The experts have a lot to say about ecommerce and its future. As for a layman, it is the next best thing in this modern world of business. It is found that most of the brands have limited funds. For this reason they keep very little provision for advertising and marketing.
The biggest challenge for businesses is to figure out how much to spend on different forms of advertising. Few spend more on social media ads while others invest in organic marketing.
However, it is hard to differentiate and allocate accordingly and therefore you will need to understand the changing trends. This will make all the difference in your business profit as well as in its operation.
Ecommerce as it is poses a lot of competition
It’s on the rise with each year passing by. Each year this specific field is witnessing more innovators getting engaged to this open space that provides a lot of opportunities in varied avenues.
Therefore, this is perhaps the most favored and useful platform for anyone to start a new business, ensure a better and larger following and win over customers that were loyal to a specific brand.
The top challenges
Most of the brands today face this challenge in marketing and advertising for a few specific reasons such as:
1. The cost of digital ads is ever increasing and this specific factor complicates the advertising decisions for the brands even more. In fact and according to several study reports by Adobe Digital Insights, the cost of digital advertising is supposed to be increasing at a rate that is more than five times than the rate of inflation.
2. This means that every dollar that you spend towards advertising will lose its potential value and therefore will be less effective with each passing day. Moreover, given the fact that you have the same size of audience to cater to, this situation will put you in a dilemma as to whether or not you should invest more on advertising knowing that the returns of it will either be the same or low but never higher than before.
3. Another significant factor that is affecting the advertising decision of the brands is that the influencers are charging much more but are reaching less. Apart from this worrying fact, there is also an increased level of competition among the influencers that will once again affect your advertising budget.
4. The list of challenges also includes the changes made in the social media algorithms which once more pose a significant challenge in front of the brands to reach out to their target audiences.
Furthermore, the celebrity influencers on the social media who have larger audience strength also charge exorbitant rates sometimes as high as $1 million per post making it almost impossible for small and medium sized businesses to even think of this as an effective advertising option.
All these factors will surely put a noteworthy dent in your budget
Especially when it comes to marketing and advertising. Add to that, you will not have a clear view of the return. Therefore you will be unable to measure it.
That means, your customers will not have the desired level of trust in your business and products. This is crucial for any type of business. This growing customer distrust will soon spread to the influencers and in turn they will soon be considered as inauthentic as well.
Coming under pressure in such situations, most businesses, especially the small ones lose their track and business goal and take on the roads that should have been avoided at all cost. They make wrong business decisions and even take on more and more debts just to keep their business running.
However, actually their business is slowly strangulated to death leaving them with a huge burden of debt behind. Now with no steady income, they start to fall behind their repayment schedules and look for different debt relief options at nationaldebtreliefprograms.com and even consider filing for Chapter 7 or Chapter 13 bankruptcy.
Either or any ways, such decisions will surely affect their credit score and business credibility in a negative manner. This will also limit, if not nullify, their borrowing eligibility in the future. This all depends on the type of relief options chosen.
Ecommerce to the rescue
For all these brands and businesses, ecommerce comes to the rescue. According to the Global eommerce Leadership Forum, GELF, international eCommerce has a lot of potential. It can bring together a lot of people and innovative brands, eommerce gurus, and digital experts.
The ways in which ecommerce can help are:
1. It is a useful platform that can tighten the grip of the major brands especially. This is because there is a significant change noticed between the relation between the big brands and the platforms over the years.
2. The experts also feel that the major concern is the practice of Amazon in which they engage in direct competition with all those brands that are there on its platform. However, knowledge of such practices followed by Amazon is not of much help for those brands. They don’t know the ways in which they can respond to it.
3. Apart from that, there are also a few sporadic challenges that exist between the platforms and the brands in terms of accessing the data and once again the concern over Amazon was predominant.
4. In addition to the competition and cost factor, there is another concern that ecommerce is facing now. The growing new markets and platforms are focusing more on direct expansion. They are more interested inacquiring the foreign platforms that exists and are already doing well.
5. In turn, such a growth does a significant harm. This is because it gives the platforms an opportunity to follow more aggressive methods on pricing. As the trade-off is not the cup of tea of everyone, costlier paid marketing in these platforms will mean a reduced number of organic traffic as well as its effectiveness.
Therefore, an ecommerce strategy that has a finance strategy can help all types of online businesses to maintain a perfect local-global balance for the benefit of their business.
Watch this space for regular updates in the Technology category
I’m a Business Tech Analyst. I’m very responsible when it comes to my job. I loves to share my knowledge and experience with my friends and colleagues.
Need to kill some time? Read a random article on RWR! Click here
Click here to explore all the sections on Running Wolf's Rant
Click here to read our latest reviews on Running Wolf's Rant
