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Importance Of Cloud Solutions In The E-Commerce Sector

Cloud-hosted solutions have a more comprehensive range and are better equipped to manage sudden spikes in traffic and demand, thereby ensuring a seamless experience for customers and optimal business performance.

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The e-commerce has been changing rapidly with up ward gains in the last few years, but it is the ongoing pandemic that has given catalytic growth to the industry. Even traditional businesses have undergone digital transformations to cater to their customers through multichannel or omnichannel options, e-commerce channel being the most important.

Therefore, the dilemma for businesses is whether to concentrate their energies on developing IT skills and capabilities or to focus on their core business. If your business is to sell flowers or shoes or garments, or any other retail product, shifting focus on building the IT skills will be at the cost of the core business. This is where Cloud Solutions play a significant role as they offer focused services customized for the client’s sector. Businesses venturing into e-commerce can take advantage of the pre-built, easily implementable, widely used, and well-tested cloud services, which will increase sales, boost performance and leave the headache of IT infrastructure management to the cloud service provider. For example, using a pre-installed online store platform eases creating its own online store for a business. The cloud service is then possibly one of the fastest and cheapest intermediates to cater to old customers online and expand the reach to new customers and markets.

As per the ‘Retail Cloud Market’, a 2019 research report by Fortune Business Insights, the global retail cloud market stood at USD 11.89 Billion in 2018 and is expected to be worth USD 39.63 Billion by the end of 2026. This is all pre-pandemic data and projection; post-pandemic, the cloud computing market for e-commerce can grow faster than the projected CAGR of 16.3%.

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

Easy& Cost-effective Scalability: Cloud solutions enable enterprises to scale up 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 up operations requires time, resulting in opportunity costs for the core business. It also requires enormous financial resources, which again slows down the enterprise growth.

Wide-ranging Stability: Sudden or seasonal spikes due to promotion or sale can cause unusual traffic on a site, causing the system to crash. This leaves dissatisfied and disgruntled customers and loss of business and sale opportunity for the enterprise. Cloud-hosted solutions have a more comprehensive range and are better equipped to manage sudden spikes in traffic and demand, thereby ensuring a seamless experience for customers and optimal business performance.

High-speed a must for e-commerce sites: An average online customer is impatient and will leave a website that is slow to load. As per research conducted by Retail System Research and released by e-commerce cloud platform Yottaa Inc., 90% of shoppers will abandon a site if it does not load in a reasonable time. As per another set of data,47% of consumers expect a web page to load in 2 seconds or less. A1-second delay in page response can result in a 7% reduction in conversions. If an e-commerce site is making $100,000 per day, a 1-second page delay could potentially cost the business $2.5 million in lost sales every year. Once again, cloud-based solutions score much higher on speed than self-owned and hosted infrastructure for e-commerce businesses. Cloud-hosted sites run on unlimited resources; hence sites run at top-speed.

Since the pandemic, there has been a significant increase in the demand for digital business platforms, which has drastically transformed the business landscape. So much so that, as an example, Salesforce Commerce Cloud released four quick start pandemic business packages specifically designed to help conduct business during the pandemic times. The -commerce cloud solutions enable retail businesses, whether large or small, to quickly design and deploy, and manage their e-commerce capabilities effectively. This in turn, gives their customers seamless omnichannel experiences and lets the business fulfill its customers’ evolving expectations.

The adoption of cloud across different industries has played an essential role in influencing retailers to procure and deploy cloud services. Cloud solutions also come with the financial advantage of moving capital expenditure to operating expenditure, resulting in a lower total ownership cost.

B2C Commerce platforms, by offering personalized experiences, driving customer engagement, and enabling sales and loyalty across channels, are expected to gain maximum traction as brands and retailers are looking to give seamless shopping experiences to their customers. These platforms harness the ability of artificial intelligence to drive revenue by evaluating real-time consumer insights and will increase conversions with smart & intelligent search results. The demand for B2C Commerce Cloud solutions is expected to increase further the demand for online shopping amongst consumers in the future.

Several major cloud solutions players, such as IBM, Salesforce, Oracle, SAP, Amazon, Web Services, Adobe and Google, and many small and -sized players, are also emerging. To expand their global presence and attract maximum market share, the e-commerce players are eyeing business expansion and are making strategic partnerships and collaborations with retailers worldwide. Hence, 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 fit their pocket.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

Sandeep Sekhar

Chairman & Global CEO, C Ahead Digital

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