Do I Need My Own App Instead of Paying a Platform?

The question of whether you need your own app instead of paying a platform on every sale is one that boutique owners are increasingly asking. The issue is not about technology, but about the financial impact on your margins. Platforms charge a monthly fee plus a percentage of every sale, plus card fees on top. Recently, this monthly fee tripled from $49.99 to $149.99, while the 5% cut of sales remained unchanged.

This means you pay more before selling a single item and still hand over 5% of each order plus around 3% in card fees.

Leaving a platform and building your own app can feel daunting, but it may be necessary to break the financial squeeze. When a platform like CommentSold increases their fees, owners are finding that the cost of staying outweighs the benefits. One owner even noted that live shows, a feature hosted by CommentSold, are starting to die out, further solidifying the desire to move to an independent solution.

Before making any decisions, it's crucial to understand what the platform is actually providing for you. List out each feature they offer, such as live shows, the hosted app, checkout, emails, and texts. Identify what you actually use and what you don't. This will help you determine the real value you're paying for.

Consider starting with a simpler solution, such as adding a 'Hot deals' tab to your own website and using emails and texts to communicate deals to your customers. This can help you gauge whether your customers will follow you off the platform. If you decide to build your own app, keep it simple at first - with products, checkout, a deals section, and a way to communicate deals to customers.

It's also essential to consider the costs involved. Add up what you're currently paying, splitting your monthly bill into the monthly fee, the percentage of sales, and the card fees. For example, with $2,000 in sales, you'd be paying $149.99 in monthly fees, $100 from the 5% cut, and about $60 in card fees, totaling around $310 a month.

Before cancelling, ensure your replacement solution - whether it's a new app or a revamped website - is already working. Check who owns the app and your data if you decide to leave a platform. Get this information in writing to avoid any surprises when you cancel.

If you're unsure about the technical aspects, such as checkout or payments, or need help transferring your product and customer lists, consider getting professional help. A second set of eyes can help you understand the costs and what's included when you build your own app.