eCommerce Challenges 2021

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eCommerce Challenges 2021

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eCommerce can be a lucrative business, but it isn't for everyone. The challenges we face every day can be challenging. Making it takes a lot of hard work and consistency. There's no sugar coating here, a lot of people fail. They fail because they aren't prepared to handle the problems that come up with eCommerce. They fail because they lack the necessary strategies to prepare for challenges and prevent disasters.

Digitalization has transformed the way companies operate. A customer no longer has to go to a brick-and-mortar store to purchase goods. In addition to selling goods and services online, Ecommerce companies offer multiple touch points within a multi-channel environment.  

However, All businesses aren't making money consistently. A number of challenges stand in the way of their success, big and small. Especially when it comes to preparing an eshop to meet the needs of your customers, developing an ecommerce business is challenging. From website maintenance to customer service, you need to take great care.

eCommerce Problems And Solution


1. Online Identity verification.


Whenever someone visits an ecommerce website and signs up, you need to be sure that this is truly a genuine buyer. If this is done correctly, you can avoid fraud, bots, and fraud-related losses on Cash-On-Delivery (COD) orders (when an invalid or fake phone number or address has been entered, for example).

Is it possible to solve this problem? By taking the proper steps to verify the customer’s information.

Observe suspicious activity first. A large or particularly valuable order could be included in this category. Verify fake phone numbers, emails, and zip codes and identify them using automation.

Send a confirmation link when a customer signs up, via text message or email. COD purchases could even be followed up with an automated phone call asking the customer to confirm the delivery address.

2. Service delivery through multiple channels


Today, people can engage with a brand in any number of ways. You could host a live chat, let a customer leave a message on your social media page, or build a store to sell your products.

What are the best ways to resolve this issue? The right technology can make the difference between success and failure.

Modern communications tools help you engage with customers across all channels, touchpoints, and journeys.

As a starting point, consider:

Start with the channels your customers value most. Be sure to let your customer support staff know directly what channels they prefer, whether it's phone, email, live chat, video call, online help centers or in-app messaging. Integrate and optimize those channels, and offer one-to-one interaction through live chat or video conferencing.

Keep the context in mind. Adapt conversations based on a user's previous interactions. Use a tool with a unified view to keep track of customer conversations. Regardless of your interaction channel, you will be able to respond contextually at all times.

3. Competing against the competition


Even if others offer the same products and services as you, you can still differentiate yourself.

What is the best way to get started? Developing a plan for success requires thorough research into competitors and the market.

Find out which products are in demand by conducting research. Get rid of outdated items. Promote your brand and products on social media platforms and blogs. Promote your site so that you can attract more customers to your site. 

Do not forget about the importance of customer service in the customer experience. Assist customers with the right tools (e.g. live chat, shared inbox), as well as motivation.

4. Selling their products in a new way


In many ecommerce companies, online selling becomes difficult due to a lack of forward-thinking. There are some companies that lack the ability to understand customer behavior and buying patterns, so their business cannot thrive in today's ecommerce environment.

You might start by putting your products on popular sites like Amazon, Flipkart and eBay. You can pitch and brand your product (and figure out what works and what doesn't) more easily on these ecommerce sites since these distributors already have vast networks of buyers.

Additionally, your data needs to be segmented. By segmenting visitors, ecommerce companies can identify and communicate with each based on previous conversations, customer journeys, geographic locations, browsing behaviors, referral pages, and more.

In turn, ecommerce companies can anticipate customer needs, offering their customers a personalized service, such as free delivery or promo codes, which help increase conversions.

5. Shopping cart abandonment.


Even e-commerce giants are not immune to shopping cart abandonment - it is a huge issue for every company.

You may need to redesign your shopping cart if you're experiencing issue in checkout process. Check for bugs or unnecessarily long and difficult form filling processes. Additionally, tools like live chat can reduce the number of shopping cart abandonments.

In conjunction with features such as visitor segmentation, it's possible to engage with customers during crucial steps of their journey and prevent them from dropping out without buying. The use of visual tools can assist customers during the checkout process - for instance, your agents can discuss how to complete the registration process via cobrowsing

6. Keeping loyal customers

The most beautifully designed website in the world won't help your business if the customer doesn't trust it.

