations

Ownership:

• Data is yours
• No vendor lock-in
• Free to migrate

Costs:

• No monthly license
• Only pay hosting
• Scaling is cheaper

Self-hosted disadvantages

Responsibility:

• Arrange hosting yourself
• Perform updates yourself
• Manage security yourself

Complexity:

• Technical knowledge needed
• More time investment
• Steeper learning curve

Risks:

• Solve problems yourself
• No guarantees
• Can go wrong

Cost comparison (5 years)

Hosted (Shopify example)

Year	Cost
Year 1	€948 (€79 x 12)
Year 2	€948
Year 3	€948
Year 4	€948
Year 5	€948
Total	€4,740

Self-hosted (WooCommerce example)

Year	Cost
Year 1	€600 (hosting + setup + plugins)
Year 2	€200 (hosting + updates)
Year 3	€200
Year 4	€200
Year 5	€200
Total	€1,400

Note: self-hosted can become more expensive if you hire development

When to choose hosted?

• You have no technical knowledge
• You want to start quickly
• Convenience is more important than flexibility
• You have no time for maintenance
• Budget is not a problem

When to choose self-hosted?

• You have technical knowledge (or help)
• You want full control
• You have specific requirements
• You want to minimize costs
• Data ownership is important

Hybrid options

There are also intermediate forms:

Managed WooCommerce:

• WooCommerce on managed hosting
• Best of both worlds

Enterprise SaaS:

• Shopify Plus
• BigCommerce Enterprise
• More flexibility than standard SaaS

Verdict

There is no "best" choice. It depends on:

• Your technical skills
• Your budget (short and long term)
• Your need for flexibility
• Your available time

Start with hosted if in doubt. Migrating to self-hosted can always be done later.