Why Cloud Computing is Essential for eCommerce Success

It will be an understatement to say that eCommerce is on the rise. If anything, eCommerce, in its various forms, has proved to be a pandemic-proof sector with a projected market rise of $17.53 trillion by 2030.

Some patterns are common in every eCommerce business –

• Seasonal spike in demand and website/app traffic
• Ease of navigation is the key to repetitive sale
• Frequent need for dynamic pricing and faster go-to-market time
• Pressure to lower the operations cost because the technical expense is very high
• Ensuring safe and quick end-to-end e-commerce transactions, from product search to final payment.

These patterns have contributed to the meteoric rise of the industry. However, achieving them on a technical IT front is difficult, mainly because most of them need to be more predictable. This is where cloud computing in eCommerce comes into the picture.

In this article, we will look into the numerous factors that validate that cloud adoption in eCommerce is the only way to achieve the kind of flexibility and zero downtime the sector requires.

The Role of Cloud Computing in eCommerce

Cloud computing is pivotal for e-commerce, offering scalable and cost-efficient infrastructure that supports online businesses. It improves site performance through high-speed servers and content delivery networks (CDNs), ensuring quick load times and a seamless user experience. The flexibility of cloud solutions allows eCommerce platforms to adjust resources according to traffic demands and peak periods without hefty initial investments.

In addition, cloud computing provides robust security measures, including automated backups and disaster recovery, to protect sensitive customer data and ensure operational continuity. It enables remote access and real-time updates, allowing businesses to manage their operations from any location. Seamless integration with third-party tools, such as payment processors and CRM systems, further enhances the user experience.

Overall, cloud computing helps e-commerce businesses optimize performance, reduce costs, and drive growth by providing the necessary tools and infrastructure for success.

Factors that contribute to the growth of cloud eCommerce

When compared with other industries, the eCommerce domain is built differently. It requires multiple functions to set up, manage, build, and deploy a high-concurrency infrastructure that is always on. Considering all the requirements, creating an IT infrastructure with zero downtime almost always becomes a task performed through the cloud in eCommerce.

Better scalability 

One lesson that COVID-19 taught the eCommerce space, the domain can shift dramatically overnight. Cloud eCommerce helps companies adapt to these changes by adding or removing resources to an account in real time.

A real-world example of how cloud computing works in e-commerce can be seen during the holiday season when the demand for a particular product increases manifold along with web traffic and user data. This event calls for significant storage space and processing power. On the other hand, when sales are down, companies don’t require the same amount of resources. Managing these fluctuations in demand is possible only when you have a highly scalable technology, such as eCommerce cloud computing.

Typically, eCommerce businesses benefit significantly from cloud solutions which can be scaled up or down automatically through a trigger that increases or decreases the computing power without someone having to monitor the storage usage constantly. 

Increased speed

Speed is one of the most critical aspects of a successful eCommerce business. Numerous studies show that a customer will abandon the cart if it takes more than 3 seconds to load. 

While on an everyday traffic level, the page speed remains constant, but in instances where the traffic is spiked, the eCommerce app tends to slow down and even become unresponsive. This slowed-down network performance is one of the biggest reasons businesses tend to invest in eCommerce on the cloud.

The impact of website speed on eCommerce business performance can be seen through lower bounce rates, increased loyalty (leading to repeat business), and better Google search ranking.

How cloud computing and eCommerce work on the front of speed is twofold: high availability and low latency. The former is achieved through 24*7 consistent cloud consulting services, while the latter is guaranteed with cloud vendors storing the data near the users’ location. This inclusion of cloud in eCommerce results in customers facing zero page load issues and a faster checkout journey.

Cost reduction

Cloud computing for eCommerce promises reduced business costs as the companies only pay for the storage and resources they use. Moreover, they don’t have to invest money in either infrastructure or software since the vendor manages all the expenses. As an extension to this, companies are also able to save money on labor and infrastructure maintenance as the need for managing the IT infrastructure gets reduced manifold. 

eCommerce in the cloud also eliminates financial risk since if an eCommerce firm is not using some software or feature, they don’t have to pay for it, leading to zero risk of being stuck with a software they don’t use. This way, companies can save money for other ventures like new feature development and market research.

Improved security

One of the most significant benefits of merging eCommerce with cloud computing lies in keeping business information safe. Most cloud-based eCommerce systems come with an architecture to protect against DDoS (Distributed Denial-of-Service) attacks, where the hackers flood servers with a massive amount of traffic, leading to a lowered service speed and inability to access the platform.

On an advanced level, cloud eCommerce comes with the functionality of handling sensitive information such as customers’ addresses, payment details, and passwords. They are also typically integrated with System and Organization Controls (SOC) standards which enable the eCommerce companies to limit who can access which data. 

Tip: We recommend investing in cloud computing in eCommerce platforms that are integrated with industry-wide compliances like GDPR, PCI-DSS, etc. 

Integration of AI and ML

The role that Machine Learning and AI play in eCommerce is well-established on a global scale. From finding the right product, and maintaining inventory, to ensuring high security, the technology makes the shopping experience smoother globally. 

