Statista data shows that just over 80% of the US population will be buying things online by 2025, and experts expect market growth of more than 13%. This article addresses the most common challenges in e-commerce and failsafe ways to overcome them and find success.
1. Content creation
Creating appealing content that converts emerges as the primary challenge. You can grow credibility by offering knowledge and expertise through blogs, e-books, videos, infographics, etc. You can address any questions your target group might have about using your product through a blog or vlog.
To efficiently manage your social media presence, it's essential to schedule LinkedIn posts in advance to maintain consistency and engagement with your audience.
Guest blogs on relevant LinkedIn or Meta groups will improve your brand's reputation as an industry leader. What's more, you can get backlinks to your site this way.
2. The competition
E-commerce is notoriously competitive. Businesses stand out by offering a unique, affordable product or targeting a more limited group of customers. Consider express delivery, free shipping, or a time-saving return policy.
Stay ahead by checking other platforms' new products, services, reviews, and marketing strategies. You'll get a grasp of what's working and what you can undertake to outdo your competitor.
3. Making a website
The website is the core of any online business. It should be intuitive, attractive, and well-optimized. As you set out to make a website, utilize a website builder that supports different payment methods, shopping carts, and other typical e-commerce elements.
Depending on the CMS you choose, you will need to ensure it caters to all customers. For example, if you use Shopify, you will need to invest in a Shopify accessibility app.
Your domain name should match your company's name and be memorable. Describe your products or services clearly and use quality, high-resolution images. Google Page Speed Insights will provide quick loading.
Finally, test the ease of purchase and overall navigation by establishing how much time finding a product takes.
4. Choosing a business model
Selecting the most suitable business model is essential. Your model will determine how your platform sells services or products. There are four models to choose from: Business to Business (B2B), Consumer to Business (C2B), Business to Consumer (B2C), and Customer to Customer (C2C).
B2B - Business to Business
This model might involve more prolonged decision-making processes, but it offers the benefits of more recurrent purchases and larger ticket values on orders. Examples of this model include clothes, semiconductors, manufacturing materials, and vehicle parts.
C2B - Customer to Business
The second model offers the advantage of low-cost operations. You don't have to invest to get started, including in customer service, but high-volume traffic is required. Influencer or affiliate marketing are examples.
B2C - Business to Consumer
Decisions take little time, and you sell the product or service directly to the end user. Social media campaigns support this model well. Examples of such businesses include groceries, clothing, and gym memberships.
C2C - Customer to Customer
Finally, examples of this model are eBay, Craigslist, and most other online marketplaces. The model involves the exchange of goods and services. You make money by charging listing or transaction fees.
When choosing a business model, consider what you're selling, your customer's location, and your delivery method. If you're selling raw materials for manufacturing devices, a B2B business model might be the most suitable. On the other hand, the C2B model is best if you are offering freelancer services.
5. Guaranteeing data security
E-commerce sites face many threats, most commonly phishing, stolen passwords, and credit card data breaches. Any of these will cause customers to lose trust and cost you money.
Check your website builder's safety measures, especially the most basic one, an SSL certificate. Use a reliable and trustworthy payment processor like Stripe or PayPal. Encourage your users to create strong passwords and always update your apps and software on time.
6. Knowing the must-have tools
An e-commerce platform requires more specific tools. The best ones reduce the risk of human error, automate repetitive tasks, and let you focus on high-priority ones. The most successful e-commerce businesses use content management systems like Joomla and WordPress to ensure consistency.
Consider Expandly, Zoho, or another inventory management tool if you plan to launch on eBay and Amazon or your website builder doesn't have such a tool.
E-commerce sites need email marketing and social media marketing tools, accounting tools, chat tools, and a payment processor. Mailchimp is a leading email marketing tool that is free for up to 500 users. You can use Buffer for social media marketing; it's free for up to three channels. Wave Accounting is free, and Zoho's bookkeeping tool is free for companies with an annual turnover of less than $50,000.
Regarding payment processors, Stripe is a better deal than PayPal, with fees of 2.9% compared to 3.49%. The charge per transaction is also lower: + $0.30 compared to $0.49.
