Starting an eCommerce business often involves making critical decisions about the tools and platforms you’ll use to build and manage your online store. One of the most important decisions is whether to go with open-source or closed-source software. The decision can be difficult because both options come with their own set of advantages and challenges, making it hard to determine the best choice for your specific business needs.

Each platform, open-source vs closed-source, has its own unique characteristics, such as flexibility, cost structure, support, and functionality. These factors can significantly impact how you set up and scale your business. While open-source solutions offer more freedom for customization and lower initial costs, closed-source options typically provide more polished, user-friendly experiences with dedicated support and reliable updates.

In this article, we will dive deeper into the key differences between open-source and closed-source platforms. But first, let’s start by defining what open-source and closed-source platforms are, and how they operate in the world of eCommerce.

What is an Open Source Platform?

Open source isn’t a new concept, even though it’s become a hot topic recently. In fact, much of the internet as we know it today was built using open source technology.

At its core, open source refers to software whose source code is made freely available for anyone to view, use, or modify.

Source code is the underlying code written by developers that powers software applications. It’s the human-readable instructions that tell a computer how to perform specific tasks. By providing access to this code, developers allow others to understand, modify, and improve the software.

This open access encourages collaboration among developers and users, resulting in constant updates and improvements to the platform.

Because open-source software is developed through public collaboration, it often evolves rapidly, with new features and enhancements being added regularly by a global community of contributors.

Some well-known examples of open-source software include the Firefox web browser, Thunderbird email client, the PHP scripting language, the Python programming language, and the Apache HTTP web server.

Read: Best Open Source eCommerce Platforms to Start Online Business in 2025

Advantages of an Open Source Platform

As more businesses discover the considerable advantages of open source solutions hold over their proprietary counterparts, and as the enterprise mentality around open source continues to shift.

Here are some of the reasons to choose an open-source platform-

1. Lower Costs

The most obvious advantage of open-source software is that it’s generally free to download. While there may be ongoing costs for things like storage or computing power, even paid open-source options are often much cheaper than their proprietary counterparts. In contrast, proprietary vendors charge not only for the initial product but also for costly upgrades, support services, and lock-in fees.

2. No Vendor Lock-in

Proprietary software is created based on the specific needs of the vendor, which can lead to risks such as reduced support or the discontinuation of a product when it no longer generates enough income. Open-source software eliminates these concerns by removing financial motivations. It also helps users avoid monopoly pricing and incompatibilities by supporting interoperability with other systems.

3. Extensive Customization

Open-source software allows for a high degree of customization since users have access to the source code. Developers can tailor the software to meet specific needs, and customization can often be done with limited resources.

If needed, support is available from the community, the original developers, or commercial experts.

4. A Culture of Collaboration

Open-source developers are motivated by passion for their work and feedback from their peers, not just financial gains. This culture of collaboration results in higher-quality products. Open-source communities also foster a spirit of mutual support, with many users contributing by fixing bugs and offering solutions.

5. Higher Quality Software

Because open-source software is developed by a diverse group of passionate and skilled developers, it often results in a superior product. This standard is maintained throughout the software’s life as developers continue to improve and refine it based on user feedback and ongoing needs.

6. Greater Security

Open-source software is transparent, meaning vulnerabilities are visible to everyone. This openness allows a larger community of developers to identify and fix bugs and security risks quickly.

Additionally, the smaller size of the open-source community makes it less likely to be targeted by widespread attacks compared to proprietary systems.

7. Easier to Audit

With open-source software, users have access to the source code, which means they can audit the software for security and performance. This transparency allows users to identify issues and make necessary changes without relying on external vendors.

8. Regular Updates

Unlike proprietary software, which may require customers to purchase new versions for updates, open-source software is regularly updated by the community. Users can choose when to update, ensuring that they always have access to the latest features or security fixes, without being bound by the vendor’s schedule or pricing.

9. License Management

Proprietary software often comes with restrictive licenses that limit the number of installations or users. Open-source software, however, has no such limitations. It can be freely used across multiple locations, on unlimited accounts, and for as long as needed, without the constraints that come with proprietary licenses.

10. Quick Fixes

Open-source software bugs are typically identified and resolved quickly by the community. Because the source code is open and accessible, fixes can be implemented and released rapidly, often followed by updated versions that improve the software’s performance or address new issues.

