Let’s welcome the future that’s all about E-commerce and the Internet!
The growth that’s so huge and superficial, an industry that’s super large and powerful- Yes, we are talking about the E-commerce business. Before digitalization, people used to visit brick-and-mortar shops to buy a piece of cloth.
All hail the internet, and customers now have the strongest purchase power. The decision of buying a simple product happens within a few clicks. In simpler words, they have the power to make or break any business.
In the eCommerce industry, online shopping and e-stores have become convenient to customers now. To no more surprises, this recent pandemic and mobility restrictions turned out to be a game-changer.
It is estimated that by 2040 about 95% of purchases will be made online, so now is the right time for physical stores to move online. Adapting to this change, businesses are in transition to cater to the next generation of online shoppers.
Customers now have full belief in online stores, be it about the product or service. So now, owning an e-commerce business is undoubtedly a successful opportunity, yet it comes with a fair share of challenges!
E-commerce – The mega digital shift of 2020
The year 2020 has changed everything, from both buyer’s and seller’s end. The unforeseen growth that is happening in the digital space is just enormous.
- The online retail share of the US grew from 9.9% in 2018 to 14.0% in 2020
- The online retail sales of the US grew from $519.6 billion in 2018 to $719.7 billion in 2020
- The revenue of the E-commerce market might reach $4,003,673 Million in 2022
- By 2025, the revenue of the industry is expected to show an annual growth rate of 11.52%
- The number of users is expected to grow by 4,877.0 Million
Needless to say, these numbers are huge but the global market has now become tougher to deal with. There are several challenges in an e-commerce business that keeps on varying with each passing year.
Biggest e-commerce challenges in 2022:
Focusing More On Data Protection And Cyber Security
The Internet is an open space, and privacy and security are almost all customers’ major concerns. This is because a lot of information is exchanged over the net every second, and the major part relates to monetary transactions. Some of the common security issues an e-commerce site must be ready to deal with in 2022 is:
- Virus attack
- DoS attack or DDoS attack
- Credit card fraud
Authentication is the key to growing your online store. It helps in ascertaining the genuineness of both parties. The customer is assured that he will receive what he has paid for, and the seller is guaranteed that the customer is genuine.
Hence, make sure that the buyer is proving their identity by providing the right personal and contact information. For this, you can send a verification link via OTP by mail or text while they sign up. You can even use software/plugins like Captcha to spot fake users, email IDs, phone numbers, and ZIP codes.
Attracting the right customer
After the pandemic, how customers shop online has changed a lot. For example, the customer now searches for a product on e-commerce sites instead of on search engines like Google. Furthermore, most of the customers are visiting the products from social media Ads rather than the ones posted on the brand page.
Also, the way customers consume content is changing rapidly. Just in a few seconds, the sale of the product is decided, as the number of options available is high. Hence, e-commerce companies must figure out where their target audience is and how to attract them all efficiently. (Without hampering the marketing budget)
Just the way consumers’ purchase patterns are evolving, the same is happening with digital marketing channels. Any business cannot just simply rely on one type of channel to drive traffic to the store.
Instead, businesses must learn how to effectively leverage PPC, SEO, email marketing, social media, display ads, and affiliates to drive quality traffic to the store, for example:
- Engaging with the audience through different social media channels to build brand awareness
- Use AI to generate new leads
- Constantly planning marketing and branding strategies all according to the market demand
- Establishing strong relationships with existing customers by constant interaction
- Running effective ad campaigns to target potential customers
Building market-ready product catalog
Most businesses often fail to give attention to the Product Catalog. Remember, even though you don’t own a brick-and-mortar store, your visitors are viewing your products through online channels.
Just like an offline store, you need to keep a constant check on online product catalogs. Your online store catalog represents a lot about your business from product quality to customer reliability. Hence, it should be a source of rich, eye-catchy, and complete product information for potential buyers.
High-quality product images on the site attract audiences instantly, which ultimately increases the chances of sales. With the high quality, we mean, aesthetically pleasing pictures that align with the online product cataloging.
Along with other hurdles comes the e-commerce photography challenge which is both times taking and expensive. By the virtue of AI tools, like Spyne.ai these challenges convert into opportunities.
Spyne.ai is an Ai-driven product catalog builder that is 100% automated. It edits product catalog 3x faster, saving more than 50% of real image editing cost.
So, the earlier you adapt to the latest technologies, the chances of outperforming the competition gets higher!
Converting Shoppers Into Paying Customers
After driving quality traffic to the store, next comes lead nurturing and closing the sale. Poor online presence, not knowing ideal customers, poor SEO optimization, and unconvincing product description often hampers the conversion rate.
For this, e-commerce stores must focus on strengthening and leveraging effective digital strategies which include, paying attention to website visitors, email leads, and creating personalized strategies for each.
Starting all from scratch is difficult, but focusing on the existing ones and retaining them is much easier. Businesses must implement tactics to get the most out of their existing customers.
They can do this by giving early sale access, unique coupon codes, and offering discounts. All of these tactics are proven to increase the customer lifetime value.
Dealing With Refunds And Returns Smoothly (Issues In Logistics)
Many e-commerce companies face growth challenges because of logistics issues. Timely delivery is what customers expect the most, and if you’re missing out on this, then your competitor can be benefitted. Thus, make sure to choose the right shopping cart solution, delivery agency, email software, and CRM system.
Now Is The Time To Turn These Biggest Ecommerce Challenges Into Opportunities, Take The Right Step Ahead
With setting up a business online, comes the responsibility to make the website and catalog unique.
Additionally, supply chain management, shipping, warehousing, and extensive marketing can cost you a significant amount.
But the trick lies here in DELEGATING activities as much as you can to properly focus on core business.