The eCommerce industry is constantly evolving, and the COVID-19 pandemic has fueled eCommerce development like never before. Various giant retail stores have been either closed or shut down forever. More and more consumers prefer to shop online from eCommerce stores. Roughly 73% of people are purchasing online these days to safeguard from coronavirus as increased.
Talking about the financial aspect, the total transaction value of the eCommerce segment is 3.7 million USD during 2020, and it is going to hit the mark of 4.5 million USD by 2023. This surge in traffic and online revenues have posed great challenges for online retailers. To sustain in the market while keeping the competitors behind, it has become imperative for online retailers to think innovative in terms of eCommerce development. However, to achieve such an edge over the rivals, there are certain challenges the retailers must overcome.
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So, what are the eCommerce challenges faced by online retailers?
Never-ending customer expectations
Online retailers across the world invest hard in eCommerce website development to build a strong reputation and establish a strong brand image. However, online shoppers are one of the most notorious audiences you will ever get. They always want something new and something interesting to begin with. In such a scenario, it is becoming a challenging task for online retailers to fulfill ever-changing customer expectations. Many giant online eCommerce platforms are shifting from the conventional shopping experience to provide a personalized experience to the customers to fulfill their needs.
The arduous task of fulfilling orders
One of the major challenges for online retailers is order fulfillment. Though you ask an eCommerce development company to carry out the technical aspect, you may face enormous challenges fulfilling the order. You may receive a greater number of orders than you are prepared for. In such a scenario, the entire order fulfillment process becomes difficult to manage and achieve.
The small retailers who have recently jumped into eCommerce website development should start leveraging from the third-party logistic service providers having highly automated warehousing solutions. It can help you lower down the cost and manpower required to fulfill the orders.
Being AGILE
When we talk about agility, the first thing that comes to our mind is to adapt to the changes. Be it a technological advancement, digital content, or responding to the seasonal changes; being agile has become one of the major challenges for the eCommerce service providers. Most online retailers find it difficult to transform their business to fulfill the changing customer needs. It is because they can’t integrate the latest technology or innovations.
Search engines will become difficult to cope up with
The days are gone when incorporating merely a few keywords would help you list top in the search engines. Today, the search engine algorithms have matured and become a lot more complex as compared to previous days. The search engines today put user experience on the top priority, and thus, simply optimizing your eCommerce business for the keywords will not help you get the desired results. You may have to get in touch with the professionals providing eCommerce development services without compromising the SEO.
Generating meaningful traffic
This point is linked to digital marketing. Today, digital marketing channels are growing rapidly and have become mature. Online retailers cannot rely on any specific digital channel to generate traffic. However, it is becoming a huge challenge for small retailers to leverage and invest in digital marketing channels like SMO, PPC, targeting mobile audiences, shopping engines, and affiliate marketing.
Also Read – Top reasons why eCommerce business owners should build Mobile Apps?
Converting visitors into paying customers
This is linked indirectly with the above challenge. Many times, retailers can drive quality traffic, but they often fail to convert them into paying customers. Designing an attractive website with the help of an eCommerce development company is just a beginning. It is a must that retailers understand who they are targeting. But most of the retailers find it challenging to identify and form a group of customers who can be their consistent source of revenue and who are loyal to them.
Customer retention is a headache!
The ultimate objective of any online retailer is to SELL their products. However, they often forget that retaining customers is an important aspect to survive in this fiercely competitive market. In the race of increasing online revenue, most of the online retailers fail to engage with the customers and find it difficult to establish a bond at a personal level. The main reason behind this is because they fail to utilize the right kind of marketing automation tools. This results in increasing pressure to retain customers.
Keeping critical information intact from the security attacks
Most of the small online retailers often lack the necessary tools and technologies required to avoid security breaches. This results in a higher number of cybersecurity concerns about critical information related to customers and business. It has become a big challenge for retailers to come over the security threats, such as breach of credit/debit card information, phishing attacks, and a steal of confidential information.
Fiercely competitive market
The internet is a global platform available and open for everyone. It provides equal opportunity to everyone. This makes it difficult for eCommerce retailers to stand out differently and win the race in the presence of well-established and renowned brands. No matter how hard they have invested in eCommerce development services since several other businesses provide the same products, it is a do or dies situation for the startups to carve a place for themselves.
Managing your own eCommerce business has posed a great number of challenges. While you may have encountered some of these challenges, many of you might not face them yet. In a nutshell, the eCommerce business requires a great amount of optimization and attention to overcome such challenges, and getting these roadblocks thrown away is the only way to survive in the market. What’s your take on this? Do you feel professional eCommerce development could help you overcome these challenges? Get in touch with us to know how you can keep such roadblocks out of your way!
Frequently Asked Questions
eCommerce businesses face challenges such as intense competition, cybersecurity threats, logistical complexities, changing consumer behaviors, and the need to adapt to evolving technologies. Addressing these challenges is crucial for sustained success.
Intense competition in the eCommerce landscape can lead to price wars, reduced profit margins, and the need for differentiation. Online retailers must focus on building a unique value proposition, providing excellent customer experiences, and staying agile to stand out in the market.
Logistical challenges include inventory management, order fulfillment, and efficient shipping processes. Overcoming these complexities requires implementing advanced supply chain solutions, optimizing warehouse operations, and choosing reliable shipping partners.
Consumer behaviors and preferences are dynamic. To adapt, eCommerce businesses must leverage data analytics, conduct market research, and actively engage with customers to understand their evolving needs. Flexibility and a customer-centric approach are key.
Cart abandonment remains a significant challenge. eCommerce businesses can combat this by optimizing the checkout process, offering incentives, implementing remarketing strategies, and addressing common reasons for abandonment, such as high shipping costs.
Customer trust is paramount. Building trust involves transparent communication, secure transactions, prompt customer support, and maintaining the confidentiality of customer data. Trust is a cornerstone for customer retention and positive word-of-mouth.
The rise of m-commerce introduces challenges related to mobile optimization, app performance, and security on mobile devices. eCommerce businesses must ensure their platforms are mobile-friendly and provide a seamless experience for users across various devices.
