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BAJAJ TECHNOLOGY SERVICES

Streamlining Order Management with Serverless Architecture

Streamlining Order Management with Serverless Architecture
The shift from a rigid, costly, and traditional monolithic Order Management System in eCommerce to a resilient, serverless, and cost-effective solution.
Oct 30, 2024
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Introduction

In the ever-evolving eCommerce sector, organizations are increasingly pursuing innovative solutions to enhance performance, scalability, and cost efficiency. This case study examines the implementation of a serverless architecture for OMS (Order Management System) in Magento-based eCommerce website, utilizing AWS Lambda, Amazon API Gateway, Amazon SNS, and DynamoDB to streamline orders operations and improve customer experiences.

Business Challenge

The eCommerce platform encountered several significant challenges with their OMS:

  • Scalability Limitations: The existing infrastructure was unable to  accommodate varying traffic loads, particularly during daily peak hours at various applications component levels.
  • High Operational Expenses: Maintaining dedicated servers, redundant  capacity resulted in substantial costs, even during off-peak hours. 
  • Integration Complexities: The need for seamless interaction among various components, such as payment gateways and inventory management systems, led to operational inefficiencies.
     

Solution

To address these challenges, the eCommerce company adopted a serverless architecture employing the following AWS services:

  • Amazon API Gateway: Serving as the primary entry point for client requests, this service facilitated the creation, management, and security of APIs, enabling effective communication between the frontend and backend systems.
  • AWS Lambda: As the cornerstone of the serverless architecture, AWS Lambda was utilized to execute backend code in response to API requests, thereby eliminating the need for server management and allowing the development team to concentrate on application development.
  • Amazon SNS (Simple Notification Service): SNS was implemented to manage notifications related to order processing and inventory updates,  ensuring timely communication among various application components and enhancing customer engagement.
  • Amazon DynamoDB: This NoSQL database provides a highly scalable and  flexible data storage solution. DynamoDB’s automatic scaling  capabilities enabled the platform to manage fluctuating traffic  loads without experiencing downtime.
     

Architecture Flow

  • User Interaction: Customers engage with the Magento storefront.
  • API Gateway: User Order requests are directed through API Gateway, which activates the corresponding Lambda functions.
  • Lambda Execution: Relevant Lambda functions execute, carrying out operations such as payment processing, order management, and  inventory updates.
  • SNS  Notifications: As required, SNS dispatches notifications  regarding order confirmations and updates.
  • Data  Storage: DynamoDB is employed to store and retrieve user data,  product information, and transaction records.
     

Impact

The adoption of a serverless architecture yielded significant benefits:

  • Enhanced Scalability: The eCommerce platform can now efficiently manage traffic spikes in orders during peak shopping events, ensuring a  seamless shopping experience for customers.
  • Cost  Reduction: Transitioning to a pay-as-you-go model significantly  lowered operational costs, allowing the company to allocate more  resources toward marketing and customer engagement initiatives.
  • Accelerated  Release Cycles: The release team is now able to rapidly iterate and deploy new features and 3rd party integrations without the constraints of traditional server and release management, resulting in faster time-to-market.
  • Improved Customer Satisfaction: With enhanced performance and timely  notifications, customer satisfaction and engagement levels have risen, leading to increased conversion rates.

Written by

Shradha Sarade
Head - Cloud