The Technology That Builds an E-Commerce Site

Over the last decade, organizations have been dealing with E-Commerce sites and virtual marketplaces. We’ve seen a wide-scale utilization of business tools driven by the internet such as dropshipping, affiliate marketing, social media influencing, and much more. Those who are successful have inspired others to take action and grow the industries as well as the requirements that virtual infrastructures need to keep up. For example, retail stores are adopting and dominating the E-Commerce sector which has invoked motivation for new entrepreneurs to initiate their approach. When an E-Commerce site becomes successful, it needs scalable technology to accommodate its customers. 

This is E-Commerce 101; both marketing and delivery of services don’t need to happen in the physical world. Every E-Commerce site aspires to have a place in the virtual Madison Avenue and Fifth Avenue. Everything you need to market, scale, and sell through sites is available online and it is only made possible through the technology behind the screen. Whether you’re looking to launch a website, app, web app, or anything of the sort, you should understand the program requirements to make you a serious contender in the E-Commerce sector.

This will ultimately start with drafting a “tech stack” which is a list of every piece of technology and its purpose that will go into launching and operating your single application. Firstly, you want to focus on the two components (or layers) necessary to base your stack around:

1. Front-end/Client-end: What will your client see and have access to whilst using your system? You'll need frameworks and development languages for the client side to create the appeal. This goes back to why UI/UX is crucial for development— you need your application to be engaging and keep users coming back.

2. Back-end/Server-end: What will allow your application to function? Various back-end languages exist (PHP, Ruby, Java, . Net, etc). The implementation of these languages will interconnect to ensure a smooth operation. For E-Commerce, this is how the program will be able to store and keep information secure in the database. 

Technology stacks are crucial for determining the components that will construct the final product and how well that product can perform. When it comes to building an E-Commerce site, some tools will serve you better than others. Ultimately, a well-done stack will show: 

• A summary of the programming languages, tools, and frameworks that the developer will require to interface the application. 

• The degree to which the system will be able to meet objectives for the business and assist with projects.

• A plan for scalability: What level of traffic do you anticipate? Will you run serverless? You’ll want to have an understanding of the application's anticipated workload.

• Will data be stored in the cloud? Or can it be stored locally?

• Is the app on an enterprise level? Or is the solution more lightweight?

• How will the application perform on the devices it’s intended for?

• How clearly defined is the end goal? Developers will need this to deliver an adequate result.

Now that we’ve identified the areas to consider for a tech stack, let's move on to the best frameworks and programming languages that developers can use for your E-Commerce site:

Front-end: These are the development tools that will build what the user can see and interact with when they enter your site.

• JavaScript: The most commonly used programming language for the front end due to its ability to generate interactivity for static HTML pages. Additionally, it is flexible when integrated with other languages and frameworks. 

• React.js: This is the most used framework when creating the interactive elements of a site. E-Commerce sites such as Tesla, Airbnb, Netflix, Uber, and The New York Times were all built with React.js. Many factors contribute to this wide-scale usage but the main draws include the ease of adoption, versatility, and speed of software development.

• Node.js: An open-source (code is easily accessed and can be modified) environment that is compatible with other platforms to build front-end and back-end solutions based on the JavaScript engine. The specific engine it runs on is chrome v8 which will convert code from JavaScript into machine code. Essentially, the reasons behind its use come down to Node.js being lightweight, highly scalable, and data-intensive.

Angular: This front-end framework is made for building mobile, web, or desktop applications. Being open-source and TypeScript-based makes it cost-effective and transparent when expressing the components of the application. Additionally, google houses a majority of the development team which increases its credibility.

Back-end: These are the tools that developers will use for the architecture, In E-Commerce, this consists of: managing orders, organizing products, web page edits, payments, registration, SEO, and more. To perform these responsibilities, look at:

• C#: This programming language is general-purpose and is used to build many kinds of applications and programs such as native apps, websites, cloud-based services, games, and much more. 

• PHP: This is a back-end language mainly used for website applications due to its role as an open-source as well as a general-purpose scripting language. This means that the language is highly adaptable in terms of compatibility and scalability. Additionally, as an open-source is it free which would make development costs manageable. 

• Java: A general-purpose, class-based, object-oriented language meant to build highly advanced software for a range of systems and devices. Like JavaScript, it can run on almost any platform. 

