After the COVID-19 pandemic, eCommerce is rapidly growing. A digital marketing speaker Hong Kong notes that around 20.4% of today’s global retail sales come from eCommerce. For a social media agency Hong Kong, staying on top of eCommerce is no longer an option. Rather, it is a necessity. Many brands and businesses are in for the race on eCommerce innovation. According to a video marketing agency Hong Kong, the competition brought about many bottlenecks and problems. So, the key to success is to get to know the most common eCommerce problems and how to solve them.
WHAT IS E-COMMERCE?
First, let us define eCommerce. It is the shortened form of electronic commerce. The model allows brands and businesses to sell goods and services online or via the Internet. It is through Google adverts, social media ads, video ads, etc., diverted into a selling platform. eCommerce has four market segments – desktop users, smartphone users, tablet users, and other device users. People can purchase almost anything on eCommerce today, including books, consumer goods, financial services, music, plane tickets, stock investments, etc.
During the COVID-19 pandemic, eCommerce became a substitute for physical stores. As the world goes back to the new normal, both eCommerce and physical stores are synced to drive revenue and sales among brands and businesses. eCommerce has significantly helped brands and businesses establish a global presence. It levels up the competition between small, medium-scale, and large businesses.
COMMON E-COMMERCE PROBLEMS
Below, we have listed the most common eCommerce problems and some simple solutions for them.
Data shows that 29% of online shoppers abandon their cart because of high shipping costs. To resolve such an eCommerce problem, try to negotiate for free or lower shipping fees on bulk or large orders. Encourage using the carriers’ packaging to avoid extra charges.
Another reason for cart abandonment is the costly credit card fees. The average credit card fees for eCommerce stores are between 2.3% to 2.5%. To solve this eCommerce problem, consider offering cheaper online payment options like PayPal, Stripe, etc.
Handling Refunds and Returns
Every brand or business should adopt a refund and return policy to promote consumer rights. It is the eCommerce store’s rules on how purchased goods and services can be refunded or returned. It covers the valid reasons for a retailer to accept returns for refunds or replacements.
Allowing more time for returns can build trust and increase sales, as it puts more confidence on the side of the buyers. Including a link to the policies at the bottom and top of your eCommerce website can make everything simple. More than 66% of modern consumers read the refund and return policy before making a purchase.
Poor Conversion Rates
The conversion rate on eCommerce is the number of sales over the number of visitors. For example, if an eCommerce store gets 50 sales out of 500 visitors, the conversion rate is 50 divided by 200 or 0.1. If you convert it in percentage, that is 10%. The average eCommerce conversion rate today is around 2% to 3%. There are many ways to avoid poor conversion rates.
- First, ensure that the “Add to Cart” or “Checkout” buttons are easy to find and easy to use.
- Second, be honest. If the product is out of stock, let your customers know.
- Third, offer multiple payment and shipping options. Modern customers want the flexibility of having the payment and shipping methods they prefer.
Pro-Tip: Product videos can easily help customers discover its features and uniqueness. So as much as possible, upload product videos.