Caught in a technological trap: what is vendor lock-in and how to avoid it?

Table of contents:

• What is Vendor Lock-In?
• What causes vendor lock-in?
• In what areas of the store can you face vendor lock-in?
• What risks does vendor lock-in pose to your business?
• How to avoid vendor lock-in?
• Is your online store at risk of vendor lock-in?

Imagine a scenario where an online store has been using a reliable solution for years. It could be a CRM system for managing customer relationships or software for multichannel sales automation. Everything runs smoothly until the tool’s provider suddenly decides to significantly increase prices or introduces functionality changes that no longer align with the business’s needs. This is where the problem begins because replacing such a solution can be:

• time-consuming,
• costly,
• technically complex.

This situation is known as vendor lock-in – a dependency on a single provider for key business operations. Can this be avoided? Yes, but it requires careful planning and strategic decisions when designing your eCommerce infrastructure. In this article, we’ll explain what vendor lock-in is, why it poses a risk to your business, and how you can prevent becoming overly reliant on a single technology provider. With these tips, you’ll gain greater control over your store’s future and avoid costly pitfalls. Read on!

Vendor lock or vendor lock-in refers to a situation where a software provider makes a client dependent on their services and solutions. This means the offered technology becomes so deeply integrated with the client’s business that switching to another solution is either technically too complex or financially unviable. For many online businesses, particularly in eCommerce, this is a common reality. Online stores often rely on external systems to manage various aspects of their operations or even build their entire sales model on platforms such as Shopify, WooCommerce or PrestaShop.

At first glance, vendor lock-in carries a negative connotation. After all, it limits a company’s flexibility for growth or changes in direction, making it dependent on a single provider. In the worst-case scenario, the client is forced to accept the provider’s terms, which can cause frustration and hinder business development. But is vendor lock-in always a trap to be avoided at all costs?

It’s worth looking at vendor lock-in from a broader perspective. While there are downsides to being tied to a single provider, there are also situations where it can be beneficial. For example, during the early stages of business development, partnering with one provider can simplify processes, accelerate the implementation of solutions, and reduce initial investment costs. This is why many businesses opt for SaaS (Software as a Service) solutions, such as tools for process automation, resource management systems, or analytics platforms. In such cases, vendor lock-in becomes an almost natural byproduct of decisions aimed at simplifying operations. The real challenge arises when a company plans to scale its business and suddenly discovers that switching providers is far more complicated than anticipated.

Vendor lock-in can stem from both the provider’s strategy and market conditions. In some cases, it is the result of deliberate actions by a provider who designs solutions in a way that makes integration with other companies’ products difficult. Another reason is the lack of available alternatives on the market. If a technology is unique or offers a significant functional advantage, clients often have no choice but to accept dependency on a single provider. A notable example is BaseLinker, a tool for managing multichannel sales. As the software gained popularity and expanded its offerings, its creators significantly increased pricing—sometimes from 10,000 to 100,000 PLN per month. Although alternatives exist, they often lack the advanced features BaseLinker offers. This leaves businesses facing a difficult choice: remain with the provider and accept higher costs, or switch to less developed software at the expense of losing functionality.

The risk of vendor lock-in also increases over time. As businesses transfer more data and create numerous integrations, the system becomes a critical component of their business ecosystem. Reproducing these complex connections in another system can be not only challenging and time-consuming but also costly.

Vendor lock-in can occur in many critical areas of online store operations, particularly where external technologies and services are used. This issue becomes especially problematic when integration with a specific provider becomes the foundation of a store's daily operations. Here are the most common examples:

• Automation systems - tools like BaseLinker or Zapier, which support order and process management, can require significant time, effort, and financial resources. This happens when these tools become integral to the store’s infrastructure, seamlessly connecting various systems into one efficient environment.
• External systems - solutions such as accounting, payment, logistics systems, or tools like ERP, CMS, or CRM platforms (e.g., Salesforce) often involve costly and time-intensive integrations.
• Cloud services - Hosting platforms or data storage tools (e.g., AWS, Google Cloud) often lock users into their proprietary formats or technical limitations, making switching difficult.

The most challenging cases occur when an entire sales platform is built on an external SaaS solution (e.g., Shopify or WooCommerce). If such a platform stops meeting business needs, migrating the online store to a more flexible solution - such as an open-source platform like Magento by Adobe - becomes necessary. However, this process involves substantial costs and effort to recreate the store’s complex technological infrastructure.

If your store is geared toward growth, such as expanding into new markets (including international ones), broadening your product range, or implementing highly personalized functionalities, it’s better to start with an open-source platform from the outset. This approach allows for the gradual development of your system as your business grows, helping to avoid vendor lock-in issues and ensuring greater technological independence.

At some point, you chose a solution from an external provider, and for a long time, everything worked seamlessly. However, the rules of the game can change unexpectedly—perhaps you receive a notice of a price increase or the discontinuation of updates. Such changes can turn an initially beneficial solution into a hindrance, slowing growth and negatively affecting your business's stability. The key risks associated with vendor lock-in include:

• Frequent price increases - when a provider realizes that a client is heavily dependent on their solution and switching to an alternative would be difficult or costly, they may repeatedly raise the prices of their services.
• Decline in service quality - with a secure customer base, the provider may feel little incentive to improve or maintain high service standards.
• Changes in functionality - the provider might modify their product in ways that no longer meet your business’s needs, forcing you to adapt to less optimal conditions.
• Stifled growth - dependence on a single provider can limit access to innovative technologies that could drive your business forward.
• Technological debt – the solution may stagnate over time, eventually requiring costly migrations or a complete system overhaul to keep your business competitive.