Week 3
We all know that online shopping had been a very big thing nowadays.
Be it apparels, accessories, gadgets or even books. The wonders of shopping online without having to go through the hassle of crowd and shopping at one’s leisure time had been a hit for both males and females. I bet anyone of us who uses the internet on the daily basis would succumb to the novelty of online shopping.
I’ve bought books from GoodyBooks after reading almost the whole book online, minus the last chapter. However, other than that once, I refused to purchase anything online, especially clothes.
No doubt online shopping, especially of clothes offers us girls a wide variety of choice. However, I did not feel “safe” buying things which I’ve never inspect before. Moreover, I’ve heard bad stories from my friends complaining about the quality of their purchase and even seen it for myself from clothes my sister bought. Thus, these had prevented me from shopping online.
So with people like me, there are bound to be e-businesses to fail.
Now, let’s take a look at the top 10 reasons why I think e-commerce may fail.
1. Lack of Trust
Trust and credibility with your customers is important both online and offline. Security issues can deter customers and prospects from ever buying. The online environment differs from the offline environment whereby customers are required to provide full credit card details in order to purchase.
2. Poor User Interface
A user interface that is confusing or hard to navigate will deter customers and prospects and reduce repeat purchases.
3. Poor Technology
Just as a shabby, unkempt retail outlet screams poor quality, outdated technology also indicates a product/service that is behind the times. Customer-driven changes in e-commerce technology occur constantly, and online retailers are expected to keep up.
4. Lack of Transparency
Offline, customers are able to view products and services in great detail, and can approach a customer service representative with any questions. Online, information may not be readily available.
5. No Personalisation
One size does not fit all. Websites that do not provide a variety of products, prices and styles for different customer segments to increase probability of purchase - just as a shop would if was operated offline, could have limited traffic flow and target audience.
6. Poor Product/Service Offering
The online environment is highly competitive and shoppers are becoming more experienced. If you don’t deliver what you promise, or offer poor customer service, bad news will travel fast (particularly as visitors can post details of their poor online experience all over the internet almost immediately!). Lastly, and possibly most importantly, none of this will help if your product or service isn’t up to scratch. Just because you operate online doesn’t mean you should ignore product/service quality.
7. Lack of Strategic Direction
E-commerce must be supported with marketing and advertising if you want to make it part of your business as a true channel. A new store to bring in business without advertising and promotion will also not be able to generate revenue of nobody knows it exists. Your product or service is designed to satisfy the particular needs of your target segments, and marketing and advertising should reflect that. Hence “build it and they will come” is not a strategy for e-commerce success which many people overlook.
8. Payment Gateway Issues
Limited payment options and poor post-transaction communications can prevent customers and prospects from purchasing. Offline customers are provided with cash or card alternatives and a receipt for record of purchase. Similarly, online businesses that do not provide a wide range of payment options hinders one’s purchasing power and capability.
9. Failure to Manage Customers
Websites that do not differentiate the product/service offering for various target segments makes the shopping experience confusing and frustrating. Also, if customer service is not taken care of, repeat customers will be hindered.
Lastly,
10. No Incentives
It’s no secret that promotions boost sales, and often we go online looking for a bargain (the cost of sale is lower online and visitors frequently expect prices to reflect this). Hence, if a website lacks incentives, or they’re difficult to find, operators may lose business to their competitors.
Be it apparels, accessories, gadgets or even books. The wonders of shopping online without having to go through the hassle of crowd and shopping at one’s leisure time had been a hit for both males and females. I bet anyone of us who uses the internet on the daily basis would succumb to the novelty of online shopping.
I’ve bought books from GoodyBooks after reading almost the whole book online, minus the last chapter. However, other than that once, I refused to purchase anything online, especially clothes.
No doubt online shopping, especially of clothes offers us girls a wide variety of choice. However, I did not feel “safe” buying things which I’ve never inspect before. Moreover, I’ve heard bad stories from my friends complaining about the quality of their purchase and even seen it for myself from clothes my sister bought. Thus, these had prevented me from shopping online.
So with people like me, there are bound to be e-businesses to fail.
Now, let’s take a look at the top 10 reasons why I think e-commerce may fail.
1. Lack of Trust
Trust and credibility with your customers is important both online and offline. Security issues can deter customers and prospects from ever buying. The online environment differs from the offline environment whereby customers are required to provide full credit card details in order to purchase.
2. Poor User Interface
A user interface that is confusing or hard to navigate will deter customers and prospects and reduce repeat purchases.
3. Poor Technology
Just as a shabby, unkempt retail outlet screams poor quality, outdated technology also indicates a product/service that is behind the times. Customer-driven changes in e-commerce technology occur constantly, and online retailers are expected to keep up.
4. Lack of Transparency
Offline, customers are able to view products and services in great detail, and can approach a customer service representative with any questions. Online, information may not be readily available.
5. No Personalisation
One size does not fit all. Websites that do not provide a variety of products, prices and styles for different customer segments to increase probability of purchase - just as a shop would if was operated offline, could have limited traffic flow and target audience.
6. Poor Product/Service Offering
The online environment is highly competitive and shoppers are becoming more experienced. If you don’t deliver what you promise, or offer poor customer service, bad news will travel fast (particularly as visitors can post details of their poor online experience all over the internet almost immediately!). Lastly, and possibly most importantly, none of this will help if your product or service isn’t up to scratch. Just because you operate online doesn’t mean you should ignore product/service quality.
7. Lack of Strategic Direction
E-commerce must be supported with marketing and advertising if you want to make it part of your business as a true channel. A new store to bring in business without advertising and promotion will also not be able to generate revenue of nobody knows it exists. Your product or service is designed to satisfy the particular needs of your target segments, and marketing and advertising should reflect that. Hence “build it and they will come” is not a strategy for e-commerce success which many people overlook.
8. Payment Gateway Issues
Limited payment options and poor post-transaction communications can prevent customers and prospects from purchasing. Offline customers are provided with cash or card alternatives and a receipt for record of purchase. Similarly, online businesses that do not provide a wide range of payment options hinders one’s purchasing power and capability.
9. Failure to Manage Customers
Websites that do not differentiate the product/service offering for various target segments makes the shopping experience confusing and frustrating. Also, if customer service is not taken care of, repeat customers will be hindered.
Lastly,
10. No Incentives
It’s no secret that promotions boost sales, and often we go online looking for a bargain (the cost of sale is lower online and visitors frequently expect prices to reflect this). Hence, if a website lacks incentives, or they’re difficult to find, operators may lose business to their competitors.
posted by [R]yn @ 2:03 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home