It is no surprise that e-commerce is a lucrative industry in today’s information age, producing hundreds of billions of dollars of revenue in the United States. Globally, e-commerce revenues have staggeringly climbed to the trillions. With more and more businesses wanting a slice of that sizable pie, e-commerce is swiftly growing into the industry of the modern era. E-commerce businesses are not problem-free, however. Here are three issues to watch out for!
Competition
With e-commerce companies sprouting up seemingly overnight, the industry is becoming saturated with businesses of every imaginable variety. Because of this, it can be difficult to rise above competitors. It may seem counter-intuitive, but the more that you can narrow your company down to serve a highly specific niche, the better. Doing this limits the competition, focuses on devoted clientele, and makes it easier for interested people to find you.
Cart Abandonment
A frustrating issue facing e-commerce businesses is cart abandonment. It is a major disappointment to attract someone’s business, only to have them abandon a full cart. Oftentimes, this loss can be avoided by creating a more user-friendly purchasing system. You can reduce cart abandonment by adding new payment options like Apple Pay. The easier it is to check out, the more likely it is that people will complete the purchase. In addition, allowing for guest check-out will help retain customers who are hesitant about setting up an account. Once an item is added to the cart, make the next steps overly clear. Don’t allow complicated or confusing websites to scare away potential customers.
Customer Service
Whereas customers of physical stores can see and feel the products they are purchasing, e-commerce customers only have an online picture and description to go by. And once a client makes a purchase from your website, they must wait on shipping. In this process, a lot can go wrong. Your shipping provider might lose, damage, or arrive late with the product. Then, the item might fall short in some way from the customer’s expectations. All of this increases the risk of customer dissatisfaction. The best ways to combat this are to practice excellent communication skills and to commit your business to finding a satisfactory solution for every complaint.
If you understand the potential pitfalls involved with e-commerce and take steps to address them, you will be far more successful. Making your website user friendly, narrowing your niche, and providing excellent customer service will go a long way to growing your business. Think like a customer and you will be able to keep your customers happy.
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