5 Traditional Retail Challenges To Go Ecommerce and How To Solve Them

Understanding the barriers of going online for traditional retail and the solutions

The retail landscape is undergoing a seismic shift. As digital transformation reshapes industries worldwide, traditional retailers urgently need to adapt or risk becoming obsolete. 

The rise of e-commerce and evolving consumer expectations demand that retail outlets embrace new technologies and strategies. 

With global e-commerce sales projected to hit $6.3 trillion by 2024, staying competitive means understanding and overcoming the unique challenges of the traditional retail sector. 

This article delves into the primary challenges faced by traditional retailers and offers actionable solutions to navigate these obstacles effectively.

1. Technological Challenges As The Main Roadblocks for Traditional Retail

Performance-Related Issues

Traditional retailers that establish online stores often contend with slow website loading times, complex navigation, and problematic checkout and payment processes. 

Kirkpatrick (2016), stated that 53% of mobile site visits are abandoned if a page takes over three seconds to load issues contribute to high cart abandonment rates and lost sales opportunities

Addressing these performance issues is crucial for enhancing user experience and reducing customer frustration. 

Lack of Website Optimization For Traditional Retailers

We know we live in an era where mobile traffic drives over half of global web traffic. Unoptimized websites for various devices can lead to significant user dissatisfaction. 

A non-responsive design results in poor user experiences, deterring potential customers from completing purchases and exploring your offerings or promotion.

Ensure Uninterrupted Service with Broadband Access & Wireless Coverage

Solid broadband and wireless coverage are vital in keeping your service consistent, especially for mobile users who expect smooth connectivity. 

If your service drops, it can frustrate customers and hurt your sales.

Solutions You Can Apply: 

  • Simplify Navigation and Checkout Processes: Make it easier for customers by streamlining your website’s navigation and checkout. This helps reduce hassle and lets shoppers find what they want and check out quickly.
  • Offer Secure and Diverse Payment Options: Improve the checkout experience by offering a range of secure payment methods. This caters to different customer preferences and helps boost sales.
  • Optimize Website for Multi-Device Usability: Make sure your site works great on all devices, from desktops to smartphones. Use responsive design and speed optimization to keep things running smoothly.
  • Enhance Connectivity and Accessibility: Invest in solid broadband and reliable wireless coverage to keep your service consistent and avoid disruptions. This ensures a seamless experience for users.
  • Use Reliable Hosting with High Uptime and Scalability: Pick a hosting provider that guarantees high uptime and can handle increased traffic. This keeps your site up and running, even during busy times.

2. Operational Roadblock As The Hidden Pitfalls of Holding Back Traditional Retail

Streamlining Operations and Logistics

Outdated systems can hold back traditional retailers, especially when jumping online. If your operations and logistics aren’t up to speed, keeping up with what customers expect is tough. 

You’ll need to upgrade your processes to handle the digital shift and keep things running smoothly.

Payment Systems

With more people shopping online, offering various payment methods to meet everyone’s needs is essential. Adding many secure payment options isn’t just about keeping things convenient—it’s critical to building trust and ensuring your customers are happy.

Secure Online Transactions & Fraud Prevention

Building trust through robust cybersecurity measures is essential for protecting customer data and preventing fraud. As online transactions increase, so does the need for advanced security protocols.

Inventory Management & Stock Visibility

Inventory can be tricky when managing the inventory, both online and offline. Retailers need intelligent systems to track stock and avoid mismatches between what's available in-store and online.

Fulfillment Complexity

Making your fulfilment processes simpler is vital in getting orders on time and keeping your customers happy. Good logistics and intelligent warehousing can boost the whole shopping experience.

Channel Conflicts

To avoid mix-ups and keep things running smoothly, it’s important to sync up your online and physical store strategies. Making sure both sides work together creates a seamless experience for your customers.

Solutions You Can Implement: 

  • Develop Efficient Delivery Networks and Warehousing: Set up intelligent logistics and warehousing to streamline deliveries and meet customer expectations.
  • Implement Diverse and Secure Payment Systems: Offer various secure payment options to meet different customer needs and build trust.
  • Enhance Cybersecurity to Prevent Fraud: Invest in solid cybersecurity to protect online transactions and customer data from threats.
  • Integrate Stock Management for Balanced Stock Visibility: Use inventory management systems that work across all your sales channels to keep stock levels accurate.
  • Align Online and Physical Store Strategies: Don’t forget to create strategies that blend your online and offline operations smoothly to avoid conflicts and offer a unified experience.


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3. The Underrated Barrier Slowing Traditional Retail: Customer Experience Struggles

Digital Literacy & Technology Adoption

It’s super important to help customers get comfortable with new tech and make the switch to online shopping smooth. Many people might not be familiar with digital tools, affecting their shopping and overall experience.

Online Shopping Experience 

Creating an engaging and user-friendly online shopping interface is essential for attracting and retaining customers. An intuitive and enjoyable shopping experience can drive repeat business and boost customer loyalty.

Trust and Privacy

To build trust with online shoppers, it’s important to focus on data security and personal information protection. Just like routing orders to the nearest fulfilment center, protecting customer data effectively ensures that their privacy is safeguarded, and their trust is earned.

