Why is e-commerce facing problems?

Nowadays the growing potential of Russian e-commerce is brought up for discussion in Finland. Many companies from different business fields have launched their online sales practices towards the Russian market.

In spite of the promising outlook, e-commerce has not undergone the growth to the full extent. That is the reason why many firms often feel deep anxiety about this issue.

The company: ”We offer really good products for sale online, and we know that Russian customers are interested in them. Dozens of Russians visit our website. However, this does not affect sales positively.”

Is the enormous potential of e-commerce just a hype created by consultants? How can companies use the true market potential of their businesses?

The biggest challenges faced by Russia-oriented online retailers are related to the language barriers, shipping restrictions and payment methods.

The company: ”We have a Russian version of our website, and our supply chain is in order. Russian customers can order products and get a direct delivery to their home addresses. The payment by cash is also available, as it is a common practice in Russia.”

It is also important to focus on the content of the online store page in order to convert site visitors into paying customers. In e-commerce as well as in any other online service businesses, the content, the quality of service and the price remain decisive.

The online store’s content should appeal to customers and influence their buying decisions, offer a variety of options and, above all, give confidence. If the company aims to achieve trust in the business, it should make sure that the salespersons are able to answer the questions exhaustively using their own words.

Services of online stores include different product demonstrations, customer service, purchase and acquisition of the product. When customers visit any online shop, they get into the same situation as in a traditional store. A deal is not made as soon as the customer enters the store, necessary guidance and service should be provided first. If customers get lost or cannot find the desired products or even their substitutes, they get frustrated and leave the store empty-handed passing by the pay desk.

Online customers are very price-sensitive, as it is easy and quick to compare prices in the Internet. Price competitiveness has a strong influence on the success of e-commerce. A cheap price is often the reason for easy sales. That is why the market price monitoring is extremely important.

If a customer can buy the same pair pants at a lower price in a nearby supermarket (where it is also possible to try these pants on before buying) than online, there will be no reason to make purchases in the Internet.