Problems and Future of E-Commerce?
In the near future it is believed that e-commerce is likely to account for about 15% of the total specialty sales in North America and 23% in China. This will in turn influence the digital retail by about 60%.
A gradual and consistent growth has been noticed over the past years in e-commerce sales. E-commerce is one of the most known activities done online. According to Statista, (2019) it is projected that the sales are likely to increase to 4.5 trillion by 2021 from 1.3 trillion in 2014. This implies that the growth will be as three times over a span of 7 years which is a massive growth.
Despite the fact that online shopping is one of the most online activities it’s is not evenly distributed over the regions. As the online shopping becomes more popular, more customers are brought on board. The increase in the growth is due to a number of different factors. The major factor that has led to increase in the number of online shopping is the comfort that it provides. Another factor is trust and improved website experience. Most people trust sellers online. Gone are the days when people feared purchasing their products online. Online sales are growing rapidly and majorly due to the comfort that it provides.
Here are some of the problems faced by e-commerce.
Absence of digital verification and authentication
Many a times the portal is unable to identify the customer when they sign up on the website and this prevent the information entered. It’s not clear whether the customer’s information is genuine or not. A time customer might use fake or invalid phone numbers or address and this can lead to serious loss.
Delivering on omnichannel customer experience
As presented by ecomdash, any business that does not move toward multiple directional channels is likely to be out done by competitors. In the present age, customers can reach to online sellers through various means that include but not limited to contacting your agent, leaving a message on social page, live chart and visiting the website.
Old way of marketing
The major reason why most e-commerce are not doing well is that they are still clung to the past and traditional ways of doing their sales and marketing. Ironically, some of them do not have a clue on customers’ behaviors, data and buying pattern.
Neglect of shopping cart
Abandoning of shopping cart is one of the most serious problems. This problem can also affect even huge e-commerce shops. A good example for this case is the great loss experienced by brick and mortar Nordstrom when they abandoned shopping cart. They were forced to come up with a two-step process of checking out to replace the tedious and bug filled process which was causing customers to run away.
Maintaining customer loyalty
Despite having a good looking website, if there is no trust and loyalty, your business is likely to suffer serious issues. Customer loyalty and trust is very essential for the success of any business. Massive effort is required to get and maintain new customers. In e-commerce, sellers and buyers do not know each other and this is one of the major challenges that contribute to lack of loyalty and trust. To compensate for this much effort must be put in. customers are normally denied that chance of face to face transaction but through multiple transactions with time, loyalty and trust can be built.
Security threats can cause a lot of damages. Many a times we hear of cases of fraudsters attacking web host servers by posting spams and introducing viruses into the website. These fraudsters can gain access to clients’ crucial information such as credit details and phone numbers among other information.
In a nutshell, there is still more to be worked on besides the former challenges like supply chain management, lack of skilled labor, technology application among others.
Solutions and trends
Bringing Blockchain and AI application in to E-commerce
1. Role of Blockchain Application
Method of payment
The mode of payment used within e-commerce are not very perfect. Using platforms such as PayPal and Skrill is not a perfect solution because they are not entirely secure neither is they the fastest. There is great need to work on the payment approach used in e-commerce. It was projected that the digital transaction value is to rise by 21.5%annually. This means that there is a greater need to implement other modes of payments to manage such voluminous payments.
Cost effective transactions
Blockchian transactions are fee-free which an added advantage is. Small online retailers can take advantage over this. Through the use of such readymade solutions, supply chain parties can enjoy these great benefits;
Consumers pay lower fees because it is fee-free.
Sellers have their digital stores as an asset and their ownership records are kept on blockchain.
Through the use of blockchain a retailer can easily generate whitelist that will cover all trusted customers from all corners of the world. This will help in detecting frauds and to eliminate false positives.
Sustainable supply chain management
The capacities of blockchain e-commerce are not limited to online payments. The technology can be used on a larger scale in any multi-step transaction that includes supply chain management.
Through the use of blockchain supply chain solution, it’s easy for e-commerce to achieve a desirable level of transparency. This means that customers have total control over the products as there is transparency, they can trace the status of their products. Sellers on the other side can monitor the movement of the products, detect and mitigate the impending dangers.
2. Role of artificial intelligence
According to BusinessWire (2018), the global expenditure on artificial Intelligence is projected to rise from 2 billion to 7.3 billion per annum by 2020. This is so because retailers are targeting new avenues so as to increase the personalization of the customer experience. The research proves that retailers are ready and willingly to invest more in tools that will elevate their services to their customers and to provide them with the best advantages. The tools in question include but are not limited to automated marketing platforms fully equipped to generate timely offers and chatbots that gives instant response to customer queries. Al will also be very useful in other areas such as optimized pricing and discounts.
The role of Artificial Intelligence will grow stronger in the future as retailer’s put more of their investments in areas of improving customer services. This will eventually solve more problems and answer the question on how retailers can improve customer services. It’s therefore very important for retailers to invest in AI. In line with the trend, we are glad to present to you BBLink platform; this is a great platform that was created to outdo all the barriers and difficulties. The Best Buy Link is a revolution platform that combines Artificial Intelligence, Affiliate, blockchain 3.0 and e-commerce.
With the use of the Blockchain, BBlink will be the answer for all retailers. They will only require to major in what they do well in production. Otherwise, BBLink will manage the marketing part and the global development of the company’s goods.
With our promotion system, BBLink builds an effective platform for business owners and marketers. With our sharing revenue design, your online revenue will be supported and pushed to your expectations.
Also, BBLink deals with trust and transparency matters between the clients and business owners by building all the following excellent features :
a) Advertising network
b) Delivery and Payment
c) Affiliate program
d) Loyalty awards partners plan
BBLink is aiming at providing ultimate solution to all retailers and it also focuses on making their work easier. BBLink takes care of the marketing aspect and global expansion to all the companies. Through our advertising system, BBLink creates a good platform for both business owners as well as marketers.
BBLink established the opening to make your label thrive globally in the easiest means!