e-commerce website is online portals that facilitate online transactions of goods and services through means of the transfer of information and funds over the Internet. In the early days, e-Commerce was done partially through emails and phone calls. Now, with a single website, anything and everything that a transaction needs, can be executed online.
Everything is online with the e-commerce website
With the use of mobile devices and laptops increasing every day, there are a lot of advantages of e-commerce website like –Global market reach, A global choice for consumers, Short product/service distribution chains, Lesser costs and pricing, etc. There are some top e-commerce websites: Amazon, Taobao, eBay, Alibaba. Along with these utilities when using e-commerce website, online retailers have to face up with more and more challenges which require them to propose many solutions to handle.
1. Starting an e-commerce website with low sales
This is a relatively common situation when a new e-commerce website is up and running: For a few months selling only a small quantity of products or an empty shopping cart even after the marketing strategies have been run. Perhaps your campaigns are not really effective and optimized.
Focusing on e-commerce website improvement and marketing is the right thing to do. Take this time to figure out how to make your e-commerce website more clearly oriented about your products, website appearance, market share, etc. Investing in themes to streamline product catalogs, prices, and visuals is the key element to attract more customers.
e-commerce website with Magento Claue theme by ArrowHiTech
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Marketing is also a must-invest factor when your sales are low or stagnant. Think about optimizing your social media pages to increase sales through sites like Facebook. Instagram; promote collaboration with reputable advertisers; Sharing your free product gives your product more opportunity to reach customers.
2. Finding the right products to sell for the e commerce website
Shopping cart platforms like Shopify that have removed many entry barriers. Anyone can launch an online store with an e-commerce website within a few days and start selling all types of products.
Amazon is dominating the e-commerce world with their huge online product portfolio. Their market and responsive services have allowed sellers from all over the world to easily access paying customers.
All of those make it very difficult for retailers to find unique products unless you decide to produce it yourself.
3. Approaching to customer’s needs
Online shoppers now have changed their shopping ways. They use Amazon to search for products (not just Google), request recommendations on social media, use their smartphones to read product’s reviews while in the e-commerce website, and purchase by all payment methods.
A lot of things have changed including the way they absorb content and communicate online. They are easily distracted with technology and social media. So retailers need to find out where their audience is and how to effectively attract them without losing their marketing budget.
4. Converting potential buyers into paying customers on e-commerce website
The only problem is that sales often start low, very low, for completely new e-commerce websites. Unless you end up advertising your products on the Shark Tank before you launch your e-commerce website, you can really expect a lot of sales going through the website.
Promoting quality traffic and nurturing potential customers is key if you want to close sales. At a given time, you need to convert those leads to pay for your marketing campaigns. Retailers must constantly optimize their efforts in converting both email leads and website visitors into customers. Conversion optimization is an ongoing process.
5. Having long-term profits when running your e-commerce website
Increasing sales with e-commerce website is a way to grow your business. But ultimately, the most important thing is profit. Online retailers must always find ways to cut inventory costs, improve marketing efficiency, reduce costs, reduce shipping costs and control profitability of orders.
6. Competing with major e-commerce sites
You can visit Amazon to buy anything you want, but what happen when you go into business? While there is no one recipe for success – crushing thousands of Amazon’s online businesses all alone, can you compete?
Shopify provides a good guide. But the goal is to differentiate your company by creating a segment focused on expertise and guidance. You can only sell one product that Amazon currently offers at a cheaper price, but you can create an e-commerce website that includes blog posts, tutorials, videos and other guides to dominate the market.
People will stumble on your e-commerce website if they want to learn about a product. They are often willing to pay because you helped guide them.
7. Losing with fraud, transportation and refund
Besides the positive effect with sales, irresponsible and fraudulent customers become burdens that no retailer wants to encounter often. This happens when a carrier loses a parcel, a customer does not pick up or return an item or a fraudulent purchase is made to test and take advantage of your company.
Return binding on customer service and follow up with the customers. Send an email to find out why they don’t like this product and maybe even a discount on their next order.
Cheating is the biggest problem of all of them. Imagine you receive an order worth tens of thousands of dollars, after shipping products, you discover they have bad- learning from your company or even steal all that product from you. According to KissMetrics, there are many different ways to prevent e-commerce fraud, from choosing the right e-commerce platform to maintaining files about past fraudulent charges.
The short answer is always research before shipping your items, especially for large orders. Use an automated system to cross-reference purchase and shipping information. Call the customer if you suspect fraud or if the area code matches.
This is something retailers can hardly predict, even when hackers have exploited a few things, they still do not discover: personal information, customer data, customer sources, bank account, etc. Be very careful and don’t hesitate to invest in security and protect your e-commerce website
9. Providing excellent supports for customers
Many companies pride themselves on superior customer service. However, working with online customers is a different and unique thing, especially when your e-commerce website is bound to kick some dirt on your face them along the way.
Online retailers need to improve customer service when using ecommerce websites
Customer care is a challenge for online retailers. It always make them their top priority to make sure they do not complain, yell or post blogs about how your company has lack of services. So it is very important to provides multiple contact points such as email, phone, live chat, social media and forums.
Tracks your interactions so you know what each customer said about the last time you spoke.
- Answer the questions quickly.
- Offer promotions or free to talk to people.
- Make personal conversations. (Don Xiet sounds like a robot in an unknown company.)
Use CRM services for a more comprehensive and holistic view. (Looking for more information: firstname.lastname@example.org)
10. Inventory management
Another problem that comes with an e-commerce website is overall inventory management. What happens when the vacation comes and you run out of best selling products? How would you answer if a customer orders twice as much as you can offer?
The key to organized inventory management. Do you know exactly how many pairs of shoes you have in stock for each color and design? You should have a running report every day to understand where your inventory stands.
Another key factor is choosing an easy tagging system and managing every item you have in the store. You need a platform that allows you to quickly change a page to Out of stock and a product ID system to get a real-time view of your prices.
11. Working with overseas manufacturers and suppliers
You might think there’s nothing better than working with foreign suppliers and manufacturers. Their products that are more diverse and more affordable. But don’t forget the issues that always arise: Language barriers , quality control and business culture.
You encounter all these problems, some of them more than others. Consider hiring a translator or just choosing a manufacturer who can speaks your language.
In terms of quality control, check your foreign contacts and emphasize that you hold Skype calls or sessions every week or month to understand what is happening in terms of productivity. It’s also not a bad idea to hop on a plane and meet foreign manufacturers.
Business culture is difficult to manipulate, because some countries only operate differently from you. You may find that one country is not punctual or another is not aggressive. The only solution is to learn about the culture of the country where you intend to do business.
12. Choose the right technology and partner
Some online retailers may face growth challenges because their technology is restricting them or they have hired the wrong partners / agencies to help them manage their projects.
Retailers who want to achieve growth with e-commerce website must be built on good technology. They have to choose the right shopping cart solution, inventory management software, email software, CRM system, analytics and more.
Learn about CRM system: email@example.com
In addition, hiring the wrong partners or agents to help you implement projects or monitor marketing campaigns can also limit your development. Online retailers must choose carefully who works with.