For e-commerce sites to achieve growth in new markets, they should be published in local languages. THE CHALLENGES FACING GLOBAL E -COMMERCE Dr. Pravin Ransure HOD, Economics, S.P. Get translation technology you can trust. Partnering with a logistics provider can help handle the operational complexities of global compliance, shipping and payment processing. While e-commerce saw massive growth throughout the pandemic, entrepreneur Kevin Traynor says there are challenges ahead that the sector must overcome. 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” Dependence on Google for traffic Google is the world leader in search engines, and by extension, responsible for the visibility of websites. This often means translating e-mail content, and providing local phone numbers for customer service representatives. Others don’t. 1. However, in international markets, CDNs have the added benefit of making it easy to “play nice” with a country’s laws. 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. 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. 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. 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. Store owners are challenged by competitors, the market, and the day-to-day operational difficulties… How can we fully embrace the omnichannel retail environment? Orders were up, too.”. There are a few key ways to mitigate these risks. The Challenges Facing Global E-Commerce. Registered in England & Wales No. “Without using an all-in-one fulfillment partner,” Logan says, “most payment providers by market allow for simple adoption into CMS/CRM platforms. Your organization must abide by export laws, too; some governments simply won’t permit companies to legally ship to specific countries. The takeaway is clear: International online retail is where the action is—and where it’ll stay. E-commerce companies and online retailers encounter new opportunities for growth every year. 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%. 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. 22-30. Shopping cart platforms like Shopify have eliminated many barriers of entry. Your company will need to “play nice” with international markets’ import regulations, tariffs, taxes and other nuances. Research Well. Unfortunately, some businesses simply lack the necessary skills, knowledge, or personnel to fully capitalize on the new opportunities they identify. We will discuss the major e-commerce challenges that players face, and how a customer interaction technology could help in overcoming such challenges. 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). 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. To overcome these internal challenges would require greater deployment of manual resources and cannot just be solved through cloud services. But companies should recognize several other key challenges when eyeing international expansion opportunities. Astute offers solutions to help e-commerce brands like yours align your customers' experiences to their expectations. “But after integrating local payment options, revenue skyrocketed,” Logan says. College, Pune ABSTRACT The power of Web enablement is that geographical boundaries disappear for an enterprise. Anyone can launch an online store within days and start selling all sorts of products. Your Top Three Challenges: Facing and Overcoming Obstacles The power of Web enablement is that geographical boundaries disappear for an enterprise. “Firstly, align your product or industry with the potential threats of an area, and have solutions for those problems,” Logan says. Thus, an E -commerce initiative can easily become a global E -Commerce initiative. Managing logistics, seller registration, and inventory accounting present bigger challenges for the e-commerce companies. Recommended: Challenges you Will Face While Setting up Your Online Store. According to Bongo International , a provider of international shipping services for businesses, savvy companies that ship overseas can increase their revenue by … An assistant professor of Information Systems at Indiana-Purdue University in Fort Wayne. Here are the four major challenges faced by … Our research absolutely supports this. Further, some international markets are infamous for local corruption, supporting terrorism, or are in a locale that’s prone to natural disasters. Researchers point out that it’s estimated up to 90 percent of Internet host … 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. The power of Web enablement is that geographical boundaries disappear for an enterprise. Choose fulfillment options that can accommodate your international expansion needs.”. 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. Latin America is an attractive region for U.S. e-commerce merchants, but the landscape can be confusing, changing from one market to another. Logan recalls one client who launched an e-commerce site, and accepted only credit card payments for the first few months online. Don’t let operational challenges keep you from reaching global markets. How are current, outdated models holding retailers and e-commerce brands back? It’s easier than ever to connect with new customers (and generate more revenue!) 1. Learn more. The power of Web enablement is that geographical boundaries disappear for an enterprise. In some countries, for example, the payment networks support neither Authorization/Capture nor partial refunds while others do. Global outreach cannot be accomplished at once. But in the end, governments and bureaucracies have the final say in the flow of most cross-border commerce. 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. 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. If these customers don’t see their preferred payment options, they won’t transact. 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. So, what are the challenges ecommerce companies face? 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. Thanks for signing up! CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): The power of Web enablement is that geographical boundaries disappear for an enterprise. Here are the top 10 most common challenges faced by eCommerce businesses of all sizes. 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. To learn more about the e-commerce customer experience and how you can stay relevant, download our whitepaper for free. Due to the lockdowns instituted to contain the further spread of the virus, e-commerce in goods has faced supply chain disruptions. Still, there are certain issues e-commerce owners face that are unique to their field. 3099067 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. For the first time, we have accurate e-commerce data in the region. You can also partner with a vendor already fluent in these marketplaces, and their unique challenges. Finding a solution or turn-key vendor that provides dedicated IT resources and geo-load balancing, when appropriate, is imperative. (This includes shipping prohibited and restricted items, which vary from country to country.) The dominance of African e-commerce by Nigeria is one of the most interesting conclusions of this report. These expert insights can help ensure a successful move into the global market. 