Problems & Challenges Faced By Online Sellers & Solutions
- 1 Problems & Challenges Faced By Online Sellers & Solutions
- 1.1 Problems & Challenges Faced By Online Sellers
- 1.1.1 1. Competition
- 1.1.2 2. Technology
- 1.1.3 3. Easy to Transact Business
- 1.1.4 4. Marketing
- 1.1.5 5. Finding the right products to sell
- 1.1.6 6. Attracting and hiring the right people to make it all happen
- 1.1.7 7. Attracting the perfect customer
- 1.1.8 8. Generating targeted traffic
- 1.1.9 9. Achieving profitable long-term growth
- 1.1.10 10. Capturing quality leads
- 1.1.11 11. Retaining customers
- 1.1.12 12. Nurturing the ideal prospects
- 1.1.13 Related posts
- 1.1 Problems & Challenges Faced By Online Sellers
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Online Business or e-business is any kind of business or commercial transaction that includes sharing information across the internet. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business.
Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses, while e-business refers to business with help of the internet.The term “e-business” was coined by IBM‘s marketing and Internet team in 1996.
Online business ranges from small scale to large scale businesses, from sole entrepreneurship to partnership. The internet had made business easy and faster with a payment system that enables people to do business within minutes.
Problems & Challenges Faced By Online Sellers
It is not easy especially for start business to compete against large cooperation, which products and services had been tested and trusted overtime. For example, competition in the retail sections with a company like Amazon, which controls a very large chunk of the retail market in the world, will require a very desperate marketing strategy like discounts, giveaways and so on. And this may cost extra money trying to beat the already established competition.
One of the most pressing problems of online businesses is technology. In order to set up your business online, you have to get the best website designers and use the best web hosting company integrating your system with the most secure and easy payment system. All these can be very expensive but worth it as it will determine the ease at which customers do business on your platform. Customers will become frustrated and leave if they encounter difficulties in visiting your websites, such as slow loading, shut down problem and security issues such as phishing. You have to create a secured, fast and reliable network to attract customers.
3. Easy to Transact Business
Online business found it difficult to get business when customers and client do not trust the payment system available on their website. With the introduction of online payment systems, people have become comfortable paying for goods and services online using their credit card or paying through tested and trusted agents like PayPal, VoguePay and so. If you do not have these payment platform integrated into your websites, it will be difficult getting customers to trust your platform for businesses.
Another challenge faced by online business is marketing especially digital marketing. This had made most online business unable to get noticed and have a large share of the market. Any online business outfit should employ the services of a digital marketer to drive the businesses online and establish its presence.
5. Finding the right products to sell
Shopping cart platforms like Shopify have eliminated many barriers of entry. Anyone can launch an online store within days and start selling all sorts of products.
Amazon is taking over the eCommerce world with their massive online product catalog. Their marketplace and fulfillment services have enabled sellers from all over the world to easily reach paying customers.
Let’s not forget about Aliexpress. They’ve simplified product sourcing by giving access to Chinese manufacturers within a couple of clicks.
All of this has made it very difficult for retailers to source unique products unless you they decide to manufacture your own.
6. Attracting and hiring the right people to make it all happen
Let’s face it, online retailers may have visions and aspirations but one true fact remains, they need the right people to help them carry out their desires.
Attracting the right talent is key in order to achieve desirable online growth. Also, having the right leader plays an even bigger role.
Retailers should be out there getting their name out within the online community by attending eCommerce conferences, speaking at events and networking. Employees want to work for companies that care about them and their future. Having a sense of purpose is key.
7. Attracting the perfect customer
Online shoppers don’t shop the same way as they used to back in the day. They use Amazon to search for products (not just Google). They ask for recommendations on Social Media. They use their smartphones to read product reviews while in-store and pay for purchases using all sorts of payment methods.
Lots has changed including the way they consume content and communicate online. They get easily distracted with technology and social media.
Retailers must figure out where their audience is and how to attract them efficiently without killing their marketing budget.
8. Generating targeted traffic
Digital marketing channels are evolving. Retailers can no longer rely one type of channel to drive traffic to their online store.
They must effectively leverage SEO, PPC, email, social, display ads, retargeting, mobile, shopping engines and affiliates to help drive qualified traffic to their online store. They must be visible where their audience is paying attention.
9. Achieving profitable long-term growth
Increasing sales is one way to grow the business but in the end, what matters most is profitability.
Online retailers must always find ways to cut inventory costs, improve marketing efficiency, reduce overhead, reduce shipping costs and control order returns.
10. Capturing quality leads
Online retailers are spending a significant amount of money driving traffic to their online store. With conversion rates ranging between 1% to 3%, they must put a lot of effort in generating leads in order to get the most out of their marketing efforts.
The money is in the list. Building an email subscribers list is key for long term success. Not only will help you communicate your message, but it will also allow you to prospect better using tools such as Facebook Custom Audiences.
Not all leads are created equally. Retailers must craft the right message for the right audience in order to convert them into leads with hopes of turning them into customers.
11. Retaining customers
Attracting new customers is more expensive than retaining the current ones you already have.
Retailers must implement tactics to help them get the most out of their customer base in increase customer lifetime value.
12. Nurturing the ideal prospects
Having a large email list is worthless if you’re not actively engaging with subscribers.
A small percentage of your email list will actually convert into paying customers. Nonetheless, retailers must always deliver value with their email marketing efforts.
Online retailers put a lot of focus on communicating product offering as well as promotions, but prospects need more than that. Value and entertainment goes a long way but that requires more work.
That’s the much we can take on the topic “Problems & Challenges Faced By Online Sellers & Solutions”.
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