by According to recent data, E-Commerce spending has risen to $2.1 trillion in the past few years and will reach $5 trillion by 2020.
Such rapid growth promises a great future for the Indian e-commerce industry signifying a strong market and increased customer demand. Despite these growth trends, many e-commerce businesses fail to take off within their first year. It is worth exploring the various challenges which the ecommerce.
Over the past 10-15 years, electronic trading platforms have emerged in the depths of large enterprises as a system of resource allocation between departments. Shoes, furniture, consumer electronics – there is almost nothing that cannot be ordered on the Internet. But the consumption in the net has also dark sides. Bogus orders, fake websites, illegal purchases, etc. are also more frequent. In such a case, the protection of user data has also become a major challenge in the online world. With the growing financial services, the type of payment your business accepts also effects the e-commerce today. Payment solution like My Payment Savvy provides a custom payment solution for your business which can maximize your conversion. We have listed some of the major challenges facing e-commerce today, and their solutions.
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Dependence on Google for traffic
Google is the world leader in search engines, and by extension, responsible for the visibility of websites. More than 50% of online shops are dependent on Google for traffic. Despite plans for new search engines that are competing with Google, the supremacy of Google seems destined to last a few more years. And this can impact e-merchants when Google changes the rules of the game. Recently, there was the requirement to switch to HTTPS to make Google Shopping campaigns, in addition to displaying the non-security of data in the Chrome and Firefox browsers. Unencrypted web pages that query passwords, bank details or credit card information was marked as “unsafe” by major browsers such as Google Chrome, Mozilla Firefox, Microsoft Edge and others. Therefore, it is recommended changing the traffic acquisition channels of websites, so as not to depend solely on Google for visibility and transactions.
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Absence of online verification of customers
The genuineness of the new customers is questionable in an online portal. When a visitor signs up, e-websites have nothing but the address and phone number entered by them. If those visitors are a scam, and if they order cash on delivery purchases to a fake address, it can be a huge loss for the company. It becomes impossible to contact them if the number is also fake. Therefore, to be at the safe side, e-websites or online portals should take all necessary steps required to decline these risks. It is necessary to recognize bogus orders, fake phone numbers, invalid zip code, etc. Alternatively, they can install services or software that automates a call on placing an order. These services also send some verification code through SMS to validate the customers’ identity. It can help in reducing the number of cancellation and bogus orders which may otherwise be expensive for the business.
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Maintain Customer Loyalty
Customer loyalty is an important indicator of firm performance. The modern consumer is so sophisticated and busy that showing content or sending offers that are not relevant to him at all is a real failure. If the online store does not understand what the potential consumer wants or does not consider it necessary to understand, then it may cost the store a customer. Unlike normal street shopping, the buyer and seller do not see each other in online shopping. Therefore, it is difficult to build trust between them. Building trust, therefore, can take some time and transactions in online shops. You can also earn customers loyalty through excellent customer service. By displaying your address, answering calls, adding a live chat option on your website, etc. can also help you in building trust among customers.
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Customer Service
In a general store, the customer leaves the store with his product. However, this situation is not the same as e-commerce. In e-shopping, the user sends you money for a product he does not have yet. He waits impatiently for the arrival of his order. Problems can still arise if the delivery service provider has lost a package, or the product has been damaged during transport, or you have simply fallen behind before shipping. This can cause customer dissatisfaction, which will then need to be managed. The idea is to be transparent and responsive and to keep customers abreast of the situation as soon as possible. If you are in a discussion with the delivery provider to find a lost package, keep the user informed of your steps, do not wait for him to come to the news. Similarly, if you are late in your parcel preparations, inform him of the expected date of shipment. If the product has been damaged during transport, quickly propose a solution according to your legal notice, whether a total or partial refund or a replacement. Internet users who have received good communication in the case of litigation generally keep good relations with the e-commerce site, 95% of the negative opinions turn into loyal customers if a solution has been made. The responsiveness of the after-sales service greatly affects the image of a company.
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Plan your digital strategy
In the continuity of the multidisciplinary profession, the e-merchant forgets to promote and animate his merchant site. E-merchants should determine the communication channels to be used (social networks, newsletters, partnerships, online advertising) and define the messages to be transmitted, set up editorial planning, create the visuals, etc. Getting help from an outside provider for some of these tasks can help to free up time for managing your e-commerce site.
The everyday life of the e-shopkeeper is filled with things to manage, to plan, and lots of small tasks to do. As such, it requires outstanding strategies to survive in the e-commerce competition.
