The retail ecommerce market is growing at a rate of knots, accelerated by the pandemic that drove sales online because there was simply no other choice. The ripple effect of that has been multiple closures of big brands in the high street – the clothing brand Newlook was latest in the firing line with the closures of six stores, and many more will likely follow.
The result is an ever-increasingly booming retail ecommerce market, but there are some areas of the industry where businesses, particularly small ones, are failing. The latest studies show that 90% of ecommerce brands fail, and we’ve collated some of the top reasons why. Keep on reading to find out more.
Poor Customer Service And Supplier Retention
Ecommerce customers expect high levels of customer service, including fast and accurate order fulfilment, easy returns and exchanges, and responsive communication. Interestingly, 22-30% of consumers participating in one study said they thought ecommerce brands must improve customer service. In another, 36% said they would write negative reviews on social media after a bad experience. It’s as simple as an automated email explaining responses may take a few business days, following up after purchases to analyse satisfaction, or having a live chatbot for real-time assistance.
On the flip side – if brands also struggled with supplier post-pandemic and vulnerable supply chains. The consumer incentive to maintain supply chains simply wasn’t there, and a lack of optimising supply chains lead to problems. Delays in delivery, missing products, or poor communication all have a negative impact on the main target, the consumer.
Secure and reliable supply chains, incentive programmes, and personalised experiences all lead to a positive experience that many brands neglect.
Poor Mobile User Experience
According to Shopify, mobile commerce will hit a value of $620.97 billion by 2024, meaning 42.9% of all e-commerce retail sales will be mobile. Businesses tend to hire mobile app developers for custom app creation or partner with shopping and ordering platforms to go online. Yet, a poor mobile user experience is one of the main reasons why brands fail. In fact, one study found that half of consumers find mobile commerce frustrating because of the poor layout and functionality. Have you ever used an app and wondered if they even looked at it before releasing it to the market? We’re sure you have.
Investing money in a top-quality mobile app that has been user tested before entering the market is crucial.
Abandoned Shopping Carts
You have a great website, you have a great app, and you can see traffic flowing through, but the consumer never quite makes it to the end. According to Shopify, in 2021, a whopping 69.57% of shopping carts were abandoned. The main reasons include additional costs at the checkout, a poor checkout experience, and comparing to other brands before clicking the final button.
One of the best ways to improve the checkout experience is to offer express checkout – a one-click buy now option that prevents consumers from having to consistently type in their details every time they want to shop.
Retail ecommerce will expand rapidly over the coming years as the world goes more digital. Brands must find ways to improve customer satisfaction and the online experience to stay at the forefront of the game, especially when competing against big brands that have the reputational power to overthrow SMEs in the market.
Featured Image Credit: Korie Cull on Unsplash
