New opportunities and new challenges have emerged due to the pandemic. Brick-and-mortar stores are struggling due to the increase in online shopping, while E-Commerce is trying to keep up with the increase in demand. These are the global challenges that E-Commerce is facing in 2021.
- Customer Experience
Now that a majority of users are shopping online, they expect a more customer friendly experience. This could mean things like a low-cost or free return policy, free shipping, 24/7 customer service, digital payment options, or even personalization options. The US Federal Trade Commission (FTC) reported a spike in consumer complains about online shopping in July of 2020. Retailers should try to stay on top of the latest trends and be transparent when it comes to shipping and return policies.
- Rise in Mobile Shopping
Shopping through smartphones is becoming increasingly popular and has become a large portion of the total U.S. retail sales. A study by PwC shows that 45% of global consumers say they’re shopping more on their smartphone since COVID-19 began. To keep up with this growing trend, retailers should optimize their websites to be mobile-friendly and maintain product information software.
- Cyber & Data Security
One of the biggest challenges that e-commerce faces is security breaches. As more people continue to shop online, there is a higher chance that fraud and data breaches will take place. Security issues can cause severe damage to retailers as well as brand image. To help avoid such damage, businesses should always back up their data and be sure to have a security plugin on their website to prevent it from getting hacked.
- Increased Difficulty in Attracting Customers
Consumers are finding products and brands in many different ways which makes it a lot more difficult to connect and attract business. A study from Statista states that 63% of consumers are starting their product search on Amazon, which is taking away business from other retailers. E-commerce shops can overcome this challenge by empowering their team to stay on top of new channels, new trends, and new opportunities. If selling on Amazon is an option for your business, then you may want to look into it.
- Increased Importance in Using Technology
Technology is one of the most important and influential tactics e-commerce businesses should use and stay on top of. Using the right technology can help expand your business and provide maximum efficiency. The most popular technology that is emerging for online retailers and marketers is artificial intelligence (AI) and cross-channel advertising management solutions. AI can help automatically optimize search and shopping campaigns for better conversion rates. The right technology can help save retailers time, maximize performance, and stay at a competitive advantage.