However, acquiring and maintaining customers requires a lot of work. Having a difficult time building customer loyalty and trust is one of the reasons ecommerce companies (like most online B2C businesses) face a challenge. They cannot see each other, making the interaction less personable than in person or in B2B where there are lengthy decision-making processes between salespeople and customers.

Time and effort are required to make up for this. This trust and loyalty can be built over time through multiple transactions.

First of all, you should ensure all processes for Customer Service are efficient. You can also increase trust with your visitors by: displaying your address, phone number, pictures of your employees, and customer testimonials. Make the website live chat friendly. Customers should come first. Maintaining a customer is much easier than gaining a new one. Develop loyalty programs to prevent losing loyalty prizes, customers must purchase from you.

7. The headache of returning and refunding products


According to a survey by UPS and comScore, 63 percent of American consumers check the return policy before making a purchase, and 48 percent prefer retailers who offer hassle-free returns.

Returns are no fun for the business, whether the product was damaged or the customer was dissatisfied. Free shipping has always been a problem for ecommerce sellers.

However, you can't avoid the need for good returns and refund policies - they're essential for good customer service. To make sure that your policies are clearly communicated, build them carefully. Think about the following:

  • Do not hide your return policy in the hopes that customers will not see it and return their items.
  • Everybody should be able to understand these policies, regardless of their cultural background or education level.
  • Describe what they can expect from you.
  • Provide different payment and shipping options.
  • You should educate your staff so they can effectively assist customers.
  • Your mistakes will cost you. Don't give up on the customer if the product is wrongly shipped.

8. The struggle for control over shipping and price


Even though customer experience is the most important factor for consumers, online merchants frequently compete on price as well.

Usually, mid-sized and large competitors offer products more affordable than small ecommerce companies, as small businesses are especially vulnerable to price competition.

Online sellers like Amazon and Flipkart Walmart, for example, typically have shipping facilities located all over the country. Shipments can be made from the nearest warehouse. The customer produces about 60 percent of the orders. As they are shipped from nearby warehouses, the cost of distribution is reduced, and the order arrives within a few days.

Smaller companies can't compete when free shipping is added to the mix.

Is there anything you can do about it?

Ecommerce companies can keep their inventory in fulfilment warehouses, become resourceful shippers, or find a way to make their shipping more cost-effective 

9. Compete with manufacturers and retailers


Wholesale products are often bought online by bulk stores from manufacturers or distributors, then sold at retail. Online stores operate on this model.

It is unfortunate that, partly because the barriers to entry for ecommerce are so low, manufacturers and retailers have started selling directly to consumers. It is possible that the company that sells your products is also a competitor. As an example, XYZ Garments sells both through your online marketplace as well as directly to consumers through its website. Even some manufacturers create distributors, making the situation worse.

Can you do anything about this? There is no way to stop manufacturers from selling directly to customers, but there are some ways to minimize the problem:

  • Prioritize manufacturers who don't sell directly to customers.
  • To increase sales, lower the price or include additional benefits in the product.
  • Establish in the contract that the manufacturer cannot sell the product directly to customers. The method may not work for every manufacturer, but it may be possible for smaller ones.

10. Data security


Problems with security can lead to nightmare scenarios. Websites may be infected with viruses by spammers and web hosts. Potentially, they might be able to access sensitive information about your clients, including credit card numbers.

Regardless of what you do, consumers expect you to fully protect them. If you wish to achieve this goal, here are some ideas:

  • You can manage your own servers.
  • Don't use common FTP for file transfers
  • Engage cyber security services or engineers
Almost all content management systems store their data in databases. Backups should be made regularly by developers to ensure that they can retrieve stolen data if necessary.

Final Thoughts on eCommerce Business Challenges


In order to overcome these issues, businesses need to operate as modern omnichannel retailers. They should focus on converting data into insight, knowledge, and ways for leading the market. By offering personalization at scale to shoppers, they can inspire loyalty and support their brand, business model, and international expansion.

if you are willing to start ecommerce business, create your online store with eShopCart for free and start selling product to grow your business. eShopCart is a powerful eCommerce software that allows you to create and manage your own virtual store with ease.


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