When it comes to eCommerce business there are more immediate challenges that a business owner can face that include low conversion rate or finding the right customers. However, these are only the tip of the iceberg and if you plan to start this type of business then there are many other challenges and issues that you will need to be prepared with. These challenges can directly affect your revenue, mount up financial losses, and may in some cases damage your brand reputation. Below are the 7 most crucial problems you could face and how you can be prepared for them.
Online Identity Verification
You cannot know if the information entered by the user when they register with your eCommerce website is genuine or not. Therefore, you will not be able to verify if they really want to make a purchase. For example, if you have a cash-on-delivery payment option and the user enters a false address and contact information, this could mean that you will go through a loss in revenue at the end of the day. Performing online identity verification on each potential customer can help prevent this problem. There is automated software that you can use that can prevent fraudulent attempts by adding multi-layer authentication.
This is one of the biggest challenges you can face. Firstly to deal with any such circumstances, lawyers at revisionlegal.com/services/internet-lawyer suggest taking all legal aspects that can be compromised into consideration. This includes getting the right patents, copyrights, trademarks, and everything else that can be jeopardized. Further to that, you will need to secure the customer’s data so it is not compromised at any level. In case an error takes place, then the right internet lawyers can help you to fight the case.
Abandonment Of Shopping Cart
No matter what the size of the eCommerce business is, this is one common problem that most of them face. Shopping cart abandonment rates can go as high as 80 percent at some times. To take the right steps to avoid this situation from taking place you can start by redesigning your shopping cart. This means that there should be no bugs or needlessly long purchase processes. When the forms that need to be filled out are tediously long and the checkout process is unclear, maximum users will abandon the shopping cart out of frustration. You can also provide a live chat option so that your potential customers can solve any query they have during the purchase process. Optimizing it for mobile devices is another step that can help increase purchases. Once you have these basics done you can work on using retargeting marketing techniques wherein people who have visited your website will be reminded of the purchase they wanted to make.
Building Customer Loyalty
Even when the eCommerce website is designed at its best and offers a variety of products along with smooth functionalities, customer loyalty can be tricky. However, without customer loyalty, your business will suffer as you will constantly spend a huge amount of money on gaining new customers. Retaining existing customers will cost you less money on the other hand. You need to focus on building brand integrity between you as the seller and the customers. One way to achieve customer loyalty is to start with offering quality customer service. Your customer’s satisfaction should be your prime focus right from when they purchase something online to delivery. As you nurture your customer throughout the process you will gain a competitive advantage over other retailers. Once again, adding a live chat will help in this situation as well. It reassures the customer that in case something goes wrong, they can reach out to you. Adding transparent lines of contacting you will add a humane dimension to your business.
Your shoppers will definitely take a look at your return policy before purchasing something. The chances of them making a purchase will increase when they see a less complicated returns policy and convenience. As an online retailer, you need to give your customers the peace of mind that they can return the product if they are unsatisfied with it. This should also incorporate strategies so that the brand image of your business doesn’t get tarnished in the process. To deal with this problem you will need to be transparent with your return and refund policies. Give complete details of the policy. Providing them with options like wherein they can get a refund or store credit is another good idea.
Sometimes the competition can get so tough that the manufacturer that you are buying your products in bulk from will start selling it directly to customers. This would mean that not only do you have to compete with other similar stores but even the manufacturer can become your direct competitor. While this can happen at any time and is unavoidable, start with looking to partner only with those manufacturers that are likely to sell only to retailers. Keeping your product pricing realistic will always be beneficial. Finally, making a contract can prevent this from taking place in most cases.
A typical user now can’t get access to your website through mobile phones, laptops, and tablets. Furthermore, they can access information about your brand through social media, forums, live chats, and many other places. The modern shopper is in touch with multiple touchpoints. By adopting an omnichannel customer strategy you will be able to overcome this challenge. Start by recognizing channels that are most important for your customers and then optimize those first. Optimization means increasing ways of interaction be it through live chats, personalized messaging, or help centers.
The above 7 problems are some of the most crucial challenges you will face in the eCommerce business world. If you are planning to enter it, then you can prepare for all these in advance. For those who are in the business for a while, it is never too late to start fixing it.