The eCommerce industry is continuing its rapid and trajectory growth. This has replaced traditional retailers with online merchants. The growing popularity of the eCommerce industry brings new opportunities to the field. The prevailed pandemic situation also made the growth of the eCommerce industry and other online shopping at a fast pace.
According to statistics, an estimated 1.66 billion people worldwide purchases goods online and the global e-retail sales were estimated to have reached $2.3 trillion in the USA. but unlike traditional merchants, regardless of the product or niche, the eCommerce business faces many challenges. The level of competition for eCommerce customers has also never been higher. The major challenges of the eCommerce industry and the possible solutions are:
Challenges Faced By The eCommerce Industry And Possible Solutions
- Security issues
A website with a good marketing strategy and website design can be easily ruined by a simple cyber-attack or threats. So cybersecurity is an important challenge faced by the eCommerce industry. Security threats and attacks are increasing and this even led to compromise in the customer data. Several studies revealed that hacker groups had broken around 57- eCommerce websites in 55 countries within the past three years. This has lead to the leakage of information about 184,000+ stolen credit cards.
Thus, technical experts say that the eCommerce industry is the most vulnerable industry towards cybersecurity. Cybersecurity surveys found that around 60% id eCommerce stores shut down their business within six months due to security attacks and about 29% of the eCommerce websites traffic holds the malicious intent of cyberattacks.
Solution: eCommerce websites and stores should take extra security measures to overcome this vulnerability. For that, companies must comply with security standards with the information of credit cards. SSL certificate or Secure Sockets Layer certificate may protect websites from any sort of attack. This also secures the web address by creating an encrypted link to prevent attackers from sniffing the information.
- Finding the right product to sell
For eCommerce entrepreneurs, finding the right product or niche of interest is the biggest challenge. A product that is high in demand delivers profit. But coming up or finding the right product is somewhat a difficult process. Even though, there are ways to find a product to sell.
Solution: Certain strategies helps eCommerce website in solving this problem. One of the effective ways is to find the pain point of customers and to find the product that solves this pain. Products that appeal to the passion or hobbies of customers also attracts them more. This also provides additional benefits like more engagement of customers and loyalty with your brand. Recognizing the current trend also makes the website more profitable by going through the Kibo Code Quantum reviews. By following these strategies, you will overcome the biggest challenge. Also, you will be able to fulfill the needs of your customers.
- Competitor analysis
There will be competitors in every field and niche that you select. So analyzing your competitor is very important. You have to learn about them and want to do things in your own way. You have to adapt and implement more innovation to stand along with your competitors or to stand above them.
Solution: to overcome this issue, you have to define your eCommerce business and list your skills and capabilities. Taking your skillset as a guideline, solve the needs of customers in your possible potential ways. Also, highlight the specific areas that make your brand and website different from your competitors. You can use Google and Amazon to find companies similar to your business model and to categorize your main competitors. Identifying them, their position in the market, and analyzing their strategies help you to just break them down.
- Customer experience
Good customer experience is an important factor in creating a business strategy and this makes you different from your competitors. This also builds brand loyalty, generate repeat business, and also benefits from referrals. So it’s important to establish a good customer experience as it leads to the success of your brand and niche.
Solution: To improve customer experience, make it easy to find what the customers want to form your website, make your website user-friendly and visually appealing, provide product descriptions easy to read without unnecessary fillers, make checkout process and payment process simple, quick, and secure.
These are the most common challenges faced by eCommerce merchants in their start-up phase, growth phase, and even in the matured phase. Overcoming these challenges is a big task for entrepreneurs and they require an abundance of skills.