The initial reaction to your e-commerce solution may be a positive one, but that could all change depending on the perception of your customers.  Believe it or not, the company you sign up with and the service they provide can either make or break your business.  If your solution does not possess the following qualities, achieving success online will be very difficult and maybe even impossible.

Critical Security Features

There are a number of components associated with your hosting platform that can affect how customers perceive your business.  One of the important of all is security.  This is one aspect that cannot be overlooked because it will help you establish trusting relationships and the confidence customers need to feel safe when sharing their sensitive information with you.  Proven and visible security mechanisms such as SSL certificates will help to create the trust and confidence you need to be successful with an online business.  By neglecting to use them, you stand the risk of losing many customers because the consumer is growing increasingly aware of the potential dangers that come along with shopping online.

Speed and High Availability

The performance of your e-commerce site is critical, especially in today’s fast paced on-demand world.  If your hosting provider is utilizing slow servers, potential customers will more than likely click their way to the competition.  A degraded performance will undoubtedly impact your bottom line and possibly cause your company to go out of business.  This can all be avoided by choosing a host that uses the best server hardware and redundant connections to the internet.  It is the overall reliability of their infrastructure that will determine the success of your business.

Adequate Server and Network Capacity

Selecting an e-commerce hosting package with limited storage and bandwidth capacity is like intentionally placing restrictions on the potential of your business.  It is highly recommended to choose a plan that provides enough of both resources to compensate for expansion.  Although many hosts offer solutions with unlimited resources, this marketing ploy can actually work to your disadvantage once your files and traffic start bursting through the seams of the server.  When you are no longer able to update your site due to the lack of disk space and visitors cannot access your site because the bandwidth has been exceeded, your audience will view you in a negative light and this will definitely serve as a crucial blow to your credibility.

Having a secure and reliable hosting solution is critical to any online business.  While some of your more loyal customers may give you a second shot in the midst of slow loading pages and unavailability, most new prospects will never return and seek out someone who is more capable of meeting their needs.  When starting your journey with an online business, always remember that excessive downtime results in lost customers and lost sales.  It is simple as that.  A host that can assure you a reliable and secure environment gives you the best opportunity to keep your customers happy and your bottom line on the profitable side of the spectrum.

There is a lot that must be taken into account when evaluating e-commerce web hosting solutions for your small business.  Among several key factors, reliability needs to be considered as well as security to make sure you web transactions and customer data are protected from hackers and criminals looking to commit identify theft.  It is important to know that there are many options available to you in regard to the type of service.  Two of the most common approaches involve running your small business on a shared or dedicated server.  Each method has its advantages and disadvantages, which we will discuss in this article.

Reasons to Opt for Shared Hosting

Shared hosting offers numerous benefits and several of them extend into the e-commerce sector.  For one, it is very affordable as you can easily find a feature-loaded plan for under $10 per month.  In addition to that, you typically receive all the tools and services you need to get your online storefront up and running.  This includes shopping cart programs, web analytic tools and support for SSL certificates to secure your business transactions.  However, while shared hosting can provide you with a relatively secure platform, it can never assure the level of protection and reliability that can be obtained from a dedicated server.

The Dedicated Advantage

Though an advanced and often more complex hosting solution, a dedicated server is not exclusively geared towards larger companies.  In fact, it can deliver the same benefits to small businesses and entrepreneurs looking to establish and grow their presence on the web.  Leasing a dedicated server will cost you more than a shared hosting plan, but it can also guarantee you better overall security and reliability, both of which are vital for anyone who wants to be make sure there business is always available.  For many companies, their website serves as the revenue generator that keeps the business going.  If these are your plans, you need to make it a priority to invest in a solution that ensures your site can be accessed at all times and provides the secure environment your customers need to feel safe.

Capacity and Complexity

When leasing a dedicated server for your small business, you are assured a guaranteed allotment of essential resources such as disk space, RAM and bandwidth.  These features alone can give you a website that performs exceptionally better than it would in the shared hosting environment.  However, you should keep in mind that dedicated hosting is one of the most complex types of web hosting you can sign on for.  Unless you opt for a managed service, you will be responsible ensuring and monitoring security, performing configurations and backups, installing software and general maintenance of the server.

There are quite a few small businesses that can thrive with a shared hosting platform and several others that cannot.  Making a choice is difficult and the final decision will depend on various factors, including your budget, level of expertise and the requirements of your business.  Most importantly, it will boil down to the overall quality of the host providing you with service.

Source: http://webhostinggeeks.com/blog/2009/09/22/server-options-for-e-commerce-hosting/

If you desire to open a storefront online, take note that there are several methods that can be used to power your e-commerce site, including an in-house solution, colocation, shared hosting, dedicated and managed hosting.  The method you choose will depend on various factors, but mainly your budget, level of technical expertise and the requirements of your business.

In-House Method

Hosting your e-commerce site in-house involves setting up a server room, purchasing the necessary hardware and software components, leasing a reliable high-speed connection and employing an IT team.  Experienced IT personnel are required to handle day to day technical aspects such as performing backups, monitoring security and basically doing whatever it takes to keep the server up and running.  The costs and complexities that come along with an in-house operation are considerable and often too much for startups and small businesses to handle.

Colocation

Colocation refers to an alternative solution that allows businesses to store their server hardware and network equipment in a facility maintained by a hosting company.  The firm provides you with physical storage space, internet bandwidth and electricity to power the hardware.  There are many advantages to this type of arrangement, including a lower cost for bandwidth and the enhanced reliability you get from the data center.  The disadvantages are that you must purchase your own hardware and actually find a provider that offers a colocation service in your area.

Shared Hosting

One of the most common ways to run an e-commerce website is through a service arrangement known as shared hosting.  In this environment, the websites of multiple companies are stored on a single server, which share an internet connection and various other resources between them.  While suitable for the needs of many, this type of service is best for companies that anticipate a small to moderate amount of traffic and have a limited budget.  This is mainly because there are strict limitations in regard to disk space, bandwidth and control.  With that said, a reputable firm should be able to provide you with a stable platform that can support the needs of both startups and small companies.

Dedicated and Managed Hosting

Dedicated hosting is a method that calls for you to a lease an entire server from a hosting company.  The provider is responsible for maintaining the hardware and network connectivity while the bulk of server administration falls on your shoulders.  This could be a downside because of all the technical challenges that go into maintaining a server, but there are number of benefits as well.  For example, you have extensive control and flexibility that permits you to run your own operating system, database servers, web applications and services.  For those who lack the experience or time needed to handle these tasks, managed hosting exists, a solution that eases the burden of server administration.  Though notably more expensive, managed hosting will allow you to focus more on promoting your e-commerce site and servicing customers rather than dealing with the all the complexities as these processes are handled by the provider.

The fact that there are so many options for hosting an e-commerce site works to your advantage.  What you need to do is a carefully assess your situation and determine which service is best for your business.  After settling on a reliable solution, the fate of your online business is in your hands.