Running an ecommerce business is challenging enough without having to manage your own IT infrastructure. With today’s cloud ecommerce platforms, you can launch and operate a full online store without maintaining servers, upgrading operating systems, or patching software vulnerabilities.
A cloud-based ecommerce platform handles the heavy lifting behind the scenes, hosting your website, managing data storage, processing payments, and keeping customer data secure. Instead of spending money on expensive hardware or hiring an entire IT team, you can focus on your products, sales strategies, marketing, and improving the customer experience that drives online shopping.
Shopify, for instance, is completely cloud-based and hosted, meaning there’s no need to upgrade or maintain software or web servers. Software that is cloud-based gives you the flexibility to access and run your business from anywhere with an internet connection.
Let’s take a deeper look at what cloud ecommerce is and why it may be a good fit for your business.
What is cloud ecommerce?
Cloud ecommerce uses cloud computing—remote internet servers instead of local hardware—to manage your ecommerce infrastructure. It handles hosting, databases, inventory, payments, and security. Your cloud service provider ensures your digital commerce systems stay secure, fast, and reliable.
Think of it like Apple’s iCloud for your online business. Your cloud servers keep your data stored remotely rather than in your own headquarters, just like iCloud keeps all your photos and files in the “cloud” instead of on your iPhone. These cloud providers deliver scalable resources and custom solutions that help ecommerce businesses grow without constantly upgrading physical infrastructure.
The benefits of cloud computing in ecommerce include improved cost efficiency, simplified infrastructure management, and easier integration with third-party applications like marketing tools, analytics dashboards, or fraud detection systems.
On-premise vs. cloud-based ecommerce platforms
With an on-premise ecommerce system, you are responsible for purchasing hardware and software, setting it up on-site, and ensuring it stays up to date and secure. This requires physical infrastructure, ongoing maintenance, and internal security updates—and costs rise as you expand storage or add new apps. On-premise systems offer full control and, when configured properly, enhanced security. That’s because they don’t expose your data to a third party (i.e., the cloud provider). With that said, most cloud ecommerce platforms provide a similar level of security.
On the other hand, cloud-based ecommerce systems let you choose from a set of preconfigured options anyone can use, even people without specialized server or IT knowledge. Deploying a cloud-based ecommerce site also can be faster than building it from scratch. Since another company builds, sets up, and maintains these servers, you can focus your resources on ensuring customer loyalty, creating personalized shopping experiences, and other priorities. These systems typically require monthly subscription payments since the provider owns and manages the infrastructure.
Features of cloud ecommerce platforms
Cloud-based ecommerce platforms have several components. Shopify integrates each of the following systems to ensure you can run your business seamlessly:
Front-end systems
Front-end systems are the parts of your ecommerce platform that customers see and interact with. This includes your website design, product pages, navigation menus, shopping cart, and checkout experience. A strong front-end system also lets you easily create and manage content such as product descriptions, blog posts, pop-ups, and landing pages without coding.
Front-end functionality often integrates with social media channels and marketplaces by syncing product catalogs and enabling shoppable posts or embedded storefronts. That way, customers can shop directly from platforms like Instagram, TikTok, or Facebook.
Payment gateways are also part of the front-end experience, allowing customers to securely pay using credit cards, digital wallets, or buy-now-pay-later options. Ecommerce software such as Shopify bundles these tools into one interface, making it simple to build, customize, and optimize the customer experience.
Back-end systems
While the front end handles what shoppers see, back-end systems power everything behind the scenes. This includes applications that process orders, manage inventory, calculate taxes, apply discounts, and handle shipping logistics. The back end also manages security—encrypting data, managing user permissions, and protecting your store from fraud or cyberattacks. In other words, the back end does the heavy lifting, ensuring your storefront runs smoothly no matter how many customers are shopping.
Databases
Databases store critical information such as product listings, customer profiles, order history, and pricing. A well-structured database allows your systems to quickly retrieve and organize information to update inventory, filter products, or personalize recommendations.
Cloud-based databases offer built-in data backups and security protocols, so you can protect sensitive customer information and maintain compliance. When integrated properly, your database seamlessly supports both front-end browsing and back-end operations, tying the entire cloud ecommerce ecosystem together.
