The ecommerce industry has grown significantly over the last few years. However, the past year proved to be extremely important as ecommerce grew by 46% in 2020.
On the flip side, online commerce saw an increase in competition as well. In the USA alone, more than 85,000 new businesses launched their online stores for the first time to cope with the social lockdown.
Given the increasing popularity of online shopping, more and more businesses are integrating online retail in their business model to remain competitive. However, as with any new venture, obstacles occur.
If you have an ecommerce site and are looking for the best advice to overcome common growth obstacles, you’ve come to the right place. The foundation of a successful ecommerce site is to focus on continuous growth.
Many people launch an online store to become financially stable. Although it might sound like an easy goal, it’s anything but that. If you’re not implementing strategies that boost revenue, your ecommerce site is unlikely to succeed. It’s the hard truth that you need to accept.
You have to move forward to stay relevant. Continue reading to find out how you can overcome the 4 most common obstacles to ecommerce growth.
1. Generating Traffic to Increase Conversions
One of the biggest obstacles to ecommerce growth is attracting quality traffic. What is quality traffic? It includes consumers who make the purchase or convert after arriving at your online store.
At 2.27%, the global conversion rate is abysmally low. For businesses, this means that only about 3% of their total traffic actually buys something from the store. The rest of the 97% window shop. Here are three ways to overcome this obstacle:
- Create a Website That Aids Conversion: For an online business, a website is akin to the storefront. If the user is able to navigate the website easily, they’re more likely to buy. A clean, searchable, and aesthetically pleasing website increases conversion.
- Invest in Content: Bill Gates coined the term Content is King in 1996, and since then the phrase has been used and reused to tatters, but for good reason. Content is indeed one of the most vital elements for conversion; whether text or graphic, static or motion, content plays a big role in attracting, retaining, and converting consumers. Therefore, invest in creating engaging taglines, product descriptions, high-quality images, and informative videos. Whether you’re running a carpet cleaning business or a clothing store, visual quality is equally important. To ensure visual quality, you must use high-quality pictures and videos to present your products.
- Nurture Your Leads: The time for hard selling is long gone. This decade is all about nurturing your customers to help them convert and keep coming back. Identify your consumer’s pain points and provide solutions. Invest in personalized email marketing strategies, such as drip marketing to nurture leads by engaging with your consumers and offering them value.
2. Failing to Understand User Behavior
User behavior is something that most ecommerce sites struggle to understand. A great way to understand user behavior is by building data that covers how visitors interact with the site. It’ll allow you to identify areas where the user interface falls short.
There are many apps that you can use to track user sessions. Hotjar is a great example as it offers invaluable information about the UI conversion roadblocks so that you can start improving them.
Businesses must analyze the way consumers shop online to understand why they leave the site and why they don’t make a purchase. An analysis of user behavior will allow you to identify the root cause of user dissatisfaction so you can address it effectively.
Some examples are:
- Consumers don’t Purchase Because of Shipping Charges > Offer Free Shipping
- The Bounce Rate is High from the Checkout Page > Make the Checkout Page Simple
- Sales are Low > Offer Discounts, Bundle Pricing, Giveaways, etc.
- Consumers don’t purchase because they don’t have sufficient product information > offer live chat
3. Wasting Time on Monotonous Work
Automation is the name of the game. If you’re still handling all the routine admin work, you’re wasting a ton of time. Gone are the days when you needed to spend money on an army of staff for dealing with customer interaction, research, and other admin work.
Today, automation opens up a world of possibilities. You can automate just about anything. Rather than wasting time doing tasks that don’t add value, you should use software or applications to handle them. It’ll save you time so you can handle more important matters.
There’s bound to be an app that’ll handle the busy work for you. Therefore, you should look up apps for handling time-sensitive tasks. Here are a couple of apps that can help you overcome this obstacle:
- Inventory Management: Inventory management is a boring, but essential task. keeping track of items manually takes a lot of time and energy, which leaves less time for strategic decisions. Moreover, manual inventory management is also prone to more errors. You may use inventory management software and apps to reduce the chances of error and free up your time. With such apps, you’ll be able to handle sales of popular products. In addition to inventory management, you can even use these tools for automatic inventory monitoring and reporting to analyze your top-selling products.
- Software Integration: Now, if your online store has grown considerably over a short period of time, the chances are that you’re using various software tools. To save yourself the trouble, consider using a tool like Zapier. It helps simplify how your software tools interact with one another.
4. Failing to Build Brand Reputation
Your main goal should be to strive for 25 to 30 percent of sales from returning customers. Since attracting new customers is more costly than retaining existing ones, you need to focus on boosting brand loyalty.
Furthermore, loyal customers are more likely to recommend your business to others as compared to new customers. It should be reason enough to protect and improve your reputation.
Customers today use different channels to engage with businesses. If your ecommerce store is not promoted across all channels such as email, social media, mobile, and web, customers will not be as loyal to your brand as you’d like.
The best way to improve your reputation is by investing in a multichannel online presence. An integrated communication strategy will help you achieve this. All customers have a preferred communication channel, so you need to ensure that you provide service through every channel.
Overcome Obstacles to Ecommerce Growth
As the ecommerce industry continues to grow, now is the time to take your site to the next level. Take advantage of the insights provided above and implement the perfect ecommerce growth strategy. And while ecommerce expansion doesn’t happen in a day, it shouldn’t discourage you from reaching for that goal. To help you start this journey, we created a list of ecommerce growth tips that you can implement and begin the next step in expanding your business.
About the Author – Shoaib provides ghostwriting and copywriting services. His educational background in the technical field and business studies helps him in tackling topics ranging from career and business productivity to web development and digital marketing. He occasionally writes articles for carpet cleaning.