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Turning e-commerce logistics challenges into an opportunity

E-commerce transactions have witnessed a massive shift from luxury goods to essential goods during the pandemic. Moreover, the changes brought by COVID to the e-commerce business are likely to continue in the future. For example, the buying habits learned during the pandemic may continue to exist if the world faces yet another wave of disruption. Therefore, it created a long-lasting impact in the industry that proves to be an accelerator for e-commerce firms. The unprecedented expansion of e-commerce lessened physical store interactions that significantly impacted offline stores.
A Booming Industry The e-commerce industry has grown exponentially, with total e-commerce sales expected to reach $1.065 trillion by 2023. E-commerce business owners have unique challenges with rules & regulations to follow, and cybersecurity is a top priority to ensure all data stored online is protected.

Although it provides a huge potential for growth & success, there are several e-commerce issues that retailers need to deal with to make it in today’s globally competitive market. So, if you own a small e business yourself or a big company, you might want to read this very carefully! Below are the 5 biggest challenges e-commerce companies face and simple solutions to overcome them.

1. The growth of Cross Border trade

There are a few reasons why the growth of cross-border trade is an e-commerce challenge. One reason is that it can be difficult to ship products across borders and ensure that they arrive in good condition. Additionally, different countries have different customs regulations, which can make it difficult to send products from one country to another. Another reason which makes cross-border trade an e-commerce challenge is the language barrier. This poses a challenge for some e-commerce platforms that only offer support in English, which can be a problem for buyers and sellers to communicate properly. Additionally, different countries have different currencies, which can make it difficult for buyers and sellers to complete transactions successfully. Finally, the growth of cross-border trade presents a challenge because of the different payment methods that are used in different countries. This can make it difficult for buyers and sellers to find a payment method that works for them and can lead to delays in transactions.

2. Needing to fulfill orders in a timely fashion

A successful shipping and fulfillment strategy is imperative to an e-commerce business. After all, the experience doesn’t stop after the customer checks out. And in fact, a poor delivery experience can stick in the memories of shoppers.

In fact, 87% of consumers say the shipping and delivery experience directly impacts their decision to shop with the merchant again. Additionally, when it comes to having a positive experience with shipping, 63% say it needs to be fast and 66% require a free option.

What you sell and your overall business model will inform your fulfillment strategy. If you dropship products, you will likely have a more hands-off approach and shipping will be handled by a third-party. All businesses can potentially leverage a third-party shipping solution to handle fulfillment.

3. Impact of E-commerce on Supply Chain

The impact of e-commerce on the supply chain can be understood as an increase in volatility. That is so because anyone can order anything at any time from anywhere. As there is no certainty as to which product would start trending, it is hard for business owners to predict the demand and supply of goods. Additionally, the search engine algorithm disrupts the brand’s visibility.

For example, there was an unexpected surge in demand for consumer-packaged goods used in hospitals for COVID-19 patients during the pandemic. Brands did not see this coming and were unaware of the sudden demand. Similarly, it created volatility in the demand and supply of several other essential goods. Therefore, due to unpredictability in consumer demands, the shift to online ordering has caused difficulty in managing inventory.

Furthermore, in the global supply chain, businesses source the goods internationally. This process includes buying the materials, shipping them, and managing the foreign goods domestically. As consumers expect quick deliveries of their orders, the supply chain management must be in proper control.

4. The impact of artificial intelligence and machine learning

Artificial intelligence (AI) and machine learning (ML) are having a huge impact on ecommerce. They are helping to improve the customer experience by making it easier for shoppers to find what they’re looking for, and helping businesses to make better decisions about what products to stock and how to price them.

Businesses are also using AI and ML to personalize the shopping experience for each customer, by analyzing their past purchases and predicting what they might want to buy in the future. This helps businesses to increase sales and keep customers coming back.

Overall, AI and ML are making e-commerce more efficient and more personalized, which is great news for shoppers and businesses alike!

his includes customized product recommendations via user-specific landing pages (dynamic text replacement is Unbounce’s unique feature) and overall understanding of customer preferences. This poses a challenge of how to keep up with the customer data and evolve along with the technology.

5.      The importance of customer experience

Customer experience is key in e-commerce because it can make or break a business. According to Hiver’s research, 66% of consumers think a company’s customer service reputation is a critical factor while making a purchase decision. If customers have a bad experience, they’re likely to take their business elsewhere, and it can be difficult to win them back. On the other hand, if customers have a good experience, they’re more likely to return and recommend your business to others. That’s why it’s important to focus on providing good customer service and delivering an exceptional shopping experience. Make sure your website is easy to use, your products are high quality, and your shipping times are quick. Monitor call center metrics. And be sure to respond promptly to customer inquiries and resolve any issues as quickly as possible. By providing a great customer experience, you’ll create lifelong customers who will help you grow your business. That’s why it’s a challenge to focus on providing good customer service and delivering an exceptional shopping experience. It’s important to make sure your website is easy to use, your products are high quality, and your shipping times are quick. You also need to respond promptly to customer inquiries and resolve any issues as quickly as possible in order to provide a great customer experience.

Over to you…

With the ever-changing landscape of e-commerce it,’s important for businesses to stay on top of the latest trends and challenges. By being aware of the challenges that they face and taking steps to address them, businesses can ensure that they’re prepared for whatever comes their way.

Surviving the fierce e-commerce competition requires outstanding strategies. Be prepared to address all possible e-commerce problems and focus on building a customer-centric culture. This way, you may not only address customer service issues but you may also find what makes your customers tick, and offer them an online shopping experience they'll remember.
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