3 Challenges E-commerce Businesses Face and How to Overcome Them

In a digital age where e-commerce is thriving, consumers are swamped on all sides with numerous choices plus the growing need for unique personalisation can make it even more challenging! This makes it a competitive sector for entrepreneurs engaged in online selling. Have you ever wondered why Australia is the 10th largest e-commerce market in the world? Despite this enviable position, the sector continues to face challenges. So what are these challenges, and how can they be resolved? Let’s explore this further.

Inability to maintain customer loyalty and generate leads
Customer loyalty can be fleeting and unpredictable. Even with the most assorted e-commerce sites, competition can easily sway your market. Most online businesses tend to struggle due to the loss of customer loyalty. Did you know that it takes a lot more to acquire a new customer than maintain one? This explains why commitment from the customer is a delicate issue. Online shopping takes out the face-to-face interaction that would have happened in a traditional selling style. For this reason, building customer loyalty on an e-commerce platform is more complicated and requires extra effort. It takes brand integrity and mutual trust. To resolve this challenge, it would help to hire a digital marketing consultant. Besides helping you sell your products, a digital marketing consultant is experienced in generating leads that convert into loyal customers. Additionally, these experts help you plan and effectively manage your digital presence. You will also find their advisory role beneficial to your business.

Online identity verification issues
E-commerce owners and operators continue to record increased bots and fraudulent accounts on their sites. But, how is this possible? Usually, when a visitor signs up onto an e-commerce website, the procedure is to register with an email address and other identification details. These measures are taken to ensure the person is legitimate. Unfortunately, when bots (software programs that perform repetitive tasks) and fraudsters create accounts on these platforms, it creates several problems in the purchasing process. Fortunately, there are steps you can take to verify a customer’s details. First of all, always send a verification link when a new account is set up on your e-commerce platform. Supposing you have a COD purchase, it is recommended to follow up with a call to confirm delivery details.Again, you’ll find it worthwhile to match the zip codes indicated on the account with the specific city. Moreover, pay attention to suspicious activities in the form of substantial orders. Lastly, employ software solutions to detect these activities automatically. These programs use multi-layered authentication to verify buyers.

High traffic, low conversion
A critical metric to an e-commerce website is driving, sustaining, and increasing traffic periodically. The more people you have on your digital site, the higher the chances of converting them into customers. It is quite worrying to see most online businesses double up their efforts to increase traffic but fail to focus on a vital element: conversion.

According to Boom E-commerce Australia, the average conversion rate for online stores is 6%. Indeed, there is more room for improvement. Indicated below are some highlights of how to overcome this challenge:

  • Offer incentives to all purchase (special offers for first-timers)
  • Personalise the experience
  • Follow up on other existing channels

You can get ahead of the game only if you carefully study the terrain to identify your specific challenges. It would help to design bespoke solutions to problems you come up with. Even better, start with the ideas discussed here. Then, follow up with other tried and tested measures.


The Daily Pretty

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