ABSTRACT

The purpose of this study is to explore some of the different factors that influence how people shop online. The study seeks to answer the research question, what are the challenges facing e- commerce today? The goal is to analyse the factors affecting e-commerce and determine whether or not there is a physical influence on this growing trend.

Introduction

This study aimed to focus on e-commerce its effects on economy and the challenges it faces today.

Since the beginning of time people have been buying goods and services both physically and via an e-commerce platform. In recent times shopping via e-commerce platforms has escalated drastically especially due to the evolvement and advancements made in technology. Social media having made a very huge impact on this trend a lot of companies have used this platform to market and advertise their products and businesses since a large multitude of people having been using them to interact. This has been largely observed during the pandemic period when there was a country-wide lockdown and people could not leave their houses unless they were essential personnel and thus people had to work from home over the internet.

People of all ages and social classes interact with the internet every day and thus expanding an eligible market for a company’s goods and services. As a result e-commerce platforms have become countless, from well-known sites like Alibaba, Amazon and E-bay, to smaller sites that are nationwide such as Jumia and Kilimall. The days are gone of having to pay a visit to the supermarket to purchase groceries or go to the boutique to make shoe and cloth purchases. Now it doesn’t matter your size, age, gender, or social standing if you want to buy something. People can now create their own accounts and shop whatever they desire.

Cyber-security

Businesses need procedures and policies so that they create a strong cyber security framework for the organization. In the event of a cyber-attack, a business cannot afford to have downtime in its operations because every transaction that it makes counts towards achieving its success. Businesses especially small ones depend on that income therefore they need to keep their data safe and secure while also encouraging employees to implement policies to combat cyber- attacks. The business needs to be proactive and have a response plan in case of an attack, they should also have software that detects and reports before and when an attack is taking place. A platform that does not have adequate security to keep its user's information private and confidential attracts little or no customers. As a result, businesses should make backups of their data and update their e-commerce sites from time to time as a measure to prevent h acking and security breaches.

Identity verification of customers

When performing transactions online with customers it is hard to tell apart a serious customer and one that is not even when a user enters their details the genuineness of the data they provide is questionable. Since the website mostly asks for an address and a phone number it's very simple for a user to provide wrong information and when they do so and even make a payment on delivery order, the organization usually ends up making a great loss in terms of cost. Therefore websites need to take the necessary steps to decline these risks for example they may need software that makes an automatic call when a customer places an order so that they can prevent fake orders and send verification codes via SMS to validate customers' identity.

Product returns and refund policies

Having a good return/refund policy is important to the business, customer satisfaction here should be a priority to make your brand stand out. Whatever product is being sold should be exactly similar to what is being advertised. The organization should have a transparent, easy, and simple return policy so that the customers are more likely to trust that whatever you are selling is worth the money.

Customer loyalty

Acquiring a new customer is more costly than retaining one, therefore, building customer loyalty is very important in a business it is an indicator of firm performance. When an online store does not meet or understand the needs of its customers it may end up costing them, one customer. Since the transaction between the retailer and the buyer is carried out online building trust between them is difficult. Building that trust may take a few transactions and great customer service.

Customer experience

Customers usually expect the same experience from one store to another in terms of the website's flow and its segmentation. How the retailer has personalized their products is important while putting into consideration a shopper’s references. Since the shopping is online customers expect a wider variety and range of products and services with different prices altogether. The websites need to treat their customers well online as they would offline.

Price and shipping

Customers are often attracted to e-commerce sites that have free shipping than those that you have to pay a shipping fee for. The goal for the organization should be to keep shipping fee costs very low and to offer free shipping discounts when a customer purchases a certain amount of many goods. Prices of products on the site should also be fair and even relatively cheaper than the competition to attract more customers while still maintaining quality.

Customer service

Great customer service is key so that customer satisfaction is maintained. Constant communication with customers is important so that they are kept informed of what is happening. For instance, when there is a delay in shipment and a customer is not informed they most likely will get frustrated and will never shop at your site again. Also if there was damage to their product during shipment they should be informed earlier so that you can start negotiating on how to rectify and deal with the situation.