Types of cloud ecommerce services
There are three primary ways providers offer cloud ecommerce services, though a platform of one type may have attributes of other categories. For instance, Shopify is a software-as-a-service (SaaS) company with some platform-as-a-service (PaaS) attributes. Let’s take a look at what makes each unique:
1. Infrastructure as a service (IaaS)
IaaS companies rent servers, databases, and networking gear to run your ecommerce site and process online transactions. You can build or install apps on top of that infrastructure, which is what your customers interact with. Your IaaS vendor manages the hardware and software that run the ecommerce apps and systems, and you manage the applications, data, middleware, and operating systems that run on it. Examples of IaaS providers include Microsoft Azure, Amazon AWS, and Digital Ocean.
2. Platform as a service (PaaS)
PaaS offers a ready-made environment you can build your ecommerce site on, without having to manage the infrastructure. Your PaaS provider handles hosting, maintenance, and scaling so your site is ready to go with minimal intervention on your part. Some prominent PaaS offerings include Heroku, Google App Engine, and AWS Elastic Beanstalk. Each gives developers the freedom to deploy custom applications without worrying about servers, operating systems, or database setup.
3. Software as a service (SaaS)
If you don’t want to build or maintain any back-end systems, you can look for a SaaS platform to meet your needs. SaaS providers host your storefront, manage updates, secure your data, and ensure uptime, letting you focus on products, marketing, and serving your customers. Your provider typically offers checkout and analytics interfaces, as well as the ability to add services like email, payments, and third-party analytics tools simply and easily. Salesforce Commerce Cloud and Shopify are both primarily SaaS offerings.
How to choose a cloud ecommerce platform
- Scalability and performance
- Cost transparency
- Customization and integration
- Security and compliance
- Support networks
Selecting the right cloud-based ecommerce system depends on your technical skills, plans for growth, and interest in ongoing maintenance. The main attributes to consider when choosing a cloud ecommerce platform include:
Scalability and performance
Start with scalability and performance, as your ecommerce site must reliably handle traffic spikes during holidays, sales, or new product launches. You want a provider with high uptime guarantees, content delivery networks that work globally, and infrastructure that scales with your business.
Cost transparency
While cloud ecommerce pricing may seem straightforward and cheap, make sure it doesn’t include hidden costs like transaction fees, app costs, bandwidth charges, or storage limits. Platforms like Shopify can offer hosting and SSL (secure socket layer) bundling, which can help keep your costs stable over time, while usage-based providers might bill extra for bandwidth, uptime, or data storage.
Customization and integration
Make sure potential providers can work with your existing marketing tools, CRMs, fulfillment systems, and preferred analytics systems. IaaS platform providers might work better for an ecommerce system that relies on custom workflows or niche tools, while SaaS and PaaS systems typically include integrations for common analytics tools, email platforms, and payment gateways.
Security and compliance
A solid cloud ecommerce provider can manage encryption, PCI DSS compliance, and regular security updates. Check into how the platform stores customer data, manages backups, and takes care of vulnerability patches. If you work in a region with specific privacy laws (like the EU’s GDPR), then be sure your provider offers built-in compliance features.
Support networks
Prioritize platforms that offer 24/7 customer service, active developer communities, and even partner agencies. A provider that maintains documentation and supports other businesses of your size (not just the enterprise giants) is a good bet, as well.
Cloud ecommerce FAQ
What is a cloud-based ecommerce platform?
A cloud-based ecommerce platform builds and runs your online store using remote servers instead of on your own hardware.
What are the types of cloud storage?
There are several major forms of cloud storage. Here are some of the most common:
- Object storage. Object storage manages large amounts of unstructured data—like product images, videos, or backups—by saving each item as an individual object with metadata. Ecommerce businesses often choose it because it scales easily as media libraries grow.
- File storage. File storage organizes data into folders and subfolders, allowing teams to access, share, and collaborate on documents with ease. Businesses use this structure to maintain shared drives and central content libraries.
- Block storage. Block storage splits data into fixed-size blocks and stores them in a way that maximizes speed and performance. Companies rely on it for databases, order processing, and transaction-heavy systems where low latency matters.
- Archive storage. Archive storage keeps older or rarely accessed data, such as historical sales records, safe at a much lower cost. Businesses use it to meet compliance requirements and maintain long-term backups without straining their budget.
What is cloud computing?
Cloud computing is the delivery of services like servers, storage, databases, and software over the internet, letting your business access technology resources on demand instead of managing costly hardware on-site.
