Emerging Trends and Problems of E-Commerce

Online Shopping Websites .

AuthorMiss Priya Sahni ( Research Scholar )

Rani Durgavati Vishwavidyalaya Jabalpur (M.P)

Co -AuthorDr. Ashish Mishra ( Research Supervisor ) Rani Durgavati Vishwavidyalaya Jabalpur

Abstract . E-commerce refers to commercial transactions conducted online . E-commerce has ruled over the entire traditional forms and ways of doing trading in the market . Secondary Method of data collection has been adopted. The paper aims to understand the emerging challenges according to the changing trends in the market ,customer requirements and preferences . Concluding with the suggestions on how to compete in the competitive E-market .

Keywords E- Commerce ,business , Transaction and customer .

Introduction E-Commerce or Electronic Commerce means buying and selling of goods, products, or services over the internet. This means that whenever we buy and sell something using the Internet, we are

involved in ecommerce. E-commerce is also known as internet commerce. These services provided online over the internet network. Transaction of money, funds, and data are also considered as E-commerce. E-commerce is a popular term for electronic commerce or even internet commerce. The name is self-explanatory, it is the meeting of buyers and sellers on the internet. This involves the transaction of goods and services, the transfer of funds and the exchange of data. Examples of E-Commerce Amazon ,Flipkart ,eBay ,club factory ,shein ,Olx ,Quikr.

Objective of the Study 1) To understand the concept and evolution of e-commerce . 2) To know the major practices involved in e-commerce. 3) To know the problems faced in e-commerce . 4) To give suggestions for solving problems .

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Research Methodology The secondary method of data collection has been adopted. For the purpose ,review of data has been done from published research papers and website .

Review of literature .

• Lawal.Ahmed , Ogbu Richard, (2015) ,”E-Commerce Problems and Prospects in Nigeria “,This paper examines the challenges that is hampering the growth of e-commerce in Nigeria, it will equally survey the opportunities offered by ecommerce. They concluded Challenges like, consumer’s confusion, apprehension and risk need

to be identified ,understood and alleviated. E–Commerce provides

tremendous opportunities indifferent areas but it requires careful application for consumer issues.

• D.Dhanjal .Satvinder,U.Daru .Mahesh ,(2015 ), titled “Future Prospects and challenges of

E-Commerce in India” Their paper describe s about the Future prospects of ecommerce in India and as well the challenges. The future of E - commerce is bright and there is no downward trend but only upward trend . E - commerce it is not only at national market but also at global market. Its creates new opportunities for education , business , academics so to take the benefit of the opportunities it is necessary that the issues and the problems should be studied and steps should be taken to resolve them.

• Tripathi.Prakash ,khan.Faisal,(2016) titled “Problem and prospects of E- Commerce in

India ,their study was applied review with exploratory in nature .They concluded that E - trade was at developing pattern in Indian economy with the post monetary changes time. The transformation in the IT area has been instrumental being developed of online business. Internet business offers many advantages to the different partners. These advantages are cost viability, fast examination shopping, better client benefit, higher business edges coming about shape economy in business operations, data sparing and learning market improvement and so forth. They concluded with a few hindrances in the advancement of web based business, for example, PC introductory venture, innovative issues, PC sick education, lawful bothers, and unfriendly outlook of customers, protection and security issues.

• Iqbal .Javed .Qazi Ahmad (2017 ),Titled “Challenges and prospects of E-Commerce in India “,Their research was based on review of literature and concluded with highlights certain sectors that tend to grow in near future with regard to E - commerce like, hardware industry, electronics, tour , and travels. E - commerce puts forth many benefits to its users such as effective customer relationships, effective shopping decisions, effective cost analysis and acts as a source of information now a days .

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Evolution and Growth Of E- Commerce It was August 11, and the year was 1994. Around noon that day, Phil Brandenberger of

Philadelphia logged into his computer and used his credit card to buy Sting’s “Ten Summoners’

Tales” for $12.48 plus shipping. That story may not sound too exciting today, but at that time,

this particular transaction made history. Why? Because it was the first time that encryption

technology was used to enable an internet purchase. Many consider that moment as the first

“true” ecommerce transaction. Needless to say, ecommerce has grown by leaps and bounds

since then. Big Commerce cites that ecommerce is growing 23% year-over-year, and according

to eMarkerter, global ecommerce sales are expected to top $27 trillion in 2020 and that’s just

statistics for the retail sector. That’s a lot of growth (and money!), which is why if you’re

interested in doing business online, you need to know the ins and outs of the ecommerce

industry.