Example of Open Source Software

Some of the most popular open-source software include:

1. Firefox – A widely-used, open-source web browser known for its speed, security, and privacy features.
2. Thunderbird – An email client developed by Mozilla, offering a rich set of features and flexibility for managing emails.
3. Apache HTTP Server – One of the most popular open-source web servers that power a large portion of the internet.
4. WordPress – A content management system (CMS) used to build websites and blogs, known for its ease of use and extensibility.
5. Linux – An open-source operating system used by millions worldwide, known for its stability, security, and flexibility.
6. GIMP – A powerful image editing software, often seen as a free alternative to Adobe Photoshop.
7. VLC Media Player – A versatile, open-source media player that can handle virtually any type of media file.
8. Python – A high-level programming language used for web development, data analysis, and automation.
9. MySQL – An open-source relational database management system used by many websites and applications.
10. Blender – A free and open-source 3D creation suite used for modeling, animation, rendering, and video editing.

These open-source tools are widely adopted across various industries, providing powerful features without the high cost associated with proprietary software.

What is Closed-Source Software?

With closed-source software (also known as proprietary software), the source code is kept private and is not available for the public to view, modify, or distribute. The source code is considered a trade secret and is protected by the organization to maintain a competitive advantage. As a result, closed-source software often comes with restrictions on how it can be used or modified, limiting the ability of users to customize or adapt the software to their needs.

Examples of proprietary software include Microsoft Windows, Adobe Photoshop, iTunes, Skype, macOS (formerly Mac OS X), Google Earth, and Oracle’s version of Java, among others.

When deciding between open-source and closed-source software, there are several key differences to consider. Open-source platforms offer more flexibility and customization, while closed-source software often provides better support and a more polished user experience. Understanding these differences can help you make the right choice for your specific needs.

We will go into more details in the later section.

Advantages of Closed-Source Software

At a first glance, it may seem that open-source software has more advantages because it’s usually cheaper compared to closed-source software. However, price isn’t the only consideration when choosing any software.

1. Functionality

Closed-source software often outpaces open-source alternatives in terms of functionality. Since it’s developed by commercial companies with dedicated teams, it tends to stay ahead of trends, offering regular updates and new features to meet user demands. These tools are typically designed with current market needs in mind, ensuring a polished and feature-rich experience.

2. User-Friendliness

Closed-source software is usually designed with the end-user in mind, making it more intuitive and accessible. Commercial software developers prioritize ease of use, ensuring that even non-technical users can operate the program without needing any special knowledge. In contrast, open-source software can sometimes require additional setup or technical expertise, making it less user-friendly for everyday users.

3. Technical Support

With closed-source software, users benefit from dedicated customer support, which can include 24/7 help via phone, chat, or email. This level of support provides quick resolutions for technical issues, ensuring that businesses can minimize downtime.

Open-source software, however, typically relies on community forums, documentation, or third-party support, which can be less reliable and immediate.

4. Security

Closed-source software is often more secure, as it is backed by a dedicated team of professionals who regularly update and patch vulnerabilities. These companies invest in security testing and have a structured process in place for addressing potential threats. Open-source software, while transparent, can have vulnerabilities due to the lack of centralized security teams and the reliance on external contributors for updates.

5. Customization and Flexibility

Closed-source software generally offers less flexibility than open-source alternatives when it comes to customization. However, it often provides a more consistent and reliable user experience with built-in features that meet a broad range of needs. For businesses looking for a solution out of the box, closed-source software can be more practical due to its pre-defined structure and focus on simplicity and ease of use.

6. Cost-Effectiveness

While closed-source software often comes with upfront costs or subscription fees, the investment typically guarantees a higher level of support, security, and updates. Many businesses prefer this model because they can rely on consistent software maintenance and support, making it a predictable, long-term expense.

In comparison, open-source software can have hidden costs such as support, training, and implementation.

7. Innovation and Speed of Development

Closed-source software developers have the financial resources to drive rapid innovation, frequently releasing new features and updates. These companies invest in research and development, ensuring that their products remain competitive. In contrast, open-source software evolves more slowly, as it depends on community contributions and may not receive the same level of consistent investment.

8. No Vendor Lock-In

While vendor lock-in is often seen as a drawback of closed-source software, many businesses find value in the comprehensive ecosystem that commercial vendors provide. Vendors typically offer seamless integrations, a unified suite of products, and long-term support, which can reduce the need for frequent migrations and create a cohesive IT environment for users.

