SAAS or Software As A Service platforms like MartJack, Shopify, etc. provide a quicker and far less expensive way to test your concept. However, many of the SAAS platforms may not be appropriate as your business scales up. The most common reason for not using SAAS platforms is because by its very nature platforms are ‘generic’ and not ‘custom designed’ for your needs. I.e. you may have to live with some of the limitations, or forgo some of the features that you needed.
As always, your decision should be a well-thought out with pros and cons debated thoroughly, and the final decision should be taken purely on the business needs.
In the 2011 and 2012 time period, we have seen a number of e-commerce players using the SAAS platform to launch quickly, get traction, build the foundations of their business – indlcuing customers, and then raise the next round of funding to build a more robust and customized product.
This startegy also allows the startup to test the concept, understand better their tech needs as well as gather the resources to build the most appropriate tech platform. Of course, it allows them to launch faster.
However, if the tech platform is going to be the core of your business, obviously a SAAS solution may not work.