The power of SaaS in eCommerce

The-power-of-SaaS-in-eCommerce
At a Glance

By mimicking the shopping experience on a website, eCommerce enables the purchase and payment of anything that can normally be purchased in person over the internet. SaaS solutions are majorly cloud-based and extendable with other services, allowing customers to quickly get access to new functionality. The ecommerce business is fueled by SaaS, which increases overall productivity.


What is eCommerce?

The same way that email stands for “electronic mail,” eCommerce stands for “electronic commerce.” eCommerce refers to any form of economic transaction that takes place through the internet, with the primary focus on the purchase and sale of goods and services. This vast category includes anything from digitally downloaded ebooks, games, and music to apparel and accessories, contractual services, and more.

In a nutshell, eCommerce enables the purchase and payment of anything that can ordinarily be purchased in person over the internet by simulating the purchasing experience on a website. The usage of eCommerce software, which resembles a brick-and-mortar business, allows for this.

SaaS in eCommerce

Over the previous few decades, the eCommerce business has been steadily developing and evolving, and those changes have accelerated with the events of 2020. 

Online retail sales in the United States surged by 36.7 percent in the third quarter of 2019 compared to the same period the previous year. As the effects of the worldwide pandemic and subsequent changes in customer buying behavior have played out, eCommerce has rapidly increased its proportion of the entire retail industry.

SaaS is a new distribution model in which users pay a monthly fee to use the software. You pay the price, typically monthly, for as long as you wish to use the platform, much like you would if you were renting a residence. The most significant advantage of this e-commerce platform is that it provides a hosted solution that can be accessed via a web browser on any device.

The software, hosting, backups, and, in most cases, tech support is all included with SaaS eCommerce software. An online store owner does not need to download or install any software, nor does he or she need to offer web hosting because SaaS platforms are already housed on the provider’s servers. Store owners require a computer with an internet connection and a current browser to run their online store, which they do by logging in through a portal.

The provider then secures, maintains, and hosts the platform on their servers, similar to how a landlord would manage the upkeep of a rental property. Customers that use a SaaS platform don’t have access to the source code and can’t change it. For eCommerce business owners who don’t want to spend time, energy, or resources to upkeep, SaaS systems are an excellent solution.

Benefits of SaaS in eCommerce

Unlike the old way, a SaaS software program is already installed and set up. An instance in the cloud might be deployed, and the app might be ready to use in a matter of hours. This reduces the amount of time spent on configuration and installation and the potential for worries to stand in the way of software development.

SaaS solutions are often cloud-based and expandable with other services. Users do not need to acquire additional software or servers, as in the old paradigm. All they have to do now is enable a new service. Furthermore, the SaaS provider owns the capacity planning for the servers.

SaaS stands out when it comes to expenses since it operates in a shared multi-tenant environment with cheaper hardware and software license costs than the traditional approach. Another benefit is that it may expand the client base by allowing SMEs to utilize software that they would not otherwise use due to the high licensing fee. Maintenance costs are also cut because the providers own the environment, which is shared among the clients that utilize the service.

Customers can readily access SaaS products after they’ve been updated. New releases and updates need less time and money than in the past. The conventional paradigm typically forces a user to buy an upgrade or pay for specialist services to access the improved environment.

It’s simple to use SaaS products because they already have best practices and examples. Concept proofing and testing the functioning of software or a new release feature might be done ahead of time by users. They might also have several instances with various versions to facilitate immigration.

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