There are a variety of frameworks with Java that ensure the efficiency of implementation and operation. One of the most commonly used is Spring which further streamlines the Java programming process. It is another open-source framework that will assist developers when building Java applications. It will however require a level of expertise as Spring is a complex system to navigate. The difference is of course that Java is a programming language and not a programming script.

What’s Best For You?

There are many more front and back-end languages and frameworks that make up technology stacks. If you’ve gone the route of developing your E-Commerce site without the help of an outside consultant, it’ll be wise to start with a pre-existing stack. Here are three that are the most commonly used:

1. Python and Django: Highly ranked option for E-Commerce startups as it is highly scalable which will be beneficial as the traffic of your site grows. In terms of back-end functioning, this is going to be a secure environment that is ready to handle the volume. Lastly, the web server that developers typically go to when using this stack is Apache and for management of the database, there is PostgreSQL or MySQL.

2. MEAN (Mongo DB, Express, Angular, and Node.js): This blend of systems is frequently used for constructing online stores. However, for bigger-scale applications, it won’t be your best option.

3. LAMP (Linux, Apache, MySQL, PHP): This stack is great for websites and web apps as well as simply getting your project off the ground quickly. 

After you’ve chosen a stack, there are a few more steps you’ll need to take to reach an optimal outcome:

Identify Requirements: Every project has its specifications in terms of what it needs and the resources available. For example, your store may need to be accessed on a mobile app or have an automated supply chain invoice system.

Time to Market (TTM): How long until your concept is reality? Commerce is a highly competitive industry, as a startup, you want to build this credibility with your customers as soon as possible. Don’t stall the development process over hesitation instead define your ideal and get logistics in place. For example, if you think the Python and Django stack is your best option then identify the number of developers you’ll need to get started.

Scalability: This is a pillar of E-Commerce and whether you’re a startup or starting a new initiative, you’ll want to envision how it will continue to build. This is going to influence the choice of the technology stack as you’re thinking long-term. 

The Team Behind You: In the end, the developers working to build your system are going to dictate the quality of the outcome. Since this factor holds so much power, it has led to nearly 60% of companies outsourcing software development.

Finally

Technology stacks are your organization's key to freedom and a shield from headaches. Project development is very complex and can become volatile when faced with a lack of organization. Define your ideals in terms of languages, programming, and frameworks that will give your developers a running start in the success of your project. 

Every obstacle has a way through and when it comes to technology this is something you realize over time. An outsourced team of experienced IT technicians can save you a lot of time and money in comparison to taking on a project with an in-house team. 

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!

Buy Now Pay Later: A Gift For Consumers in 2022

The price of retail items has been climbing for some time now, and it’s likely something you’ve experienced recently. For instance, the average cost of food has risen nearly 10% compared to last year which has been a cause for concern among consumers but an opportunity for businesses. Convenience is a recurrent theme in the formation of technological trends whether it's the fastest delivery time, internet speed, or access to certain content. With every innovation and company emerging there is a battle to be more convenient than the next. This simple concept is a major driver in decision making and consumerism which has led to it consistently being the premise that services are based around in society. 

The FinTech industry has fully embarked on a quest to provide customized convenience to consumers globally, utilizing all sorts of financial methodologies. The industry has a variety of services to offer and one of the most popular at the moment is buy now pay later (BNPL). The concept is rather self-explanatory and right off the bat may raise questions around the kind of revenue benefits there are for those using it. Someone buys something now, pays for it later, and the business benefits from this? Opposed to just receiving the full sum at the point of purchase? 

You’ll be interested to know that retail purchasing using BNPL during 2020-2021 went from $24 billion to $100 billion. The main consumer bases responsible for this growth are the Millennial and Gen Z demographics who’ve had tremendous influence over FinTech markets. To put that in perspective, over 70% of millennials stated that they’d be more interested in financial services from tech companies (like Apple Pay, Google Pay, Venmo, PayPal, etc) opposed to traditional institutions. There is a level of trust that the public has in these companies who’ve engrained themselves in everyday consumption. By taking on the finance industry, they bring the majority of their already loyal consumer base with them.

Back peddling for a moment, we still haven’t answered the question of how businesses make money when using BNPL. It’s very simple; BNPL vendors are just the service providers who bridge the gap between curious browsers and paying customers. They receive their fee (typically between 2%-8%) when the sale happens. It is the institution providing the goods that pay them so that their consumers can access the BNPL service through their platform. Merchants using the service benefit as people are more likely to go forward with their purchase when they can have it before they fully buy it.

