Note: This is a guest post by Angelo Castelda. The author’s views are entirely his own and may not reflect the views of Deepanshu Gahlaut’s Blog.
The e-commerce sector is facing a bunch of challenges nowadays. As it is an industry that is heavily affected by consumer’s choices, e-commerce business owners are always kept on their toes by their very own market.
Consumer behavior also dictates the growth of competition, which seems to be increasingly stiff almost every year.
E-commerce marketers and business owners find themselves in a conundrum of having to balance doing good in business and staying ahead of the competition.
It’s become a contest of constantly adapting to change as quickly and as effectively as possible, which is a tough game to play. There are too many demands to meet and other problems to address.
To aid you in going up against these challenges, this article will talk about the solutions for each of them. Here are the challenges that the e-commerce sector faces and how to overcome them.
1. Confusion With Data
In their effort to engage both existing and new customers better, some brands rush to automate for data collection. This results in having more data than they can handle and an accumulation of technology that creates more work, choices, and resources.
Solution: Centralize your customer data and consider tech consolidation
One of the biggest assets of an e-commerce business is their collected data from prospective and active customers, but it’s no use if you don’t have them in one central location. Much like with your inventory where you go far as even checking out a warehouse for sale, you have to manage your data properly.
Unify your data in one centralized location and evaluate your current stack of technology and look for opportunities to consolidate.
2. Low Conversion Rate of High Traffic
An important aspect of e-commerce is driving and increasing traffic to a website. Without traffic, there are no customers that will purchase your products. Many companies focus too much on traffic that they tend to overlook their conversion rate.
With how the landscape of e-commerce is currently shaped, it’s more important to double down on creating customer-centric conversion strategies.
Solution: Personalize your customer’s visit on your website, follow-up on other channels, and offer incentives to purchase.
Show that you know your customers to convert them as they are navigating your website. Another example would be offering recommendations based on their browsing. Also, make sure that you are executing on an omnichannel level.
Utilize other websites that your current and prospective customers are browsing to convert them.
You can also consider dropping promos, discounts, and promoting limited stocked items from time-to-time, which could often lead to customers buying more than they intended to.
3. Majority of Sales Are One-time Buyers
It can happen that a big portion of your sales on a regular-basis come from one-time buyers. If so, then you are leaving a lot of money on the table.
Solution: Make retention a core strategy
If the conversion is a challenge, then so is retention. Businesses that increase their retention rate even just by a mere 5% could see an increase in profit by about 25% to 95%.
You can implement automated win-back conversion campaigns to entice customers to follow through with another purchase. You can also build a loyalty program to keep customers and have them return over and over again.
These 3 challenges cause a lot of headaches, but they are not unsolvable. There is always a way. You just need to be consistent in keeping your e-commerce business on the right track by delivering quality services to your customers.
Angelo Castelda works as a contributor for a news magazine in Asia. On his free days, he likes to read books about the logistics industry and warehouse management. He also gets frequently invited to schools and universities to hold talks about the supply chain system and warehouse operations.