Pandemic brought the biggest slump in every aspect worldwide. In contrast, many retail sectors have taken the hit; the eCommerce companies also encounter the most intriguing challenges. Many of you might think that eCommerce companies have the most significant benefits, but this pandemic is a double-edged sword for these companies. As they say, with every growth opportunity comes more significant challenges; these giants face some big challenges to keep up the performance yet reap enormous profits. These challenges range from enhanced customer expectations to solving the problems like how to reduce returns in eCommerce to propelling competition.
Let’s explore in detail these barriers for eCommerce companies!
A considerable number of brands that were not available online have now set up their online presence. It has given a surge in competition to the businesses that were already online, resulting in cut-throat competition all over. These businesses were attentive to competitors’ moves and upgraded themselves to stand up to the competition. Instead of fair cost cuttings, there is a surge in the advertising budget to get the desired results.
Greater Rate of Returns
To deal with the pandemic, sellers have opened new doors to make customers’ shopping experience smooth. It gave rise to online selling with easy returns of the products if not liked by buyers. But with this option available, there is propulsion in the rate of returns which ultimately increased the cost burden on eCommerce giants. As a result, sellers are aggressively working on the dilemma of how to reduce return rates in eCommerce to save additional costs.
Data Security Threats
As people are consuming online platforms for their all needs, cyber security has also propelled. Many hackers have popped up, and data breaching and hacking incidents are on the surge these days. All these eCommerce companies need is a robust network system that gives better reliability and smooth functioning. It is always advised to invest in secure servers and safer checkout processes as consumers want to have their data safe and secure.
Customer retention has always been of more excellent value than winning new customers. With ever enhancing competition, there’s always a point where a customer can leave the brand anytime and switch to the competitors. So it becomes a daunting task to retain customers and gain their loyalty. Ecommerce companies are taking measures to ascertain they can make old customers stay. These measures include discounts, tailor-made offers, exclusive loyalty perks, buying a new arrival first, and others.
E Commerce is a growing industry. It is expected that the eCommerce retail revenue will hit $6.54 trillion by 2023. With this ever-increasing rate, there are a plethora of opportunities where these companies can reap larger profits. But as we said, with prevailing hurdles, there need to be some solutions to these challenges, be it a competition, customer retention, or a dilemma of how to reduce return in eCommerce. A feasible solution to all these barriers can turn an eCommerce company into a profit-making firm in the long run.