The honest answer: it depends. But "it depends" doesn't help, so let's go through the criteria that actually drive the decision.
Where hosted packages shine
- Speed: You can start selling within days.
- Initial cost: A monthly subscription with no large upfront investment.
- Maintenance: Servers, security and updates are not your problem.
For the first 6–12 months while a new brand tests the market, a hosted package is usually the right choice.
When do you hit the limits?
- Commissions and plan fees become a meaningful cost line as revenue grows.
- Flows you can't customise: B2B price lists, dealer approval, custom payment plans fall outside the package.
- Integration: ERP, accounting, warehouse management and custom shipping — "no plugin, no way".
- Data ownership: Your customer and order data lives under a third party's rules.
- Performance: As traffic grows you have no control over the infrastructure.
When custom software makes sense
- When monthly revenue makes package commissions more expensive than amortising custom development,
- When your business model differs from standard B2C (B2B, dealers, subscriptions, made-to-order),
- When deep integration with existing enterprise systems is required,
- When the store will share its backend with a mobile app and other channels.
A rough calculation
For a simple comparison, look at three-year total cost:
Hosted package: (monthly fee × 36) + (revenue × commission × 36) + add-ons
Custom software: development + (monthly hosting + maintenance) × 36
For most businesses the break-even sits around a mid-five-figure monthly revenue in EUR terms; a specialised business model can pull that threshold down.
Migration plan
The most critical part of moving to custom software is data and URL migration. Products, categories, customers and order history must move without loss; old product URLs must be 301-redirected to the new structure. Migrations done without this plan seriously hurt search traffic.
Conclusion
A hosted package is a starting tool; custom software is a growth investment. The right question isn't "which is better" but "which one, at which stage". If you'd like to evaluate your own situation, let's talk.