Did you know that ecommerce retail (e-tail) revenues are set to reach $5.4 trillion in 2022?
And by 2024, the global ecommerce market will grow to $6.4 trillion.
(source)
Wow! That's a big market.
No wonder everyone wants to ride the booming ecommerce wave. Don't you agree?
Even offline brands with physical stores are embracing the world of ecommerce nowadays.
As a result, online businesses face fierce competition now more than ever. As consumers' expectations rise, your ability to compete must keep up.
And as an ecommerce business owner, you have to be constantly in the know.
So, you have to create digital experiences that meet your online shoppers' increasing expectations.
Here's a spoiler alert: This brings many ecommerce challenges. Some, you might not even be aware of!
That's why in this blog, let's look at some ecommerce challenges you might be facing... As you seek to increase your online presence, as well as your sales.
But lucky for you, I will also explain how you can overcome these ecommerce challenges!
Okay, let's get started! Here are...
10 Ecommerce Challenges And Ways To Beat Them
Challenge #1: Increasing Online Store Competition
I'm sure I'm not the only one who has noticed the tight competition.
In the ecommerce industry, everyone's competing for sales and visibility.
New businesses are indeed springing up every day.
But you can still gain a competitive advantage. How, you ask?
You need to figure out how to stand out from the rest. So, here's...
What to Do:
- Find your value proposition. You can use this to stand out from the competition because you know what you can offer your customers.
- Conduct a competitor analysis. This is to determine what your competitors are currently doing. Then, this will help you plan your campaigns better.
- Provide your customers with a reason to choose you over your competitors.
- Give your customers a trouble-free shopping experience. That will provide them with a reason to return to your online store. And better yet, recommend you to their friends!
Remember: Dissatisfied customers are likely to forget you. But once you do all the things above, you'll be unforgettable!
Now, let's get to the next...
Challenge #2: Customer Service and Order Fulfillment
If you think the customer journey ends at checkout, that's not the case. Because you still need to guarantee them a great delivery experience. That will help leave a lasting impression.
Here's more... did you know?
In a survey, 87% of consumers said that shipping and delivery affect their decision to order again. Customer retention suffers because of this.
What to do:
- Outsource fulfilment to a third-party company. It would be less hassle on your part, and they can keep your products in warehouses. That way, your products will pass through fewer zones. Thus, it will reduce the delivery time.
- Get in touch with customers. This will allow customers to set clear expectations.
- Manage inventory. This prevents stock-outs. Always keep enough stock on hand to meet the demands of your customers.
- Offer free shipping. As seen below, 96% of shoppers say that free shipping can influence their buying decisions.
(source)
Moving on to the next...
Challenge #3: Generating Valuable Site Traffic
You have to take a look at your ecommerce website visits.
Because this impacts your ability to get customers and generate sales.
That's why you need to reach out to the right market.
What to do:
To attract new customers, you must first understand your audience.
- Research your market. Find out who might have an interest in buying your products. And which types of people are currently purchasing them.
- Get to know your audience. Research their demographics. Find out where they spend their time online.
- Focus on traffic sources. Make sure to align with your audience research. Pick those that are likely to drive traffic to your store site. Organic traffic can come from social media, search engine results, email, or word of mouth.
For instance, check if your target audience is on Facebook most of the time. If they do, then you can sell and advertise your products there.
The fourth one is vital...
Challenge #4: Abandoned Cart Problem
Did you know that around 75% of ecommerce stores lose sales due to shopping cart abandonment?
That's a lot of potential sales you're losing!
And some of the reasons are the shipping costs, the long checkout process, few payment options, etc.
What to Do:
- Identify what works and what doesn't. Find out why your prospects aren't completing their transaction.
- Simplify your checkout process. A complicated checkout can cause cart abandonment. Optimize to give your customers a smooth buying process. Debutify has cart maximizers and Add-Ons that can assist you with this.
- Use chatbot integrations. This can assist your customers in their buying process. If they have concerns, they can reach you right away.
- Use email marketing. Send reminders via email. This way, you remind them that they have yet to complete their purchase. It's an effective way to save that sale!
- Plan your retargeting campaign. It means displaying ads to users who visit your ecommerce site. This will remind them of your products and encourage them to buy.
Challenge #5: Adapt Omnichannel Strategy
Omnichannel searches seem to be the new norm for customers' buying decisions.
As customers prefer to look in all places - live chat, forums, Facebook, Instagram, etc.
And, regardless of the customer's choice, the experience should be consistent and unified.
Here's how:
Make omnichannel customer engagement a part of your ecommerce strategy to boost sales. So ensure you have the same brand message across all channels.
What to Do:
- Understand how your customers interact with your brand. Pay attention to customers' online behavior. And understand how your customers interact with your brand.
