Hi,
What do you mean by "adding new functionality" ?
Most of our users have a test website (either locally or online but not accessible by others) where they prepare their website with hikashop on it. Once all setup, they move it to the production website. Some use akeeba backup for that but others just do it manually by exporting/importing their database via phpmyadmin and copy the files via FTP.
Concerning updates, there are two type of users:
the ones who make a backup and update hikashop on the production server directly.
others who make a copy of their production website on a test website and update there, test that everything is working and only then push the update to the production website.