5 Howick Place | London | SW1P 1WG. The Main Challenges Facing European E-commerce Businesses The EU’s e-commerce industry has been experiencing a lot of positive growth over the past few years. Another client also saw amazing lifts when adopting local payment platforms. Finding a solution or turn-key vendor that provides dedicated IT resources and geo-load balancing, when appropriate, is imperative. Watch your inbox for insights and updates from us! As it is an industry that is heavily affected by consumer’s choices, e-commerce business owners are always kept on their toes by their very own market. “Choosing the closest service node is done using a variety of techniques including proactive probing and connection monitoring.”. “Firstly, align your product or industry with the potential threats of an area, and have solutions for those problems,” Logan says. Nevertheless, before conducting E-business globally, web-enabled enterprises must consider an array of international economic, technological social, and legal issues, which this article addresses. Thus, an E-commerce initiative can easily become a global E-commerce initiative. Indeed, U.S. retailers are very familiar with credit cards and PayPal, but most don’t understand that those payment types aren’t actually ubiquitous beyond U.S. borders. 1. Double taxation or lack of tax relief for logistics companies (an important arm of the e-commerce sector) in developing countries is one of the major challenges affecting e-commerce companies in 2020. 1) The need for online identity verification. In closing some of their e-commerce properties, Naspers, a media and internet empire, noted that it was a “sad day for e-commerce” in Africa and cited “unprofitability” as a reason. We have listed some of the major challenges facing e-commerce today, and their solutions. However, the need for local hosting—or geo-based server load balancing—can be quite high in other international markets. According to Bongo International , a provider of international shipping services for businesses, savvy companies that ship overseas can increase their revenue by … Here are the four major challenges faced by … The Challenges Facing Global E-Commerce. Your company will need to “play nice” with international markets’ import regulations, tariffs, taxes and other nuances. Companies keen to expand into international markets shouldn’t forget about the customer support needs these markets will inevitably have. THE CHALLENGES FACING GLOBAL E-COMMERCE : A MULTIDIMENSIONAL PERSPECTIVE P. Bingi, A. Mir, J. Khamalah Published 2001 The power of Web enablement is that geographical boundaries disappear for an enterprise. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. Here are a few marketing challenges you can expect if you are planning to explore the global marketplace with your e-commerce brand. Sign up to receive industry-leading insights on website translation, user experience localization, international SEO and more. CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): The power of Web enablement is that geographical boundaries disappear for an enterprise. A myriad of new business models in Indeed, nearly 60% of global consumers spend more time on sites in their own language than they do in English—or boycott English-language websites altogether. While a localized website with a customer service FAQ (translated into the local market’s language) will dramatically reduce customer service requests through self-service, your company will still field calls and e-mails. In some countries, for example, the payment networks support neither Authorization/Capture nor partial refunds while others do. Learn more. We will discuss the major e-commerce challenges that players face, and how a customer interaction technology could help in overcoming such challenges. These expert insights can help ensure a successful move into the global market. Watch your inbox for tips, helpful analysis and more. Researchers point out that it’s estimated up to 90 percent of Internet host … These things and more can threaten reliable e-commerce transactions and delivery. Partnering with a logistics provider can help handle the operational complexities of global compliance, shipping and payment processing. by expanding into new international markets—especially through online channels. Store owners are challenged by competitors, the market, and the day-to-day operational difficulties… The e-commerce industry as a newcomer is bound to face certain challenges ranging from economical to technological down to the social sphere. The challenges facing e-commerce in Saudi Arabia are partly facing e-commerce in general around the world and the other part is exclusively for the Kingdom. Economic challenges The economic challenges facing eCommerce merchants include the costs related to establishing an eCommerce business, the number of competing online merchants, issues connected with infrastructure upgrades, and the availability (or shortage) of skilled staff. Fourth, the global expansion of Alibaba has not provided the dividends that many had predicted, despite large investments into India, Africa, and South-East Asia. We use cookies to improve your website experience. Many Obstacles to selling across national boundaries exist. THE CHALLENGES FACING GLOBAL E -COMMERCE Dr. Pravin Ransure HOD, Economics, S.P. Anyone can launch an online store within days and start selling all sorts of products. Unfortunately, some businesses simply lack the necessary skills, knowledge, or personnel to fully capitalize on the new opportunities they identify. Thus, an E-commerce initiative can easily become a global E-commerce initiative. Many countries around the world are recognizing this new trading environment and embracing the vast economic opportunities created by global e-commerce. Shopping cart platforms like Shopify have eliminated many barriers of entry. Key Challenges Facing E-commerce Brands With the continued rise of e-commerce and ever-growing customer expectations, brands need to facilitate seamless online shopping experiences throughout the customer journey. This often means translating e-mail content, and providing local phone numbers for customer service representatives. Payment and Fraud Challenges Facing E-Commerce Merchants in Latin America. Register to receive personalised research and resources by email. While e-commerce saw massive growth throughout the pandemic, entrepreneur Kevin Traynor says there are challenges ahead that the sector must overcome. Companies that partner with world-class vendors who have a thorough understanding of the markets’ cultures, politics and customer expectations can win big, year after year. E-Commerce Challenges for Caribbean Businesses: 10.4018/978-1-59904-939-7.ch195: The global environment of e-commerce is revolutionizing business practices and reshaping traditional business transactions over “computer-mediated networks” The takeaway is clear: International online retail is where the action is—and where it’ll stay. 3099067 You can also partner with a vendor already fluent in these marketplaces, and their unique challenges. Get translation technology you can trust. 