Setting up an ecommerce solutions store or an online shopping portal does not declare that the things are over; rather the movie has just begun. Now it’s the time to build a customer database by increasing customer conversions and generating more traffic. The Things are not like slice of cake as they seem to be. An ecommerce provider faces various challenges while his online journey. Here are top 5 challenges faced by the providers and solutions on how to overcome that.

  1. Customer Retention

Giving way to new customer by offering lucrative deals is far much easier than retaining the old ones. With the coming of major retail giants such as Amazon, Flipkart and EBay who keep on announcing occasional wardrobe sales makes the competition further stiff to hold back your existing customers.

Solution: The store owner must keep going some loyalty bonus schemes or cashbacks for the existing customers in order to keep the things going. Another way around can be promotional via social media platforms or referral schemes which will not only encourage participation of existing customers but will increase visitor count as well.

  1. Competition with Bigger Giants

The main issue for the new ecommerce providers comes regarding the shipping and delivery delays. The established e-retailers or manufacturers have courier service worldwide along with warehouses in almost every major city. This makes the delivery process to be completed in 1-2 days with almost negligible to zero shipping charges.

Solution: The ecommerce provider needs to increase their inventory and warehouses across the country so as to expedite the shipping with zero shipping charges.

  1. Returns and Refunds

The general trend has been seen that users prefer the online sellers which offer hassle free and speedier returns. The additional cost of logistics and return shipping has to be borne by the provider itself. He is at a loss ultimately.

Solution: You must not hide return policy from your users. Be clear and use simple English in explain the policy. Clearly mention the return period and the reasons on which the product can be returned. Offer good service, the users will definitely appreciate.

  1. User Verification & Authentication

Till now, all the online portals or the ecommerce providers cannot guarantee regarding the authentication of the user. It may be possible that the user may refuse regarding the order which is placed using “Cash on Delivery”. This may be one of the reasons contributing in revenue loss for the e-commerce company.

Solution: The risk involving COD cannot be denied but still can be reduced. The KYC of the user must be completed and the email and phone number must be verified. This will substantially reduce the chances of product refusal.

  1. Generation of more Traffic

Getting right type of traffic is a big challenge. Ecommerce providers generally follow a single channel for marketing. The provider should understand that right kind of digital marketing is the key to success of the online portal.

Solution: Ask your ecommerce solutions provider regarding other modes of digital marketing such as PPC ads, affiliate links, subscription emails and social media campaigns. This will definitely improve your SEO as well as increase your conversion rates.

The Final Word
Apart from these problems, some things are in the hand of the ecommerce provider such as giving proper descriptions of the products, checking the product quality before dispatch and proper coordination with your courier partners. Take proper backup and update your website regularly to avoid any technical failures. Surviving in this e-world is a challenging task and by following these solutions, no-one can stop you in becoming invincible.