Key Success Factors of E-commerce

E-Commerce is an activity where people selling goods through the internet and the transaction payment is paid through e-banking or ATM  transfer. E-Commerce become a major boom in the 21st century because of the it’s efficency, many buyers purchases goods through E-Commerce.  

To Ensure the quality of E-Commerce, There are several factor to make the E-Commerce suceed in  the society. These Factors includes :  

• Customer Service 

Customer Service is essential in the making of E-Commerce. Why ? A Successful E-Commerce must fill every customer needs and demands in order fill their own satisfications. An Excellent Customer service wil increase the trust of the customers in the E-Commerce world. Customer service also give awareness about some issues that E-Commerce didn’t aware of which can be fixed sometime in the future 

• Multichannel Marketing 

If an E-Commerce depending on one channel. An commerce can receive a Negative Change, Because some people may not interested in a certain number of promotional materials. It will also giving wider opportunities to expand the business itself. Multichannel marketing can be spread through E-Mail or Social Marketing in order to attract new customers through the internet 

• Conversion Rate  

Some customers visiting an e-commerce only to browse without purchasing. This factor is extremely crucial in the E-Commerce Business. On average 2-3% of visitors ended up buying a product by placing an order. 

There are several factors of the low conservation rate :  

1. The difficulty of searching the product which will be bought 
2. Lack of Information of the product 
3. High Shipping costs 
4. Entering too much Personal information before making a purchase 

• Customer Retention 

Customer retention are the activities and actions to decrease customer abandonment. Which may decline the success of an E-Commerce. This factor measures the ability of an E-Commerce to retain customers in a long-term and to generate revenue from the existing customers.  

Customer Retention can be increased with many ways, these ways include :  

1. Special Rewards 
2. High Discount
3. Rewards through email 
4. Special Offer 

• Acquisition Cost 

Acquisition Costs are the price in acquiring a customer. These fctor can be clculated by adding up all of the marketing expenses and averaging that number on a per new customer basis. This can be also calculated throough the cost of customer and the ROI for each channel which will optimize the marketing based on the E-Commerce’s business objectives 

References 

• Waseem. (2017). Successful key factors for eCommerce businesses. wpruby, 1.