E-commerce is expected to claim at least 17 % of the industry by the start of 2023. With the increasing size and business of e-commerce, riding the e-commerce wave is not easy. With the growth of e-commerce, there is the rise of various challenges as well faced by business owners. As an e-commerce business owner, you have certain unique challenges compared to brick-and-mortar shops (traditional shops). Here we are listing the top 10 e-commerce challenges.
What are the top challenges of the e-commerce business?
Table of Contents
All aspects of E-commerce business face challenges and difficulties. Here is a brief look at some of the top challenges.
Cyber and Data Security:
There is always news of website hack as well as data/card details leakage/ password leakage of e-commerce store websites. These types of websites/stores require a lot of information/data and technical issues may create malfunctioning of the website and virtually the store. For safety, regular backups should be taken and you may also use security plugins. There are various plugins that prevent them from the web site being hacked.
Online Identity Verification:
When a buyer enters information to purchase, it is not sure that information is genuine, therefore you are not sure if they are genuinely interested in purchasing.
For example, Cash on delivery orders made using Fake numbers/addresses can be a huge loss for the company.
For a solution to it, you may do automated calls before confirming orders to Cash on Delivery customers. You may use some software solutions. AI may be used in the future. You may also send automated verification links to customers.
Shopping Cart Abandonment:
It is a usual trend for e-commerce stores of any size as buyer adds products to their Shopping cart, but does not place an order. They abandon their carts, They also start checking other e-commerce stores in search of the best price option.
So how do you cut the shopping cart abandonment?
Solution-
Redesign your shopping cart– The shopping cart should be easy to navigate and easy to find. There should be no tedious form filling. One of the major reasons for shopping cart abandonment is the tedious checkout process. Also, guest login should be there as still a large set of users/persons are not so keep to register and date to be saved.
Nurture Your Customers– Live support chat may be used to nurture your customers.
Email Reminders– Some platforms have built-in email reminders and as per set rules, you may send reminders to users who have saved products in the cart but could not place orders.
Retargeting Marketing– Using retargeting, there is always a chance of a better success rate in making sales. Customers who are shown retargeted ads have shown a 50-60% chance of likelihood of converting.
In an article on how to develop an e-commerce website, you may read in detail which things may give a better user experience.
Nurturing Customer Loyalty:
Customer loyalty for e-commerce stores is a matter of concern for most e-commerce stores even with big brands with a huge assortment of products and with various functionalities on e-commerce sites.
Acquiring a new customer in the e-commerce space is always a challenge and more costly than retaining an existing one.
Since there is no face-to-face interaction so there is always less loyalty as compared to traditional brick and mortar shops. Loyalty requires a comparatively longer time to be developed in e-commerce stores.
To get faster customer loyalty you must be transparent, add a live chat, use customer loyalty programs, publish blog articles, etc. Above all user experience from purchase to delivery should be smooth and hassle-free.
Product Returns and Refunds:
Over 60-70 % of buyers check product returns and refund policies before making a purchase from an e-commerce store.
If shops/stores provide a smooth/less complicated return policy, then customers would shop more.
For this, there should be transparent policies in FAQ, terms and conditions page, return and refund page, etc, without using Imperative phrases (such as you must, you are required, etc, which sound harsh ). Another major solution should be a faster refund as everyone wants quick money back to the original account.
We have enlisted must-have pages on your e-commerce store, you may check if your website has them all.
Competition from Manufacturers and Retailers:
Nowadays manufacturers from whom you purchase products seel start their own e-commerce store/own distribution network and become your competitor as well. So it’s difficult to match their pricing as well.
It’s a fact that you can not stop manufacturers from selling directly to customers- so how you can minimize the problem.
For this, you need to select manufacturers carefully who are less likely to be your competitor/less likely to sell directly to customers. You may address competition in your partnership contract. Also, you may give better value to customers as compared to others.
Providing Omnichannel Experience:
Nowadays e-commerce store owners provide various channels from which shopping may be done (apart from e-commerce stores). Live chat, forums, Insta, Facebook, etc. may be used for touchpoints through which customers can be reaching out. The most important channels for your customers can be identified and may be optimized.
Shipping:
Customers want products delivered at free shipping and at the earliest as customers do not want to wait for a long period.
Amazon/Flipkart etc. provide free shipping for almost all products over a minimum amount of order. Amazon provides free shipping for all products using some subscription methods as well.
Its solution may be finding a reliable shipping partner but offers a competitive rate. Also subscription offers etc. may work well.
Digital Marketing is getting more expensive:
There is a lot of digital media competition for e-commerce stores and big players are investing higher amounts, so matching those amounts by a new entrant may be very challenging.
For this e-commerce stores should target specific audiences and use retargeting techniques. Also, stores must be thorough in tracking marketing analytics and see which is doing better for them.
Choosing the right technology and partners:
Some e-commerce store owners may face challenges as technology is limiting them or in some cases, they have hired the wrong partners/agencies.
They must choose the right shopping cart solution/SAAS partner, hosting service provider, email marketing provider, CRM systems, and so on.
You may read a complete article on important e-commerce trends which you may keep in mind for the future during the development/selection of the right technology partner.
Challenges of eCommerce Business – Final Thoughts:
We have seen many exciting and positive changes in the field of e-commerce, but there is still various area of concern in which e-commerce business owners are struggling with the challenges that e-commerce brings. The above-discussed solutions are fixes that any e-commerce business owner may use to help achieve ideal customers and target sales.
For any questions related to e-commerce challenges as well as the best e-commerce development, you may get in touch with us.