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Commerce 4.0: How online retailers benefit from the cloud

by Editorial Office

International retailers need a flexible, scalable and secure sales platform to stand out from the competition in booming European e-commerce and win over customers. The cloud is particularly suitable for this endeavor. We present the potential of cloud commerce and show you what is important when choosing a suitable solution.

Innovative shopping experiences – thanks to cloud commerce platforms

The use of cloud-based commerce solutions in e-commerce received further impetus during the Corona pandemic: Recent studies, including the one conducted by software company Flexera, show that more than 50 percent of European and global companies already make intensive use of paid cloud computing services and have reached an advanced level of cloud maturity. Nine out of ten companies surveyed expect the cloud adoption accelerated by the pandemic to continue to exceed planned IT budgets in 2021.

Cloud computing offers great potential for online retailers in particular: with the technology, they are able to meet increasing demands on their commerce systems. A cloud-based e-commerce platform provides a reliable basis for growth, increased sales, and innovative services needed in order to offer consumers unique shopping experiences.

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Fast and flexible market adaptation through cloud commerce system

In the fast-moving e-commerce business, online retailers are constantly being asked to adapt their own offering or business model – for example, when it comes to opening up new markets or expanding the target group. Online stores must be able to keep pace with strategic realignment and be quickly adaptable. A cloud-based e-commerce platform makes it possible to implement technical changes at any time and without lengthy update processes, which means that defined goals can be realized much more quickly. Thanks to the modular structure, no in-depth IT expertise is required to adapt or scale the commerce system.

Cloud Commerce: More revenue thanks to scalability

Every vendor will be pleased when a particularly large number of consumers visit their own web store. However, if the traffic is too high, it can cause systems to buckle under the load. Instead of completing the purchase, consumers receive an error message. With a cloud commerce system, retailers ensure stability and performance even at times of increased customer traffic. Whether during predictable load peaks such as the pre-Christmas period or a brief increase in product demand triggered by influencers, for example: In the cloud, additional IT resources are available on demand. This increases the opportunity to benefit in the short term from the record sales in European e-commerce. Especially in the case of an expansion, there are usually new scaling requirements.

Cloud commerce systems also offer added value through the connection of external systems, applications and software solutions. Open interfaces enable non-complicated connectivity and thus seamless communication within the entire infrastructure.

Cost-efficient and secure: cloud services offered by established providers

Due to the unrestricted scalability, resources can be used particularly cost-efficiently. With established providers, billing is often based on the “pay-as-you-go” (PAYG) principle: payment is made for services used and not for a general provision of resources. Thanks to the rental model, retailers always retain an overview of costs and avoid major investments in infrastructure. The provider is responsible for IT administration and services such as system updates or maintenance work. This also pays off in terms of data security: Cloud solutions are constantly optimized, updated and certified by external testing institutes – based on the strict data protection regulations in Europe or those of the respective European target market.

Perfecting the customer experience – thanks to cloud and AI

Cloud computing in e-commerce is now proving to be much more than the mere provision of computing capacity on the Internet. Providers are increasingly enabling more innovative additional services and tools – for example, for the use of artificial intelligence (AI) or the Internet of Things (IoT). This gives e-commerce retailers the opportunity to meet increasing customer demands for personalized online shopping. Consumers are only presented with offers that suit their individual tastes – at a time when they are most willing to buy. By intelligently processing personal customer data, the customer experience can be optimized across all channels – with the aim of committing consumers in the long term.

Success and future viability through cloud commerce

More flexibility, stability and security: Cloud Commerce offers online retailers innovative and holistic solutions to keep pace with the rapid development of the e-commerce market and maintain high performing online stores. At the same time, the financial risks prove to be manageable due to the leasing model. Since providers often offer complete packages and take over the technical maintenance of the cloud commerce system, retailers can concentrate on their core competencies and strategically drive forward potential expansion projects.

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