Amazon Shutting Down Ecommerce Hosting Service

Amazon is discontinuing its ecommerce web hosting service, Amazon Webstore, according to rumors in its seller forums and several reports this week. One user reported to the forum on Tuesday that they were told in a phone call that service would be shut down in June 2016.

On Wednesday, reported that there were rumors that Amazon will shutter its webstore service at the IRCE Focus: Digital Design conference. Recode is also reporting the news although Amazon has yet to respond to requests for comment.

Amazon Webstore allows users to build their own online store, hosted on AWS infrastructure. The service costs $79 per month and includes hosting, fraud protection, secure payment processing and site design tools, including responsive design for mobile devices.

Though the ecommerce market is booming, with ecommerce up 15 percent from 2013 to 2014, there are many competitors in the market offering a similar platform to Amazon Webstore, including Bigcommerce and Shopify.

The proliferation of mobile devices and mobile payment options make it easier than ever to buy goods and services online. Despite security fears that come along with mobile payments, recent research shows that 20 percent of Canadians are participating in ecommerce from their mobile devices.

“Ventura Web Design is a Solution Provider with Amazon Webstore, so we were in direct contact with Amazon’s Webstore team on this announcement,” Kevin Richards, CEO of Venture Web Design confirmed to EcommerceBytes on Wednesday.

Scot Wingo, CEO of ChannelAdvisor, a publicly traded company that helps small merchants sell on their sites and on big online marketplaces, told Recode that it has already been discussing alternatives with its customers. “We have about 100 customers using the Amazon store platform and are working with them on a transition plan to one of the other popular ecommerce platforms we support, such as Shopify, Bigcommerce, Mozu and Magento,” he said. “The good news is as an inventory and order hub, we can help make this a seamless and rapid transition for our customers.”

Companies that offer ecommerce hosting may look at the Amazon Webstore closure as an opportunity to capture some customers if they are able to help with the migration, which may be a complex process for the type of customers who use a DIY online store builder. There are plenty of ecommerce specialists such as Magento silver hosting partner Tenzing that could help customers with a new ecommerce platform.