20 years ago, it was tough to imagine that businesses will read millions of tweets and cater to thousands of customer calls daily. By putting customers at the helm of every process, the e-commerce industry has changed the way customers view themselves. Today customers are not only ready to pay more for a quality experience but are waiting to be dazzled by new things or experiences.
Challenges that E-commerce Players have addressed with Innovation
Even the most budding e-commerce store that runs on bootstrapped money is a change maker. Any business that adapts technology is a change-maker but the e-commerce industry is more about solving problems.
E-commerce stores have disrupted the retail industry. They have changed the way people acquire products/services and pay for them. By introducing multiple new and exciting features, online stores have made customers accustomed to benefits, they didn’t believe existed until they tried it.
A series of innovation and technological adoption has leveraged the E-commerce industry with the status of mass disruptors. From Amazon to Lenskart, every online store has improvised, acquired state-of-the-art technology and methodologies to create an exceptional customer experience hence the success.
Some of the Common Challenges E-commerce Industry Overcame
Reduction in fraud by customers: Sellers and marketplaces were having a tough time dealing with cases of fraud by customers. There were instances where customers order a genuine item from online stores and then replace it with fake or imitated products picked from the local market.
In the end, customers had both genuine products and their money refunded too. While delaying refund would have impacted the customer experience so the online stores decided to train delivery executives. By conducting training sessions for delivery executives, e-commerce stores turned return verification possible at the pick-up point. It solved the cases of fraud by customers with a good percentage. Both Amazon and Flipkart are planning to launch a similar campaign in India.
Top Bottlenecks for E-commerce Growth
Increased 3G/4G penetration in India, China, and Bangladesh has opened new doors for nascent e-commerce marketplaces. Today entrepreneurs from the remotest corners of India and China are running online stores quite effectively. The prominent e-commerce roadblock they face is cybersecurity challenges. A good number of threats is staring them into the eyes and often boggling their entire efforts in varied campaigns. Some of the top cybersecurity challenges include
Triangulation fraud: More like an advanced version of Phishing. To carry out a Triangulation Fraud, scammers create a fake storefront and record the credit card details. Then they place an order from the original store. Later recorded credit card detail is used by frauds to order items worth high ticket. Chargeback by the credit card owner, revenue loss due to products being shipped, and negative branding are some of the prime impacts of triangulation fraud.
Credit Card Frauds: Frauds often attack small websites only to steal credit card details. Later they use these cards for shopping on bigger websites. When accepting transactions online the liability of fraudulent transactions lies with the merchant. All transactions on e-commerce platforms are Card Not Present (CNP) transactions and are deemed less secure because the cardholder is not present with a card for cross-verification.
Fulfilling requisite compliances and establish a secure connection can help online stores avoid all such scams and duping events.
2. Cart Abandonment
Shopping cart abandonment is costing e-commerce players a lot of money. The increasing cost of customer acquisition goes waste when carts are abandoned. E-commerce players are willing to control the increasing abandonment rate and working on the factors. Once online stores have spent time finding out the reason why carts are abandoned, it gets easier to control it. Competitor benchmarking and customer journey mapping are two tools that e-commerce players can rely on for discovering factors leading to cart abandonment.
Controlling the cart abandonment rate is not a onetime exercise, it is a process t