E-commerce is an industry where buying and selling of a product or services are conducted on electronic system such as internet. E-commerce drawn on technologies such as mobile commerce electronic fund transfer, supply chain management, internet marketing, inventory management system.

Technological advances have transformed the way we live our lives; be it working, socializing or spending our money. Analysts predict that in next 10 years 80% of all computing, storage and e-commerce done worldwide will take place with the help of cloud.

Shopping online is one thing that has continued to grow and dominating the high street offering and gaining popularity with consumers.

Why E-commerce companies want to adopt cloud?

1. Lack of capital:

Due to expansion of customer groups and increasing data flow enterprises need to update their hardware and improve their management of these infrastructures. Many of the companies cannot afford this cost.

2. Lack of technology and technical people :

E-commerce is the business activity which is based on web technology. In this business, ability to develop and manage and maintain e-commerce website is necessary. In this tough technical problems like data security, data mining, information security, data storage are challenging for small and mid-level enterprise.  This requires high level of specific skills and techniques.

3. Security :

Security is one of the most significant obstacles for development of e-commerce.  In present website and database hacking is common treat to any e-commerce site.

The solutions brought by cloud:

1. Speed:

With cloud a company can roll out an e-commerce application faster than before and start selling immediately on the remote platform. It allows companies to respond quickly to market opportunities and challenges.

2. Scalability:

Seasonal spike in traffic is very common phenomenon in e-commerce industry. Cloud services allow business to support seasonal spike quickly.

3. Cost saving:

Cost is the primary reason for moving a business on cloud. Cloud based business may save a company 80% of the costs normally associated. The cloud model minimizes up-front investment and addresses seasonal and promotional fluctuations with a pay-as-you-go approach.

4. Customer Focus:

Running an e-commerce business in the cloud helps make it easier to do business with customers by simplifying interactions.

Without a doubt, cloud-based e-commerce is here to stay. Putting an application in the cloud with a trusted partner and in a solid development platform provides indisputable speed, economic value, and significant benefits in terms of customer acquisition and retention.

In e-commerce industry with the help of cloud we can have provision and pay for resources when they are needed instead of building huge statistic environments scale for peak. So cloud is natural fit for e-commerce industry.