The rapid development of the internet makes the information and knowledge that comprehensively promote electronic commerce. Although traditional sales channels such as Google Shopping, eBay, and Amazon have a preexisting customer base, the platform requires the business to control customer service and compete on margin. On the contrary, E-commerce allows customers to purchase goods and services through the transmission of data, primarily the internet (Wild & Wild, 2016). Therefore, the team of ASC will opt for E-commerce rather than a traditional sales channel following the digital revolution.
Challenges of E-commerce
Privacy
Customers outside the United States do not prefer embrace E-commerce due to rapid privacy issues. ASC team should know that purchasing products or services online requires one to disclose their credentials such as phone number, address, and credit card account information. Some customers hold strong believe that purchasing product through E-commerce does not compromise their personal information (Ramachandran, 2012). Others do not purchase due to the fear of their personal information being accessed by a third-party opting to purchase using traditional sales channels.
Unfamiliarity
A significant number of customers outside the United States opt to do shopping at traditional sales channels. Often, customers have a resistance tendency to change and will not embrace electronic commerce due to a lack of prerequisite information on how they purchase products they cannot physically examine (Wild & Wild, 2016). As a result, when the product does not meet their expectations by being either defective or the wrong size, it will take time to return to the seller and wait for the replacement.
Issues to Consider when Launching a Product for E-commerce
Cybersecurity
When ASC opts for E-commerce, there is a need to evaluate data vulnerability practices. According to Ramachandran (2012), businesses should focus on e-commerce space, procedures, and policies to formulate a solid cybersecurity framework. Therefore, ASC needs a proper cybersecurity framework for the data safety of its customers. In addition, an incident response plan will help reduce downtime in case of a ransomware attack and continue to provide services to customers using other means.
Order Fulfillment
Often, not everything will fall back according to ASC plans. For example, Post (2021) argues that E-commerce businesses get overwhelmed with orders than they have planned to handle on their own. When such an issue arises, ASC should ensure order fulfillment by outsourcing to the third party whenever possible to avoid delay. However, if there is an efficient mechanism, customers will shift to the competitors who ensure on-time delivery.
Customer Experience
The customer experience remains paramount when ASC launches an e-commerce initiative. The reason is that customers will expect better treatment, similar to when purchasing a product at a storefront (Post, 2021). However, ASC could experience some struggles when meeting new demand due to precise handling of pricing, customer segmentation, and analytics. Thus, for a successful experience, ASC has to maintain e-commerce space with clarity of the product offered, prices, and refund policy.
Conclusion
In summary, the ASC team should be familiar with the challenges of e-commerce, such as privacy issues and unfamiliarity, especially for customers outside the United States. Also, the team has to evaluate the issues ASC will encounter before launching that include cybersecurity, order fulfillment, and customer experiences. Therefore, apart from keeping the sales low, e-commerce will help reach many customers after having confidence with the product and better shopping experiences.
References
Post, J. (2021). Top E-Commerce Challenges Facing SMBs. Business News Daily. Retrieved January 27, 2022, from https://www.businessnewsdaily.com/6028-small-ecommerce-challenges.html
Ramachandran, R. (2012). e-Commerce -Its Challenges and its Governance. Sansmaran Research Journal;, 2(2), 7-9. Retrieved from https://www.proquest.com/scholarly-journals/e-commerce-challenges-governance/docview/1960233215/se-2?accountid=151051
Wild, J. J., & Wild, K. L. (2016). International Business:The Challenges of Globalization (Eighth Edition ed.). Pearson Education. Inc.
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