Answer to Question #322801 in Management for Sihle Dalamini

Question

Comment on the challenges associated with the usage of e-commerce applications in business.

What is your perception on application of these in the future?

Will usage be on the rise or decline, why?

Answer 1

Usage of e-commerce applications in business has challenges such as;

Capitalization of Data

The expansion and integration of the digital commerce function into the core, holistic brand solution is one of the crucial eCommerce challenges. Quite often, eCommerce becomes an autonomous side business rather than a fully integrated part of the business as a whole.

Customers’ Exploding Expectations

Retailers all over the world are continuously trying to build their reputation and a sharp brand image with the promise of a great experience. In an era where experience matters the most and tech giants like Amazon are taking the online buying process to the proverbial ‘next level’ with anticipatory shipping methods, it is very difficult to meet customer expectations. Thus, competing with them and fulfilling the ever-evolving customer demands is a huge challenge for retailers today.

Agility Challenge

Agility is the capability of a business to accomplish tasks such as introducing advancements, developing and deploying digital content, and reacting to seasonal changes rapidly. Agility drives immediate digital fulfillment, and it is identified as one of the most important initiatives in eCommerce businesses. Agile transformation is at the heart of digital business, and scaling is essential for making it successful. A large number of companies find it difficult to move or change quickly to adapt to the needs of customers. This is usually because they cannot integrate new technologies efficiently with their existing system, and, as a result of which, penetration into the market gets more difficult.

Data Security

The uptake of eCommerce raises concerns about security threats. This is one of the most critical eCommerce challenges. There is a looming threat of hackers and fraudsters attacking the host server and not just stealing confidential data but also introducing viruses. Breach of credit and debit card details has become common news, and such lapses directly affect the trust of a consumer. Phishing is yet another threat where hackers pose as business and ask for sensitive information from their customers. Several users are increasingly concerned about the eCommerce websites’ capability to effectively shield their personal identity as well as the security of the transaction details.

The ecommerce market is expected to grow by almost $11 trillion between 2021 and 2025. As businesses came online during the COVID-19 pandemic, the global trend toward digitization surged ahead at lightning speed. Even as regions begin to reopen, ecommerce sales are still climbing. The presence of an e-commerce platform means you are more accessible now to your customers. It makes your business visible to millions of consumers, so it provides you great opportunities to enhance your customer base.

The usage will be on the rise by almost $11 trillion between 2021 and 2025. The future of ecommerce will be driven by increasing convenience for both merchants and their shoppers, providing rich, compelling shopping experiences, and enabling experiences across channels in a consistent, customer-friendly way.