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Top 5 Major Challenges & Issues in E-Commerce

Updated on May 31, 2016

Challenges & Issues in eCmmerce

The business of e-commerce has expanded at a fast pace more than any other technological idea. Portals Iike Amazon and Alibaba have become eCommerce conglomerates yet have only just begun to gain some level of profit; the sole reason being that such ventures require major investment and is riddled with tech challenges that crop up at every turn. E commerce needs to rely on hi tech functioning staff to remove the daily hurdles in order to grow unequivocally. Only through accurate solutions can this intricate network of connections can be sorted.

Did You Know?

  • Since its inception, e commerce has lead more than 1 billion people to buy online. That amounts to almost 40% of internet users in the world.
  • Global estimate of eCommerce sales in 2018 is expected to approximately $2.35 trillion.

eCommerce – Challenges or Issues?

Rarely do people understand the unique difference between the two in this industry. The versatility of these portals may offer a fine experience to the customers on hand, but are usually achieved by going through a haywire of issues at the back end. There are various techniques being applied that have allowed e commerce to evolve in remarkable ways. Some of those techniques have been unable to break the mold and provide any advancement in this sector which poses as a big challenge.

Did You Know?

  • Countries like U.S. and China hold the biggest stake in eCommerce economy with latest estimate results of $349 billion $562.66 billion respectively.

Digital Communication – Attractive Yet Uninformative

E commerce thrives on the basis of digital media and campaigns as they float through the constant crowd of customers and peaks their interest. For this, major companies are using flair and attractiveness as the only criteria to provide information. Certainly that is a useful metric, but usually such communication fails due to lack of credible information that leaves a far worse impact. Customer confusion can lead to a deadly fall at this time when companies are ripe in competing on audiences.

Did You Know?

  • E-commerce sales from social media grew by 202% in 2014, and are expected to increase even further.

Product Discounts – A Constant & Desperate Need

Undoubtedly, the entire marketing and promotions of e commerce sites is based on two things: deals and vouchers. They are the main audience capture practice performed by almost every single e commerce portal on this planet. This leads to a big clash with respect to profit and vendor management as low priced products must generate a higher buy rate otherwise this procedure goes down the drain.

Did You Know?

  • Shopping research in the U.S. indicates that a large customer demographic of male (57%) & female (62%) is attracted to eCommerce through discounts.

Customer Loyalty – Continuous & Relentless

Continuous traffic is the heartbeat of eCommerce sites. That requires a continuous flow of audience and its conversion to a fully-fledged customer relation with that company. This is the ultimate challenge; to acquire the loyalty of each and every customer through consistent high quality services that makes them stick for the long term. Keeping this on a balanced level requires deep collaboration with customers which involves resolving their issues and wants.

Did You Know?

  • Bad customer service has been the core reason for about 89% shoppers to refrain from shopping online.

Logistics – Shipping & Delivery

The logistics are a keen criterion that requires many checks and balances and are a crucial part of an e commerce system. Rapid delivery involves a wide regional network that necessitates delivery but is a chief problem in this sector. International companies are opening their own logistics rather than relying on other partners to collaborate.

Did You Know?

  • A higher ratio of consumers have been slotted to consider online shopping as a resource only if shipping costs are reduced to zero.

Local eCommerce – Competition with Big Players

For local e commerce, the ability to go beyond a certain measure and attain success globally is quickly declining. Due to big players involved, there is not much space for other portals unless they bring something new and unique with respect to products. Top eCommerce companies have taken huge leaps to solidify online shopping in Pakistan but are still unable to make such a transition from local to international. In the same vein, big companies like Alibaba have still been unable to succeed on a local level in countries other than China. Amazon, however, is an exception in this regard as it has successfully taken over Flipkart and SnapDeal in India.

© 2016 Jerry L Cowan


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