What is SaaS ecommerce?

SaaS for ecommerce operations- points to ponder

SaaS platform is among one of the main categories of cloud computing. A software distribution model where a third party hosts applications and makes services available to customers. It’s also called on demand software, and is closely related to the application service provider(ASP) in which provider hosts customers software and deliver their services to end users

Since the software is not installed on a user’s computer, it lives on the SaaS provider’s servers

Leading SaaS providers include Oracle, Salesforce, SAP, and Microsoft

SaaS model

SaaS is available for a wide range of software , including sales, ecommerce, marketing, and business development software. Some SaaS platforms that are widely used include Shopify, Big commerce etc.

The SaaS software model has become common for many types of businesses, and it has been used for making strategic enterprise level solutions, considering its ease of access.

SaaS deliveries may vary from a range of business applications, including ecommerce, customer relationship management(CRM), payroll, sales management, human resource management, database management, financial management, and enterprise resource planning(ERP)

Companies often pay for these SaaS applications on a monthly or annual basis as is the case for other cloud services, such as Infrastructure as service (IaaS) or platform as service (PaaS)

SaaS application’s source code is the same for all customers and when new features are rolled out, all customers will have access to these features. The customer’s data for each model may be stored locally, in the cloud or both locally and in the cloud

SaaS architecture

Most SaaS offerings are based on a multitenant architecture, in which a single version of an application is used for all the service provider’s customers

Customers can make changes according to their wish and usability. Customizations are done on the software within certain parameters. It’s not possible to the same degree that is available for enterprise software

Organizations can integrate SaaS applications with other software using application programming interfaces (APIs). For instance, a business can write its own software tools and use the SaaS provider’s APIs to integrate those tools with the SaaS delivery

SaaS pricing

Providers usually price SaaS products based on some type of usage parameters. For example, they might charge based on the number of people using the application, the number of transactions, or some other measure of usage

Generally, they pay for this service on a monthly basis using a pay-as-you-go model. Transitioning costs to a recurring operating expense allows many businesses to exercise better and more predictable budgeting

SaaS ecommerce

E-Commerce or Electronic Commerce means buying and selling of goods, products, or services over the internet. SaaS eCommerce platforms are cloud-based systems that are accessed on any web browser. Ecommerce giants, such as Shopify and Big commerce, use SaaS model for delivering their service.

SaaS advantages

Accessibility: All customers can easily access the software from any number of devices and locations that must have an active internet connection owing to applications delivered via SaaS over the internet

Scalability : For growing organizations, scalability is must. SaaS is a fortune for organizations as it provides revamp of services every now and then based on customer’s needs and intentions

Responsiveness : SaaS applications and services runs on all platforms, such as computer and mobile — as well as run on all of the major browsers

Automatic updates: Service providers release automatic updates in their software- often on a weekly or monthly basis- so organizations don’t bother about features or functionalities

Flexible payments: Generally, customers subscribe to SaaS and they pay for the service on a monthly or annual basis in contrast to traditional software payments, such as licensing or upfront payment

SaaS Risks

Similar to other cloud services, users of SaaS rely on their service providers to be up and running at all times so that they can access applications as needed. They also depend on the providers to ensure that the software is kept up to date in terms of new features, security patches, and other changes.

If enterprises decide they want to switch to a new SaaS provider, they might confront the difficult task of moving extremely large files over the internet to the new provider

Risks notwithstanding, the SaaS model is favored by many organizations because of its enumerable advantages