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Future of E-Commerce: How Cloud Computing Will Affect It

Cloud computing will greatly influence e-commerce. Learn the key factors of cloud computing that will shape the future of eCommerce industry.

Future of E-Commerce: How Cloud Computing Will Affect It

Tuesday April 12, 2022,

6 min Read

Cloud computing is changing the way businesses operate. It has already had a major impact on the way we use technology, and it will only become more important in the future. 

One area where cloud computing has a particularly big impact is e-commerce. Here, we will discuss how cloud computing changes e-commerce and how businesses can take advantage of it.

Stay tuned for some exciting predictions about e-commerce!

How Does Cloud Computing Relate To E-Commerce?

Cloud computing development uses the Internet to store and process data, allowing businesses to outsource their computer processing needs.

Ecommerce offers many advantages for cloud computing.

First, the e-commerce industry has historically struggled with delivery issues. The Internet has made it possible for customers to place orders from any location, but that convenience comes with a cost in terms of shipping costs and order fulfillment times. 

But by hosting their e-commerce sites on cloud computing platforms, merchants can offload much of the server processing work. These third-party systems still retain full control over the look and feel of their online stores.

Many eCommerce sites have outsourced other parts of their business to cloud computing platforms. One company that uses Amazon Web Services is Zappos, an online shoe retailer. 

Zappos runs its website on AWS because it provides a highly sophisticated platform for automatically generating product recommendations based on customer buying patterns. 

The site can also dynamically reorder products based on customer demand at no additional cost.

Benefits Of Cloud Computing In E-Commerce

Cloud computing is one of the biggest technology trends of the last decade. According to a recent report, it's predicted to become a $270 billion market by 2020. 

The cloud is changing how business is done across nearly all industries, and online retail is no exception. Businesses large and small use the cloud to simplify their back-end operations, improve their customer service, and make their information more accessible. The seven benefits of cloud computing are:

1. Easy access from anywhere

Cloud-based software can be accessed from anywhere you have an Internet connection and a web browser. 

If you're out of the office, checking inventory or accessing information about a customer order is as simple as logging in to your account online. Your employees also have access to this important data 24/7 through mobile devices like smartphones and tablets, which means they can help customers with questions while they're on the go.

2. Highly flexible

One of the biggest advantages of a cloud server is its high flexibility. The user can easily scale up or down according to their needs or budget.

3. Lower operating costs

You do not have to purchase expensive software or hardware with cloud computing. Instead, you pay for only what you use. 

This eliminates the need to worry about maintaining your IT infrastructure and keeping your equipment up-to-date without major investments. Plus, with the ability to scale up or down as needed, you never have to make large purchases that you may not need in the future.

4. Third-party storage and management.

Another major benefit of cloud computing for eCommerce is that it allows you to outsource some of your storage needs to third parties such as Amazon Web Services (AWS). 

AWS offers various storage services that can store data for your website, including photos, videos, and customer information. This can free up space on your servers and save you money on infrastructure costs.

5. Improved security.

When you store data in the cloud, it's typically more secure than keeping it on your servers. That's because cloud providers have teams of security experts who constantly monitor their systems for threats. They also have processes to identify and fix any security vulnerabilities that may arise quickly.

6. No technical expertise is required.

Cloud-based software does not require any technical knowledge or expertise. There are no installation fees, no licensing fees, and most have free trials so you can test before committing. You also do not have to hire a highly-skilled IT professional to manage your systems because cloud providers manage them.

7. Faster deployments.

One of the giant advantages of using the cloud is that it can deploy new features and updates to your website much faster than hosting everything on your servers. You don't have to worry about configuring and maintaining your infrastructure. Instead, you can focus on developing your website and adding new features that will improve the experience for your customers.

In today's business world, the cloud is becoming more and more essential. By taking advantage of the many benefits, you can give your eCommerce business a competitive edge.

Disadvantages Of Cloud Computing In E-Commerce

The biggest disadvantage of cloud computing is the security issues when allowing your data to live in a virtual space. Cloud services are susceptible to hacking, which can have serious repercussions for your business should criminals gain access to your data.

  • Cloud computing could also potentially increase costs for your business. If cloud service providers limit the amount of storage space offered for free, you may pay more, depending on how much data you store in the cloud.

  • While cloud services make managing and backing up your data more convenient, you're dependent on a good internet connection to access it. If you don't have a good internet connection, it could not be easy to access your files or even use your computer.

Future of Cloud Computing in eCommerce Industry

The eCommerce industry has been revolutionized by two major trends: the rapid spread of mobile devices, and the rapid rise of cloud computing. These two utterly intertwined trends have changed the face of the industry forever.

The advent of smartphones and tablets has allowed for web-based businesses to go mobile, giving users unprecedented access to goods and services from any location.

The use of cloud computing in the eCommerce industry is growing at an exponential rate. This growth is being driven by the need for businesses to be able to store and access data from any location, as well as the need for businesses to be able to scale their operations quickly and easily. The cloud provides a cost-effective and flexible solution for businesses of all sizes.

Businesses are increasingly turning to the cloud for their data storage and processing needs, and the trend shows no signs of slowing down. With the advent of new technologies such as containers and server-less architecture, businesses will be able to further reduce their IT costs while still getting all the benefits of using cloud resources.

Final thoughts

The cloud is not just about servers and storage. It could be about collaboration tools, business apps, data analytics, or customer-facing services. The cloud can be used to run the whole eCommerce business. The cloud is the future of eCommerce, and some businesses will use only the cloud to run their entire business.

The final words on cloud computing are that it's here to stay and will continue to grow in importance as more companies realize its potential and benefits.