Classification of ecommerce according to the parties involved These typically include:

1. Business to consumer (B2C) – Transactions happen between businesses and

consumers. In B2C ecommerce, businesses are the ones selling products or

services to end-users (i.e. consumers).Online retail typically works on a B2C model. Retailers with online stores such as Walmart, Macy’s, and IKEA are all examples of businesses that engage in B2C ecommerce.

2. Business to business (B2B) – As its name states, B2B ecommerce pertains to

transactions conducted between two businesses. Any company whose

customers are other businesses operate on a B2B model. Examples include Xero, an online accounting software for small businesses, ADP, a payroll processing company, and Square, a payments solution for SMBs.

3 Consumer to business (C2B) – Consumer to business ecommerce happens when a

consumer sells or contributes monetary value to a business. Many

crowdsourcing campaigns fall under C2B ecommerce. Soma, a business that sells eco-friendly water filters is one example of a company that engaged in B2C ecommerce. Back in 2012, Soma launched a Kickstarter campaign to fund the manufacturing of their product. The project was successful, and Soma went on to raise $147,444.

4 Consumer to consumer (C2C) – As you might have guessed, C2C ecommerce

happens when something is bought and sold between two consumers. C2C

commonly takes place on online marketplaces such as eBay, in which one individual sells a product or service to another.

5 Government to business (G2B) – G2C transactions take place when a company

pays for government goods, services, or fees online. Examples could be a

business paying for taxes using the Internet. 6 Business to government (B2G) – When a government entity uses the Internet to

purchases goods or services from a business, the transaction may fall under B2G ecommerce. Let’s say a city or town hires a web design firm to update its

website. This type of deal may be considered a form of B2G.

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7. Consumer to government (G2C) – Consumers can also engage in B2C ecommerce.

People paying for traffic tickets or paying for their car registration renewals online may fall under this category.

Major Practices of e-commerce on the basis of what they are selling online .

1) Stores that sell physical goods :-These are your typical online retailers. They can include apparel stores, homeware businesses, and gift shops, just to name a few. Stores that sell physical goods showcase the items online and enable shoppers to add the things they like in their virtual shopping carts. Once the transaction is complete, the store typically ships the orders to the shopper, though a growing number of retailers are implementing initiatives such as in-store pickup.

2) Service-based e-tailors :-Services can also be bought and sold online. Online consultants, educators, and freelancers are usually the ones engaging in ecommerce The buying process for services depends on the merchant. Some may allow you to purchase their services straightaway from their website or platform. An example of this comes from Fiverr.com, a freelance marketplace. People who want to buy services from Fiverr must place an order on the website before the seller delivers their services. Some service providers, on the other hand, require you to get in touch with them first (i.e. book a consultation) to determine your needs.

3) Digital products:- Ecommerce is, by nature, highly digital, so it’s no surprise that many merchants sell “e-goods” online. Common types of digital products include ebooks, online courses, software, graphics, and virtual goods. Examples of merchants that sell digital products are Shutterstock (a site that sells stock photos), Udemy (a platform for online courses), and Slack (a company that provides real-time messaging, archiving and search for teams).

The challenges e-commerce faces

1) An absence of online identity verification :-When a visitor goes to an e-commerce website

and signs up, the portal is unaware of the customer, bar the information they entered.

Whether the customer information is genuine or not remains questionable. Cash-On-

Delivery (COD) purchases using an invalid or fake phone numbers or addresses can lead to

huge revenue losses.

2) Delivering an omnichannel customer experience :- In today's world, customers can reach

out through any number of touch-points. They may visit your website, contact your agent,

leave a message on your social media page, shop from your store or contact you through a

live chat or a messaging platform. According to ecomdash, “Any business that isn’t moving

toward an omnichannel retailing strategy will likely be left behind by its online savvy

competitors.”

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3) Competitor Analysis :- In a competitive environment, others will offer the same products

and services as you. Unless you have a strategy to differentiates yourself, it is difficult to

survive.

4) Stuck in at the old school way of approach to selling :- The reason many e-commerce

companies find online selling so difficult is that they are, ironically, stuck in the past. Most

of them lack the necessary insight into customer behaviour and buying patterns, data which

can help them thrive in the current e-commerce environment.

5) Maintaining customer loyalty :-Even with the best-designed website out there, without

customer trust and loyalty, the business is bound to struggle. Creating new customers and

then maintaining them requires a massive effort. One of the reasons e-commerce companies

in particular face a challenge in building customer trust and loyalty .

6) The headache of product return and refund :-A survey by comScore and UPS, showed

63% of American consumers check the return policy before making a purchase and 48%

would shop more with retailers offering hassle-free returns. e-consumers are clearly

conscious of return and refund policies. When a product is returned, whether due to a

dissatisfied customer or damaged product, the business suffers a heavy loss in shipment

and reputation. Logistic and shipping costs have always been problematic to e commerce

sellers delivering their product for free.

