Ecommerce worldwide sales are expected increase to $6.4 trillion in 2024. This is a vast market that you can potentially profit from.
The events in 2020 and 2021 only fueled the fire. The ecommerce market share grew as fast in 2020’s first half as it did in the previous five years. Ecommerce worldwide sales are expected increase to $6.4 trillion in 2024. This is a vast market that you can potentially profit from.
Responding businesses are taking note. McKinsey survey data shows that global businesses have increased digitization by around three years. Online shopping is becoming a mainstream option for many offline brands that have brick-and-mortar locations. There is also an increase in competition.
Ecommerce companies face new challenges as they try to adapt to the latest ecommerce trends.
You may also face challenges in maintaining cybersecurity, driving traffic and customer loyalty. We’ll be discussing some of the challenges that new ecommerce businesses face and how they can help you expand your online presence.
We’ll also discuss how to overcome these obstacles.
8 Ecommerce Challenges and How to Solve Them
Let’s not rush to invest our entire budget in a digital transformation plan. Instead, let us look at some of the current challenges faced by online businesses. These are only a few of many challenges you need to be aware.
1. Increased competition
Ecommerce sales are on the rise. Many business owners and aspiring entrepreneurs are paying attention. There are still ways to be competitive, even though new stores are popping up all the time.
Unless your product is truly unique, there are likely to be others. It is important to distinguish your brand from others. What are your unique value propositions that set you apart from other products on the market today? If your products are the same as others, what can you do to make your brand and customer experience better? You just have to give your customers a reason to choose you over similar products. They also need to feel so happy with the brand, product, and experience that they purchase again and encourage others to do the exact same.
2. It is important to complete orders on time.
An ecommerce company must have a successful shipping and fulfillment strategy. The customer’s experience doesn’t end after they check out. A poor experience with delivery can stay with customers for a long time.
87% of customers say that the experience with shipping and delivery directly influences their decision to shop again with the merchant. 63% of consumers want fast shipping and 66% prefer a free option.
Your fulfillment strategy will be influenced by what you sell and how your business operates. Dropshipping products will allow you to be more hands-off and have shipping handled by third parties. To manage fulfillment, all businesses have the potential to use a third party shipping solution. By keeping products at multiple warehouse locations, they can reduce the shipping distances. This can also help to speed up shipping times.
3. It is necessary to provide an omnichannel experience.
Research has shown that customers shop more across all channels than ever before. Customers might interact first with you on social media, then search for prices on a marketplace before finally purchasing through your website. A good omnichannel strategy will not only meet customers where they shop, but also offer seamless brand experiences across channels.
Recent research by BigCommerce and Retail Dive shows that 46% of retail executives believe they will increase their investment in omnichannel going forward, as compared to prior investment plans.
BigCommerce allows you to create an omnichannel shopping experience by making your products accessible in other places than your online storefront. These sales channels are available regardless of your plan, so you can connect to Amazon, Walmart and eBay to reach customers there.
4. Avoiding shopping cart abandonment.
It would be great if every customer who came to your store bought something. Even if all shoppers who visited your store loaded their carts, they completed the transaction. Baymard estimated that the cart abandonment rate was almost 70% based on 44 statistics.
This could be a significant amount of money that is still available. You may be seeing abandoned carts in your shop. This is a sign that you are not alone. These are some possible reasons.
- Slow delivery speeds are responsible for 18% of cart abandonment.
- According to the Baymard Institute shipping costs are the leading reason carts are abandoned.
- Due to the lengthy checkout process, 21% of US online shoppers have abandoned their shopping carts.
These are the key things to watch out for. Customers should be able to choose the shipping option that suits them best. Your checkout process should be simplified to reduce friction.
Make sure you choose an ecommerce platform that offers seamless checkout. BigCommerce is one example of an ecommerce platform that offers native tools for cart recovery. Emails from abandoned carts have excellent conversion rates – according to data from Moosend they have a 10.7% conversion ratio.
5. Traffic is difficult to drive.
How can you get customers to your website? While it’s important to increase traffic to your site and attract more people to your products, you must also reach potential customers who might be interested in what your products have to offer. This audience can vary depending on the industry you are in and what your products offer.
It is a difficult task to drive valuable traffic to your website. This directly impacts your ability to make sales and generate revenue. To reach new customers, it is important to first understand your audience. You need to know who is purchasing your products right now, and who may be interested in them. To find out more about your audience, research their demographics and the places they spend their online time. You should consider what traffic sources you can use to drive traffic to your website and choose those that are most in line with your audience research. This could be organic traffic (search engines), social networks, email, or word-of-mouth.
If your target audience is primarily on Instagram, you can use that platform to advertise your products and possibly sell them. If most of your traffic comes via people searching for the product you offer, SEO (search engine optimization), and making sure that algorithms understand what problems your site can solve, could be a focus.
6. Maintaining customer loyalty.
Happy customers are the best customers. Customers who are happy will return to purchase more. Customers who are happy may spread the word to friends. It can be difficult to build and maintain customer loyalty, especially in an age where so many options are available.
Your products will most likely play a part in customer retention. There are other things you can do that will improve customer service. Good customer service builds trust in your brand. Customer service is an important factor in brand loyalty for 95% of consumers.
Don’t forget to mention that customer service doesn’t end after you have completed your order. According to a survey, 96% of customers will return to companies that make returns and exchanges easy. A simple return policy or refund policy is a key part of building customer loyalty and trust.
7. Combating cyber attacks.
Online retailers are treasure troves for customer data. Cybercriminals are attracted to online retailers because they offer high-value customer data. A 2020 Trustwave Global Security Report revealed that cyberattacks on retail were most common in the sector of retail.
It is vital to protect your store against high-profile data breaches or other malicious attacks. These attacks can have serious financial consequences and cause customers to lose trust in your brand. One study showed that 20% of those who find out about a breach abandon their shopping habits at the retailer. You can also be fined if you do not comply with PCI compliance until you get it reinstated.
You can take important steps to reduce your risk. This guide will help you navigate ecommerce security. Your choice of ecommerce platform may also impact how easy it is to maintain cybersecurity.
Magento has a Shared Responsibility policy for security. This means that the customer is responsible to ensure the security of their Magento Commerce app running in the Magento Commerce cloud environment.
This means that you will need to:
- Secure configuration and coding
- Proactive security monitoring such as penetration testing and periodic vulnerability scans is a must.
- All customizations, extensions and apps, as well as integrations, must be secured
- All code deployments are controlled by security patch applications.
BigCommerce and other SaaS platforms, such as BigCommerce, offer automatic updates to fix security vulnerabilities so that you don’t need to make those updates manually. BigCommerce comes standard with Level 1 PCI Compliance.
8. The right technology can provide support.
Many of these challenges depend on the technology used to manage your ecommerce store. Is it able to provide the digital marketing tools you desire and the shopping cart functionality that you require? What plugins are you going to need? It will allow you to offer the payment options that you desire. To find the right fit, there are many questions to be asked.
These are some of the problems that ecommerce companies have had to deal with that can be fixed by updating their ecommerce.
It’s important to be aware of the challenges that ecommerce presents, whether you are a brand new or looking to expand your online business.
Download this report from Digital Commerce 360 to learn more about the growing pains and challenges that B2B and B2C online merchants face. It discusses six major pain points that ecommerce owners have identified and how they are solving them.