The 3 Biggest Challenges of E-commerce in the Future
The recent pandemic initiated a global shift to digital transactions. People started relying on search engines to find information about anything they intended to buy instead of visiting stores. Search engines were bombarded with queries such as ‘how much is Spectrum Internet?’, ‘coffee delivery nearby’, ‘best masks for kids’, and gazillion other questions. Due to restrictions imposed by the government, people were unable to leave their homes during the pandemic causing online sales to soar to a whole new level.
The Growth of E-Commerce
In the past, competition in E-Commerce was fairly low. Technology was expensive and it wasn’t widely available. However, the landscape has completely transformed now with easy access to affordable technology. Online retailing is reaching new heights.
According to an estimate, a shocking 95% of purchases are expected to take place online by 2040. The total transaction value (TTV) of global online sales is also estimated to reach approximately USD 4.5 million by 2023.
Future E-Commerce Challenges
As more retailers are shifting to online selling, competition is increasing rapidly. Hence, businesses need to figure out the challenges that may arise in E-Commerce in the future. To gain a competitive edge, businesses need to address these E-Commerce challenges timely. Intelligent retail practices are the need in this evolving competitive digital world.
Let’s have a look at E-Commerce challenges that may arise in the future.
#1: Data Privacy
With the rapid increase in online transactions, security is becoming a concern. Confidential data can be hacked, stolen, or attacked by viruses and malware that can cause a lot of damage to an online retail business. Furthermore, as cash transactions are becoming outdated, increased credit card information breaches are expected in the future.
Online companies need to find a solution to this issue to retain customers by gaining their trust with enhanced security measures in place. They can achieve this by firewall software and plugins, HTTPS protocols, data encryption, enabling threat alerts, credible third-party payment processing systems, and multi-factor authentication.
#2: Demanding Customers
Access to modern technology has made consumers more demanding than ever before. They are not ready to compromise on user experience. The increasingly informed modern consumers pose a challenge to digital sellers as meeting these high standards will be a challenge for businesses.
Even a single unpleasant experience can lead to brand switching. To deal with this issue, sellers must focus on what the buyer is exactly looking for, understand their needs, and approach them in a more personalized manner to generate sales.
Additionally, to provide an enhanced user experience, businesses should look to appoint professional digital marketing agencies that can help them with attractive website interfaces, data analytics, and other marketing services that will enable the business to perform efficiently and consistently.
#3: Business Agility
It is not so easy for businesses to adapt new changes to their processes. Change takes time. Integrating new technology into the company’s system can be a complicated procedure but a critical one to secure a position in the digital marketplace. Agility is the businesses’ tendency to introduce new developments, improve digital practices and accurately react to seasonal changes. It is a crucial initiative in E-Commerce that helps businesses achieve digital fulfillment. To provide a superior online shopping experience, companies would need to continually adapt to changes in the technological landscape enabling them to roll out new features and focus on fresh content.
#4: Improved Logistics
A continuous, efficient supply chain is the backbone of every online business. As it involves many stakeholders, issues and errors are bound to occur leading to increased delivery times and costs.
To satisfy the modern consumers who prioritize speedy delivery options, sellers need to modify their supply chain strategies by enabling supply chain visibility to monitor their inventory and handle lags timely to avoid delays. Additionally, human-led deliveries are expected to be replaced by drone deliveries entirely in the future.
#5: Customer Support
With the boost of E-Commerce comes the issue of an increasing need for customer support. Buyers purchase a variety of products online. Some need assistance to understand how to use these products.
For example, if a person purchases a stroller and is not able to understand the instructions in the instruction manual, he will require further support to assemble it. Similarly, millions of customers face different types of challenges when they buy things online and need proper guidance.
Some may be concerned about their delayed package while others may be worried about receiving a defective product.
Although companies have come up with chatbots and other automated mediums to provide help to customers digitally, most of the time issues are not generic and need human intervention for a solution.
To overcome this challenge, businesses must invest in human contact centers that can provide personalized assistance to consumers in the future to ensure customer satisfaction.