Where and how you keep your eCommerce data is crucial to the performance of your website and the accessibility of your database. Decisions on the location of servers and databases have an impact on website performance and the subsequent effect on the eCommerce revenue. Here, we will discuss how the location of data affects the performance of the eCommerce.
When browsing the web, you often come across pages that take longer to load than others. According to Google, 53% of mobile users will leave a site that takes longer than three seconds to load. For eCommerce, this means a reduction of potential customers by 53%, which is devastating. This is a result of delay before data is transferred from the servers to the visitor. This delay is often due to issues with hosting or the website database. Well configured hardware and updated database make a website run faster, hardware and databases are better maintained when there are in a single location.
What is the role of a dedicated server in ensuring a centralized data location?
A dedicated server is a hosting plan where an entire server is allocated to only one user. After purchasing or renting the server, the owner decides on the number of websites to run on the server. Dedicated servers are essential in ensuring that the eCommerce data is centrally located to optimize latency, boost accessibility to the database, and make it easier to maintain the database. When deciding on a dedicated hosting plan, it is crucial to consider proximity to your potential customers and your operational headquarters. Because you are renting or buying the whole server, you have more leverage deciding an allocation that is favorable to you; this is not possible in other shared hosting plans because the need of different businesses running their websites in the server has to considered.
A centralized eCommerce database can easily be maintained on a dedicated server. Dedicated servers eliminate chances of other website infringing on your server’s resources or exposing your data to viruses which could delete or ruin the data. Furthermore, by operating a website on an entire server, you have enough resources to store a large amount of data to make better decision-making.
Importance of centralized data location
By keeping your eCommerce data in one place, the management of the hardware and the data becomes more effortless. Centralized data location increases your control of data protection and version control, thereby improving data security. Moreover, centralized storage ensures the consistency of the data. This ensures that your data is reliable for decision making.
Furthermore, centralized storage results in better control of hardware configuration and increased capacity and performance. This is because it makes it easier to configure the hardware since there are located in one location, which in turn improves the capacity and performance. When efforts are focused on one place, it becomes easier to continually improve the hardware and identify software requiring upgrade hence continually improving the website speed and accuracy.
Centralized data storage reduces expenditure and risks. Maintaining a single server cost between $250 to $400; therefore, more than one data location will result in a considerable increase in the eCommerce expense. An additional fee is also incurred when compiling the data you need for decision-making. In a centralized data location, you can easily maintain a database where you can easily retrieve data whenever you need it. Furthermore, single location storage of data lowers the risks of data losses as it is easier to maintain the security of the data.
How SaaS such as Shopify manages eCommerce data
Shopify, like other SaaS (Software as a Service)) eCommerce platforms, does not require software installation. The platform hosts and manages your website, allowing you to continue with eCommerce operations. The hosting price is included with the software, and they incur the SSL cost. However, you are required to purchase the domain name.
Shopify helps its clients to develop an online store that they use to promote, sell, and ship their products for a monthly rate. The platform has gained increased popularity due to its ease of use, adequate support options, beautiful themes, and lost startup costs. However, a considerable number of online business faces difficulties working with Shopify due to limited functionality, especially for startups, numerous costly Add-Ons, and transaction fees. Furthermore, clients usually get to wait for a while for customer support resulting in business losses.
All online shops on the Shopify platform have access to overview dashboard and financial information. ECommerce businesses with a plan higher than Shopify lite have access to more information depending on the price of the plan. eCommerce with basic Shopify, Shopify, Advanced and Shopify Plus plans have access to live data view, acquisition reports, inventory reports, behavior reports, and marketing reports. Those with Shopify, Advanced, and Shopify Plus plans have further access to sales reports, retail sales reports, profit reports, and customer reports. while those with advanced and plus plan access custom reports.
While Shopify allows you to keep your eCommerce data in a centralized location (Shopify servers), the platform owns the data, and accessing it comes with a cost. Therefore, choosing to use the platform will require determining whether you can access the information that you need to make an important decision to move your eCommerce forward. If not, then you need a different option that allows you to own your data where you have unlimited access, for instance, having a dedicated server.
In today’s online landscape, ensuring increased website speed, owning your data, and reducing expenses is the only way to guarantee success for your eCommerce. For these reasons, having a dedicated server is much better than hosting your eCommerce in SaaS, like Shopify. Not only does a dedicated server increase your website speed, but it also lowers expenses substantially and ensures that you own your eCommerce data, which is valuable for decision-making. Thus, a dedicated server improves customer satisfaction by increasing speed and stores sufficient data to help increase your revenue.