How to Overcome the Top 4 eCommerce Challenges via Digital Transformation?
In recent years, eCommerce industries have seen exponential growth. To justify this, global retail eCommerce sales, as reported by Statista, amounted to 5.2 trillion U.S. dollars in 2021, which is further expected to reach 8.1 trillion dollars by 2026. This growth has been fueled by businesses and customers who have increased the adoption of digital technology. However, the rise of eCommerce has also brought in new challenges, which needs to be addressed. In this article, we will discuss them in detail along with providing a suitable solution to the problem through digital transformation. So, let’s begin:
eCommerce platforms enable businesses to create online stores, manage inventory, and sell their products to a global audience. Their exclusive features help businesses get customizable templates, shopping cart integration, secure payment gateways, and more. So, let’s have a look at some of the popular eCommerce platforms along with their features:
- Shopify: It is a leading eCommerce platform that powers more than one million businesses worldwide. With features such as unlimited products, 24/7 customer support, and a range of payment gateways, Shopify boosts online businesses.
- WooCommerce: Being an open-source eCommerce platform, built on WordPress, WooCommerce is a popular platform among small businesses that offer a range of features such as customizable templates, product management, and shipping and tax management.
- Magento: An enterprise-level eCommerce platform, Magento, offers features such as advanced search capabilities, marketing and SEO tools, and customer segmentation for business owners looking to adapt to this platform.
- BigCommerce: An all-in-one eCommerce platform that allows businesses of all sizes to sell their products online, and offers a wide range of features such as customizable storefronts, payment processing, shipping integrations, marketing tools, and more. Thus, with one of its biggest advantages being its scalability, BigCommerce handles high traffic and large inventories, making it an ideal platform for growing businesses.
Therefore, apart from the four popular eCommerce platforms discussed above, there are several others with their own unique features of pricing and customization options, including Volusion, Squarespace, Wix, OpenCart, PrestaShop, Ecwid, Weebly, and more. Thus, with each of its strengths and weaknesses, it might sometimes be hard to choose the one that best fits your business needs and budget. That’s why, we have brought before you the top 4 challenges faced by eCommerce platforms and how Digital Transformation resolves them. Let’s find out:
The process of using digital technologies to transform traditional business processes and operations is digital transformation. In eCommerce, digital transformation is essential for businesses to stay competitive and adapt to changing consumer behavior. However, it also presents new challenges that need to be addressed. Starting with the first one given below:
Customers expect a seamless shopping experience across all devices, fast and reliable shipping, and personalized recommendations. Therefore, providing a superior customer experience is essential for businesses to stand out in the highly competitive eCommerce industry. That’s why, a consistent customer experience can be challenging, especially for businesses that sell on multiple channels.
One of the most effective ways to overcome this challenge is to invest in an eCommerce platform that offers customizable storefronts, mobile optimization, and integration with major shipping carriers and payment options. For instance, Shopify offers a wide range of templates and themes to customize storefronts and provides a mobile app for businesses to manage their store on the go. BigCommerce also provides customizable storefronts with drag-and-drop functionality and integration with major shipping carriers, payment options, and marketing tools.
Accenture reports that 75% of consumers are more likely to make a purchase from a business that recognizes them by name, recommends products based on their purchase history, or knows their purchase history across different channels. By investing in an eCommerce platform that provides personalized recommendations, businesses can improve customer retention and loyalty.
Since data is crucial for businesses to make informed decisions and improve their operations, eCommerce businesses generate a large amount of data from various sources — website analytics, customer feedback, and sales data. Managing and analyzing this data can be overwhelming, especially for businesses that do not have a dedicated data team.
Investing in a customer relationship management (CRM) system that integrates with your eCommerce platform is one of the solutions that we can provide. For instance, Salesforce offers a CRM system that integrates with major eCommerce platforms such as Shopify and BigCommerce, providing businesses with a 360-degree view of their customers and allowing them to make data-driven decisions. Making use of such systems allows businesses to centralize their data and gain insights into customer behavior, sales trends, and marketing performance too.
