How to Approach E-commerce Challenges!

21 Sep

Global e-commerce sales are expected to grow to $6.4 trillion by 2024. That’s a huge market to potentially capitalize on.

The events of 2020 and 2021 only added fuel to the fire. E-commerce share of the retail market increased as much in the first half of 2020 as in the last 5 years. Global e-commerce sales are expected to grow to $6.4 trillion by 2024. That’s a huge market to potentially capitalize on.

E-commerce companies are facing new challenges as they adapt to the latest e-commerce trends and try to create a digital experience that will match customers rising expectations.

Other challenges you may face include maintaining cybersecurity, driving traffic to your site and maintaining customer loyalty. In this article, we’ll look at some of the common challenges faced by new e-commerce businesses and those looking to expand their online presence.

More importantly, we’ll look at how you can overcome these challenges.

Before you jump in with both feet and throw your whole budget behind your digital transformation plan, let’s consider some of the challenges facing online businesses today. These are just a few of the challenges to be aware of.

1. Facing increased competition.

You’re not the only one noticing a big uptick in e-commerce sales. Many business owners and aspiring business owners are taking note. But while new stores are cropping up every day, there are still opportunities to have a competitive edge.

Unless you’re selling something truly unique, chances are you have some competitors out there. The key is to figure out how to differentiate your brand from the competition. What value propositions do your products offer that are different from others on the market? Or if your products are similar to others, how can you make your brand or customer experience superior? Ultimately, you just need to give customers a reason not only to buy from you over other similar offerings, but also to be so satisfied with the products, brand and experience that they both purchase again and also convince others to do the same.

2. Needing to fulfill orders in a timely fashion.

A successful shipping and fulfillment strategy is imperative to an e-commerce business. After all, the experience doesn’t stop after the customer checks out. And in fact, a poor delivery experience can stick in the memories with shoppers.

In fact, 87% of consumers say the shipping and delivery experience directly impacts their decision to shop with the merchant again. Additionally, when it comes to having a positive experience with shipping, 63% say it needs to be fast and 66% require a free option.

What you sell and your overall business model will inform your fulfillment strategy. If you dropship products, you will likely have a more hands-off approach and shipping will be handled by a third-party. All businesses can potentially leverage a third-party shipping solution to handle fulfillment. This can help them limit the number of shipping zones a product has to travel through by keeping them at multiple warehouse locations, which can shorten shipping times.

3. Difficulty driving valuable traffic to the site.

Taking a step back from worrying about carts that are filled but not checked out, how do you actually get potential customers to your site? It’s one thing to drive traffic and get more eyes on your products, but you need specifically to reach those that might be interested in your products. Depending on your industry and products, that could be a very wide or very narrow audience.

Driving valuable traffic to your e-commerce website is an important challenge to overcome because it directly affects your ability to get sales and make revenue. In order to reach new customers, you first need to understand your audience. Determine who is buying your products now and who might be interested who isn’t aware of them. Research your audience to learn their demographics and where they are spending their time online. Consider what sources will drive traffic to your site and prioritize those that align with your audience research. This could include organic traffic (search engines), social media platforms, email or word of mouth.

4. Maintaining customer loyalty.

The best kind of customers are happy customers. Happy customers return to buy more. Particularly happy customers may even spread the word to their friends. However, building and maintaining customer loyalty can be a challenge, especially in an era when so many options are at consumers’ fingertips.

Of course, some aspect of customer retention will likely be based on your actual products. However, there are also things you can do to improve the customer experience. Providing good customer service helps to build trust in your brand. As much as 95%of consumers say that customer service is important for brand loyalty.

And don’t forget that the positive customer service and experience doesn’t stop after checkout. One survey found that 96% of consumers will go back to companies who made returns and exchanges as seamless as possible. Part of maintaining customer loyalty and building trust in your brand is to provide a simple and straightforward return or refund policy.

5. Combating cyber attacks.

Online stores are treasure troves of customer data. For this reason, online retailers are a high-value target for cyber criminals. In fact, a 2020 Trustwave Global Security Report found that retail was the most compromised sector for cyber attacks.

The importance of protecting your store from a high-profile data breach or other malicious attacks cannot be overstated. These attacks can have significant financial implications as well as lead to a loss of customer trust in a brand. In fact, one study found that approximately 20% of people who learn about a breach stop shopping at a particular retailer altogether.

There are important steps you can take to mitigate your risk. This is a great primer to walk you through e-commerce security. Additionally, your choice of e-commerce platform can have an impact on how easy cybersecurity is to maintain.

And that means you’ll need to:

  • Ensure secure configuration and coding.
  • Conduct proactive security monitoring like penetration testing and regular vulnerability scans.
  • Ensure the security of all customizations, extensions, apps or integrations.
  • Control all code deployments security patch applications.

About Keshav

Digital Marketing Strategist by Profession. Currently working in BMN Infotech - A Leading Software Company in Amritsar, India! He is passionate about SEO and experimenting with Social media and Content Marketing to generate quality leads.

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