The challenges eCommerce will be facing in 2023
January 5, 2023
It’s the first blog of the New Year, and we are looking to the year ahead and what you can expect to challenge your business.
As an eCommerce business owner, you know first-hand how challenging it can be to navigate the constantly evolving world of online retail. There are always new obstacles to overcome, from new technologies and consumer trends to increased competition. It is relentless.
So, what fresh hell or critical challenges will eCommerce businesses face in the next 12 months? Here are a few to consider:
The B Word!
The ongoing impact of Brexit on trade and tariffs is a primary concern for UK eCommerce businesses. As the UK continues to negotiate its exit from the EU, companies are grappling with the potential impacts on trade and the flow of goods. This includes changes to tariffs and VAT and possible delays at borders.
According to the Office for National Statistics, eCommerce sales in the UK reached £79.1 billion in 2020, representing 15.9% of all retail sales. With such a significant share of the market at stake, the continued impacts of Brexit on trade and tariffs are a top concern for eCommerce businesses. A British Chambers of Commerce survey found that 72% of companies were worried about the impact of Brexit on their supply chains.
To mitigate these risks, eCommerce businesses need to stay informed about the latest developments in the Brexit negotiations and consider how they may impact their operations. This may include reviewing contracts and supply chain arrangements and exploring alternative sourcing options. By being proactive, businesses can minimise the potential impacts of Brexit on their operations and continue to thrive in the eCommerce market.
If you are in the UK there are several online resources that can help you stay up to date with how Brexit is affecting the industry:
- The UK Government website: This is an excellent place to start for official updates on the status of the Brexit negotiations and any changes that may impact eCommerce businesses.
- The British Chambers of Commerce: This organisation provides regular updates and guidance on the impact of Brexit on businesses, including eCommerce.
- The Federation of Small Businesses: This organisation provides support and resources for small businesses, including information on how Brexit may affect the eCommerce industry.
- The Office for National Statistics: This government agency provides regular reports on the state of the UK economy, including data on eCommerce sales and trends.
- Trade associations and industry groups: Many trade associations and industry groups, such as the eCommerce Forum and the Online Retail Association, provide regular updates and guidance on how Brexit may impact the eCommerce industry.
Heightened competition from both domestic and international players is a significant challenge facing UK eCommerce businesses. The proliferation of eCommerce platforms and the rise of global players means companies must work harder than ever to differentiate themselves and offer a unique value proposition to customers.
According to the Office for National Statistics, online retail sales in the UK increased by 11.9% in 2020. This growth has attracted a wide range of domestic and international players, making it more competitive for businesses to stand out and capture market share.
To stay competitive, eCommerce businesses need to offer customers a differentiated and compelling value proposition. This may involve offering unique products or services, providing exceptional customer service, or leveraging emerging technologies to enhance the shopping experience. By finding ways to stand out from the competition, businesses can attract and retain customers in the crowded UK eCommerce market.
We’d bet on customer service every time. There have been several studies that have looked at the relationship between delivery experience, customer satisfaction, and a customer's willingness to pay. Here are a few examples:
- A study by PwC found that 60% of consumers are willing to pay more for same-day or next-day delivery, and that 40% would pay a premium for one-hour delivery.
- A report by the eCommerce Foundation found that 75% of consumers are willing to pay more for fast and reliable delivery, with the average willingness to pay being €9.50 ($10.70).
In addition to delivery experience, customer service is also a key factor in driving customer loyalty and willingness to pay more. An American Customer Satisfaction Index survey found that customers who reported having a good customer service experience were willing to pay up to 16% more for a product or service.
These studies suggest that customers are willing to pay a premium for exceptional delivery and customer service experiences. By investing in efficient fulfilment and delivery systems, offering a range of delivery options, and providing top-notch customer service, businesses can meet customer expectations, drive loyalty, and increase revenue.
The challenge of meeting increasing customer expectations for fast and reliable delivery is a top concern for eCommerce businesses. With the rise of same-day and even one-hour delivery options, customers are coming to expect quicker and more convenient delivery options. This can be a challenge for businesses, but it's essential to meeting customer needs and driving loyalty.
According to a survey by Royal Mail, 77% of UK shoppers said they would be more likely to shop with a retailer again if they received a high-quality delivery experience. In addition, a report by IMRG found that 60% of UK shoppers abandoned their online purchases due to slow delivery times or high delivery costs.
These statistics highlight the importance of fast and reliable delivery to eCommerce businesses. To meet customer expectations and drive loyalty, companies must invest in efficient fulfilment and fulfilment teams and offer a range of delivery options that meet the needs and preferences of their customers.
Do not fear; you don't have to navigate these challenges alone. That's where StoreFeeder comes in.
At StoreFeeder, we understand the unique challenges that eCommerce businesses face, and we're here to help you overcome them. Whether it's staying ahead of the competition’s pricing, adapting to changing consumer behaviours or streamlining your operations, we have the tools and expertise to support your business.
With StoreFeeder, you can access many powerful features and integrations that can help you streamline your operations, reduce costs, and increase efficiency. From inventory management and order fulfilment, we have got you covered.
But it's not just about the features; StoreFeeder is about our people. Our dedicated team of eCommerce experts are here to support you every step of the way. We'll work with you to understand your business needs and goals and provide the guidance and support you need to successfully set up a platform that makes meeting customer challenges and growing the business easy.
So don't let the challenges of 2023 hold you back. With StoreFeeder, you can overcome any obstacle and achieve your business dreams. Take control of your future and start your journey to success with StoreFeeder today. You can book a free demo here.