4 Ways eCommerce Can Benefit From Cloud Computing
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Cloud Computing

4 Ways eCommerce Can Benefit From Cloud Computing

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The oversaturated eCommerce market is dictating its terms of competitiveness. Now minor weaknesses and delays can cost thousands of losses and raze your business to the ground. Therefore, online store owners need to be flexible, intelligent, and also grasp the latest innovations, such as eCommerce Cloud Computing, that they can use to their advantage.

One of the most recent examples is the update of Google’s algorithms. The news means that those sites that provide the best user experience will now come first when ranking. Retailers need to consider whether their sites are compliant with Core Web Vitals for Magento, Shopify, and other eCommerce platforms.

Also, cloud services have entered the arena to increase the level of eCommerce agility and flexibility. 2020 has shown the benefits of cloud technology. Those organizations that used the cloud were able to overcome the challenging months of the epidemic better. And those who didn’t use them suffered significant interruptions in services and communication with employees.

Cloud business tools and cloud computing applications provide numerous enterprises with the most secure ways to store their sensitive data and increase productivity. This article will explore the benefits cloud computing offers for the eCommerce sector in more detail.

Four Opportunities of eCommerce Cloud Computing

Cloud hosting provides an alternative to single devices. Instead of storing data on one computer, cloud technology allows keeping information on different devices. These devices rely on separate servers that can be located quite far off from each other.

However, each machine is interconnected and works as a unified system. Most eCommerce businesses use a hosting server to harness the processing power of several devices. Thus, they create a cluster of servers. And this cluster is called a cloud.

Online stores deviate from the functionality of other sites. They need additional support and flexibility to maintain databases, protect personal data, process payments, and track sales.

Therefore, adopting the cloud is an excellent solution to problems that other devices can’t solve. Let’s go over the four primary ways how online retail stores can use cloud computing to their advantage.

1. Ease of Scaling

The coronavirus pandemic has shown that retail needs to be prepared for dramatic changes in consumer needs. Cloud computing can help to stay competitive and satisfy the market. So, during the COVID-19 pandemic, even the largest retail stores were forced to adapt to new expectations.

For example, not all stores, including the Walmart giant, had an online presence in some countries. Self-isolation and quarantine contributed to the rapid response of retailers. Cloud computing has played a key role in scaling businesses and entering new sites. Those businesses that couldn’t quickly rebuild their processes had to lose the fight to those who were able to.

Cloud computing simplifies scaling up or down the power of an IT solution. It provides the ability to add resources to an account quickly or to remove those resources instantaneously. With this powerful tool, you don’t have to worry about space usage or the fear that customers won’t be able to access your online store because the storage has run out.

In just a couple of clicks, IT administrators can expand the number of virtual machines. They can provide and customize services and reduce the cost of a large onsite IT staff.

2. Site Performance as an SEO Bonus

Website speed plays a critical role in the success of eСommerce businesses. Several studies prove that users will leave the page if it takes more than three seconds to load.

During the holidays, a sudden spike in traffic can slow down your site. Thus, it will stop responding. As a result, the bounce rate will increase, and the conversions will drop.

Statistics illustrate that to achieve maximum conversion rates in eCommerce, store owners must ensure site speed between 0-2 seconds. These numbers are ideal, and in real life, this metric should be 4 seconds maximum as with the increase of page load time, the conversion rate falls by an average of 1.2% with every second of waiting.

Transaction Conversion Rates

Transaction Conversion Rates

The cloud improves availability and reduces network performance latency. The point is that cloud service providers store data alongside their user base. It helps to achieve low latency. Availability is the result of a 24/7 team dedicated to delivering consistent cloud services.

Also, high performance and speed have a positive effect on SEO. Sites that load quickly and provide a pleasant user experience will be better perceived by search engines when ranking. It will increase traffic to your eCommerce store. As a result, thanks to cloud computing, your website will work flawlessly. And you will prosper with SEO and user-friendliness.

3. Reduction in Expenses with eCommerce Cloud Computing

Cloud computing lowers IT costs. Since stores don’t need to buy their own equipment, they can use that money for other needs. It is meaningful for fast-growing stores. Because buying new equipment is inconvenient and expensive, cloud computing can quickly expand resources.

Besides, large data centers consume a lot of electricity and space. Therefore, with cloud applications, eCommerce stores can reduce electricity bills and increase space.

Plus, cloud solutions help to save on labor and maintenance. Thus, IT staff can use the freed-up time for more critical parts of the development.

Employees, in turn, can benefit from cloud-based tools, from video conferencing services to accounting software. They are designed to organize and securely store company data and finances. These factors foster labor productivity.

4. Data Protection

Online stores have large volumes of confidential user information at their disposal. Because customers trust their addresses, card numbers, and phone numbers, they expect their data to be protected. And if a leak occurs, the store can irretrievably lose its reputation. Cloud technology provides secure data storage as professionals monitor them.

Modern technologies and strong policies designed for IT environments protect the cloud from attacks and leaks. Independent third-party auditors ensure that the cloud storage organization meets the highest standards.

Case in point, Standards for System and Organization Controls (SOC). This standard shows that a cloud service provider has limited access to information systems. It also evaluates system security and availability, processing integrity, and confidentiality. Also, as online stores operate with various forms of payment, cloud providers must comply with PCI requirements.

Wrapping Up

Technology, including cloud services, is changing the eCommerce marketplace for everyone involved. Cloud technologies revealed their advantages in the last year and proved their effectiveness for eCommerce businesses.

Cloud computing can empower and enhance online retail sites from direct benefits such as data security to less obvious customer acquisition through better search rankings. The listed benefits of the cloud are just the tip of the iceberg. The future of eCommerce will surely be full of innovations and unexpected changes that will take businesses to the next level.

Alex Husar
Alex Husar, Chief Technology Officer at Onilab with almost a decade of successful Magento migration and PWA development projects for eCommerce companies around the globe. Being a Computer Software Engineering specialist, Alex is equally competent both in terms of full-stack dev skills and the capability to provide project-critical guidance to the team.

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