Solutions:

  • User-Friendly Design: Ensure that your website or app is intuitive and easy to use, even for those with limited tech experience. A simple, clean interface can reduce frustration and improve user adoption.
  • Simplified Navigation: Streamline the shopping process by categorizing products clearly, offering search filters, and ensuring the checkout process is quick and easy.
  • Personalization: Use customer data to personalize the shopping experience. Show recommendations based on past purchases or browsing history to make the experience more engaging.
  • Proactive Communication: In the event of a security issue, communicate promptly and clearly with affected customers, explaining the steps you're taking to protect their information.

4. Cultural and Social Challenges as One of The Major Obstacles

Shopping Girls

Consumer Behaviour That Prefers For In-person Shopping 

In this digitalized era, many customers still prefer the in-store experience of physically interacting with products. 

Replicating the in-store experience online can be tricky since shoppers can't physically interact with products online, and it’s hard to match the in-store experience, which is why many still prefer shopping in person. 

Social Interaction

Shopping is often a social activity, and replacing this aspect online can be difficult. 

According to Raydiant (2022), the largest segment of respondents (27.6%) cited the allure of in-store experiences as their primary reason for shopping in stores. This highlights the importance of social interaction in the shopping experience.

Digital Divide

Reaching a more extensive audience requires ensuring all demographic groups have equal access to technology and the Internet. To make internet buying more inclusive, this involves tackling the digital gap.

Solutions you can apply:  

  • Bridge Sensory Gap by Enhancing Online Product Experiences: Offer detailed product visuals and interactive features to simulate the in-store experience online. For example, you can implement an AI feature for this. 
  • Incorporate Social Shopping Features: Implement social features like live chats and virtual shopping events to enhance the online shopping experience and replicate in-store social interactions.
  • Promote Digital Inclusion and Accessibility: Ensure your website is accessible to all customers and provide options like click-and-collect to support those with limited online access. 

Accessible Online Conversations receives an increase of 21% in digital inclusion and closes the digital divide so everyone can join in, helping bridge the gap between in-store and online experiences.

5. Others Also Viewed Regulatory and Compliance As The Challenges

E-commerce Regulations & Data Localization

Navigating e-commerce regulations and data localization can be like trying to keep all the balls in the air while juggling—one misstep and things could come crashing down. 

When operating online, staying compliant with local laws and data requirements isn't just a good idea; avoiding hefty fines and legal headaches is essential.

Taxation & Industry-Specific Compliance

If you thought that was challenging, wait until you factor in the ever-changing rules around taxation and industry-specific regulations. It’s like trying to hit a moving target! 

But staying on top of these changes is critical to keeping your business legally sound and avoiding nasty surprises come tax season.

Solutions you can apply: 

  • Stay Compliant with Legal Requirements and Local Data Regulations: Ensure your business adheres to all relevant legal and data protection requirements to avoid legal issues.
  • Adapt to Sector-Specific Regulations and Taxation Laws: Keep up-to-date with industry regulations and adjust your practices to remain compliant.

Future Trends & How Retailers Can Catch Up

Future trends

As inflation and changing consumer behaviours impact shopping habits, retailers must stay ahead by embracing new technologies and strategies. 

AI should complement, not replace, authentic user-generated content, and social commerce must be integrated into marketing strategies. Ethical content practices and leveraging the creator economy are crucial for modern retail success.

Retailers like Carrefour Mongolia are already setting the standard by standardizing procedures, localizing systems, and enhancing efficiency to improve the customer experience across all stores.

Handling These Challenges by Connecting Physical Stores with Social Media and Odoo ERP

You probably have this question in your mind after reading this article.

“Is there any place for tailoring these problems? I want to level up my retail store now.”

You’ve come to the right place, mate!

To save your “old” shop from becoming obsolete, consider integrating your physical stores with Odoo ERP. Leveraging social media isn’t just about keeping up with trends—it’s about creating a retail experience that makes customers feel like they’re getting the best of both worlds.

Imagine having a system that seamlessly blends in-store and online interactions, tailoring experiences to each customer and building a cross-channel ecosystem ready to meet shoppers' ever-changing needs.

It’s like giving your business the upgrade it needs to survive and thrive in today’s market.

Conclusion

The retail landscape is changing fast, but traditional retailers aren’t out of the game yet.

They can leap into the digital age by focusing on technology, operations, customer experience, cultural shifts, and regulatory compliance.

The key to thriving in this new retail environment is embracing innovation and putting the customer first. 

Those who are quick to adapt will not just survive but will have the upper hand in the evolving market. Traditional businesses have a golden opportunity to use AI, AR, and advanced analytics to seamlessly create shopping experiences that blend the physical and digital worlds.

As the retail revolution continues, those who innovate and integrate these tools will lead the charge, fully equipped to capitalize on the new opportunities in the digital era.

Are you ready to transform your traditional store into ecommerce? 

Contact us now for a consultation and customised demonstration of Odoo ERP.  This will be the first step towards revolutionising your shop and increasing revenue!  

Expert: Binh Tran from Portcities Vietnam

5 Traditional Retail Challenges To Go Ecommerce and How To Solve Them
Muhammad Rizky September 5, 2024
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