Cloud Based eCommerce – A Bad or Rad Idea for Retailers?

When Alibaba invested in cloud based ecommerce, it effectively grew in double digits by Q3 2024. In fact, South China Morning Post reported the eCommerce mogul’s net income exceeded analysts’ estimates, surging to $6 billion in the quarter.

“But my business isn’t as big” – if this is the only reason why you haven’t began considering cloud technologies as part of your eCommerce platform, you’re missing out big time.

What is Cloud eCommerce?

Cloud eCommerce entails using cloud-based technologies and services to power an online store.

So, rather than traditional, on-premise servers and software, a cloud eCommerce platform is hosted entirely online. This is possible via cloud environments provided by third-party vendors like AWS, or fully managed solutions like Shopify Plus.

Through these environments, businesses can manage different aspects such as their storefront, inventory, payments, and analytics from anywhere with an internet connection.

At its core, cloud eCommerce decouples the front-end and back-end layers of an online store from physical infrastructure. So, the application layer (storefront, CMS, checkout, APIs) and data layer (databases, product catalogs, customer data) are hosted on remote servers.

Cloud eCommerce is especially appealing for retailers looking for agility, speed, and the ability to scale quickly in a highly competitive digital marketplace. However, like any technology, it comes with trade-offs—something we’ll unpack further in the next sections.

Key Benefits of Taking Your eCommerce Business to the Cloud

Jumping on the cloud based ecommerce bandwagon offers many benefits, which is why it’s popular with modern retailers.

• Scalability – Cloud eCommerce platforms can handle increased traffic and sales volumes effortlessly, and ensure smooth performance.
• Cost Efficiency – Moving to the cloud spares you from heavy upfront investments in servers and infrastructure. Cloud-based models operate on subscription or pay-as-you-go pricing, making it ideal for growing businesses.
• Faster Deployment – You can launch your online store or new features quickly without waiting on a lengthy setup or development cycles.
• Automatic Updates and Maintenance – Cloud providers handle software updates, bug fixes, security patches, and performance improvements for you.
• Global Accessibility – With an active internet connection, you can access your eCommerce dashboard, analytics, and inventory from anywhere. This makes remote management and collaboration very easy.
• Enhanced Security – Renowned cloud solution e commerce providers invest heavily in enterprise-grade security such as DDoS protection and firewalls. This further ensures your business’ compliance with standards like PCI DSS and GDPR.
• Better Performance and Uptime – The use of built-in redundancy, load balancing, and content delivery networks (CDNs) ensures faster load times and higher uptime. As a result, your customers enjoy a smooth, uninterrupted shopping experience.
• Easier Integration and Customization – Cloud based ecommerce systems often use APIs and modular architecture. This allows them to connect with third-party tools such as CRMs, ERPs, and marketing automation platforms.

Now you get what you’re missing by not taking your business to the cloud?

💡 Cloud may not be the only technology you should consider. Your eCommerce growth strategy can benefit from the addition of several innovations such as AI.

Is Cloud Based eCommerce Right for You?

As tempting as the above benefits may be, cloud-based eCommerce solutions aren’t a one-size-fits-all solution. So, you’ll need to factor in your current needs, future goals, and technical capabilities while making a decision.  

When to Say ‘Yay’ to the Cloud

This is an option you’ll need to seriously consider for your future growth if –

• Your business is growing fast or has seasonal spikes. 
• You need to launch or iterate fast.
• You lack in-house IT resources for maintenance, updates, and security.
• You’re aiming for omnichannel and a multi-platform retail strategy.
• You operate internationally and wish to benefit from features like global CDN networks and multi-currency support

When to Say ‘Nay’

Investing in cloud native ecommerce may not be the right idea for your business at the moment if –

• You require deep, custom-built functionality and full control over your tech stack.
• You want full ownership of the infrastructure.
• Your business has strict regulatory, data residency, or compliance needs that require on-premise hosting.
• Your eCommerce platform receives high-volume traffic but you’re working with a very tight budget.
• Your website uses premium services and third-party add-ons.

That said, just because you can’t take your platform to the cloud doesn’t mean the end of the road for you. You can invest in eCommerce optimization services  and strategies to improve your platform’s appeal to potential and existing customers.

Thriving Cloud-based eCommerce Businesses to Inspire You

In addition to Alibaba, several renowned eCommerce businesses have fared well after becoming cloud-based. Here are four examples to inspire you.

Gymshark

Gymshark migrated from Magento to Shopify Plus to handle its growth and reduce downtime during sales events. Its cloud based ecommerce platform now enjoys –

• 100% uptime during Black Friday with over 200,000 concurrent users
• A faster checkout experience that resulted in higher conversions
• Improved backend flexibility through app integrations and APIs

Coca-Cola

Coca-Cola European Partners used Salesforce Commerce Cloud to create a self-service eCommerce portal for B2B customers. As a result, the popular beverages producer –

• Sped up the ordering process for retail partners by 60%
• Improved personalization and product recommendations
• Scaled easily across multiple European markets

Nike

Nike migrated much of its digital infrastructure, including its eCommerce backend, to AWS in hopes of enabling global scalability and real-time customer experiences. With this step, it –

• Improved site speed and availability across global markets
• Enhanced data analytics and customer segmentation
• Supported the brand’s direct-to-consumer (DTC) strategy more efficiently

Unilever

Unilever is a well-renowned customer goods brand. It launched over 50 D2C websites across brands using Adobe’s cloud commerce platform. Due to this decision, it was able to –

• Reduce development time through reusable architecture
• Integrate marketing and analytics tools more effectively
• Support a higher volume of transactions with secure, scalable infrastructure

Ready to Usher Your Business to the Future of eCommerce?

DPL can help. In addition to decades of providing eCommerce software development services, we have skilled cloud experts who can effortlessly pull off your migration.

So, if your next project is to integrate cloud computing in e commerce, simply fill the form below to start right away.