SaaS (software as a service) - what is it, how does it work and what features does it have?
Online sales have long ceased to be a mere add-on for traditional stores - today it is the main channel that determines the success of many companies. In a world where customers expect personalization, instant service and innovative solutions, entrepreneurs must quickly adapt to new market demands.
This is where the SaaS (Software as a Service) model comes to the rescue, revolutionizing the approach to online store management. With its flexibility, easy implementation and predictable costs, SaaS is not just a technology - it's a strategy for e-commerce growth.
Table of Contents:
What is SaaS (Software as a Service) in e-commerce?
SaaS, or software as a service, is an application delivery model in which users access software over the Internet without having to install it on their own devices. In the context of e-commerce, SaaS enables companies to easily and quickly launch online stores and manage online sales.
SaaS platforms are hosted by third-party providers who take care of the technology infrastructure, updates and system security. This allows entrepreneurs to focus on sales and customer service, instead of complex technological processes.
According to data from SaaS Academy, by the end of 2024 as many as 99% of companies will be using at least one SaaS solution. This shows how common this approach is becoming in business.
How does the SaaS model work in e-commerce?
The SaaS model is based on a subscription. Customers pay a fixed fee (monthly or yearly), which gives them access to advanced software and all its features. In return, they receive a fully functional tool for running an online business.
The SaaS provider is responsible for the entire infrastructure - from servers to upgrades to data backups. As a result, the user does not have to worry about the technical background. The process of implementing a SaaS platform in an online store is extremely simple: all you have to do (usually) is register an account, configure the look of the site and add products. The whole thing takes from a few hours to a few days, depending on the complexity of the store.
An example of how SaaS works is when a store decides to integrate with marketplaces such as Allegro or Amazon. SaaS platforms automatically synchronize products, inventory and orders, saving time and eliminating errors.
Benefits of using SaaS for online stores
Implementing SaaS brings a number of tangible benefits to companies. First and foremost, due to its flexibility, SaaS allows businesses to adapt functions and resources to changing needs.
Another major advantage is the ability to get off the ground quickly. Traditional software often requires months of planning, implementation and testing. With SaaS, this time is significantly reduced. With ready-made templates and tools, online stores can be launched almost immediately.
Lower initial costs also speak in favor of this solution. In traditional models, entrepreneurs must invest in software licenses and IT infrastructure, which can generate costs in the tens or even hundreds of thousands. SaaS eliminates these expenses, enabling business growth with minimal investment.
In addition, according to SaaS Academy, the average customer churn rate for SaaS companies is around 5%. A low churn rate indicates a high level of customer satisfaction and business stability.
Key features of SaaS software in e-commerce
SaaS software for e-commerce offers a wide range of features that support every stage of sales. One of the most important functionalities is product catalog management. Entrepreneurs can easily add new products, edit their descriptions and manage prices.
Integration with popular marketplaces and payment systems is another key element. This allows stores to expand their presence on new sales channels and offer customers convenient payment methods such as BLIK, PayPal or credit cards.
Sales analytics and reporting are tools that provide businesses with valuable information about their performance. This data helps optimize marketing campaigns, improve product offerings and increase the efficiency of business operations.
Personalizing the shopping experience is also invaluable in the world of e-commerce. SaaS makes it possible to implement product recommendation features, customer segmentation and marketing communication automation to increase customer engagement and conversion.
Examples of popular SaaS solutions for e-commerce.
There are many SaaS platforms available on the market to support online sales. One of the most recognizable is Shopify, a global platform that allows you to quickly launch an online store. It offers a wide range of integrations, an intuitive user interface and access to hundreds of applications to support sales, marketing or logistics.
BigCommerce is another example that stands out for its support of large enterprises. The platform offers advanced features such as B2B wholesale management, flexible API integrations and the ability to support multiple stores from a single dashboard.
There are SaaS solutions available on the Polish market tailored to the specifics of local businesses. An example is Sellina, an open-SaaS e-commerce platform that combines the advantages of open source and SaaS systems.
With its flexibility and customizability, Sellina enables companies to quickly launch B2B and B2C online sales. The platform also offers freedom of contractor selection and scalability, which is important for rapidly growing businesses.
SaaS vs. traditional e-commerce software: Key differences.
The choice between SaaS and traditional e-commerce software depends on the company's specifics, budget and growth plans. However, SaaS stands out with several key advantages:
Costs: SaaS operates on a subscription model, which means low upfront costs. Traditional software, on the other hand, requires a one-time license fee and infrastructure investment.
Scalability: SaaS makes it easy to customize functionality and resources based on business needs, which is especially useful during busy periods such as sales.
Maintenance: In SaaS, all upgrades, security and infrastructure maintenance are the responsibility of the vendor, while in the traditional model it is the company that has to take care of it.
According to the SaaS Academy report, in 2022, companies using SaaS saved an average of 78% in IT infrastructure costs compared to traditional solutions.
Security and data management in SaaS model for e-commerce
Security of customer data and transactions is a priority for any online store. SaaS platforms use advanced encryption technologies (e.g., SSL) and threat detection systems to protect data from cyber attacks.
Additionally, SaaS providers ensure compliance with regulations such as RODO and CCPA. Regular backups and server redundancy are standard practices that minimize the risk of data loss.
According to SaaS Academy data, 85% of companies believe that the security offered by SaaS outperforms their own on-premise systems, confirming a high level of confidence in these solutions.
SaaS: For many, it's the best E-commerce solution.
SaaS is changing the way businesses do business online, offering entrepreneurs flexibility, ease of use and cost predictability. With platforms like Sellina, online stores can quickly adapt to the demands of today's e-commerce market, increasing their competitiveness and sales effectiveness.
If you are planning to develop your online store, consider implementing a SaaS solution. Invest in the future of your business - bet on innovation, scalability and professional e-commerce consulting.