The e-Commerce industry has witnessed apparent growth in recent years. The advancement in technology has paved the road for retailers to explore this new arena much to their benefit. With endless possibilities, it will help them beat the competition, and stay ahead of the knowledge curve. Research shows that eCommerce spending has grown to $2.1 trillion over the past few years. Retail eCommerce sales are projected to surpass 600 million US dollars by 2019, as according to Statista.com. Further, it is also suggested that eCommerce will witness a generation of a hundred billion US dollars in revenue for the US region by 2019. Even, if things continue moving at this pace, eCommerce spending will touch $5 trillion by 2020.
These staggering numbers are ample proof of not only the growing popularity but also the potential it offers especially when you factor in the boom in customer demand and a robust market that is more than ready to fulfill it.
Unfortunately, despite the rapid growth of the global e-commerce industry, several eCommerce businesses fail to do well. Considering that the overall production is thriving, this can be particularly troubling.
However, developing the business of eCommerce is indeed challenging. It requires them to focus on the end-to-end process, from website development to maintainance, and customer service.
So when you also think of just how much is at stake in an e-commerce business, failure isn’t an option. So, let’s consider some of the most common challenges faced by eCommerce businesses today, and how you can deal with them to ensure your venture is a success.
1. No identity verification: Many times, when a customer signs up on an e-commerce website, the company fails to verify the details provided by the customer. It can result in revenue losses when, say, a customer places a COD (cash on delivery) order with fake or invalid information, such as address or contact number. To deal with this, set up a process to recognize suspicious activities and identify phony email ids and phone numbers. Also, make it a point to check the veracity of the customer’s identity by sending texts or emails when they sign up.
2. Shared web hosting: Though shared web hosting may have seemed a lucrative option until now, the fact remains that it can be somewhat restrictive when it comes to storage space and bandwidth. Long story short, if the traffic to your online store exceeds the regular number, the website will instantly crash. The ideal way to deal with this is to move to a managed cloud. Other alternates include VPS or dedicated hosting solutions.
3. No trust and brand loyalty: Anyone who runs a business would tell you that establishing trust and brand loyalty among your customers are vital for success -- the same holds for e-commerce too. Unfortunately, current efforts aimed at building trust and commitment tend to fail in the eCommerce market. Hence, it is imperative that you carefully study your customers’ expectations and demands and deliver accordingly.
4. Dissimilar data management systems: A business typically uses multiple data management systems, including ERP, CRM, and POS (Point of Sale) systems and such systems are entirely different in not only their architecture but also in deployment and use. It can result in significant resources being wasted away on different systems, thus obstructing the necessary focus on internal requirements. eCommerce businesses must ensure that all such data systems they mesh well together and serve to drive your store’s growth instead of interfering with it.
The eCommerce industry is undoubtedly an intensely competitive space to be in. However, if you take care to avoid the issues above and find a trusted name for developing an e-commerce solution for your store will have an infinitely better chance at success.