Overall the web has a very casual approach but you cannot afford to make your online store look casual or provide services in a disorganized way. In the era, where your day to day life depends on this internet of things (IoT), the Ecommerce industry is one of the brightest stars. As per the statistics, the eCommerce sales are projected to reach more than $600 billion business by the end of 2019. Looking into the figures, we can say that eCommerce is definitely a powerful industry.
As eCommerce is a profitable industry, it doesn’t mean that every ecommerce seller around the clock is consistently making money. There are various challenges faced by not only the small but big companies while selling online. Starting an eCommerce business is an easy task if you have the right product, marketing strategies and know where to sell, but developing and moving to the top is the hardest part. You have to take care of each and everything from website maintenance, inventory management, to customer service.
Major Challenges faced by most of the eCommerce sellers
Absence of identity verification online
Whenever a visitor signs up in an eCommerce website, the portal is unaware of the customer except for the details he/she has provided. The customers are reliable or not is questionable. The problem arises when the customer has opted for cash-on-delivery during purchase because here revenue losses might occur if the contact details provided by the customer is fake. This happens even with the Amazon sellers.
To keep yourself on a safer side you can solve this challenge by implementing below strategies:
- First, you should be very much alert if you are into the eCommerce business.
- If you find any customer who has bought priced products or ordered in the huge amount on COD, then verify their details by sending them text messages to know if the phone number provided by them is fake or not.
- You can also check for the zip code that is matching with state/city.
- You can set an automated calling process for customers who have done COD purchase and validate their delivery address.
Staying ahead in the Game
There is always someone who will try to beat you, it might be the old competitor or some new establishments which might have just popped up from somewhere. In this eCommerce world, you might see too many competitors who are offering the same services and products as what you are offering. You should have the best strategy in place so that you can differentiate yourself in front of your customer and survive in the game.
While starting any business whether online or offline you should be aware of what your competitors are offering and what strategies they are applying to attract customers. So, let us see how we can make this workout
- Conduct thorough research – research can be manual as well as automated.
- KartzHub offers automated reprice tool, where it detects the pricing of your competitor and thus after analyzing adjusts the price of your product.
- Use social media to promote your product. Research where you can find your targeted audience.
- An eCommerce seller/ amazon seller has to increase their web presence drastically.
- Give promotional offers and discount coupons to attract customers.
- Provide your customer with extraordinary customer service to make them come back to you.
Maintaining Customer loyalty
No matter how fancy your website may look or how systematic and easy your checkout process may be. If you are not able to gain customer trust and build loyalty then you will have to struggle as an eCommerce seller/ amazon seller.
It takes lots of efforts and marketing to make a new customer and maintaining them for a long time. eCommerce business faces the struggle of gaining that trust from their customers because in an online business a buyer and a seller don’t know each other, unlike a brick and mortar store. Only after a few successful transactions, the customer starts trusting the online seller.
You want to earn customer loyalty, then the only solution is to provide exclusive customer service.
Now how to provide this??
Make sure you maintain transparency with your customer during the shopping till shipping process. Everything should be streamlined and on time, while even the product packaging should be up to the mark. There are many ecommerce sellers online who might be selling a similar product like yours. To make your services and products unique identify your competitive advantage and nurture your customers accordingly.
Few simple steps you can follow to increase the trust among the audience
- Display your complete information on your website, that may include a phone number, address, customer testimonials and credibility badges.
- Your website should have a live chat option to clear your customer doubts
- Before even looking into the profit first make customer support your priority. As it takes more effort to make new customer than maintaining the existing one.
Loss on Product return and Refund
When the product is returned due to any of the reasons like the product was damaged or the customer was dissatisfied, the eCommerce sellers/amazon sellers suffer loss that includes loss of reputation and money wastage on shipment.
Return and refund are a part of great customer service, therefore we cannot ignore it. Any customer before purchasing a product would look for the return policy and then buy the product. So, the best thing you can do is build a strong return policy that favors you as well. You should include the following:
- Maintain transparency on your return policy
- Use plain English language while writing the policy.
- Don’t use harsh words like ‘you are required” or “you must” that may stop customer to purchase your product.
- Make them aware what your customers can expect from you.
- Provide them with various options for shipping and payment.
Data Security Issues
Security issues are the major problem faced by many companies/eCommerce sellers/amazon sellers. Fraudster post lot of spam that sometimes attacks your web host server and thus may infect your website with viruses. These viruses may help a hacker or a fraudster to get all your contact and credit card details.
Manage your own server if possible and do not let your business use common FTP to transfer files. FTP is prone to theft. Open Wi-fi networks sometimes become the cause of you losing your confidential data and password to the hackers or thief. So constantly update your passwords and shopping carts to minimize the risk of theft.