A Greek philosopher once said, “Change is the only constant in life.” The ecommerce business evolved from basics, with minimal competition and limited access to the product and transformed to a sophisticated approach. Even when internet and electronic device has stirred the market initiating growth of the ecommerce industry, it has still not developed fully due to the existing challenges like secured online transactions. In this process of transformation, the ecommerce business are facing many challenges.

Absence of appropriate platform for unique products

Platforms such as Shopify, Amazon and AliExpress although simplified the experience of selling products online, yet it could not create an exclusive platform for unique products. This can become a huge challenge for companies trying to sell limited edition and unique products via ecommerce.

Review based buying

There has been a change in the behavior of buyers over the years. Online shoppers are observed to search products and gather recommendations on the same before buying them. Hence, customer review has become very important in the ecommerce business. The change here is evident the way consumers communicate online and share feedback on a product. Based on reviews, the demand for a particular product increase or decrease. The major challenge here is to identify the means to attract consumers without exhausting marketing budget.

Progress beyond digital marketing channels

Ecommerce retailers cannot depend upon only digital marketing channels to attract customers, as the retailers are experiencing steep competition due to growing convenience of online shopping. Hence, to counter this challenge organizations should try to analyze customer’s choice and the driving force.

Journey from leads to paying customers

Converting traffic into quality lead is not an easy task. Infact, enterprises dealing with online retailing, invest a significant amount of money to generate quality leads. Even customized message through email subscribers are utilized with limited result. Although retailers invest considerably on email marketing yet the percentage of potential customers turning into real customers is less. Converting leads into paying customers is a continuous process that can make marketing campaigns worthy.

Buying comfort – touch and feel

Consumers till date prefer to choose a product by touching it. This is a comfort zone that many buyers feel safe to operate in. Thus, ecommerce could not capture the consumer market completely.

Expanding the consumer market

Be it a new customer or retaining an existing customer, the process is uncertain and complicated. This has been a huge challenge lately for the ecommerce business. All of this is impacting on profit generation. Online retailers try to reduce inventory costs, enhance marketing competence, reduce overhead cost, manage shipping costs and control order returns. Cash on delivery (COD) was introduced with a mindset to reduce security issues and reach out to those customers who depend upon cash transactions. However, companies are incurring loss due to COD mode of payment since, there are customers who refuse to pay at the time of delivery.

Faulty technology and lack of knowledge

The ecommerce business often encounter challenges regarding growth, and this happens due to inefficient technology, lack of skill and business partner. The right platform with an efficient inventory management software and CRM system can ensure effective functioning of the online business. Absence of networking, through ecommerce conference and events result in stagnation of brand marketing. According to secondary market research, about 50% of Indian online shoppers are unaware of online security. This hinders the trust on online shopping.

New vs reputed retailer

Although the ecommerce industry is born out of the internet revolution, it has not yet explored the technology in full swing. The advent of new online retailers are threatening reputed retailers. Hence, the renowned retailers are focusing on customer service experience to create a demarcation between new and existing sellers. Few companies like Makemytrip.com, flipkart.com and Snapdeal.com has overcome the challenges to expand the horizon.

- Kathakali Basu
Content Writer
Infoholic Research