5 real challenges facing e-commerce companies in 2019. The result? But there’s also an ongoing component to this. Astute offers solutions to help e-commerce brands like yours align your customers' experiences to their expectations. Armistice Day. The dominance of African e-commerce by Nigeria is one of the most interesting conclusions of this report. (This includes shipping prohibited and restricted items, which vary from country to country.) Your organization must abide by export laws, too; some governments simply won’t permit companies to legally ship to specific countries. 1. The power of Web enablement is that geographical boundaries disappear for an enterprise. Many firms have continued to experience supply challenges as a result of suspension of manufacturing activity, the decreased production and labour shortages. Nevertheless, before conducting E-business globally, Web-enabled enterprises must consider an array of international economic, technological, social, and legal issues, which this article examines. Here are some challenges that businesses face in the current climate — along with some potential solutions. Global outreach cannot be accomplished at once. Our research absolutely supports this. Geo-load balancing directs “a client request to the service node that is [geographically] closest to the client, or to the node with the most capacity,” writes MotionPoint client Rackspace. Observation and care over time can help identify optimizations to ensure load time is decreased, and site functionality remains intact.”. Reputable vendors use tracking alarms and QA teams to ensure these payment methods are working correctly at all times.”. 17, No. E-commerce in Saudi Arabia faces a large number of challenges that hinder its spread and its growing volume as required, despite all the great efforts made by Saudi Arabia to achieve the widespread of e-commerce and legalize its status.. Choose fulfillment options that can accommodate your international expansion needs.”. This often occurs in China. This way, you'll avoid fraudulent … I’d like to take a look at three top issues facing e-commerce owners and talk about what might help you successfully overcome them. For e-commerce sites to achieve growth in new markets, they should be published in local languages. Thus, an E -commerce initiative can easily become a global E -Commerce initiative. College, Pune ABSTRACT The power of Web enablement is that geographical boundaries disappear for an enterprise. It’s easier than ever to connect with new customers (and generate more revenue!) “Without using an all-in-one fulfillment partner,” Logan says, “most payment providers by market allow for simple adoption into CMS/CRM platforms. The fact of the matter is that almost 46 percent of current Internet companies turn away international orders because they do not have processes in place to fill them. “But after integrating local payment options, revenue skyrocketed,” Logan says. By continuing to use this site, you are giving us your consent to do this as explained in our cookie policy, available here. So, what are the challenges ecommerce companies face? If your organization provides customer service via e-mail, inbound phone calls or “contact us” forms, it should deploy localized versions of these experiences for new consumers, too. Research Well. Cited by lists all citing articles based on Crossref citations.Articles with the Crossref icon will open in a new tab. Here are a few concerns to consider, and some suggestions to eliminate these pain points so your company can do what it does best: engage with customers, and sell them world-class products! Consumers aren’t just buying more online these days. However, in international markets, CDNs have the added benefit of making it easy to “play nice” with a country’s laws. Finding a solution or turn-key vendor that provides dedicated IT resources and geo-load balancing, when appropriate, is imperative. Latin America is an attractive region for U.S. e-commerce merchants, but the landscape can be confusing, changing from one market to another. MotionPoint & COVID-19 Preparedness. If these customers don’t see their preferred payment options, they won’t transact. An assistant professor of Information Systems at Indiana-Purdue University in Fort Wayne. Still, there are certain issues e-commerce owners face that are unique to their field. Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine. 1. Its conversion rate grew by 217%, the quantity per transaction increased by 33%, and revenue grew 210%. The Internet and e-commerce have ushered in an era of untold changes in cross-border conversation, culture and consumption. Recommended: Challenges you Will Face While Setting up Your Online Store. the credibility of the customer is questionable. The major challenges of ecommerce include: ‍1. Content Delivery Networks (CDNs) and geo-load balanced servers are often used by companies to improve domestic site speed or reliability, when delivering their primary-market site content (often in English) to core customers. Further, some international markets are infamous for local corruption, supporting terrorism, or are in a locale that’s prone to natural disasters. Old local giants like the e-commerce business Kalahari, the advertising firm InMobi, and e-classified site Mocality retrenched, reorganized, or closed down. Information Systems Management: Vol. /doi/pdf/10.1201/1078/43193.17.4.20000901/31249.5?needAccess=true. Here is some related information that you might enjoy, How MotionPoint Handles Localization and Customization, Proxy Technology and Website Localization: A Powerful Combination. The Covid-19 … Registered in England & Wales No. How can we fully embrace the omnichannel retail environment? There are a few key ways to mitigate these risks. Due to the lockdowns instituted to contain the further spread of the virus, e-commerce in goods has faced supply chain disruptions. Your Top Three Challenges: Facing and Overcoming Obstacles The Internet and e-commerce have ushered in an era of untold changes in cross-border conversation, culture and consumption. Indeed, global B2C e-commerce is on track to hit $2.3 trillion by 2018, with much of that robust growth occurring in emerging international markets. The study emphasizes on issues like, acceptability, credibility, feasibility, ethics, privacy and trust as major challenges in expanding e-commerce in developing countries. website localization is the process of refining website content through culture, language and flow to provide the most useful and relevant experience for users. 