For example, if an item is $200, someone may be intimidated when asked to fill in their banking details and abandon their cart (we’ve all been there). Whereas when there is an option to make 4 payments of $50 over 6 weeks, that seems a lot more intriguing. This even leads consumers to shop in price ranges they may have never considered before. Experts estimate that the service is taking conversion rates up to 30% and ticket sizing to 50%.  

So who are the organizations that merchants trust to provide this service? There is a wide variety of companies all with their approaches to this concept. Here are some to note:

• PayPal (Pay in 4 feature)

• Afterpay

• Sezzle 

• Klarna

• Affirm

These are just 5 of the players who’ve made a significant name for themselves and continue to search for ways to outperform each other. There are many more companies delivering this service and others who are suiting up to get their offers in front of consumers. One example is Apple’s recently announced Apple Pay Later which has generated tons of excitement around the release of IOS 16. On the other end, they’ve invoked fear among other service providers who know how influential Apple is. Apple Pay Later follows the general concept of splitting a payment equally into four with each payment made every two weeks. Additionally, there are no fees involved or interest added on. We will see the extent to which they dominate this market when released this fall. For now, let’s learn a bit more about this business model:

Why BNPL?

Why would businesses and consumers move towards a service like this? Consider for a moment how credit and debit cards are the dominant methods of payment around the world. There is a level of convenience and comfort involved when you have that period before you’re handed the bill. Additionally, there is a lot of responsibility when holding a card like debt, interest accumulated from that debt, and fees. BNPL took this and made it simple, which is especially what the younger demographic loves. It is simple in the sense that payment timelines are flexible without hurting a direct credit score like monthly credit card payments. You can even in some cases pay something off over 12 months if you wanted. Though it must be noted that there is just as much responsibility when going this route, it just makes the process more flexible. 

With the convenience aspect comes increased traffic both in transaction execution and clientele growth rate. As we’ve already outlined, this is because there is no longer a fixed price of the asset, at least in the eyes of consumers. What was expensive before is now “manageable” when you can have the item right then and there and not pay the whole sum in one shot. 

When it comes to the cost of businesses implementing this service, it is no more expensive than accepting credit cards. This means that vendors make their profit by taking those cuts of retail purchases which is similar to interchange rates with credit cards. For a business to implement BNPL, it is not far outside the scope of anything they're used to. From a purely conceptual standpoint, who’s to say this doesn’t replace traditional payment methods?

Consumer Benefits of BNPL:

A Balance For Those Without Credit Cards: Nearly 30% of Americans don’t hold a credit card which is problematic for several reasons— but that is a whole different subject. Additionally, more than 50% of credit card holders have maxed one out before. Additionally, service providers allow you to use them as a credit card by providing a virtual card number for purchases upon request. That card will cover the amount needed for the upfront purchase which you will then pay off like you would a credit card. The psychological effects of BNPL are similar to charging something to your credit card. The purchase becomes a “focus for later” and consumers can get what they want when they want it. 

Flexibility: There are many contributing factors to this aspect of BNPL services since they are designed to provide more time to align one's money. The possibilities are seemingly endless for BNPL services, for example, you can split up payments between vendors and a personal debit/credit. There are options for shorter loan periods which, if payments are made on time, allow you to borrow money interest-free. The combinations go on but the point remains; it provides options, and that is what influences consumption.

Soft Credit Checks: Since this is still a business providing loans and trusting that users will make payments, vendors need to validate their users. Contrary to hard credit checks like you’d see with a credit card company or bank, soft credit checks do not impact a credit score. These are simply to ensure applicants meet specific criteria to assess how much risk they’ll be taking on with each user.

Why Would Your Business Use BNPL?

There is a level of hesitation that consumers are facing at the moment and many are focusing on just the essentials due to inflation and recession speculation. By companies implementing flexible payment options, it is a great PR tactic to express care for customers. For example, Affirm says retailers using their service have seen order values increase by over 80%. Another example is FinTech giant Klarna which grossed $80 billion through merchandising volume in 2021.

So the increased purchase execution rate is one thing and the flexibility is another positive data point. Ultimately, the expression that retailers are showing by keeping up with the times is attractive to consumers who want to do the same. This is in addition to the emphasis on care demonstrated by offering options that suit their needs.

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!

