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5 Common Challenges of Ecommerce & How to Overcome Them?

Updated: Feb 23

Priority is being given to the Ecommerce sector as more people are now inclined towards buying products and services online. Running an ecommerce business can be a mix of smooth and bumpy rides. Most businesses can relate to the challenges of ecommerce in today’s dynamic digital world. Whether you’re a pro or a newbie to this field, you constantly need to find solutions to the problems of Ecommerce business.

Once you pinpoint the key issues, it’s vital to find feasible solutions without causing a lot of disruption in your existing process. In this blog, we have covered the key issues faced by the Ecommerce sector and how to overcome them.

Here are those 5 common challenges of ecommerce and solutions (How to overcome them?)

Security and data privacy

An ecommerce store is a storehouse of data and information, holding a lot of private and confidential information. Therefore, it is natural that unethical hackers and attackers always lurk on the dark web to steal confidential information. Ecommerce stores and are always looking for ways to breach security on such platforms. In that scenario, it becomes tough for Ecommerce businesses to manage security and data privacy.

There are some key questions you need to address:

  1. Who is trying to enter your store – an authorized user or a hacker?

  2. Is the data in your store protected from threats of data loss, deletion, or breach?

  3. Are the security patches working properly?

All these questions are major problems for ecommerce businesses.

How to fix them?

The best way to maintain data security is to use various security features, patches, and plugins on your ecommerce store. Additionally, you need to activate two-factor authentication and authorization via OTP and password to ensure that only authorized users enter your Ecommerce store.

Customer experience and loyalty

Customer experience and loyalty are the inherent challenges of retaining customers- especially for ecommerce businesses. Brand loyalty matters in the long run. Thus, it is crucial to have a strong customer experience strategy. Leverage that mindset; invest in the people and technology that help you deliver great customer service.

From installing help desk software and handling customer queries to free/discounted delivery, make sure your customer has a smooth connection with your brand. It also includes their knowledge of your website and online store. Evaluate your checkout process periodically to figure out delays, bugs, or typos. Every small improvement goes a long way in making customers feel valued.

How to fix it?

You can keep customers returning by starting loyalty programs, offering discounts and offers for repeat purchases, and providing vouchers on special occasions. What exactly you should offer is something that depends on your business and your ideal customer. Your customers will likely do business with you again if you have these systems in place.

Branding plays a big role in building costumers loyalty. ThinkConverse and Nike- these brands have a huge following on every social media channel. Part of that loyalty comes from expensive media mentions and brand collaborations, but a large part comes from word of mouth. Create a community of people who like you and enjoy your products by being active on social media.

Social media can get overwhelming quickly, so start small and expand as your resources grow.

You can also use social media ads to increase your brand’s visibility. The people who follow your brand will buy from you over time, and those who believe in you will tell others about you.

Choosing the right technology

You need the right technology to succeed, whether implementing a wholesale B2B e-commerce model or selling directly to consumers. A well-integrated e-commerce system keeps your inventory organized and ensures a smooth customer experience. As your business and online sales grow, so do the technologies you need to support your business’s growth adequately.

To provide room to scale, it’s important to consider how easily and cost-efficiently your chosen technology stack can integrate with your future technology needs (e.g., Ecommerce integrated with customized CRM software).

How to fix it?

Choose the most appropriate technology for your Ecommerce business, be it CRM systems, inventory management software, shopping cart solutions, email marketing software, or analytics.

You can also streamline your tech-based dependency by implementing Business Intelligence. It is one of the new favorite phrases used in business today. As data gathering becomes more efficient, companies find themselves drowning in information and unable to make strategic decisions.

So, if you don’t invest in new streamlined business intelligence tools, you may rely on outdated or irrelevant data. You need to turn data into a strategy for your enterprise to thrive. It can only happen if you invest in the right tools for different aspects of your business, like machine learning.

Online identity verification

When a buyer visits an Ecommerce site, how does a retailer verifies the information provided? How do you go ahead if you don’t have precise details? This is where you need to invest in online identity verification.

How to fix it?

There are several ways to incorporate identity verification online. Some examples include Biometrics, AI, Single Sign On, One-Time-Password, Two-Factor Authentication, etc.

Price & shipping

We have all heard of customers who prefer to buy products from places with free shipping. Ecommerce giants like Amazon offer lucrative shipping deals that customers rarely see anywhere else. How can the cost of shipping be reduced for your Ecommerce store?

How to fix it?

While not all Ecommerce sites can eliminate shipping costs, always look for options that work for your customer base. It is feasible to remove the shipping charge by bringing in a subscription plan? Or is there a reliable carrier available at a cheaper rate? Be sure to research and find the best possible solution for your buyers.

Upscale your ecommerce business

When you manage an ecommerce website, you will face challenges different from those you encounter when you run a physical store or another type of business. To generate more revenue and establish customer loyalty, you must address these challenges as your business expands.

The way that you deal with problems will determine the direction your business will take. You can take your business to the next level if you focus on the customer, offer a true omnichannel experience, attract quality traffic, and partner with the right technology partners.

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