1 year ago. Orders were up, too.”. E‐Commerce Trends and Challenges: A Logistics and Supply Chain Perspective 1 EXECUTIVE SUMMARY A new wave of e-commerce is upon us and lessons have been learnt, particularly in logistical support. Therefore, although the Internet makes it possible for a company to sell items in an international marketplace, many companies are not prepared to go global. Deniably, e-commerce enterprises offer more benefits, comparing to “bricks-and-mortal” traditional enterprises, but not to be missed the issues and challenges faced by the e-commerce enterprises. Logan recalls one client who launched an e-commerce site, and accepted only credit card payments for the first few months online. How are current, outdated models holding retailers and e-commerce brands back? Don’t let operational challenges keep you from reaching global markets. Challenge #1: Lack of Verification Measures Once a customer signs up in an e-commerce portal, the portal is unaware about the customer except for the information he/she entered. Others don’t. Managing logistics, seller registration, and inventory accounting present bigger challenges for the e-commerce companies. Most e-commerce owners thrive on that challenge. The power of Web enablement is that geographical boundaries disappear for an enterprise. The power of Web enablement is that geographical boundaries disappear for an enterprise. To overcome these internal challenges would require greater deployment of manual resources and cannot just be solved through cloud services. Receive thought leadership on website translation, customer experience localization and more. The e-commerce industry can be quite the dog-eat-dog world, with small businesses struggling for survival in an age where mammoth companies like Amazon patrol the space. By closing this message, you are consenting to our use of cookies. According to Bongo International, a provider of international shipping services for businesses, savvy companies that ship overseas can increase their revenue by an average of 17%. As Logan Lenz, a Global Online Strategist for MotionPoint’s Global Growth team, explains: “The system functions at optimum speed, which is great. People also read lists articles that other readers of this article have read. E-commerce is big business, and it relies on the right distribution channels and models in order to succeed. Dependence on Google for traffic Google is the world leader in search engines, and by extension, responsible for the visibility of websites. But companies should recognize several other key challenges when eyeing international expansion opportunities. Launching sites in international markets doesn’t always mean those sites should be hosted by servers in those markets. “For instance, some shipping providers have issues shipping packages to countries like Pakistan. To learn more about the e-commerce customer experience and how you can stay relevant, download our whitepaper for free. Further, any expansion of Singles’ Day into the West could be hampered by November 11 th ‘s association with war commemoration, i.e. For the first time, we have accurate e-commerce data in the region. Serving global customers online poses particular challenges for companies with transactional websites. Finding the right products to sell. If these customers don’t see their preferred payment options, they won’t transact. But in the end, governments and bureaucracies have the final say in the flow of most cross-border commerce. Increasingly, they’re buying online from other countries — nearly half of all U.S. shoppers now make purchases from international retailers. E-commerce companies and online retailers encounter new opportunities for growth every year. Nevertheless, before conducting E-business globally, Web-enabled enterprises The e-commerce sector is facing a bunch of challenges nowadays. Look for partners who can identify the proper payment methods for each market. It’s often unnecessary, too: latency issues are usually uncommon when using robust solutions that smartly distribute server loads across larger regions (such as Europe). Thus, an E-commerce initiative can easily become a global E-commerce initiative. Thus, an E-commerce initiative can easily become a global E-Commerce initiative. (2000). When a visitor goes to an ecommerce website and signs up, you need to somehow be sure that this is a legit person who wants to buy. A new report from industry association E-commerce Europe found that there was a 15% growth in 2016 and the industry is predicted to be worth €602 billion by the end of 2017 . Thanks for signing up! Top 7 Challenges E-Commerce Stores Face – a guest blog post from the Cart2Cart team. “Within weeks, a full third of its site revenue hailed from these local options transactions. They can educate your company on best practices in these markets, viable fulfillment and marketing options—or in some cases, advise you to engage other markets poised to deliver greater returns at less risk. In many cases, that isn’t possible due to local infrastructure limitations. Consumer behavior also dictates the growth of competition, which seems to be increasingly stiff almost every year. Here are the top 10 most common challenges faced by eCommerce businesses of all sizes. We use cookies to present you with relevant, personalized experiences on this site and others we operate. 4, pp. 22-30. 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