Top eCommerce Industry Challenges & Ways to Overcome Them
Living in a highly competitive era, many entrepreneurs are struggling to address the challenges faced by eCommerce businesses. Having a proper eCommerce store is essential for the success of any business, as it acts as the key retail growth engine.
The eCommerce is expected to hold 17% of the industry by 2022 & this growth rate has brought many eCommerce challenges.
Without the adoption of intelligent digital retail practices, it is quite impossible to tackle these challenges effectively. With more than 80% of shoppers that buy online, every user believed that a fast and highly responsive online marketplace is a must for an exceptional shopping experience.
Before you hire experts from a reliable eCommerce web app development company, let’s find out how leaders address eCommerce businesses’ core challenges to achieve a competitive advantage.
Main Challenges Faced by eCommerce Businesses & Their Solutions
Resolving Data & Cyber Security Issues
Security breaches are still the main concern when it comes to eCommerce as businesses need to deal with lots of data. Any technical issue with data can cause huge damage to brand image & retailer’s daily operations.
Act smart and always back up your data. You can install the best security plugins that work best for your website to avoid any data mishaps.
Delivering Great Customer Experience
Another aspect that plays a huge role in attracting customers is customer experience. Shoppers expect a similar experience they get when they shop at physical stores.
From seamless website flow, and segmentation to hyper-personalized products based on their preferences, your eCommerce website should offer all.
The first thing you can do is to build a clean and easy-to-use website that helps shoppers navigate through easily. Having clear CTAs (call-to-actions) that guide users throughout their purchase journey is also effective in encouraging sales of your products.
Turning Shoppers to Paying Customers
A common eCommerce challenge faced by many is to turn one-time website visitors into paying customers.
On several websites, business owners get a lot of traffic with a lot of clicks as well as impressions but are unable to make sales. This can be a problem if it happens more often and the business is not getting sales.
Finding the core reason why your shoppers are not converting is very important. Also, check if you are targeting the right audience or not, if your mobile website is working the way it should, and if any technical challenges are faced on online platforms, whether you are offering a personalized experience or not.
Take time to think from a shopper’s point of view & see if you are missing out on anything.
Attracting the Right Audience
Shoppers today have infinite choices when they need to shop for anything. What they usually do is do some research before finalizing the one.
Ensuring that they choose you and your brand among several options is important. You must make sure that you find the perfect customer who is interested to buy your product at the rate you offer them.
One of the ways is to partner with companies that can help in targeting the right audience for your business. Another way is to use a digital marketing approach rather than traditional marketing as it can be quite helpful to target your ideal customer.
Well-planned marketing strategy with A/B testing, fine-tuning & analysis can help show your products to potential customers.
Gaining Customer Loyalty
Retaining your loyal and existing customers is a must as it can cost more than 5X to acquire a new customer. Also, the success rate of sales while selling to an existing customer is 60-70% as compared to the 5-20% rate of selling to a new customer.
Keeping customers for life is still a challenge but we know how important customer loyalty is and why businesses must take the help of the right Ecommerce Customer Loyalty Program Software.
The first simple step is to have excellent customer service because satisfied customers are more likely to make a purchase again. Another thing you can do is stay in touch with your customers via email, SMS, or blog posts after finding out what works best for you.
Also, make sure that you keep your customers posted about new product launches, sales promotions, and special discount codes for loyal customers.
Dealing Returns & Refunds
60% of online shoppers prefer to buy from brand websites that offer a return policy on their products. The ones with “No returns or refunds” are a big NO for many customers as they feel these brands are less likely to be trusted making them nervous before the purchase.
Online shoppers prefer the flexibility that offers them easy returns and timely refunds before they get the final product of their choice.
Ensure that you offer a flexible return and refund policy that not only boosts customer satisfaction but helps customers make purchases without getting nervous.
Customer satisfaction plays a main role in winning customers ‘hearts for any retailer.
With more and more customers that buy online, there is an increase of issues that they face every day while shopping from eCommerce websites. Customer support has been integrated with chatbots that ensure faster processing and resolution of issues/complaints.
One feasible solution to the above issue is using a combination of technology and human assistance to help tackle customer support queries effectively and on time by differentiating specific issues that require human assistance and the basic ones that can be handled by a chatbot.
The ability to sell your products across multiple channels helps eCommerce business owners to increase overall revenue and average order value (AOV).
A study says that customers who shop at multiple channels are more likely to spend 3 more times than an average customer. But, it is important to ensure that you use the right channels.
Make sure to use the data that are collected from different channels to select the top performer and optimize them for your target customers.
This also helps in reducing your spending on less-effective platforms & focus more on the best ones.
As we can see most retail sectors have taken a hit, it is mainly after the pandemic that led to changes that took place in 2022 i.e. shift to digital.
With more and more staying indoors due to physical movement restrictions, the number of Google searches has multiplied and people who preferred physical retail stores now have started using eCommerce solutions more frequently.
With the eCommerce world moving towards digital transformation, it’s time for your business to act and overcome eCommerce challenges with the right solutions. Ensure that you check out and stay aware of these challenges to resolve them on time.
Being a reliable eCommerce mobile app Development Company, Clavax can help you resolve any queries related to eCommerce app development or any challenge.
Connect with our team to turn every challenge into an opportunity for your eCommerce business growth.