In the era of the internet revolution, with more businesses setting up an online presence. The shift towards digital buying and selling is obviously the way forward. The biggest star of the show is the E-commerce industry.
Online businesses and specifically e-commerce have seen exponential growth in the last few years. Projected to surpass $600 billion in sales by the year 2019 according to statistic. As with any business online or not, challenges are faced by all. This includes e-commerce as well, whether it’s setting up the scope of your business, website maintenance, kyc compliance, sales, and support.
Let’s take a look at some crucial problems faced by online businesses highlighted below:
Lack of Identity Verification – as these businesses are set up online, there is no physical presence of a person involved and thus no in-person verification. Likewise, businesses have yet to set up digital identity verification for KYC compliance for their business. The absence of which not only makes the platform more prone to fraud through charge-backs and potentially detrimental fraudulent transactions.
Customer Retention – in a highly contested market, everyone is out to have a piece of the pie. While there is still something to have. Businesses are not performing enough research into customer needs and driving factors. The absence of such information and market analysis in trends and purchase patterns leads to customer losses.
Data Security and Protection – online businesses hold PII information regarding customers, that also include transaction information. All of these elements are a potential risk, considering if gotten access to through improper means. Businesses are challenged to keep themselves secure and protected through best internal practices and technological upgrades where ever necessary.
Customer Service Queries – no business is spotless and customer queries are a part of the business. Customer support plays a crucial role in order to ensure the customers remain happy. However, regular customer queries regarding trifling matters are not only a nuisance but also frustrating for the employees to handle. Backlogging real queries and customer complaints to reach to a representative to be solved timely.
Maintaining Services alongside Competitors – is not only difficult but also challenging on a day to day basis. Online businesses are to worry about delivering services and compete alongside well-established businesses. There is a constant battle on the digital turf for the next best services, offers and any factor that can be leveraged for a competitive advantage.
Targetting Quality Leads – Digitally they are all after traffic, but not all traffic means good traffic. Not all good traffic translates into quality leads and not all quality leads convert to paying customers. Do you under the complexity of the sales funnel and long months of channeling and naturing customers towards a purchase, especially SaaS-based businesses.
Online businesses are quite mainstream now. Considering the lucrative market of digital buying and selling, the charisma to reach out to thousands and millions instantly drives these businesses. However, upcoming challenges like KYC compliance and data protection regulations work as an anchor, slowing down the rapid rise. Where possible, providers in the market today should be enlisted for help.
