Importance of cloud solutions in the e-commerce sector – Sandeep Sekhar

E-commerce has evolved rapidly with rising gains over the past few years, but it is the ongoing pandemic that has given catalytic growth to the industry. Even traditional businesses have undergone digital transformations to meet the needs of their customers through multichannel or omnichannel options, with the e-commerce channel being the most important.

Therefore, the dilemma for businesses is whether to focus their energies on developing IT skills and capabilities or focus on their core business. If your business is to sell flowers, shoes or clothes, or any other retail product, focusing more on developing IT skills will come at the expense of the core business. This is where cloud solutions play an important role as they offer targeted and customized services for the client’s industry. Businesses venturing into e-commerce can take advantage of pre-built, easily implementable, widely used, and well-tested cloud services that will increase sales, improve performance, and leave the headache of infrastructure management behind. computing to the cloud service provider. For example, using a pre-installed online store platform makes it easy for a business to create its own online store. The cloud service is then probably one of the quickest and cheapest intermediaries to cater to old online customers and expand reach to new customers and markets.

According to “Retail Cloud Market”, a 2019 research report by Fortune Business Insights, the global retail cloud market was worth $11.89 billion in 2018 and is expected to be worth $39.63 billion by the end of 2026. All this is pre-data and projections on the pandemic; post-pandemic, the e-commerce cloud computing market may grow faster than the projected CAGR of 16.3%.

E-commerce players, whether established or newly established and digitally transformed, the benefits of available cloud solutions are many.

Easy and cost-effective scalability: Cloud solutions enable companies to expand their online/e-commerce presence quickly and in sync with business growth, changing demands and other environmental factors. Investing in own servers and other IT infrastructure to scale operations takes time, which incurs opportunity costs for the core business. It also requires huge financial resources, which again slows down the growth of the business.

Extended Stability: Sudden or seasonal spikes due to promotions or sales can cause unusual traffic to a site, causing the system to crash. This leaves dissatisfied and unhappy customers and loss of business and sales opportunities for the company. Cloud-hosted solutions have a more comprehensive range and are better equipped to handle sudden spikes in traffic and demand, ensuring a seamless customer experience and optimal business performance.

Essential broadband for e-commerce sites: The average online customer is impatient and will leave a website that is slow to load. According to research conducted by Retail System Research and published by cloud-based e-commerce platform Yottaa Inc., 90% of shoppers will abandon a site if it doesn’t load within a reasonable amount of time. According to another data set, 47% of consumers expect a web page to load in 2 seconds or less. A one-second delay in page response can lead to a 7% reduction in conversions. If an e-commerce site is making $100,000 a day, a one-second delay on the page could potentially cost the company $2.5 million in lost sales each year. Once again, cloud-based solutions score much higher in speed than standalone and hosted infrastructure for e-commerce businesses. Cloud-hosted sites operate with unlimited resources; therefore, the sites operate at high speed.

Since the pandemic, the demand for digital business platforms has increased dramatically, which has radically transformed the business landscape. So much so that, for example, Salesforce Commerce Cloud has released four quick-start commerce packages specifically designed to help conduct business during a pandemic. -commerce’s cloud solutions enable retailers, large and small, to quickly design and deploy and efficiently manage their e-commerce capabilities. This, in turn, provides their customers with seamless omnichannel experiences and enables the company to meet ever-changing customer expectations.

Cloud adoption across different industries has played a vital role in driving retailers to procure and deploy cloud services. Cloud solutions also have the financial advantage of shifting capital expenditures to operational expenditures, which lowers the total cost of ownership.

B2C commerce platforms, by delivering personalized experiences, driving customer engagement, and enabling sales and retention across all channels, are expected to gain maximum traction as brands and retailers seek to deliver experiences seamless shopping opportunities to their customers. These platforms harness the ability of artificial intelligence to generate revenue by evaluating consumer information in real time and will increase conversions with smart and intelligent search results. The demand for B2C Commerce Cloud solutions is expected to further increase the demand for online shopping among consumers in the future.

Several major players in cloud solutions, such as IBM, Salesforce, Oracle, SAP, Amazon, Web Services, Adobe and Google, and many small and large players are also emerging. To expand their global presence and attract maximum market share, e-commerce players are considering business expansion and establishing strategic partnerships and collaborations with retailers around the world. Therefore, cloud solution providers are also making significant investments to create innovative solutions. E-commerce players can wisely choose the right cloud partner from a wide selection of providers to do business in a secure environment that fits their pocket.

Warning: The views expressed in the above article are those of the authors and do not necessarily represent or reflect the views of this publishing house. Unless otherwise indicated, the author writes in a personal capacity. They are not intended and should not be taken to represent the official ideas, attitudes or policies of any agency or institution.