- Pay-per-click advertising is not always profitable. Fraudulent clicks from bots or people do not translate into real sales.
- A visual website optimizer can prevent checkout barriers and difficulties with the ordering process.
- PayPal has found that customers around the world are more likely to make a purchase when product descriptions and prices are in their native language and currency.
Electronic commerce has changed the way businesses operate today. It gave life to thousands of new businesses and a new channel of income to existing businesses.
While it can be easy to build an ecommerce website (or add an ecommerce component to your company’s existing website), issues around customer service, search engines, payment gateways , inventory management or order fulfillment are common and pose significant barriers. to achieve and maintain success.
What Problems Do Ecommerce Business Owners Face?
Consumers no longer need to go to stores to make their purchases. This digital age has reshaped the way businesses operate and provided multiple points of access for consumers to buy what they need.
Regardless of what you are selling, going digital can be a risky but lucrative business decision. This is especially true if you are selling durable goods, such as furniture, appliances, tools, electronics, and jewelry.
Companies in these sectors are likely to struggle to match the cost of goods sold until they sell enough of their inventory to break even. The cost of goods sold is the price it costs the retailer, manufacturer or distributor to manufacture their products.
Based on recently released surveys and reports, here are some other common issues that plague online retailers and what they can do about them.
Digital advertising is constantly evolving.
Advertising strategy is a big differentiator in a space where many people are selling the same products, according to Kevin Zhang, founder of Kreator eCommerce & Consulting. “It’s a never-ending battle against everyone in space,” Zhang told Business News Daily.
Success in e-commerce comes down to two main factors: traffic and conversion. E-commerce sites need relevant traffic and need said traffic to convert (i.e. buy), according to Andrew Scarborough, co-founder of Server Price.
“On the traffic side, you need to have relevant and unique content to grab search engine attention and educate your buyers,” Scarborough said. “For conversion, your site needs to be mobile-friendly, as mobile traffic often exceeds desktop traffic for online stores.”
Ecommerce business owners need to organize a catalog of unique products that fit your target market perfectly. This will give your online store a competitive edge and keep your customers coming back. As the business grows, you focus on building a strong social community within the customer base to increase loyalty and improve retention rates.
Online merchants using pay-per-click advertising are losing money on fraudulent traffic.
Despite the popularity of the pay-per-click (PPC) online advertising model, it is not always profitable for e-commerce businesses. Fraudulent clicks made by people or bots don’t translate into real sales (and then there’s the money you wasted for the PPC marketer to advertise your products).
One of the main obstacles that e-commerce businesses face is the dreaded abandoned cart. Visual website optimizer (VWO) estimates that 68% of online shoppers leave e-commerce sites without completing their planned purchases.
Although a VWO report found that the most common reason consumers abandoned an online sale – 56% – was due to unexpected payment costs, various tech-related reasons also top the list. including website browsing or loading issues, payment security issues, and the total time or difficulty in the payment process.
To recoup some of those abandoned purchases, VWO recommended removing barriers like checkout, complicated cart editing, and giving customers the option to save their carts for later.
US retailers are missing out on global sales.
One of the main advantages of e-commerce over traditional retail is the ability to easily expand the geographic boundaries of your business. According to a PayPal report, small businesses based in the United States could do much more to reach online shoppers around the world.
US e-merchants are not adapting the shopping experience to international consumers. Only 19% translate their website copy from English to other languages, and less than half list foreign currency options on their sites. Customers around the world are much more likely to make purchases when product descriptions and prices are available in their native language and currency, PayPal found. To reach international customers, choose a service that can translate your website copy into multiple languages and use a e-commerce platform which provides currency options for potential clients. [Read related article: Top E-Commerce Challenges Facing SMBs]
Payment processors can freeze your cash.
The livelihood of an e-commerce business can be at the mercy of payment processors and financial institutions. “I had a situation where my banking partner closed one of my accounts and withheld almost half a million dollars for 180 days – it almost bankrupted us,” Zhang said. “It happened because we grew up too fast and they wanted to audit our business. When all of your money is digital, it can be scary when things are preventing you from accessing that capital.”
When choosing a payment processor, make sure it supports your type of business (and the products you sell); otherwise, you risk having your funds frozen or your account closed. Additionally, if you anticipate rapid growth – resulting in an increase in your processing volume – you want to work with a full service. credit card processor and communicate with them regularly as your treatment needs change. Spikes in banknote volumes or sizes trigger red flags for card processors, and they can put your money or account on hold until their issues are resolved.
Hackers attempt to breach the security of your e-commerce website.
Layer of secure sockets (SSL) and its successor, transport layer security (TLS) are encryption-based Internet security protocols developed to ensure confidentiality, data integrity, and authentication in web communications. Anyone who tries to intercept data protected by SSL or TLS will see a mix of unreadable characters that are almost impossible to decipher, unless you are a skilled hacker with an SSL certificate decoder.
E-commerce sites are exposed when the same passwords are used for many sites, making it easier for hackers to use passwords stolen from other sites to recover your data, according to Caleb Sylvest, partner and experience designer in Space-time.
“SSL encryption is usually no longer a problem if you use a big name e-commerce platform like Shopify, because they provide SSL by default, “Sylvest said.” But if a store doesn’t have an SSL certificate, all actions and purchases on the site can be detected by bad actors. ”
Hackers can gain unauthorized access to consumer personal and payment information by running malicious programs. If credit card fraud isn’t worrying enough, additional security concerns such as man-in-the-middle attacks, bad bots, phishing scams and Distributed Denial of Service (DDoS), can affect the online environment of your e-commerce site.
Check with your e-commerce platform provider about the security protocols they have in place. Are they PCI compliant? What fraud protection technology do they use? What should you do to make sure that you are doing your part to protect your ecommerce website? [Read related article: E-Commerce Fraud: What Your SMB Needs to Know]
Buyers avoid online merchants who have suffered security breaches.
Data breaches are becoming all too common in the modern world of retail, and if your business is affected by a data breach it could have devastating effects. A report of Interactions found that 40% of shoppers avoid retailers that have been affected by security breaches, and 34% of shoppers will avoid online purchases for fear of a breach.
Almost half of all shoppers believe retailers (online and physical) should invest in better technology, according to the report. Assure your customers that their data is safe with you by securing your website with HTTPS protocol, using an e-commerce platform that prioritizes data security, ensuring that your platform e-commerce or shopping cart is PCI compliant and requiring your customers to use strong passwords. [Read related article: How to Protect Your Customers From Data Breach Identity Theft]