Anyone who makes their living selling things understands the difficulty that the covid-19 pandemic has created. It shut down traditional selling channels and forced businesses to innovate, which has changed the face of retail for good.

eCommerce has become the shining light and the only real way to keep business moving but for those who thought it was as easy as just chucking up a website and waiting for the money to roll in has been the subject of a reality check.

eCommerce is absolutely the future of retail and it is going nowhere so truly understanding what it takes to make it work is vital.

 

A Website is Never Finished

The consumer is a fickle entity, and they shift and morph constantly. What you launch with as a shopping experience can very quickly become outdated and clunky. And more than that, for many when the rubber hits the road the potholes that appear ready to take you out are everywhere.

Understanding the challenges and preparing for them or making sure you have someone to reach out to when you hit them is fundamental to staying ahead of your competition and here at Eclipse, we do what we can to make sure we keep our clients, past, present and future, as well equipped and educated about eCommerce.

 

Challenges For Those in The World of eCommerce

This week Mollie, one of the fastest-growing payment service providers in Europe, published research unveiling the state of payments in retail today as well as the challenges and opportunities in the retail market following a turbulent year.

Some key highlights from the research when asked what the biggest challenges in online retail were, 65% of those retailers asked cited converting shoppers to purchase, 43% rated high costs for shipping or payment providers and 41% selected low margins. And for a third of online retailers (34%), cart abandonment is the biggest challenge with 30% reporting that 6-10% of carts were abandoned.

Other key findings included:

  • EU and UK merchants rely on a multitude of channels to sell: As bricks and mortar shops closed their doors, online has become far more important. Specifically, 46% of all revenue now comes from an online webshop. And on average, 37% of sales occur via third-party marketplaces such as Amazon. Finally, as much as 16% of annual revenue now comes through social media platforms like Instagram.
  • Two-thirds of retailers had revenues impacted by the pandemic: The pandemic has had both a positive and negative effect on retail sales. 23% of merchants saw sales increase last year. Conversely, 29% either saw no change or had sales decrease somewhat. And 17% saw sales decrease significantly. Of those who reported an increase, revenues went up on average by 29%. The average decrease in revenues was 27%.
  • Issues with the payments process can hurt sales and growth: 31% said that an issue with the payment service offered or the range of payment service options provided was the reason for abandoned carts. 41% cited a lack of innovation in payment systems as hindering growth.
  • ‘Buy now, pay later’ now offered by more than a fifth of retailers: With many consumers looking for more flexible ways to pay during the pandemic, 22% of retailers now offer ‘buy now, pay later’ or Apple Pay payment methods. And 20% offer Google Pay. This is set to increase with 31% looking to improve payment systems to help grow online revenue within the next 12 months.

You can get access to all the results, based on responses from 2,500 European retailers, in their report: ‘How a growth mindset leads to higher profits’.

“The retail sector has had a difficult year and this is reflected in the findings which expose a multitude of challenges and areas for development,” said Josh Guthrie, UK Country Manager at Mollie. “As the market also comes to terms with the Brexit deal, the ability to adapt and grow under pressure is paramount.”

 

Facing the Challenges Head-On

The first step is to identify if you’re facing these challenges and if you are, reach out for help. At Eclipse we’ve got eCommerce experts in all areas including conversion rate optimisation, design, user experience and the day to day running of eCommerce operations.

They know the industry inside and out and are here to help navigate you through these challenges and onto continued success.

Creating a conversion optimisation strategy that builds into a programme of continuous testing and improvements, for now, and into the future, ensures that challenges are highlighted early and fixed.

Our team of business consultants can work alongside the strategy and guide and advise you on ways to make improvements around returns, shipping and operations that can lift margins.

So, whether you’ve identified these challenges in your business or you suspect they might be lingering in the data, your next step should be to speak to us.