Difference Between eCommerce and SaaS: Key Distinctions

25 November 2023 - E-Commerce

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Difference Between eCommerce and SaaS: Key Distinctions

eCommerce and Software as a Service (SaaS) are two distinct concepts that have transformed the way businesses operate in the digital age¹ ². While they may seem similar at first glance, they serve different purposes and offer unique advantages. Here’s a closer look at the key distinctions between eCommerce and SaaS.

eCommerce

eCommerce, or electronic commerce, refers to the practice of selling goods or services online¹ ². This includes the buying and selling of a broad variety of products and services³. It caters to all the different industries that exist, ranging from digital, like ebooks, music, gaming, etc. to clothing or accessories and even contracting services, and many more³.

SaaS

SaaS, which stands for Software as a Service, refers to a software distribution model in which users pay a subscription fee to access software over the internet¹ ². The software company retains ownership of the source code and responsibility for platform security and maintenance².

Key Differences

The main difference between SaaS and eCommerce is that SaaS companies provide software as a service, while eCommerce companies sell products or services online¹. SaaS is a delivery model that provides a software license to users to gain accessibility to the platform through the internet¹. eCommerce SaaS solutions are usually subscription-based, meaning customers pay a monthly or yearly fee to access the software¹.

Examples of SaaS eCommerce Platforms

Sellozo: Sellozo, a standout in the world of SaaS eCommerce, offers an AI-driven automation platform and fully managed services with transparent flat-fee pricing⁴.
BigCommerce: BigCommerce is another popular SaaS eCommerce platform that offers a range of features to help businesses build and manage their online stores⁴.
Trellis: Trellis is a SaaS tool that offers automated order processing⁴.
Shopify: Shopify is one of the most comprehensive eCommerce solutions in a multi-tenant SaaS architecture⁴.
WooCommerce: WooCommerce is a SaaS eCommerce platform that allows businesses to sell online and offer curbside pickup and local delivery⁴.

Conclusion

In conclusion, while both eCommerce and SaaS have revolutionized the way businesses operate, they serve different purposes¹ ². eCommerce involves the online buying and selling of goods and services, while SaaS provides software services over the internet¹ ². Understanding the difference between these two concepts can help businesses choose the right solutions for their specific needs¹ ².