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Home/Guides/Shopify vs Custom Development: The Honest Comparison for Growing Businesses
E-Commerce & Platforms

Shopify vs Custom Development: The Honest Comparison for Growing Businesses

An unbiased comparison of Shopify and custom e-commerce development — covering cost, flexibility, performance, and long-term ownership. Written for businesses that have outgrown templates but aren't sure what's next.

By HunchbiteFebruary 6, 202613 min read
Shopifycustom developmente-commerce

Shopify is excellent. Let's start there.

For a new online store selling a few hundred products with standard pricing, standard shipping, and standard checkout — Shopify is probably the right choice. It's fast to set up, well-designed, and handles the boring stuff (hosting, security, PCI compliance) so you don't have to.

But you're reading this guide because Shopify isn't working for you anymore. Or you're starting a project that you suspect Shopify can't handle.

This guide is the honest comparison we wish existed when we were helping clients make this decision. No agenda. No "Shopify is dead" clickbait. Just a clear-eyed look at where Shopify excels, where it falls short, and when custom development becomes the better investment.

Where Shopify wins (and it's a lot of places)

Speed to launch

Shopify can go from zero to a live store in days. Choose a theme. Add products. Connect a payment method. You're live. Custom development takes weeks at minimum.

Verdict: If speed to market is your only priority and your needs are standard, Shopify wins.

Ecosystem

Shopify has 8,000+ apps in its marketplace. Need abandoned cart emails? There's an app. Loyalty programs? There's an app. Live chat, reviews, upsells, subscriptions — apps for everything.

Verdict: For standard e-commerce features, the Shopify ecosystem means you rarely need custom development.

Managed infrastructure

You never think about hosting, security patches, SSL certificates, PCI compliance, or server scaling. Shopify handles all of it. During Black Friday, when your traffic spikes 10x, you don't wake up at 3 AM to scale servers.

Verdict: For businesses without a technical team, this peace of mind is worth a lot.

Payment processing

Shopify Payments is built in. No integration needed. Accept credit cards, Google Pay, Apple Pay, Shop Pay — everything works out of the box. In India, Shopify integrates with Razorpay and other local gateways.

Verdict: Payment setup on Shopify is trivially easy compared to custom integrations.

Predictable cost for simple stores

Shopify's pricing is clear: ₹1,999–₹30,000+/month depending on your plan, plus transaction fees. You know what you're paying each month.

Verdict: For stores with straightforward needs, the predictable monthly cost is attractive.

Where Shopify falls short

Customization ceiling

Shopify themes are designed for common use cases. When your requirements deviate from the template — custom product configurations, complex pricing rules, unique checkout flows, multi-currency with locale-specific tax rules — you hit the customization ceiling.

At this point, you're either:

  1. Paying for expensive Shopify Plus (₹1.5L+/month) and custom Liquid development
  2. Chaining together multiple apps that don't work well together
  3. Living with compromises in your user experience

The real cost: A "simple" Shopify customization can cost ₹2L–₹5L from a Shopify developer, and it's still limited by the platform's constraints. The same functionality built custom might cost similar — but with no limitations going forward.

Performance at scale

Shopify's hosted infrastructure is great for most stores. But when you have:

  • 10,000+ products with complex filtering
  • Heavy traffic from multiple countries
  • Real-time inventory sync with external systems
  • Complex product relationships (variants, bundles, configurations)

Performance can degrade. Shopify's Liquid templating engine isn't the fastest, and you have no control over server-side caching, database queries, or CDN configuration.

Custom alternative: A headless Next.js storefront with a headless CMS or Medusa backend can achieve sub-second load times regardless of catalog size — because you control every layer of the stack.

Transaction fees

On Shopify Basic, you pay 2% on every transaction (on top of payment gateway fees) unless you use Shopify Payments. On Advanced, it's 0.5%. On Plus, it's negotiable.

For a business doing ₹50L/month in revenue, that 2% fee is ₹1L/month — ₹12L/year — just for the privilege of using Shopify. That's enough to fund a custom platform.

Data ownership and portability

Your store data lives on Shopify's servers. You can export products and orders via CSV, but:

  • Customer accounts don't transfer easily
  • Your SEO history (URLs, redirects) is tied to Shopify's structure
  • Custom app data may not be exportable
  • Theme customizations are Shopify-specific (Liquid, not transferable)

If you ever leave Shopify, you're starting over in many ways. With custom development, you own everything — code, data, infrastructure, domain structure.

B2B limitations

Shopify was built for B2C. While Shopify Plus has added B2B features, they're still limited compared to what B2B businesses typically need:

  • Complex pricing tiers (by customer, by volume, by contract)
  • Quote-based workflows
  • Purchase order management
  • Custom payment terms (net 30, net 60)
  • Multi-location inventory with allocation rules
  • Customer-specific catalogs

These features either don't exist, require expensive Plus plans, or need custom development on top of Shopify — at which point, why not build custom?