Examples of Closed-Source Software

Here are the examples of closed-source software-

1. Microsoft Windows – A widely used operating system for personal computers.
2. Adobe Photoshop – A professional image editing software known for its powerful features.
3. Microsoft Office Suite – A collection of productivity software, including Word, Excel, and PowerPoint.
4. Apple macOS – The operating system for Apple’s Mac computers.
5. Google Chrome – A popular web browser (though built on open-source Chromium, Chrome itself includes proprietary elements).
6. iTunes – Media management and playback software from Apple.
7. Skype – A communication software for voice and video calls, originally developed by Microsoft.
8. WinRAR – A file compression and extraction tool with proprietary features.
9. Oracle Database – A leading relational database management system.
10. Autodesk AutoCAD – A professional software used for 2D and 3D design, widely used in architecture and engineering.
11. Steam – A digital gaming platform and store developed by Valve.
12. SAP – A suite of enterprise resource planning (ERP) software used by large organizations.
13. VMware – Software for virtualization, allowing users to run multiple operating systems on a single machine.
14. QuickBooks – Accounting software for small businesses, developed by Intuit.
15. SolidWorks – A 3D CAD design software used for product design and engineering.
16. Dokan Cloud – A cloud-based platform that enables users to build and manage multi-vendor eCommerce stores, offering easy setup and maintenance without technical complexity.

Key Differences Between Open & Closed Source Software

When comparing open-source and closed-source software, the key differentiators come down to several important factors:

• Price
• Support
• Source Code Availability
• Usability
• Security
• Flexibility
• Development Speed

Open vs Closed Source Software Difference #1: Price

As discussed earlier, open-source software is often referred to as “free” because it doesn’t typically require purchasing a license. However, additional costs can arise if you need extra services, such as technical support, extended functionality, or custom features. These added costs can still make the total expense significant, especially for businesses needing dedicated help or specialized features.

On the other hand, closed-source software generally requires an upfront payment or subscription, with the price varying based on the software’s functionality. While the price may be higher, closed-source software often comes with comprehensive support, more polished features, and regular updates. Many vendors also offer free trials to allow users to evaluate the software before committing to a purchase.

Open vs Closed Source Software Difference #2: Support

Closed-source software is typically backed by a professional support team. Most commercial vendors provide structured, high-quality support, including phone or chat assistance, documentation, and knowledge bases. The support is often included as part of the cost or available at an extra fee. This type of service ensures that users have direct, fast access to help when issues arise.

In contrast, open-source software often relies on community-driven support. While this is usually free, support is often less organized and can be limited to forums, community discussions, and articles. For serious issues, businesses may need to hire external experts or consultants, which could incur additional costs. As a result, open-source users might not always receive the timely or specialized support they need.

Open vs Closed Source Software Difference #3: Source Code Availability

The defining feature of open-source software is its accessibility. Users have full access to the source code, which means they can modify, adapt, and improve the software as needed. This flexibility allows for rapid innovation and customization, with contributions from the community continually improving the software.

Closed-source software, on the other hand, keeps the source code proprietary and inaccessible to the public. Users are not permitted to modify the software. While this restriction limits flexibility, it helps maintain consistency, security, and stability, as changes are made only by the software’s original developers.

Open vs Closed Source Software Difference #4: Usability

Usability tends to be one of the challenges with open-source software. While it often offers robust features, user guides are generally written for developers and may not be easy to follow for non-technical users. This lack of user-focused documentation can make it difficult for individuals or businesses without dedicated technical expertise to get the most out of the software.

In contrast, closed-source software typically focuses heavily on usability, offering well-designed interfaces and detailed, user-friendly documentation. These tools are designed to be easy to use for a wide range of users, with clear instructions for both basic and advanced features.

Open vs Closed Source Software Difference #5: Security

Security is a commonly debated topic when comparing open-source and closed-source software. Open-source software benefits from the collective efforts of a large community. The source code is open for anyone to inspect, fix, and improve, which means that bugs and vulnerabilities are often discovered and patched quickly. However, this transparency can also be a disadvantage, as it exposes the source code to potential attackers who may exploit vulnerabilities before they are fixed.

In contrast, closed-source software is typically more secure in terms of privacy, as the code is not publicly available. The software vendor is responsible for managing and fixing security flaws, which may take longer than in open-source alternatives. However, the closed nature of the software can deter hackers from analyzing and exploiting the code.

While open-source software benefits from quick fixes and constant scrutiny by the community, closed-source software may offer better security for businesses that rely on vendor-managed protection and don’t want to expose their systems to outside scrutiny.

Open vs Closed Source Software Difference #6: Flexibility

Open-source software offers incredible flexibility, allowing users to modify the software to suit their needs, integrate it with other systems, or add custom features. This is particularly beneficial for businesses with specific requirements or development teams that need to tailor the software for their environment.

Closed-source software, while less flexible, often comes with a streamlined and well-integrated set of features. For businesses that need a ready-made solution without extensive modifications, closed-source software provides a faster, more consistent option.