7) Choosing the right technology & partners :-Some online retailers may face growth

challenges because their technology is limiting them or they’ve hired the wrong

partners/agencies to help them manage their projects. Retailers wanting to achieve growth

must be built on a good technology foundation. They must choose the right shopping cart

solution, inventory management software, email software, CRM systems, analytics and

so much more. In addition, hiring the wrong partners or agencies to help you implement

projects or oversee marketing campaigns may also limit your growth. Online retailers

must choose carefully who to work with.

8) Attracting and hiring the right people to make it all happen :- Online retailers may have

visions and aspirations but one true fact remains, they need the right people to help them

carry out their desires. Attracting the right talent is key in order to achieve desirable

online growth. Also, having the right leader plays an even bigger role.

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Suggestions

1) E- commerce store move their store to a reliable ecommerce web hosting : As a

managed cloud. A cloud is a reliable, low cost solution that let’s users maximize their

growth potential through an enhanced hosting experience.

2) Mail Server Problem :- Test your email server if it is in-house, by sending 2x more emails

of the number of orders that you expect to receive in a single day during the holiday Season.

If you have outsourced the mail server, make sure the company can auto-scale the email

server limit within a minute’s notice.

3) Payment Frauds :-Payment frauds cost ecommerce industry $4.8 billion last year alone.

Add verified payment processors to your ecommerce stores Monitor latest payment fraud

trends. Encrypt transactions and emails with confidential information

4) Look out for signs of suspicious activity :-This could take the form of particularly high

value or large orders, identify fake phone numbers and email addresses, check whether zip

codes match with the state/city. Send a verification link when a customer signs up, via text

message or email, to validate the customer is genuine. With COD purchases, an automated

call could even dial out to the customer, asking them to validate the delivery address.

5) Competitive Strategy :- Place emphasis on developing a strategy enabling you to shine

brighter than your competitors. Use social media platforms and blogs for promoting

products. Invest in promotional offers to help create more web presence and therefore more

customers.

6) Customer Loyalty :-“Businesses with customer loyalty programs, on average, are 88%

more profitable than those who do not.” Carry out research, find which products are more in

demand. Remove outdated items. Customer services that go above and beyond provide a

route to staying ahead of your competitors. Offer products in prominent marketplaces like

Amazon, eBay, etc. These e-commerce sites already have an existing network of buyers so

pitching and branding your product becomes relatively easy.

7) Segment visitors :-Visitor segmentation allows e-commerce companies to identify and

communicate with visitors based on their customer journey, past conversations,

geographical location, browsing behaviour, referral page, and much more. In turn, e-

commerce companies can anticipate customer needs, offering them a personalized service,

such as ( free delivery or promo codes ), creating a more efficient stream of conversions.

8) Shopping Cart :-Consider redesigning your shopping cart, making sure there are no bugs or

an unnecessarily long and frustrating form filling process. You must make sure the customer

is satisfied with the whole process, from ordering online to shipping. Plenty of online

retailers may be selling the same product, so you must identify competitive advantage and

nurture your customer service accordingly.

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9) Increase trust with visitors : Displaying your address, phone number, pictures of staff,

customer testimonials, and credibility badges on your website. Add a live chat option to the

website.

10) Return and Refund policy :- Return and refund are also part of great customer service, It

would be a big mistake to forget that. The best thing you can do is build a strong returns

policy. Consider the following points when designing it be transparent. Never hide your

policy. Use plain English, understandable to everyone. Not all your customers will be clued

up with the terminology. Try avoiding phrases like, “you must” ‘’and “you are required”,

which may seem harsh and put off potential customers. Educate staff about your return

policy, so they can assist customers effectively.

11) Cost of Mistake :- Be prepared to face the cost of your mistakes. If the product is shipped

wrong, take extra effort to keep the customer happy.

References :-

1) Apte N.K. - E - commerce Shopping Online and Adoption of Safety Measures .

2) Dr. Javed Iqbal. “Challenges and Prospects of E - Commerce in India.” International

Journal of Engineering Research and Applications (IJERA) , vol. 7, no. 10, 2017, pp. 14 –

16 .

3) Dr Prakash M Herekar “E commerce In india Problems and Prospects International E journal of on going research in management and IT . ISSN 2320 0065 .

4) Ahmed Lawal ,Richard Chukwu Ogbu .”E-Commerce problems and Prospects in Nigeria

“,International journal of scientific engineering and applied science (USEAS),-Volume -1 ,Isssue -3 ,June 2015 ,ISSN -2395-3470 .

5) https://ecommerceguide.com/guides/what-is-ecommerce/

6) https://www.toppr.com/guides/business-environment/emerging-trends-in-

business/electronic-commerce/

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