Cybersecurity is a major concern for eCommerce businesses as they store sensitive customer information like credit card details, addresses, purchase history, etc, which is why, a security breach can damage the business’s reputation. Thus, losing the customer’s trust as well.
To ensure cybersecurity, businesses need to invest in a robust security system, which includes SSL encryption, two-factor authentication, and regular security audits. eCommerce platforms such as Magento and BigCommerce provide SSL encryption to ensure secured transactions with security features such as two-factor authentication to prevent unauthorized access.
Another solution is to invest in cybersecurity software. Cybersecurity software can help businesses detect and prevent cyber-attacks. For example, antivirus software can detect and remove malware from the website. BigCommerce offers integration with leading cybersecurity software, including Symantec and McAfee. If you’re a beginner in using the Bigcommerce platform and don’t know how to integrate it with your business, consider hiring experts from BigCommerce development companies like CodeClouds, for ensuring advanced security checks of your website, development of fully-compliant checkouts that rotates around your website integration strategy.
While cybersecurity is a serious concern for eCommerce businesses, managing inventory can be a challenging task too, especially for those having a large product catalog. Businesses need to ensure that they have enough stock to meet customer demands while avoiding overstocking, which can lead to waste and massive loss of revenue.
Integrating your eCommerce platform with inventory management systems can be a perfect solution for your business. This may allow businesses to automate inventory tracking, set reorder points, and receive notifications when stock levels are low. eCommerce platforms such as Shopify and BigCommerce provide inventory management tools, which allow businesses to manage their inventory efficiently.
Hence, with so many challenges faced by companies using eCommerce platforms in today’s digital world, here are some of the famous ones that have successfully unlocked the possibilities of eCommerce through digital transformation. Let’s explore:
Examples of Famous Companies That Have Successfully Unlocked the Possibilities of eCommerce Through Digital Transformation
By heavily investing in its online store and acquiring several eCommerce companies, like Jet.com and Bonobos, Walmart has unlocked the possibilities of eCommerce. This company leverages its vast physical infrastructure to offer new delivery options to its customers. Similarly, it also offers free two-day shipping on millions of items, as well as in-store pickups and same-day delivery, available in selective markets. These options make it easier for customers to shop with Walmart, regardless of their location.
It is another great example of a company that has used digital transformation to create a seamless customer experience across all channels. By investing in mobile apps, Nike has allowed its customers to shop, track their orders, and even reserve products for in-store pickup. Also, it has used data to personalize the customer experience by recommending products to them based on their past purchases and browsing history. Thus, Nike’s personalized approach has helped the company create a loyal customer base and drive sales.
3. Domino’s Pizza
Everyone has heard about Domino’s Pizza, isn’t it?! But what about its digital transformation to improve its operations and customer experience? Just like Nike and Walmart, Domino’s Pizza has also invested in new technologies such as a mobile app and its “pizza tracker,” which allows customers to track their pizza from the oven to their doorstep. Therefore, Domino’s has also used data to improve and optimize operations and delivery routes respectively, helping businesses in achieving their goals.
Digital transformation in eCommerce presents both challenges and solutions. While the rapid advancements in technology have opened up new opportunities for online retailers, there are also a few obstacles to overcome, such as cybersecurity concerns and the need for a streamlined customer experience. That’s why businesses must focus on building a culture of innovation and continuous improvement, which means investing in the right talent, fostering a collaborative work environment, and being open to new ideas.
Therefore, if you’re an eCommerce business looking to thrive in today’s digital landscape, then it’s essential to take a proactive approach to digital transformation. By embracing new technologies and adopting innovative strategies, you can stay ahead of the competition and provide your customers with a seamless and engaging online shopping experience as well. So, what are you waiting for? Start your digital transformation journey today and see the benefits for yourself!