SEO control

Shopify gives you basic SEO controls (meta titles, descriptions, URL handles). But you can't:

  • Fully control your URL structure (always /products/, /collections/)
  • Implement advanced structured data without apps
  • Customize your sitemap logic
  • Control server-side rendering behavior
  • Implement advanced performance optimizations (image formats, lazy loading strategies)

For businesses where organic search is a primary acquisition channel, these limitations matter.

The cost comparison (real numbers)

Shopify (typical growing business)

Cost Monthly Annual
Shopify Advanced plan ₹22,000 ₹2.64L
Theme (premium, one-time) — ₹15K
Essential apps (5–8) ₹8,000–₹15,000 ₹0.96L–₹1.8L
Transaction fees (at ₹20L/mo revenue) ₹10,000–₹40,000 ₹1.2L–₹4.8L
Customization/development ₹15,000–₹30,000 ₹1.8L–₹3.6L
Total ₹55,000–₹1.07L ₹6.75L–₹12.84L

Custom development (comparable store)

Cost One-time Annual
Initial development ₹12L–₹25L —
Hosting (Vercel/Railway) — ₹24K–₹60K
Payment gateway fees only — ₹1.2L–₹2.4L
Maintenance and updates — ₹1.5L–₹3L
Year 1 total — ₹14.94L–₹31L
Year 2+ total — ₹2.94L–₹5.4L

The crossover: Custom development costs more in Year 1 (development investment). But from Year 2 onward, it's significantly cheaper — and you own everything. For a business doing ₹20L+/month in revenue, the custom route typically breaks even by Month 14–18.

When to choose Shopify

Choose Shopify when:

  1. You're just starting out. You need to validate the business model before investing in custom development. Shopify lets you test the market quickly and cheaply.

  2. Your needs are standard. Straightforward catalog, standard checkout, standard shipping. No exotic business logic.

  3. You don't have a technical team. Shopify's managed approach means you don't need developers for day-to-day operations.

  4. Speed to market is critical. If you need to launch this week, Shopify wins.

  5. Your revenue is under ₹10L/month. At this scale, the transaction fees and app costs are manageable, and the upfront investment in custom development is hard to justify.

When to choose custom development

Choose custom when:

  1. You've outgrown Shopify's features. You're fighting the platform more than it's helping you. Workarounds everywhere. App conflicts. Performance issues.

  2. B2B is a significant part of your business. Custom pricing, quote workflows, purchase orders, customer-specific catalogs — these need custom development.

  3. Performance is a competitive advantage. If page speed directly impacts your conversion rate (it does), and you need sub-second load times on large catalogs, custom gives you the control to achieve it.

  4. You need complex product configurations. Custom product builders, visual configurators, dynamic pricing based on specifications — these are custom development territory.

  5. Your revenue justifies the investment. At ₹20L+/month, the ongoing savings from custom development (no transaction fees, no app subscriptions, lower hosting costs) justify the upfront investment.

  6. You want to own your platform. No vendor lock-in. No app dependencies. No mandatory updates that break your store. Full control.

  7. SEO is a primary acquisition channel. Full control over URL structure, rendering, structured data, and performance gives you a meaningful advantage.

The hybrid approach: headless Shopify

There's a middle ground: use Shopify as a backend (inventory, orders, payments) and build a custom frontend (Next.js, Hydrogen, or similar).

Pros:

  • Custom frontend experience (fast, unique, fully controlled)
  • Shopify handles inventory, payments, and order management
  • Access to Shopify's app ecosystem for backend operations

Cons:

  • Still paying Shopify's monthly fees and transaction costs
  • More complex architecture than either pure option
  • Limited by Shopify's backend APIs (which are good but not unlimited)
  • Two systems to maintain instead of one

When this makes sense: You have a Shopify store with significant operational investment (inventory management, fulfillment integrations, staff training) and you want a better frontend experience without rebuilding your backend operations.

When it doesn't: If you're building from scratch, going headless Shopify adds complexity without clear benefits over a fully custom stack.

Our recommendation

For most businesses reading this guide, the decision tree is:

  1. Revenue under ₹10L/month and standard needs? → Shopify
  2. Revenue ₹10L–₹20L/month with growing complexity? → Evaluate both options seriously. Consider headless Shopify as a bridge.
  3. Revenue over ₹20L/month or complex B2B needs? → Custom development. The math works and the flexibility is necessary.
  4. Building a marketplace or platform (not just a store)? → Custom development. Shopify isn't designed for this.

The wrong choice isn't fatal. Businesses migrate from Shopify to custom every day. The right time to switch is when the platform is holding you back more than it's helping you.


Evaluating your options? Book a free discovery call — we'll review your current setup, understand your requirements, and give you an honest recommendation on whether Shopify, custom, or a hybrid approach makes the most sense. Or explore our e-commerce solutions to see what we've built.

Next step

Ready to move forward?

If this guide resonated with your situation, let's talk. We offer a free 30-minute discovery call — no pitch, just honest advice on your specific project.

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