ecommerce 1 - Why Cloud Solutions Are Great for eCommerce

Why Cloud Solutions Are Great for eCommerce

March 21, 2017
Emma Johnson

If you run an eCommerce store as a primary source of revenue, one of the essential things to do is to of course eliminate expenditures as much as possible and promote efficiency. One of the easiest and most cost-effective ways to do that is by moving your webstore away from a server-based model and into a cloud-based eCommerce solution.

When it comes to marketing there are many reasons to go with cloud-based eCommerce solutions. The primary one though, is saving money. With a much smaller down payment, no equipment purchases and not having to hire a trained eCommerce IT specialist, using the cloud for your eCommerce needs minimizes your upfront costs while giving you the flexibility to expand and contract your business as the market shifts. With no physical hardware to purchase, you are also relieved of the costs of maintenance and care.

The future of internet commerce

As technology improves and profit margins contract, finding ways to save money while maintaining an updated and usable eCommerce website becomes easier.

By using cloud-based solutions, your company can avoid the cost vs profit paradigm that traditional expansion always brings. For example, if a retail company wants to expand its sales in an area, it must obtain property, structures and the tools to make sales. Cloud-based eCommerce solutions assume those costs and charge you for the services that you use from them.

Costs breakdown

Although the creation and implementation of eCommerce has inherent expenses, the savings over time will more than make up for costs, if you opt for the cloud.

Four areas stand out for cost savings:

1. Equipment costs

Using a cloud-based solution removes the cost of any specialized equipment.

2. Minimal maintenance

Without the specialized equipment, there is no need for specialized technicians to maintain it. Let your providers take care of the maintenance.

3. Improved security

It goes without saying that most companies invest a lot in security, so that leaves you to focus more on the job you need to do than dealing with potentially malicious attacks.

4. Endless scalability

Scalability is one of cloud-based eCommerce’s big advantages. If your business is growing, you can quickly and easily expand your capabilities without having to purchase additional physical hardware. The reverse is also true, and your business can be scaled back without having wasted money on unused equipment.

Cloud vs On-premise

There are advantages to outright owning the servers, hardware and licenses to use specific eCommerce software. Very few of those advantages are financial, however. Hardware maintenance, security, data management are real costs that companies must assume, in addition to the costs of the equipment and staff, but it does give eCommerce companies a lot more control over the whole process.

In most cases, however, the management of the system is only cost effective for very large and successful companies. One of the nice things about cloud-based eCommerce solutions is that if you are unhappy with how they work, you have the option of switching to another provider. Your financial losses will be minimal compared to the startup and maintenance costs of on-premise eCommerce.

Final Words

Since spending your money wisely is important for anyone with an online retail store, cloud-based eCommerce is an attractive alternative to funding and maintaining an on-premise online shop. Cloud-based eCommerce promises to help in minimizing costs while maximizing profits, and for the clear majority of businesses it is the solution to expansion and capitalizing on a variable market with the least amount of startup costs and risk for the retailer.

Author bio: Sam Cyrus is CEO and co-founder of Agseosydney, a Digital Marketing agency from Australia. Sam is also a creative writer and likes to share his insights on entrepreneurship, business, online marketing, SEO and social media.

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