The eCommerce sector is booming. What started with doorstep delivery of books, has now changed the way people shop. Today, everything from cakes and flowers to large appliances like washing machines is delivered right at your doorstep. Along with the top players like Amazon and eBay, there are thousands of local players that operate in specific regions around the globe and focus on niche products. For most of them, setting up on-site servers, or tying up with warehouse and delivery partners prove to be a difficult task. Smaller companies with fewer than tenC full-time employees, find it difficult to even build and maintain websites. Customer care woes, packaging and delivery, and handling returns are also harder and costlier for small or mid-size eCommerce companies since they cannot provide the bulk orders required for lower service charges by delivery partners, warehouses and other service providers.
The online boom was first predicted by Amazon, and that’s why it launched its Amazon Web Services Inc, its on-demand web services platform, way back in 2006. Although Google and Microsoft are also top competitors in this field (along with many smaller providers), Amazon AWS has a huge advantage of being the first to build cloud infrastructure and has a huge dominance in the sector. From Dow Jones to Airbnb, everyone is using Amazon AWS to make sure that setting up and maintaining business infrastructure is easier.
Having on-site servers has become a thing of the past. The reasons behind this are many-
Hence most websites, today use EC2 instances on AWS to set up their servers. The biggest benefits that eCommerce sites gain on using EC2 instances is that they are charged as per usage, and at times of peak usage, extra resources are automatically allotted to them, and the charges are higher only during the peak usage time.
While an EC2 helps you set up a managed server in the cloud, Amazon RDS helps you set up a managed database in the cloud. Database options range from Amazon Aurora, MySQL, PostgreSQL, MariaDB and more.
In addition to databases and servers, there’s also a need for storage space on the cloud. This might be for various reasons- to store product images, product videos, customer information, and more.
For this, AWS has its S3 service that is charged at only $0.023/50TB per month, after the free layer of 5GB. The plus side is that it guarantees a 99.99% availability throughout the year and durability of 99.999999999% of objects across multiple Availability Zones.
Notifications have become a vital part of the eCommerce industry. Whether you want to notify a customer that his order has been shipped, or a partner that a product needs to be packed and ready, or your developer team that a country-specific website is down, notifications are the key to communications. Amazon SNS makes it easier by providing you with different types of notification services across your website.
Serverless architecture has been the buzzword for some time now. And Amazon Lambda is a way of writing serverless code. It helps you run your code without managing or provisioning servers. You run your code and AWS scales it from tens of requests per day to thousands of them per second based on the need. Like any other service, this one is also charged based on usage only.
Amazon Marketplace is a place for companies that do not have their own websites but want to reach out to a wider audience. Companies selling on Amazon have two options- FBM (fulfilment by merchant) or FBA (fulfilment by Amazon). In recent years, manufacturing has seen huge growth, and third-party sellers are selling both used and new goods across Amazon, accessing Amazon’s huge customer base, at nominal pricing.
Like we mentioned before, under Amazon Marketplace, sellers can opt for the FBA or fulfilment by Amazon. Under this, Amazon will pick, pack and ship your products. Amazon’s fulfilment centres will be processing your orders.
You will be availing multiple benefits-
Amazon’s advertising services are not just for businesses that sell on Amazon but for any brand that wants its advertisement to reach its huge customer base. If you are already selling your products on Amazon but need better visibility, you could use Amazon Ads that appear based on certain search results on product pages. You could also make your logo and a customized banner visible for search result pages of certain keywords.
In case you are a big electronics or apparel brand, you could even have your very own multi-page brand store on Amazon. Whether you sell on Amazon or not, you can buy both video or text-based advertisements on different areas of Amazon webpages.
Accepting payments is a major hassle for most eCommerce companies. And most companies have started to add other payment options, like e-wallets along with traditional card payment options in their checkout pages.
The benefits of using Amazon Pay in your eCommerce website is that millions of Amazon customers already use the Amazon Pay wallet and they would not think twice or worry about paying at some new website because they will have their trust on Amazon Pay.
Using Amazon Pay would also reduce drops at checkouts due to a one-click payment option, and would lead to increased conversions.
Third-party sellers on Amazon have been increasing at a massive pace. Currently, they capture more than 50% of the total sales on Amazon. At the same time, Amazon is also trying to boost other companies that do not sell on its marketplace by providing them with various services. So in case, you are running an eCommerce website or even a startup that needs any of the services that we mentioned, it’s better that you use existing services instead of trying to reinvent the wheel.