Choosing Between Hosted and Open-Source Platforms in 2025

Design and marketing are the very foundation of an online store in today’s fast-moving eCommerce landscape that merchants pay their most attention to. In 2025, the choice between a hosted solution (like Shopify or BigCommerce) and an open-source platform (like WooCommerce or PrestaShop) is among the most important considerations for design and marketing matters of an eCommerce business. It carries long-term consequences for growth, performance, and profitability.

At Next-Cart, we’ve helped thousands of businesses migrate across platforms. We will guide you through the differences, pros, and trade-offs between the two options, so you can choose the best one that aligns with your business goals. Let’s get started!

Understanding the two paths – Hosted vs. open-source

Before diving into their detailed features, costs, and long-term strategies, let’s understand the fundamental differences between hosted and open-source platforms. These two paths have very different philosophies of running an online store. The choice between them will shape how you build, manage, and scale your business.

Hosted platforms like Shopify, BigCommerce, or Wix eCommerce provide an all-in-one solution. Your store runs on a server where the platform provider handles hosting, security, and updates in the background. This approach will reduce technical headaches and allow merchants to focus on marketing and sales. Also, hosted platforms tend to offer polished dashboards, seamless app integrations, and guaranteed uptime. These features are essential for non-technical teams and businesses scaling quickly.

Open-source platforms such as WooCommerce, PrestaShop, or Magento Open Source offer a very different approach. Instead of renting space on a hosted platform’s infrastructure, you own and control your store ecosystem. You can choose your own hosting, configure the backend, and customize every part of the system. It gives you massive flexibility in arranging and managing your store. This option will be appealing to businesses that need unique features, advanced workflows, or complete data ownership. At the same time, these businesses will take more responsibility, including security patches, backups, and optimization.

In 2025, the gap between these two paths has even widened further as hosted platforms are becoming smarter with built-in AI tools, global payments, and round-the-clock support, while open-source options are expanding their ecosystems with endless customization and control.

The question is not about which one is better. The key is about which one aligns with your business’s current needs, technical resources, and long-term vision. And understanding these two models is the first step toward making the decision.

Hosted platforms – pros, cons, and best use cases

Hosted eCommerce platforms are the go-to choice for merchants who look for simplicity, speed, and peace of mind. In a hosted setup, the platform provider takes care of everything from hosting, server maintenance, security, to software updates. Therefore, business owners can work on a ready-to-use foundation for selling online.

Key advantages of hosted platforms

One of the biggest draws of hosted platforms seems to be their ease of use. You can launch a store within hours without a single line of code. These platforms also come with built-in tools, such as AI-powered SEO suggestions, email marketing automations, and omnichannel integrations with marketplaces like Amazon and social commerce channels, making it very straightforward to run a store.

On the infrastructure side, merchants benefit from enterprise-grade uptime (99.9% or higher). Also, resources like global CDN coverage and 24/7 support are available without costly charges.

Limitations of hosted platforms to watch out for

Consider the possible trade-offs of hosted platforms before you make a decision. Customization is limited by the platform’s core framework. If a feature is unavailable through an app or plugin of a hosted platform, it is difficult or even impossible to implement it.

Another concern that merchants have about hosted platforms is data control. As your store is tied to the platform provider’s servers, it can be challenging to make a migration or deep customization in the long run.

When your business grows, pricing can escalate because transaction fees, app subscriptions, and premium themes stack up quickly.

Who should choose hosted?

Hosted solutions are ideal for merchants who focus on sales and marketing rather than technology. They will suit startups, small businesses, and fast-scaling brands. These kinds of businesses prioritize reliability and user-friendly management over deep customization.

For non-technical teams, a hosted platform will handle operational complexities, while the business concentrates on growth.

Larger enterprises that prioritize speed to market, omnichannel reach, and managed infrastructure over full backend control also opt for hosted systems.

In short, hosted platforms can provide speed, security, and scalability, but limit flexibility and ownership. They’re best for those who want to move fast and let the platform handle the technical details.

Open-source platforms – pros, cons, and best use cases

Open-source eCommerce platforms have become a powerful option for businesses in need of full control over their store. Unlike hosted platforms, open-source solutions are self-managed as you choose the hosting provider, configure the infrastructure, and decide how every detail of the store. They allow deep customization, but you take more responsibility accordingly.

Key advantages of open-source platforms

Open-source platforms offer unlimited flexibility. Business owners can modify checkout flows, build custom product structures, and integrate unique backend workflows to match their exact business needs. They require no vendor-imposed restrictions. You’re free to create a truly tailored shopping experience based on your needs.

Open-source also gives you complete ownership of your data and environment. This feature is especially important when there is a growing priority in 2025 with stricter global data privacy regulations.

Another advantage is cost efficiency at the entry level. If you use only basic hosting and plugins, it can be cheaper than monthly subscriptions. It is especially beneficial for businesses with smaller catalogs or with developer expertise in-house.

Limitations of open-source platforms to watch out for

The freedom of open-source comes with complexity, as store owners are responsible for managing hosting, SSL certificates, backups, and security patches.

To optimize performance and ensure your site runs smoothly even under heavy traffic, it depends on how well the infrastructure is configured. In addition, scaling often requires developer support that comes with costs and dependencies.

For non-technical teams, these conditions seem to be overwhelming and not as appealing as the plug-and-play nature of hosted platforms.

Who should choose open-source?

Open-source is best suited for merchants who need custom workflows, complex product catalogs, or unique business models. These features go beyond the constraints of hosted platforms.

