Hello Mates, I hope you all are fine, I am new on PEAKD and this is my first post, My name is Shahab Khan and i am a computer science student. Need support of you guys :)
MAIN ISSUES RELATED TO E-COMMERCE:
Now days many applications of e-commerce are affecting businesses through internet. But as e-commerce is increasing day by day so there is a continuous increase in issues and problems which are caused because of e-commerce. Some of those issues and problems are mentioned below with examples.
CAPTURING AND RETAINING NEW CUSTOMERS:
Capturing and attracting the new customers is more difficult and hard than attracting the old customers, because the old one knows about the products and deals but it’s hard to make people’s perspective about product in beginning.
For example: An commerce website “II-internet” introduced makeup products on their website so it was hard and expensive for them to attract new customers because they have to pay for its marketing and promotions.
People are paying a big and huge amount for attracting customers towards their online shop. Most of the people are scared of shopping online because they are not aware of product’s quality. For example: Daraz is one the most famous e-commerce website, The major problem it was facing was that people weren’t sure about its product quality that’s why people were avoiding shopping online and Daraz took a lot time to achieve a better quality and satisfy customers.
IDENTITY VERIFICATION ISSUE:
Another big issue which an e-commerce website retailer faces identity verification, the customer goes to an e-commerce webpage login in and can enter fake details and can make payment through fake means too by hacking someone’s card or by hacking that e-commerce website.
As well as cash on delivery purchases using fake address and phone numbers can lead to some big losses too.
For Example: we can order food through an online website “Food panda”. But food panda’s retailers are not aware of this that customer is entering correct phone number or address or not. Sometimes people do scam like this by ordering food from fake numbers and invalid addresses and this results in wastage of food and wastage of fuel of delivery boys.
ANALYSIS OF COMPETITOR:
Another big problem in an e-commerce website is the competitor analysis because your competitor is also offering same product as yours so it is quite difficult for an e-commerce business in this situation because you have to improve your quality and reduce price to make your product attractive for people so that people could attract towards your product instead of competitor’s product.
For Example: The big example of competitor analysis is Uber and Careem, in beginning Uber was enjoying market with great comfort but when Careem came in market it creates hurdles for Uber because Careem started capturing Uber’s customers.
FOLLOWING OLD APPROACHES:
Another big reason the retailers of online businesses faces hurdles and find it difficult is because they are still following old school tactics and techniques. If they are using technology to expand their business online so it also necessary for them to use latest approaches to sell their product online.
Example: One of an online shopping brand was using old technology and techniques as their payment option was only Cash On Delivery while now many people want to pay from their cards so that’s why they face many hurdles because people didn’t prefer to make purchase from their site.
ISSUE OF PRODUCT RETURN:
One of the biggest issue that most of e-commerce business face is product return and refund. Sometime product has fault so people return it but in few cases people also return it when they don’t like it or by using it 5 to 6 days and then replace it with a new one.
According to a survey 68 percent of American people first check return policy before making an online purchase. Whenever a product is returned to retailer because of its fault so the company suffers a big loss because of it because of shipment charges and other expenses.
For Example: In 2013 Ali baba express an international online shopping platform suffers a loss of two million because of refund and returned products from their customers.