Question: What are the challenges of E-Commerce companies?
Indian ecommerce retail sales constitute 4-5% of the total retail sales and are increasing at a decent rate of 10-15% every year. So there is not doubt about it when it comes to that India, Ecommerce is a large market, still waiting to be exploited, thus making it really important to know what the consumers are looking for in terms of electronics, apparels & footwear, home décor, food services, jewellery etc.
Now being in to Ecommerce and Digital Industry from almost teh a Decade i can list down Challenges which Indian Ecommerce Companies are Facing
- Technology and Platform:
- Great experience :
- Buying Trend:
- Hassle Free Returns/Exchange:
- Supply Chain Issues:
- After Sales Support:
Lot of Companies who want to do entry into Ecommerce or Start ups, their first and for most challenge is Which Technology or platform they have choose, there are lots of option available but to each platforms are having their own Pro and Cons, at the same time technologies are changing at rapid rate so to maintain that pace they really have to invest a lot if Time and Energy and always keep them upgraded
There is also an IT element to this story. Your efforts to overcome the challenges can be helped or hindered based on the quality of your systems.
You know you need great data, and great experiences to compete in a client-centric world. But how do you actually deliver these brand-defining experiences?
If it was easy to do, every company would do it
Most great customer experiences come from a personal touch. No one wants to feel like a number, so even a small element of personalization can go a long way to improving the retail experience, and putting the customer first.
But you can’t personalize if you don’t know anything about your customers. You need to have the systems and processes in place to collect customer data, and to actually use it in a meaningful way. The only way to understand your customers, and get the benefits from this insight is to have consistent data ingested and blended throughout your organization
This accounts to age, gender, and geography of the consumer browsing through ecommerce platforms which contribute to conversion of sales. Data collected through sign up forms, IP identifications etc., play a vital role for the same and then the factor of relevance of the products that come up as suggestions come into play.
With the enhancement of AI and deep learning, bots are playing a major role in analysing data through continuous chats with the users via Facebook’s M or in-house developed chat bots for their websites and apps. Though technology is yet to astound us with perfectly accurate bot replies, but in a not-so-distant future, we can expect it to grow, as all the major giants like FB, Microsoft, Amazon etc are betting their money on the same
Unlike electronics, apparels, footwear and other domains that sell standard and branded merchandise, home décor and food servicing industry face the real challenge of delivering a quality product. Since most of the home décor products are custom made, it is of key importance to run a stringent quality check at different stages of manufacturing the product and then aggregating trustworthy sellers in case of multi-vendor marketplaces.
Returns and exchanges is a major bottle-neck in the ecommerce business as the same can be experienced for standard as well as custom products. Efficient follow-ups and timely returns/ exchange contribute to a major retention of users. If not tracked properly, this also accounts to a higher logistics cost, loss in revenues and overall loss in reputation.
More often than not, timely delivery is a major issue depending upon the location, infrastructure and unavoidable hassles during transmits which leads to the cancellation of orders by an annoyed user if the products are not delivered on time. This is a time-consuming process that requires much R&D for almost all the e-commerce platforms as to facilitate users with the best supply chain models.
More than 50% users want personal support before and after the purchase of items.
This is where the brick and mortar retail businesses leave ecommerce behind. The sole option to touch and feel the products before buying makes a big difference in terms of sales as the consumer has the option to ‘try before you buy’, leading to the product delivered being what is expected by the user.