The Downsides to Hosting Your E-commerce Websites with Software as a Service (SaaS) Application

With many businesses moving to cloud-technology, Software as a Service (SaaS) application is becoming popular these days. In fact, many e-commerce website owners like it because it comes with a multitude of benefits, such as scalability, easy integration, cost-effective, upgradability, accessibility, and resilience. However, even with the many advantages, SaaS comes with its own set of disadvantages. That’s why online businesses haven’t jumped into the technology in droves. This column talks about the downsides to using Software as a Service model for your e-commerce platforms:

Security of Your e-commerce platforms

Security is one of the greatest challenges e-commerce website owners face today. Because e-commerce involves buying and selling products online, customers will be using different payment options, such as credit cards or PayPal to pay for their items in the shopping cart. This involves giving out their credit cards or PayPal details to the checkout personnel, who will then enter them into the system to check out their products. This can be risky if your e-commerce website is insecure. Hackers can easily harness customers’ credit card details or PayPal details and siphon money from their accounts. Entrusting your data to a third party can be dangerous. Essentially, the cloud server employee or your former employee can gain access to your data and steal customer information if you’re using a SaaS solution.

It can be daunting to transfer your e-commerce website’s data

Today, the market is littered with SaaS vendors, and it can be overwhelming to choose the most reliable. You might be unlucky to choose a SaaS solution provider and then find out that they are not offering the kind of service they promised. Or worse yet, they close down. A SaaS application may present a host of challenges when any of that happens, and you want to transfer your data, or you may find yourself spending a ton of money to transfer your data. This is why it’s prudent to go on a research spree to choose a well-known, reliable SaaS provider.

Worries about performance of your e-commerce platforms

Not many people believe that a browser-based solution that’s hosted in a data center situated in a remote location and accessed through an internet connection offers the best performance. They still believe that software operating on a local hardware offers the greatest performance. They might be right because unless a business owner using a SaaS application takes care of certain issues, including internet connectivity, their SaaS solution may not perform better than a software solution operating on a local machine.

Problems of compliance for your e-commerce websites

Compliance with the relevant government data protection requirements can be difficult if your e-commerce website data is situated in a remote provider’s data center. For starters, you’ll have to research to know which specific regulations apply to your online business. You’ll then need to ask your SaaS provider relevant questions about the regulations and put into play a solution that addresses those regulations and other business failings. This can be a challenging pursuit if you have no idea where to look.

The problems of outages for your e-commerce platforms

Although cloud service providers have laid out ambitious plans to ensure maximum uptime, disruptions are sometimes inevitable. Some causes of outages are natural, and you can do nothing about them. Some are caused by human errors, especially if the people entrusted with the software are not competent enough. Still, others are as a result of maintenance. Downtimes are inevitable, but long downtimes could be disastrous for the business. It could lead to loss of sales, and this is not good for the growth of your e-commerce store.


It’s crucial that you know the downsides to SaaS solution when looking to implement it on your e-commerce website. It will help you devise measures that will keep your online store up and running despite the downtimes. It’s a good idea not to go with SaaS solution providers that don’t have a good track record in that line of service.