With a market value estimated at $6.31 trillion in 2024 and expected to reach $7.95 trillion by 2027, there’s no denying that e-commerce is a thriving sector, offering great opportunities to anyone looking to build a successful business. However, it’s also an environment that’s fraught with challenges and has a high rate of failure that should make any sensible entrepreneur think twice before jumping in. Research shows that between 80 to 90% of e-commerce businesses fail after just four months of operation, which makes this a particularly risky landscape for newcomers.
There are many reasons why so many projects flop, including the lack of market research, insufficient visibility due to poor marketing, inaccurate pricing, bad website design, and so on. In many cases, the primary factor that causes e-commerce startups to go out of business is the fierce competition in the market and the inability to differentiate from other companies. The e-commerce space is overcrowded and having a large number of businesses fight for the attention of the same target audience leads to a lot of startups being overshadowed by their rivals.
When offering great products and services is no longer enough to make an enterprise rise above the rest, even the smallest improvement can make a huge difference. Customers will naturally gravitate towards brands that are innovative and give them something that others don’t. So, if you’re planning to go into e-commerce or are already an active participant and want to beat the competition so you can be among the 10 to 20% that succeed, here’s what you need to do.
Let reviews do the talking
E-commerce businesses often resort to all kinds of marketing gimmicks or integrate cutting-edge solutions like AI, VR, and AR technologies into their strategies to gain a competitive advantage. While these investments can certainly pay off and boost a brand’s appeal, the upfront costs represent a barrier for a lot of companies that simply don’t have the necessary resources to implement these measures.
Fortunately, less sophisticated methods can be equally if not even more effective in putting your brand into the spotlight while also being less costly. So, before you dive into the complexities of innovative technologies and how they can help your e-commerce business, you might want to take advantage of customer reviews. The majority of customers read reviews and testimonials before making a purchase, so positive feedback from satisfied clients offers a great and cost-effective way to promote your company. Encourage and make it easy for customers to leave reviews by providing links to dedicated pages and platforms or sending follow-up emails and texts asking about their experience.
Be faster than the rest
With a larger number of customers making time-sensitive purchases online, the ability to ensure fast delivery times has become an important differentiator in the e-commerce space. We’ve gone from the typical two or more business days for a parcel to arrive at its destination to customers expecting and demanding same-day and next-day delivery.
When customers’ expectations change, companies have to follow suit and adapt. This means you need to work on optimizing your order fulfilment to make sure your products reach customers in the shortest period of time possible. Improving delivery accuracy and speed is a sure way to boost customer satisfaction, so you might want to consider outsourcing your logistics to a trusted partner like Monta that can streamline operations and ensure every parcel is delivered without delay.
Deliver flawless customer service
Customer service is a key component of every successful business, but its importance is all the greater in e-commerce, where purchases are made onlin,e and the lack of in-person interaction can present challenges for consumers. For example, if a client comes across a technical issue during the checkout process and they can’t get through to a representative who can offer assistance and advice in this respect, they’ll have no option but to abandon the purchase. Moreover, they can share their negative experience by leaving a bad review and damage the brand’s reputation.
Therefore, if you want to avoid these problems and boost your company’s image, you need to focus on providing excellent customer service at all times. That implies building a team of skilled individuals and training them so they can address customer concerns promptly and effectively, paying attention to customer feedback and acting upon it.
Offer personalised experiences
In a sea of e-commerce companies that embrace a one-size-fits-all approach and treat all customers the same way, be the one that does things differently by providing personalised experiences. Taking individual preferences into account and creating tailored interactions will create a deeper bond with your clients and turn them into loyal customers who will choose your brand over others time and time again.
Personalisation can be employed at all levels. You can create marketing messages that include personalised products/service recommendations; you can add thank you notes with your orders or send birthday wishes (or a free gift) to surprise your customers; you can train your customer service team to look into each customer’s history to personalise their response, and so on.
Adopt sustainable practices
Environmental concerns are influencing consumers’ behaviour, leading them to become more conscious of their choices and the impact they have on their communities and the planet as a whole. As a result, they tend to favour e-commerce companies that demonstrate social responsibility and embrace sustainable practices.
You can work on reducing your carbon footprint and boost your sustainability credentials by using recyclable packaging, adopting energy-saving solutions, giving back to the community, or joining forces with a fulfilment centre that ensures responsible business operations. That will establish you as a reliable company and help you meet the demands of eco-conscious consumers.
Showcase your uniqueness
So, you have what it takes to stand out from the e-commerce crowd. Now you have to make sure everybody knows about it. If you want to turn your strong suits into a competitive advantage, you have to communicate them loud and clear on all available channels so they can reach the ears of your target audience and convince them that your e-commerce business is the better choice.
Outmatching your competition can feel like an impossible task when you’re just starting out, and you’re running against such a large number of businesses. However, targeting the right differentiators can make it easier for you to rise to the top, even in an overly crowded market.