SaaS eCommerce Features & Benefits

Although cloud-based eCommerce has been around for the last decade, only recently it actually became widely available across retailers and a mainstream term in our vocabulary. In this article we will revisit some basic terminology and explain the benefits of cloud-based or SaaS eCommerce which make them such a popular option.

What does “cloud” or “SaaS” eCommerce mean? Starting from the “eCommerce” term, it refers to electronic commerce or internet commerce and is -simply put- online shopping. More elaborately, eCommerce is defined by the activity of purchasing or providing goods and/or services online for a set (or sometimes negotiable) price. eCommerce does no only refer to B2C commerce (clients buying from businesses), but it can also refer to B2B (businesses buying products or services from other businesses). Similarly, eCommerce does not only refer to direct retail services, but it also includes online auctions (think about e-Bay) and online markets (where buyers and suppliers can interact and trade with each other).

“Cloud” and “SaaS” eCommerce refer to novel ways of conducting online shopping. It might sound trivial, but it is not as straightforward. Before the introduction of clouds, online shopping was conducted via on-premise storage, meaning that a company would buy a server with specific storage space, place it in their headquarters, and hope that it would a) be enough to support the business needs and b) not break down, nor need technical support. This server would host all the data, would be used to develop the website and the online shopping features and everything would be run by this one unit. However, with increased traffic the need for storage space increased as well, meaning that the on-premise storage options would not be sustainable, not only from a maintenance cost perspective, but also with regards to storage scalability and performance speed. Hence, other options needed to be developed, and data storage on a cloud was born. Cloud storage is a remote storage “facility”, run by a third-party provider, where online business owners can buy storage space and bandwidth, and sometimes data access. Besides being used for eCommerce, cloud platforms have found vast application in organizations handling large volume of data, such as universities and research facilities. Also, nowadays, everyone can get their own “little cloud” when signing up for a Google account.

“SaaS” stands for “Software as a Service” and, with regards to eCommerce, it refers to software licensing options that allow easy access to data stored on clouds. What it really means, is that companies can subscribe to a package offered from SaaS providers and they do not have to worry about server maintenance, storage issues, software glitches, backups and other common tech problems, as the third-party owner is responsible for the maintenance of the cloud and the software. It can be argued that investing on a SaaS platform is like a one-stop-shop, where with one click the retailer can have their e-shop set up, in a hassle-free manner. Majority of providers offer highly customizable and variable products, ensuring that the needs of the customers are met through frequently updated plugins, extensions and new applications.

Great! Now that we explained what a cloud-based or SaaS eCommerce platform is, we shall provide some examples of widely used providers, to give context to the theory. Until recently, the most widely used and reliable providers for eCommerce platforms were Shopify and BigCommerce, however, emerging candidates have entered the cloud arena fighting for a piece of the pie. Brands such as Magento Go, NetSuite, Demandware, Big Cartel, Volusion, Venda, Goodsie and others are offering their services, to a great variety of customers. Each platform tries to differentiate from the others, by offering services relevant to specific clientele, for example Big Cartel is usually behind artistic ventures, whereas Demandware is preferred among large and established companies.

Top Benefits of Cloud-based and SaaS eCommerce Platforms

There are several other benefits to cloud and SaaS eCommerce platforms other than larger data allowance than on-premise platforms.

• SaaS eCommerce Overview
• How the eCommerce Industry is Moving to a SaaS-Based Solution
• Business Improvements with SaaS eCommerce
• On-Premise eCommerce Platform Benefits
• How to Select an ERP Saas Solution
• Integrating an Azure SaaS-Based eCommerce Solution
• Integrating an Oracle SaaS-Based eCommerce Solution
• Integrating a SAP SaaS-Based eCommerce Solution
• Comparing On-Premise and Cloud eCommerce Platforms