Open vs Closed Source Software Difference #7: Development Speed

The development pace of open-source software is often driven by the contributions of a global community of developers. This can lead to rapid innovation, as features and improvements are added frequently based on user demand. However, the speed of development can vary depending on the project’s popularity and the size of the contributing community.

On the other hand, closed-source software is developed under the control of a single company or vendor. While this can lead to more structured and predictable updates, the pace of development may be slower since it depends on the company’s internal priorities and resources. However, commercial vendors may focus more on meeting user demands in a timely manner, ensuring faster resolution of critical issues.

Similarities Between Open vs Closed Source Software

There are differences between Open vs Closed Source software but there are similarities as well-

1. Purpose and Functionality: Both open-source and closed-source software serve the same core purpose: to fulfill specific functions or needs for users, such as productivity, entertainment, communication, or business operations. Whether the software is open or closed, the goal is to provide value to the user through features, tools, or services.
2. User Experience: Both types of software strive to deliver an optimal user experience, focusing on user-friendly interfaces, efficient performance, and reliable operations. Many closed-source and open-source solutions invest in design and functionality to ensure users can interact with their tools seamlessly.
3. Security Measures: While the approach to security may differ, both open-source and closed-source software are committed to protecting their users. Closed-source software tends to have internal security teams to handle vulnerabilities, while open-source software relies on the community to spot and patch issues. In both cases, developers are actively working to address potential security risks.
4. Updates and Patches: Both open-source and closed-source software receive regular updates and patches. For open-source software, updates typically come from the community or the original developers. For closed-source software, updates are provided by the software vendor. These updates usually include bug fixes, new features, and security improvements.
5. Commercial Use: Both open-source and closed-source software can be used for commercial purposes. While open-source software is free and customizable, it can also be used by businesses, provided the proper licenses are followed. Closed-source software, although typically requiring a paid license, is also widely used in commercial environments.
6. Licensing Requirements: Both open-source and closed-source software are subject to licensing agreements. Open-source software has licenses like the GPL (General Public License) or MIT that allow users to modify and distribute the software, while closed-source software comes with proprietary licenses that outline the terms of use, restrictions, and support.
7. Performance and Reliability: When properly developed and maintained, both open-source and closed-source software can offer high performance and reliability. The stability of either software type is largely determined by the quality of the code, the development process, and ongoing updates or improvements.
8. Customization: Both open-source and closed-source software offer some level of customization. While open-source software allows more flexibility with direct access to source code, closed-source platforms often provide customization through plugins, extensions, or API integrations.
9. Community Engagement: Even though community engagement looks different for both types, both open-source and closed-source software often have dedicated user groups, forums, or online communities. Open-source communities collaborate to improve software and provide peer support, while closed-source software may have official support channels and user communities around specific brands.
10. Business Support: Both open-source and closed-source software can provide support options for businesses. For open-source software, support can be found through forums, documentation, or third-party companies. Closed-source software generally includes official support from the vendor, which is part of the package for paid software.

Best Examples of Open Source Software and Closed Source Software shopping carts

The eCommerce market offers both open-source and closed-source shopping cart systems, each with distinct advantages. The primary difference lies in cost: open-source shopping carts are typically free, while closed-source solutions require a subscription or one-time payment. In exchange for the cost, closed-source platforms usually provide customer support and built-in confidence, as users can rely on professional help when needed. Open-source solutions, on the other hand, don’t offer dedicated support, but their active forums and communities are always ready to lend a hand.

One of the main advantages of open-source solutions is flexibility and scalability. You have full control over your site’s design and functionality, allowing you to make any customizations you need. Additionally, as your business grows and your sales increase, open-source platforms allow you to scale without incurring additional fees for increased sales volume.

In contrast, closed-source software is often more user-friendly, making it a great choice for beginners or those without coding skills. These platforms are typically easier and faster to set up right out of the box, offering ready-made solutions that work without requiring deep technical knowledge.

Some of the most popular open-source shopping carts include WooCommerce, Dokan, Magento, and OpenCart, while BigCommerce and Shopify are leading examples of closed-source platforms.

Final remarks

Each platform type, whether open-source or closed-source, comes with its own unique capabilities, philosophy, methodology, and set of advantages and disadvantages. There is no one-size-fits-all solution; the best choice depends on your specific business requirements. We hope this article has provided you with the insights you need to make an informed decision for your business.

If you’re looking to integrate with eCommerce platforms, Dokan is a great solution. It offers a unified API that works seamlessly with various shopping carts and marketplaces, including Magento, Shopify, WooCommerce, BigCommerce, OpenCart, PrestaShop, and more. Dokan simplifies the integration process, helping you overcome common challenges while saving both time and development costs.