Disadvantages of e-commerce

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But for all the benefits of e-commerce, there's also a dark side. Business transformation projects aren't always successful. Many fail, and often, we don't know why. Here are the most common pitfalls a company can expect along its journey to digital commerce:

Difficult implementation
Companies that have had little to do with digitalization so far are particularly faced russia phone number data with a mountain of challenges during this transformation. The theory sounds simple, but to actually align the web shop, the automated warehouse, customer service, and production, a sensitive approach is necessary to ensure that all processes ultimately work together properly. Very often, the necessary know-how or money to implement individual steps is lacking. Should you start with a web shop, for example? Or with an improved website? With warehouse automation? With digital marketing? With a social media presence? With a new ERP system? Many providers of the respective software are also not very objective in their advice and thus not suitable as a source of information, which creates even more pitfalls. Added to this is the constant development of the respective technology and potential legal sources of error, for example, with shipping methods or necessary legal approvals in new markets. Also not to be underestimated in certain industries is the effort involved in complaints and returns – which many customers expect to be free of charge.

Commoditization and comparability
Your online shop is just a few clicks away from your customers' smartphones, and so is your competitors'. The same applies, by the way, to the online shop of the low-cost overseas provider. Easy entry into new markets also leads to oversupply in high-demand sectors and creates fierce competition. No matter what product you sell, an alternative supplier or a different offer can be found quickly in the digital world. Comparison portals further fuel this price war. Furthermore, even detailed information on virtually any topic has become accessible to everyone these days. A quick Google search and a few YouTube tutorials, and even a layperson has a solid understanding of what to look for and what needs to be analyzed more closely in a product. The customer has thus gained a great deal of power in the purchasing process. Companies must therefore offer real added value with unique products and continually develop new innovations to stand out in the world of e-commerce. Otherwise, they risk becoming embroiled in a price war that is unwinnable, especially against suppliers from the Far East.