BLOG POST
Addressing the Key
E-commerce Challenges: Technical and Economic Perspectives in 2023
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INTRODUCTION
E-commerce has become a cornerstone for businesses worldwide. However, its rise brings about complex scenarios that need to be navigated with precision. Understanding these e-commerce challenges is crucial for your strategic planning and decision-making processes, whether you're a business owner, founder, or director.
We aim to equip you with an in-depth understanding of these challenges and offer insights on addressing them effectively.
Technical Challenges in eCommerce
As we sail into 2023, the landscape of e-commerce is riddled with the technical challenges of e-commerce.
Cybersecurity
  • Phishing Attacks: Businesses must be vigilant against emails from trusted sources, as these can compromise sensitive data upon engagement.
    There was a 61% increase in the rate of phishing attacks in the six months ending October 2022 compared to the previous year.
    Furthermore, the 2022 IC3 FBI Crime report revealed a loss of roughly $52 million from phishing scams. This highlights the need for businesses to fortify their defenses and educate their teams about the risks of phishing.
  • Credential Stuffing: Attackers use stolen account credentials to gain unauthorized access to user accounts. With advanced bots, these attacks have become faster and more relentless.
    A report by the Ponemon Institute highlights the severity of these attacks, stating businesses lose an average of $6 million per year to credential stuffing. These come in various forms, such as application downtime, lost customers, and increased IT costs.
    In late July 2022, The North Face company fell victim to a credential stuffing attack. Personal and purchase information of almost 195,000 accounts was exposed, underscoring the real-world impacts of these cyber threats.
cybersecurity
Scalability
  • Website Performance: As traffic increases, your website must load quickly and operate smoothly. Any lag can lead to a drop in customer satisfaction and sales. A KissMetrics study revealed some facts: "One-second delay in page response can result in a 7% reduction in conversions.”
  • Inventory Management: Overcoming this requires adopting scalable solutions that can handle increasing product volumes and complexities without compromising accuracy or efficiency.
    Walmart estimated missed out on $3 billion worth of sales in 2014 because its inadequate inventory control procedures led to stock outs.
    According to the 2015 “Global State of Multichannel Customer Service Report”, 62% of customers have stopped doing business with a brand whose customer service was poor.
scalability
Mobile Optimization
As we look ahead to 2023, 79% of smartphone users have already purchased online using mobile devices. Furthermore, mobile commerce will make up 42.9% of the e-commerce market by 2024.
  • Responsive UI/UX Design: Ensuring your website has a responsive design. Your website should automatically adjust its layout, images, and functionality to fit different screen sizes and orientations.
  • Seamless Checkout Process: Making sure your mobile checkout process is as streamlined and straightforward as possible is essential.
  • App Development: Besides having a mobile-friendly website, developing an app for your e-commerce business could enhance the user experience. Apps can load faster than websites, offering features like push notifications for personalized offers and updates.
mobile-optimization
Ascension 6, with years of experience, understands these complexities. From small businesses to large e-commerce giants, we provide tailored IT solutions to overcome these hurdles. Our commitment is to help businesses stay competitive, secure, and customer-centric amidst rapid e-commerce evolution.
Economic challenges of E-commerce
As we navigate through 2023, the e-commerce landscape is grappling with several key economic challenges of e-commerce:
Increased Price Transparency
Today's savvy customers are demanding transparency in pricing. Recent studies have revealed:
  • 49% of shoppers abandon their carts due to high additional costs.
  • 17% leave because they can't calculate these costs upfront.
Transparent, upfront pricing is not just a preference but a necessity for modern consumers.
Inflation Impact
With costs rising due to inflation, businesses are challenged to define a winning pricing strategy that balances increased costs and competitiveness. According to Retail Economics:
  • 84% of consumers express concern about the economic outlook and finances over the upcoming year, with inflation being their top worry.
  • 73% of consumers anticipate changing their shopping habits in 2023.
Ascension 6 offers tailored IT solutions to help your business thrive amid inflation. We focus on cost reduction by facilitating innovative outsourcing, and our dynamic pricing models adapt in real time to market conditions, ensuring your business stays competitive. Simplified, strategic, and practical - that's the Ascension 6 promise.
Conclusion
In 2023, e-commerce businesses will face key technical and economic challenges of e-commerce. Technical issues such as cybersecurity threats, scalability concerns, system integration complexities, and mobile optimization needs are rising. Simultaneously, economic hurdles like price competition and surging shipping and logistics costs add to the complexity.
Ascension 6 is equipped to help businesses overcome these technical and economic challenges of e-commerce with tailored IT solutions, fostering efficient operations and competitiveness. Emphasizing the importance of proactive and strategic planning, Ascension 6 stands ready to guide businesses through the evolving landscape of e-commerce challenges in 2023. Our tech-driven approach ensures your business remains resilient, adaptable, and profitable in this dynamic environment.
Ready to conquer the e-commerce challenges of 2023?
Keep the technical and economic challenges of e-commerce in 2023 from slowing down your business. So why wait? Contact Ascension 6 now and take the first step towards overcoming your e-commerce challenges.
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