Implementing Serverless Computing In Your Business: What You’ll Want to Know

Software and technology are consistently moving towards efficiency and slickness. Efficiency in the sense that the user doesn’t know how complex the system within the hardware is. Slickness in the sense that the technology functions fast while meeting a standard of performance. For example, look at the development of cell phones. It used to be a box with an antenna that you could only make calls from. Now they are as thin as 7mm and perform so many functions that you hardly find yourself going to dial a number. 

Of course, consumers want to have these kinds of advanced systems but the technicians behind the scenes need the resources to do so. The introduction of cloud computing has been a breakthrough and changed the way networks function within platforms. This is due to many factors, but primarily the speed of network deployment, scalability, security of data, and reduction in operating costs have been key contributors.

A dominant approach that is heavily innovative to software and, more specifically, useful for software developers is serverless architecture. Now the first thing to point out is that the name “serverless” is misleading since there are in fact servers running this process. However, it has earned its name because the server aspect is operated by machines, removing them from the responsibilities of the developer. 

This cloud-native development tactic requires only that the developer run coding for the program. This is possible because the system only runs when in use and as a result is hardly idle. This is beneficial for organizations using this infrastructure as they will only pay for the bandwidth they use as opposed to paying a fixed monthly fee. This is night and day when compared to traditional server-based networks (or “client-server” networks) which are far more difficult and costly to manage. 

Cloud computing services run serverless architectures to handle the level of data being processed by the platforms they’re serving. This allows developers to oversee the application in a decomposed state and focus on building and running services. An example of a company that uses a serverless architecture is Netflix. Netflix uses Amazon Web Services Lambda (AWS) to keep up with the amount of stored and processed data as well as scaling servers to the requirements of a network with a high volume of users. Now, this is not suggesting that serverless computing is only necessary for platforms with a huge budget and millions of users. Any business can use this whether it's IT, health care, retail, banking, manufacturing, and more.

In our increasingly digital society, a vast number of industries are moving towards scalability to be able to effectively operate while delivering a high quality of service to clientele. Let’s break down this information into digestible segments so you can understand whether serverless computing is going to benefit your business or not:

FaaS

This is the ground floor in the skyscraper of the serverless computing architecture. With the integration of cloud computing came services that not only managed applications but operated and innovated them. This is where FaaS (Functions as a Service) is important as it is what allows developers to maintain and build on the application without having to worry about the servers in the back-end. Additionally, this allows developers to update code when responding to a user's request within the application. AWS Lambda is an example of FaaS; when Netflix users navigate through the platform by selecting and searching, the FaaS system is ready to respond. 

Scalability

It always comes back to this with cloud computing because there is no other way for a business to tailor its resources to the demands of its platform. If there is high traffic, more servers can be up and running to accommodate the requests and prevent a crash. Additionally, the resources can minimize themselves in times where there’s a low volume of requests which prevents wasted money.

Event-Based System 

Going back to the statement that applications are decomposed when they go serverless, this is used so components of the application operate autonomously. The benefit of this is that if there is an issue, it only affects a minute part of the log. As opposed to stream-based where each service is interconnected. 

Being UX-Oriented

The end-users of an application will have high standards for the experience aspect of your service as this is what allows you to retain clientele. Since architecture is now a low priority for developers, it allows them to focus on UX (user experience). This aspect is central not only to maintaining the application but to building a business that will expand in all directions. Now, it must not be forgotten that the user interface (UI) is central to UX.

Limitations

So now we’ve looked at all the upsides to serverless architecture, but there are two sides to every coin. If this is something worth considering implementing in your business, you must know the limitations of the service:

Reboots

In some cases, functions can become cold when faced with idleness requiring a “cold start”. This is when you’ll need to manually go into the system and invoke the functions to get them used to operate again. Cold starts can be mitigated by giving the system some level of activity, typically this involves going in once in a while to process requests.

Relying on a Third Party

The providers of your serverless architecture become the backbone of your application's operation. This limits your control and you may be subject to changes that come unexpectedly. This will of course be subjective based on the terms and conditions of the agreement you enter with your provider.

Best For Platforms With Fluctuating Volume

If your platform has a consistent workload, then serverless may not be the best option as scalability is not entirely necessary. For example, a web app whose visitor volume doesn’t go up or down significantly would not need to adjust its servers to relatively constant traffic.

Final Thoughts

Serverless computing will benefit developers and consumers just as much as business owners. This could save resources and allocate time to priorities, getting you ahead of the game by miles. Your users will love the flexibility just as much as you. However, implementation will not happen overnight and should instead be gradual to ease everyone under your IT umbrella.

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!