What Is VPS Hosting? (And Do You Need It for Your Ecommerce Website?)

Discover if VPS hosting is the right choice for your ecommerce business and whether it can support seamless customer experiences.
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VPS (Virtual Private Server) hosting is a middle ground for businesses that don't need a dedicated server but have too much traffic to stay in a shared hosting plan.

New online entrepreneurs may wonder whether VPS hosting is the best option for them or if they should opt for website builders that include shared hosting. Keep reading to learn more about how VPS hosting works and whether it's the ideal choice for your business.

In this article
Who needs VPS hosting?
What is VPS hosting?
Pros and cons of VPS hosting for ecommerce sites
How is VPS hosting different from other web hosting services?
How to choose the right VPS hosting provider
FAQs

Who needs VPS hosting?

VPS hosting is ideal for businesses that have outgrown shared hosting. If your site is receiving more traffic than a shared server can handle, it's time to get dedicated hosting. VPS hosting is the logical upgrade if you aren't ready to commit to the expense of a dedicated server.

Here are a few reasons why it may be time to consider using VPS hosting:

  • Shared hosting throttles your load times because of high traffic spikes (like on Black Friday).
  • You need more control over server configurations and custom software.
  • You want to stop competing with other sites for the server's processing power and reduce server errors.
  • You want to minimize online threats and keep consumer data safe with enhanced security.
  • You’re looking for guaranteed server resources to improve page loads and the customer experience.
  • Your online store needs high availability and speed, even with resource-heavy plugins like WooCommerce or Magento.
  • You need to host multiple websites.

What is VPS hosting?

VPS hosting is on a shared virtual server, but you're allotted dedicated resources that no one else can use. It's like an apartment building. There are multiple units, but you have access only to your specific apartment. Other tenants aren't allowed at your place, and you can't get into theirs.

Since your space isn't shared with others, you receive additional perks, including full root access. You also have better privacy, which means your files and databases are protected from other sites on the server.

Your allocated resources include RAM, CPU, bandwidth, and storage space. They are always available, so you don't have to worry about a slow website during traffic peaks.

Types of VPS hosting

Not all VPS hosting is the same. Depending on the technical expertise available to you, some hosting plans may be more attractive than others. Here's a quick breakdown of the different VPS hosting solutions:

Unmanaged or self-hosting

Unmanaged VPS hosting means that your business is responsible for server management. You will need a system administrator for tasks like installing Linux operating systems. It's an ideal VPS solution for organizations that want complete control over their server.

Managed VPS hosting

With fully managed VPS hosting, the hosting provider handles server management, dealing with all responsibilities such as security updates, maintenance, and performance optimization. Managed hosting is the most expensive choice. However, it's a good option if your business doesn't have the technical expertise to manage a server.

Semi-managed hosting

The hosting provider and your business manage the VPS server together. The web host may handle troubleshooting and core updates, while you focus on tasks like installing applications. It can save you time while still maintaining control over the VPS hosting.

Pros and cons of VPS hosting for ecommerce sites

VPS hosting is one of the most popular web hosting services used by ecommerce websites due to its enhanced control and reliability. Here’s a breakdown of the pros and cons of using VPS hosting to host your online store:

VPS hosting pros

  • Reliable performance optimization
  • Improved security from other server users
  • Control over server configurations
  • Ability to add customizations
  • Easy to scale as your store grows
  • Reduced server errors
  • Guaranteed server resources
  • Capability to obtain root access
  • More affordable than a dedicated server

VPS hosting cons

  • Technical skills are required to set up and maintain VPS hosting
  • More expensive compared to shared hosting
  • Too advanced for low-traffic or new stores
  • Increased risk of vulnerabilities if server configurations are wrong

How is VPS hosting different from other web hosting services?

There are multiple types of web hosting services available, each with key characteristics that set them apart. Here's what you need to know:

Shared hosting

This is the most affordable option because you share the server with other websites. The hosting provider takes care of all the technical details, which is ideal for beginners. The downside is that shared hosting can limit your web optimization and security.

VPS hosting

Similar to shared hosting, but you don't share resources with other sites. You receive dedicated resources that are exclusive to your site. It provides better performance, scalability, and security compared to shared hosting. Businesses will need technical expertise or managed support if they choose VPS hosting.

Dedicated hosting

An entire server dedicated just to you. It's an expensive choice, but it comes with the highest performance and control available. Many ecommerce sites don't need such a hefty server to function online. It's ideal for large-scale ecommerce sites.

How to choose the right VPS hosting provider

Building a website is hard work, and you want to choose the right foundation to host your online store. Many variables can influence which is the best choice for your business.

Here are the most important features to consider:

  • Managed vs. unmanaged: If you don't have the technical expertise in-house to manage VPS hosting, you may need to choose a hosting provider that can manage it for you.
  • Customer support: 24/7 support is extremely helpful, as it can help minimize downtime and resolve issues in real-time.
  • Scalability: As your business grows, your VPS hosting provider should offer options to ensure you can scale accordingly.
  • Pricing: Besides checking for hidden fees, weigh the balance between the cost and value of hosting plans.
  • Security features: Online stores are required to protect consumer data and payment information. Ensure your hosting provider can mitigate the risks of a data breach and automatically back up your site.
  • Performance: Verify that the hosting provider has enough storage and can handle high visitor numbers and traffic spikes.
  • Server location: The closer the server is to your target audience, the faster your users will experience load times.
  • Uptime and reliability: Look for uptime guarantees and read customer reviews to determine a provider's reliability.

FAQs

Which VPS hosting is best?

The best VPS hosting provider will depend on your business needs and priorities. You'll want to consider pricing, security, and the provider's reputation. Some VPS hosting providers you may want to consider include GoDaddy and Hostinger.

If you use WordPress, there are plenty of VPS providers dedicated to hosting sites from this platform.

Is GoDaddy a VPS?

GoDaddy does offer VPS hosting services. It also offers additional tools to help manage your site, including a website builder, online store management, payment processing, and more.

What is the difference between VPS and VPN?

VPS stands for Virtual Private Server. It's a web hosting option that houses your website and makes it accessible to the internet. Meanwhile, a virtual private network (VPN) is a security tool to protect your online connection from prying eyes. It encrypts the connection, hiding your real IP address and location.

What is Amazon VPS?

Amazon Lightsail is a VPS hosting solution from the retail giant. Lightsail can help launch a simple web application, create a website, and build small business applications. Small online stores may find this too much for their needs, but growing businesses may find Amazon Lightsail a useful tool.

Bottom line

VPS hosting is an ideal option for ecommerce businesses in a growth phase — if shared hosting is starting to take a toll on your website performance, but a dedicated server is more than you need. VPS hosting strikes the right balance between shared and dedicated servers.

Select a hosting provider that aligns with your business's size and anticipated growth trajectory. You should also consider the technical management necessary to maintain a server. If available, ask for demos, trial periods, or consultations before committing to a hosting provider. It's a great sneak peek at how hosting services work.

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Author Details
Sara J. Nguyen is a writer specializing in cybersecurity. She aims to help people protect their data while enjoying technology. She has written about online privacy and tech for over 5 years for several organizations. When she's not writing about the latest cybersecurity trends, you can find her on LinkedIn.