Build or Buy? The Factors That Matter for Retail Software Applications

By Jessica Grisolia - Director of Industry Solutions at Scandit

You’ve decided to offer your associates or customers a better in-store experience with a smart device app.

The IT team wants to build it, and the store technology and innovation teams want to buy it.

Get the choice right, and you unlock a lasting advantage; get it wrong, and you drain your budget, delay impact, and frustrate your users.

It can also have a significant impact on your business.

According to McKinsey, high-performing tech correlates with better business performance.

This underscores the importance of the 'build vs. buy' decision as a strategic choice rather than a merely tactical one.

We're here to help. Based on thousands of deployments worldwide for various businesses, teams, and types of apps, this guide distills the key factors that determine the 'build versus buy' equation.

Use it as a checklist when evaluating anything from a clienteling app to an inventory tool. Let’s dive in 👇.

Proximity to the customer

If it’s a customer application, then the debate swings towards build or at least heavy customization.

Branding is the key here. It’s vital your application feels like your brand. It's possible that the back-end is outsourced, but the user interface needs to be consistent with your brand and what shoppers are accustomed to, such as your e-commerce site.

For associate applications, this can be a use-case-dependent point, which brings me to my next factor.

Strategic importance of workflow

Ask first: Is the workflow core to our brand promise?

• Differentiating experiences: for example, a luxury clienteling app interface that embodies your brand’s DNA often justifies building it.
• Commodity workflows: such as price checks or receiving, rarely deserve the same level of investment. Speed trumps uniqueness here.

For back-of-house workflows, retailers will be less concerned about how the technology looks and competitive differentiation, so the pendulum swings toward ‘buy’ here.

Next, ask why you are deploying the technology. If you’re looking for a best-in-class experience and a vendor has proven its worth in this space, you might want to consider this option.

Scalability across stores and regions

Building an app for ten pilot stores is one thing. Rolling it out to 3,000 stores across different countries, certifications, and security standards (think payment transactions and data privacy) is another.

The app's scalability depends on how commoditized the use case is.

For clienteling and mPOS, the process is pretty much the same worldwide.

Restocking? Everyone does it differently.

Store setup, customer behavior, cultural norms, and customs can affect how a solution scales. Local teams may want to tailor their solution to be region-specific and leverage specialist providers for this purpose.

Security standards and data privacy

Developing mPOS or other applications that handle payments or personal data means navigating a web of standards and regulations.

For example, the Payment Card Industry Data Security Standard (PCI DSS) is a worldwide standard required for any system processing or storing credit card data. And the EU’s General Data Protection Regulation (GDPR) is a strict privacy law based on consent and user rights.

Building apps gives you full control over the data flows, but it means you take on the full compliance burden, including auditing and documentation. Hiring specialist consultants to help is a common practice.

Purchasing a commercial mPOS app or licensing an SDK from a vendor can offload much of the compliance heavy lifting.

Mature solution providers often bake in compliance. Providing immediate peace of mind and helping you remain compliant by tracking evolving laws.

In either case, retailers should treat compliance as a foundational requirement that is thoroughly addressed in the project plan.

Time to market

Retail calendars are unforgiving. Holidays and back-to-school opportunities are not to be missed. ‘Black Friday’ is rumored to be named so because it's the day stores finally move from operating at a financial loss (red) to turning a profit (black) due to the surge in demand.

Vendors can deliver minimal viable products (MVPs) in weeks. For internal builds, think months. And tech stack stability is crucial in the run-up to peak periods.

During these times, only minor adjustments are permissible to minimize potential downtime. So, the target launch date can be a big factor in choosing which path to take.

Internal resources and expertise

The time to market for internal builds is also dependent on the resources available to you.

Do you have product owners, mobile engineers, DevOps, and testers with experience in computer vision, AI, or augmented reality (AR)?

Just one element, such as adding AR to a retail application, can require specialized skills. It’s not the type of technology where Gen AI can plug the gap!

Number of applications

It’s not unheard of for associates to have access to 10+ apps to do their work. If you are part of an organization that has the structure and resources to oversee them all, then it's more likely you will build something, as you will want to create a seamlessly integrated architecture.

Where multiple divisions, budgets, siloed projects, and decision-makers are involved, it narrows the focus, and buying expertise for that area could be appealing.

Mega apps

App complexity also plays a part. A few years ago, a trend began where retailers introduced "mega apps." For example, an app that handles all store associate tasks, such as order picking and inventory counting.

This is a long and high-risk endeavor, and it's a ‘build’ decision. However, the emphasis is on having the right parts to give associates the capabilities to perform well.

Degree of customization

An out-of-the-box app will rarely be a perfect fit for your business. Customization will be required. If a commercial app gets you around 80% of the way, then modifying that app can lead to shorter implementation times and a better overall result.

We often find that even the largest retailers with the most resources opt to buy, choosing to focus on their core competencies rather than create something new.

Integration complexity

Few retail technologies operate in isolation, making integration capabilities crucial. Retailers must evaluate how either approach will integrate with existing systems, such as inventory management, customer relationship management, and point-of-sale systems.

Custom solutions offer tailored integration points but require developing each connection, while commercial products often provide pre-built connectors for common systems.

When ‘buy’ is on the table, look for vendors with no- or low-code apps, code samples, and documentation that will keep your developers happy.

It’s in part what makes Scandit a popular choice with technical teams. Because in just a few minutes, with a few lines of code, you can embed and leverage Scandit’s decades-long experience in data capture, user experience, and augmented reality into your operations.

1. Anchor the decision in customer impact and brand differentiation. Start by asking whether the app touches customers and reinforces your brand promise. If the experience is core, building, or at least heavily customizing, safeguards the brand's DNA. For back-office or commodity tasks, speed to value usually makes buying the smarter play.
2. Balance time-to-market against internal capacity. Retail calendars don’t wait. If you lack deep mobile, AR, or computer vision expertise, commercial solutions can deliver an MVP in weeks. Only build when you have both the skills and the runway to support long-term maintenance without delaying impact.
3. Plan for scale, integration, and cost. Rolling out to thousands of stores and multiple regions means integration complexity, localization, and future upgrades dominate the cost curve. When an out-of-the-box solution meets 80% or more of the requirements, “buy and extend” often maximizes value while limiting long-term risk.

By systematically weighing the above factors, retail technology leaders can confidently decide whether to buy or build software applications, delivering maximum value, minimal risk, and a clear path to future innovation.

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