E-commerce has witnessed meteoric growth over the past decade. eMarketer projected global e-commerce sales to increase by 16 percent in 2020. Amidst this growing trend, running an e-commerce business comes with its own set of challenges. On top of these challenges, the push by the COVID-19 pandemic to accelerate e-commerce sales has been overwhelming for many businesses. Customers are getting used to shopping online whether it’s ordering groceries and other necessities to leisure shopping like subscribing to Spectrum internet customer service. Hence, e-commerce stores need to step up their game!
What are the challenges that the e-commerce industry is faced with? Let’s throw some light on them:
1: The Rise of Mobile
It’s pretty clear that mobile is the most common platform for customers to shop online. Today, about 25 percent of all e-tailer profit comes from mobile sales. Mobile e-commerce is on the rise now that many traditional barriers have been eliminated.
Despite the extensive usage of mobile, retailers continue to struggle in optimizing their sites for the mobile commerce market. Most customers aren’t satisfied with the mobile sites of their retailers. These companies must consider offering a frictionless shopping experience to retain this market segment.
2: Shopping Cart Abandonment
Regardless of the size of your business, you would agree shopping cart abonnement has been consistent. Statistics show that the shopping cart abandon ratio among online shoppers is 68%. Some stores have experienced a rate as high as 80%. Fear not, there are ways to reduce cart abandonment. For instance, you can consider redesigning the shopping cart or send them email reminders to complete their purchase.
3: Growth of Machine Learning
For e-businesses, Machine Learning is the most sought after technology since it’s the key to personalization and improve customer experience. Microsoft, Amazon, Google, and Apple are competing to make this technology accessible. However, not all organizations are able to utilize the offerings of ML. Machine learning requires lots of data to produce tangible insights. Acquiring, using, and hosting such a massive amount of data is not just expensive, it’s also cumbersome and time-consuming. This is another reason why businesses fail to innovate.
Small businesses can consider working on small amounts of data and overcome common issues with ML.
4: Social Shopping is the New Norm
Social media is no longer limited to advertising and promoting your products. Recently, customers are using it for social shopping. They make purchases from within their social media app/site. This new trend has shortened the buying process and improved the customer experience at the same time. Retailers who would be tapping into social hopping must step up their advertising game. Pushing the right product info is more important than ever and this means using a reliable PIM solution.
5: Written Production Might Become Obsolete
Online shoppers want as much information about a product as possible. However, they no longer want to read the information. A study says that 60 percent of the buyers prefer watching a product video to learn about its features and uses rather than reading its description.
This means retailers must add comprehensive videos to their product pages. This doesn’t mean you must eliminate text-based descriptions. Both readable and watchable information must co-exist. The key is to provide the visitor with every bit of information they need to complete the purchase.
6: Data Analysis
Data is growing at an exponential rate. No doubt the surge in data availability has generated opportunities to gain insight about your customers, but it’s not always easy. Organizations struggle to cut through the noise and determine which information to gather, which provides the greatest value, and how to make decisions based on the data collected. Lack of metrics and abundance of data opportunities is a growing concern for e-commerce business leaders. In 2021 and beyond, e-tailers cannot afford to miss out on the key customer metrics. They must start using automated customer data analysis tools to provide a personalized shopping experience to their visitors.