Your choice of ecommerce software is probably one of the most important E-commerce Software Solutions decisions you make when creating an online store. The ecommerce software can be seen as the equivalent of a stores physical layout. It doesn't matter how well designed your store is - if the layout consists of multiple different levels in a tiny space, cracks in the ceiling and horrible plumbing, you'll be spending more time fixing your store than selling.
The main advantages of hosted solutions are that the up-front costs are pretty low, many come with easy to use templates and wizards and you can generally expect an on-going series of upgrades. The hosting provider will deal with all the technical issues that you, as a potential business owner, might not understand or care about.
That leaves you, the owner, with a lot more time to deal with the actual business of running the site. It's a very good solution for those who have little knowledge of the IT side and do not have access / do not wish to pay an IT team to deal with it.