Obviously, enterprises with in-house technical teams thrive here. So do mid-sized businesses that can access reliable developers.

Open-source platforms are the right choice for companies that prioritize data sovereignty, long-term flexibility, and full control over their technology stack.

In short, open-source platforms deliver unmatched customization and ownership, but demand greater technical commitment. They’re best for merchants who consider their store not just as a sales channel, but as an adaptable business engine.

Hosted vs. open-source – Side-by-side comparison

After understanding the strengths of hosted and open-source platforms individually, we should weigh them side by side to realize their detailed differences. Let’s evaluate the key factors in their comparison before coming to the conclusion of which path fits your business best!

Costs

At first glance, hosted platforms appear more expensive than open-source counterparts because of their monthly subscription fees and add-on costs for apps, premium themes, or transaction fees. However, hosted platforms save money for users on infrastructure, updates, and developer hours.

Open-source platforms often have a lower entry cost, as you only pay for hosting, plugins, and development. Yet, as your business scales, expenses for security, maintenance, and customization can add up.

Consider the total cost of ownership (TCO) that is dependent on your technical resources.

Scalability

Hosted platforms scale automatically with infrastructure that is designed to handle surges in traffic, seasonal peaks, and international sales.

By contrast, open-source platforms require careful planning to scale. Businesses must optimize servers, caching, and integrations. They can be flexible with how scaling is managed, but it also requires more technical backbone.

Security and compliance

Security is a major selling point for hosted platforms as providers handle SSL certificates, firewalls, PCI compliance, and regular patches. For businesses in highly regulated industries, hosted platforms can reduce compliance risk.

In open-source systems, the merchant is responsible for applying updates, monitoring vulnerabilities, and ensuring compliance with global standards like GDPR or CCPA. Therefore, open-source offers better data sovereignty for companies that must control their hosting environment.

Customization

This is where open-source shines. Store owners of open-source platforms can manipulate code, build bespoke integrations, and tailor every aspect of the store.

Though hosted platforms offer app marketplaces and APIs, they still come with limits in customization. Same as innovation, hosted platforms rarely match the open-ended creativity of open-source.

Support

Hosted platforms often include 24/7 customer support, detailed documentation, and large app ecosystems.

With open-source, support usually comes from developer communities, forums, or third-party agencies. While these resources are extensive, they lack the responsiveness of a support team of hosted providers.

Key factors to consider before choosing

Besides technical factors, selecting between hosted and open-source platforms will influence your growth, costs, and operations for years to come. Before committing, here are the most important factors to evaluate.

• Budget and ROI: Stop looking beyond upfront expenses and consider the total cost of ownership (TCO) over several years. On the one hand, hosted platforms have predictable monthly fees, but you have to pay more for adding apps or scaling revenue. Open-source may start cheaper, but it will require investment in hosting, maintenance, and developer support.
• Technical resources: Hosted platforms are designed for teams without technical expertise, while open-source is ideal if you have or are willing to hire professionals to manage customization and infrastructure. Therefore, ask yourself whether you have in-house developers or reliable tech partners.
• Industry model: Different industries have different needs. For example, a fashion brand might benefit from hosted platforms that offer built-in marketing and social integrations. On the other hand, a B2B wholesaler may need the complex pricing structures of open-source platforms.
• Long-term scalability: Where is your business heading? If you run for rapid scaling, multi-channel sales, and global reach, hosted solutions are a good path. However, if you need highly customized workflows, proprietary features, or strict data control, you should go for an open-source platform that offers you more flexibility in the long run.

Making the right choice for your business in 2025

The decision of choosing between hosted and open-source platforms comes down to selecting the solution that aligns with your business priorities, resources, and growth vision. There is no better choice, just the one that fits your unique business circumstances.

Start by asking the right questions:

• What is your budget, and how will it scale as revenue grows?
• Do you have technical expertise in-house, or will you rely on outside support?
• How important is customization to your business model?
• Where do you envision your store in three to five years?

If you want to launch quickly, scale fast, and reduce technical complexity, a hosted platform may be the better path. You can focus on marketing, sales, and customer experience, as the platform provider manages the backend for you.

If complete control, advanced workflows, or unique features are what you are looking for in your business, choose an open-source platform that will give you the flexibility to innovate on your goals. Taking more responsibility, you can obtain greater ownership and adaptability.

Meet Next-Cart – your migration partner

When you choose the right platform, it is only half the process. Let Next-Cart get you there smoothly. We specialize in helping merchants migrate their online stores between platforms, whether from hosted to open-source or vice versa.

We have over a decade of experience and thousands of successful migrations for businesses from different industries. Our team understands the unique challenges each business faces. We take a vendor-neutral approach, in which we don’t push you toward one platform or another, but we help you evaluate your needs, plan carefully, and migrate to the best solution for your long-term goals.

In addition, our process minimizes downtime and risk. Every detail, from data mapping and order history to product catalogs, customer records, and SEO URLs, is handled with precision. We also provide support after migration to ensure your store runs seamlessly without any technical hurdles.

Merchant customers trust Next-Cart not just for our expertise, but for our commitment to making platform migration stress-free.

In Conclusion

The choice between hosted and open-source platforms is not about which option is better, but it is about which aligns with your vision, resources, and growth strategy. Hosted solutions provide speed and simplicity, while open-source is more advantageous with unmatched control and flexibility.

Making the right choice will ensure you have a robust foundation for your long-term growth.

If you’re considering a migration, Next-Cart is here to help you migrate with confidence and set your store on the path to lasting success.