- Interact and converse with customers. Keep track of every interaction. Taking note of the conversation history will help you to direct conversations.
- Plan your omnichannel marketing campaign. Enhance the channels your customers use the most.
- Perform an A/B test. Measure the results to know which channels work.
Here's another challenge you can stumble on...
Challenge #6: Achieving Customer Loyalty
When your customers are happy, they keep coming back for more. They can even be your brand advocates. But, how can you do this when they have many options to choose from?
That's why customer loyalty can be challenging yet crucial. Why?
Because customer acquisition is 5 times more expensive than retaining an existing one.
So, you need to do this right.
Always remember...
Customer loyalty depends on your brand's integrity and mutual trust with your customers.
But there's a catch!
It takes more time to develop trust and loyalty in ecommerce compared to physical stores. That's because of the absence of face-to-face interaction.
What to Do:
- Ensure customers are happy throughout the entire process of their online shopping journey. This encompasses their ordering process to delivery. Also, make sure to deliver excellent after-sales service.
- Provide great customer service to build trust in your brand. 95% of consumers say customer service is crucial to brand loyalty.
- Transparency is essential. Show your contact info, and testimonials from customers. You can even show photos and relevant information about your business. By doing this, you uncover the identity of your ecommerce business. And humanize your business.
- Take advantage of loyalty programs. Provide discounts, coupons, and points to repeat customers. Providing them with these tools keeps them loyal to you. And they will be back for more!
Remember...
Satisfied customers can recommend your ecommerce brand to their friends.
Moving on to the next...
Challenge #7: Develop a Secure Marketplace for Your Customers
Ecommerce stores are a gold mine for customer data. That's why cybercriminals often target them.
Here's how they do it:
They add viruses and spam to your websites. This will give them access to confidential information. Such as customer phone numbers, card details, etc.
Make sure you keep your store safe from malicious attacks. It can have significant financial consequences. And may lead to the loss of customer trust.
What to Do:
- Secure your store's configuration and coding.
- Take care of your own server. This will help you manage data in one location.
- Make sure all applications, extensions, and integrations are safe.
- Install an efficient identification process.
- Secure your payment gateways.
- Conduct privacy tests from time to time.
Up next...
Challenge #8: Design an Effective Sales Strategy
One of the biggest challenges for ecommerce is keeping up with customers' expectations.
And some online businesses lack insight into customer behavior and their buying habits. This leads to a lack of an effective sales strategy.
What to Do:
- Map out the customer journey. You need to know what your customers go through during their shopping experience.
- Make use of prominent marketplaces. Use social media shopping platforms like Instagram Shopping or Facebook Marketplace.
- Take advantage of data segmentation. You can use this to organize your customer data based on their past purchases, location, and more. This will help you make sales because you can create a strategy based on their previous actions.
The next one is a common challenge...
Challenge #9: Returns And Refunds
Returning items is one of the common ecommerce challenges that customers, even online business owners, face.
UPS survey says, 73% of shoppers' return experiences influenced their repeat purchase decision.
You see, it affects customer retention.
Because when a customer returns a product, your business may suffer a substantial loss. That is, in shipping expenses and online store reputation.
What to Do:
- Having a reasonable return policy is important. A too-lax policy may cost you money in the long run.
- Make sure customers are aware of your return policy. You should clearly display your return policy on your ecommerce website.
- Your return policy should be understandable and straightforward. Don't use confusing terminologies and make it short yet informative.
- Offer a variety of payment and shipping options.
- Don't hesitate to say sorry when you send out the wrong product. And make an extra effort to ensure the customer is happy. This will improve customer retention.
Down to the last...
Challenge #10: Ecommerce Pricing
Consumers focus on customer experience over price.
And yet online businesses still compete on price.
Due to price competition, small businesses are often hit the hardest...
As larger competitors can often offer products at a lower price.
What to Do:
- Consider adding more products to your online business.
- Find ways to thrive in a competitive market. See if you can distribute inventory to fulfillment centers.
- Be resourceful. Find some unique products consumers cannot find anywhere else.
That's it for today...
Take On These 10 Ecommerce Challenges Today!
To survive all these ecommerce challenges, you need to create a well-planned strategy.
So make sure you prepare for these possible challenges in your ecommerce business. Don't forget to build a customer-centric culture.
And customer satisfaction should be top of mind.
But, do you know a hidden challenge that might push your potential customers away?
A nonresponsive, outdated Shopify store!
So, you need to use the right tools to manage and overcome these challenges.
And one tool that can help your online store is Debutify.
Debutify goes beyond optimizing your online store's "look and feel."
It also maximizes your revenue. Debutify's 50+ Add-Ons help boost conversions, increase AOV, and boost profits
Face Ecommerce Challenges Head-On with Debutify!
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