E-COMMERCE, A PROMISING INDUSTRY BUT WITH SOME CHALLENGES

E-COMMERCE, A PROMISING INDUSTRY BUT WITH SOME CHALLENGES

In recent years, the e-Commerce has shown a sustained growth worldwide, and every day is greater the number of people who buy and sell online.

However, the industry faces some problems that must be addressed, because even though there is a good number of sellers and potential buyers for different products and services, there are several reasons why sometimes an online  purchase is not completed.

Among the reasons that lead a person to interrupt an online shopping process are:

  • Bad user experience: Discomfort for the user in terms of functionality of the e-Commerce website, causing a bad shopping experience, as they often have errors or inaccurate filters.
  • Lack of support: Sometimes, the buyer hesitates about the purchase by not having all the necessary information to complete the process.
  • Insufficient information: Some products or services do not have enough information (technical specifications and/or characteristics) for the buyer to make an informed decision.
  • Substandard logistics: Unsatisfactory shipping times and costs. In addition, there is the fear of not receiving the actual product or that it arrives in bad condition.
  • Lack of channel integration: From time to time, the products on the online store don’t match those of the physical store. The online store often has a poor supply, or lacks promotions. And sometimes, the prices vary.

The most common reasons some users decide not doing online shopping are:

  • Means of payment: The customer can’t find a satisfying form of payment to complete the transaction, since many times it's necessary to have a credit card.
  • Mistrust in the safety filters: Companies don’t provide safety guarantees regarding the data transfer and management required during the purchase process.

That’s why e-Commerce websites face the big challenge of ensuring that the buyers who visit their virtual shops get the right product and have a good shopping experience, completing the process in a satisfying way.

This is why if a company wants to compete and last in this industry, it must consider the following:

  • User's experience: You must have a friendly interface, clear and with a fast, simple and clean information and product search process.
  • Professionalization of the online channel: Professionalizing the links in the chain of sale reduces significantly the failures and bad shopping experiences of your customers. Some examples are: add technological innovations, design logistic strategies to reduce delivery times and costs, offer the same products in both the virtual and online stores, and implement marketing strategies that include social media, e-Marketing, search engine positioning, etc.
  • Multichannel: The companies must guarantee the same satisfaction level in all the options they provide to their customers for their purchase, whether it is via their website, email, call center, chat, etc.
  • Mobility: Customers no longer wait to get to their computers to shop online. So, whoever doesn’t have the option in all the platforms available (smartphones and tablets) will be left out.
  • New technology: Geolocation, biometrics, augmented reality, data base in memory, among others, are some of the new tools being used to enhance the shopping experience.
  • Information Analysis (Big Data): E-Commerce websites generate a huge amount of data that, with the use of current technologies, provide us with a chance to analyze this information and understand how to use it in order to maximize sales and create customized shopping experiences.
  • Social e-Commerce: It is increasingly common that consumers share their shopping experiences in social media (Yelp, for instance), which play a key role in the decision process of other potential customers. The right e-Commerce strategy will allow the company to gain leverage and attract new customers.
  • Building confidence: Online security levels must be increased on transactions through data encryption, digital certificates, trust marks from recognized agencies and any other mechanism to provide the user with the confidence needed when submitting personal information.

This is how in the times of e-Commerce expansion, those who understand the user’s needs and trends for the coming years will be better positioned to become successful within the sector.

 

By Ana María Morales

  •  Ana Maria Morales Rosales

    Ana Maria Morales Rosales

    Profesional en Administración de Negocios Internacionales con especialidad en Gestión Contable y Financiera y empresaria independiente, cuenta con 5 años de experiencia en la comercialización de intangibles y la creación de equipos de trabajo de alto rendimiento, conformados por emprendedores de diversos sectores del mercado, tanto en Colombia, como en otros países de Latino América.

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