e-commerce has become a hot topic and all industries nowadays want to develop their online business as soon as possible. Due to limited resources and technical knowhow, starting an ecommerce business is hard work and demand many components that need to come together at the right time.
4 eCommerce Challenges:
- Existing logistics / manpower unsuitable for fulfilling online orders.
Logistics usually includes warehousing, inventory managing, pick packing and distribution services. It is a critical factor to succeed in eCommerce. The major difference between eCommerce logistics and traditional logistics is that the latter deals with movement of large amounts of material to few destinations, eCommerce logistics on the other hand, handling 24x7 business, typically are small orders sent to many destinations. Although there is no physical store saving the rental cost, operating expenses on warehouse and fulfilment are important.
- Limited technological infrastructure to support operations.
eCommerce is a set of technologies, applications and business processes that link purchasers and sellers without barrier. Small and medium-sized enterprises continue to struggle with the technological infrastructure supporting the operation such as eCommerce applications and functionalities, dedicated hosting environments, security, logistics, customer data analysis and remarketing. Many online merchants are unable to scale their resources fast enough in response to dynamically changing demand. This leads to unexpected high capital and operation expenses.
- Competition is fierce and limited type of products to sell online
eCommerce has been booming in recent years, and the outbreak of the novel coronavirus disease in the past few months is certainly one of the reasons. Industries engage in the business of investing and expanding their eCommerce business to make the market fiercely competitive. They always have trouble attracting visitors to their eCommerce store. Finding ways to encourage customers to purchase from their store can be challenging and don’t get any easier if you’re competing against well-established retailers.
- lack the necessary insight into customer behavior and buying patterns.
The main difference between digital and traditional marketing is the medium through which an audience encounters a marketing message. Traditional marketing campaigns are difficult to be measured. Digital marketing is customized with exceptionally in-depth tracking. To get most out of digital marketing efforts, there is a lot to learn. It requires own specialist from search engine marketing to social media with data driven analysis to get the insights and make further necessary improvement.