Artificial intelligence and machine learning technologies can offer benefits around heightened personalization, advanced site search, management of inventory, lowering churn prediction, and dynamics by looking into various business and customer data. This is where the cloud-based eCommerce comes in. With the help of cloud technology, companies can store a range of data points across structures on a unified platform that artificial intelligence algorithms can then analyze. 

These benefits of cloud computing for eCommerce are just the tip of the iceberg. The actual spectrum is more widespread, ranging from helping in market research, injecting stability in a competitive space, better adaptability, and even smooth resource management. However, these advantages of cloud computing in eCommerce depend on how well you have incorporated the cloud eCommerce architecture.

How to perform successful eCommerce cloud services implementation?

Implementation of cloud computing in eCommerce is different for every individual offering, varying based on features, users, and products. Whenever we work with an e-commerce client at Appinventiv, be it Edamama, 6th Street, or Adidas, we develop the brand’s capabilities to securely store massive amounts of data while using public, private, or hybrid cloud models to ensure minimum latency and zero downtime.

While no two eCommerce cloud journeys are the same, the integration process is more or less divided into the same five steps.

Ideate 

We start with identifying the reason for adopting cloud-based eCommerce solutions by understanding the firm’s primary problem area. What helps is finding these answers –

• Why do you want a cloud-based eCommerce system?
• What is the average traffic on your platform?
• How do you aim to improve the app’s performance?

Setting the base

Once we establish the primary purpose of the cloud-based eCommerce platforms, we build the platform. At this stage, we make a user flow, fix the feature set, finalize the technology combination, and create a scalable architecture to host various products—all of this with the cloud at the center of the development approach.

Plan 

Once the scope of eCommerce cloud computing has been established, the next step is deciding the usage and automation level. We find our way to this by asking these questions –

• What is the level of eCommerce in cloud solution usage?
• Which department will be using the eCommerce cloud computing solution?
• Will you hire new talent to manage cloud computing in eCommerce or train the existing team?

Once we get clarity on these things, we will work on cloud integrations that would address all these pain points and develop a scope where next-gen technologies can be incorporated. 

Validating the results 

After we set up the scope for cloud-based eCommerce platform, we set up an architecture for tracking the results to ensure that the original pain points are addressed. Our team of cloud experts also build a space for the firm’s employees to track and share the results with the concerned executives in a secure platform.

The approach has helped us make the idea of cloud computing for eCommerce popular for several differently-sized firms. The fact that we have helped over 7+ retail firms come into prominence on the back of our cloud expertise makes us one of the most reliable names as an AI app development company and eCommerce app development company.

We specialize in the end-to-end creation of cloud-based eCommerce software, which starts with conceptualizing the scope of technology to develop eCommerce solutions and monitoring the impact of cloud computing in the domain. We can help you find the answer. Get in touch with our team of cloud experts today for a free consultation.

FAQs

Q. How is cloud computing related to eCommerce?

A. Cloud computing benefits eCommerce by offering scalable and cost-effective infrastructure. It boosts site performance, manages resources flexibly, and ensures data security. Cloud solutions support remote access, streamline operations, and enable seamless integration with various tools, all of which are essential for optimizing eCommerce platforms and driving business success.

Q. What are the benefits of cloud computing for eCommerce platforms?

A. Here are some of the benefits of implementing cloud computing in eCommerce platforms:

Advanced Analytics: Utilize big data tools for powerful analytics and reporting, gaining insights into customer behavior and performance metrics.

Cost Savings: Cloud computing reduces upfront hardware costs with a pay-as-you-go model, minimizing capital expenditures.

Scalability: Easily scale resources up or down based on demand to handle traffic spikes during peak periods.

Robust Data Security: Strong security measures and adherence to industry standards protect sensitive customer data.

Effective Disaster Recovery: Automated backup and recovery solutions quickly restore data and minimize downtime during system failures.

Enhanced Performance: High-performance servers and CDNs improve site speed and reliability, boosting user experience and conversions.

Q. What are the types of cloud service models available for eCommerce businesses?

A. Here are some of the top types of cloud service models for eCommerce business:

Hybrid Cloud: Blends public and private cloud resources with on-premises infrastructure, allowing eCommerce businesses to optimize costs and manage workloads efficiently.

Multi-Cloud: Involves using services from multiple cloud providers, avoiding vendor lock-in and enhancing redundancy while selecting the best solutions for diverse needs.

Private Cloud: Offers dedicated cloud resources exclusively for one organization, providing enhanced control, security, and customization for specific e-commerce requirements.

Public Cloud: Provides scalable and cost-effective cloud services to multiple organizations over the internet, ideal for e-commerce businesses needing flexibility and reduced operational costs.

Infrastructure as a Service (IaaS): Offers virtualized computing resources over the internet, allowing e-commerce businesses to rent servers, storage, and networking on a flexible basis.

Platform as a Service (PaaS): PaaS provides a development platform for building, testing, and deploying applications, letting e-commerce businesses create custom solutions without managing the underlying infrastructure.

Software as a Service (SaaS): Delivers software applications via the internet on a subscription basis, including tools for CRM, email marketing, and inventory management tailored for eCommerce.

Also Read: IaaS vs. PaaS: How Can Businesses Choose the Best Model?

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