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Software Modernization

Cloud Cost Optimization on AWS for a Dropshipping Platform: 40% Reduction in Monthly Spend

We analyzed the company’s AWS service usage and billing history, implemented targeted cost-saving measures, and reduced monthly cloud expenses.

40%

Lower AWS Spend per Month

$300

Additional Monthly Cost Reduction

90%+

Faster Cost Visibility Turnaround

Client Background

The drop-shipping company operates with a high-volume digital commerce site that links retailers to thousands of wholesale suppliers. The system manages product ingestion, catalog updates, inventory synchronization, and order routing across multiple Shopify-based marketplace applications.

Country

USA

Industry

Digital Commerce

Time Invested

3 Weeks

Engagement Model

Dedicated Development Team

Business Challenges

As TopDawg’s dropshipping platform scaled, its AWS environment expanded alongside. Over time, multiple cloud services were enabled, but there was no regular review of those services and spending patterns. Resources were rarely audited after being set up, so unused instances, backups, and features continued running. Monthly AWS bills kept increasing without clear ownership or accountability.

Unmonitored Cloud Services and Costs

An Overview of the Project

We started by analyzing six months of billing data. Our cloud consulting team reviewed every enabled AWS service and compared it with actual usage in the site. Services were first stopped and monitored for a couple of days to make sure there was no impact on site performance.

We addressed cost leakage across compute, storage, networking, and managed services. Unused EC2 instances were removed after image processing workloads had already shifted to AWS Lambda. Legacy AMIs, database backups, CloudWatch logs, and ECR repositories were cleaned up, and clear retention rules were implemented to avoid long-term accumulation.

We also disabled high-cost features such as Fast Snapshot Restore, removed idle services including unused load balancers and AWS Transfer Family, and downgraded Redis for staging. Development resources that were no longer active were also decommissioned.

Together, these changes eliminated unnecessary recurring charges and kept production and staging environments fully operational.

Client Feedback

This wasn’t a one-day cleanup. They took the time to understand how our platform runs day to day, cleaned up what no longer served a purpose. We now work with an AWS setup that’s easier to manage and far more predictable from a cost perspective.

Darren DeFeo
CEO, TopDawg

The tricky part was making changes without affecting site operations. We disabled services gradually and only made permanent changes once we were confident nothing depended on them. It was slow by design, but essential to keep everything stable.

Anjali Soni

Sr. Software Engineer at Radixweb

Project Challenges

  • Limited Visibility into Active Service Usage - Many AWS services were enabled over time without clear ownership or documentation. It was difficult to determine which resources were still supporting live workloads versus those quietly adding to monthly costs.
  • Risk of Disrupting Live Operations - Cost reductions had to be executed without impacting order processing, supplier integrations, product imports, or background jobs. We had to follow a cautious, phased approach rather than aggressive resource deletion.
  • Accumulated Legacy Configurations and Backups - Older AMIs, backups, logs, and features remained active from previous architectures. All these created cost leakages that needed validation before removal to avoid breaking dependent workflows.

Solution Scope

EC2 Footprint Reduction

EC2 Footprint Reduction

We removed 10 nano EC2 instances after image processing shifted to AWS Lambda to eliminate unnecessary compute costs and save approximately $34 per month.

Disabled Snapshot Acceleration

Disabled Snapshot Acceleration

Fast Snapshot Restore had been enabled by default but never actively used, so it was switched off to immediately eliminate unnecessary snapshot-related charges, around $558 per month.

AMI Backup Cleanup

AMI Backup Cleanup

A review of historical deployments revealed 195 AMI images retained only as backups. Those were safely deleted to reduce storage costs by approx. $72 per month.

Removed Development Instances

Removed Development Instances

Several development EC2 instances were found running without active usage and were shut down permanently. We removed idle capacity and saved $5 per month.

Transfer Service Decommissioning

Transfer Service Decommissioning

AWS Transfer Family was still active despite no longer supporting any workflows and removing it helped cut recurring service costs by $223 per month.

Unused Load Balancer Removal

Unused Load Balancer Removal

We identified an unused load balancer with no incoming traffic and removed it to prevent ongoing networking charges and save approximately $32 per month.

Deleting CloudWatch Logs

Deleting CloudWatch Logs

Obsolete CloudWatch log groups accumulated over time were deleted, lowering log storage and ingestion costs and saving approximately $30 per month.

Downgrading Redis Cache

Downgrading Redis Cache

Because staging workloads required far less memory and throughput, the Redis cache configuration was downgraded to better reflect usage. It resulted in savings of $34 per month.

Image and Backup Retention Control

Image and Backup Retention Control

Unused ECR repositories were removed, container image retention was limited to the last five deployments, old database backups were deleted, and database backup retention was reset to 2 days for staging and 15 days for production. All of this saved around $164 per month.

AWS Cloud Cost Optimization Scope
Talk Directly with Our Cloud Leads

Discuss your cloud architecture, performance, and constraints in a working session. You’ll leave with immediate next steps and a solution outline.

Key Optimization Strategies

Usage-Led Assessment

We reviewed all the active AWS services and compared it directly to site workloads like product imports, image processing, background jobs, and database activity. Anything without a clear operational role was flagged for validation.

Environment-Specific Decisions

Production and staging environments were evaluated separately. We applied more strict controls to staging, but the production retained configurations needed for backups and recovery requirements.

Dependency-Aware Execution

Each change was reviewed for downstream dependencies in queues, scheduled jobs, storage, and integrations. We had to make sure that removing or modifying resources did not break hidden workflows.

Preventive Cost Controls

To avoid future cost leakage, we introduced retention rules, cleanup policies, and configuration standards, so that unused resources do not silently accumulate again.

Business Impact

The team saw immediate outcomes of the cost-saving measures we implemented. Monthly AWS cost stayed predictable and within budget, which helped our client make viable spending strategies.

Reduced Monthly AWS Spend

The engagement reduced monthly AWS costs from approximately $2,500 to $1,400 under the original architecture. That’s a ~40% reduction without affecting production workloads.

Cost Recovery After Optimization

We implemented some more performance-related changes in the architectural, and the monthly spend finally stabilized at approx. $2,100.

Faster Cost Visibility

What previously took weeks of billing reviews can now be assessed in 1-2 hours. Monthly AWS costs stopped fluctuating. Budgeting and forecasting became a lot easier for our client.

Cost Justification for Scaling

As baseline costs were under control, our client could approve new infrastructure spend based on actual performance needs rather than reactive billing spikes.

Validate Before You Commit

Start with a paid pilot focused on your enterprise environment or workload. Clear scope, fixed timeline, and outcomes are benchmarked before full rollout.

Radixweb

Radixweb is a global product engineering partner delivering AI, Data, and Cloud-driven software solutions. With 25+ years of expertise in custom software, product engineering, modernization, and mobile apps, we help businesses innovate and scale.

With offices in the USA and India, we serve clients across North America, Europe, the Middle East, and Asia Pacific in healthcare, fintech, HRtech, manufacturing, and legal industries.

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MoroccoRue Saint Savin, Ali residence, la Gironde, Casablanca, Morocco
United States6136 Frisco Square Blvd Suite 400, Frisco, TX 75034 United States
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