If you’re an ecommerce business owner or retailer, you know that the Internet can be both a blessing and a curse when it comes to managing your business effectively. While it makes customer acquisition much simpler than in any previous time period, it also brings its fair share of hurdles, too. This article details some of the most common ecommerce challenges and how to overcome them.
Shipping Costs
Shipping costs are one of the biggest hurdles for ecommerce businesses. Not only do you have to pay for shipping yourself, but customers also expect free or low-cost shipping. This can be a big strain on your budget, especially if you’re just starting out. If you have time and resources, try testing out different carriers and see what’s best for your company.
Break down these costs by geographical location as well as weight so that you know which product is most profitable to ship at any given time. If a product is too heavy or bulky, consider having it shipped in parts rather than all at once. You’ll save money by not paying such high rates and people will still get their products in one piece.
The lower prices will bring more traffic to your store, giving you more chances to increase revenue. Plus, if the customer doesn’t like their purchase, they’ll return it easier when they didn’t have to spend a fortune on shipping costs. Also, make sure you’ve got your Amazon fees taken care of. Amazon takes 15% off each sale while other companies take 3%. That could really affect your bottom line.
Investing in Customer Service
One of the biggest ecommerce challenges for ecommerce businesses is providing excellent customer service. Since customers are not able to physically interact with products before purchase, it’s important to make sure they feel confident and supported throughout the buying process. This can be done by investing in a strong customer service team and providing multiple channels for customer support (e.g. phone, email, chat).
Another ecommerce challenge for many ecommerce businesses is meeting customers where they want to shop. While most prefer the convenience of shopping online, some still prefer traditional brick-and-mortar stores. To meet this demand, many retailers offer an in-person experience at their store locations that reflects what’s available on their website while also creating room for people who just want to browse without a purchase commitment. For example, customers may be allowed to try out products before they buy them or even request items from the company’s back stock.
Another challenge for many ecommerce businesses is meeting customers where they want to shop. While most prefer the convenience of shopping online, some still prefer traditional brick-and-mortar stores.
Finding the Perfect Product
The first step to starting an ecommerce business is finding the perfect product. This can be a challenge because you need to find something that is in demand and that you can source at a reasonable price. You also need to make sure that your product is unique and differentiated from what is already on the market. Once you have found the perfect product, you can move on to the next step in starting your ecommerce business.
Another major hurdle for ecommerce businesses is marketing. Without a strong marketing campaign, people may not know about your products or services. It’s important to spend time and money building up your marketing strategy before launching so that you don’t get left behind when competing with other businesses online.
You also need to establish customer service procedures so that customers are happy with their experience purchasing from you online as well as policies so they know what they are getting into when they do business with you offline. That being said, some of the benefits of starting an ecommerce business include having less overhead costs than brick-and-mortar stores and increased flexibility in terms of hours. These benefits help offset some of the challenges faced by entrepreneurs who want to start their own store without leaving home.
Choosing the Right Payment Processor
When you’re first starting out, it can be tempting to go with the cheapest payment processor you can find. However, this can be a mistake. You need to find a balance between cost and features. Some processors will have hidden fees, so be sure to read the fine print before signing up. If you’re planning on selling internationally, look for providers that provide localized checkout options. Finally, do your research.
Make sure the company is reputable and has been in business for some time. Beware of small companies who may not be around long enough to help if something goes wrong. The best companies also offer 24/7 customer service, which is vital when your website goes down or an order gets lost in transit. Many of these same features are offered by smaller players, but because they charge less, they won’t be as good. To make sure you’re getting a good deal without cutting corners, compare several different offers before making your decision.
Building Trust in an Online Store
In a world where anyone can create a website and start selling products, it can be hard to know who to trust. As an ecommerce business, you need to build trust with your customers from the very beginning. Here are a few ways to do that:
- Use high-quality product photos.
- Write detailed product descriptions.
- Offer customer reviews and testimonials.
- Guarantee satisfaction with a strong return policy.
- Show pricing clearly on all items before purchase.
- Have an easy checkout process and offer safe payment options such as PayPal or credit card processing services like Stripe or Shopify Payments.
- Have good shipping rates so shoppers don’t have to pay for shipping when they buy more than one item.
Protecting Your Brand Name
One of the biggest ecommerce challenge businesses is making sure that their brand name is well protected. There are a few ways to do this, but the most important is to make sure that you have a strong trademark registration in place. This will give you the legal protection you need to go after anyone who tries to use your brand name without permission.
The cost to register a trademark can be high, but it’s worth the investment if you want to protect your company and its reputation. One thing to note about registering trademarks is that there are three classes of trademarks: word marks, service marks, and logos. If you sell goods or services in addition to just having a website then it might be wise to get both a word mark and service mark. Your logo should only be registered as a trademark if you’re using it as part of an advertising campaign.
It won’t offer much protection on its own otherwise. All other trademarks should be registered with either the United States Patent and Trademark Office (USPTO) or the Canadian Intellectual Property Office (CIPO). You’ll need to decide which one makes more sense for your business based on where you’re based and what kind of products you’re selling. In some cases, they may offer a Joint Application so that people from different countries can file together if they wish.
Establishing Trust With Google Reviews
Any business that wants to succeed online needs to overcome the challenge of establishing trust with potential customers. One way to do this is by getting Google Reviews. Google is the most popular search engine, so potential customers are more likely to trust a business that has good reviews on Google. Furthermore, businesses with good reviews on Google are more likely to show up in search results, which can lead to even more customers. It’s also important for merchants to respond to all feedback, both positive and negative.
If you handle all feedback quickly and respectfully, it’s easier for your customers to establish trust with you and feel confident about their purchase.
Ways that Ecommerce Merchants can build Customer Trust
There are other ways that ecommerce merchants can build customer trust.
Communicating Quickly With Customers:
The majority of customers want to hear back from their favorite brands within 12 hours.
Providing Excellent Customer Service:
Even if your products or services meet or exceed expectations, unhappy customers will still leave bad reviews if they have any issues during checkout or with their order fulfillment process. That’s why it’s crucial for merchants to provide excellent customer service before, during and after the sale.