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. by expanding into new international markets—especially through online channels. 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. Another client also saw amazing lifts when adopting local payment platforms. Many Obstacles to selling across national boundaries exist. The Internet and e-commerce have ushered in an era of untold changes in cross-border conversation, culture and consumption. Increasingly, they’re buying online from other countries — nearly half of all U.S. shoppers now make purchases from international retailers. We have listed some of the major challenges facing e-commerce today, and their solutions. Cited by lists all citing articles based on Crossref citations.Articles with the Crossref icon will open in a new tab. The major challenges of ecommerce include: ‍1. This often occurs in China. 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. “Choosing the closest service node is done using a variety of techniques including proactive probing and connection monitoring.”. “For instance, some shipping providers have issues shipping packages to countries like Pakistan. Launching sites in international markets doesn’t always mean those sites should be hosted by servers in those markets. We use cookies to improve your website experience. 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. Thus, an E-commerce initiative can easily become a global E-commerce initiative. 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 year ago. Finding a solution or turn-key vendor that provides dedicated IT resources and geo-load balancing, when appropriate, is imperative. 1) The need for online identity verification. A myriad of new business models in Reputable vendors use tracking alarms and QA teams to ensure these payment methods are working correctly at all times.”. The Covid-19 … Finding the right products to sell. 1. The e-commerce industry as a newcomer is bound to face certain challenges ranging from economical to technological down to the social sphere. Its conversion rate grew by 217%, the quantity per transaction increased by 33%, and revenue grew 210%. Observation and care over time can help identify optimizations to ensure load time is decreased, and site functionality remains intact.”. If these customers don’t see their preferred payment options, they won’t transact. Nevertheless, before conducting E-business globally, Web-enabled enterprises Old local giants like the e-commerce business Kalahari, the advertising firm InMobi, and e-classified site Mocality retrenched, reorganized, or closed down. website localization is the process of refining website content through culture, language and flow to provide the most useful and relevant experience for users. “Within weeks, a full third of its site revenue hailed from these local options transactions. Consumer behavior also dictates the growth of competition, which seems to be increasingly stiff almost every year. Top 7 Challenges E-Commerce Stores Face – a guest blog post from the Cart2Cart team. 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. Further, any expansion of Singles’ Day into the West could be hampered by November 11 th ‘s association with war commemoration, i.e. However, the need for local hosting—or geo-based server load balancing—can be quite high in other international markets. MotionPoint & COVID-19 Preparedness. The opportunities in the online retail sector are clearly huge, but these companies also face enormous challenges, “said Disrupt Africa co-founder Tom Jackson. Watch your inbox for insights and updates from us! Watch your inbox for tips, helpful analysis and more. Payment and Fraud Challenges Facing E-Commerce Merchants in Latin America. The Internet and e-commerce have ushered in an era of untold changes in cross-border conversation, culture and consumption. (2000). 4, pp. The study emphasizes on issues like, acceptability, credibility, feasibility, ethics, privacy and trust as major challenges in expanding e-commerce in developing countries. By continuing to use this site, you are giving us your consent to do this as explained in our cookie policy, available here. 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. Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine. Receive thought leadership on website translation, customer experience localization and more. But there’s also an ongoing component to this. 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. 5 Howick Place | London | SW1P 1WG. Armistice Day. E-commerce is big business, and it relies on the right distribution channels and models in order to succeed. 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 . 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. Here is some related information that you might enjoy, How MotionPoint Handles Localization and Customization, Proxy Technology and Website Localization: A Powerful Combination. The e-commerce sector is facing a bunch of challenges nowadays. Thus, an E-commerce initiative can easily become a global E-commerce initiative. /doi/pdf/10.1201/1078/43193.17.4.20000901/31249.5?needAccess=true. This way, you'll avoid fraudulent … 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. In many cases, that isn’t possible due to local infrastructure limitations. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. the credibility of the customer is questionable. 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. Consumers aren’t just buying more online these days. The result? 17, No. 5 real challenges facing e-commerce companies in 2019. Sign up to receive industry-leading insights on website translation, user experience localization, international SEO and more. Most e-commerce owners thrive on that challenge. 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.. Thus, an E-commerce initiative can easily become a global E-Commerce initiative. We use cookies to present you with relevant, personalized experiences on this site and others we operate. Companies keen to expand into international markets shouldn’t forget about the customer support needs these markets will inevitably have. Many countries around the world are recognizing this new trading environment and embracing the vast economic opportunities created by global e-commerce. 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. Many firms have continued to experience supply challenges as a result of suspension of manufacturing activity, the decreased production and labour shortages. 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. Look for partners who can identify the proper payment methods for each market. Here are a few marketing challenges you can expect if you are planning to explore the global marketplace with your e-commerce brand. Register to receive personalised research and resources by email. Serving global customers online poses particular challenges for companies with transactional websites. By closing this message, you are consenting to our use of cookies. Information Systems Management: Vol. These things and more can threaten reliable e-commerce transactions and delivery. Here are some challenges that businesses face in the current climate — along with some potential solutions. 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. 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