15 Mar 7 Reasons Your E-commerce Business Isn’t Growing
Running an e-commerce business has many intricacies to manage just right to get the desired results. And if you don’t, you may have an e-commerce business that isn’t growing.
To gain positive traction and growth, it’s imperative to run an efficient business that uses the most modern tools and technology. Only then can you ensure proper oversight and management. If your company isn’t growing or is not reaching your desired growth level, it’s time to look at what could be wrong.
There are dozens of potential reasons for the lack of growth. Sometimes, a product does not meet the needs of many consumers, limiting growth potential. If you have a product that has customers out there, take a look at a few of the common reasons why your e-commerce business isn’t growing.
1. Your Online Presence Is Lacking
The internet’s reach is global, creating an opportunity for people around the world to buy from you. Yet, you need to have a strong online presence for that to happen.
That typically means having an efficient, well-organized website. That website needs to:
- Be optimized for search engine performance
- Have clear photos and product descriptions
- Be easy to navigate
- Have a mobile-friendly design
- Offer an easy check-out process
You’ll also want social media channels to connect with buyers. Lastly, consider a presence on the various sites out there where customers tend to go to buy products like yours. That includes Amazon and Walmart, for example.
If any of these components are missing or you’re lacking marketing on social media and third-party websites, it’s costing your company.
2. Orders Need to Be Fast
One of the core concerns for many companies is the lack of speedy shipping. If a consumer can purchase a product like yours and receive it within a few days, that’s what they are going to do.
If your company has a slow picking and packing process, or your warehouse is unorganized to make it impossible for customers to see packages arrive quickly, that’s costing your company growth.
This is particularly true if you lack return customers. Say a customer purchases a product and has to haggle to figure out where it is in the shipping process. Let’s face it, they are not likely going to return to purchase again.
Some studies found that 65% of U.S. consumers expect two to three-day shipping from retailers they purchase from online. If it takes two or three times that, that could be an indication that your customers are going elsewhere.
3. Information About Your Products Is Not Clear
Another concern for companies that are not seeing growth has to do with the information available about a product. Consumers want to buy online. But they also want to buy from a recognizable, trustworthy, and professional company.
Look at your website and see if it contains inaccurate information or conflicting data. That’s a warning to the consumer to go elsewhere for what they are looking for.
One of the steps to mitigate this risk is improving information management. You should have a simple way to share photos of products, dimensions, product descriptions, and other data. You want it as easy as possible across your entire e-commerce ecosystem.
This helps minimize confusion and ensures the customer gets what they anticipate. It can significantly improve warehouse communications, too.
4. Your Pricing Isn’t Competitive
One of the nice things about e-commerce shopping is the ease of going from one shop to the next to figure out who has the best price. That doesn’t mean all consumers are interested in a deal. However, they do expect a reasonable price point that’s competitive with other products like what you are offering.
If you cannot lower prices, it may be time to consider why that is. There could be many reasons, such as ineffective suppliers, the high cost of maintaining a warehouse, and high shipping costs.
Looking for a solution to help reduce those costs may help your organization to perform more efficiently. That, then, could lead to an improved competitiveness for your product.
5. Lacking Digital Talent
At the core of any company’s growth is its people. Having strong e-commerce talent can help support growth within a company, notes McKinsey in a recent report. That means companies need to locate and attract talent that can offer insight into e-commerce development and support the growth of the company.
Seek out talent that has a strong digital background. That way, they can help to create an effective strategy and work to implement the changes organizations need to overcome the limitations they face. Your growth is only possible if you have the right team behind it.
6. Not Having an E-Commerce Strategy in Place
Organizations need an e-commerce strategy. While much of that focus is on creating a digital presence, building out social media marketing, and building an omnichannel experience, there’s often more to it than this.
It’s important to have a logistics system in place. It’s also essential to have a customer service team that’s using the most advanced solutions possible. With that they can grab information from customers to improve operations. Leadership also needs to be fully committed to the process of building an e-commerce business that’s robust, modern, and as innovative as possible.
7. Not Outsourcing
One of the core reasons e-commerce companies don’t grow is because they are trying to do it all themselves. Building a digital presence may be best done, for example, by a company that specializes in SEO and branding.
The same applies to the logistics operations of a company. Turning to a 3PL solution may greatly enhance e-commerce companies. It provides them with expert-level support in a comprehensive and competitively priced way.
With third-party logistics (3PL), companies are able to outsource the expensive parts of their business that are costing them money. That includes things like receiving, picking, packing, and shipping. It can also be used to manage returns.
Tradefull offers even more. For example, it can help with getting your business into over 40 different marketplaces, reaching a much larger audience. It can help to streamline information sharing across your ecosystem to save your company money. It also speeds up shipping by opening the door to faster (and lower costing) shipping options, helping your business to compete.
How can Tradefull help your organization? Explore the benefits of 3PL with Tradefull to uncover all of your company’s opportunities for growth improvement.